Financial Challenges

Paul McGuire, National LSC Finance Director

Objective: to maintain sector financial health whilst challenges increase

Financial Health: new methodology - Outstanding 144 colleges, Good 101, Inadequate 17
Relatively stable over recent years, but forecast to decline.

Challenges:
Allocations 09/10
Capital
Efficiency savings
MoG/LSC transfer
Economic downturn

Way forward:
LSC to work more closely with AoC, CFDG
Finance as strategic support not just operational, across the sector

David Collins - does having an AiP mean a college has a legal claim against the LSC? PMcG - not appropriate to answer, bridges away from question, he's been media trained...

ALR - ER virement seems to make sense but would require safeguards re basic skills, supported learning etc.