University responds to Gillies Report

• Interim Principal and Vice-Chancellor stepping down
• Acting Chair of Court, and Chair of Finance & Policy, both bringing forward departures, with immediate effect

The University of Dundee has responded to the publication of the Gillies Report into the causes and contributing factors to the deterioration of the University’s financial position.

The Gillies Report was commissioned by the Scottish Funding Council. A full copy of the report is available.

Dr Ian Mair, Deputy Chair of Court, the University’s governing body, said, “I would like to thank Pamela Gillies and the team at BDO for conducting a very robust and rigorous investigation into the circumstances which led to the University’s current financial position. 

“It was clear when the University found itself in such a challenging situation that it was important that an in-depth and independent investigation took place to establish what happened so that we could learn lessons. We welcome today’s report and I am grateful to everyone who took the time to take part in this process. You can read the report in full here.

“It is evident from the report that there have been clear failings in financial monitoring, management and governance.

“While there were significant external factors, which have affected the higher education sector across the UK to varying degrees, the University’s response to these, and responsible management of our finances, has fallen well short of the standards that everyone should have expected.

“We have already seen significant change in our senior leadership, both on the Executive Group and Court.

“There will now be further change. Professor Shane O’Neill, Interim Principal and Vice-Chancellor has indicated to me that he believes that now is an appropriate time for him to step aside. There is a short statement below from Shane.

“The Court will be taking steps to make an interim appointment and we hope to do that in a matter of days.

“Tricia Bey, Acting Chair of Court, and Carla Rossini, Convenor of the Finance & Policy Committee, who were both due to step down from Court this summer, are now bringing this forward and leaving with immediate effect.

“There is much in this report on which we have to reflect. We will take a short time to digest the full implications of the report but we will act on the findings. 

“We need to work hard so that the University of Dundee regains its position as one of Scotland’s leading institutions, built with much stronger resilience and sustainability, and delivering not only for the city of Dundee and the surrounding region, but for Scotland and the world at large.

“I have been a Court member since August and was appointed Deputy Chair earlier this week.

“I am an alumnus of the University, with a great passion for this institution, and as Deputy Chair I will be looking to help the University in improving our financial reporting, management and governance and in navigating the University through the challenges that we have ahead.

“I understand that this has been an extremely stressful time for staff and students and I offer my sincere apologies for all of the anxiety and uncertainty this situation has caused. You have all deserved better, and we can only work to make that the case from here on.”

Professor Shane O’Neill said, “It is with a very heavy heart, having committed myself fully to the recovery process over these past months, that I have decided to step aside from my position and will be leaving the University. It is important that the University can move on and I recognise that this will be easier with new leadership.

“This has not been an easy decision for me. I have been here at Dundee for four years, initially as Senior Vice-Principal and then Deputy Vice-Chancellor and Provost. I have been very proud of the great things this University does for our city and for wider society, and of all our staff and students. 

“The University will continue to have a transformative impact for many years to come through education, research and enterprise.

“I have done all I can to set the University on a path to recovery, engaging with internal and external stakeholders to find the best way forward. I had hoped that we would be further along that path by now, and it will now be for others to steer that course into the future.

“I am truly sorry for the impact this financial crisis has had on many people, particularly our staff and students.”