College tackles big cash shortfall
However, the central and unavoidable fact was a pound;4 million error in Nottinghamshire College's financial forecasting, which was both astonishing and unacceptable.
In 2002 the forecasted financial state of South Nottingham College, prepared by its own auditors, was pound;3.289m in the red, while the college forecasted a cash balance of pound;478,000 in the black.
These financial facts were compiled at the insistence of Nottinghamshire LSC and contained in Mr Donaldson's report, reproduced from the auditor's report.
The LSC recognises the actions by Nottinghamshire Local Learning and Skills Council and the local chair, Duncan Sedgwick, were taken to protect the interests of learners and of the public purse.
I am pleased to note that the college, working alongside the LSC, has made significant progress towards correcting this extremely serious problem.
The LSC remains committed to taking swift and decisive action in dealing with a sudden deterioration in the financial position of any college.
Chairman Learning and Skills Council