Lews Castle college accounts qualified

Lews Castle College’s accounts have been qualified by auditors for failing to follow accounting standards around its stake in a Gaelic heritage venue.

Lews Castle partnered with Gaelic arts organisation Ceòlas Uibhist in 2019 to establish Cnoc Soilleir Ltd (CSL), a charitable venture that promotes the Gaelic language, heritage, music and culture.

To comply with accounting standards, auditors advised the college that it needed to include its £4.7 million share of CSL’s equity value in its 2022/23 financial statements. College management disagreed with this request and wrote down the value of its share of CSL to £1.

The auditor concluded that the college had misstated its share in CSL and issued a qualified opinion on the 2022/23 accounts. Lews Castle merged with two Highland colleges in 2023 to form UHI North, West and Hebrides.

Stephen Boyle, Auditor General for Scotland, said:

It is important colleges comply with financial accounting standards to ensure that financial statements accurately report their financial position and to help them meet their legal obligations.

The auditor will continue to discuss with college management how the investment in CSL is reported in the newly formed college financial statements.