Minutes of the Thirteenth Meeting of the Resources Committee of the City of Sunderland College held at 3.30pm on Tuesday 17 January 2012 in Room 614 at the Shiney Row Campus

PRESENT: Mr R Edmonds, Mr I Forster (Chairman), Mrs A Lawson-McLean, Ms A O’Donoghue, Mr M Ridley.

IN ATTENDANCE: Mr D Howells, Mr G Blench (for item R/12/05), Mrs J Ridley. CLERK: Ms R Ferguson (Dickinson-Dees)

R/12/01 APOLOGIES FOR ABSENCE

Apologies for absence were received from Ms S Atkinson and Mr A Carter.

R/12/02 MINUTES OF THE PREVIOUS MEETING OF 4 OCTOBER 2011

The minutes were accepted as an accurate record.

R/12/03 MATTERS ARISING THEREFROM

i. R/11/76 – Report and Financial StatementsThe Vice Principal Finance gave a verbal update on adjustments to the year end accounts following receipt of the SFA funding statement on 16 December 2011.

The SFA funding statement indicated that:- the College had achieved its overall delivery target across 19+

funding lines and no claw back of funding would be made- the College had over delivered by £227k on its Additional Learner

Support Funding which the SFA were going to pay

Following discussions with with the financial statements auditors the accounts were amended to reflect the uplift in ALS income. It was agreed that the amendments were not material to the accounts, therefore the Chair was authorised to sign them under the Board resolution of 13 December 2011.

The Committee:

received the update acknowledging that a full report on the actions taken had been sent to all Governors via email.

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R/12/04 BUDGETARY CONTROL STATEMENTS AND BUDGET UPDATE

The Vice Principal Finance presented a combined report setting out the budgetary control statements for the four months ended 30 November 2011 and a budget update for the financial year 2001/12.

It was noted that the income and expenditure account was showing an operating surplus of £927k after providing £120k for potential contingencies. The significant variances were outlined in full in the commentary attached as Annex 1 to the report. The Vice Principal assured members that the budget continued to be prudently set and that management were confident that the College would achieve its strategic aim of delivering an underlying operating surplus of 5% by 31 July 2012.

In response to questions raised by Governors, the Vice Principal Finance explained the following: The College was a vehicle for the receipt and and distribution of

funding in relation to the Shared Services Project. This was excluded from the budget until there was more certainty regarding the future of the project.

The profit in relation to COSC Supplies was due to a timing issue as re-charges were due to be levied by the College. Whilst Blue Square was no longer used as a recruitment agency a decision would be taken in the Autumn whether to mothball the company or to utilise it for another purpose. In the meantime it is still deemed to be trading and some of its staff and contracts are still to be transferred .

It was intended to fill the teaching staff vacancies however it was acknowledged that it was difficult to find good maths teachers.

It had been necessary to change the signage to refresh and change the overall image of the College and to reflect the new branding. It also creates a ‘one college’ ethos across the campuses.

The Chair explained that Shirley Atkinson who could not be present at the meeting had emailed her comments. The Vice Principal confirmed that her concerns regarding the funding of HE courses had been picked up in the report on Tuition Fees which was next on the agenda.

The Committee

received the budgetary control statements and budget update.

R/12/05 COLLEGE TUITION AND RELATED FEES FOR FE AND HE LEVEL PROVISION

The Vice Principal Finance presented the report setting out the proposed tuition fee levels to be charged in 2012/13 and the Assistant Principal for Higher Education gave an update in relation to HE.

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It was noted that 2012/13 uncertainty was further enhanced by emerging evidence about demand for HE in 2012. Whilst this income stream is not the largest in College it is nonetheless very significant and market developments must be taken into account as part of 2012/13 fee setting and budget setting.

Discussion ensued about actions the College might take in relation to fees and its broader approach to the HE market generally. In terms of fees it was acknowledged that the college would need to plan for a lower intake and contribution than had previously been the case and that the College would need to balance a reduction in the level of contribution with the need to maintain course accessibility. More information about this approach and the College’s approach towards the HE market generally would be set out in the forthcoming HE Strategy.

It was noted that the University funded numbers for HE fee levels had been submitted and approved by the Office for Fair Access (OFFA) so there was no ability to further change those.

In response to a question from Governors It was agreed that fee waivers would be kept under review and reported to Governors where necessary.

The Committee approved the following fee proposals:

1. Students who are eligible for Skills Funding Agency tuition fees remission continue to have their tuition fees remitted, as previously

2. Tuition fees be set in line with Skills Funding Agency assumptions but with the caveat that the College can set alternative rates to respond to market forces or competition from other institutions

3. Tuition related fees such as examination and assessment fees be charged to all students in 2012/13

4. Tuition fees for full time HE franchised courses be set in line with those of the University.

5. For directly funded full time HE courses and part time HE courses, fee rates be set by the College to minimise the financial impact of changes within the HE funding regime, however with the caveat that the College can set alternative rates to respond to market forces or competition from other institutions

6. The Vice Principal (Curriculum and Student Support) be authorised to confirm the fees to be charged for International Activity dependent on each market and with each case considered on its merits, subject to the general condition that any fees payable would be no less than those paid by a domestic student.

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7. Authority be delegated to the Vice Principal (Curriculum and Student Support) to waive or amend fees where this is required due to market forces or in cases of individual hardship

G Blench left the meeting at 4.20pm

R/12/06 INITIAL FUNDING ALLOCATIONS

The Vice Principal Finance presented a report outlining the initial funding allocations for 2012/12 and projected implications on the curriculum.

In terms of 19+ funding, the indicative funding allocation from SFA was around £600k lower than the current level of adult funding. The College would be expected to deliver broadly the same volume of work for that reduced level of funding.

The College had not yet received an indicative allocation of 16-19 funding from the YPLA, and was not likely to do so until late January 2012. There were a number of major uncertainties to be cleared up before a clear picture emerges however, it was estimated that the College was likely to face a funding cut in the region of £1.5m - £2.5m.

It was noted that whilst the 2011/12 financial position looks healthy it is anticipated that the 2012/13 position will be much tighter. The College was already taking a number of actions and was conducting further planning necessary in order to deliver the planned 5% surplus. The Senior Management Team were currently considering a range of options and a Change Committee would be arranged in due course to discuss this in further detail.

The Committee:

noted the contents of the report.

R/12/07 TENDER WAIVER ANNUAL REPORT

The Vice Principal Finance presented the report advising Governors of procurement waivers issued in the twelve months 1 November 2010 to 31 October 2011. He assured the Committee that the waivers had been conducted in the correct manner.

Following questions from Governors it was noted that the number of waivers was not considered to be excessive. Management commented that there were no concerns as the procurement process was rigorous and that they wished to keep the threshold at £3,000 in order to retain a level of control over spending. It was noted that the appointment of the new

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Procurement Management would contribute towards reducing the number of waivers.

The Committee:

received the annual report.

R/12/08 REDUNDANCY POLICY

The Principal presented the report explaining that both Unison and UCU had considered the policy. The unions had agreed to the change to the appeals process that appeals resulting from redundancy would be heard by the Principal with a Governor acting in an objective role. A panel of Governors would continue to hear appeals in relation to grievances and dsciplinaries in line with the existing Appeals Procedure.

In relation to the removal of salary protection for staff who chose to accept a lower graded post as an alternative to redundancy, it was noted that legal advice confirmed that this policy was not contractutal and that the College had given the unions sufficient notice of implementation.

In response to a question from a Governor it was confirmed that employees are entitled to be accompanied at an appeal hearing by a trade union representative or a work colleague but not a legal representative.

The Committee:

i. noted the outcome of the consultation with the trade unions on the revised Redundancy Policy & Procedure

ii. recommended that the Board grant final approval for the Redundancy Policy and Procedure

R/12/09 IT UPDATE

The Vice Principal Finance gave a verbal update. He explained that there had been an issue regarding the CDMC role which had now been resolved by Turner & Townsend taking on the role. This had led to a delay of around 4 weeks and the project would need to be re-profiled to bring student critical work forward to minimise the impact on students. The project plan was being finalised ahead of a meeting of the Project Board on 21 st

February.

The Committee:

received the report.

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R/12/10 ESTATES UPDATE

The Vice Principal Finance gave a verbal update on the sale of the land at Newcastle Road, explaining that conditional contacts were due to be exchanged on 25 January and that work was under way with a view to achieving that deadline. The Chair assured members that everything was being done to expedite the sale.

It was noted that the College’s bid for £2m SFA capital grant funding had not been successful and it was unlikely that further funds would become available within the next few years. College Management were developing an affordable Estates Plan and were looking at costed options in relation to Bede and Hylton.

The Committee:

received the update.

R/12/11 HEALTH & WELBEING GROUP MINUTES

The Committee:

received the minutes noting the issues considered by the Health & Wellbeing Group.

R/12/12 ANY OTHER BUSINESS

The Vice Principal Finance reminded the Committee that Governors had given approval authorising two Senior Post Holders to sign any letters of variation in relation to the loan agreement with Barclays regarding Newcastle Road. As the sale of Newcastle Road was progressing towards the exchange of conditional contacts, Barclays had proposed to term the loan out and confirmed that early redemption fees would be waived on repayment of the loan. This proposal would negate the need to have letters of variation signed.

The Vice Principal Finance recommended that Governors approve the proposed course of action confirming that it did not lead to any new financial charges for the college.

The Committee:

approved the proposed course of action set out above.

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R/12/13 DATE, TIME AND VENUE OF NEXT MEETING

The next meeting will take place on Tuesday 13 March 2012 at 3.30pm in Room 614, Shiney Row Centre.

The meeting closed at 5.30pm.

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