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Scotland's colleges face ``considerable financial pressures'' in the years ahead, according to a report by the public spending watchdog.
Audit Scotland found that the overall financial standing of the college sector was financially sound in 2010/11, though most colleges operate to relatively tight margins.
However as part of overall public sector spending reductions, Scottish Government revenue grant support to colleges is likely to fall from #545 million in 2011/12 to #471 million in 2014/15, a 24% reduction in real terms.
The report found that the sector may also face pressure from a range of increasing costs, while planned structural reforms of the college sector may create cost pressures.