APPENDIX I
THE MANAGEMENT OF GROWTH IN THE ENGLISH
FURTHER EDUCATION SECTOR (PAC 97-98/247)
Supplementary Memorandum submitted by
the Further Education Funding Council
Q20. FINANCIAL HEALTH
OF SIXTH
FORM COLLEGES
At 6 April 1998 the number of colleges falling
into health category C was as follows:
|
| Category
| Other categories | Total
| Proportion
Per cent
|
|
| Sixth form colleges | 11
| 97 | 108
| 10 |
| Other colleges | 85
| 250 | 335
| 25 |
|
| Total | 96
| 347 | 443
| 22 |
|
Q94-95. POWERS IN
RELATION TO
COLLEGES
The instruments and articles of government of each corporation
make the governors responsible for ensuring the solvency of the
corporation. In the first place the efforts of the Council are
directed to encouraging colleges to take practical measures to
ensure their solvency and monitoring their financial position.
However some colleges are unable to maintain their solvency
without assistance from the Council or the banks. In both of these
situations the Council has additional leverage which it can bring
to bear on college behaviour. Where a college is seeking and advance
of funds from the Council conditions are attached to any advance
made. Where a college is seeking to borrow any significant[1]
sum from a bank the Council's specific consent is required. In
these circumstances the Council attaches special conditions to
the consent. So in both cases the Council is able to take action
to affect college behaviour.
As a last resort, the secretary of state has statutory powers
to dismiss governors or dissolve corporations.
Chief Executive
The Further Education Funding Council
7 April 1998
1
Any sum greater than 5 per cent of turnover. Back
| 
