PCL International Services

PCL International Services existed to provide learning and learning systems support to other parts of the world, with its income accruing in any one year from a limited number of projects, usually less than a dozen. The income fluctuated considerably and the unpredictability of the finances of International Services (as a result of varying economic conditions, political situations etc.) led to concerns about the possible impact on PCL's Block Grant income. Auditor's reports had also raised specific oncerns about the accounting procedures and the internal control of activities of the International Services in June 1980.

A Joint Advisory Committee (JAC) was formed in March 1982 by ILEA's Further and Higher Education Sub-Committee 'to consider and advise the Court on the affairs of PCL and to monitor the funding of the Polytechnic until it can return to a normal basis' as a direct result of a serious deficit in the Polytechnic's accounts which became apparent during 1981. The accounts for the academic year 1981 showed a deficit of £657,000. The JAC aimed to prepare a recovery plan which retrieved the Poly's financial position without endangering its teaching programme. The plan which aimed at making major savings on pt teaching and research staff, with further savings from unfilled teaching and non-teaching posts, and from premises, class materials and administration costs was put into effect in 1982/3 and by the end of that academic year, the whole of the deficit was eliminated. The JAC plan instituted changes to Polytechnic management and also looked at making changes to the Poly's non-block grant activities which had contributed to an overall deficit of £168,000 in 1980/1.

JAC recommended to ILEA and the PCL Court of Governors that a new company be formed alongside PCL to minimise any financial risk to PCL itself. The new company, PCL International was eventually registered on 12 December 1983 and International Services business was transferred from 31 March 1984.

In March 1985, the Court of Governors resolved to phase out all existing PCLI projects and not to commence any new projects until various administrative, accounting and reporting mechanisms had been put in place.