A renowned specialist college placed at “significant financial risk” by overspending faces selling off assets to balance the books.
Ruskin College in Oxford, established in 1899, focuses on providing educational opportunities for young people from disadvantaged backgrounds. It is an affiliate of the University of Oxford.
It has been subject to Education and Skills Funding Agency (ESFA) intervention since December 2014, after its accounts revealed “inadequate financial health”. While its financial health subsequently improved to “satisfactory” in 2015-16, this deteriorated once more, resulting in a “substantial loss for 2016-17 which put significant pressure on working capital and resulted in another inadequate grade for financial health”.
A report published this week by the FE commissioner comes after a deputy commissioner and two advisers visited the college in April.
‘Significant financial risk’
The report states: “The pattern of significant operating deficits over a number of years has eroded the college’s reserves and placed the college at significant financial risk. This is only recently being addressed by the new principal and the new senior leadership team.
“Despite decisive action to restructure and rationalise staffing, coupled with the recent implementation of much tighter financial controls, the college’s small scale and limited working capital will make it hard to achieve financial resilience or to make the necessary investment in its estate without further asset disposals. Governors and leaders are rightly anxious to protect the college’s unique role and mission but need to recognise the risks of any further lapse in financial performance.”
Strategic partnerships
It adds that the college is in “active dialogue with several HE institutions” about forming strategic partnerships to safeguard its future.
A letter from apprenticeships and skills minister Anne Milton, published alongside the report, welcomes the college’s decision to explore a range of options, including a potential merger with an FE or HE college.
“I understand the first steering group meeting was held on 8 June with a view to identifying a suitable partner by 11 September 2018,” Ms Milton adds.
