MINUTES of the Third Meeting of the 2002/2003 Academic Year

the

COURT

FINANCE & ESTATES COMMITTEE

MINUTES of the third meeting of the 2002/2003 academic year

held on Monday, 17 March 2003, in Room 184, Queen Anne Court, Maritime Greenwich Campus, Old Royal Naval College, Park Row, Greenwich, SE10 9LS

commencing at 4.30 p.m.

Present:Mrs A-M Nelson (in the chair)

Mr J R H Loudon

Mrs M McKinlay

Dr D Quarmby

In attendance:Mrs S Adams (Director of Estates & Building Services)

Mrs T A Brighton (Minutes Secretary)

Mr C R H Bull

Prof M Cross (PVC, Research)

Mrs L Cording (University Secretary)

Prof J Humphreys (PVC, Academic Planning)

Mr J R Morris (Director of Finance)

Prof D Wills (PVC, Resources)

Apologies for Absence were received from Mr S M Collinson, Ms V M Marshall and

Prof R H Trainor.

02/40DECLARATION OF CONFLICT OF INTERESTS

There were no declarations of conflict of interests.

02/41BUDGET 2003/2004 (F&E 02/31)

02/41.1In introducing his paper on the need for future economies to achieve a balanced budget for 2003/04, the Director of Finance reminded the Committee that the draft 2003-04 budget would be submitted for recommendation to Court at the June meeting. He reminded Governors that the financial forecasts approved by the Court in July 2002 had been based on 24 key assumptions and that whilst many of the assumptions had already been met, including some staff reductions, it would be necessary for further staff cuts to be made. These might include the possibility of compulsory redundancies, in order to achieve sufficient economies and achieve a balanced budget.

02/41.2.It was reported that the results of a recent benchmarking exercise undertaken by Ben Johnson-Hill Associates had revealed that expenditure on administration was above average for the sector. Immediate measures were being taken to identify savings, using the results of the report as one of the guides to understanding the underlying costs.

02/41.3During lengthy discussion, the Committee registered significant concern at the slippage in the timescale for the savings listed in the budget assumptions and recalled that the conditions of the Bond covenants did not permit the University to have a deficit budget for two consecutive years. The Committee stressed that it was of paramount importance that economies be identified and executed as rapidly as possible. The crucial role that staff reductions would play (subject to the consultations with the recognised trade unions) in achieving the necessary level of economies was recognised.

02/41.3The Committee

iurged University officers to take stringent action to ensure that large-scale economies were implemented as a matter of priority

iiagreed that the 2003-04 budget be drafted to incorporate savings so as to achieve a budget surplus.

02/42RESOURCE ALLOCATIONS TO SCHOOLS 2002-03 (F&E 02/32)

The Committee considered a report from the Director of Finance on the resource allocation process to Schools for 2002-03 and noted that funds were allocated to Schools based on the number of students (credits) enrolled in each School (with some adjustments for weighting of courses). It was noted that three particular Schools were showing deficit budgets and University officers provided assurance that action was being taken to reduce the over-spends. This would ensure that the academic operation improved its efficiency even further.

02/43MANAGEMENT ACCOUNTS TO 31 JANUARY 2003 AND FORECAST OUTTURN (F&E 02/33)

The Committee received and considered Management Accounts for the period to 31 January 2003 including the Balance Sheet as at 31 January 2003 and cashflow forecasts for the 12 months from February 2003. The commentary highlighted the forecast out-turn for the year, where there was shown to be slippage against original budget, and Governors expressed their concern.

02/44STUDENTS’ UNION FINANCES (F&E 02/41)

Mr Chris Jones (General Manager, Students’ Union), Miss Chantel Phippen (President, Students’ Union) and Miss Lucy Avens (Vice-President, Services, Students’ Union) attended for this item.

02/44.1The Committee received:

(i)Budgetary Performance Statement for half year to 31.1.03

(ii)Financial Forecasts 2002/2003

(iii)Balance Sheet as at 31 January 2003

(iv)Students’ Union/University Balances as at 31 January 2003.

02/44.2The General Manager reported a surplus of c.£225,500 for the half-year period to 31st January 2003. It was noted that there had been considerable savings in expenditure during this period, notably in administrative costs where, for example, lower depreciation costs and a smaller than anticipated take up of the Students’ Union Superannuation Scheme principally accounted for the under-spend.

02/44.3The General Manager further reported that the forecast for the full year predicted a surplus of quarter of a million pounds and that the Union hoped to be financially solvent in the financial year 2003-04. The Committee noted that the Union had been alerted to the possibility of a cut in subvention for the 2003-04 financial year and that the precise level would be determined in consultations involving University management and the Union.

02/44.4The Committee was pleased to note that the Union’s debt to the University had significantly reduced from £358,708 at the end of the last financial year to c.£157,587 as at 31 January 2003 and commended the Union on its healthier financial position overall.

02/45ISLAND SITE, WOOLWICH CAMPUS (02/34A)

Noting the possible revenue benefits if completed by 31 July 2003, the Committee agreed to recommend to Court that:

ithe Director of Estates be authorised to continue negotiations with Powis Street Estates (PSE) to achieve the best possible disposal value in the quickest timescale recognising the special purchaser status of PSE, unless a superior offer is received in the interim

iidelegated authority be granted to the Vice-Chancellor, Chair of Finance & Estates Committee/Chair of Court to accept suitable terms on behalf of the Court for disposal of the Island site, Woolwich Campus.

02/4625-27 WELLINGTON STREET, 1st and 2nd FlOORS (02/34B)

The Committee agreed to recommend to Court that the Director of Estates be authorised to finalise the details of the assignment of the lease to complete the disposal of the premises as part of the overall Woolwich campus disposal procedures.

02/47POTENTIAL REPLACEMENT OFFICE SPACE FOR RIVERSIDE HOUSE,

WOOLWICH CAMPUS (F&E 02/34C)

02/47.1The Committee considered a report outlining possible options developments within the immediate vicinity of the Maritime Greenwich Campus for further office space for use by the University when the Riverside House lease expires in September 2005.

02/47.2The Committee:

inoted the options currently available for office space for possible use when the Riverside House lease expires in September 2005

iiagreed that the PVC (Resources) and the Director of Estates continue discussions, without commitment, with the Rose Bruford College site developers with a view to reporting further at the next meeting of the Committee.

02/48AVERY HILL CAMPUS (F&E 02/35)

The Committee noted that the final project costings of the building works associated with the relocation of the School of Architecture & Construction from Dartford to Avery Hill and other consequential moves was £1.90 million (against a budget of £1.93 million approved by the Committee in May 2002).

02/49PROJECT COSTINGS, MEDWAY CAMPUS (F&E 02/36A)

The Committee noted:

ithe completion of the project to move the School of Chemical and Life Sciences and Civil Engineering to Medway

iithat the final project costs of £4.57 million were £70,000 more than last predicted, but that the increase of costs had been found within the overall capital budget.

02/50COLLABORATION WITH CANTERBURY CHRIST CHURCH UNIVERSITY

COLLEGE (F&E 02/36B)

02/50.1The Committee considered a proposal to lease office space in Blake Building at the Medway Campus to Canterbury Christ Church University College (CCCUC) from the summer of 2003. It was noted that the proposal arose from discussions between CCCUC and Greenwich on the potential for collaboration in the provision of healthcare education. In addition provisional support for the development of a joint nursing programme in the Medway region appeared to have been secured from the Kent, Surrey and Sussex Confederation with the possibility of both revenue and capital funding to provide appropriate facilities at the Medway campus.

02/50.2It was noted that the proposals were of particular strategic importance to the University in terms both of new business growth and increasing regional collaboration. However, it was recognised that some investment would be required by the University to resolve issues relating to the additional students on campus and the relocation of those activities currently based in the relevant floors of the Blake Building.

02/50.3The Committee agreed to recommend to Court that:

iagreement in principle be granted to the leasing of space on the Medway campus to Canterbury Christ Church University College (CCCUC) for the purposes of joint development in the areas of healthcare education and teacher education programmes

iithe Pro Vice-Chancellors (Academic Planning) and (Resources) continue negotiations on the lease and attendant matters, possibly with a view to submitting a proposal for Chair’s action because of the tight timescale for development

iiiauthority be granted to the Chair of Finance & Estates Committee and the Vice-Chancellor to approve the leasing of space before the next meeting of the Finance & Estates Committee should that prove necessary.

02/51MEDWAY COUNCIL AGREEMENT (F&E 02/36C)

The Committee agreed to recommend to Court, subject to one minor amendment, that the draft Agreement for the development of the Universities at Medway Campus between the Medway Council, the University of Kent and the University of Greenwich be approved.

02/52KING WILLIAM BUILDING, MARITIME GREENWICH CAMPUS (F&E 02/37)

The Committee noted that the Adjudicator’s decision relating to the dispute on the Final Account for the King William Building Contract had been received in late January 2003 and that it entitled the Main Contractor to receive an additional £489,000 for the works (against a claim of £2.8 million).

02/53DREADNOUGHT BUILDING AND THE COMPUTER SERVER CENTRE, MARITIME GREENWICH CAMPUS (F&E 02/38)

02/53.1The Committee considered a proposal to relocate the Computer Server Centre from the Island site, Woolwich, to the Dreadnought Building at the Maritime Greenwich Campus. The Committee recalled that the original plans involved moving the Computer Server Centre to the Old Sorting Office in Greenwich Park Street but, on the basis of advice from professional consultants and the requirements of the insurers, the University had decided that the lease of the Old Sorting Office would not now be taken up.

02/53.2The Pro Vice-Chancellor (Resources) reported that space at the Maritime Greenwich Campus was at a premium and that during the course of the above appraisals an opportunity to create additional space for additional meeting and storage rooms in the basement of the Dreadnought Building had been identified. The works were estimated to cost approximately £522,000.

02/53.3The Committee:

iapproved the proposal to move the Computer Server Centre to the Dreadnought Building

iinoting that the costs of this move would be split between the 2002/03 and 2003/04 financial years, approved a budget of up to a total of £760,000 for the works

iiiagreed that, although no funding would be available in the near future, University officers continue to examine the possibility of carrying out further work in the Dreadnought basement in order to create additional space, at a later time.

02/54MINUTES OF THE PREVIOUS MEETING (F&E 02/39)

The minutes of the meeting held on 18 November 2002 were taken as read and signed as a true record.

MATTERS ARISING

02/55(i)STUDENT RECRUITMENT

The Pro Vice-Chancellor (Academic Planning) gave an oral report on the latest position on student recruitment. Applications by home students through UCAS were currently 2% lower than in previous years although the conversion rate of applications to acceptances was higher. It was noticeable at this stage that the trend indicating a decline in applications to the science-based subjects was continuing. Overseas applications were fairly buoyant although it was possible that the Iraqi war could have an adverse effect on overseas recruitment in the near future.

02/56NRI (F&E 02/40)

The Committee received the confidential minutes of the NRI Board meeting held on 6 March 2003.

02/57SCHOOL OF PHARMACY

The Pro Vice-Chancellor (Academic Planning) reported verbally that the accreditation visit by the Royal Pharmaceutical Society (RPS), which had taken place on 21st February 2003, had been successful. The RPS had stipulated one significant condition; that three qualified pharmacists should be in post for the start of August 2003 and advertisements had been placed. The Committee noted that negotiations were still continuing with a prospective Head of School and that plans were currently proceeding on the basis of a September 2003 start date.

02/58VISIT TO LONDON PENSION FUND AUTHORITY (LPFA) ON 24 FEBRUARY 2003 (F&E 02/42)

02/58.1The Committee received a verbal report from James Loudon, Chair of the LPFA sub-committee, on a meeting between University representatives and LPFA officers which had taken place at the LPFA headquarters on 24 February 2003. He reported that the LPFA Head of Finance and Investment and Director of Operations had provided useful and interesting presentations on the recent performance of the Fund together with an indication of likely future developments.

02/58.2It was noted that employer contribution rates were likely to increase from 11.4% to approximately 14% in the medium term. This would represent a significant increase in expenditure for all universities and it was possible that a sector-wide approach would be made to HEFCE for financial assistance.

02/58.3The General Manager of the Students’ Union expressed his thanks for being invited to attend the meeting which had proved to be extremely helpful to the pensions work being undertaken by the Union.

02/58.4The Committee agreed that the LPFA sub-committee would arrange another visit to the LPFA in about a year’s time.

02/59RESIDENCES REPORT (F&E 02/43)

The Committee:

ireceived the University Domestic Bursar’s Residences Reports

iiapproved a rent increase of 3% to be applied across existing Halls of Residence

iiiapproved the introduction of a data connection charge of £80 for the provision of data services to student bedrooms in relevant Halls of Residence

ivnoted the starting rents (ranging from £93.59 to £153.02 per week) for the new Rachel McMillan Hall at Deptford as prescribed by the lease

vnoted that the first phase of the new Rachel McMillan Halls was expected to be completed for September 2003

vinoted the intention to close Thomas Spencer Halls of Residence should the opening of the new Halls at Deptford result in insufficient demand for accommodation at the Thomas Spencer Halls

viiapproved the 2003/2004 Residences Budget.

02/60ANNUAL REPORT ON PROCUREMENT & BUSINESS SERVICES (F&E 02/44)

The Committee:

ireceived the 2001/2002 Annual Report for Procurement & Business Services

iiresolved that a report on the activities of Procurement & Business Services be considered annually by the Committee.

02/61INTELLECTUAL PROPERTY POLICY (F&E 02/45)

02/61.1The Committee considered a draft Intellectual Property Policy comprising two documents:

(i)the Policy on Exploitation of Intellectual Property

(ii)an Operational Guide for Staff and Post-Graduate Students.

02/61.2It was noted that the proposed Policy confirmed that, apart from a few exceptional circumstances, intellectual property is owned by the University. The Committee further noted that, prior to its submission to the Committee, the Policy had previously been considered by the Research Committee, the Research Degrees Committee and Academic Council and the concerns arising from these deliberations had been addressed in the draft Policy.

02/61.3The Committee noted that where individual arrangements had already been made for the exploitation of IP, these would stand. The Committee was concerned that staff should be given the opportunity to declare any intellectual property which still had the potential to generate income and agreed that it was prudent to allow a period of grace for all such declarations.

02/61.4The Committee agreed to recommend to Court that:

(i)the draft Intellectual Property Policy be approved for implementation w.e.f. 1st April 2003 subject to the following amendments:

-clarification of the reference to the default position in para 2.2

-the threshold levels in para 10 to be altered to £0-£50,000, £50,001-£200,000 and £200,001+

-the removal of all references to UGMT.

(ii)in the event that the Policy was approved, staff should be granted a period of grace until 1st August 2003 in which to declare pre-existing intellectual property which would be considered in the light of the framework of the new Policy.

02/62TELECOMMUNICATIONS INSTALLATION – FORTY FOOT WAY, AVERY HILL CAMPUS – GRANT OF LEASE (F&E 02/46)

Noting that planning permission had been granted, the Committee agreed to recommend to Court that the Director of Estates be authorised to complete negotiations with Walden Telecom Limited to enable a lease to be granted of a small area of land in Forty Foot Way for a telecommunications installation, for a fee of £10,000 pa to expire on 31st December 2021.

02/63UNIVERSITY WIDE HEFCE DISABILITY FUNDED WORKS (F&E 02/47)

The Committee:

inoted that, following a bid under the “Project Capital Round Two” heading of HEFCE Circular 01/48, an allocation of £642,894 disability capital had beeen awarded to the University

iinoted that, although a number of small works projects had been identified, there was a likelihood that some orders, in particular the works being undertaken on the provision of a lift in the Avery Hill Tower Block, would exceed £100,000

iiiagreed that delegated authoritybe granted to the University Secretary to approve, on behalf of Court, expenditures above £100,000 relating to the disability funded works projects.

02/64APPROVAL OF ORDERS OVER £100,000 (F&E 02/48)

02/64.1The Committee approved, subject to the relevant School or Department having sufficient funds for the purchase and subject to compliance with the University’s Financial and Tendering Regulations, the following purchase of items exceeding £100,000:

Estimated

Order Value

£’000

Dept of Earth & Environmental Sciences

7000 Bed-nights for VSM Summer School 193

Recruitment & Marketing

Undergraduate Prospectus (Printing, Delivery

& Storage) 2004/2005 135

02/64.2The Committee noted that, following the recent decision reached by the Adjudicator on the legal dispute between the University and its building contractors on the King William Internal Works, an Order Amendment form requesting an increase of over £100,000 (from £5,333,125.33 (£6,266.422.15 gross) to £5,546,534.38 (£6,517,177.90 gross) for payment to Sunley Turriff Construction was authorised in order to ensure that payment was received, as contractually necessary, by the contractor by 3rd March 2003.

The meeting ended at 7.40 pm.

T A Brighton

24 March 2003

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