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Audit report raises questions about Adam Smith College’s sponsorship of Anstruther Muster

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A row has broken out after a troubled Fife college used thousands of pounds of resources to support a sailing regatta.

Adam Smith College provided thousands of pounds of in kind sponsorship for the Anstruther Muster at a time when internal departments were having to tighten their belts.

Activities included designing posters and invitations for the event, providing media releases, cookery demonstrations, event staffing and organising funding bids.

Under-fire college principal Dr Craig Thomson and former board chairman Graham Johnstone are both members of the exclusive Anstruther Sailing Club which organises the annual muster.

Although there is no suggestion they broke any rules in offering the sponsorship, a question mark hangs over whether it brought any benefit to the college or its students.

A 2011 external auditors’ report states: ”The college may wish to consider how it determines what it sponsors in relation to perceived benefits.”

It adds: ”The college may want to consider sponsoring an event where a board member is associated with that organisation.”

Adam Smith College has defended the sponsorship, stating it was done in strict adherence with college procedures and that the auditors had confirmed there was no element of misappropriation of funds. A spokesman added students were also given experience in organising the event.

However, Kirkcaldy MSP David Torrance questioned whether it was a responsible use of public money.

”This is the principal who has complained about a lack of funding in the college sector,” he said. ”How can he justify this as being a responsible use of public money and resources from the college for an event which has nothing to do with the college or the training of students?

”You only have to look at the external auditors’ report to see this had no benefit to the college whatsoever.”

The revelation is the latest in a series of serious allegations which have rocked the college, which has campuses in Kirkcaldy, Glenrothes and Leven.

Claims of bullying, intimidation and mismanagement have led to an inquiry by the Scottish Funding Council.

Dr Thomson has taken voluntary leave while the investigation, including interviews with college’s 800 staff, is carried out.

Papers shown to The Courier indicate that college resources were used for Anstruther’s 2009 muster and for the 2010 event.

Extensive hours of staff time were also used in organising and marketing the two events and forms were drawn up in a bid to persuade businesses to offer sponsorship.

In return the firms were to be offered packages with benefits including places on non-vocational Adam Smith College courses, a college team building workshop and tickets to college drama productions.

Responding to the allegations, a spokesman for Adam Smith College said only ”limited sponsorship” had been given.

He said: ”The limited sponsorship by Adam Smith College of the community event in Anstruther was done in strict adherence with college procedures and, in addition, gave a cohort of hospitality and events management students the opportunity to have some real, hands-on experience away from the classroom.

”Furthermore, this funding has been fully reviewed by independent auditors and confirmed as involving no element of misappropriation.

”Any suggestion of any inappropriate action is completely false and without foundation.

”In addition, the college robustly rejects the allegation of misappropriation of college funds and any allegation of this nature will result in appropriate legal action being taken.”