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The head of admissions at the University of St Andrews said it had a good "student diversity" policy without having to be a "charitable venture".

Mike Johnson said the elite Fife institution had outreach programmes which connected with local communities.

Recent figures showed that the number of 18-year-olds from Scotland's poorest areas going to university was down.

Mr Johnson said a good university needed "diversity of thought" from its "diversity of students".

Tory MSP Liz Smith says the level of funding needed from outside the EU is significant.

Dr John Kemp says he accepts that and says the SFC encourages universities to be outward looking.

Jamie McIvor
BBC Scotland education correspondent

In February we reported figures which highlighted just how big a challenge it is to get more young people from disadvantaged areas to university.

The numbers are up - but progress is slow. At some universities, the figures even appear to be going the wrong way.

Politicians of all colours try to find answers. A Scottish government commission on widening access is due to report soon.

Nobody pretends either the problem or the possible solutions are straightforward.

Looking at universities in isolation, of course, misses the point.

Read more from our Education Correspondent Jamie McIvor here. 

SNP MSP Colin Beattie asks if the Scottish Funding Council (SFC) are reluctant to hold universities to account.

Dr John Kemp, Chief Executive, SFC, says they do hold universities to account but there is no point in being "too brutal".

He says the SFC try to work with institutions so it is a question of interpretation.

Universities Scotland director Alastair Sim says the number of qualified learners is increasing.

Mr Sim says the success rate of school leavers getting into university has dropped to 73.7%.

Tory MSP Liz Smith says there are more Scots domiciled students going to university but there are more qualified Scots not getting into university.

In March, the commission has set out 34 recommendations aimed at getting more pupils from deprived backgrounds into higher education in Scotland.

The Commission on Widening Access, external was set up by Nicola Sturgeon in 2014.

Image source, ANNAELIZABETHPHOTOGRAPHY

Its final report sets out a series of targets, including ensuring that pupils from the 20% most deprived areas make up 20% of Higher Education entrants by 2030.

It also calls for a Commissioner for Fair Access to be appointed.

The report has suggested that university admission thresholds should be lower for students from the most deprived backgrounds than for those from the country's wealthiest areas.

Dr John Kemp the interim chief executive of the Scottish Funding Council says funding is reviewed every year, with the government and Universities Scotland.

Tory MSP Liz Smith says post-Brexit if there should be a major review on the long term funding, bearing in mind the goal of widening access.

Image source, bbc

Dr Kemp says those are the kinds of decisions which are reviewed each year.

On Brexit, he says they are dealing with 'unknowns' bur reviews will continue as it becomes clearer.

Paul Johnston from the Scottish government says a review of the learner journey and student support is underway.

Paul Johnston from the Scottish government says the data on funding for higher education is being looked at and there are constructive discussions ongoing.

Mr Johnston says Audit Scotland sets out a sector that has been successful.

Image source, bbc

Conservative MSP Liz Smith asks when there will be an announcement of a widening access commissioner.

Paul Johnston from the Scottish government says ministers will make that announcement shortly.

Ms Smith says everyone agrees the success of the higher education sector is outstanding.

However, she says there are very serious concerns about funding in the future.

Ms Smith asks if there should be a review of higher education funding.

Universities Scotland director Alastair Sim says the auditor general report celebrates Scotland's higher education secretary.

Mr Sim says the report also pointed to major challenges ahead, with cuts to funding.

He says the auditor general says beyond 2014-15 there will be increasing costs and further cuts to funding.

The director of Universities Scotland says average funding per student has reduced.

Dr John Kemp the interim chief executive of the Scottish Funding Council says the report describes a successful university sector, with five universities in the top 200 in the world.

Dr Kemp says the performance in higher education shows a positive picture.

He says there are challenges.

Dr Kemp says there needs to make greater progress on the issue of getting Scottish domicile students from deprived backgrounds into universities.

Paul Johnston from the Scottish government says he has provided two written submissions to the committee concerning the Public Audit Report.

Mr Johnston says the government have invested more than £1b per year for the past five years for higher education.

He says the government is committed to ensuring accessing higher education is based on the ability to learn and not to pay.

He says the government recognise that thee are challenges but are working with key stakeholders to overcome them. 

Here is the audit of higher education in Scottish universities report., external

Image source, Audit Scotland

Image source, bbc

A report found it has become "more difficult" for Scots students to get a place at a university in Scotland.

Public spending watchdog Audit Scotland has carried out its first major review of higher education.

It detailed "significant challenges" facing the sector.

The report highlighted a 6% real terms cut in the amount of cash universities receive from the Scottish Funding Council (SFC).

The Scottish government provided more than £1.7bn to universities and students in 2014/15 but the study said institutions were "placing increasing reliance on generating income from fee-paying students from the rest of the UK and outside the European Union".

The Public Audit and Post Legislative Scrutiny Committee, external has a busy day ahead:

Firstly taking evidence evidence on the Audit Scotland report entitled "Audit of higher education in Scottish universities, external" from : 

• Paul Johnston and Stephen White from the Scottish Government
• Dr John Kemp the interim chief executive of the Scottish Funding Council; 
• Universities Scotland director Alastair Sim

Image source, SPL

The committee will then take evidence on the Audit Scotland report entitled the National Fraud Initiative in Scotland, external from:

• Russell Frith and Owen Smith from Audit Scotland.

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The committee will then consider the evidence received on higher education and take further evidence in private from

• Auditor General of Scotland Caroline Gardner 
• Antony Clark ,and Kirsty Whyte fromAudit Scotland

Finally the committee will consider the evidence received on the National Fraud Initiative  and take further evidence from Russell Frith and Owen Smith from Audit Scotland, also in private.

Good morning and welcome to Holyrood Live's coverage of the Scottish Parliament on 1 December 2016.

The Public Audit committee will take evidence on higher education and then the National Fraud Initiative.

After general questions, we will bring you extensive coverage of first minister’s questions.

Image source, Scottish Parliament/ BBC

The lunchtime member’s debate will see SNP MSP Ash Denham celebrate Small Business Saturday.

At 2.30pm there will be a ministerial statement on the age of criminal responsibility in Scotland.

The Scottish government will then lead a debate first recognising 16 Days of Action to End Violence Against Women and Girls.

Image source, UN Women