Minutes of a Meeting of the Corporation held on Thursday, 16 July 2015 in the Boardroom of the College at 5.30 pm.

Transcription

1 Minutes of a Meeting of the Corporation held on Thursday, 16 July 2015 in the Boardroom of the College at 5.30 pm. Present: Mark Stanger (Chair); Robin Talbot (Vice Chair); Les Agnew; Norma Boyes; James Burton; Sarah Graham; Joe Holliday; Phil Jardine; Claire Madden; Mike Muir (from Minute No 58/15); Chris Nattress (Principal); Angela O Connell; Andrew Oldham; Mike Priestley Apologies: Mark Telford Jim Busher, Deputy Principal Curriculum and Quality (Pippa Wordsworth s resignation had been received prior to the meeting). Also present: Karen Wilson, Deputy Principal, Finance and Corporate Services, and Jane Murray, Clerk 55/15 Minutes Resolved that the minutes of the meeting of the Corporation held on Thursday, 11 th June 2015 be agreed and signed as a correct record. 56/15 Declarations of Interest Minute No 62 /15: Dr Robin Talbot and Les Agnew in National College for Nuclear (NCfN) discussions. It was felt that this was an update item and that there were no decisions being taken that would lead to any conflict of interest in this occasion. 57/15 Agenda Management An addendum was noted (the sub-contracting policy), but no changes to the agenda were envisaged. 58/15 Boardroom Briefing CIF Framework from September 2015 The Principal took the Board through the main changes to the new inspection framework being introduced for the new academic year. This included: Differences to the length and breadth of the inspection. Good providers could expect shorter inspections of two days with 1-2 inspectors, which would focus on outcomes and impact of leaders in key areas of provision.

2 The ability to scale up or down. If findings suggested inadequate, the inspection team would instigate a full review. Outstanding provision would not be inspected unless major failings had been identified from desktop monitoring. Key judgements would be made on: The effectiveness of Leadership and Management (particularly around performance and robust performance management); Quality of teaching, learning and assessment (although there would no longer be graded observations, but an increased emphasis on outcomes); Outcomes for children and learners (the effectiveness of safeguarding will be clearly stated); Personal development; behaviour and welfare (a new judgement and one on which it was felt that the College would score highly). It was noted in particular that in judging outcomes, inspectors will give most weight to learners progress (value-added) and outcomes/progression. Changes to the inspection will have an impact on success rates with judgements being made on: study programmes; Apprenticeships; Adult learning programmes; Traineeships; Provision for learners with high needs; Full-time provision for year olds. Asked for Colleges responses to the pilots, it had been generally felt that the new process had been an improvement. 59/15 Confidential Session Resolved to move into confidential session under standing orders 53d; 53g and 53h, information in advance of publication; affairs of 3 rd party. Items within those discussions not deemed to be confidential are publicly minuted by exception.

3 60/15 Strategic Update Noting the outcome of the emergency budget, there had been few surprises but there continued to be some unknowns around the 1bn funding reductions previously announced for the DfE and BIS. As the school s under 16 budget was ring-fenced, then it could be anticipated that 16+ education would be hit. Governors also noted that with the ring-fencing of the MoD budget, that there were fewer areas of government spending left to target. Some of the announcements made, which would have an impact on College business, included the abolition of maintenance grants in favour of student loans and the levy on large firms in order to pay for apprenticeships. Pay negotiations - Confidential Strategic planning Without wishing to overplay the situation, the Principal did share with the Board his personal view that the FE sector was about to undergo fundamental and significant change, brought about by reduced funding, increased apprenticeships, with employer focus bringing about a change in the type of provider. Government had made it clear that the current structure did not deliver their aspirations for Skills UK and it was anticipated that there would be consolidation under an area review model, with the potential for devolution under the 39 LEPs. Strategic planning was currently focusing on this and it was felt that the College was in a good position, with a good strong turnover, continued surplus and outstanding financial health. The challenge would be to remain ahead of the field and governors could expect some strategic planning exercises in the autumn term. National College for Nuclear The business plan had been submitted to the Department of Business, Innovation and Skills on time. More would be discussed during the following agenda item. Beccal Confidential

4 CoNE It was felt that some progress was being made to move from vision to implementation, with Gen II, UoC, UCLan, University of Manchester, Sellafield, Energus and the Western Heads and Lakes College being represented on the education and skills sub group. Finally, the Principal drew the Board s attention to recent success in the regional skills event which had seen four welders go through to the national finals in November, a joiner, an electrician and a graphic designer. Resolution confidential (pay negotiations in advance of publication). 61/15 National College for Nuclear As previously said, the National College for Nuclear business plan had now been submitted and Governors were given oversight of progress in advance of the summer recess. Following the submission, there would be a panel interview with the Department for Business, Innovation and Skills on August 6 th, during which any concerns would be addressed. The Articles of Association had been approved in their current form and governors would be advised of any further changes. There was still work to be done on the Memorandum of Agreement. The Board were also asked to note the intention to use a national framework agreement for procurement for the capital build (as provided for in financial regulations) to allow oversight of the northern and southern hubs. Asked about funding, various options in support of start-up revenue funding were being explored with the Department for Business, Innovation and Skills. Governors received and approved a Letter of Intent that had been submitted in draft form, but which really just set out the facilities the college could offer as a service provider and the value of recent investments in the College s estate. Resolved 1) That the letter of intent be approved. 2) That the use of a framework agreement for procurement be noted. 3) That the standing orders be waived and that decision-making framework outlined in the report be approved.

5 62/15 Contract Management/Sub-contracting In confidence This item was held in confidential session owing to discussion of 3 rd Party interests. General discussion included: The strategy of reducing sub-contracting values overall, but not to exclude it completely as it allowed some flexibility. The full contract value proposed was a reduction of over 50% on the position two years ago. Assurance continued to be received that due diligence, timely audits and follow up action were designed to limit risks. Governors were asked to approve the sub-contracting values for individual companies and a sub-contracting policy. 63/15 Confidential Minutes Resolved that the minutes of the meeting held in confidential session on 21 June 2015 be approved and signed as a correct record. The meeting re-opened 64/15 Financial Plan The Deputy Principal Finance and Corporate Services presented the financial plan, which remained unchanged following the budget. The plan reflected the financial distress of the sector and while meeting most objectives, including outstanding financial health, it did not achieve aspirations for turnover of 13.5m, which was noted. The plan took account of increases in pensions and national insurance. Although this plan was run over a two-year period and did not take into account any funding from the National College for Nuclear, a 10-year projection had been run and would suggest a solid base for moving forward. Governors looked forward to considering longer-term financial planning as part of strategic planning sessions. It was noted that the plan gave every appearance of a steady and prudent college. Resolved 1) That the financial plan for be approved.

6 2) That the outstanding grading for financial health be approved. 65/15 3G Pitch Update Receiving a progress report, Governors noted that the groundworks had started at Easter to make use of the UTC s 78,000 contribution. The groundworks had been more complex than envisaged and the College s own (previously approved) 150,000 contribution had been used as part of this process. The Sport England grant of 500,000 had been announced and was subject to the College approval of a grant deed. Processes were continuing to secure 98,000 from the Football Association and 75,000 from the Rugby Football Union, but confirmation had been received that the money was allocated, but that their individual processes were continuing (of which evidence was provided at Appendix 2). The funding conditions for the Sport England deed stipulated a requirement for match funding and the Board was asked to note that the risk of this not being achieved was considered to be low. However, the Deputy Principal Finance and Corporate Services advised the Board that on initial first impressions of the tenders received the previous day (these would be subject to a full evaluation by the tender management company specified by the funding providers) there was likely to be a shortfall in the region of 150,000 and given the nature of the project, limitations on the ability to value engineer the project and reduce costs. There was some urgency to start work in the summer, to reduce disruption to students and to avoid further increases in construction costs and ground maintenance. This being the case, Governors were asked to underwrite the anticipated shortfall on the understanding that all the funding providers be approached to help find a solution, which might include further funding providers. A majority of Governors were in agreement. Some concern was expressed that the revenue business plan for the case was not visible to Governors, although it was accepted that this formed part of the funding application. The business case did anticipate the potential for further staff to maintain the pitch, however the anticipated demand was healthy and the College had already received interest in bookings. It was agreed to arrange for the Governor to have sight of the revenue business plan. Resolved 1) That the Sport England funding application be approved, and that the grant deed for 500,000 be approved, signed and executed, subject to any further amendments from the date of this meeting (16 July 2015) being

7 delegated for approval to the Chair of the Corporation (or the Vice Chair in his absence). 2) That the funding application of at least 98,000 to the Football Association be approved for the 3G pitch. 3) That the funding application of at least 75,000 to the Rugby Football Union be approved for the 3G pitch. 4) That authority to approve and sign any deed or conditions associated with the Rugby Football Union funding or the Football Association Funding, or any other funding provider, be delegated to the Chair and Vice Chair or (in either s absence) the Chair or Vice Chair plus two governors. 5) That the College approves further funding of up to 150,000, subject to strenuous efforts being made to fund the shortfall from partner organisations or new funding partners. (Governor Mike Muir was not in favour). 66/15 Management Accounts The Deputy Principal Finance and Corporate Services acknowledged some concern about cash forecasting. She was able to reassure governors that cash was healthy and assured governors that a review of cash forecasting would take place during the summer. She was pleased to report a more positive outturn than had been predicted inyear. Although non pay expenditure was ahead of profile, 39,000 was directly related to income and age grants totalling 225,000, which were repaid as wage subsidy. The Chair noted that a great deal of work had gone into financial management this year and felt that, on the face of this set of accounts, it had been a job well done. James Burton left the meeting 67/15 Governance Chair s Update: In addition to some house-keeping matters, the Chair had attended the Awards Ceremony and felt that the student speaker had been outstanding. He also noted the number of employers who had sponsored the awards and felt that they had gained a good impression of the college through some of the personal journeys of our students, which had been highlighted. He also attended the Stay West event, which was a project assisting students with disabilities into employment, which had been equally well-received.

8 A governor also noted feedback he had received from a colleague involved in the friends of Children from Chernobyl. The children had spent a fantastic day at the college which had been thoroughly enjoyed by all. Self-Assessment: Andrew Oldham and Michael Priestley had attended the peer review stage of self-assessment for the business support units. Both agreed that it was a rigorous process, good practice although the fact that governors were around the table on this occasion changed the dynamic and it felt more like a presentation to Governors. There had been a few niggly issues of process, but it was felt that there had been positive challenge and good behaviours in receiving and accepting challenge. It was felt that in some instances, achievements had been undersold, for example ALS (additional learning support) it was felt more could be made within Student Services of the outstanding provision.. It was noted that all departments had self-assessed at outstanding with the exception of marketing and HR. Mark Stanger and Claire Madden had attended the curriculum support peer review session. They felt that it was the 3 rd /4 th round of analysis and strengths and weaknesses. If there had been one theme which had come out, it was that some work needed to needed to be done on assessments. Governors accepted the recommendation of the audit committee to approve the internal audit strategy. Noting the inclusion of KPIs in the audit plan, it was asked whether benchmarking material could be included in the scope. Governors had been previously advised of the Code of Good Governance of English Colleges and accepted the recommendation of the Search and Governance Committee to adopt the code for implementation in and against which they would report for the financial statements. Committee memberships and Governors appointment were approved for and Michael Priestley was added as Prevent governor. In order to provide assurance to governors, a financial memorandum checklist had been introduced to assist with compliance, which governors received and noted. Governors noted the latest FE Commissioner s letter and the proposal to consider this during strategic planning, but once the outcome of the NCfN application was known, which had a the potential for a major impact on the College s business. The annual review of confidential minutes was approved. Resolved-

9 1) That the Board diary for be approved. 2) That the audit strategy for be approved. 3) That the Code of Good Governance for English Colleges be approved for implementation in and reported against in the financial statements for ) That the Committee memberships and governor link appointments be approved to include Mike Priestley as Prevent Governor. 5) That the minutes proposed for opening to the public in the accompanying appendix be approved. 68/15 Confidential Session Resolved to move into confidential session under owing to the confidential affairs of an individual (Standing Order 53c) The Principal, Staff governors and staff withdrew 69/15 Performance Reviews confidential The performance review of the Principal was received and noted. The Clerk withdrew The performance review of the Clerk was received and noted. The meeting closed at 1945h.

10 Min No Issue C/Date Completed Notes Actions Arising (not already on the workplan) 07/15 Risk Register consideration to be given to issues reflecting student experience 12/15 Receive English and Maths Action plan 12/15 Monitor; Construction work plan;l2 Hairdressing 11/06/15 Next scheduled monitoring 16/04/15 Tabled April Meeting May Training session. Next update with T & L report in September 11/06/15 Curriculum Update 13/15 Study Programmes Update 12/04/15 Received at April Meeting 09/15 NCfN: Business Case & Articles 32/15 Cash Flow forecasting investigation 50/15 Apprenticeship provision should be fully reflected in curriculum reports 65/15 Investment Appraisal for 3G pitch send to Governor and update provided for Sep meeting 18/05/15 Articles tabled Business case Articles update /07/15 Further revisions needed over summer period Reformatted for academic year.