Finance & Assets Committee Non-confidential minutes of the meeting held on Monday 27th November 2023 at 4.30pm via Microsoft Teams

1.0 Welcome and Apologies

198 Apologies were received from Andrew Unitt. In the absence of the Chair the meeting was chaired by Andrew Simpson.

2.0 Declarations of Interest

199 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 

No other interests were declared.

3.0 Minutes of the Previous Meeting 

200 The Committee resolved that the non-confidential and confidential minutes of the meeting held on 2nd October 2023 (distributed as F&A.271123.002) be approved as a true record.

4.0 Actions and Matters Arising 

4.1 Action Tracker 

201 The open action tracker (distributed as F&A.271123.003) was reviewed. The only action was confirmed complete. 

4.2 Matters Arising 

202 There were no matters arising.

5.0 Management Accounts 

5.1 P3 Management accounts 

203 AC advised that the P3 accounts (distributed as F&A.271123.004) contained key summary pages only due to the ongoing end of year audit work. He confirmed that budget comparatives used in the report are the revised budget figures agreed by the Board at the meeting on 16th October. Key points highlighted: 

• Nothing to indicate full year EBITDA will not be met 
• Income down against YTD budget, driven by a number of income lines. Largest gap is AEB, expected that this will achieve the full year budget. 
• Pay overall slightly below budget, non-pay spend is below YTD budget. These gaps are expected to close in year. 

204 A governor queried whether lessons around achieving AEB income targets in previous years have been learned. DN confirmed that AEB income will come in more during the year rather than there being a need to rely on increased activity closer to the end of the year. A governor queried when AEB income will catch up, DN confirmed this should happen by the end of P5. AC noted the complexity in ALS funding and the impact of that at the start of the year on AEB income. 

205 A governor commented on the value of the waterfall chart. A governor queried the number of unfilled posts currently and whether these posts needed to be filled. AC noted that recruitment of ALS staff to support the increase in students with additional needs was required. variable accounts position across the year, particularly in relation to AEB 206 The Committee accepted the report. 

5.2 Enrolment and applications update 

207 CE presented the update report (distributed as F&A.271123.005). The college is on track to confirm 7,000 16-19 students at the census point. HE enrolment is sitting at 90% of target and is likely to achieve 100% with enrolments for January starts. AC highlighted the positive impact on lagged funding in 24/25 based on the increased 16- 19 numbers. Governors noted the work underway in relation to applications for 24/25. 

208 The Committee was pleased to accept the very positive report.

6.0 Reconciliation 

209 DN explained the reconciliation report (distributed as F&A.271123.006) to the committee. He highlighted that the purpose of the report was to reconcile the P12 management accounts (July 2023) with the statutory accounts for the period to 31st July 2023. It was noted that no audit adjustments to the EBITDA figure presented in the July managements accounts had been necessary. Governors noted reconciliation of the last surplus/deficit reported to the committee with the final draft year end position, AC confirmed that these changes were as a result of the required accounting treatment. 

210 The Committee noted the positive report.

7.0 Annual Accounts 

7.1 Annual Accounts 22/23 

211 AC presented the draft annual accounts 22-23 to the Committee (distributed as F&A.271123.007). A governor queried whether an amendment was required to the corporate governance statement, AC confirmed he would review the point raised (Action AC). Further discussion around the going concern statement is contained within the confidential minutes. 

212 The Committee resolved to recommend the annual accounts to the Audit Committee and to support their recommendation to Board for approval subject to the satisfactory resolution of the points raised around the going concern statement. 

7.2 ESFA Finance Record 

213 AC confirmed that the Finance Plan uses a standard ESFA template (distributed as F&A.271123.008) and that all colleges are required to complete and return to the ESFA. Based on the information included the College’s financial health remains requires improvement for 22-23. The committee resolved to recommend approval of submission to the Board.

8.0 ESFA College Financial Health

214 Governors reviewed the letter from the ESFA (distributed as F&A.271123.009). AC confirmed that the financial health grade is based on the CFFR submitted to the ESFA in July 2023. The College has been confirmed as having a financial health rating of requires improvement for 22-23 and good for 23-24. The committee accepted the report.

9.0 Refinance 

215 This item was minuted as confidential.

10.0 Workforce 

JWo and DF joined the meeting for item 10 

10.1 People Services Termly Report 

216 JWo presented the key points from the report (distributed as F&A.271123.011): 

• Positive trends in resourcing. The impact of the new role of Recruitment Manager was noted in the positive onboarding experience for new staff 
• Pay award included in November pay run. 
• Transformation and change programme updates including the projects in progress 
• Mental health training brought in house 

10.2 Absence and Turnover Report 

217 JWo took governors through the report (distributed as F&A.271123.012). A governor asked how the work days lost through absence is calculated. JWo confirmed that this is an average across the college. A governor asked how the current level of days lost was viewed. JWo highlighted the progress made to bring this down since the pandemic and the work being undertaken on the ‘journey to 5’. He noted the work through occupational health and early intervention where appropriate. A governor queried what good would look like in terms of turnover. JWo noted the progress already made in a reduction over the last year and that the college was now targeting to be below 15% against an East Midlands average of 14.4%.

218 JWo confirmed that a new staff survey was being undertaken and that the outcomes will be reported to the committee at a later date. Governors raised questions on the processes of the survey and how and when data is gathered on response rate. JWo confirmed that work had been undertaken to reduce the barriers to completing the survey, particularly for colleagues with limited access to IT. 

10.3 People Strategy Update 

219 DF provided an update on progress against the People Strategy (distributed as F&A.271123.013). She confirmed that the new Vice Principal People and Culture joins the College in January and would look to review the People Strategy and align it to the College Strategic Plan. 

220 A governor noted that when the People Strategy was launched governors had expressed concern at the volume of actions to be completed, she questioned whether this had helped or hindered progress and would colleagues take this route again. DF confirmed that the approach had been helpful in that it had enabled focus on what was needed, had supported the delivery of the progress achieved and had supported the People and Culture Team to develop. This view was supported by JWo who highlighted the distance travelled since the People Strategy was adopted. 

221 The committee accepted the workforce reports. 

JWo and DF left the meeting.

11.0 Estates

11.1 Estates Capital Development Update 

222 Governors received and noted the report (distributed as F&A.271123.014). 

11.2 London Road 

This item was minuted as confidential.

11.3 Release of teaching space

223 GF presented the report seeking a recommendation for approval to the Board for the lease of additional space to relocate professional service staff from Adams and the City Hub and to provide additional exam space (distributed as F&A.271123.016). The relocation would enable teaching space to be freed up and in turn enable additional students to be accommodated. AC confirmed that the preferred option was that offered at Nottingham One, a site very close to the City Hub. A governor queried the impact of moving professional services and whether there were any downsides to this. GF noted that the relocation would enable teams to work in one area, enabling a more joined up approach. AC confirmed that team leads had responded positively to the proposal, staff will still be encouraged to go on site at each campus as work dictates. JS noted the better working environment for staff and the ease of increased collaboration between teams as they work more closely together. DN reflected that at present support teams still need to visit staff and students on the various sites and the relocation would not imply less contact. Discussion took place on the impact of the release of teaching space and the future need for that space. Governors asked for a report to a future meeting to provide more detail on the expected increase in student numbers and the resulting business case to need to increase capacity (Action AC). The committee resolved to recommend the approval of option b at Nottingham One to the Board for approval.

12.0 Policy Review

224 The committee reviewed the following policies: 

• CPD Policy (distributed as F&A.271123.017) 
• LGPS Discretions Policy (distributed as F&A.271123.018) 
• Pay Policy (distributed as F&A.271123.019) 

225 Subject to formatting changes as appropriate the committee resolved to recommend all policies to the Board for approval

13.0 Review of Risks 

226 The committee received and noted the finance section of the risk register (distributed as F&A.271123.020). AC highlighted the increase in FIN12 due to the number and scale of ongoing projects. He confirmed that the strategic risk register would be updated in light of items considered at the meeting and would be taken to Board in December.

14.0 AOB 

227 AC updated on the likely need for a written resolution, details to be shared in due course.

15.0 Date of the Next Meeting

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