FINANCE AND HUMAN RESOURCES COMMITTEE MEETING
Draft minutes
Date
2 March 2016
Venue
Station Plaza Boardroom
Chair
Ken Melsom MBE JP
Time
15.00
Membership:
Ken Melsom MBE JP (Chair); Sue Walton (Vice Chair); Tony Campbell OBE KSG FRSA; Pat
Farmer; Principal (Clive Cooke); Paul Evans (co-opted)
Apologies:
Lead officers: VP Corporate Services (Biram Desai);
In attendance: Head of HR (Melanie Price); VP Enterprise, Employment and Skills (Dan Shelley);
Student Governor (Lawrence Calton); Staff (support) governor (Debbie Baldock Apps)
At 14.30 Phil Barnes Head of Facilities will provide governors with an update on health and safety in
the College (see presentation for full details) Attendees: PF; KM; TC; PE; SW; DBA; BD
.
Item
1.
Apologies
There were no apologies received. The Chair welcomed The Head of HR to her first
meeting. The Student Governor and VP EES will arrive later in the meeting.
2.
Declarations of interest
Ken Melsom and Paul Evans declared their directorships of Hastings Plaza Trading Ltd.
Pat Farmer declared his interest as a member of the Hastings and Rother Task Force.
Sue Walton declared her interest as an employee of Pestalozzi.
3.
Minutes of the last meeting held on Wednesday 25 November 2015
RESOLVED: The Committee agreed the minutes of the last meeting as a true and
accurate record: Proposed: KM; Seconded: PF; CARRIED
4.
Matters arising on the minutes
The actions were noted as completed or covered in the agenda.
5.
Action
Human Resources Update
The Head of HR provided an overview of the KPI figures. Voluntary turnover figures are
marginally lower (9) in comparison to the same period last year (November, December,
January) (12). Annual voluntary turnover figures remain below the AoC average
turnover of 10%. Sickness absences remain constant at around 6.47 days per person,
compared to the national average of 6.9 and significantly lower than the public sector
average of 8.7 days [confidential note]
The Head of HR reported that a departmental audit HR had taken place looking at a
number of processes such as contracts, annual leave and booking holiday. It has
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highlighted a number of areas; none are related to legal compliance. An action plan has
been produced and shared with the Principal. There are a number of policies that
haven’t been reviewed and there is a plan to be fully updated by September 2016. The
audit looked at a number of wide issues and sampled small areas. There was not a
great deal of depth in the audit and a high level overview. The Committee asked about
the issues concerned and the Head of HR reported:
 A change of security profiles is required as supervisor access provides access to
all HR systems
The Committee asked about the drive to recruit English and maths teachers. The Head
of HR reported that to find new Maths teachers is difficult. College staff are being
encouraged to take GCSEs and this is in place for staff to be ready in time for
September 2016. Staff are financially incentivised to take the GCSE. The HR
department is working with two agencies who specifically work with potential applicants
from New Zealand, Australia and Canada who want to work in Europe. The Hastings
and St Leonards Academies have used the agencies successfully. Golden hellos are
advertised and there is a recruitment campaign to call teachers out of retirement and a
campaign to recruit volunteers who are 55 plus that are numerate and can write
sentences. A promotion campaign is being worked up that is hard hitting and will draw
on social media. The College is splitting campaigns and being more focused on where
to advertise and who to target.
The Principal reported that the College has a great relationship with the academies but
not when it comes to English and maths as we are in direct competition with schools for
teachers.
The Committee questioned how successful it is recruiting from overseas through an
agency. The Head of HR reported that the academies have been very successful.
They have employed directly through an agency and recruited 5 teachers last year.
The Chair of Corporation reported on the problem of students being set up to fail time
and time again in English and maths and the need to change the course for everyday
use of maths and English. The Principal noted that the government is holding onto
GCSE English and maths and Functional Skills for level one and it is unlikely to change
in the near future.
The relationship with the UoB and using the university students to deliver teaching was
discussed.
6.
ICT Strategy Metrics
The VP CS reported that the Committee had requested an ICT dashboard to allow wider
monitoring of the IT strategy. There is a lot of work to do in investing in the
infrastructure and the plan details the main steps to delivering it. The main metrics are
included on the dashboard.
The VP CS noted that the College had started off with a good base in terms of IT and
equipment but as time develops there is a greater need for equipment and support. The
College is focusing on taking IT forward and the VP CS noted the following projects:
 Increased Janet connection from 100mb to 1gb
 Discontinuing Mac minis which require a disproportionate amount of IT support
 The Committee asked how much the College has currently invested and what is
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the placement as a % of that. An analysis to show the total amount of IT
equipment and replacement would be useful.
 It was noted that old machines are still useful for some operations
(VP EES arrives 15.25)
 The Committee asked what the expected lifespan of a PC is. The VP CS noted
that the College is aiming to extend life by replacing kit inside. 4 years was a ball
VP
park figure but it can be extended cheaply
CS
The Committee queried p.5 around the number of staff and number of PCs and the VP
CS agreed to amend.
The Vice Chair noted the discussions at PPRs around the trend for more laptops in
classes and the complaint that many laptops are not fit for purpose. It was agreed that
the College does need to replace and increase the investment in IT kit for staff and
students. More and more systems are going online, and the College cannot expect staff
and students to use the systems if the hardware is not working for them.
The Committee noted the survey results about the IT helpdesk (p.5) look positive and
suggested the data around the number of responses and target response rates would
provide a useful context.
The Committee asked to receive the ICT strategy metrics report once a year to monitor
progress with any areas of concern coming to the committee as required.
Clerk
Performance Update
Key Performance Indicators relating to HR – see item 5. [confidential note]. Staff
appraisals currently stand at 76% completed and a number of departments are being
called into HR to discuss their appraisal progress. Staff turnover is 7%. HR PPRs are
coming up shortly.
7.
Key Performance Indicators relating to finance. The VP CS reported that overall
metrics are positive. There is some under delivery in 24+loans but this is balanced out
by good delivery in e learning and adult apprenticeships. A letter from the SFA with a
Good Financial Health category for this year was received [after note the letter sent to
the Committee for information]. Student attendance is disappointing and a full report will
go to the CQS Committee.
The Chair questioned whether there is data around timeliness in turning up to lessons
as during the lesson observation he had attended there was an issue with students
arriving late. The Vice Chair noted a similar experience. The VP EES reported that
registers should be signed in the first 15 minutes, but not always possible.
The Vice Chair questioned the KPI dashboard and where the back page on strategic
targets had gone to. He asked that this is re added.
VP
CS
The Committee asked whether the number of staff raising issues in surveys is a concern
and how this is addressed. The Principal noted that it is an operational issue and the
Head of HR noted that it is addressed.
8.
Acquire update
The VP EES reported as follows:
 The pilot is going well with 100 starts a month
 There is improved reporting. A new e learning finance manager, Hayley
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Robertson and her team are taking it forward
 [confidential note]
 CQS received a paper looking at the potential risks related to an impact on
success rates and were willing to take the risks. The Chair of CQS confirmed the
CQS Committee felt they were manageable risks
 By day 42 (the point when students will contribute towards the Colleges success
rates) the College is confident students will complete, although some may need
support
 From April 2016 the College will be delivering AAT level 1 and is hopeful that
there will be a significant increase in business.
The Chair of F&HR noted that he was excited by the work which has great potential. He
questioned whether it is reflected in the financial projections and the VP CS noted that
he had included a sensible amount.
The Principal reminded the Committee that at the Corporation strategy day governors
had asked the SLT to go away and find a project to meet the shortfall in funding. It is
innovative and it needs big numbers. It comes at a risk, students will be home learning,
but interventions and managing quality are in place.
The Committee questioned the contribution of 15% on £2000 per course. The VP EES
noted that the College’s costs are fixed for finance and admin. The advance share is
53% and the margin will go up as numbers increase as back office costs fixed. At the
present time the project is over staffed to manage quality and prepare for the increase in
demand.
9.
Financial Planning
a) January 2016 Management Accounts
The VP CS reported that the year is going well, the position is solid and the College is
forecast to achieve £430k operating surplus. There is some under delivery in 24+loans
but this is balanced out by good delivery in e learning and adult apprenticeships.
(LC arrives 15.57)
The Committee asked for an update on the SFA consultation and the VP CS reported
that the SFA have launched the consultation; included is a paragraph that says colleges
will be considered for an override from inadequate financial health if they can
demonstrate their cash generation is strong enough.
b) Budget 2016/17 – initial assumptions
The VP CS noted that a lot of planning has been done already at a detailed level.
Highlights on budgeting included:
 EFA allocation is good, initial allocation is through due to good enrolment last
year
 Current staff are going to cost an additional £300k next year through pensions, NI
and increments
 The College have identified a savings requirement and a curriculum management
restructure is taking place. It is expected to maintain pay costs at 64%
 Key funding streams will remain as they are
 Capital expenditure includes a request to finance the flooring out of the 5th floor
out of college funds.
 The College continues to operate in a way that give satisfactory financial health
and meets other targets
 E learning income, only £1.25m gross income is included in the initial
assumptions
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
2017-18 is more of a challenge for the finances. It is the first year of the
apprenticeship reforms and incurs more risk. It seems sensible to take obvious
savings out and give the College a stable year because 2017-18 may need more
surgery. It gives 12 months to see what the budget may look like.
c) Accounting policy options arising from FRS102
BDOs recommendation is to bring to the Committee options around accounting policy
arising from FRS102. The VP CS explained that there will be changes in the 15-16
financial statements due to FRS102. One key issue is around choice of accounting for
capital grants. There are two options. The Accruals method which is recommended is
around maintaining the accruals. Presentation of the accounts will show much reduced
net assets. There is the option to revalue land/buildings and a judgement on whether
this would be beneficial is yet to be made. The Committee questioned the costs of re
valuation and the VP CS noted that an action from Audit Committee was to contact Dyer
and Hobbs for initial advice.
The Committee asked that a PR message is ready to go out when the changes take
place and that the College works closely with Barclays around the changes.
RESOLVED: The Committee agreed to the proposal for the Accounting Policies
from the VP CS and noted the recommendation from the Audit Committee.
Proposed: KM; Seconded: PE; CARRIED
Policy for Tuition and Other Fees
The VP CS reported the following key changes:
•
Clarification for 2 year courses
•
24+ loans reference updated to 19+ loans
•
e-learning refunds clarification
The broad message is that fees are staying the same and there is no justification to
increase. The College is working closely with the UoB around HE fees.
VP
10.
SCCH fees are currently £2000 less than UoB.
CS
The Committee considered the policy and the following points were noted:
 The cross reference on p.5 8.3 should be 9.2 (the VP CS to check and amend)
 The Committee suggested the College use the fees in marketing and the VP EES
confirmed this was already taking place.
RESOLVED: The Committee recommended to approve the revised Policy for
Tuition and Other Fees. Proposed; KM; Seconded: PF; CARRIED
Subcontracting
a) Update on overall subcontractor landscape 2015/16
The VP EES noted that across funding streams everything is going well apart from 24+
loans and there is growth funding for 19+ apprenticeships. A further growth opportunity
is available to the college and partners in April 2016, which the college will apply to as it
looks like the current allocation is going to be achieved and exceeded. There are some
slight changes to contracts (see details on table 4). Timescale for bidding for 16-17 is
11. as follows:
Date
End of March 2016
18/4/16
13/5/16
w/b 16/5/16
23/5 – 3/6
8/6/16
Action
College is informed of indicative allocations for all funding
streams
Bidding process launched
Bidding closing date
Decision making panel held
Contract negotiation period
F&HR Committee ratify recommendations for 16/17
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29/6/16
1/7/16
subcontracting
Corporation notified of final contract values
Contract signature deadline
1/8/14
Contract delivery start date
Budget lines and income for partners marry into the forecast looked at in item 9, with the
exception of the full funding from SFA which is due imminently.
There are only two partners (Tempest and Abacus) with reduced revenue, due to issues
with the Director of abacus. This is being dealt with effectively, it is a safeguarding
matter and the company are closing as a result of a business decision. Tempus were
unable to be given any new starts as instructed by the SFA due to a technicality and
they subsequently took on Darley training.
The Committee questioned how partners are preparing to cope with the levy. The VP
EES noted that some want to remain as a partner even though they can have access to
the money through the new system. There may be a small number of providers in this
situation and the College will have to work out how that would work in 2017-18. Some
others will go it alone. There is an internal apprenticeship taskforce working on the
reforms and what it means for the College. Businesses will be invited in for discussions.
RESOLVED: The Committee recommended to approve the proposed changes to
some contracts and approved the bidding process. Proposed: TC; Seconded:
SW; CARRIED
Risk Management Update – Risks allocated to F&HR Committee
The Committee noted their delegated 11 risks. At present there are 5 strategic risks that
falls into the higher risk category:
•
Failure to achieve Apprenticeship income target – forecasted to achieve 16-18
budget value and have already secured 19+ Growth and will reapply in April.
•
Failure to achieve Subcontractor income target – only risk issue is 24+ Loans
12. •
Failure to achieve the income target for 24+ Loan funded provision – slower start
than expected but this is likely to be offset by strong Acquire Learning project.
•
Failure to recruit and retain staff in key (shortage) subjects – plans in place (see
below)
•
High levels of staff turnover and sickness absence – currently below target with
1.6 days per staff member (see KPI dashboard).
The Committee noted that the risks were covered in the meeting agenda items.
Accommodation and Estates Report
The Committee noted that the Hub was a great improvement and there is a lot of activity
taking place.
[confidential note]
The Student Governor asked the reasoning behind EF being brought in and the VP CS
explained that they contribute to the catering services and utilise the building during
quiet periods.
13.
The Vice Chair asked about the planned maintenance programme and progress and the
VP CS noted that the College had received a demo yesterday and were pleased with
the system which enables facilities staff to be mobile and operate a mobile helpdesk.
The Vice Chair noted that he felt planned maintenance should be on the risk register.
RESOLVED: The Committee agreed for a tender to fit out the 5th floor to be sent
out. PF noted he would be involved in the tender if required. Proposed: KM;
VP
CS
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Seconded: PE; CARRIED
Health & Safety Report
The VP CS noted that an expanded report for the Health and Safety Committee has
been introduced at the Vice Chair’s request. The VP CS continues to work with the
Head of Facilities and the team to enhance H&S in the College. The Facilities and H&S VP
14. Coordinator is close to completing his NEEBOSH qualification.
CS/
The Vice Chair asked for the accident report to be appended to reports going forward for Clerk
information.
The VP CS confirmed that the red rag rating at the H&S audit was related to H&S issues
in the Art Department.
15.
AOB
There were no items raised.
MEETING CLOSE
Staff and student governors depart 16.48
Confidential C closed items
Meeting closed at: 17:38
Attendance for 2015-16: 94%
Length of meeting: 2hrs 45mins
Impact of governance: Challenge and support at the meeting:
HR report – at the last meeting the Committee asked SLT to review timings for resignation for
teaching staff which varies between schools and FE and whether a change would provide more
consistency for learners and provide better opportunities for recruitment. To go forward to the next
HR report.
HR audit – the Committee asked for an update on concerns (Audit report sent to the Chair of F&HR)
Risks delegated to the Committee – At the last meeting the Committee asked that Failure to recruit
and retain staff in key (shortage) is a higher risk in particular for English and maths teachers; it was
increased to gross 25 and net 16 and will be monitored closely. The Committee is monitoring closely
and received an update from the Head of HR.
Staff welfare – at the last meeting the Committee noted the number of restructures and staff
insecurity and questioned what SLT are doing to proactively keep staff updated on Area Reviews and
pressures on the sector. Staff briefings have been held to update staff on area reviews and SLT is
providing updates to managers on a regular basis. An update on the Comprehensive Spending
Review will be sent out tomorrow.
The Committee noted the importance of boosting morale for staff and how a year without a
restructure and a small pay increase would be of great benefit for staff if circumstances allowed. The
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Chair of Corporation asked if the Organisational Working Group or a similar group would be
resurrected.
The Committee questioned whether work had been carried out to evaluate its impact on staff through
the College. It was noted that a staff survey will be sent out early next year to feed back on the
College and the HR team in particular. The Committee to receive a report on impact of the changes
implemented. The Committee considered the consultation process on the curriculum management
structure and questioned whether this change would adequately support the curriculum and the
impact on staff. Full report to the next meeting alongside the staff survey.
ICT metrics – request for the Committee to receive the dashboard annually with updates on concern
as required. The Committee discussed the message from PPRs about the increased need for IT kit.
Timeliness in lessons – the Committee questioned the College mechanisms for dealing with
lateness to lessons and asked if there is data available to monitor
Accounting Options – the Committee asked the College to have a press release ready for any
concerns arising from the changes.
College Fees – the Committee reported using the fees in marketing would be useful to increase
enrolments
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