Present:
D Butler (Chair), J Bromiley, A Cummins, M Curry (via Teams), S Duncan, P Earl, E Jose, R Harrison, V McFarquhar and M Parkin
In Attendance:
C Tomlinson – Vice Principal Curriculum and Performance
S Judson – Vice-Principal Finance and Business Planning
H McCoy – Assistant Principal Performance
J Lanagan - Assistant Principal Curriculum Planning and Partnerships
A Wilkinson - Campus Director Peterlee & Technical Academy
S Pritchard – Clerk to the Corporation
Z Hiscott - Student Voice & Engagement Officer, for item 5.
Apologises for Absence:
Apologies were received from R Woodhouse, A Chandra, M Young & E Bolton.
760 Conflicts of Interest
No conflicts of interest were declared.
761 Minutes of the Previous Meeting 16th February 2023
AGREED
The minutes of the meeting of 16th February 2023 were approved as an accurate record.
762 Matters Arising
There were no matters arising that were not substantive items on the meeting’s agenda.
763 Student Union Report
The report was presented by the student governors who took the report as read. Governors noted in particular the positive student engagement through student meetings, the variety of surveys in circulation to gather student views, enrichment, fundraising and charitable endeavours of the student union and the update on its financial position.
The President of the Student Union highlighted a concern that some students are unclear of what their role involves in the Student Union and it was agreed that this would be referred to [Zoe] to consider further.
NOTED
The Board noted the report.
764 Principal’s Reports (confidential)
1. a) Principal’s Update
The Principal’s Update was considered confidential for reasons of commercial sensitivity owing to the inclusion of information regarding partnerships and student information.
b) Draft Strategic Plan & Draft Accountability Agreement
The report was considered confidential for reasons of commercial sensitivity relating to the strategic direction of the college and the college’s offer.
c) Presentation
2. Quality and Curriculum Update: Qualification Reform
The report was considered confidential.
3. Finance and Resources Update
a) Estates and Facilities
The Vice Principal Business and Finance presented the update and drew attention to the health and safety risk assessment and confirmed that the health and safety manager had assessed the risks across college and prioritise actions to address them. IT was confirmed that all high risk areas would be addressed by the end of the year (in terms of risk assessments and SOPs and what people doing), and then the next stage would be monitoring operations, audit, and follow up actions. It was confirmed that this would be further reported to Audit Committee and that they would monitor the position.
The Board noted the update.
b) Management Accounts April 23 (confidential)
The Vice Principal Finance and Business noted that the College did not have the position on the final management accounts yet but was looking at a forecast. The full management accounts would follow
c) Financial Outturn 2022-23
The Vice Principal Finance and Business confirmed there would be an operating surplus for this year. It was forecast that the College would be at requires improvement for financial health but that the banking covenants would be met. Whilst there could be an operating surplus of £405k the College would not wish to do this at the risk of not issuing a pay award to staff (this may be a one off payment rather than consolidated).
The Board noted that utility costs had increased from £600k to £1.6m but that the College was not being funded to meet these additional costs and it therefore impacted on its ability to provide pay rises for staff.
The Chair asked for clarity on the implications of moving to “requires improvement” for financial health and it was confirmed that there are no implications and it would not trigger early intervention.
The Board noted the report.
d) ESFA Financial Health
It was confirmed that the college had maintained good financial health last year and had received a letter to confirm this from ESFA.
e) Loan Financing with DfE Update
The Vice Principal Finance and Business Planning provided an update and confirmed that DfE’s reticence to negotiate the terms of the loan agreement but had confirmed that it will not invoke triggers of default in the loan agreement. The Chair encouraged a pragmatic approach if they are not prepared to concede and that the priority was to get the loan in place in time.
It was noted that the Board would need to approve the loan at the July board meeting would need to make a decision about what it was prepared to live with if further negotiation was not possible and that the Board would document the reasons why it has taken that decision.
f) Draft Budget Assumptions
The Board noted how budget assumptions were set.
g) Risk Management Update
The Board noted that risks had been discussed throughout the meeting. The Risk management update had been to audit committee, the risk changes in relation to staffing reflects changes the committee.
The Board noted the update.
766 Governance
1. Governance Update
The Clerk provided an update on governor recruitment and the breadth of interest that had now been received after a variety of different approaches to recruitment. She outlined the process being followed by way of a reminder and confirmed that recommendations would be brought to the July meeting for appointments together with an update on the governance self-assessment.
2. Minutes of CQS March 23 - Minutes accepted
Minutes of Audit March 23 - Minutes accepted
759 Any Other Business
Contingency days for audit – agreed.
A request for Governors to approve the HE Space at Houghall was circulated in March 2023 and approval was received via email.