Finance and Assets Committee Non-confidential minutes of the meeting held on Monday 11th March 2024 at 4.30pm via Microsoft Teams

1.0 Welcome and Apologies

260 There were no apologies. It was noted that Andrew Simpson would arrive late. The Chair welcomed EF to her first meeting.

2.0 Declarations of Interests 

261 Interests declared:

• JS 
  • CEO/Principal Nottingham College 
  • Trustee and Board Members of Skills and Education Group (SEG), awarding organisation and charity 
  • Ofsted Inspector 
  • Member of D2N2 LEP Principals’ Group 
  • Member of the Performance and Quality Committee of Futures Group 
• RR 
  • governance consultant Stone King 

No other interests were declared.

3.0 Minutes 

262 The Committee resolved that the non-confidential and confidential minutes of the meeting held on 29th January 2024 (distributed as F&A.110324.002/003) be approved as a true record (subject to the correction of an error in item 256).

4.0 Actions and Matters Arising 

4.1 Action Tracker 

263 The open action tracker (distributed as F&A.110324.004) was reviewed. It was confirmed that actions 1 to 3 were complete and that item 4 would be complete ahead of the Board meeting on 25th March 

4.2 Matters Arising 

264 There were no matters arising. It was agreed to take items 6, 7, 8, 9 and 10 ahead of item 5

6.0 Enrolments and Applications

265 The committee received the report (distributed as F&A.110324.008). CE confirmed that recruitment to AEB and the new Prince’s Trust programme was ongoing, that AEB enrolments would increase after Easter and that HE enrolments were at 92% of target with 9.6% growth from 22/23. She took governors through the growth plans for 24/25 and highlighted the level of growth expected through internally progressing students. A governor questioned the position with HE and the new courses planned for 24/25. CE confirmed that HE applications for 24/25 were up 4-5% on the same point last year and confirmed that new courses were planned through the OU and University of Derby. Further discussion on this item is contained in the confidential minutes. 

266 The committee noted and commended the encouraging report.

7.0 Health and Safety 

7.1 Term 1 Report 

267 The Committee received the Health and Safety Term 1 report (distributed as F&A.110324.009). GM highlighted the two areas reported as not aligned to the high levels of compliance sought by the college. A governor queried whether the outstanding planned preventative maintenance (PPM) documentation was now complete. (Action GM). Further discussion on this item is contained in the confidential minutes. 

268 A governor queried the reporting of near misses. He noted the positive impact near miss reporting can have and was pleased to see the need for this moving forward flagged as an item on H&S Working Group agendas. The committee noted the report. 

7.2 Update on progress with actions from Internal Audit 

269 The Committee received and reviewed the update (distributed as F&A.110324.010). All recommendations are to be completed by 30th April; AC noted that Audit Committee has agreed to extend the deadline for one recommendation but that will still be complete by 30th April. A follow up audit will be undertaken by RSM in the week commencing 13th May. The committee noted the report and the progress made to date against the internal audit recommendations.

7.3 Health and Safety Policy 

270 The committee reviewed the updated Health and Safety Policy (distributed as F&A.110324.011). GM noted that the procedures that sit under the policy are now contained in separate documents. He highlighted that, noting the comments received in the Internal Auditors’ report, clarification on the responsibilities attaching to particular roles has now been included. The Chair noted the intention that the policy is reviewed externally and questioned whether that will happen before or after the Board meeting. If the review takes place ahead of the Board that assurance can be given ahead of the approval, if the review takes place after the Board meeting, then the Chair requested that a follow up report comes back to the committee to confirm that the review has subsequently been completed (Action GM). 

271 A governor noted that the health and safety environment within the college was clearly and understandably complex and highlighted the need to ensure clarity around accountability and oversight. He drew attention to the organogram on page 6 of the draft policy; he questioned how this demonstrates accountability for what and where is assurance taking place. The organogram references the Board but does not include the role of the Finance & Assets Committee, the Health & Safety Working Group or the Health & Safety Exec Committee. Governors felt that the policy would benefit from the inclusion of clarity around governance of health and safety in the college (Action GM). AC confirmed the intended membership of the new Health & Safety Executive Committee and that it would remain in place for at least one year. The committee resolved to recommend the approval of the Health & Safety Committee to the Board subject to the amendments to the organogram and to the satisfactory external review of the policy.

8.0 Workforce

8.1 People Services Termly Report 

272 The Committee received the People Services termly report (distributed as F&A.110324.012). EF took governors through the key headlines in the report. A governor queried whether the level of staff turnover was a cause for concern. EF confirmed that the level of staff turnover had reduced and was now close to the sector average. The committee accepted the report. 

AS joined the meeting

8.2 Staff Survey 

273 The Committee received the outcome summary from the recent People Services survey (distributed as F&A.110324.013). EF highlighted the overall positive outcome of the survey, which had seen an increase in response rate and engagement since the previous survey. Governors considered the outcome of the report in further detail and how this would be reflected in the new People Strategy. The committee noted the survey outcomes.

8.3 Gender Pay Gap 

274 The committee reviewed the gender pay gap report (distributed as F&A.110324.014). EF highlighted to governors that the reduction in the mean gap of 1.8% since the last reporting period and conversely the increase in the median gap of 12.5%. EF confirmed that the increase was due to a change in the middle two quartiles, which have seen and increase in females in quartile 2 and an increase of males in quartile 3. Governors reviewed the measures in place to help address the gender pay gap. The obligation on the college to publish gender pay gap figures for the year ending on 31 March 2023 by 30th March was noted. 

275 The committee resolved to recommend to the board the gender pay gap statement at Appendix 1 of the report for approval and publication.

9.0 Estates

9.1 Capital projects update 

This item was minuted as confidential. 

9.2 Phase 2 works to 25 Stoney St 

This item was minuted as confidential.

10.0 Review of Risks 

276 The committee received and noted the finance and resources section of the risk register (distributed as F&A.110324.017). A governor questioned how the increase in risk FIN8 around end point devices would be addressed. AC confirmed that it was hoped that this would continue to be addressed via successful bids and grant funding but that this could not be guaranteed.

5.0 Management Accounts

5.1 P6 Management accounts 

277 DN took governors through the headlines of the period 6 (to 31 January 2024) management accounts (distributed as F&A.110324.005). Key points highlighted: 

• EBITDA is below YTD budget but there is nothing at present to indicate that the full year EDITDA budget will not be achieved 
• 16-18 in year growth income higher than expected 
• Small risks to some income lines as highlighted in the report 
• Pay costs are below YTD budget, largely due to not recruiting to all budgeted roles in line with expected timelines
• Non-pay spend is below YTD budget, the variance is expected to close but there is scope to make full year non-pay costs savings 

278 A governor noted that AEB income is behind budget and that this has happened at this point in previous years, he queried whether this was a budgeting or control processes issue. DN noted that this is behind budget and that there is a delay in capturing the ALS provided to adult students. AC noted that this issue had been picked up in an internal audit report considered by the Audit Committee and confirmed that there was confidence that this would catch up but noted the risk. He confirmed that how this is profiled in 24/25 will be reviewed. The committee accepted the management accounts. 

JS and CE left the meeting 

5.2 Income budget profile 

279 The committee noted the report (distributed as F&A.110324.006). Governors confirmed that the report was helpful and that it would provide a useful reference in future discussions on forecasts. 

5.3 In year curriculum contribution position 

280 The committee noted the report (distributed as F&A.110324.007).

11.0 Refinancing 

This item was minuted as confidential.

12.0 AOB 

281 None.

13.0 Date of the Next Meeting

282 The next Finance & Assets Committee meeting will be held on Monday 29th April 2024 at 4.30pm via MS Teams. 

The Chair closed the meeting at 6.54 pm