Minutes of a Meeting of the Board of Corporation held on
Monday 24 June 2013 in the Pendle Building, Rooms P116-117
Present: / Skill Members: / R Pheasey (Vice Chair), S Barnes, S Jackson,H Malik,D Whatley
Student Members: / J Eyre
Principal / A Melton
Officers: / D Rothwell (Deputy Principal)
In Attendance: / A Ghidotti, C Parr, A Rushton.
1a).
b). / Three Year Corporate Plan Summary
2013-14 Key Goals
The Principal and Senior Management Team (SMT) provided a presentation to Members on the College’s three year strategic aims and 2013-14 key goals.
2. / Apologies for Absence
Apologies for absence were received from Vicky Eastwood, Vicky Thorp, Alistair Fordom, Amir Saeed, Alison Chambers, John David and Mike Tull.
3. / Declaration of Interest
Members were reminded of their responsibility to declare an interest in relation to specific items on the Agenda if appropriate.
4. / Minutes of the Previous Meeting – Monday 25 March 2013
The Minutes of the previous meeting held on Monday 25 March 2013, were agreed as a true and accurate record.
Resolved CG 13/16 That the Minutes of the previous meeting held on Monday 25 March 2013, be agreed as a true and accurate record.
5. / Matters Arising
There were no matters arising.
6. / Principal’s Report
Board members were asked toreview the key goals 2013-2014. Mr Barnes stated that he thought there was merit in debate/discussion with the Governing Board around the key goals. He added that the College needed to consider its priority partnerships especially in the current financial climate.
The Principal advised that there was a strategic decision tobe made make in prioritising resource in focusing on external activities or to look internally. The partnerships made need to be income attracting and must be a benefit to the College.
The Vice Chairman confirmed that an opportunity would be made for the Board to hold a discussion about the 3 year plan.
In response to a question from the Vice Chairman concerning staffing implications for Scotland Road, the Principal advised that existing staff would be relocated to allow the College to penetrate the community more effectively.
The Assistant Principal - Enterprise Engagement reported that the Job Centre Plus (JCP) contract was to run from Scotland Road with an anticipated 300 clients between now and the end of March 2014.
The Vice Chairman questioned whether the Senior management involvement with the Pendle Education Trust (PET)was considered to impact on the College’s ability to focus on its own strategic priorities. The Principal responded that an infrastructure plan would be proposed at the PET Board.
The Principal advised Members that they were invited to attend the Performance Management Curriculum & Quality meetings being held week commencing 8 July 2013.
Resolved CG 13/17That the Report be received.
7. / Resources Committee Minutes (13.05.13) and Chair Summary
Mr Barnes presented the Chairman’s summary of the Resources Committee highlighting the following key points:
Property Masterplan update – AA Projects
Capital Project Proposal Financial Planning
AA Projects had provided a detailed presentation on the property strategy/master planand the RIBA Stage C Design Report for the proposed major capital project to the Resources Committee and the following had been approved:
- The Property Strategy and Master Plan
- Phase 1 of the property strategy, namely the proposed £3.7m scheme to refurbish science provision provide a new link to the Pendle building and a new all-weather sports pitch/MUGA, plus ancillary improvements.
Mr Barnes stated thatif the grant was approved, the agreement of the Board was required to proceed. This was a real one off opportunity even though the timing wasperhaps not ideal. He advised that the governing body had approved the scheme via the Resources Committee.
The Deputy Principal reported that the College was progressing to RIBAStage; it would not be possible to wait until 19th July for detailed design work to commence having regard to demanding programme imperatives.
The Vice Chairman stated that whilst the Resources Committee had acted with the delegated authority from the Board, any unforeseen events or significant changes to the proposed scheme prior to the commitment of substantial amounts could allow decisions to be revisited if required.
Draft Fees Policy
Mr Barnes advised that the Committee had reviewed the Draft Fees Policy and it was enclosed for Board approval. This was approved.
Equality and Diversity Action Plans
Mr Barnes referred to the Single Equality Scheme and Action Plans provided for Members. These had been reviewed by the Resources Committee and were subsequently approved by the Board. Mr Barnes commented that the documents were detailed and significant work had gone into them.
Resolved CG 13/18That the Draft Fees Policy and Equality and Diversity Action Plans be approved by the Board of Corporation.
7b. / Management Accounts
In response to a question from the Vice Chairman, the Deputy Principal noted that projections indicated it was now increasingly likely that the College would achieve 100% of the ASB allocation which would equate to an additional c£60K income compared with reported projected outturn (97.5%).
Resolved CG 13/19That the Report be received.
7c. / Financial Forecast – Approval of Annual Budget and 3 Year Financial Forecast
The Deputy Principal acknowledged the contribution of colleagues to the annual budget settingprocess highlighting that again it had been a participative ‘bottom up’ process.
He provided a presentation on the financial forecast 2013/14-2015/16 to Members(copy of presentation attached). It was noted that a requirement for temporary accommodation couldhave a significant impact on revenue budget 2013/2014 if the proposed capital scheme was agreed.
The Vice Chairman asked the Deputy Principal how “comfortable”he wasgiven the relativelack of contingency and what the impact would be over the next two years. The Deputy Principal agreed that the budget assumptions would impact on the short-term financial health adding that the financial covenants allowedfor two deficits within a three year period providing they do not exceed £500k which were not forecast to occur.
The Deputy Principal confirmed the budget and advised that a 0.5% pay award for 2013-2014 had been allowed for but nothing from 2014-2015.
The Principal added that the College would want to implement the AoC recommended pay award and would hope that savings may be made elsewhere e.g. part-time pay costs.
The Deputy Principal reported that the Education Funding Agency’s (EFA) stated policy re formula protection funding should mean that if the College maintained current learner numbers, then there should not be a further cut in cash income before 2015/16.
Mr Barnes questioned, looking at the stated projected deficit of £300K for 2014/15, if this were repeated thereafter what would the impact be on the College’s reserves and financial position. The Deputy Principal noted that the I&E reserve was still c£8mn (c70% of income) and, in terms of cash holdings, balances were projected to remain > £4mn throughout the period this being significantly greater than that required by the strategic objective re a minimum of 75 cash days in hand.
Resolved CG 13/20That the report be received and the Board of Corporation approve:
The annual budget for 2013/14 and the 3 Year Financial Forecast for 2013/14 – 2015/16;
The proposed medium term financial objectives;
The sensitivity analysis of financial risks as part of the College’s overall risk management plan
That the Board of Corporation confirm the financial health self-assessment of the College as ‘Good.’
8a. / Audit Committee Minutes – Unapproved (10.06.13) and Chairman’s Summary
Mr Whatley provided a Chairman’s summary from the Audit Committee, highlighting the opinions and recommendations from Blocks 2 and 3 of the 2012/13 Internal Audit Reports.
He informed Members that the College had substantially met requirements for the ESF Audit: Skills Support for Redundancy and nil funding errors had been identified.
Resolved CG 13/21 That the report be received.
8b. / Appointment of Internal Auditors – 2013-14
Members noted the report and the proposed 2% increase in fees for 2013/14. It was agreed by all Members that BDO be re-appointed as the College’s Internal Auditors for 2013/14.
Resolved CG 13/22 That, as recommended by the Audit Committee, the Board of Corporation approve the appointment of BDO as the College’s Internal Auditors for 2013/14 and approve the proposed internal audit plan.
8c. / Appointment of Financial Statements/Regularity Auditors 2012/13
Members noted the report and the proposed 2% increase in fees for 2012/13. It was agreed by all Members that RSM Tenon be appointed as the College’s Financial Statements/Regularity Auditors for 2012/13.
Resolved CG 13/23 That, as recommended by the Audit Committee, the Board of Corporation approve the appointment of RSM Tenon as the College’s Financial Statements/Regularity Auditors for 2012/13.
9. / Curriculum & Quality Committee Minutes (Unapproved) – 20.05.13 and Chairman’s Summary
The Vice Chairman provideda summary from the Curriculum & Quality Committee, updating Members on the following issues:
Learner Voice
Business Unit Success Rates
Notices to Improve (NTI)
English and Maths Strategy for 2013
The Principal presented the lesson observation update report and advised that the percentage of observations graded asgood or better had increased to 91.85%. The Board noted the progress that had been made.
Resolved CG 13/24 That the Report be received.
10a. / Skills Member – Reappointment
As the Search Committee Meeting, scheduled prior to the Board Meeting, had been postponed this Agenda Item was deferred until that meeting had taken place.
Resolved CG 13/25 That the position be noted.
10b. / Application of the College Seal
Members were advised that since the last meeting of the Corporation held on Monday 25th March 2013, the College seal had not been applied. Since that date no documents requiring the application of the seal had been executed.
Resolved CG 13/26 That the Report be received and the position noted.
10c. / Review of Confidential Minutes
The Corporation were informed that during the academic year 2012/13 there had been no confidential Minutes recorded.
Resolved CG 13/27 That the Report be received.
10d. / Board of Corporation Meetings Schedule 2013/14
Members discussed the Meetings Schedule for 2013/14 and it was agreed that any issues with the proposed dates should be communicated as soon as possible.
Resolved CG 13/28 That the Report be received and Members feedback any issues with the proposed dates at their earliest convenience.
The Vice Chairman thanked Jordan and Steven for their commitment and contribution to the Board and wished them well for the future.
The Vice Chairman thanked all in attendance for their contributions and the meeting concluded.
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