Financial management must improve at UHI Perth

UHI Perth has started to address weaknesses in its financial management after recording a £2 million deficit in 2023/24, but it needs to do more.

The college failed to produce a budget for 2023/24, significantly limiting the ability of senior leaders and the board to manage the college’s financial position. There is no formal record of the board agreeing to not produce a budget.

The budget setting process was reinstated for 2024/25 and 2025/26. UHI Perth is reviewing its budgetary controls after a request from the college’s board. Work is also ongoing to build capacity in the college’s finance team and to finalise a financial recovery plan.

The college was impacted by a range of further issues in spring 2025, including:

• errors in the 2024/25 budget and cashflow calculation led to a request for emergency funding from the Scottish
• Funding Council
• the resignation of senior staff and board members, including the Principal and Chair of the Board
• the college’s Air Services Training subsidiary entering administration.

Stephen Boyle, Auditor General for Scotland, said:

Although UHI Perth has begun addressing its financial management and governance weaknesses, it needs to continue to work with the University of the Highlands and Islands and the Scottish Funding Council to strengthen how the college operates.

That needs to be done alongside finalising and implementing a robust financial recovery plan.