ALTUS EDUCATION PARTNERSHIP
FINANCE & RESOURCES COMMITTEE
Minutes of the meeting held on 27 June 2017
Present:Rodger Owen (Chair)
Julian AppleyardExecutive Principal/CEO
In attendance:Joy BellSenior Vice Principal Resources
Alison BowyerFinance Officer
Ian James Clerk to the Trustees
APOLOGIES FOR ABSENCE
1Apologieswere received fromStephen Beckwith andMichael Gosling.
DECLARATION OF INTERESTS
2There were no declarations of interest.
APPOINTMENT OF CHAIR
3Resolvedthat Rodger Owen be appointed Chair of the Committee
RSFC MANAGEMENT ACCOUNTS
4The Committee received the Management Accounts for Rochdale Sixth Form College the period to 31 March 2017. In order to overcome a problem caused by differences in the monthly funding profiling between colleges and academies, the figures were presented for the period from 1 August 2016 to 31 August 2017; a 13 month period to reflect the change to the Trust’s accounting period.
5The accounts showed a satisfactory position and the Committee noted a significant variation in pay costs (-£152k) caused by the reversal of an accrual for holiday pay in the original budget which was no longer required due to the change of accounting period to 31 August. Non-pay would be overspent by £227k due to the addition of the 13th month and to a number of equipment and other renewals being charged to revenue totalling £93.5k.
TRUST BUDGET 1 APRIL TO 31 AUGUST 2017
6The budget for the College and the Trust for the period from academisation to the end of the first accounting period were presented and the Committee noted that there were some significant changes in the College budget from previous years in that the academy did not have to pay VAT and was not charged rates.
7The position for the College budget showed a surplus of around £500k due to the continuation of the formula protection without which the budget would show a breakeven position. The surplus would offset a deficit in the Trust budget for the initial period.
8Noting the further increase to the reserves to over £5m, the Committee discussed the need for a reserves strategy although it was acknowledged that this would need to tie in with the overall strategy for the Trust which was under development. It would further depend on when schools came forward to join the Trust and the extent of investment that was required depending on theirindividualcircumstances.
9Resolvedthat the Trust Board be RECOMMENDED to approve the budget for April to August 2017
TRUST MANAGEMENT ACCOUNTS
10The Committee received and noted the management accounts for the Trust for the two-month period April/May 2017.
DRAFT TWO YEAR FINANCIAL FORECAST AND 2017/18 BUDGET
11The Committee received the financial forecast for the College and the Trust for the next two years.
12The forecast was based on the following assumptions:
- academies would pay a 5% levy into the Trust
- a 1% pay increase
- 2% increase in non-pay costs
- funding of £4k per student
- recruitment at the same level as 2016/17
13For 2017/18, the forecast projected a surplus of £482k for the College although this included £434k of formula protection.
14The College would pay the 5% levy (£358k) into the Trust but, after the transfer of central costs from the College into the Trust, the budget showed a deficit of £180k. This would be returned to a breakeven position when a school of around 1400 pupils join the Trust. Consequently, the consolidated position for the Trust was a budget surplus of £302k.
15Resolvedthat the Boardbe RECOMMENDED to approve the financial forecast and the budget for 2017/18
16The Committee received the proposed Financial Regulations for the Trust which included the Fraud Policy and Whistleblowing Policy as appendices. These were largely the same as had been adopted in previous years by the College.
17Resolvedthat the Trust Board be RECOMMENDED to approve the Financial Regulations together with theFraud and Whistleblowing Policies
18The Senior Vice Principal submitted the Risk Register which was based on the original one for the College with additions reflecting the change to academy status. She would be reviewing the risk management process to ensure that it properly captured the risks to the Trust.
REVIEW OF INSURANCE
19The Committee received a summary of insurancesin place for the Trustnoting that insurance against acts of terrorism had now been included on the portfolio. The members asked for future reports to show the level of cover provided in addition to the premiums payable.
20The Committee received a report updating them on various issues concerning accommodation & facilities including a significant capital projectestimated to cost £700k which would increase the capacity of the ground floor and develop a more functional and integrated space for the College. The Committee discussed the improvements to be undertaken and were content to endorse the continuation of work on this project.
21In view of the recent tower block fire in London and the subsequent checking of cladding to buildings, the College was having any such cladding examined thoroughly to identify any fire risk.
22Other works included the conversion of the gym to accommodate the Trust team, painting of the corridors, new signage, ICT replacement and work to the car park and river bank to create additional spaces.
23The members commented on the following issues relating to the work of this Committee meeting:
- maintenance of financial stability of the College
- improved signage
- significant improvements to the ground floor which would greatly improve facilities for students
DATEOF NEXT MEETING
Tuesday, 28 November 2017 at 4.15pm