Edinburgh College – Podcast transcript 
I’m speaking today with Mark Macpherson, senior manager at Audit Scotland, about a new audit report on the financial sustainability of Edinburgh College. In 2015/16, the college served nearly 18,000 registered students and employed around 1,100 members of staff. 
Mark, can you explain a bit more about what today’s report is about? 
This is the second year in a row that we’ve reported to the Scottish Parliament on the financial sustainability of Edinburgh College. 
Last year we highlighted concerns about the financial position of the college, and we’re now providing an update on the progress that’s been made to address those concerns. 
So what have you found this year?
We found that the college understands what issues led to its current financial position and has improved its performance in some areas. 
It’s making progress with its transformation plan, and both it and the Scottish Funding Council (SFC) are confident that it will meet, and possibly exceed, its learning activity for 2016/17. 
It has also put in place more robust governance arrangements, which should lead to better and more consistent programme and project management, as well as better reporting to the Board and the Scottish Funding Council. 
It sounds like things are heading in the right direction, but what are the outstanding risks for the college? 
Well, the college's financial position remains challenging and was worsening at the end of 2015/16. Its future progress depends on successful implementation of the rest of its transformation plan, including a curriculum review and a voluntary severance scheme.
The SFC has provided written assurances to the college that it will continue to provide financial support during the implementation of the transformation plan, and has made clear that this support is contingent on the college delivering the remaining elements of the plan.  
However, if the college’s income or costs were to change, it could affect the college’s ability to repay the SFC or it could mean the college needs further support.
So, there are still a number of important areas that the college, its Board and the SFC need to monitor closely.
So what happens next? 
The transformation plan is due to be fully implemented by 2018/19. It’s too early to make a judgement about whether it will be successful in achieving financial sustainability. 
We’ll present the report to the Parliament’s public audit committee next month, and we’ll continue to review the college’s progress through our annual audit work.
Mark, thank you. And the report is available to download from our website, www.audit-scotland.gov.uk