In an exclusive interview with Francesca Osowska, Chief Executive of the Scottish Funding Council. The Jute Journal asked the most pressing questions that students and staff want answers to, amidst the current financial crisis at the University of Dundee.
The Scottish Funding Council and its role
The Scottish Funding Council (SFC) is a non-departmental public body, which is publicly funded and at arm’s length from the Scottish Government. It has an independent board and provides funding for research and teaching in Scotland’s colleges and university’s.
The SFC has provided more than £60 million to the University of Dundee since the financial crisis began in November 2024. Francesca said:
“With the funding [given to the university], we have certain expectations from our institutions to deliver excellent public value, which is excellence in research, teaching and student experience. To support this, we have a programme of quality improvement and work with institutions, so it’s not just quantity of funding; it’s what we get from it as well.”
Lack of Engagement with University Staff and Students
To receive funding, the university must comply with 28 conditions set by the SFC. One of those conditions is meaningful engagement with staff and students – giving them space to become active partners in decision-making that impacts the university.
TJJ asked: “Dundee University College Union (DUCU) and Dundee University Student Association (DUSA) wrote to the SFC warning that conditions of engagement have not been met. Why was the recovery plan approved when there has been little meaningful engagement with staff and students?”
To which Francesca responded:
“Universities are autonomous institutions. They are not public bodies funded by the public purse. They have their own board called a court, who are responsible for the strategic direction of the university.”
“It was not the Scottish Funding Council’s role to approve the strategy to recovery; that was the University Court – that is where the governance lies. The reason I say that is because university courts also have a particular role.”
Who approved UODs Latest Strategy to Recovery?
The recently approved recovery plan proposes even more cuts to staff numbers, cuts to facilities (including the botanic gardens, chaplaincy centre, nursery, etc.), and cuts to courses (such as philosophy, maths, languages, etc.).
“It is important to separate the two things. The strategy to recovery is absolutely in the court’s hands, and there are the conditions of funding, which our board has put in place to support additional funding to the university. That is for the SFC board to monitor.”
This clarifies a common misconception: the SFC does not approve the recovery plan; the university court created and approved it. Furthermore, Francesca said:
“There were 28 [funding conditions], and a special subcommittee of the [SFC] board met on the 12th June. The condition around meaningful engagement with staff, trade unions, and students can be fulfilled in a number of ways.”
“In terms of the evidence that was presented to us in the strategy to recovery – including detailed information on the work that had been taking place [and] independent review of engagement – the Board subgroup’s view was that all of the conditions, as written, have been met.”
DUCU and DUSA Respond
Students and staff have raised concerns that a 45-day consultation period is insufficient when hundreds of jobs and the university’s future are at stake. Francesca said there is a need to balance consultation time with the need to provide certainty for students and staff, who have faced uncertainty since November 2024.
It is to be noted the DUCU and DUSA’s efforts did not go unnoticed, and students still have a voice in this. As Francesca said:
“DUCU and DUSAs alternative views were reported at the Board subgroup meeting and they recognised the points being made. From interpreting the conditions of funding, the bar had been met. However, the board also recognised that engagement and meeting the conditions is not a one-off event, it has to apply to the future as well, as the conditions are in place until next year.”
“In recognition of ongoing challenges with engagement, on 12th June, the chair of our board, Cara Aitchison, wrote to the chair of [University] court, Esther Robertson, to note what further work the university will do on meaningful engagement. In writing this, we wanted to say we will continue to monitor what you have said in the strategy to recovery, and that is what we are doing.”
“On the 25th of June, Cara followed up with a further letter to emphasizing the need for demonstrable progress on meaningful engagement. There is going to be a follow-up meeting which gives us more confidence in the forward actions of the university. I hope it will address some of the concerns that have been raised by DUCU and DUSA.”
Assessing Dundee’s Financial Position and Future Stability
According to the 2023/24 financial reports released last month, the university moved from a genuine recovery position in 2022/23 to an underlying deficit of £2.8 million in 2023/24. The university’s liquidity collapsed from £99.9 million to £32.4 million in two years, and EBITDA fell to 0.9%, triggering covenant breaches and the removal of the £40 million revolving credit facility.
TJJ asked: Given all of this, how did the SFC recently conclude Dundee was on a credible path to financial sustainability?
In response to this, Francesca noted that annual reports and accounts capture a moment in time and do not always give a full picture. The SFC’s financial analysts work in real time and are in close contact with the university to manage matters such as the drawdown of money from the special (section 25) funding provided to UoD by the Scottish Government.
Despite recent challenges, the University of Dundee is moving towards a path of recovery. Francesca said:
“The Gillies Report talked about failures of governance, and since the report, working with the new chair of court, Esther Robertson, I am seeing improvements in governance and decision-making. In the long term, we want the university to stand on its own two feet – to absolutely survive, but more than that, to thrive.”
Francesca’s message to UoD students
Francesca said: “My heart goes out to all those people who are affected”, and acknowledged that the situation must have felt “difficult and unsettling”. She thanked students who have engaged with SFC through DUSA. Finally, she pointed out that the realities of situations like this mean that getting your say doesn’t always mean getting your way – but even that could be a valuable lesson.
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