Public funds have been misused at Halesowen College, where "inappropriate payments to governors" were uncovered by funding chiefs.
The Further Education Funding Council said governors at the Midlands college were historically paid for their role, but that they had adopted an "inappropriate payment scheme", based on "excessive mileage and subsistence allowances".
"Governors were not advised against this practice," the FEFC said in a recent inspection report. "In approving a college budget allowing for these payments, the corporation authorised an inappropriate use of public funds."
College governance was said to be "weak", but other areas were praised. The FEFC confirmed that the college had "addressed" the weakness identified in an otherwise positive report.