College bosses slammed over senior staff payouts

North Glasgow College was part of a merger which became Glasgow Kelvin College. Picture: Jamie Forbes

Decision-makers at a college which made severance payments totalling almost £700,000 to its three most senior staff members showed “concerning levels of ignorance”, the convener of Holyrood’s Audit Committee said.

Paul Martin made the criticism as the Public Audit Committee published a report which claimed levels of governance at North Glasgow College were “unacceptable”.

It was one of three institutions which came together to form Glasgow Kelvin College in November 2013.

A total of 24 members of staff left North Glasgow College during the year 2012/13, with the principal, vice principal and HR director among those who departed.

Payments totalling £689,376 were made to these three, according to an audit that was carried out.

But MSPs on the Public Audit Committee said they had been told the college’s remuneration committee was “unaware” of Scottish Funding Council (SFC) guidance requirements on documentation, decision-making and record-keeping.

Their report said: “The college had no severance policy and the remuneration committee was unaware of the SFC guidance on severance arrangements, but despite this a voluntary severance scheme (VS scheme) was approved by the college.

“It was noted that the college’s VS scheme did not provide specific guidelines on the process to be followed for the severance of senior management.”

Total restructuring and severance costs at North Glasgow College amounted to £1.29 million, the report stated, adding there had been an “initial assumption” at the college that all voluntary severance costs would be paid by the SFC.

It provided £866,000, resulting in a shortfall of £424,000 - with about £240,000 of the shortfall arising from the severance payments made to the principal, the vice-principal and HR director.

The SFC told the college its funding would be “restricted” and would not meet the entire costs on October 24 2013, but by this time the report said the chair of the board had already approved the payments and these were made just four days later on October 28.