FINANCE & HUMAN RESOURCES COMMITTEE OF PALMER S COLLEGE Minutes of the Meeting held on Wednesday, 3 rd June 2015 Present: Clive Attwood Graeme Loveland Rajan Mohile Glenn Phillips Mark Vinall Vice Chairman Chairman Principal Also present: Janet Munns Clerk to the Corporation David Maynes Assistant Principal (Finance & Resources) 1. Apologies for Absence/Committee Membership Apologies for absence were received from Helen Aaron. 2. Declarations of Any Relevant Interests There were no declarations of any relevant interests. 3. Minutes of the Last Meeting held on 11 th March 2015 The minutes of the last meeting held on 11 th March 2015 were AGREED as a correct record and signed by the Chairman. 4. Matters Arising The Committee noted that Glenn Phillips had asked at the last meeting that a minute be recorded to show that he had requested information about the subjects for which staff were on capability procedures. He noted that this had been declined and the reason for declining to provide this information had been explained and accepted at the previous meeting. 5. Human Resources The Principal circulated a report prepared by the Director of HR. a) Relevant Employment Legislation Changes The Principal noted the areas from the recent Queen s speech which would affect the College b) Human Resources Issues The Principal noted the report on the College restructure and that the director level appointments had been made. He noted that some applications for voluntary redundancy had been turned down as the members of staff were required in their existing roles. The Principal noted that there had been only one compulsory redundancy and no teachers had been made compulsorily redundant. The support staff restructure was ongoing. The Principal noted that the support staff restructure could not start until the revised teaching restructure had been finalised as the support staff requirements were not known. The Principal noted that if the College under recruited for the next year there was the possibility that the College would have to look again at further restructure. 1
c) Performance Management The Principal noted that the cycle for 2015/16 was about to begin and reminded the Committee of the process. The Principal noted that there had been no changes to the number of teachers on capability since the last meeting. The Principal noted the SFCA pay progression reform which was underway and that the Professional Development Review paperwork would be amended to reflect these changes. d) Minutes of the Equality and Diversity Working Group The Principal presented the minutes of the meeting held on11th May. He noted that the PREVENT agenda required the College to undertake increasing work on preventing radicalisation of young people. He noted that the College had always worked to help students become contributing citizens. 6. Third Quarter Management Accounts The Assistant Principal (Finance & Resources) presented the third quarter management accounts. The Committee noted that the current end of year forecast was for a surplus of 1,000 and was a slight improvement from the 2 nd quarter forecast which was for a 15,000 deficit. The Assistant Principal noted that the forecast costs for staffing had decreased and stated that he believed that this forecast was more realistic for the year. He advised that the income for catering had increased slightly as a result of increased income and greater control of supplies. The forecast now was for the catering income to be 19,000 below target rather than 29,000. The Assistant Principal noted the position with regard to the sports centre operation and commented that he was not clear at this stage whether the situation was improving or whether this was a seasonal variation. The Principal noted the impact of the appointment of the interim Director of Teaching and Learning. The Assistant Principal confirmed that the current forecast was for a break even position at year end. He noted the position with regard to the balance sheet and cash flow from the report. The Principal noted that the EFA had written to the College to confirm that the health check position continued to be good. He noted that the College s position was not a comfortable one with regard to reducing funding pressures but the finances of the College continued to be well managed. The Committee thanked the Assistant Principal for his work and received the third quarter management accounts 7. Provisional Funding Allocation 2015/16 The Assistant Principal (Finance & Resources) presented a report on the provisional funding allocation for 2015/16 and noted that this had now been confirmed by the EFA. He noted that the reduction in student numbers had 2
resulted in a drop in funding to 8.9 million and included an amount for formula protection which would cease for 2016/17. The Assistant Principal noted that the funding statement for 19+ students from the SFA was for only 5,520 which was for two students. The Committee asked what the reduction in staffing costs would be for the next year following the reorganisation. The Assistant Principal noted that the new structure resulted in a staffing cost reduction of 400,000. He noted that some of the staff will receive salary protection for the following year. He advised that savings to meet the difference between the staffing cost reduction and the reduction in funding would be sought from non staffing costs 8. Revenue and Capital Budgets and Draft Three Year Financial Plan The Assistant Principal (Finance & Resources) presented the draft revenue and capital budgets and Three Year Financial Plan and noted that this was draft and would be revisited at the Corporation meetings. He noted that normally at this meeting the College would normally be presenting the budget return but the template was only received on the preceding Monday and it had not been possible to complete it in time for this meeting. The Assistant Principal (Finance & Resources) noted that the forecast outturn for 14/15 were the same figures as the third quarter management accounts. He noted those areas where changes to the figures in the proposed budget and financial forecasts. He outlined the assumptions made in producing the budgets and noted that there was a need to make savings in the support staff area but these were not yet known. He noted that the reduction in student numbers would lead to a reduction in some costs. The Proposed budget at this point set a budget with an end of year surplus of 5,000 and the Assistant Principal noted that the forthcoming year would be difficult and 2016/17 with the loss of formula protection would be even more difficult. He noted that the budget was based on lower student numbers and if the College were able to stop the reducing student numbers or increase the number of enrolments this would change the position. The Principal noted that the College would, on Palmers Day One, know the number of continuing students and would have a good indication of the number of students who would enrol in the first year. The Committee asked why the costs for water had not increased on the previous year. The Assistant Principal noted that this was a figure which might need to be revised. The Committee noted that if redundancy costs increased this might be an issue as the resultant savings might not affect the College until after the end of the year. The Principal and Assistant Principal confirmed that this was a very tight budget and there would be issues in managing the budget. The Principal noted that the College was taking proactive management decisions to meet the challenges in funding. The Assistant Principal noted that he had assumed in the production of the budgets that there would be no changes to the funding formula and the new 3
government had made no commitment to protecting funding for 16+ education. The Committee asked what the ceiling would be for recruitment given the restructuring. The Principal noted that the accommodation was available to accommodate 2200 students and if necessary short term agency staff could be used to teach additional students until recruitment of new staff could take place. The Committee raised possible options for additional services, such as private tuition provision, which could be marketed and whether students from the other side of the river could be recruited. This would be discussed at SMT. Action: Principal/SMT 9. Summer Works Proposals The Assistant Principal (Finance & Resources) presented the summer works proposals and noted the items to be funded by the Salix loan and noted the proposed works to the perimeter fence west. The Corporation Chairman noted the issue of a lack of a lease with the Trust concerned him in the light of expenditure on maintenance of the fabric of the buildings. The Assistant Principal noted that quotes for the work to the fence had come in at 14,000 for a replacement of the fence but work to repair the fence for a year would be a few hundred pounds. A decision would be made on an affordability basis. The Committee received the report. 10. Strategic Plan The Principal presented the draft three year strategic plan and drew the Committee s attention to the proposed amendments in the vision statement and the second key strategic priority to ensure that it included the work undertaken to improve key skills, English maths and employability skills. The Principal invited comments from the Committee on the strategic plan. 11. Salary Increase for Staff The Principal noted that the timing of this item always predated the negotiations with the associations. He outlined the process for the negotiations and noted that the College had included an increase in the salary costs for the new budget and the College had always accepted the outcome of the national negotiation. The Principal asked that the Corporation be asked to approve a staff increase in line with national negotiations up to a limit of 1%. Any nationally agreed increase above 1% would be taken back to the Corporation for consideration. The Committee AGREED to recommend the proposed salary increase to the Corporation for approval. 12. Fee Policy The Assistant Principal (Finance and Resources) presented the draft Fee Policy and noted the increase to the fee for transport from 480 to 490 per year as the costs were anticipated to increase. The Committee asked how the amenities fund was collected as it was voluntary. The Assistant Principal noted that as it was voluntary students could not be compelled to pay this and not all students did pay this amount. The Committee 4
asked what percentage of this income was collected. The Assistant Principal will identify this figure. The Committee asked that the accounts for the Amenities Fund be produced and presented to them. The Assistant Principal noted that the balance is included in the accounts under sundry creditors/accruals and agreed to produce this for the July Corporation meeting. Action: Assistant Principal The Committee AGREED to recommend the Fee Policy to the Corporation for approval. 13. Standing Items a) Management of Funds The Assistant Principal (Finance & Resources) reported that there were currently no funds on deposit and there was nothing to report. b) Student Outturns Report The Principal presented the student outturns report and noted the position with respect of 2013/14 and noted the position in the current year for retention of 93% and an end of year number of students of 1800. The Principal noted that the College this year had lost more students to apprenticeships which was a positive reason for students to leave. 14. Committee Work Plans The Clerk presented the review of the 2014/15 work plan and noted that all items had been achieved apart from the tendering process for insurance and cleaning contracts which had been undertaken the previous year and were not required this year. 15. Terms of Reference The Committee noted the decision by the Corporation to discontinue nonstatutory committees of the Corporation and that there was therefore no need to review the Committee s terms of reference as this would be the last meeting of the Committee. The Corporation Chairman noted that he would use the Committee terms of reference to identify the terms of reference for the Responsible Corporation member. 16. Any Other Urgent Business The Principal stated that it was proposed that all staff and students from September should be required to wear at all times visible ID for safeguarding reasons. He asked for the support of the Committee for this proposal. The Committee AGREED that this proposal should be implemented. The Committee noted Brian Little s resignation from the Corporation since the last meeting. The Corporation Chairman noted a letter that he had received from the Funding Agency and noted that a concern had been identified in relation to Audit with respect to a potential default on the bank covenants if the College were in a deficit position for three consecutive years. The Committee noted that this was monitored at the Audit & Risk Committee. 5
The Chairman thanked the Committee for their work over the years and was thanked in return by the Committee for his Chairmanship. 17. Date of Future Meetings The decision of the Corporation to discontinue non-statutory committees meant that there would be no more meetings of the Committee. Signed: Position: Date: 6