Experts hired for investigation into crisis-hit Scottish university as probe timetable is revealed

The Scottish Funding Council (SFC) has confirmed the recruitment of international company BDO to examine the decision making and reporting process at the institution.

It had already been announced the inquiry would be led by Professor Pamela Gillies, former principal at Glasgow Caledonian University.

In March, Holyrood’s education committee was told that senior figures at the university had not been aware of the scale of the financial problems at the university until a key court meeting in November last year.

MSPs heard from the interim chair of the university’s court, Tricia Bey, that she did not know whether financial information had been “deliberately” withheld from her and others.

The committee was told senior figures had been under the impression the university was in a break even position in its 2023/24 accounts, before being told in November the institution had a deficit of £12.3m in 2023/24, and was heading towards a loss of £30m in 2024/25.

The Scotsman previously revealed how former principal, Iain Gillespie, broke the news to stunned members of the court.

A recovery plan is now being implemented that could lead to the loss of 700 jobs, although a Scottish Government-backed taskforce has recently been announced, amid hope alternative options can be found.

The SFC’s terms of reference for the investigation outlines 16 aspects it will seek to understand, including the causes of the worsening financial situation, and why the university failed to “manage its cash prudently”, allowing it to “deteriorate to critically low levels”.

The effectiveness of internal systems and controls will also be probed, as will the reasons why “key signs of distress” were not reported to the executive group and court in “a timely fashion”.

The “quality, credibility and accuracy” of the information provided will also be considered, along with the extent to which the executive group and court were left with “a false impression of the university’s financial health”.

Meanwhile, the terms of reference will consider “the extent to which any current or former member of the executive or governance structures sought to suppress information about the magnitude of the financial situation”.

The appointment of BDO has been confirmed by the SFC in a letter to education committee convener Douglas Ross.

Jacqui Brasted, interim director of access, learning and outcomes at the SFC, said: “Following last month’s announcement of an independent investigation into the University of Dundee’s finances, I am pleased to be able to inform the committee that the Scottish Funding Council has now appointed a team of experts to carry out the work.

“The investigation will be undertaken by a cross-discipline team from BDO. Amongst the important tasks the team will undertake is an examination of the role of management and governance. It will also look at information flow, cultural issues and whether appropriate questions were asked at the university’s executive group, court and committees.

“BDO is well respected and highly experienced in its field, including in the fiscal management of higher education institutions in financial distress. It also has significant experience of university governance, having been consulted in the development of governance codes and the sector’s audit code of practice.

“The appointment of BDO is an important step forward. They will have full access to all appropriate documents and will be meeting with a wide range of people, including the university’s executive team, trade unions, regulators and, where possible, former members of staff and court.

“Professor Pamela Gillies, the lead investigator, and her newly appointed team will begin their investigation at pace. We can now confirm our expectation that the final report will be available to committee members and published mid-June.”