SOUTHPORT COLLEGE

MINUTES OF THE RESOURCES COMMITTEE MEETING

HELD ON TUESDAY 19 MAY 2015 AT 3.15PM

PRESENT:Dr D J Marks (Chair), Mr J D Clarke, Mr J A Fell, Mrs L Mee, Mr K Millington and Mr J Pickering

IN ATTENDANCE:Mrs C Kerr

Mr E Green and Mr A Winrow

Mrs G Kelly (for 15/46)

15/37DECLARATIONS OF INTEREST

The Chair reminded Members that they should declare any interests they may have.

15/38APOLOGIES FOR ABSENCE

Apologies for absence were received from Mr B M Rimmer and Mr S Wilkinson.

15/39MINUTES OF THE MEETING HELD 24 MARCH 2015

The minutes of the meeting held on 24 March 2015 were received as a correct record and signed by the Chair.

15/40MATTERS ARISING

Ongoing financial health

Members reinforced the request that some attention be given to this matter at the Strategic Review Day as requested in the March 2015 minutes, to preserve outstanding financial health insofar as may be possible in future years.

Pauline Quirk Academy of Performing Arts, Birkdale High School

Members noted that this was a Saturday event and had no impact on the College, though in fact, the College was now assisting in its running.

15/41CONFIDENTIAL ITEMS

No minutes were deemed confidential.

15/42FINANCIAL STATEMENTS FOR MARCH AND APRIL 2015

The committee considered the financial statements for March and April 2015 and after discussion on

  • the proposed budget allocation for summer projects
  • the welcome reduction in the ratio of pay as a percentage of income, this being mainly due to increased income
  • the increased revised forecast for 2014/15 for the financial health score points, the committee

RESOLVED – That the financial statements be approved.

15/43SFA FINANCIAL HEALTH AND FINANCIAL DASHBOARD

The committee considered the SFA’s letter to the College of 6 March 2015 regarding financial health with a financial dashboard for the College.

Mr Green gave Members a synopsis of the information provided, and particularly informed Members that the SFA had reviewed the College’s audited financial statements for 2013/14 and had confirmed the College’s financial health grade as ‘outstanding’; also, after a review of the audited accounts, the management letter and the annual audit committee report, the SFA had no significant concerns with the College’s financial control arrangements.

Members then discussed with Mr Green the outcomes of the

a) underlying financial health

b) financial dashboard

c) cash based operating profit

d) current ratio

e) staff costs as a percentage of income

f) borrowing as a percentage of income

g) financial control.

After further discussion and agreeing that the report’s contents gave a good indication of the College’s financial position and financial plan, though some figures were historic, and noting that actions to increase average class sizes were progressing, the committee

RESOLVED – That the report be noted.

15/44REVIEW OF WORK BASED LEARNING ACTIVITY (TERM 2)

The committee considered a report providing a review of employer engagement and related partnership activity undertaken by the College to 31 March 2015.

Mr Clarke informed Members that

a)the report detailed the activity against the SFA’s target funding allocation and predicted income at 31 March 2015

b)the report also contained detailed information on

  • 16-18 apprenticeships
  • 19+ apprenticeships
  • ESF project.

Members then discussed various aspects of the report with Mr Clarke and after requesting

additional clarity for some of the financial effect of adult skills budget shortfalls in future reports, the committee

RESOLVED – That the report be noted.

15/45HR/PAYROLL SYSTEM AND CATERING

The committee considered a report detailing the result of the College’s tendering process for a new HR/Payroll system, and progress on the catering contract.

Mr Green informed Members that

a) in respect of the HR/Payroll System, following approval by the Chair of the Resources Committee (as agreed at the March 2015 meeting) the chosen supplier was Frontier Systems at a three year cost of £111,000; this was the second lowest tender but the lowest tender of £51,000 was not considered to be the best value for money when the non-financial elements of the proposals were taken into account

b)in respect of the catering tender

the process was still to be finalised

contractors had priced on current pay rates and also on a minimum ‘living wage’ rate

adopting the latter rate would bring contract staff in line with College directly employed staff and would enable the College to progress to becoming a ‘living wage employer’, though the contract figure would be higher

c)there could also be implications for the security and cleaning contracts; it was not possible to gauge the precise effect at this stage butan estimate of £35,000 based on current specifications was provided.

After discussion, the committee

RESOLVED – That approval be given to

1)the acceptance of the second lowest tender submitted by Frontier Systems for a new HR/Payroll system in the sum of £111,000, as allowed for in the financial regulations under the circumstances reported

2)the ‘living wage’ option being incorporated in the specifications for the renewal of the catering, security and cleaning contracts only.

15/46REVIEW OF HUMAN RESOURCE OBJECTIVES, 2014/15 TERM 3

The committee considered a progress report on the achievement of the 2014/15 Human Resource objectives agreed by the committee on 24 June 2014.

Mrs Kellypresented a synopsis of the progress made and informed Members that

a)the annex to the report showed each objective, the action required and the progress to date

b)significant activities this term included

the College’s Health and Wellbeing Day on 30March 2015; students had led on the key themes supported by staff

a second management training day held on 27March 2015

the completion of the first draft of part 2 of the AoC Beacon Award application

c)there had been significant progress made in realigning the curriculum and support areas and maintaining the ratio of staff costs to income.

Members then discussed various issues with Mrs Kelly, particularly the following percentage sickness absence figures

Short term
% / Long term
% / Total
%
2013/14 / 1.22 / 1.67 / 2.89
2014/15 / 1.39 / 1.81 / 3.20
Benchmark / 2.00 / 1.77 / 3.77

After further discussion on the management training for the College Management Team, which would now include deputy managers, the committee

RESOLVED – That the report be noted.

15/47INSURANCE RENEWAL

The committee considered a report detailing the College’s insurance arrangements and suggestions for the renewal in July 2015.

Mr Green informed Members that

a)the College was required to insure against certain risks such as employers’ liability and public liability, and could also insure against other risks such as governors’ professional negligence and business interruption

b)in 2013/14,the College insured with the RSA Group through an insurance broker, Marsh, under a three year long term agreement (LTA) for a premium of £53,000 including VAT and IPT

c)the insurances would be renewed in July 2015, and during 2015/16, a retender of insurances would be undertaken to test the market for 2016/17 onwards

d)breakdowns of the various current insurance covers were detailed in the annexes to the report

e)Marsh had advised that many organisations had removed terrorism cover and that this could lower the premium by around £5,000.

After discussion, the committee

RESOLVED – That

1)the report be noted

2)approval be given to the removal of terrorism cover when the insurance cover is next renewed.

15/48OUTSTANDING ITEMS

The committee did not have any outstanding items.

15/49ANY OTHER BUSINESS

The Clerk advised of a free further education and skills seminar in Warrington to be run by Baker Tilly on 2 July 2015; he outlined the programme and asked any governor who might be interested to contact him for further details.

15/50REVIEW OF THE MEETING

Members indicated that they were satisfied with the information submitted and its level of detail.

15/51DATE AND TIME OF NEXT MEETING

Tuesday 23 June 2015 at 3.00pm

The meeting closed at 4.25pm

Minutes 15/37 to 15/51 received as a correct record on 23 June 2015

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CHAIR

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