What mechanisms exist for providing accountability for the expenditure of public money in (a) colleges and (b) universities.

Core funding for colleges and universities is provided through the Scottish Funding Council (SFC). The Financial Memorandum between the SFC and the institutions it funds, requires the SFC to ensure that colleges and universities are making proper arrangements for governance, financial management and accounting. As Accountable Officer, the SFC Chief Executive is ultimately accountable to Parliament for ensuring that institutions are utilising the funds they have been given in a manner consistent with the purpose for which they were allocated.
In addition, the Further and Higher Education (Scotland) Act 2005 provides that the Auditor General for Scotland may inspect the accounts and accounting records of all institutions funded by the SFC.