on which it was roughly breaking even, but accumulated loan debts of £8.4 million and an overdraft facility of £2 million. By early 2014, the overdraft had risen to £2.75 million. The college was given a Financial health notice of concern by the SFA following poor financial results reported for the year to July 2012, requiring it to submit monthly reports for two years, but succeeded in meeting its financial targets in 2012/13 and 2013/14. In March 2014 the governors' finance committee reported: "having got through the Ofsted it was suggested that the College put in dedication and focus on finances to turn the College around financially." In April 2015, the college put in place plans for further teaching staff cuts of £800,000 or 20,000 hours of teaching time, amounting to some 18% of the total. College management reported that this reduced teaching time in line with the industry average, at a time when funding for FE is falling nationally, and further funding cuts were likely. The college aimed to increase class sizes, currently 'very low', and to timetable more self-directed study. It was noted that despite general cost reductions, admin staff costs had risen 10%. The college aimed to improve its profitability by subcontracting operations and had been downsizing while moving to computer equipment leasing would allow more headroom on the college's overdraft. Settlement agreements would continue to be made with departing staff where that was considered to be in the best interest of the college. The UK National Audit Office reported that almost half of all further education colleges were in deficit in 2013-14. In 2012/13 the college employed 322 full-time equivalent staff, of whom 186 were teaching staff. Many staff are part-time so the total number of employees is considerably greater. In 2011 the college formed a wholly owned limited company, Plaza Trading Hastings Ltd, which operates commercial ventures on the site, including the Costa Coffee franchise and the Art Shop. Ofsted Inspection In 2008 Hastings College was inspected and found to have 9,514 students aged over 18, 1,916 in the age group 16-18 full-time and 464 part-time. Grading was on a four-point scale, 1-outstanding, 2-good, 3- satisfactory, 4-inadequate. Overall grades by area were; Effectiveness of provision 3, Capacity to improve 2, Achievement and standards 3, Quality of provision 3, leadership and management 2, equality of opportunity 3. Subject areas were graded individually; Engineering 2 (222 students),