New rules after regulator finds ‘misconduct’ at uni

Probe: Charity watchdog highlights ‘lessons’ after pay-off to ex-principal

Charities in Scotland have been given new governance guidelines after a probe found “misconduct” by Aberdeen University chiefs.

A regulator highlighted “wider lessons” for the sector after concluding members of the university’s remuneration committee breached their duty to act in the best interests of the institution when they negotiated a pay-off to former principal Sir Ian Diamond.

The Office of the Scottish Charity Regulator (OSCR) issued five recommendations to Scotland’s charities as a result of the case, which was first revealed by The Press and Journal last year.

It decided, however, that it was “not necessary or proportionate” to take further action against Aberdeen University or its governors, due to the measures already under way to tighten its procedures, and because most of the committee members had left.

Esther Roberton, the university’s senior governor, said its court will meet shortly to “consider the implications of the OSCR report together with the wider review of governance already under way”.

North-east Labour MSP Lewis Macdonald said: “These are very serious findings. There was clearly misconduct in the management of the university and the use of public funds.

“There was a failure to give proper notice of meetings. There was a failure to record minutes and report to the university court. And there was a failure to record at all the outplacement support of over £50,000.”

Two investigations were launched last year into a six-figure payment to Sir Ian, who is now the national statistician, as head of the UK Statistics Authority.

A separate probe by the Scottish Funding Council (SFC) concluded in February that Aberdeen University effectively “incurred the cost of two principals” over a financial year as a result of an arrangement with Sir Ian, and that there had been “no documented assessment of value for money”.

The university was ordered to repay £119,000 of its grant and it recently revealed it had asked Sir Ian to reimburse the ancient institution.

The probes were launched after the university’s accounts for 2017-18 showed Sir Ian was being paid £601,000 – including a salary of £282,000, pension contributions of £30,000, and contractual notice period payment and related expenses of £289,000.

It later emerged a payment of £50,000 plus VAT was also made on his behalf by the university for “outplacement support”, which was not disclosed in the accounts.

Under an agreement between the remuneration committee and Sir Ian, the former principal only triggered his yearlong notice period and payment at the moment he was succeeded by George Boyne in 2018, despite announcing his retirement plans a year earlier.

OSCR said: “The level of care and diligence exercised by the charity trustees who were members of the remuneration committee in reaching a settlement with the principal fell below the required standard in a number of respects detailed in our report.

“We consider this amounted to a breach by the charity trustees who were members of the remuneration committee of their trustee duty to act in the interests of the charity.

“In terms of the 2005 Act, a breach of this duty is to be treated as misconduct in the administration of the university.”

“There was a failure to give proper notice of meetings”

PAYMENT: Former Aberdeen University principal Sir Ian Diamond has been asked to reimburse the institution