The financial stability of UHI Perth has come under intense public and parliamentary examination, following a recent and incisive probe into the institution’s fiscal health. Alarming revelations, including a complete absence of a formal budget for an entire year and the discovery of significant monetary ‘errors’ totalling £1 million, have cast a long shadow over the college’s management. These findings were presented during a robust session at Holyrood, where Members of the Scottish Parliament delved into the root causes of the widespread issues plaguing the college. For the residents and students of Perth and Kinross, these revelations spark crucial questions about the future of a cornerstone educational provider.
The current principal is reportedly striving to navigate these turbulent waters and restore confidence among both learners and faculty. However, the path to recovery appears fraught with challenges as the full extent of past missteps continues to emerge. This detailed analysis aims to distill the core concerns that have arisen from the parliamentary hearing, offering clarity on the financial quagmire UHI Perth finds itself in. 1. The Unprecedented Absence of a Yearly Budget
One of the most startling disclosures from the Auditor General for Scotland, Stephen Boyle, was UHI Perth’s failure to establish a comprehensive annual budget for the 2023-24 academic year. This oversight, described as ‘unprecedented’ in his professional experience, raises profound questions about the institution’s basic financial controls and strategic foresight. Mr. Boyle emphasized that such an omission left no clear framework for identifying and addressing any emerging financial challenges, essentially allowing problems to fester unchecked. The lack of a budget meant there was no defined roadmap for resource allocation, expenditure monitoring, or revenue generation, which are fundamental to any sound financial operation. What’s more concerning, according to the Auditor General, was the apparent lack of documentation regarding the decision-making process behind this significant omission, leaving investigators without a clear understanding of when or why this critical lapse occurred. For a publicly funded institution serving the educational needs of Perth and Kinross, this foundational failure undermines trust and accountability. 2. Uncovering £1 Million in Budgetary ‘Errors’
UHI Perth’s financial woes extend beyond a missing budget. The college reported a deficit of £2 million in the 2023-24 period, a figure that has since escalated to a projected shortfall of £9.6 million. Further scrutiny has exposed glaring discrepancies within the 2024-25 budget, including a staggering £1 million attributed to ‘errors’ in calculations and inaccuracies in cash flow projections. These substantial miscalculations indicate deeper systemic issues within the financial planning and reporting mechanisms of the institution. Consequently, UHI Perth has been compelled to seek additional financial assistance from the Scottish Funding Council. However, with ongoing audits into the 2024-25 figures, the exact nature and full impact of these errors remain opaque, leaving both auditors and MSPs with incomplete answers. For students and their families in Perth, the uncertainty surrounding these figures creates anxiety about the stability and long-term viability of their local college. 3. The Disruptive Impact of High Staff Turnover
The college has also been grappling with a high rate of staff departures, particularly among its senior leadership. The recent resignation of former principal Margaret Cook earlier this year, followed by the appointment of Catherine Etri on an interim basis, highlights a period of significant instability at the top. Alarmingly, five senior managers have reportedly been made redundant, and the role of finance chief has seen a rapid succession of individuals, with the forthcoming appointee set to be the fifth in less than a decade. Such a high level of churn within critical leadership and finance departments inevitably leads to a loss of institutional knowledge, a breakdown in continuity, and a detrimental impact on strategic planning and operational efficiency. Experts from the auditing firm Deloitte highlighted that this constant flux in personnel makes it incredibly difficult to maintain robust financial governance and retain the ‘corporate memory’ essential for stable management. The departure of experienced professionals leaves a void that impacts everything from daily operations to long-term vision, affecting the quality of education and support provided to the Perth community. 4. Communication Breakdown with the National UHI Body
UHI Perth functions as a constituent college within the broader University of the Highlands and Islands (UHI) network. During the Holyrood inquiry, it was revealed that the central UHI body had raised concerns with Perth following the identification of budgetary errors. This intervention prompts a crucial question: how frequently does the national body find it necessary to flag such serious financial issues with its member colleges, and has UHI Perth been a recurring concern? When pressed on this matter, auditors admitted they lacked historical data to provide a comprehensive answer, indicating a potential gap in the oversight narrative. This lack of clarity on past interactions with the national body further complicates the picture, leaving questions about the long-term effectiveness of central oversight and the consistency of financial performance across the UHI network. For a local college like UHI Perth, effective communication and early intervention from the overarching university structure are vital for preventing such crises from escalating. 5. Addressing Accountability for Financial Failures
The extensive financial issues at UHI Perth inevitably lead to the critical question of accountability. While many key figures responsible for the college’s previous financial management have since departed, the question of whether appropriate consequences have been faced remains pertinent. SNP MSP Colin Beattie voiced a common public concern, highlighting that senior executives in public sector organizations can often move on to comparable roles despite significant institutional failures. Auditor General Stephen Boyle acknowledged that the parliamentary probe itself serves as a mechanism for accountability, emphasizing that these matters are treated with utmost seriousness by public bodies and their boards. However, the exact nature of any further accountability measures, beyond public scrutiny, would fall to the public audit committee to determine. For the community in Perth and Kinross, who rely on UHI Perth for educational and economic vitality, a clear understanding of responsibility for these failures is essential for rebuilding trust and ensuring future stability. A spokesperson for UHI Perth affirmed their commitment to addressing these findings, stating: “We acknowledge the auditor general’s findings, including the absence of a budget for 2023–24, and take these concerns very seriously.”
The current principal is reportedly striving to navigate these turbulent waters and restore confidence among both learners and faculty. However, the path to recovery appears fraught with challenges as the full extent of past missteps continues to emerge. This detailed analysis aims to distill the core concerns that have arisen from the parliamentary hearing, offering clarity on the financial quagmire UHI Perth finds itself in. 1. The Unprecedented Absence of a Yearly Budget
One of the most startling disclosures from the Auditor General for Scotland, Stephen Boyle, was UHI Perth’s failure to establish a comprehensive annual budget for the 2023-24 academic year. This oversight, described as ‘unprecedented’ in his professional experience, raises profound questions about the institution’s basic financial controls and strategic foresight. Mr. Boyle emphasized that such an omission left no clear framework for identifying and addressing any emerging financial challenges, essentially allowing problems to fester unchecked. The lack of a budget meant there was no defined roadmap for resource allocation, expenditure monitoring, or revenue generation, which are fundamental to any sound financial operation. What’s more concerning, according to the Auditor General, was the apparent lack of documentation regarding the decision-making process behind this significant omission, leaving investigators without a clear understanding of when or why this critical lapse occurred. For a publicly funded institution serving the educational needs of Perth and Kinross, this foundational failure undermines trust and accountability. 2. Uncovering £1 Million in Budgetary ‘Errors’
UHI Perth’s financial woes extend beyond a missing budget. The college reported a deficit of £2 million in the 2023-24 period, a figure that has since escalated to a projected shortfall of £9.6 million. Further scrutiny has exposed glaring discrepancies within the 2024-25 budget, including a staggering £1 million attributed to ‘errors’ in calculations and inaccuracies in cash flow projections. These substantial miscalculations indicate deeper systemic issues within the financial planning and reporting mechanisms of the institution. Consequently, UHI Perth has been compelled to seek additional financial assistance from the Scottish Funding Council. However, with ongoing audits into the 2024-25 figures, the exact nature and full impact of these errors remain opaque, leaving both auditors and MSPs with incomplete answers. For students and their families in Perth, the uncertainty surrounding these figures creates anxiety about the stability and long-term viability of their local college. 3. The Disruptive Impact of High Staff Turnover
The college has also been grappling with a high rate of staff departures, particularly among its senior leadership. The recent resignation of former principal Margaret Cook earlier this year, followed by the appointment of Catherine Etri on an interim basis, highlights a period of significant instability at the top. Alarmingly, five senior managers have reportedly been made redundant, and the role of finance chief has seen a rapid succession of individuals, with the forthcoming appointee set to be the fifth in less than a decade. Such a high level of churn within critical leadership and finance departments inevitably leads to a loss of institutional knowledge, a breakdown in continuity, and a detrimental impact on strategic planning and operational efficiency. Experts from the auditing firm Deloitte highlighted that this constant flux in personnel makes it incredibly difficult to maintain robust financial governance and retain the ‘corporate memory’ essential for stable management. The departure of experienced professionals leaves a void that impacts everything from daily operations to long-term vision, affecting the quality of education and support provided to the Perth community. 4. Communication Breakdown with the National UHI Body
UHI Perth functions as a constituent college within the broader University of the Highlands and Islands (UHI) network. During the Holyrood inquiry, it was revealed that the central UHI body had raised concerns with Perth following the identification of budgetary errors. This intervention prompts a crucial question: how frequently does the national body find it necessary to flag such serious financial issues with its member colleges, and has UHI Perth been a recurring concern? When pressed on this matter, auditors admitted they lacked historical data to provide a comprehensive answer, indicating a potential gap in the oversight narrative. This lack of clarity on past interactions with the national body further complicates the picture, leaving questions about the long-term effectiveness of central oversight and the consistency of financial performance across the UHI network. For a local college like UHI Perth, effective communication and early intervention from the overarching university structure are vital for preventing such crises from escalating. 5. Addressing Accountability for Financial Failures
The extensive financial issues at UHI Perth inevitably lead to the critical question of accountability. While many key figures responsible for the college’s previous financial management have since departed, the question of whether appropriate consequences have been faced remains pertinent. SNP MSP Colin Beattie voiced a common public concern, highlighting that senior executives in public sector organizations can often move on to comparable roles despite significant institutional failures. Auditor General Stephen Boyle acknowledged that the parliamentary probe itself serves as a mechanism for accountability, emphasizing that these matters are treated with utmost seriousness by public bodies and their boards. However, the exact nature of any further accountability measures, beyond public scrutiny, would fall to the public audit committee to determine. For the community in Perth and Kinross, who rely on UHI Perth for educational and economic vitality, a clear understanding of responsibility for these failures is essential for rebuilding trust and ensuring future stability. A spokesperson for UHI Perth affirmed their commitment to addressing these findings, stating: “We acknowledge the auditor general’s findings, including the absence of a budget for 2023–24, and take these concerns very seriously.”