A probe has been launched to investigate the PS35m surplus that led Dundee University earlier this week to announce that 632 jobs at the institution were at risk.
The Scottish Funding Council’s (SFC) investigation will look at the reasons behind the “deterioration of the institution’s financial situation” and try to understand why this was a “surprise for the university leadership”.
About 20% of the more than 3,000 employees at the university will be affected by these job cuts.
The full-time equivalent jobs lost were 197 academic posts, 119 professional services positions in schools, and 316 roles within directorates.
Last week, the SFC, a public body independent of the Scottish Government, approved a PS22m package to support the university.
Former Glasgow Caledonian University Principal Prof Pamela Gillies will lead the investigation.
Prior to his resignation in December, Dundee University’s principal Prof Iain Gillespie had told staff that job losses would be inevitable. He blamed the UK higher education industry for “an extremely difficult period”.
Gillespie was under pressure to reimburse travel expenses for he and a colleague who had taken flights and accommodations worth £7,154.
His colleague, who flew in economy class for PS1,067, paid PS4,723.
The university claimed that its activities in China were a key part of its global strategies, which brought in millions of pounds per year via “student recruitment, in-country education and collaborative efforts”.
Gillespie said that the university would still be facing a deficit between PS25m to PS30m in next year, despite a freeze on recruitment and reduced operational expenses.
The interim principal, Prof Shane O’Neill, told MSPs last week that “misleading” information was given to him and other people in the past about the university’s position.
The independent review by the SFC will examine the role played by management and governance in the university, the flow of information, the cultural aspects and whether the appropriate questions were asked to the executive group, the court and the committees.
The university’s budget target is to be met. Its term of reference includes looking at the “amount to which budgets over time were building up unrealistic income or savings targets that masked its true ability to achieve budget targets.”
The report will also look at why the “key signs” of distress were not communicated to the executive and court group in a timely manner and why only in November was court fully informed.
Francesca Osowska said that the SFC was committed to working with the university’s top team to finalize and deliver “a financial recovery program” which will help it to return to financial health.
Dundee University’s spokesperson stated: “We are delighted with the publication of the terms-of-reference for the investigation, and we are committed to fully engaging with it and acting upon its findings.”
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