Document 3i
THE NORTHERN COLLEGE
THE POLICY AND FINANCE COMMITTEE
Minutes of the meeting of the Policy and Finance Committee held on 18 December 2014.
Present:
Mr Clive Macdonald (Chair), Prof Tim Thornton, Ms Helen Anderson (up to and
including Minute P14/179), Mr John Edwards and the Principal.
In attendance:
The Vice Principal (RAST) (up to and including Minute P14/179), the Head of Finance
(up to and including Minute P14/179) and the Clerk to the Governors.
Apologies:
Dr Malcolm Ball, Mr Robert Quick and Cllr Jim McKenna.
P14/146
MINUTES OF THE LAST MEETING
The minutes of the meeting held on 2 October 2014 were approved as an accurate record (a signed
copy is filed in the Minute Book).
P14/147
DECLARATIONS OF INTEREST
With respect to their role as trustees Mr Clive Macdonald, Mr John Edwards and Ms Jill Westerman
declared an interest in items which related to the Wentworth Castle and Stainborough Park
Heritage Trust, in particular the Property Strategy Progress Report. It was noted that no decisions
were required and it was not considered necessary for anyone to withdraw from the discussion.
P14/148
INTEGRATED PERFORMANCE REPORT
(A copy of Document 4i is filed in the Minute Book.)
The Committee considered the Dashboard Outturn for 2013/14 and noted that:
 All teaching and learning areas were rated green with the exception of class size and
bedroom utilisation. It was noted that a report regarding class sizes was included on the
agenda for the meeting.
 It was acknowledged that some areas could arguably have been rated as amber, e.g. some
areas of recruitment, but that the College was confident that the targets would be achieved.
 Gas and electricity consumption and food as a percentage of income were all rated green. It
was noted that the new boiler had been installed in early September and to date
consumption had been reduced by 35%, which was greater than the predicted saving of
23%.
 The report included two sets of figures for sickness absence – outturn for 2013/14 and year
to date.
 The absence outturn figures for 2013/14 had been rated red due to a number of small long
term absences which had been reported throughout the year.
 The absence outturn figures to date were rated green for short term, but red for long term. It
was noted that the sickness absence policy was due for review during 2014/15 and
significant updating was planned with more differentiation between long and short term
absences and how they were managed.
 There had been no stress related absence this year to date, which was a very positive
achievement particularly in a period when the College had undertaken a staffing restructure.
P14/149
The Committee explored how small numbers could have a significant impact on the report at this
stage of the year e.g. withdrawals in Skills for Learning and Life. The Committee were assured that
these were timing issues and that there was no underlying problem.
P14/150
The Committee agreed that it was useful to be able to see the profile.
P14/151
The Committee considered the finance performance indicators and noted that it was very early in
the year but all areas were rated green with the exception of catering and bar income.
P14/152
The Committee considered the final outturn Management Accounts for 2013/14 and noted that
the figures were very similar to those previously presented in September and agreed that this
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reflected the excellent financial management. The Committee noted the 2.9% trading position
against a target of 2.5%, the absorption of restructuring costs and explored issues regarding
depreciation.
P14/153
The Committee considered the Management Accounts to 31 October 2014 and noted that it was
very early in the year, that a number of additional contracts had been secured very recently which
weren’t yet reflected in the accounts, the cash position was good and that depreciation costs were
large and likely to increase further in line with capital expenditure.
P14/154
The Committee explored the additional contract income in detail noting that this included lottery
funding, NHS funded peer mentoring, a contract with Leeds City College for trade union studies
provision and leadership qualifications with an employer. The Committee explored the contribution
levels expected, whether the College had the right staffing resources to deliver the provision, how
much could be delivered by core staffing and sustainability and risk.
P14/155
The Committee explored the implications of depreciation costs.
P14/156
The Committee considered a HE Debtors Comparison Report 2009/10 – 2013/14 and noted the
reduction in true debt from £32K to £6K over the period.
P14/157
The Committee explored HE income acknowledging the very good performance and exploring the
future potential.
P14/158
The Committee welcomed the positive achievements in terms of income generation and supported
the College to develop these further in a sensitive way in line with the College mission.
Resolved:
i
That the performance to date be noted.
P14/159
DRAFT FINANCIAL STATEMENTS AND AUDIT FINDINGS
(A copy of Document 5i is filed in the Minute Book.)
The Committee considered the Financial Statements for 2013/14 and congratulated the College on
the very clean audit achieved. The Committee noted that there was just one recommendation
regarding the audit of journals completed by the Head of Finance and that this had been addressed
by the Audit Committee and a sample audit would be undertaken by the Internal Audit Service in
future.
P14/160
The Committee noted that the Financial Statements were very close to the management accounts,
with the minor difference relating to FRS17, and agreed that this presented an overall picture of
rigour and attention to detail and recorded their thanks to the staff involved.
Resolved:
P14/161
i
That the draft Financial Statements for 2013/14 and the Audit Findings
from the College’s Financial Statements Auditor be recommended to the
Board for approval.
PROPERTY STRATEGY PROGRESS REPORT
(A copy of Document 6i is filed in the Minute Book.)
The Committee considered a progress report regarding the implementation of the Property Strategy
and noted that:
 The report was comprehensive and provided a detailed update on progress.
 Phase 1 had been completed.
 Phase 2 consisted of two stages - the first being the decant of staff from offices in
Wollstonecraft to the Main House and the second stage consisting of relocating the support
services currently housed in Wollstonecraft to the Old Coach House.
 The College was part way through the design of stage 1 which would probably require some
modest structural work to achieve the capacity required.
 A progress report with a 1st draft cost plan would be prepared for the Committee to approve
at its next meeting with a view to the work can being carried out and completed by July
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2015.
P14/162
The Committee explored the options regarding Stage 2 in more detail. It was noted that:
 No work had been undertaken on this stage to date.
 To progress the plan a detailed design feasibility and cost planning exercise would be
required and a costed proposal regarding this was considered.
 The proposal included a detailed condition and measured survey of the building and design
feasibility and budget cost plan preparation.
P14/163
The Committee explored the benefits of stage 2 and agreed that it would be key to evaluate the
potential savings created by closing Wollstonecraft against the cost of achieving it, the potential for
capital funding, and the environmental and reputational impact.
P14/164
The Committee agreed that:
 It would like to consider a simple costs vs savings plan at its next meeting.
 Members would need to see significant evidence to dissuade them from completing the
original plan, maintaining momentum and demonstrating confidence in the future.
 There had to be a clear case about what was being achieved in terms of the long term
future of the College, reducing running costs and the links to the strategic plan.
P14/165
The Committee explored the potential requirements for the functions to be housed in the Old Coach
House into the future and whether the College could explore other options.
Resolved:
i
That the commissioning of AA Projects Ltd for a detailed design feasibility
and cost planning exercise to commence in January 2015 be approved.
ii
That a further report including costs vs savings plan be considered at the
next meeting.
P14/166
TREASURY MANAGEMENT SIX MONTH REVIEW
(A copy of Document 7i is filed in the Minute Book.)
The Committee considered the Treasury Management update which provided information about the
College’s investments and proposals for the future.
P14/167
The Committee agreed that there were risks in the banking sector it should take into consideration
and that advice should be sought from the external auditors, particularly in relation to the Cooperative Bank.
P14/168
The Committee agreed that the College should minimise its deposits with the Co-operative Bank
and consider the situation further at its meeting in March taking the advice from the external
auditors into account.
Resolved:
i
That the College minimise its deposits with the Co-operative Bank.
ii
That the Committee consider its banking arrangements further at its
meeting in March 2015, taking into account the advice from the external
auditors.
P14/169
CLASS SIZE REVIEW
(A copy of Document 8i is filed in the Minute Book.)
The Committee considered a report which presented class size data including no show trends and
progress to date regarding structural changes, a strategy for intervention and technical
developments.
P14/170
It was reported that:
 The restructure in Registry was now complete.
 The revised proposal for no-shows would build on the current work being done by the
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P14/171
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Intervention Team on longer course provision.
Significant progress had been achieved, but it was too early to draw clear conclusions.
The position would continue to be monitored closely and further reports would be presented
to the Committee.
The Committee welcomed the report and the work done to date and explored the approach to noshows. Members agreed that the work would enable the College to over offer in a very
sophisticated way in future and target intervention from the first point of enrolment.
Resolved:
P14/172
That a further report regarding class sizes be presented for consideration
by the Committee in June/July 2015.
STUDENTS’ UNION ACCOUNTS
(A copy of Document 9i is filed in the Minute Book.)
The Committee considered and approved the Students’ Union Accounts for 2013/14.
Resolved:
P14/173
i
i
That the Students’ Union Accounts for 2013/14 be approved.
FINANCIAL REGULATIONS
(A copy of Document 10i is filed in the Minute Book.)
The Committee considered revised Financial Regulations noting that the changes had been
reviewed by the Internal Audit Service.
Resolved:
i
That the Financial Regulations be recommended to the Board for approval.
P14/174
COMMITTEE TERMS OF REFERENCE AND PERFORMANCE INDICATORS
(A copy of Document 11i is filed in the Minute Book.)
The Committee reviewed its performance against its 2013/14 performance indicators and Terms of
Reference.
P14/175
The Committee considered proposed performance indicators for 2014/15.
P14/176
The Committee considered revised Terms of Reference for 2014/15 and agreed that membership
matters relating to staff and student involvement in committees should be considered more broadly
across the College’s governance arrangements.
Resolved:
i
That performance indicators for 2014/15 be recommended to the Board for
approval.
ii
That membership matters relating to staff and student involvement in
committees be considered more broadly across the College’s governance
arrangements.
P14/177
RISKS OVERSEEN BY THE COMMITTEE
(A copy of Document 12i is filed in the Minute Book.)
The Committee considered the risks allocated to it; reviewed their relevance, currency and rating;
considered the assurances already received and identified any gaps which required further external
assurance to be commissioned.
P14/178
The Committee agreed that it would consider the risks in more detail at its next meeting as it was
uncertain they accurately reflected the true risks accurately and whether the scoring was
appropriate.
Resolved:
i
That the risk register be considered in more detail at the next meeting to
ensure that they reflected the true risks faced by the College and the
scoring was appropriate.
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P14/179
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SKILLS FUNDING AGENCY FINANCIAL HEALTH LETTER
(A copy of Document 13i is filed in the Minute Book.)
The Committee received and noted the Skills Funding Agency Financial Health letter of 7 October
2014 which concluded that the underlying grade for the College was Outstanding.
P14/180
CONFIDENTIAL MATTERS
The confidential minutes of the meeting held on 2 October 2014 were approved as an accurate
record (a signed copy is field in the Minute Book).
P14/181
The Committee considered a confidential item which is recorded in a separate confidential minute.
P14/182
DATE OF THE NEXT MEETING
The next meeting of the Policy and Finance Committee will take place on Thursday 26 February
2015 at 9.30am.
Signed
Position
Date
Chair of Policy and Finance Committee
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