Dundee University has addressed a potentially serious financial situation, court papers have revealed.
Its governing body was told the institution was facing potential outside intervention to tackle a “worst case scenario” £4.5 million deficit in its 2014-15 budget.
That was an improvement on an initial estimated deficit of £8m, but “not enough to deliver a break-even position”.
Principal Professor Pete Downes said it “performed worse than benchmark competitors” on staff costs and income, and was “frequently placed near the bottom of financial league tables” for similar institutions.
Members agreed it needed to “act quickly and decisively to address the position”.
The minutes from the April meeting said: “Members highlighted the prospect that any failure to address these issues might lead to the university losing the right to self-determination and being forced to accept courses of action imposed upon it by external parties such as the Funding Council.”
The university said the financial outlook had since improved, though a deficit is still expected.
It said it has encouraged early responses to the staff severance scheme to cut up to 120 posts and has made other efficiency savings.