An investigation has been launched at Gateshead College after an “unplanned deficit” worth millions of pounds was discovered in its accounts.
The deficit is understood to be around £6m and was discovered internally by the college.
In response to the discovery, Gateshead College has appointed a team of forensic accountants to investigate what caused the deficit.
The independent team will publish a full report on their investigation in January, which is also when Gateshead College is due to publish its annual accounts.
A spokesman for Gateshead College said: “There was an unplanned deficit in the last financial year and an investigation by a team of independent forensic accountants has been commissioned by the governors to establish the explanation for this; for obvious reasons we can’t comment further until that is concluded in January.
“As soon as the situation came to light, the college re-modelled its budget and produced a sound three-year financial plan on confirmed income which returns the college to a financial position showing a surplus by 2020/2021.
“These plans have been shared with the Education Skills Funding Agency (ESFA) and FE Commissioner who we are working closely with.
“This situation will not affect the education and training we offer our students and customers, which remains our paramount concern.
"We remain a college which is performing at the very highest level in relation to its students and it is our priority to make sure it continues to do so.
"Our student achievement rates are amongst the highest in the country and are sustained year on year, we have exceptional staff and student numbers are growing.”
Earlier this year, Gateshead College was named the best performing college in England for post 16 education and training.
The award was given to the college after ESFA figures showed the college had an overall achievement rate of 96% - more than 10% above the national rate for further education colleges.
