This overview report highlights the severe economic difficulties being experienced by many of Scotland's further education colleges and warns that some colleges need to improve their financial management if student services are not to suffer.
For the financial period covered by the report (1999/2000), 34 FE colleges reported deficits totalling around £18 million. 31 of these 34 colleges are incorporated and covered by this report. Three other non-incorporated colleges also had deficits. Nine colleges had operating deficits in excess of £0.5 million and more than 5% of total income. Five of these remained going concerns only on the understanding that external financial support would continue. Twelve colleges were asked to prepare financial recovery plans.