The Scottish Further Education Funding Council has circulated a damning report on Moray College.
Allegations of misconduct against Moray's then principal, Robert Chalmers, were sent to the National Audit Office in 1998, over a year before the SFEFC and the audit committee were set up.
SFEFC chief executive John Sizer found Dr Chalmers guilty of accepting a backdated increase in mileage rates to compensate him for tax liability for a college car.
Professor Sizer has drawn up an action plan and praised the effort Moray had made and was making to implement it.
The Scottish Parliament's audit committee has raised the prospect of allowing the SFEFC to intervene in cases of poor governance.