The new vice-chancellor of the University of Dundee has acknowledged there has been ¡°clear failings in financial monitoring and management¡± at the institution, as it published its response to a damning report into its governance.

Senior leaders were ¡°focused on their own portfolios, with limited cross-functional financial accountability¡±, the university said after an inquiry led by Pamela Gillies found that members of the university¡¯s executive group had?¡°failed¡± to disclose the extent of the financial crisis to other university officials.

Dundee has committed to reducing all non-essential spending, and is conducting ¡°daily cash-flow monitoring¡±, as it set out an action plan to improve its financial management and governance over the next 18 months.

The Scottish Funding Council has had to provide more than ?60 million in additional funding to rescue the ailing institution which earlier this year said it was facing ?35 million budget shortfall.

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Gillies, a former vice-chancellor of Glasgow Caledonian University, said in her report that the former vice-chancellor, Iain Gillespie, had a?¡°top-down, hierarchical and reportedly over-confident style of leadership¡±.

Nigel Seaton, who has taken over as interim principal and vice-chancellor after a series of resignations at the institution, said: ¡°It was evident from the Gillies Report that there had been clear failings in financial monitoring, leadership, and governance at the university.

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¡°The entire UK higher education sector has been forced to deal with significant external factors in recent years but our university¡¯s response to these, and its management of finances, fell well short of the standards that everyone should have expected.¡±

Dundee announced it will cancel or defer ¡°non-essential¡± capital projects, and will implement further cost controls to reduce discretionary spending on areas including travel, events and consultants. ¡°Low-value¡± expenses will now have to be manually approved.

Existing bank covenants ¡°are being closely monitored¡±, and regular dialogue is taking place between the university and the Bank of Scotland. It said it intends to cancel an existing revolving credit facility it has with the Bank of Scotland ¡°as soon as possible¡±, which it said will ¡°remove all banking covenant requirements going forward until new commercial lending is secured¡±.

It also committed to ensuring that members of its executive group and court ¡°receive training in financial literacy¡± and that these include ¡°appropriately qualified and skilled members¡±, after?concerns were raised that some members of Gillespie¡¯s team were ¡°not up to the job¡±?and ¡°struggled to stay on top of everything¡±.

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Ian Mair, acting chair of court, said that the actions set out in the response are ¡°designed to ensure the university has a sustainable future built upon strong governance, financial competence, transparency, and accountability¡±.

¡°Our response provides detailed assurances to our stakeholders that the immediate, robust, and impactful action required to implement significant operational and cultural change is underway,¡± Mair continued.

The response adds that the publication of the Gillies Report was a ¡°chastening experience¡± but presented ¡°a unique opportunity to renew and refresh the university¡¯s covenant with its community¡±.

¡°We believe that these changes will enable the university to rebuild trust, strengthen its foundations, and emerge as a more transparent, inclusive, and accountable institution, better equipped to serve its mission and community in the years ahead,¡± it says.?

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¡°We are committed to becoming the institution we aspire to be - a truly values-led university with a culture that privileges transparency and accountability, and that actively supports evidence-based, collaborative decision-making, integrity, and openness.¡±

juliette.rowsell@timeshighereducation.com