50/23. Declarations of Interest
M. Hartland declared an interest as a parent of a student at the college.
51/23. Minutes of Meeting Held 26 September 2023 (Appendix – Agenda Item 3)
Resolved: That the Minutes of the meeting held on 26 September 2023, be approved as a true and correct record.
52/23. Matters Arising
The Committee Chair welcomed M. Hartland to his first committee meeting since his recent appointment.
53/23. Period 2 Management Accounts (Confidential Appendices - Agenda Item 7)
The Committee received the Period 2 Management Accounts and update (previously circulated). The Accounts had been circulated to all governors. The Committee was advised of other changes made as part of the P12 position.
The key issues and differences between the Budget and Forecast out-turn were:
Regarding Income
- Increased 16-18 Funding received reflected the revised 16-18 funding allocation. The college had recruited more students in 2023/24, and this would be reflected in an increase funding allocation for 2024/25. In response to a question, the P/CEO confirmed that, as the college had recruited more students, it would incur additional costs in delivery which would come out of the 2023-24 contingency. The college would automatically receive additional in-year growth funding due to the growth in student numbers, subject to a reduction for the under-recruitment in 2022-23.
- Reduced Higher Education (HE) and Learner loan income reflected the lower than forecast enrolments in HE to date.
- Full cost activity had commenced positively, with higher amounts invoiced than at this stage in previous years. Therefore, the forecast had been left equal to budget.
- £75k of “Multiply” contract activity had been included in the forecast.
Regarding Pay:
- Increased Pay costs assumed a 6.5% pay settlement as opposed to the 4% budgeted. The P/CEO reported that the National Joint Council (NJC) Committee for Teaching Staff in sixth form colleges had reached a pay agreement to take effect from 1st September 2023, of 6.5% for all teachers including those on the leadership scale. The NJC support staff pay award for 2023/24, was still in negotiation.
- Increased Pay costs had been added to accommodate the additional new posts required to support the increased groups and students for 2023/24.
Regarding Non-Pay:
- Exam costs continued to run ahead of plan, and phasing of the Budget was difficult to predict. However, the EDoF had taken a prudent approach to the estimation of costs and would continue to review the position throughout the year.
- Transport costs had increased due to the increased costs of operating a bus route. In response to a question, the EDoF explained that the costs had risen due to the increased rate charged by the new provider who had taken over the Telford bus route due to the collapse into administration of the previous supplier.
- Costs included equipment acquired as part of the T level Specialist equipment allowance below capitalisation thresh-holds. This was offset by a corresponding release of grant funding to income.
Regarding cash flow, the college had implemented the revised approach to Treasury Management discussed at the previous meeting and approved at the Board meeting in October 2023 (F&BO Min No. 46/23 refers). The EDoF explained that an additional £500k had been placed on deposit, as the college was able to better manage its longer-term cash position now it was paid on a flat profile. This approach continued to be monitored weekly.
The Committee also received an update on the 2023/24 key finance challenges and risks:
- The risk regarding pay inflation was diminishing as the teachers’ pay award had been agreed and it was expected that the support staff pay negotiations would successfully conclude. However, general inflation and the increased costs of specialist materials required for plumbing and electrical provision remained a risk.
- Exam costs represented a significant challenge, as did the increased costs of supporting increased bursary payments and transport costs.
- HE income and learner loan income was below budget.
- The college was awaiting the outcome of its Local Skills Improvement Fund (LSIF) joint bid. In response to a question, the P/CEO explained that the college’s share of the joint bid would total c.£650k and the additional capital funding would be used to purchase equipment to meet the high-level skills needs in areas identified locally and set out in the college’s Accountability Statement and Plan.
The P/CEO reported that the college had commenced delivery of the Multiply contracts awarded by the DfE to support the delivery of mathematics adult education work. The college was working in partnership with a number of local providers to achieve a pre-qualification to re-engage adults in Numeracy. In response to a question, he explained that the contracts were awarded annually over a three-year period, 2023/24 being the second year. Success in delivery was measured by the number of students who engaged in these learning opportunities. The college had been awarded the contract for a second year, as it had delivered successfully to students in 2022/23.
The Committee acknowledged that, whilst the revised 16-19 funding settlement was positive, as was high-value apprenticeships activity, there was still a risk in delivery of the Budget due to continuing inflationary costs and pay pressures, increased exam fees and lower than planned recruitment to HE.
54/23. Health and Safety Annual Report 2022 – 2023 and Draft Policy (Appendix – Agenda Item 6)
The Committee reviewed the Termly and Annual Report on Health and Safety across the college for August 2022 to July 2023 (previously circulated), which provided an update on Health and Safety and included an Assurance Statement about the Board’s responsibilities for health and safety.
The Committee in reviewing the reports particularly noted the following -
- All sites’ Fire Risk Assessments had been audited by an external service, with low-risk remaining action points being implemented.
- Annual Invacuation/Lockdown drills were completed in the Autumn term of 2022, and had recently been re-performed, with no significant issues raised.
- Health and Safety Audit outcomes. Key findings had been remedied quickly, with outstanding items followed-up.
- There had been no RIDDOR reportable events during the reporting period.
- A new procedure for reporting Accidents and first aid calls had been implemented to all first aiders making it quicker, easier and removing all paperwork.
- All health & safety incidents and near misses were analysed for any trends or training needs; no unexpected issues or unplanned additional needs had been identified during the period.
- Risk assessments were continually reviewed and adjustments made where required to ensure the continued safety of all staff, students and visitors.
- All college procedures had either been reviewed or were in the process of being so, by the Health and Safety Manager and Executive Director of Finance.
The Health & Safety Link Governor had reviewed the report prior to submission to the Committee and had submitted comments and questions, to which the EDoF had responded.
In response to questions, the EDoF explained that –
- whilst the college had sufficient first aiders, it would always welcome more recruits, to ensure an even response to incidents. The H&S Manager continued to work with the First Aiders to ensure they felt supported and recognised; an honorarium continued to be paid monthly in recognition.
- H&S audits were undertaken on a cyclical basis and focused on high-risk areas; there were no ‘outstanding’ actions. This process was introduced 2 years ago.
Having reviewed the report and considering the comments from the H&S Link Governor, the Committee requested that the H&S Manager discuss key trends and actions in their next meeting with the H&S Link Governor. It also requested that the Annual Report going forward include accidents and near misses trend analysis over the past 2 years.
The Committee reviewed the Draft Health & Safety Policy, noting that there were no major changes for 2023 – 2024. The Policy would be presented to the next Board meeting in December. The Annual Health & Safety Policy Statement would also be signed by the Board Chair and Principal/CEO at that meeting.
Resolved: That, having considered the report, the Committee RECOMMENDED TO BOARD that the Health & Safety Annual Report and Policy be approved.
55/23. Estates Termly Report and Capital Bids Update (Confidential Appendix – Agenda Item 7)
The Committee received the report (previously circulated).
- The Welsh Bridge Campus relocation of the Learning Resources Centre from the Quarry Building to Priory Hall and expansion of teaching space in the Quarry Building Post-16 Capacity Bid had been successful and the project would be completed in Summer 2024.
- The T Level project for the relocation and refurbishment of media, health and social care, and childcare, was underway. Procurement would start in December 2023, with initial work to start in Spring 2024 and main work scheduled for Summer 2024.
- External consultants were supporting condition improvement grant funding bids to support and enable phased replacement of English Bridge Campus heating pipework and areas of failing roof skylights. These bids would require a commitment of 30% contribution from the college, with submission due in late November/early December 2023.
- Over the summer the Department for Education (DfE) had undertaken activity to update its Building Condition records.
- The EDoF and Principal/CEO had met again with “LocatED” DfE Estates consultants. They had obtained support for several estate-related activities (at no cost to the college) including a review of potential land disposals, a review of the feasibility of the redevelopment of the Austin Block building and Space Planning to support the college to understand its building and estate constraints. Strategic projects would remain under consideration as part of this project. In response to questions, the P/CEO provided a verbal update on the meeting and explained that, whilst the support was welcome, the challenges in developing the estate to meet the longer-term demographic growth expected remained. LocatED would produce a report of recommendations which would be presented to the Estates Strategy Working Group. The Committee agreed this presentation should take place and that the Working Group additionally discuss the outcome of the Capital Bids once known.
- Energy-saving activities remained a priority for the college. The college had reduced its carbon footprint by c.27% in the past 12 months as a result of the investments and interventions undertaken. Consultants had been commissioned to undertake detailed design activity to seek available funding from the Salix Public Sector Decarbonisation Fund (PSDS) as part of the need to address existing ageing heating systems at the London Road and English Bridge campuses.
56/23. Risk (Appendix - Agenda item 09)
The Committee examined those risks within its remit and agreed that they had either been identified and adequately discussed at the meeting. The 2023 – 2024 Strategic Risk Register would be presented to the Audit Committee at its next meeting and the updated risks would, from that point, be included on subsequent committees’ agendas.
In response to a question, the P/CEO explained that the continued defunding of BTECs and the campuses not being sufficient to meet demand now presented the greatest risks to the college.
57/23. Date of Next Meeting – Tuesday, 05 December 2023 from 5.30 p.m.
The meeting concluded at 6.57 p.m.