Minutes of the hundred and twenty eighth meeting of the
Finance Management Committee held on
Monday 17th March 2014 at 10.15am
Item / Action1. / To record the names of those present
Vanessa Cameron, Chief Executive, Professor Nick Craddock, Honorary Treasurer, Dr Jan Falkowski, Dr Ian Hall, Paddy Padmanathan, Director of Finance and Operations, Dave Jago, Director of Publications and Website for item 5.iii and Mehmet Salaheddin, Financial Reporting Manager for items 7.i, ii, iii and viii. Also, Stephen Dean, Senior Audit Manager at Baker Tilly UK Audit LLP for items 7.i and 7.ii
2. / To record apologies for absence
Dr Chris Fear
3. / To approve the minutes of the meeting held on 31st January 2014
FMC Approved the minutes / Minutes to go to Council
4. / Matters arising from previous minutes
i. The Treasurer confirmed that he had written to RCPsych in Scotland offering College support for 50% for Scottish Mental Health Arts and Film Festival.
ii. The Treasurer had also written to the Academic Faculty who had agreed to take over the administration of the Gosling Legacy.
iii. The Director of Finance and Operations had had a phone conversation with the finance officer of the Psychotherapy Faculty. FMC remained extremely concerned by the financial situation within the Faculty. Future executive meetings should be held by teleconference to save approx £5k in travel expenses. The Faculty could have one face to face meeting at the International Congress. It was agreed that the Treasurer, Director of Finance and Operations, the Chair and Finance Officer of the Faculty, together with a representative from CALC would have a meeting to discuss these issues.
iv. Staff remuneration was again discussed. The Director of Finance and Operations confirmed that he, the Director of Publications and the Director of HR had been meeting to discuss how to incentivise staff with small rewards and how to reward excellence.
v. The Director of Finance and Operations had met with the caterers to try and control catering and hospitality costs. Ideas included - small meetings of less than 10 people should have lunch in the canteen; coffee machines in the meeting rooms; if there were a couple of meetings going on there could be a standard combined lunch on the 1st floor. FMC agreed these were all good initiatives.
vi. The Chief Executive explained that the money for the President’s Portrait could not come out of the general art budget because this had been allocated for art throughout the new building. The costs for the President’s Portrait had not been budgeted for because the current President had initially turned down the offer of a portrait. In future this should always be included in the annual budget.
vii. Fixed Asset and Depreciation Policy is due to go the next Council meeting on 27 March 2014 as part of the paper on the statutory accounts.
viii. Travel Booking and Expense Management Systems. Travel booking was currently in the 1st phase and all travel bookings are being made through Travel Management Group. 2nd phase will involve rolling out to internal departments and the 3rd phase to the membership and external users. / The Treasurer, Director of Finance and Operations, the Chair and Finance Officer of the Faculty, together with a representative from CALC to have a meeting
Fixed Asset and Depreciation Policy is due to go to Council on 27 March 2014
5. / Chair’s business
i. Divisions/ Jurisdictions
The Treasurer explained that he had recently visited the 3 Celtic countries on a fact finding basis. He would prepare a short paper/presentation containing suggestions on how the 3 countries could be treated differently from the English Divisions. Central College support costs (including IT, HR and finance) are in the region of £1.9m. Wales receives support of £111k. Examining the figures the comment was made that London Div receives approx £20 of support per member whilst NI receives more than £400. Comment was also made that SW Div was carrying out some activities which potentially conflict with CALC activities and this should be addressed.
ii. College flat
The issue of the College flat is connected to item 7.vi (plans for spare land) and will need to be considered alongside this item. It was agreed that accommodation is required for any President who is based outside London.
iii. BJPsych Open Access Journal
Director of Publications, Dave Jago, explained the proposal for an on-line, open access, cascade Journal which had been put forward by the new Editor. FMC were supportive of the principle and it was agreed that the costs appeared reasonable although some additional clarification was sought on some business issues, such as the timing of expenditure, the number and level of posts that may be needed and evidence that steps had been taken to evaluate what set up activities can be undertaken within current staffing and resources. The case would now be put to Officers and Council requesting support using the mechanisms for considering "in year" requests for funding from the Budget for new initiatives. Meanwhile, the Treasurer would email the Editor and give him feedback. / Treasurer would prepare a paper for a future FMC
Treasurer to contact Editor
6. / Chief Executive’s business
i. Rail travel for new President
It was agreed that the incoming President would not undertake as much overseas travel as the current one. However, due to exceptional circumstances (security issues) it was requested as a one off that the new President be allowed to travel 1st class on train journeys. It was agreed that this special request was, under the circumstances, reasonable and proportionate, but, that tickets should be booked in advance to gain the best value and the budget would be monitored and reviewed on an annual basis
ii. Revised FMC terms of reference
The proposed revised FMC terms of reference were discussed. This was felt to be a useful document but perhaps reference should be made to addressing committee members’ non-attendance. There was much discussion about the membership of the committee and it was finally agreed to have 3 Council Members (not Trustees) and 2 Trustee Members ie the lay representative and the Treasurer. The CE explained the recruitment process for the non remunerated lay trustee representative. They would be appointed for 5 years although they could be removed. They may be appointed at different times to stagger the demitting dates. £20k had been allocated in the current year’s budget to employ professional headhunters to identify up to 3 trustees. The CE explained that, after receiving quotes, it was clear that a high quality head-hunter (such as used by other Royal Colleges) will cost approximately £30k. FMC agreed to this increase.
iii. NICE/ BPS/ NCCMH contracts
The collaboration with NCCMH has been in operation since 2002. NICE has a contract with RCPsych and the College in turn has a contract with BPS. The latter was to have been in place 12 months ago but was never signed. BPS were anxious about the new requirements with regard to data protection, intellectual property rights and taxation. Revised contract has been agreed now. / FMC agreed that incoming President could travel 1st class by rail
7. / Director of Finance and Operations’ business
i. Final Statutory Accounts – 2013
Mehmet Salaheddin, Financial Reporting Manager and Stephen Dean Senior Audit Manager attended to talk the committee through the statutory accounts. The Committee approved the accounts for presentation to Council with minor amendments.
ii. Audit Findings Report
Stephen Dean thanked the Treasurer and all the finance team for their help during the audit which had gone very well. There was nothing of any significance to report. Attention was drawn to the Representation letter which the Trustees would need to sign. The Committee approved the letter for presentation to Council.
iii. Draft Internal Audit Strategy
The Director of Finance and Operations talked the committee through the 3 year internal audit strategy proposed by Crowe, Clark, Whitehill. The 3 year plan was agreed with the request that one more item be added to the plan– Review of financial controls over payments, journals and payroll. This was agreed.
iv. Revised bank payment signatory limits
This item was held over to May FMC.
v. Proposal to migrate from Concept database
The final paper would be submitted to FMC in May. Workshops were going on internally and the feedback from them was that the staff liked the product.
vi. Property Matters
· Prescot St
o Plans for spare land
Tuckermans had informally advised the Director of Finance and Operations that there is scope for development of the site into 8 residential units of 2 bedrooms each. It was agreed that the Treasurer would verbally update Council on 27th March following which the Director of Finance and Operations would explore the option further.
o Refurbishment Costs
£6.8m which included 2 late costs –a solicitor’s bill for £4k and the purchase of 300 chairs for the conference space on the first floor for £30k.
o Dilapidations claim against Santander
This has been delayed due to Area Sq not submitting cost information in time. Further effort will be made to obtain the information or else an estimate will be used based on information from Watts.
o Letting of 4th floor
4th floor office space is being marketed and some interest has been shown.
· 15 Belgrave Square dilapidations
The outstanding dilapidation issue had been resolved. The landlord had demanded £22k but claim had been settled at £11k.
vii. Investments Update
There was no investments update as College was still in the first quarter. The relationship with Brewin Dolphin had been terminated on an amicable basis and the portfolio would be transferred by the end of the month.
viii. Management Accounts
Mehmet talked the committee through the Management Accounts for Period 2 (Feb 2014). There was nothing to report which was outside the budget or to be concerned about aside from the usual timing differences. / FMC approved Representation letter for presentation to Council
For May FMC
DFO to prepare paper for May FMC
Treasurer to update March Council
8. / Faculties, Sections, Divisions and Special Interest Groups
i. FSDSIG balances were noted
9. / Any other business
i. The Director of Finance and Operations reported that a VAT inspection had been scheduled for the end of April. It was thought the building cost refurbishment VAT claim of £1m had led to the request for the inspection.
ii. FMC were informed that as forthcoming Council and Trustee dates have to be amended and set, future FMC dates are subject to change. Next meeting of Friday 16 May is confirmed.
10. / Date of next meeting
Friday 16th May 2014