MINUTES OF THE FINANCE COMMITTEE MEETING
MONDAY 3 MARCH 2014
Present / Eddie Sidgreaves (Chair), Ken Lee, Andrew Newton, Simon Partington, David Sherliker.
In attendance / Peter Snape (Clerk to the Corporation), Janet Ivill (Director of Finance), David Sharrock (Assistant Principal/Facilities, HSE)
Apologies / Peter Zak, Jill Gray.
Meeting began / 6.00pm / Status of Minutes / Approved / / % Attendance / 84%
Meeting closed / 7.22pm / Unapproved
1. / DECLARATION OF INTEREST
There were no declarations of interest.
2. / MINUTES OF MEETING HELD ON 18NOVEMBER 2013
2.1 / The minutes of this meeting were agreed and signed as a true record.
2.2 / Matters Arising
Item 14 SORP – A summary of the responses to each of the 12 consultation questions had been placed on governance moodle for governors to view. The consultation was considered by the SORP Board at its meeting on 18 December 2013.
Item 12 Property Strategy – The Director of Finance explained that the College needed to be flexible to respond to capital bidding opportunities and needed the freedom to present an updated property strategy at any point in time as need/opportunity arose. The Committee were very receptive to this idea but suggested that the property strategy approved by the Board remained so and any other updated strategy, as described, should be titled differently to differentiate it from the approved one. It was suggested that this document could be titled ‘aspirational property strategy’ for example. The Committee requested that any such document be circulated to them to keep them ‘in the loop’.
2.3 / For information only a copy of the Lancashire Work Based Executive Forum Report and Financial Statements for Year ended 31 July 2013 had been placed on governance for governors to view.
3. / FINANCIAL REPORT TO 31 JANUARY 2014
3.1 / The Director of Financepresented a detailed Financial Report for the month and six month period ended 31 January 2014and responded to questions and comments. Items questioned and discussed in greater detail included, income to date, pay costs, IS development costs, non-pay costs, Capital Projects and Student Loans. The Committee noted the summary of the most significant risks to finance as included in the College Risk Register.
3.2 / The operating surplus for the year to date was less than budget but it was expected that a year-end surplus as contained in the report would be achieved.
3.3 / Financial health based on the year to date was good. The Director of Finance confirmed that the year-end grading was forecast to be ‘good’.
RESOLVED:
3.4 / The Committee noted the report.
4. / 2014/2015 FUNDING AND BUDGET PLANNING
4.1 / The Director of Finance presented a paper which set out the challenges facing the College in the current annual budgeting and business planning process and to determine applicable objectives for the 2014/2015 budget.
The paper summarised the main issues relating to the EFA (Education Funding Agency), SFA (Skills Funding Agency) and HE funding and included a funding estimation spreadsheet. The Committee carefully considered the analysis as background to the annual budgeting and business planning process. It was expected that indicative funding allocations would be released by the funding bodies soon.
The paper included the financial parameters for the Performance Ratio (operating surplus), Current Ratio and Gearing that would maintain good financial health and comfortably satisfy covenants whilst continuing to reduce gearing.
The Committee noted that at the Strategic Corporation Board Meeting on 24 March, they would be discussing the implications of maintaining strong financial health in the financial year 2014/2015. By implication therefore, some thought would have to be given to budgeting for a satisfactory financial health grade.
The Committee accepted the risk ratings given to the five risks identified in the Risk Register.
4.2 / The Centre for Essential Employability Skills (Patterdale) and the Science and Engineering Centre at Euxton Lane (dependent upon receiving additional grant funding) will be included in the budget and two year forecast, as SFA grant support had already been approved.
RESOLVED:
4.3 / The Committee approved the financial objectives for 2014/2015as set out in Section 9 the paper.
4.4 / The committee request that they be informed of the final funding allocations provided by the EFA and SFA when received.
4.5 / The Committee ratify the decision to include the Centre for Essential Employability Skills (Patterdale) and the Science and Engineering Centre at Euxton Lane in the 2014/2015 budget plan.
5. / ESTATES PROJECTS UPDATE REPORT
5.1 / The Assistant Principal/Facilities/HSE presented a progress report on current major projects, general major refurbishments and potential future projects. The Committee were satisfied with the progress detailed and noted the medium risk rating allocated to the projects in the risk register.
RESOLVED:
5.2 / The Committee noted the report.
6. / FINANCIAL REGULATIONS
6.1 / The Financial Regulations had been updated to keep them in line with current working practices, management structures, updated legislation and best practice. The Director of Finance briefed the Committee on the key changes.
RESOLVED:
6.2 / The Committee approved the proposed updates to the Financial Regulations.
7. / AUTHORISED SIGNATORIES (Bank Mandate)
7.1 / The Committee had approved the Bank Mandate at their meeting in November but had requested that it be re-considered for the inclusion of Deputy Principal signatures. The Director of Finance presented a revised version that now included the three Deputy Principals.
RESOLVED:
7.2 / The Committee ratified the updated Bank Mandate list.
8. / SUB-CONTRACTED PROVISION (with Discover Consulting and Training) Report
8.1 / The Corporation Board had agreed to enter into a sub-contracting arrangement with Discover Consulting and Training subject to satisfactory pre-contract scrutiny. The Director of Finance presented a report which provided the Committee with a financial review to date. This allowed the Committee to assure themselves of the financial standing of the provision. The Director of Finance informed the Committee that a similar report covering teaching and learning considerations was to be presented to the Standards and Curriculum Committee on 7 March.
8.2 / A question was raised about the due diligence process undertaken and whether the College now had a documented process it could use in other such situations. The Director of Finance explained the new requirements set out by the SFA for such ventures and that these would inform and amendthe current model used by the College.
8.3 / The Committee considered the performance table noting enrolments, funding, costs and gross contribution.
RESOLVED:
8.4 / The Committee noted the report and ratified the risk rating of the provision as set out in the College Risk Register.
9. / RISK REGISTER FEBRUARY 2014
9.1 / The Director of Finance presented sections 13-16 of the College Risk Register and risk monitoring report to the Committee and engaged in a question and answer session on the high priority risks and notable events during the month of January.
RESOLVED:
9.2 / The Committee accepted sections 13-16 of the Risk Register
10. / STRATEGIC PLAN 2013/2014 MONITORING REPORTS
10.1 / The Information Management, Health, Safety, Wellbeing and Sustainability, Estates and Finance chapters of the Strategic Plan which set out key actions required and indicated progress to date with them were discussed and questioned by the committee.
10.2 / Of particular note for question and discussion were the following points:
- Current IS projects and prioritising issues (Information Management)
- Carbon Footprint, Waste (Voltage Project), Living Smart Programme and EnvironmentalChampions (Sustainability).
RESOLVED:
10.3 / The Committee noted the Strategic Plan 2013/2014 Monitoring Reports and the related questions and discussion.
10.4 / The Committee requested a short report on Information Management action 13.2 to give them further understanding on the strategic direction of Information Management in the College.
11. / NEXT MEETING
Monday 23 June 2014 at 6.00pm
12. / TEAM SELF REVIEW
The results are attached to these minutes.
13. / AOB
13.1 / At the end of the meeting the Chairman of the Corporation informed Committee that the Chairman of the Committee, Eddie Sidgreaves would be leaving the Board at the end of July. As a result of the on-going succession planning exercise to identify future Committee Chairs, it was proposed that Ken Lee be appointed Chair of the Committee as from 1 August 2014. If acceptable to the Committee, this recommendation would be proposed for approval by the Board at their next meeting.
Ken and Eddie agreed that they would work together over the remaining period to effect a seamless change over.
RESOLVED:
13.2 / Finance Committee members supported and approved the recommendation.
Signed:
Chairman
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