Tertiary Education Commission audit reveals story behind now-defunct FutureCOL

FutureCOL chief executive Bharat Guha blamed the institute's collapse on a fall in international student numbers and insufficient funding. Photo / File

Over-claimed funding, mismanaged students and poor record-keeping are among the concerns revealed in an audit on a closed tertiary education provider in Hastings.

The College of Future Learning New Zealand (FutureCOL) operated for 25 years before it into voluntary liquidation earlier this month.

The institute's collapse affected 36 students, both domestic and international, and was blamed on a fall in international student numbers and insufficient funding by its chief executive, Bharat Guha.

Guha said the decision was made because of a shortage of full fee-paying international students after changes in immigration policies, as well as a drop in domestic students because of the availability of work in Hawke's Bay.

However, an audit, released under the Official Information Act, undertaken by the Tertiary Education Commission (TEC) in late 2016, raised key concerns about the institute, one being suspicions of tens of thousands of dollars in over-claimed funding.

The commission funded qualifications offered by FutureCOL and undertook the audit to ensure the institute was meeting its funding conditions.

FutureCOL received $1.2 million of funding in 2017, $1.68 million in 2016 and $1.63 million in 2015.

Earlier this month, TEC chief executive Tim Fowler said FutureCOL had asked it to revoke its 2018 funding, but added payments to the organisation had ceased before this.

Among the concerns raised in the audit was the quality of recordkeeping and integrity of historical student data reported by the institute from 2014 to 2016.

In one instance, FutureCOL claimed funding for a student in 2015 who attended just five days, four of which were in the first week, with no achievements.

Notably there was allegedly "no evidence" of domestic status for two students in 2016 and no enrolment form or evidence of domestic status for another student between 2014 and 2015.

The audit highlighted inconsistencies across the enrolment process, stating students who stopped attending the institute had not been withdrawn in a timely manner.

One focus area of the audit related to funding claimed by FutureCOL for staff undertaking professional development.

It found $27,000 had been incorrectly claimed for five staff in 2013.

Guha, a Singapore-born University of Otago graduate, was once an international student himself and expressed an interest in growing FutureCOL's roll with foreign and domestic students.

He replaced long-time chief executive Liddy Trotter in April 2016 after being shoulder-tapped for the job.

He entered the role after holding positions at the Southern Institute of Technology in Invercargill, including chief financial officer and corporate deputy chief executive.

Guha is now incoming chief executive officer of Malvern International, an education group based in Singapore.

Liddy said she hadn't seen the audit report so wasn't in a position to comment on it.

Hawke's Bay Today was unable to reach Guha for comment.