Present:Mr J Dawson (Chair), Ms J Pryce, Mr P Cropper and Ms T Wright (Attendance 80%)

Confirmed Minutes

Present:Mr J Dawson (Chair), Ms J Pryce, Mr P Cropper and Ms T Wright (attendance 80%)

In attendance: Mr A Shaw and Mr M Hirst (for items 4 and 5 only)

Clerk: Mrs C Coupland

1. Apologies for Absence/ Declaration of Interest

Apologies were received by Ms A Williams

There were no declarations of interest recorded.

1. Minutes from Meeting held on20th June 2016

Resolved:

• That the minutes be accepted as a correct record

1. Matters arising

Annual budget 2016/17

The Clerk confirmed that an email with additional information and assurance on the reasonableness of the apprentice levy was sent to all members on 27th June 2016 on behalf of Mr Shaw. Attached to the email was also the tax office note.

Resolved:

That the information be received.

Fees and Charges Policy.

Mr Shaw re-presented the Fees and Charges Policy to the Committee. An additional amendment has since been proposed by the Senior Leadership Team; to increase the fees for HEFCE funded courses from £4,000 to £5,995. Mr Shaw and Ms Pryce explained that the rationale for the increased fee is that the additional monies will cover the £1,000per student to be paid to UCLAN and to also allow the college to invest in resources for this sports course. Full time HEFEC learners may also be charged the appropriate costed rate for additional support if their initial agreed assessment needs suggest this is required. Students with high needs will however be exempt from this clause.

Resolved:

That the Fees and Charges Policy be approved.

1. Health & Safety Annual Report

Mr Hirst presented the annual H&S report for year end 31 July 2016.

The Governors noted that there had continued to be a downward trend in the total number of accidents reported (excluding illness and outside college), furthermore since the midyear report presented in March 2016, there had been no further reportable instances under RIDDOR.

The Committee was satisfied that the College continues to risk assess all educational trips and visits (142 trips including 3 overseas). Mr Hirst provided additional information on the number of other types of assessments also completed for students and students during 2015/16 – as requested by the Committee in March 2016. The Committee asked for the next mid-year report to also include a short narrative commentary on whether any injuries /accidents obtained outside college and outside college hours had prompted any safeguarding referrals. Mr Hirst agreed to this and confirmed that of the 57 other/off site injuries currently cited in the report only 1 referral was necessary.

Members acknowledged that the College continues to invest in health and safety as evidenced by the updates included within the report and the accident analysis. Assurance was also provided within Mr Hirst’s report on the level and type of staff training undertaken throughout the academic year. The Governors were pleased to note that the number of trained Fire Marshalls had increased to 26 and that the last fire evacuation undertaken in September 2016 was successful with high risk students located to best assembly area for their needs.

Resolved:

• That the report be received
• For future H&S reports to provide a short commentary on any safeguarding referrals made in light of first aid assistance required for injuries obtained outside of college and outside of college hours.

1. Board Assurance Framework : Maintaining compliance with H&S Legislation

The committee is satisfied that the college continues to invest in health and safety and that staff follow procedures to minimise risk throughout the college.

From the wealth of information captured within the assurance report and from the robust discussion that followed, members were satisfied that the existing controls in place are adequate and effective and in proportion to the individual risk being managed.

Members agreed that an overall green assurance level shall continue to be assigned to this particular risk.

Resolved:

• To assign green overall assurance to the risk
• For the Clerk to update the Master BAF

Mr Hirst left the meeting at this point.

1. Year End Management Accounts – July 2016

Mr Shaw presented the management accounts for July 2016, the final month of the 2015-16 financial year, which will form the basis of the annual financial statements.

It was noted that the latest forecast cash as atJuly 2016 of £2,579k, was being £419k above the budget. This is £253k higher than reported at the last meeting. The major reasons for the above budget position aremainly due to higher surplus (ignoring cash items) unspent contingencies and timing differences on Capital projects. As referred to in the September 2016 management accounts, the underlying cash position would be £173k higher as at July 2016 than shown in the forecast for 2016-18.

The Income and Expenditure account shows the out-turn surplus of £172k, being £108k below the budget of £280k. However, this has been adversely affected by £204k of uncontrollable non-cash costs mainly associated with the WYPF pension scheme (for the 88 support staff members.). Mr Shaw also explained additional reasons for this amongst them being non-cash items and rolling forward some income into 2016-17. The Committee was satisfied by this explanation.

It was further noted by the Committee that the £86k severances in the year had made net savings of £103k, well within a 12 month payback period.

Members were informed that the WYPF deficit has again fluctuated significantly by increasing by 70% to £3242k. Mr Shaw reminded the Committee that this is beyond the control of the College, but major factors include increased liabilities due to worsening assumptions such as the discount rate used. This could fluctuate significantly again in 2017 and onwards. Mr Shaw advised members that the employer contribution rate of 14.5% is also being reviewed at the moment, and this may increase from April 2017 to help reduce the deficit; a 50% increase in the rate could add £100k to the employer cost. Mr Shaw agreed to keep the committee informed.

Mr Shaw also took this opportunity to inform Members that the new accounting standard (FRS102)has been applied to the July 2016 figures. The effect on the College is to:

• add another £408k of liabilities into Creditors < 1 year (effectively a large element of August 2016 pay during the Summer holidays)
• categorise deferred grants as liabilities, with an amount of £176k included in Creditors < 1 year (this is effectively capital grants received in the past, which are being released to income over the useful life of the assets (in the main 50 years for buildings). The main balancing element of the deferred grants is then included in Creditors > 1 year

Resolved:

• That the report be received
• For Mr Shaw to update members on the WYPF employer contribution rate at the next meeting.

1. Management Accounts – September 2016

Mr Shaw presented the management accounts to September 2016.

The Committee was advised that all current targets are expected to be at least met by July 2017 and that the latest forecast cash position as at July 2017 of £2,234k is £27k above the budget. Variances from the budget of £2,207k were considered by members, these were:

• the £173k extra underlying position as at 31 July 2016,
• Extra £4k surplus showing to date for 2016-17
• Extra £50k contingency allowed for 2016-17 (up to £150k)
• Extra £100k to property strategy costs (up to £190k)

It was agreed appropriate for the Senior Leadership Team to inform the committee of spending from the extra contingency and property strategy funds.

The Committee was also informed that the Income and Expenditure account shows that the surplus is expected to be £4k above the budget of £20k.

Mr Shaw confirmed that student recruitment is at 2431 which is currently on par with last year and on target to maintain 2350 by day 42(17th October), thereby also fixing lagged funding numbers for 2017-18.

Mr Shaw advised members that the Retention factor from 2015-16 shows 97.8% which will generate £60k more funding in 2017-18. Members were however informed that recalculating disadvantage funding for colleges could reduce the 2017-18 funding by £95k if the new rates are implemented.

Mr Shaw confirmed to members that the draft forecast will be formulated based on Day 42 student numbers, the £4000 per student, the 2015-16 retention factor, revised disadvantage rates & other EFA funding factors once they become clear.

Mr Shaw also took this opportunity toadvise the Committee that additional catering facility options are being considered, which will be fully funded by Taylor Shaw. Options will be consulted through the student union, with the aim to improve facilities, reduce queuing times and increase student access. Members welcomed this.

Resolved:

• That the report be received
• For Mr Shaw to draft 2017-19 financial forecast, based on Day 42 2016-17 actual student numbers when this is realised.

1. EFA Conditions of Funding.

Mr Shaw presented to the Committee the conditions of funding agreement for 2016 – 17 between the college and the secretary of statefor education. The EFA Conditions of Funding set out the terms and conditions by which the EFA funds Services in Sixth Form Colleges and is referred to in, and form an Appendix to the College’s own Financial Regulations. Members noted that the Conditions are updated annually and released in the summer, thus are not available to discuss at the same time as the updated Financial Regulations in June.

Resolved:

• To receive the report

1. Any other Business.

Staff Pay Award

Members were advised that to date pay award negotiationsfor teaching and support staff continue. A one per cent pay increase on all points of the NJC pay scales for teaching and support staff from 01 September 2016 has however been allowed for within the budget, should this be the outcome of the negotiations. The Committee asked to be kept informed.

1. Learner Impact Reflection

The impact of discussions and scrutiny of the Committee’s work in improving the outcomes and experience for all learners was considered and the following agreed:

• Ensuring the health andsafety of all learners and their activities and environments.
• Ability to financially support all elements of the strategic plan for the college.
• Ensuring the Financial viability of the college to continue to provide outstanding outcomes and learning experiences for future students.
• Listening and responding to the Student Voice to ensure the continuous and ongoing improvement of the college
• Providing competitive L4 provision at HNC enables students to participate in HE in their local community
• Assurance that the college remains complaint to the conditions of the Funding Agreement and that the colleges funds are used appropriately to benefit all learners.

1. Determination of confidentiality

For all supporting papers relating to item 5 to be deemed confidential.

11. Date of next meeting: Monday 28th December 2016 from 5pm (to be joined by Audit Committee at 6.15pm

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