Finance and Assets Committee Non-confidential minutes of the meeting held on Monday 20th March 2023 at 4.30pm via Microsoft Teams

1.0 Welcome and Apologies

069 Apologies were received from Andy Griffin, Rachel Robson and David Neilson.

2.0 Declarations of Interests 

070 Interests Declared:

• Janet Smith declared the following interests: 
• 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 

No other interests were declared.

3.0 Minutes of the Previous Meeting 

071 The Committee resolved that the minutes of the meeting held on 30th January 2023 (distributed as F&A.200323.002) be approved as a true record.

4.0 Actions and Matters Arising 

4.1 Action Tracker 

072 The open action tracker (distributed as F&A.200323.003) was reviewed: 
03.10.22 Action 1 Percentage of staff responding to be added to survey data. Survey data on the agenda for this meeting, absolute numbers of responses per site given. Action closed. 
30.01.23 Action 1 Training for those negotiating with unions. Action ongoing. 
30.01.23 RAG rating of IT strategic plan to include actual progress. Revised RAG rating on this agenda, action closed. 

4.2 Matters Arising 

073 There were no matters arising.

5.0 Management Accounts 

074 AC took governors through the headlines of the period 6 (to end January 2023) management accounts (distributed as F&A.200323.004). Key points highlighted: 

• Income down against budget, end of year EBITDA is still at risk, as reported at the previous meeting 
• Discussions have taken place at ELT and CMT to implement actions to achieve delivery of the full year budget EBITDA. AC detailed the actions in place or being put into place to aid the delivery of the EBITDA target. 
• Subcontracting delivery is below budget and year to date comparison 

075 AC reported that one subcontracting partner will not achieve their target this year and is returning a proportion of funding. This and the remaining subcontracting budget yet to be allocated is being offered to the other partners already awarded funding. Governors sought assurance that the remaining subcontractors would meet their delivery targets for the year. AC responded that performance was being closely monitored and that any reallocation of funding will be brought to governors for approval. 

076 A governor queried the increase in staff number between January 2022 and January 2023 given that the college had not grown financially in proportion. AC responded that the increase in teaching staff numbers is related to the growth in learner numbers this year and the 40 additional learning hours which involves a high proportion of face-to-face delivery. The cause of the increase in professional services staff is less clear, although the college has fewer vacancies than the same time last year and the staff body now is likely to be reflective of the need the college has. Colleagues are being encouraged to ensure any recruitment is essential. Early indications from the P7 draft accounts are that the run rate was unusually high in P6 and can be expected to come down. 

077 A governor noted the adverse non pay against last year, acknowledging that it was within budget. AC responded that this was likely to be a phasing issue. 

078 A governor pointed out that revenue is flat when pay cost has increased. AC explained that the in year growth in learner numbers will come through as additional income from the February accounts onwards. The costs of the pay increases agreed in April 2022 had already been built into the budget against the knowledge that income would only increase modestly this year.

079 AC shared ideas for how the forecast shortfall in EBITDA at year end can be mitigated. These included increasing AEB delivery, prudent use of the 16-19 tuition fund and reducing and slowing recruitment of staff. 

080 One governor asked whether all the opportunities were achievable, or whether risks to them included achievement of one leading to greater spend in another area or causing a similar setback. AC responded that all the opportunities identified were distinct. It is possible that greater AEB delivery might increase staff cost but it would still result in increased income overall. The Chair commended the college for its achievable aims to get the annual EBITDA back on track and reminded all of the importance of the college remaining out of intervention.

6.0 MIS 

081 The committee received the progress update on the MIS delivery plan (distributed as F&A.200323.005). RW reported that plan delivery is proceeding well. Particular highlights include the smooth introduction of the new HR and payroll system, due to go live on 1st April, and the continued move of dashboards into Power BI in the cloud, including the E/SLT KPI dashboard. Work is ongoing to move EBS to the cloud. 

082 The results of the biannual IT and MIS satisfaction survey were shared. The overall service satisfaction score for IT has increased to 81% of respondents, up 14% on the previous occasion the survey was run. The response rate per site is reflective of the number of staff at each. The MIS score had not increased so much, although exams had recovered an 8% decrease from the last survey. There was a reduction in EBS satisfaction that may be related to a necessary adjustment to register marking within the system that was made at the time the survey was open. 

083 The first Estates customer survey was run concurrently, and will run again in June for comparison. Overall satisfaction is already at 89%. The committee congratulated the college on the improvement in the IT score and the positive Estates starting position.

084 One governor asked about the cost of the extension to the licence of the existing HR system to provide an overlap with the new system being introduced. This had previously been prohibitive. AC reported that this had been secured at a much lower amount than discussed previously.

7.0 IT 

085 The committee received the update on progress with the IT action plan (distributed as F&A.200323.006). The Cyber Essentials internal audit actions have been completed, and the college is still working towards it. RAG rating in the report has been amended so nothing beyond its end date is green, following feedback from governors at the previous meeting of the committee. 

086 The Teams telephony migration has been paused to fix minor issues discovered in the rollout to the first 100 colleagues. This will ensure smooth rollout across the college overall. 

087 The college has initiated a tender to replace those for multi-function devices and print services, due to these coming to an end in the next few months. The tender will be brought to the committee for recommendation at the next opportunity. RW explained that the contract for the new services may last for three or even five years. 

088 A governor asked whether progress with the plan overall was what had been anticipated. RW responded that the greatest difficulty was with achievement of Cyber Essentials because the requirements for this become more stringent every year. He also explained that many of the items marked amber were minor but needed the opportunity of a holiday period to enable network downtime. 

089 A governor queried the green rating of enterprise architecture when this was such a major piece of work. RW explained that the main focus of this currently is the new HR, payroll and finance systems, which are all on track, although this was only a section of the college’s enterprise architecture as a whole. This may change the RAG rating of that item in the future.

090 The committee congratulated the IT team on the good progress made and wished colleagues good luck with the adoption of the new systems college-wide.

8.0 Health and Safety

091 The Committee received the termly Health and Safety report (distributed as F&A.200323.007). GM reported that the college is compliant, and work is ongoing on making reporting and the Health and Safety committee more focussed and engaged, to make the college’s Health and Safety culture as good as it can be. 

092 One governor praised the strength of the Health and Safety report. 

093 The Chair explained that he is also a member of the Health and Safety Committee and that while engagement in the meetings is good, actions can sometimes take time. GM agreed that there is a need to inject pace into the college-wide engagement with Health and Safety.

9.0 Estates 

9.1 Estates Development Report

094 GM presented the estates development update report (distributed as F&A.200323.008). GM reported that the ESFA will now be determining transformation funding allocation itself, rather than seeking bids as has happened previously. A governor commented that if funding of this nature is given in regular small amounts, this will make bigger projects like those the college has already bid for successfully more difficult to achieve. AC reported that the college intends to build capital project funding into discussions with the DfE around refinancing once that comes due. 

095 One governor commented that there is a growing sustainability emphasis on building projects, encouraging renovation of existing property rather than new buildings and that there might be a possibility of funding based on initiatives around this. JS responded that the DfE sustainability strategy doesn’t mention estates. The college has looked at the cost of refurbishing Adams to make it fit for purpose rather than moving to new accommodation.

9.2 Estates – Proposed Automotive Relocation 

096 The committee noted the proposed automotive relocation report (distributed as F&A.200323.009). GM reported that new lease terms are not favourable, leading to moving from London Road being the best option. There is no current fund to enable a bid for new accommodation. After long consideration, the best option is considered to be moving the London Road provision into the Highfields site. This would achieve full utilisation of the Highfields site. There is also the option of further accommodation near Highfields should more be needed. 

097 Governors agreed that the new lease terms for London Road represent a risk and that reducing the college footprint by one site was a good idea. 

098 One governor asked whether the move would provide a cost saving. GM responded that it would reduce the college’s overall footprint so a modest saving would be achieved long term.

099 Two committee governors had visited Highfields with GM to look at the options available and are supportive of the move. They are keen to ensure that the college estate is used as efficiently as possible.

9.3 Estates – Development Programme Procurement 

100 The committee noted the development programme procurement report (distributed as F&A.200323.010). GM reported that board approval of contract awards for building projects will be required over the next few months, ahead of the July meeting. All the projects reported on form part of the board approved estates strategy and have different timescales. 

101 The first contract that will require approval is for the SLDD building that will enable the move of learners from Arthur Mee to the Basford campus. An ESFA transformation grant has been achieved for this. The college has received further funds that will enable the increase in the cost of the project since the grant was awarded to be covered. The tender exercise will shortly be commenced for this, with the intention to seek board approval and place an order with the selected contractor by the end of May. The building should be completed by July 2024. 

One governor commented that the cost per square foot for the project is high. GM agreed and explained that the project has been rationalised as much as possible already. 

The committee resolved that an extraordinary meeting should be held to recommend this contract to the board for approval, due to the large value of the approval being sought.#

Action – JW/RR to arrange a Finance and Assets meeting in May to enable recommendation for approval of the contract award for the SLDD building to the board. 

102 The second contract is the refurbishment of parts of 25 Stoney Street, funding for this is also an estates transformation grant. The work will take place across the next two college summer holidays. The contract to be awarded, in April, is for the work that will occur this year. The committee resolved that the recommendation to approve this contract award for this project can be sought by written resolution. 

103 The third contract relates to a further grant funded project to support learners on the T level nursing pathway. This consists of the fitting out of a teaching ward and new classrooms. 

The committee resolved that written resolution is appropriate for the recommendation for approval of this project. 

GM reported that it may be possible to prepare the request for approval for this project in time for the next board meeting. 

Action – JW/GM to explore whether approval for this project can be sought at the board meeting on Monday 27th March.

10.0 Policy Review 

10.1 Fees policy 

104 The committee reviewed the fees policy (distributed as F&A.200323.011) and resolved to recommend it to the board for approval. 

10.2 Treasury management policy 

105 The committee reviewed the treasury management policy (distributed as F&A.200323.012) and resolved to recommend it to the board for approval.

11.0 Review of Risks

106 The committee received and noted the finance and resources section of the risk register (distributed as F&A.200323.013) and confirmed that the agenda and reports reflected those risks. Governors noted the updates to the risks identified.

12.0 AOB 

107 There were no items of AOB.

13.0 Date of the Next Meeting 

108 The date of the next meeting was confirmed as Monday 26th June 2023 at 4.30pm.