The head of the London School of Economics says a report criticising its acceptance of a £1.5 million donation from Libya showed "failings in our governance and management".
Colonel Muammar Gaddafi's most high-profile son, Saif al-Islam, studied at the school from 2002 until 2008, gaining a doctorate.
In 2009 the LSE received £300,000 from the Gaddafi International Charity and Development Foundation (GICDF), prompting protests from students and widespread criticism.
The payment was the first of a proposed five donations totalling £1.5 million, but the others were never received.
In March this year Sir Howard Davies resigned from his post of director at the LSE over the university's links to the Gaddafi family.
A comprehensive report by Lord Woolf into the scandal was published today, and found "the links which the LSE developed with Libya have clearly brought to light shortcomings in communication and governance within the LSE".
Professor Judith Rees, director of LSE, said: "It's a fairly forensic exercise.
"Obviously it's very hard hitting, it's very detailed, and it does show that there were clear mistakes made, and failings in our governance and management.
"It's sad, and certainly very painful reading for someone like me who has spent most of their career at the school."