Dundee & Angus College maintains its finances are secure despite revealing it will report a budget deficit this financial year.
The college is just one of 16 in Scotland that will report a deficit after reports were submitted to the Scottish Funding Council.
A number of big reforms were implemented in recent years which affected the structure of the institutions, and budgeting and staff.
They are now tailored mostly for young people on full-time courses which lead to recognised qualifications.
In 2013, Dundee College and Angus College merged into one ‘super-college’ based in three main campuses on Keptie Road in Arbroath, and on Gardyne Road and Old Glamis Road in Dundee.
A spokesperson for the college said: “D&A College will report a deficit for 2015/16 but this is due to non-cash charges for depreciation and pension liabilities. Despite significant cost pressures, the college managed to protect its cash position.”
16 out of 20 colleges in Scotland — more than 75% — have projected a deficit for this financial year, with the issue set to be debated in Holyrood after Scottish Labour inequalities spokeswoman Monica Lennon raised concerns.
An initial Audit Scotland report at the end of August revealed several financial problems facing the sector, as well as declining numbers of part-time students.
Shona Struthers, Chief Executive, Colleges Scotland said: “Colleges have already taken a 27% cut in funding since 2010/11, and the recently published Audit Scotland report is clear that the college sector is showing signs that it is facing significant financial pressures.
“That said, Colleges Scotland is committed to working with the Scottish Government to ensure that colleges, as public bodies, are as financially stable and sustainable as possible.”
The news comes after lecturing staff at the college were awarded a £450 pay rise after national strike action in March this year.
Unions representing support staff – such as cleaners, administrators and technicians – are still in the midst of negotiations however, as they claim the £230 rise they were offered is inadequate.
Further national strike action is scheduled for November 8 and 9 if no agreement is reached between unions and colleges.