Independent probe into Dundee University finances

More than 600 jobs are to be cut at the university

An independent investigation into the causes of the financial crisis at Dundee University has been launched.

The university announced earlier this month it will cut 632 jobs in a bid to address a £35m deficit.

The probe commissioned by the Scottish Funding Council (SFC) will look at the reasons for the "deterioration" in the institution's finances and attempt to understand how this came as a surprise to the university leadership".

The university said it was "committed to engaging fully" with the investigation and acting on its findings.

The SFC, an arms-length public body of the Scottish government, approved a £22m support package for the university last week.

The investigation will be headed by former Glasgow Caledonian University principal Prof Pamela Gillies.

Former Dundee University principal Prof Iain Gillespie told staff in November that job losses were "inevitable" and blamed "an extremely challenging period" for the UK higher education sector.

He resigned with immediate effect in December.

Last week, interim principal Prof Shane O'Neill told MSPs that "misleading information" had been given to him and others last year over the university's position.

The SFC said the independent review would consider the role of management and governance, the information flows, any cultural issues and whether appropriate questions were asked at the university's executive group, court and committees.

Its terms of reference include looking at "the extent to which, over time, budgets were building in unrealistic savings or income targets which masked the true ability of the university to meet its budget targets."

It will also examine why "key signs of distress" were not reported to the executive group and court in a timely fashion and why court was only informed fully in November.

Once the investigation's full team is in place, the probe is expected to take about two months.

Francesca Osowska, SFC chief executive said the body was committed to working alongside the university's senior team as it finalises and delivers "a financial recovery plan that will see it return to a position of financial health."

She added: "Alongside this work, it's vital that the circumstances surrounding the financial challenges at the university are fully investigated, with rigour and transparency, and that lessons are learned to minimise the risk of this situation arising again."

A Dundee University spokesperson said: "We welcome the publication of the terms of reference for the investigation and are committed to engaging fully with it and acting on its findings."