A significant financial misstep has come to light at UHI Perth, revealing that the college’s finance team overlooked a staggering £700,000 in catering expenses when preparing its budget for the 2024-25 academic year. This substantial oversight accounts for the majority of what has been identified as a £1 million total in ‘errors’ within the institution’s recent financial projections, raising serious questions about fiscal management at our community’s vital educational hub.
This revelation is particularly concerning given that it follows a year, 2023-24, during which UHI Perth failed entirely to establish a formal budget. The accumulation of such significant financial inaccuracies paints a troubling picture for the future, with projections indicating a potential shortfall of £9.6 million by 2027 if drastic savings measures are not successfully implemented. The stability of educational provisions for students across Perthshire and beyond now hangs in the balance. The Anatomy of a Budgetary Failure
While an earlier report by Audit Scotland hinted at a £1 million discrepancy in this year’s forecasts due to ‘errors in cashflow calculations,’ specific details remained elusive. However, information obtained from a presentation delivered to staff on March 19 this year unequivocally pins down the primary cause of the budgetary imbalance.
It has been confirmed that the college’s estates budget was severely underestimated, largely because a crucial catering contract worth £700,000 was completely omitted from the calculations. This colossal error was then further compounded by an additional projected catering loss of £100,000, pushing the total miscalculation to a critical level.
The immediate consequence of this significant accounting blunder was UHI Perth’s urgent appeal to the Scottish Funding Council in July, requesting an additional £1 million in financial assistance. This plea arrived despite the college already having received £1.5 million from the funding body earlier in the year. The outcome of this crucial request now hinges entirely on the successful formulation and public release of UHI Perth’s financial recovery plan. Internal Blame and Leadership Shifts
Internal documents shed light on the challenges that contributed to this deep-seated financial turmoil. A draft version of Audit Scotland’s report, seen by us, indicates that the college attributed these errors to a confluence of factors, including ‘insufficient resources in the finance team, the departure of experienced staff and new staff that were learning about the finances of the college.’
Sources close to the situation suggest that the finance team was severely hampered by the absence of a foundational budget from the previous academic year (2023-24), leaving them without a crucial baseline to guide their current financial planning. The immense pressure and lack of clear starting points likely contributed to the oversight. During a subsequent board meeting, apologies were reportedly ‘extended’ regarding the catering oversight, acknowledging the gravity of the miscalculation.
Furthermore, internal communications highlight a degree of internal friction regarding accountability. Gavin Whigham, who served as UHI Perth’s head of estates at the time, expressed significant concern about his department being unfairly implicated. In a letter addressed to then-principal Dr Margaret Cook, he emphatically stated: ‘Sorry I know there are bigger issues going on, however can we have a conversation about the wording within the presentation. The way it’s written its largely targeting Estates as having made the budgeting errors I can assure everyone that our budgets were accurate, and I hope this is recognised and reflected in the meeting.’
These financial difficulties have coincided with considerable upheaval in UHI Perth’s leadership. The former finance chief, Gavin Stevenson, departed earlier this year, subsequently characterising the institution’s state as ‘chaos’ and issuing a stark warning that the college faced potential closure without extensive cuts. Similarly, former principal Dr Margaret Cook also left her post in May amidst the escalating crisis. It was recently brought to light that proposals to discontinue all degree courses were, in fact, a ‘bargaining tool’ devised by Dr Cook during intense discussions surrounding the college’s funding.
In response to these latest revelations, a spokesperson for UHI Perth issued a statement confirming: ‘This was an error within the 2024-25 budget and has since been rectified. The error was communicated to auditors and other regulatory bodies at the earliest opportunity to ensure transparency.’
As UHI Perth navigates these turbulent financial waters, the focus remains firmly on the upcoming financial recovery plan and the impact these critical decisions will have on the college’s future and its role in the Perth and Kinross community.
This revelation is particularly concerning given that it follows a year, 2023-24, during which UHI Perth failed entirely to establish a formal budget. The accumulation of such significant financial inaccuracies paints a troubling picture for the future, with projections indicating a potential shortfall of £9.6 million by 2027 if drastic savings measures are not successfully implemented. The stability of educational provisions for students across Perthshire and beyond now hangs in the balance. The Anatomy of a Budgetary Failure
While an earlier report by Audit Scotland hinted at a £1 million discrepancy in this year’s forecasts due to ‘errors in cashflow calculations,’ specific details remained elusive. However, information obtained from a presentation delivered to staff on March 19 this year unequivocally pins down the primary cause of the budgetary imbalance.
It has been confirmed that the college’s estates budget was severely underestimated, largely because a crucial catering contract worth £700,000 was completely omitted from the calculations. This colossal error was then further compounded by an additional projected catering loss of £100,000, pushing the total miscalculation to a critical level.
The immediate consequence of this significant accounting blunder was UHI Perth’s urgent appeal to the Scottish Funding Council in July, requesting an additional £1 million in financial assistance. This plea arrived despite the college already having received £1.5 million from the funding body earlier in the year. The outcome of this crucial request now hinges entirely on the successful formulation and public release of UHI Perth’s financial recovery plan. Internal Blame and Leadership Shifts
Internal documents shed light on the challenges that contributed to this deep-seated financial turmoil. A draft version of Audit Scotland’s report, seen by us, indicates that the college attributed these errors to a confluence of factors, including ‘insufficient resources in the finance team, the departure of experienced staff and new staff that were learning about the finances of the college.’
Sources close to the situation suggest that the finance team was severely hampered by the absence of a foundational budget from the previous academic year (2023-24), leaving them without a crucial baseline to guide their current financial planning. The immense pressure and lack of clear starting points likely contributed to the oversight. During a subsequent board meeting, apologies were reportedly ‘extended’ regarding the catering oversight, acknowledging the gravity of the miscalculation.
Furthermore, internal communications highlight a degree of internal friction regarding accountability. Gavin Whigham, who served as UHI Perth’s head of estates at the time, expressed significant concern about his department being unfairly implicated. In a letter addressed to then-principal Dr Margaret Cook, he emphatically stated: ‘Sorry I know there are bigger issues going on, however can we have a conversation about the wording within the presentation. The way it’s written its largely targeting Estates as having made the budgeting errors I can assure everyone that our budgets were accurate, and I hope this is recognised and reflected in the meeting.’
These financial difficulties have coincided with considerable upheaval in UHI Perth’s leadership. The former finance chief, Gavin Stevenson, departed earlier this year, subsequently characterising the institution’s state as ‘chaos’ and issuing a stark warning that the college faced potential closure without extensive cuts. Similarly, former principal Dr Margaret Cook also left her post in May amidst the escalating crisis. It was recently brought to light that proposals to discontinue all degree courses were, in fact, a ‘bargaining tool’ devised by Dr Cook during intense discussions surrounding the college’s funding.
In response to these latest revelations, a spokesperson for UHI Perth issued a statement confirming: ‘This was an error within the 2024-25 budget and has since been rectified. The error was communicated to auditors and other regulatory bodies at the earliest opportunity to ensure transparency.’
As UHI Perth navigates these turbulent financial waters, the focus remains firmly on the upcoming financial recovery plan and the impact these critical decisions will have on the college’s future and its role in the Perth and Kinross community.