PRINCIPALS OF Scottish further education colleges such as Elmwood in Cupar are in discussions with the Scottish Funding Council (SFC) about new methods of providing cash.

Elmwood College was this week revealed by The Courier to be facing a financial deficit which needs a £600,000 “turnaround,” and creation of a £200,000 contingency fund.

The college could face job losses as it tackles the problems, but the principal, Jim Crooks, said yesterday the difficulties faced in Cupar are not uncommon in further education in Scotland.

He also said colleges like Elmwood have additional facilities that are expensive to maintain.

Elmwood has extensive golf operations, including the ownership of an 18- hole golf course, clubhouse and restaurant west of Cupar.

The course has its own club and membership, and in addition to the playing side it is used as a valuable teaching centre for a range of courses developed as the college has built on its early pioneering work in provision of greenkeeping qualifications.

The Courier has asked the principal if the facilities have been a drain on resources, but Mr Crooks emphasised that golf is a “key area” of provision.

“We have established a world-class reputation which will help in our long term prospects in this niche area,” he said.

Mr Crooks was also asked if the board of management has been adequately overseeing the running of the college, and he responded by stating it has an “excellent overview.”

He said its finance committee meets regularly to discuss in detail the college’s financial situation, and this is shared with the full board.

He said, “The board of management and staff are absolutely committed to our sustained development—we have a bright future and a stable financial position will provide a springboard for our new strategy.”

Figures produced by Audit Scotland for the financial year 2005/06 show the college had an accumulated reserve of £2,562,000.

It was pointed out the college had no formal strategy for the use of this reserve, although it was indicated it would be utilised to “maintain future financial security.”

Mr Crooks said this use will principally be for capital expenditure, and accounting policies for the further education sector do not permit the use of reserves to meet ongoing revenue costs such as salaries or pay awards.

Talks with unions at the college are due to begin and there will be a consultation period of 90 days.

Mr Crooks said, “At this stage, we are seeking to engage colleagues in consultation on a number of options which are designed to have the minimum impact on the teaching and learning at Elmwood and to uphold our excellent reputation in delivering a quality learning experience.”