Copyright scotsman
The Scottish Funding Council (SFC) spent £602,000 on a damning investigation into Dundee University's financial crisis. Documents show costs rose substantially as the complexity of the situation became apparent, with a number of senior staff members interviewed. The principal and two senior members of the university’s governing body quit in the wake of the devastating report, which was published in June. It was ordered after Dundee announced hundreds of potential job losses as it struggled to deal with a £35 million deficit. The probe, led by Professor Pamela Gillies and conducted by international professional services firm BDO, found the failure of the university’s financial governance system was “self-inflicted and experienced multiple times and at multiple levels”. Tender documents show the SFC awarded the investigation contract to BDO without the usual competition process due to "extreme” urgency. “This was brought about by a quickly developing and changing situation at the higher education institution,” the notice says. “Further time pressure was caused due [to] an unsuccessful competition for these services in which zero tenders were returned.” It adds: “SFC was therefore in a position where they need[ed] to appoint a provider urgently. The sensitive nature of this requirement meant it was not possible to delay further to carry out another competition.” The total value of the contract, excluding VAT, is listed as £423,000 in the documents. However, the SFC confirmed the final cost, including VAT, was £602,000. A spokesman said: “Significant additional work was required due to the complexity of the situation revealed when the investigation got underway and the number of senior staff interviewed. “The inquiry was delivered within a compressed time scale, something that was acknowledged in the subsequent ‘investigation into financial oversight and decision making’ report. “The findings of that report are crucial as they are intended to provide lessons and advice for all Scotland’s universities, as well as being the basis for the recovery of the University of Dundee.” Scottish Conservative education spokesman Miles Briggs said: “It’s staggering that the Scottish Funding Council was forced to spend over £600,000 just to untangle the financial chaos at Dundee University. That figure underlines the sheer scale of the mismanagement that went unchecked for far too long. “While it’s essential that lessons are learned, SNP ministers must explain how things were allowed to reach this point and what safeguards are being put in place to prevent similar failures elsewhere. “Scotland’s universities are under enormous pressure due to the SNP’s funding model, yet there is still no sign of the leadership or accountability required to restore confidence in the sector.” Scottish Labour finance spokesman Michael Marra said: “The disaster of incompetent management at the university has caused huge pain and great expense, most particularly for the staff and for the taxpayers who are now bailing out the city’s most important institution.” In its formal response to the report in August, Dundee University said the probe had been a "chastening experience and triggered a time for deep self-reflection". Professor Nigel Seaton, interim principal and vice chancellor, said at the time: “It was evident from the Gillies report that there had been clear failings in financial monitoring, leadership, and governance at the university. “The entire UK higher education sector has been forced to deal with significant external factors in recent years but our university’s response to these, and its management of finances, fell well short of the standards that everyone should have expected.” Dundee received a £22 million bailout from the SFC in February, and will benefit from an additional £40 million over the next two academic years. When the report was published in June, SNP Education Secretary Jenny Gilruth said it raised serious questions. She said: "Whilst the university is an autonomous institution which is ultimately responsible for decision-making around its day to day operations, the Scottish Government will do everything possible to secure a positive future for Dundee."
