The Argus: What was the main cause of the problem?

Monica Box: Controls. They were all management issues that have been recognised and there is a good strong plan in place to change that.

TA: Why was that control not there?

MB: It was an organisational lack of adherence to financial controls. In some ways while that may seem counter-intuitive; it is one of the best reasons for getting into financial difficulty. If you are in difficultly because your controls aren’t right, you can do something about that.

If you are in difficulty because you haven’t managed the finances effectively you can do something about it. If you are in difficulty because you can’t generate enough income then that is much more of a serious problem.

TA: When you talk about spending. Lack of control of spending on what?

MB: It can be a whole range of things in an organisation. It can be staffing; we had a restructure. It can be from planning – so planning to have numbers of students in. It can be a whole range of things, it can be around class sizes. Controlling this and knowing how to deal with things is critical.

TA: So was cash flow the main financial issue?

MB: Well, yes. For any organisation or business they have to have enough money coming in to pay for products or services. You will be aware some of our suppliers hadn’t been paid, we are dealing with that.

The suppliers by the end of April, we are expecting, will have been paid within our normal time scales.

TA: Have they all been paid back?

MB: By the end of April we expect to be paying suppliers who have provided us with things within the financial regulations, so within the 60 to 90 days.

TA: And by that stage you would have hoped to have paid off all the existing debts?

MB: Well, we will be expecting to pay people if they have put in an invoice to be working within those rules.

TA: Can you say how much was owed?

MB: No, not in terms of the actual details. I think you reported tens of thousands of pounds, it was in that region.

TA: Not hundreds of thousands?

MB: No, it was tens of thousands.

TA: What does prudent mean in practical terms?

MB: It means better controls of how our finances are used in the college. Managers will have a key worker from finance who will be allocated to them so they now have a clear understanding of their budgets.

It was a management issue in terms of making sure monies allocated were spent and not overspent.

Those managers will now have help internally, financially.

TA: Are there likely to be any job losses?

MB: We are planning the curriculum now for the next year and once that plan is in place we will know the extent of the staffing that we need for that.

Every further education college in the country has some reduced funding so we will be addressing that.

Certainly if there was any staffing change related to that people would be informed very quickly and then there would be proper communication.

At the moment we don’t have a plan in place to reduce staffing.

TA: But you cannot rule it out?

MB: We can’t rule it out. In that sense we are in line with every other college in the country.

TA: Are all the courses safe?

MB: No, we can’t confirm the courses because we have to review every year the courses we can offer and there are Government priorities as well.

The Government funds us to deliver to their priorities so if there is a priority shift then we have to address those changes.

TA: We reported last month that your accounts had not been filed. Have they now been filed?

MB: Not yet, they are sitting on a desk at the moment. We’ve got that work virtually completed and expect to have it completed in the next week or so.

TA: What are the consequences of filing the accounts late?

MB: There certainly could be consequences. Funders are very clear that colleges need to file within the regulated timeframe.

We had the further education commissioner in and he identified we can have a college-led financial recovery programme so in that case that gives some comfort to the funders and the bank.

We are later than we want to be. Later than we should have been. It is not ideal.

TA: Has there been a fine?

MB: No, no fine. No financial sanctions but we have notices of concern from the funders. That is the sanction.

We take that very seriously because that can affect the future funding. It effectively could be a sanction if we couldn’t accurately put those accounts together.

It could stop us getting further funding but we will put those accounts together.

TA: There have been rumours the college has taken out a loan?

MB: We have been supported by the bank with overdraft facilities but we have not been given anything else. Everything is from the bank and there is an overdraft facility.

TA: How much is the overdraft?

MB: The facility will enable us to work through the year, so it will match our needs.

TA: Is the redevelopment going ahead as planned?

MB: The development up at the East Campus is going ahead; that is supported by the Local Enterprise Partnership. Funding is agreed and we are delighted about that.

With this site, the plans are still there, we are still working towards that in the sense that the governors see it as a key strategic item on their agenda but we won’t be progressing at the moment.

We need to get the financial situation sorted out first.

TA: What do you make of Lynn Thackway’s [the former principal] contribution to the college?

MB: Very positive. Look at the good achievement rates we have, higher than the national average. And the academy in the east of the city, it is all very positive.

TA: But all these problems were on her watch?

MB: Senior managers are responsible for all aspects of the college and obviously we have had some cash flow problems during that time and there is always going to be responsibility from senior leaders.

So I think we have to look at all of the positive things and any impacts and attribute them to whoever the leader is.

I’m the leader now and we still have cash flow problems so I must take responsibility for that.

TA: Would you say her positive achievements outweigh the negatives?

MB: I do think there is a lot of positive work. You will see the evidence and the key thing is our achievement rates for learners.

TA: What would your message be to students thinking of applying?

MB: They are our priority; we regret that the 37 students had their examinations cancelled. That won’t be happening again.

I would want to assure that we are in a very vibrant and thriving education community and anyone wanting to come here will be very much welcomed and I think they will find it a very exciting experience.

If you walk around it has a very good feel to it.