GLASGOW Caledonian University paid over £1m in one year on “occupancy” costs for a New York campus that has no degree students.

The flagship project, which shows no sign of being delivered, also incurred around £300,000 in salaries in the same year and nearly £107,000 in “advertising and promotion”.

Nick McKerrell, a trade union representative, has now called for a rethink on the project at a time of financial pressure in the higher education sector.

Led by principal Pamela Gillies, Glasgow Caley has so far made $8.75m (£5.6m) available for turning the idea of a Manhattan campus into a reality.

A new organisation, GCU NYC Inc, was set up as part of the process and is based at Wooster Street in the city's SoHo district.

The £5.6m is part of a loan from Glasgow Caley that can be drawn on subject to approval.

However, the ambitious project has failed to get off the ground.

The University first contacted the New York authorities in January 2013 about operating various programs and higher education services.

An application for degree authority was submitted twelve months later but no decision has yet been reached.

This means the campus has no degree students – despite the University entering into a long term year lease on the property.

Former First Minister Alex Salmond even “officially opened” the branch at a glitzy launch in April 2014.

The spotlight has now turned to how the £5.6m drawn down by GCU NYC Inc has been spent.

The “statement of expenses” in the US accounts reveal that over $3.6m – roughly £2.5m – was spent in 2013/2014.

This includes around £307,000 on “salaries and wages” and nearly £1.1m on “occupancy” costs, which includes rent and utilities bills.

Around £440,000 was spent on “other”, which the accounts make clear was for “consultancy”, “professional fees” and “other external fees”.

Nearly £140,000 was spent on “conferences, conventions and meetings” and around £107,000 on the advertising and promotion side.

A different section of the accounts classified some of the costs as “land, buildings and equipment”.

This shows that around £1.7m was spent on “leasehold improvements” and over £400,000 on “equipment”.

The Sunday Herald changed the dollar costs into sterling at today’s prices.

A spokesman for the New York State Education Department said there is no “established timeline” for pending applications, adding: “Our review process is designed to assure that when we take a recommendation to the Board of Regents to grant an entity degree authority, that entity meets all of the standards set forth in Commissioner’s Regulations. Our first priority is the program registration work that we do on behalf of existing New York State colleges and universities. As capacity and resources permit, we review and consider applications for new degree authority.”

McKerrell, the Convenor of GCU Combined Union Committee, said: "Such sums of money used in a speculative way on a very high risk project does not chime with the continual message we get from GCU management of cuts and austerity which members of staff in Glasgow have to deal with.

"With expenditure at this level it will be difficult to get any sort of financial return for the University. That is if we ever get a licence.

"The Scottish Government plan reforms of governance of Higher Education so things like this cannot happen in the future. But in the meantime there needs to be a look again at this Manhattan project and the significant costs attached to it.”

A University spokesperson said: “A significant number of University activities take place at GCU New York, including its development as a recruitment hub to encourage US students to study in Glasgow, Executive Education programmes (17), research income generation, public education and business development Town Hall events (15), which have attracted audiences of up to 200+ at each event, successful philanthropic events, hosting students from our Glasgow campus and alumni, educational events with the African Leadership Academy and the establishment of the Fair Fashion Centre, as well as promoting Scotland and Scots in the city of New York.”