Failures over college climate project

Forth Valley College has improved its project management arrangements after a series of failings related to a net-zero project.

The college received over £1 million of public funding between 2020 and 2023 for the Fuel Change project. Auditors qualified the college’s 2022/23 accounts due to a procurement breach which primarily related to failures by the college to:

• draw up and agree contracts for project spending totalling over £900k
• obtain approval to appoint a supplier without competition.

The college carried out an internal investigation into suspected financial irregularities related to the project. This included £76,000 of public funding being paid into non-college bank accounts, rather than paid directly to the college.

The college did not lose any money from these procurement and financial control failings. The college has since ended its ties with the Fuel Change project. It has also carried out a lessons learned exercise and implemented its recommendations.

Stephen Boyle, Auditor General for Scotland, said:

Forth Valley College did not oversee and manage the finances of the Fuel Change project properly, and this led to significant failings.

The college has since taken action to minimise the risk of these failings happening again, including making good progress on strengthening arrangements for future college-run projects.

There are lessons to be learned for other colleges and public bodies, who need to make sure they can manage the risks associated with involving external bodies in projects.