A temporary reshuffle of top staff is planned at the Further Education Funding Council during a recruitment freeze imposed while the organisation seeks belt-tightening measures.
The post of finance director, falling vacant at the end of this month when Roger McClure leaves for the London Institute, will be filled for six months by Geoff Hall, FEFC director of programmes.
Mr Hall's job will be advertised internally on the same temporary terms.
The FEFC has been told by the Government it must reduce its running costs by 5 per cent over three years, bringing its budget down to Pounds 23 million in 1998-9.
The organisation is now reviewing its activities and priorities to identify scope for cut-backs. It has already admitted that the funding reductions will mean staff cuts, and predicts that it will need to cut the cost of its monitoring activities, including inspection and audit, in order to give priority to struggling colleges.
FEFC spokeswoman Patricia Stubbs said Mr Hall's move was a holding measure until decisions had been taken on the council's structure and organisation.