"THE next few months will be critical" for Birmingham Metropolitan College according to the Skills Minister who ordered an investigation into the financial position of the cash-strapped college which has campuses in Brierley Hill and Stourbridge.

Minister of State for Skills, Nick Boles MP, sent in the FE Commissioner to assess the capability of BMet bosses to secure a sustainable financial recovery after the college, which made a raft of redundancies this year to cut costs, requested exceptional financial support from the Skills Funding Agency.

Following his visit - the Commissioner said the college executive "now appear to have regained control of the college's finances and the work that has been undertaken to develop their recovery plan is impressive".

But, in a report, the Commissioner said: "In light of the college's past performance and especially because of the lack of appropriate ownership by managers of financial matters, there must be a doubt as to whether changes that are being planned can be effected sufficiently quickly to have the desired effect.

"It is also quite clear that until early 2015 the standard of financial management and control in the college was not acceptable."

However, the Commissioner conceded "major improvements have been made" since the appointment of the new chief financial officer and Mr Boles said he was "encouraged to read the positive and determined approach that the current leadership and management team have brought" to tackle the problem.

But, in a letter to the college, Mr Boles added: "The next few months will be critical to determine whether or not financial recovery can be achieved."

Bmet principal Andrew Cleaves said plans were well underway to strengthen the college for the future and a review of its properties and premises was taking place.

He said he was "pleased the FE Commissioner has recognised all the hard work that has been done over the past few months" and he added: "We have a robust plan in place. Since spring this year we have significantly reduced expenditure and undertaken a successful voluntary severance programme which delivered targeted savings.

"We have recently sold off a campus in Castle Vale and will continue to make sensible decisions to improve our efficiency and to use our estate as effectively as possible."

He stressed the students remain the college's "absolute priority in these challenging times" and said he was pleased the Commissioner had noted how "quickly and positively" the college had responded after it was given a 'requires improvement' grading by Ofsted earlier this year.

He said improvements to the college's teaching and learning regime were being implemented and BMet was "facing its challenges with a detailed, realistic and costed plan in place" that would create long-term stability for students while developing the college's commercial capabilities and he added: "There is more to do, but the FE Commissioner’s report gives us confidence that we’re on the right road."

Stourbridge MP Margot James said: "Clearly BMet had financial difficulties and are working through solutions. I am encouraged that the independent inspector believes the management are on the right track towards sound financial management and improved quality. I am confident about the future of Stourbridge College although I do accept there may have to be further reductions in spending."

The college's financial woes were confirmed in April when it announced up to 250 posts were being axed to cut costs.

By July, and after shedding around 200 posts through voluntary redundancies, 50 compulsory job losses were announced.

The college blamed Government funding cuts for the job losses and at the same time defended the huge salaries paid to past principal (Dame Christine Braddock MBE) who received £271,000 for her final year in charge (2013/2014) while Andrew Cleaves pocketed £60,000 for his first three months in post, ahead of Dame Braddock’s departure, putting him "well on the way to being one of the top five highest paid college principals this year” according to satirical magazine Private Eye.