FINANCE AND HUMAN RESOURCES COMMITTEE MEETING
Draft minutes
Date / 2 March 2016 / Time / 15.00Venue / StationPlaza Boardroom
Chair / Ken Melsom MBE JP
Membership:
Ken Melsom MBE JP (Chair); Sue Walton (Vice Chair); Tony Campbell OBE KSG FRSA; Pat Farmer; Principal (Clive Cooke);Paul Evans (co-opted)
Apologies:
Lead officers: VP Corporate Services (Biram Desai);
In attendance:Head of HR (Melanie Price); VP Enterprise, Employment and Skills (Dan Shelley); Student Governor (Lawrence Calton); Staff (support) governor (Debbie Baldock Apps)
At 14.30Phil Barnes Head of Facilities will provide governors with an update on health and safety in the College (see presentation for full details) Attendees: PF; KM; TC; PE; SW; DBA; BD
. / Item / Action1. / Apologies
There were no apologies received. The Chair welcomed The Head of HR to her first meeting. The Student Governor and VP EES will arrive later in the meeting.
2. / Declarations of interest
Ken Melsom and Paul Evans declared theirdirectorships of Hastings Plaza Trading Ltd.
Pat Farmer declared his interest as a member of the Hastings and Rother Task Force.
Sue Walton declared her interest as an employee of Pestalozzi.
3. / Minutes of the last meeting held on Wednesday 25 November 2015
RESOLVED: The Committee agreed the minutes of the last meeting as a true and accurate record: Proposed: KM; Seconded: PF; CARRIED
4. / Matters arising on the minutes
The actions were noted as completed or covered in the agenda.
5. / Human Resources Update
The Head of HR provided an overview of the KPI figures. Voluntary turnover figures are marginally lower (9) in comparison to the same period last year (November, December, January) (12). Annual voluntary turnover figures remain below the AoC average turnover of 10%. Sickness absences remain constant at around 6.47 days per person, compared to the national average of 6.9 and significantly lower than the public sector average of 8.7 days [confidential note]
The Head of HR reported that a departmental audit HR had taken place looking at a number of processes such as contracts, annual leave and booking holiday. It has highlighted a number of areas;none are related to legal compliance. An action plan has been produced and shared with the Principal. There are a number of policies that haven’t been reviewed and there is a plan to be fully updated by September 2016. The audit looked at a number of wide issues and sampled small areas. There was not a great deal of depth in the audit and a high level overview. The Committee asked about the issues concerned and the Head of HR reported:
- A change of security profiles is required as supervisor access provides access to all HR systems
The Principal reported that the College has a great relationship with the academies but not when it comes to English and maths as we are in direct competition with schools for teachers.
The Committee questioned how successful it is recruiting from overseas through an agency. The Head of HR reported that the academies have been very successful. They have employed directly through an agency and recruited 5 teachers last year.
The Chair of Corporation reported on the problem of students being set up to fail time and time again in English and maths and the need to change the course for everyday use of maths and English. The Principal noted that the government is holding onto GCSE English and maths and Functional Skills for level one and it is unlikely to change in the near future.
The relationship with the UoB and using the university students to deliver teaching was discussed.
6. / ICT Strategy Metrics
The VP CS reported that the Committee had requested an ICT dashboard to allow wider monitoring of the IT strategy. There is a lot of work to do in investing in the infrastructure and the plan details the main steps to delivering it. The main metrics are included on the dashboard.
The VP CS noted that the College had started off with a good base in terms of IT and equipment but as time develops there is a greater need for equipment and support. The College is focusing on taking IT forward and the VP CS noted the following projects:
- Increased Janet connection from 100mb to 1gb
- Discontinuing Mac minis which require a disproportionate amount of IT support
- The Committee asked how much the College has currently invested and what is the placement as a % of that. An analysis to show the total amount of IT equipment and replacement would be useful.
- It was noted that old machines are still useful for some operations
- The Committee asked what the expected lifespan of a PC is. The VP CS noted that the College is aiming to extend life by replacing kit inside. 4 years was a ball park figure but it can be extended cheaply
The Vice Chair noted the discussions at PPRs around the trend for more laptops in classes and the complaint that many laptops are not fit for purpose. It was agreed that the College does need to replace and increase the investment in IT kit for staff and students. More and more systems are going online, and the College cannot expect staff and students to use the systems if the hardware is not working for them.
The Committee noted the survey results about the IT helpdesk (p.5) look positive and suggested the data around the number of responses and target response rates would provide a useful context.
The Committee asked to receive the ICT strategy metrics report once a year to monitor progress with any areas of concern coming to the committee as required. / VP CS
Clerk
7. / Performance Update
Key Performance Indicators relating to HR– see item 5. [confidential note]. Staff appraisals currently stand at 76% completed and a number of departments are being called into HR to discuss their appraisal progress. Staff turnover is 7%. HR PPRs are coming up shortly.
Key Performance Indicators relating to finance. TheVP CS reported that overall metrics are positive. There is some under delivery in 24+loans but this is balanced out by good delivery in e learning and adult apprenticeships. A letter from the SFA with a Good Financial Health category for this year was received [after note the letter sent to the Committee for information]. Student attendance is disappointing and a full report will go to the CQS Committee.
The Chair questioned whether there is data around timeliness in turning up to lessons as during the lesson observation he had attended there was an issue with students arriving late. The Vice Chair noted a similar experience. The VP EES reported that registers should be signed in the first 15 minutes, but not always possible.
The Vice Chair questioned the KPI dashboard and where the back page on strategic targets had gone to. He asked that this is re added.
The Committee asked whether the number of staff raising issues in surveys is a concern and how this is addressed. The Principal noted that it is an operational issue and the Head of HR noted that it is addressed. / VP CS
8. / Acquire update
The VP EES reported as follows:
- The pilot is going well with 100 starts a month
- There is improved reporting. A new e learning finance manager, Hayley Robertson and her team are taking it forward
- [confidential note]
- CQS received a paper looking at the potential risks related to an impact on success rates and were willing to take the risks. The Chair of CQS confirmed the CQS Committee felt they were manageable risks
- By day 42 (the point when students will contribute towards the Colleges success rates) the College is confident students will complete, although some may need support
- From April 2016 the College will be delivering AAT level 1 and is hopeful that there will be a significant increase in business.
The Principal reminded the Committee that at the Corporation strategy day governors had asked the SLT to go away and find a project to meet the shortfall in funding. It is innovative and it needs big numbers. It comes at a risk, students will be home learning, but interventions and managing quality are in place.
The Committee questioned the contribution of 15% on £2000 per course. The VP EES noted that the College’s costs are fixed for finance and admin. The advance share is 53% and the margin will go up as numbers increase as back office costs fixed. At the present time the project is over staffed to manage quality and prepare for the increase in demand.
9. / Financial Planning
a)January 2016 Management Accounts
The VP CS reported that the year is going well, the position is solid and the College is forecast to achieve £430k operating surplus. There is some under delivery in 24+loans but this is balanced out by good delivery in e learning and adult apprenticeships.
(LC arrives 15.57)
The Committee asked for an update on the SFA consultation and the VP CS reported that the SFA have launched the consultation; included is a paragraph that says collegeswill be considered for an override from inadequate financial health if they can demonstrate their cash generation is strong enough.
b)Budget 2016/17 – initial assumptions
The VP CS noted that a lot of planning has been done already at a detailed level. Highlights on budgeting included:
- EFA allocation is good, initial allocation is through due to good enrolment last year
- Current staff are going to cost an additional £300k next yearthrough pensions, NI and increments
- The College have identified a savings requirement and a curriculum management restructure is taking place. It is expected to maintain pay costs at 64%
- Key funding streams will remain as they are
- Capital expenditure includes a request to finance the flooring out of the 5th floor out of college funds.
- The College continues to operate in a way that give satisfactory financial health and meets other targets
- E learning income, only £1.25m gross income is included in the initial assumptions
- 2017-18 is more of a challenge for the finances. It is the first year of the apprenticeship reforms and incurs more risk. It seems sensible to take obvious savings out and give the College a stable year because 2017-18 may need more surgery. It gives 12 months to see what the budget may look like.
BDOs recommendation is to bring to the Committee options around accounting policy arising from FRS102. The VP CS explained that there will be changes in the 15-16 financial statements due to FRS102. One key issue is around choice of accounting for capital grants. There are two options. The Accruals method which is recommended is around maintaining the accruals. Presentation of the accounts will show much reduced net assets. There is the option to revalue land/buildings and a judgement on whether this would be beneficial is yet to be made. The Committee questioned the costs of re valuation and the VP CS noted that an action from Audit Committee was to contact Dyer and Hobbs for initial advice.
The Committee asked that a PR message is ready to go out when the changes take place and that the College works closely with Barclays around the changes.
RESOLVED: The Committee agreed to the proposal for the Accounting Policies from the VP CS and noted the recommendation from the Audit Committee. Proposed: KM; Seconded: PE; CARRIED
10. / Policy for Tuition and Other Fees
The VP CS reported the following key changes:
•Clarification for 2 year courses
•24+ loans reference updated to 19+ loans
•e-learning refunds clarification
The broad message is that fees are staying the same and there is no justification to increase. The College is working closely with the UoB around HE fees.
SCCH fees are currently £2000 less than UoB.
The Committee considered the policy and the following points were noted:
- The cross reference on p.5 8.3 should be 9.2 (the VP CS to check and amend)
- The Committee suggested the College use thefees in marketing and the VP EES confirmed this was already taking place.
11. / Subcontracting
a)Update on overall subcontractor landscape 2015/16
The VP EES noted that across funding streams everything is going well apart from 24+ loans and there is growth funding for 19+ apprenticeships. A further growth opportunity is available to the college and partners in April 2016, which the college will apply to as it looks like the current allocation is going to be achieved and exceeded.There are some slight changes to contracts (see details on table 4). Timescale for bidding for 16-17 is as follows:
Date / Action
End of March 2016 / College is informed of indicative allocations for all funding streams
18/4/16 / Bidding process launched
13/5/16 / Bidding closing date
w/b 16/5/16 / Decision making panel held
23/5 – 3/6 / Contract negotiation period
8/6/16 / F&HR Committee ratify recommendations for 16/17 subcontracting
29/6/16 / Corporation notified of final contract values
1/7/16 / Contract signature deadline
1/8/14 / Contract delivery start date
Budget lines and income for partners marry into the forecast looked at in item 9, with the exception of the full funding from SFA which is due imminently.
There are only two partners (Tempest and Abacus) with reduced revenue, due to issues with the Director of abacus. This is being dealt with effectively, it is a safeguarding matter and the company are closing as a result of a business decision. Tempus were unable to be given any new starts as instructed by the SFA due to a technicality and they subsequently took on Darley training.
The Committee questioned how partners are preparing to cope with the levy. The VP EES noted that some want to remain as a partner even though they can have access to the money through the new system. There may be a small number of providers in this situation and the College will have to work out how that would work in 2017-18. Some others will go it alone. There is an internal apprenticeship taskforce working on the reforms and what it means for the College. Businesses will be invited in for discussions.
RESOLVED: The Committee recommended to approve the proposed changes to some contracts and approved the bidding process. Proposed: TC; Seconded: SW; CARRIED
12. / Risk Management Update – Risks allocated to F&HR Committee
The Committee noted their delegated 11 risks. At present there are 5 strategic risks that falls into the higher risk category:
•Failure to achieve Apprenticeship income target – forecasted to achieve 16-18 budget value and have already secured 19+ Growth and will reapply in April.
•Failure to achieve Subcontractor income target – only risk issue is 24+ Loans
•Failure to achieve the income target for 24+ Loan funded provision – slower start than expected but this is likely to be offset by strong Acquire Learning project.
•Failure to recruit and retain staff in key (shortage) subjects – plans in place (see below)
•High levels of staff turnover and sickness absence – currently below target with 1.6 days per staff member (see KPI dashboard).
The Committee noted that the risks were covered in the meeting agenda items.
13. / Accommodation and Estates Report
The Committee noted that the Hub was a great improvement and there is a lot of activity taking place.
[confidential note]
The Student Governor asked the reasoning behind EF being brought in and the VP CS explained that they contribute to the catering services and utilise the building during quiet periods.
The Vice Chair asked about the planned maintenance programme and progress and the VP CS noted that the College had received a demo yesterday and were pleased with the system which enables facilities staff to be mobile and operate a mobile helpdesk. The Vice Chair noted that he felt planned maintenance should be on the risk register.
RESOLVED: The Committee agreed for a tender to fit out the 5th floor to be sent out. PF noted he would be involved in the tender if required. Proposed: KM; Seconded: PE; CARRIED / VP CS
14. / Health & Safety Report
The VP CS noted that an expanded report for the Health and Safety Committee has been introduced at the Vice Chair’s request. The VP CS continues to work with the Head of Facilities and the team to enhance H&S in the College. The Facilities and H&S Coordinator is close to completing his NEEBOSH qualification.
The Vice Chair asked for the accident report to be appended to reports going forward for information.
The VP CS confirmed that the red rag rating at the H&S audit was related to H&S issues in the Art Department. / VP CS/
Clerk
15. / AOB
There were no items raised.
MEETING CLOSE
Staff and student governors depart 16.48
Confidential C closed items