Dundee University grapples with a £35 million deficit, prompting job losses and an independent investigation into possible fraud as the leadership undergoes significant changes.
Dundee University is presently enveloped in financial turmoil as auditors raised concerns related to “fraud” and “unusual transactions” just two months prior to the discovery of a substantial £35 million deficit within its accounts. The financial concerns were highlighted in documents obtained by The Courier, which detail the inquiries made by the finance firm Ernst & Young (EY) in September, notably directed towards the university’s audit and risk committee.
During their examination, EY posed 13 questions to the university officials, to which the responses filled four pages. University management maintained that they were not aware of any actual, suspected, or alleged fraudulent activities. Additionally, they asserted that the institution possessed “adequate financial resources” and the capacity to navigate a pessimistic budget outcome.
However, the situation escalated dramatically in November when Iain Gillespie, the then principal of Dundee University, informed staff that job losses were “inevitable” due to an emerging deficit initially estimated at £30 million, which has now increased to £35 million. Gillespie resigned shortly thereafter, leaving the acting principal, Shane O’Neill, to oversee the university’s operations.
The potential job losses could reach as high as 700, and an independent investigation has been initiated to determine whether senior leadership attempted to suppress information regarding the university’s financial difficulties. Investigators are also probing why the university did not address these pressing financial issues sooner.
In a statement given to MSPs at Holyrood, O’Neill acknowledged that he could not dismiss the possibility of criminal activity concerning the misleading information surrounding the institution’s financial status. He emphasised that the true extent of financial problems only became apparent in November, thereby raising additional questions regarding the accountability of the university’s leadership when responding to the auditors.
EY specifically inquired about any “significant or unusual transactions” within the university. The audit and risk committee responded that they were “not aware” of any such transactions. The Courier further reports that there has been no subsequent communication sent to EY since the revelation of the £35 million deficit.
In a recent statement, a spokesperson for Dundee University noted, “As is standard in respect of finalising the annual audit process for FY2023/24, we are continuing to engage with our auditors to sign off the annual accounts, which includes a letter of representation.” They added that consultation with external auditors is ongoing as the university approaches the completion of the audit process.
A government taskforce aimed at securing the future of the university was announced this past Tuesday, with former principal Sir Alan Langlands appointed to chair the initiative. Concurrently, the university has undergone a leadership overhaul, seeing the departure of two vice-principals, while O’Neill has begun to recruit a team of advisers to facilitate the recovery process.
O’Neill’s predecessor, Iain Gillespie, is scheduled to appear before Holyrood’s education committee, despite initially declining to participate, following the Easter break this month.
Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative includes recent developments, such as Iain Gillespie’s resignation and the announcement of a government taskforce. The information appears to be current, with no signs of being recycled from older news.
Quotes check
Score:
6
Notes:
There are no direct quotes traced back to an original source. However, Shane O’Neill’s acknowledgement of potential criminal activity concerning misleading financial information is reported without an explicit earlier source.
Source reliability
Score:
8
Notes:
The narrative originates from The Courier, which is a well-established local newspaper. However, the specific details and quotes may require further verification from multiple sources for full reliability.
Plausability check
Score:
8
Notes:
The claims about financial turmoil and investigative actions seem plausible given the context of university financial crises. However, some allegations, such as potential criminal activity, cannot be verified without further evidence.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
While the narrative appears fresh and is reported by a reputable local source, certain quotes lack verification and some allegations require further investigation to confirm their accuracy.
