Auditor General's report on Adam Smith College 2011/12 accounts

The Auditor General for Scotland, Caroline Gardner, has issued a report to the Scottish Parliament on matters raised in the audit of the 2011/12 accounts for Adam Smith College.

The report draws Parliament's attention to significant failures in corporate governance and financial stewardship at the college and the late laying of the audited accounts in the Parliament. In particular, the college has had to repay £5.5 million of European Union (EU) grants, and has provided for up to a further £1.2 million in potential repayments of other grants.

This follows allegations of financial misconduct at the college and an investigation into its administration of EU grant funding. The investigation found the college had submitted claims to grant funding bodies which were inaccurate, unsupported by evidence and overstated since at least 2007. Significant irregularities in claims for staff and other costs have also been found.