the
COURT
MINUTES of the fifth meeting of the 2004/2005 academic year held on
Monday, 4th July, 2005, in the Council Room, Queen Anne Court, Maritime Greenwich Campus, commencing at 5.30 pm.
Present: Mrs A-M Nelson (in the Chair)
Mr S AtkinsonMr R J Baglin / Mr J R H Loudon
Sir Callum McCarthy
Baroness Blackstone / Mrs M McKinlay
Ms F Chandia / Dr A S Pugh
Dr L Garner / Mr M Sharp
Mr J C Gould / Mr R Spinney
Prof L Johnson
In attendance:
Mrs T A Brighton (Minutes Secretary)
Mrs L Cording (University Secretary)
Mr R V T Daly (Director of Finance)
Prof D Wills (Pro Vice-Chancellor (Resources))
Apologies:
Mr J E Brathwaite
Mr S Etherington
Mr D Heathcote
Dr D Quarmby
Lady Paulette Tomlinson
04/65 DECLARATION OF CONFLICT OF INTERESTS
There were no declarations of conflicts of interest.
04/66 ITEM FROM THE CHAIR (THANKS AND WELCOME)
66.1 The Chair noted that the terms of office of two staff officers were due to expire at the end of August. On behalf of Members she thanked Professor Les Johnson for his contribution to the work of the Court, and because Denis Heathcote was unavoidably absent for his last meeting, requested that the Secretary and Registrar write to him similarly to convey the Court’s appreciation of his efforts.
66.2 On behalf of the Court, the Chair congratulated Callum McCarthy on his recent knighthood bestowed at the 2005 Birthday Honours.
66.3 The Chair welcomed Ron Spinney to his first meeting of Court.
04/67 MEMBERSHIP (CRT 04/69)
67.1 The Secretary and Registrar reported that the Privy Council was currently considering a request from the Middlesex University that the rules governing the composition of Governing Bodies be changed so that the requirement for Co-Opted members would be abolished. In anticipation of the Privy Council’s consent to these changes, it was proposed that revisions to the University’s Articles of Association would be made during the course of the next academic session for consideration by Court prior to submission to the Privy Council.
The Court resolved that:
67.2 Tricia Meers, following an election by and from Teaching and Research members of Academic Council, be appointed to the Court under Article 7(2)(b) for the period 1 September 2005 to 31 August 2008.
67.3 following her re-election as President of the Students’ Union, Farrah Chandia be appointed to the Court under Article 7(2)(c) for the period 1 August 2005 to 31 July 2006.
67.4 on the recommendation of the Nominations Committee and following a ballot of those Governors appointed under Article 7(2)(a), Jim Brathwaite, John Gould, Mary McKinlay and Paulette Tomlinson be re-appointed as Governors under Article 7(2)(a) for the period 1 September 2005 to 31 August 2008.
67.5 following ballots of teaching and research staff and support staff, and a subsequent vote by non-Co-opted Governors, that Les Garner and Maureen Branch-Davis respectively be appointed under Article 7(2)(d) for the period 1 September 2005 to 31 August 2008.
67.6 It was noted that, despite a full complement of Members, the search for appropriate candidates as prospective Governors would continue, and Members were invited to pass details of any suitable contacts to the Secretary and Registrar.
04/68 MINUTES OF PREVIOUS MEETING (CRT 04/70)
The minutes of the meeting held on 14 March 2005 were agreed to be a true record and signed.
04/69 MATTERS ARISING
There were no Matters Arising.
04/70 STRATEGY COMMITTEE (CRT 04/71)
The Chairman of the Strategy Committee introduced the report to Court detailing the following principal items of significance arising from the meeting of the Committee held on 18th April 2005.
70.1 Planning Cycle
The Chairman of the Committee reported that the first meeting of the Committee had concentrated on seeking to improve the Court’s contribution to the corporate planning processes and its ability to monitor effectively, delivery of the strategies, and consequently the University’s overall performance. In view of the healthier position of the University’s finances, it was now possible for Court Members to focus more on the future strategies and direction of the University. A new Corporate Plan covering the period 2006-2011 was being developed and the Court was pleased to note that formation of the Plan included a consultative process with staff. A final draft would be ready for consideration by Court at its March 2006 meeting. A second meeting of the Strategy Committee was being planned for October 2005 which would provide an opportunity to review progress.
70.2 Key Performance Indicators
The Court noted that Key Performance Indicators which related to the strategic objectives in the new Corporate Plan would need to be identified. At its next meeting, Committee Members would be considering a long list of proposed key performance indicators and critical success factors. These key performance indicators would relate to the strategic objectives in the new Corporate Plan. They and were therefore likely to be different from those referred to under Court minute 04/78, whose purpose was to allow the Court to benchmark the performance of the University against that of other, similar, universities.
04/71 STAFFING COMMITTEE (CRT 04/72)
The Chairman of the Staffing Committee introduced the report to Court dealing with principal items of significant arising from the meeting held on 16th May 2005. The following issues were noted:
71.1 Framework of the Agreement for the Modernisation of Pay Structure
The Chairman of the Committee reported that Members continued to keep a close watch on progress towards the introduction of the framework for the modernisation of the pay structure. The Committee was satisfied that good progress was being made and that the target date of August 2006 for implementation would be achieved.
71.2 Staff Appraisals
The Chairman of the Committee reported on amendments to the formal staff appraisal procedure. Committee Members were mindful of the importance for staff to have a proper framework in place to encourage development. The revisions to the Staff Appraisal Scheme allowed for appraisals on a two year cycle with a mid-term review.
71.3 Committee Terms of Reference
The Court approved revised Staffing Committee Terms of Reference for immediate implementation (attached as appendix 1 to these minutes).
71.4 Special Promotion to Principal Lecturer for exceptional teaching contributions
The Court noted that the Committee had agreed changes to the above scheme which had been in existence since 1996. The revisions were designed to enable the University to use better the experience of its staff promoted to Principal Lecturer by way of teaching experience and thus help enhance the quality of teaching across the institution. Court was pleased to note that the scheme was operating successfully and proving to be effective.
04/72 AUDIT COMMITTEE (CRT 04/73)
The Chairman of the Audit Committee introduced the report to Court detailing principal items of significance arising from the meeting of the Committee held on 23rd May 2005. The following items were discussed:
72.1 Review of Subsidiary Companies, Contracts, Intellectual Property and Policies and Procedures
The Chairman of the Committee reported on the Committee’s continuing work associated with improving those issues relevant to the operation of subsidiary companies and related activities which fell within the ambit of the Committee. Members were now more confident that the recommendations arising from the recent review ensured that the procedures were fully consistent with HEFCE guidelines. Modifications were currently being made to the proposed Memorandum of Understanding between the University and UGMT Limited and a revised version would be considered at the next meeting.
The Court resolved that:
i Dr Guy Poulter, Director of NRI, be appointed to the Board of UGMT Limited
ii the dormant company, London Science Park Limited, be wound up, and that the trademark registration for “London Science Park at Dartford” be allowed to lapse at the end of its current registration period.
72.2 HEFCE Assurance Service and Risk Assessment
The Court was pleased to note that HEFCE’s new system for risk assessment had resulted in the University being subject to lighter touch assessment.
72.3 Risk Management
The Chairman reported that, as a result of consideration of the annual review of internal control arrangements for managing risk, the Committee was able to provide Court with the necessary comfort that a robust risk management system currently existed. The review had been considered alongside the current institutional risk register which defined 19 internal and external risks for the coming year. Three of these risks had been allocated a residual impact of five and the Chairman reminded Court Members that all risks with this level of residual impact required their examination. The Court therefore discussed Risk 2, Risk 11 and Risk 18 and subsequently confirmed its satisfaction that the mitigating actions identified reduced the likelihood of the risks to an acceptable level.
The Court resolved:
i to accept the Annual Review of the University Risk Management
ii to approve the institutional risk register as at June 2005.
72.4 Internal Audit
The Chairman conveyed the concern of the Committee that a significant number of internal audits had yet to be completed before the end of July. The Internal Auditors were certain that, with the exception of the computer environment audit, all the remaining scheduled audits would be undertaken within the necessary timescale. Committee Members were not as optimistic as the Internal Auditors that this would be the case and the Chairman wished to highlight to the Court the possibility that by the end of the current year insufficient internal auditing work would have been undertaken.
72.5 Appointment of Internal Auditors
The Court approved the recommendation of the Evaluation Committee that Pritchard Wood be appointed as internal auditors w.e.f. 1st August 2005 for a period of two years with an opportunity to extend for a further three years. Annual costs would be £59,220 inclusive of VAT (based on 160 audit days pa) with increases each year restricted in line with the RPI rates for labour. It was noted that the tender from Pritchard Wood had not been the cheapest but the Committee believed that the company had demonstrated their ability to deliver a professional and effective service.
04/73 FINANCE COMMITTEE (CRT 04/74)
The Chairman of the Finance Committee introduced the report to Court outlining principal items of significance arising from the meeting of the Committee held on 13th June 2005. The following issues were discussed:
73.1 Provisional Budget 2005/06 and Five-Year Financial Forecasts
The Chairman reported that the Committee had spent considerable time scrutinising the provisional 2005-06 revenue and capital budgets and the five year financial forecast for the years 2004-2009.
He was particularly pleased to announce that the revenue budget forecast a modest underlying surplus of £500,000 and, in view of the University’s healthier financial position, also allowed for some additional investment and spending above previous years’ levels. Finance Committee Members felt it was essential for the Court to fully understand the decisions underlying the budget and a note explaining the rationale for these had been produced to inform the Court discussion.
It was reported that the balance sheet for the year ending 31 July 2006 contained a significant deficit but, as it related to the pensions liability and introduction of FRS 17, the deficit was acceptable under the conditions of the Bond.
The Chairman further reported that the budget papers prepared for Court included a more detailed quantification of the key risks facing the institution. In assessing these risks, Finance Committee Members were pleased to note that a major objective for the University’s reserves to equal 10% of financial turnover was likely to be met by the end of the financial year. In reviewing the appropriate level of reserves, Members were of the opinion that the reserves should be sufficient to match these identified risks and also any anticipated future opportunities which the University would wish to pursue.
Finally the Chairman commended to Court the 2005 capital expenditure budget amounting to £6.5 million, which was affordable within the institution’s capital funds, and which allowed for further enhancement of the University’s estate.
The Court resolved to approve the draft 2005-06 revenue and capital budgets and five-year forecasts.
73.2 Students’ Union Finances
The Court noted with satisfaction that the Students’ Union was expecting to perform above budget. However, a number of factors including the continuing decline in trading trends had resulted in minor cashflow difficulties and the Finance Committee had approved an advance of the 2005-06 subvention to be paid back by December 2005.
73.3 Committee Terms of Reference
The Court resolved to approve revised Committee Terms of Reference for immediate adoption (attached as Appendix 2).
73.4 London Pensions Fund Authority (LPFA)
The Chairman reported that as part of the Committee’s continuing scrutiny of the performance of the LPFA, Dr David Quarmby, accompanied by the Director of Finance, would be representing the University’s interests at a LPFA Employers Forum to be held on 20th July 2005. A further meeting to discuss the concerns of HE Members was planned later in the year.
73.5 University Estates Issues
73.5.1 Collaboration with the University of Kent at Medway
Court noted that new joint Learning Resources Centre located in the converted Drill Hall was on schedule to open for the start of the coming academic session. The next phase of work involved the conversion of the former canteen building into teaching accommodation, students’ union facilities and catering and retail space, as well as the remodelling of the vacated areas in the Nelson building and adjacent buildings. Court further noted that external funding had been secured for both building projects.
The Court resolved:
i in relation to the works to convert the canteen building at Medway:
a) that the estimated budget of £6.15 million including VAT and fees be approved
b) that delegated authority be granted to the Chairman of the Committee/Chair of Court and the Vice-Chancellor/Secretary and Registrar until the next Finance Committee meeting to sign a contract jointly with the University of Kent with the successful tenderer
ii in relation to the Nelson Building and Ancillary works:
a) that the revised schedule of works within the budget of £1 million be approved
b) that delegated authority be granted to the Chairman of Committee/Chair of Court to authorise any individual contracts / orders exceeding £150,000 and within the overall budget.