Katrine Bussey

Decision-makers at a college that made severance payments totalling almost £700,000 to its three most senior staff members have been accused of showing “concerning levels of ignorance” by an MSP.

A total of 24 members of staff left North Glasgow College during the 2012/13 financial year, with  the principal Ronnie Knox, vice-principal John Gray and HR director among those who departed.

Payments totalling £689,376 were made to these three, according to an audit that was carried out.

In the latest blow to the reputation of the colleges sector, a report by the Public Audit Committee claimed the levels of governance at the college were “unacceptable”.

North Glasgow was one of three institutions which joined together in November 2013 to form Glasgow Kelvin College.

Committee convenor Paul Martin commented that those involved had shown “concerning levels of ignorance”. MSPs said they had been told the college’s remuneration committee was unaware of Scottish Funding Council (SFC) guidance requirements on documentation, decision-making and record-keeping.

Their report said: “The college had no severance policy and the remuneration committee was unaware of the SFC guidance on severance arrangements, but despite this a voluntary severance scheme (VS scheme) was approved by the college.

“It was noted that the college’s VS scheme did not provide specific guidelines on the process to be followed for the severance of  senior management.”

Total restructuring and severance costs at North Glasgow College amounted to £1.29 million, the report stated, adding there had been an “initial assumption” at the college that all voluntary severance costs would be paid by the SFC. It provided £866,000, resulting in a shortfall of £424,000 – with about £240,000 of the shortfall arising from the severance payments made to the principal, the vice-principal and HR director.

The SFC told the college its funding would be restricted and would not meet the entire costs on October 24, 2013, but by this time the report said the chairman of the board had already approved the payments and these were made just four days later, on October 28.

The chairman of the college board was also the chairman of its remuneration committee, the report added, with MSPs recommending “no chair of a college board should also chair that college’s remuneration committee” in future.

It added the decisions made by North Glasgow College’s remuneration committee were “not detailed anywhere in minutes or papers and were not formally reported to the board” of the college.

The report continued: “This governance shortfall meant that neither the auditors nor this committee could be satisfied that the decisions taken were made appropriately and with due consideration.”

A Scottish Government spokesman said: “We acknowledge the Public Audit Committee’s report into the governance failings at North Glasgow College. As ministers have already made clear, we expect that high standards are met when decisions are taken involving public money.

“As the report highlights, these events took place prior to stronger financial controls coming into effect across the sector. Today, colleges are required to comply with processes set out in the Scottish Public Finance Manual.”