CONFIRMEDMINUTES
Present :Mr J Dawson (Chair), Mr P Cropper, Ms A Williams, Ms J Pryce and Mr P Hume
In attendance :Mr A Shaw, Mr R Lewis* (Baker Tilly) and Ms L Randall* (Baker Tilly Business Services Ltd). Auditors* present for items 9 and 10 only.
ClerkMrs C Coupland
- APOLOGIES FOR ABSENCE/DECLARATION OF INTERESTS
Apologies were received from Mr G Craik.
Given role specific audit responsibilities, Ms J Pryce (staff Governor) declared an interest for agenda items 9 and 10. The Committee agreed it appropriate for her to leave the meeting when the items are to be jointly considered with the Audit Committee.
- MINUTES OF THE MEETING HELD ON 14th October 2013.
Resolved
- That the minutes be accepted as a correct record, subject to minor amendment.
- MATTERS ARISING:
-Salendine Nook High School (SNHS) usage agreement
.
Mr Shaw advised the Committee that there had been no change in circumstances since members last met.
-Finalised College Transport Provision:
Mr Shaw advised the Committee that students affected by the withdrawal of the bus service from Denby Dale had been advised as to the reasons for this decision. A metro card had also been issued to these students to assist with alternative travel arrangements. The Committee was satisfied by the Senior Leadership’s response however agreed it appropriate for follow up meetings to take place, in June 2014, with the small number of students continuing to year 13.
-Bus Bay Area.
Mr Shaw advised the Committee that he and Ms Smithson were to meet with the Kirklees Highways officer tomorrow, to consider the outcome report on how best to maximise student safety on all internal roadways throughout the campus, as tasked to do so by the Committee at the last meeting.
Mr Shaw informed members that the initial indication of cost to improve safety throughout the College campus is approximately £187k.Salendine Nook High School has been consulted on the proposed improvements to the Bus Bay area. The College has been advised by the School’s governing body that it is unable to contribute financially towards this project.
As advised at the last meeting, any works undertaken will need to be staged and predominately completed during holidays which may be as early as Easter 2014. Members therefore agreed it appropriate to establish a sub-committee to oversee the project. It was agreed for the Sub-Committee to comprise of:
-Ms Smithson (Deputy Principal – Student Experience)
-Mr Shaw (Assistant Principal – Finance & Estates)
-Mr P Hume (Chair of the Corporation and F&R Committee representative).
From discussions, Members were of the opinion that perhaps the brief for Kirklees Highways may need to incorporate broader issues such as how to ease flow of traffic onto New Hey Road, as an integrated approach to student safety with the Local Authority would be more beneficial in the long term. The Committee acknowledged however the limitations to this which in particularly would delay any works being undertaken throughout the college. Members also appreciated that this was beyond the remit of the College and the initial brief issued to Kirklees Highways.
-Capital Projects:
Mr Shaw confirmed that all works had since been completed and to budget. The Committee wished to record their thanks to all staff involved.
- MANAGEMENT ACCOUNTS TO 31st October 2013.
The management accounts were considered and discussed. Mr Shaw advised the committee that the Colleges’ cash forecast for July 2014 remains just above the budget at £2,086k. Reasons for the variances from the budget of £2,079k were outlined to the Committee which included a £261k higher underlying cash figure as at 31 July 2013 than forecast, offset by:
-£80k more transport costs, due to changed supplier
-£180k 2013-14 Property Strategy costs put initially aside for the bus bay development.
The Income and Expenditure account shows that the surplus is expected to be slightly above the budget of £458k, at £490k. This is after reducing the restructuring contingency by £65k and relocating these funds to the developmentcontingency increasing it to £165k. The Committee was also informed that the increase in the I&E account is due mainly to the extra £2million of Buildings Valuation from July 2013, being released at £40k per year over the next 50 years.
Members were advised that the student retention is holding up well after the positive enrolment. As at 2nd December 2013, the number retained from the enrolled 2473 is 2365, which is slightly above the funded number of 2361.
The Committee was also informed that the national 1% pay award for all staff from November 2013 had been backdated to 1st September 2013.
Mr Shaw advised the Committee that a draft forecast for 2014 – 17 is being prepared despite the funding methodology remaining unknown. Mr Shaw confirmed however that EFA funding for 2014-15 will probably take effect of the latest comprehensive review. It was therefore agreed beneficial for Mr Shaw to present a draft financial forecast at the next committee meeting inorder for members to shape what is presented to the Corporation in the summer.
The Committee was also mindful of the ever changing external context and its implications for the continued viability of the College’s financial parameters (set until July 2015); in particular:
- Generating operating surpluses wherever possible, but at least break even across the planning period, with cash inflows from operating activities each year.
- Maintaining staff costs at a maximum level of 70% of income (excluding re-structuring costs) until 2014-15.
- Maintaining cash at above £1.4 million until 2015-16.
- Maintain the financial health at just above the ‘Outstanding’ category for the whole period.
It was therefore agreed appropriate to also review the financial targets from 2014-15 at the next meeting, in light of the draft financial forecast submitted for consideration.
Resolved:
- That the report be accepted
- For the College to be congratulated on exceeding student numbers target.
- For the draft financial forecast 2014-17 to be submitted for consideration at the next F&R Meeting.
- For the Committee to review the existing financial targets (set until July 2015) in light of the draft financial forecast 2014-17.
- TREASURY MANAGEMENT POLICY
Mr Shaw advised the Committee that no amendments are required to the existing Policy. The Committee also agreed with Mr Shaw’s proposed strategy to money movement in respect of the deposits maturing.
Resolved:
- That the report be received.
- ANY OTHER BUSINESS
There was no further business
- DETERMINATION OF CONFIDENTIALITY
No items were determined as confidential.
- Date of next meeting: Monday 31st March 2013 at 5pm.
Ms Pryce left the meeting.
Members of the Audit Committee joined the meeting.
- Financial Statements and Members Report 31st July 2013.
(Joint agenda item with the Audit Committee; item chaired by Mr J Dawson).
The Financial Statements were considered in detail. As a result of work undertaken, unqualified audit opinions were received from Baker Tilly showing that:
In relation to the financial statements, they
• give a true and fair view of the state of the College’s affairs as at 31 July 2013 and of the College’s surplus of income over expenditure for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally
Accepted Accounting Practice.
And that
• proper accounting records have been kept;
• the financial statements are in agreement with the accounting records.
In relation to Regularity, Baker Tilly are of the opinion that the expenditure disbursed and income received during the year ended 31 July 2013 have been applied to purposes intended by Parliament and the financial transactions conform to the authorities which govern them.
It was also noted that the financial health category of the College had been maintained at ‘Outstanding’, and that this grading was confirmed by the EFA in November 2013.
Based on the Annual Report and the Financial Statements, members agreed that the Corporation can be assured that the College has an adequate and effective framework for governance, risk management and control and has fulfilled its statutory responsibility for ‘the effective and efficient use of resources, the solvency of the institution and the safeguarding of their assets’.
10.The Final audit findings report
(Joint agenda item with the Audit Committee; item chaired by Mr J Dawson)
The Final Audit Findings Report summarises Baker Tilly’s key findings in connection with the audit of the financial statements of the College and the regularity audit of the College in respect of the year ended 31st July 2013.
Mr Lewis drew the following items to Member’s attention prior to the approval of the financial statements:
- There were no audit and accounting issues identified during the audit of the College that were not addressed at the planning stage and highlighted in Baker Tilly’s Audit Strategy.
- There were minor adjustments made to the Financial Statements; these were re-allocations between Balance Sheet headings and additional disclosures to improve presentation.
- There were no significant deficiencies in internal control which came to the attention of Baker Tilly during the course of their audit work
- That the accounting policies adopted by the College are appropriate for the circumstances of the College and consistent with the FE sector.
Resolved:
- To record the Committee’s thanks to Mr Shaw and his Team for the quality of their work, as endorsed by the External Auditors.
- To recommend the Financial Statements and Members’ Report for approval by the Corporation.
- To forward the Financial Statements and Members’ Report to the EFA following approval by the Corporation.
- That the Final Audit Findings Report be recommended for approval by the Corporation.
- That the letter of representation be recommended for approval
by the Corporation and signed by the Chair and the Principal.
The business of the Finance and the Resources Committee was concluded and members left the meeting.
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