Preston College – Board Meeting15 July 2010
Minutes
BOARD MEETING
MINUTES of the meeting held on Thursday 15 July 2010
Present:
GovernorsMr M I Haythornthwaite (Chair)
Mr R Bamford
Mrs A J Barton
Mr E Bassa
Mr D S Connolly
Dr E Hamilton
Miss S Johnson
Mr M Mallam
Mr S J McManamon
Mr C Memmott
Mrs C Saunders
Cllr T Thompson
Mrs C Wilson
Mr W MillsPrincipal
Mrs A RitchieStaff Member - Support
Mr H RoseStaff Member - Academic
Mr S LordStudent Member
Clerk Mr F Lee
Assistant ClerkMrs S Wignall
Officers:Mrs J HughesCollege Management
Mrs S WoolfordCollege Management
Mrs N ClaytonCollege Management Mr M Fawcett College Management
Mrs J HewittCollege Management
Mr R Newton-SymsCollege Management Dr J Thompson College Management
Mr S WoodburnCollege Management
Unable to Attend:Mr C Speight
Mr E BlandStudent Member
FACULTY PRESENTATION
Dr Thompson and Mr Turton gave a presentation on the Visual and Performing Arts.
10/11DECLARATION OF INTEREST
There were no declarations made at this meeting.
10/12MINUTES
The Minutes of the meeting held on 25 March 2010 were accepted as a true record and signed by the Chairman.
10/13PRINCIPAL’S REPORT
The Principal submitted his report which highlighted:
- major changes in the environment in which the College operated by the introduction of 3 new funding agencies;
- the new ministerial team;
- public expenditure cuts of 25% in real terms from 2011-2014/5 coupled with a pay freeze;
- £50m of the £200m transferred out of Train to Gain in 2010 had been made available to support capital projects;
- reduced allocations for 2010/11 which had led to a major restructuring of staff:
- Capital allocation for estate renewals
- Student success levels
DECISIONthat the report be noted
a)Estate Development
The Principal reported the urgency of the College securing capital funding to facilitate a relocation of the Visual and Performing Arts from Park Campus to the Fulwood estate. He outlined the funding required and the sources available particularly in respect of match funding and borrowing. This proposal would add to the overall strategy for the redevelopment of the Fulwood Campus. The Director of Finance was confident that the College would be able to fund this project.
DECISIONthat the Board support, in principle, a submission as outlined to the meeting.
b)Prime Minister’s Global Fellowship 2010
The Principal reported that Mr Simon Lord had been selected for this prestigious award which would enable him to spend some time in India. The Board congratulated him on this achievement and would like to have a copy of his report on this visit.
c)Student Governor of the Year Award
Mr Simon Lord had also achieved the Student Governor of the Year Award. The Board congratulated him on this achievement.
d)Retention and Success Rates
The Board congratulated staff on their efforts over the last academic year.
10/14STAFFING
Restructuring
The Principal submitted a report which gave an update on progress towards achieving the required reduction in staffing numbers and associated costs which he said was required to address reduced financial allocations from the Skills Funding Agency for the year 2010/11 and changes in funding priorities.
On 29 March 2010 an HR1 notice was issued to the relevant government department and a Section 188 letter sent to recognised trade unions. Those detailed College plans to make 41 Business Support, 13 managers and 44 lecturing staff redundant.
The report gave details of the number of staff affected and also set out the management structure where there were no major alterations. However, the Retail Academy had been absorbed within the renamed Business and Commercial Enterprise team. The Trade Union Education Unit and ICT had been discontinued on the grounds of financial viability.
The College would continue to make available in 2010/11 a broad and diverse curriculum offer and class sizes would increase to achieve the efficiency savings required.
The College staffing numbers would reduce from 1020 to 897.
DECISION
a)that the report be noted;
b)that the Principal circulate detailed changes in Faculties following the restructuring.
10/15BUDGET – 2010/2011
The Director of Finance submitted a paper which set out the revenue, capital and cash estimates for the College for 2010/2011. The overall proposal was that the College should plan to achieve a surplus of £1m. The Finance and Property Committee had recommended this Budget to the Board, whilst noting the level ofuncertainty surrounding next year’s income as a result of the change of government. Since the meeting of that Committee the Department for Business, Innovation and Skills and the Skills Funding Agency had published the Government’s initial intentions for the FE sector in 2010/11. Those indicated that, whilst there would be some reprioritisation of funding (e.g. from Train2Gain to Apprenticeships) there did not seem to be any overall plan to reduce allocations below levels already announced. On that basis, no material changes had been made to the Budget proposal.
The Director of Finance confirmed that the residual risk had now moved from high to medium.
DECISIONthat the Budget for 2010/2011 be approved as set out in Appendix 1 to these Minutes.
10/16FINANCIAL PLAN2010-2015
A draft Financial Plan for 2010-2015 was submitted to the meeting the chief objective of which was to achieve a “Good” Financial Health rating by 2015. Year 1 of the proposal matched the budget proposal for 2010/11. In the absence of any specific allocations guidance beyond July 2011, Years 2-5 had been modelled on steady state income assumptions. However, the Board noted that those assumptions were likely to require substantial review following the impending government spending review.
DECISION
a)that the Financial Plan be approved;
b)that the Plan be reviewed at the Board meeting in December 2010 to take account of any changes that might be required as a result of the autumn spending review.
10/17STRATEGIC PLANNING UPDATE
The Deputy Principal submitted a report which gave an update on the progress being made on the Strategic Plan Action Plan which identified the actions, with due dates between April and July, and reported on progress and activities. The Board noted that all actions had been addressed and brief details of those actions were provided.
In future the Board would wish to see the Actions within the overarching five Strategic Aims and how these were being achieved in terms of results.
DECISIONthat progress on the Strategic Plan Action Plan be noted.
10/18FURTHER EDUCATION – A CHANGING LANDSCAPE
The Principal submitted a paper on the changing landscape of further education and the opportunities and threats that that posed for the College as greater funding challenges emerged.
The Board gave consideration to the discussion points which had been set out in the report and supported further work being commissioned to evaluate strategic options for the College.
DECISIONthat further work be undertaken to evaluate strategic options on this subject and a report be submitted to the Board meeting in December 2010.
10/19COMMITTEES
a)Minutes
The Minutes of the following Committees were submitted to the meeting:
i)Employment Policy Committee 6 May 2010
ii)Search and Governance Committee 6 May 2010
iii)Remuneration Committee 6 May 2010
iv)Students, Quality and Standards Committee 13 May 2010
v)Audit Committee 20 May 2010
vi)Finance and Property Committee 10 June 2010
In respect of Minute 10/15 of the Finance and Property Committee where questions were asked the Board resolved to take that matter in Part 2 of the meeting because of confidential aspects of the sale of land.
DECISIONthat the Minutes of the above Committees be received and the recommendations contained therein, with the exception of Minute 10/15 referred to above, be confirmed.
b)Membership and Appointments
The Clerk referred to a number of changes to the membership of Committees and to the Chairmanship of the Finance and Property Committee which had been approved by the Chairman of the Board.
i)Audit Committee
Mrs C Wilson be appointed a member.
ii)Finance and Property Committee
Mr E Bassa be appointed Chairman
Mr R Bamford be appointed a member
DECISIONthat the Chairman’s actions be noted.
10/20STAFF GOVERNOR
Mr Henry Rose
The Chairman referred to the fact that this meeting would be the last that Mr Henry Rose would be attending as his term of office would expire on 31 July 2010. The Chairman thanked Mr Rose for his contributions to the work of the Board and wished him well for the future.
DECISIONthat Mr Henry Rose be thanked for his work for the Board.
10/21STUDENT GONERNOR
The Chairman referred to the fact that this meeting would be the last that Mr Simon Lord would be attending as his term of office would expire on 31 July 2010. The Chairman thanked Mr Lord for his contribution to the work of the Board and wished him well for the future.
DECISIONthat Mr Simon Lord be thanked for his work for the Board.
10/22BANK MANDATE
DECISION
a)that the Bank Mandate be amended to comply with the current approved Financial Regulations and the revised structure of the Finance Team;
b)that the Chairman of the Board be authorised to sign the necessary document to that effect.
10/23PART 2 Item
10/24PART 2 Item
(the meeting finished at 8.45 pm)
DATE OF NEXT MEETING30 SEPTEMBER 2010
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Preston College – Board Meeting15 July 2010
Minutes
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