Finance & Assets Committee Non-confidential minutes of the meeting held on Monday 2nd October 2023 at 4.30pm via Microsoft Teams

1.0 Welcome and Apologies

151 Apologies were received from Steve Wooler and David Marlow. Fiona Chalk (external governance reviewer) was in attendance as an observer.

2.0 Declarations of Interest

152 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 

No other interests were declared.

3.0 Committee Vice Chair 23/24 

153 The Committee resolved to reappoint AS as Vice Chair of the Committee for 23/24. 

4.0 Minutes of the Previous Meeting 

154 The Committee resolved that the non-confidential and confidential minutes of the meeting held on 26th June 2023 (distributed as F&A.021023.002a and b) be approved as a true record.

5.0 Actions and Matters Arising 

5.1 Action Tracker 

155 The open action tracker (distributed as F&A.021023.003) was reviewed. All actions have been closed. 

5.2 Matters Arising 

156 There were no matters arising.

6.0 Management Accounts 

6.1 P12 Management accounts 

157 DN took governors through the headlines of the period 12 (to 31 July 2023) management accounts (distributed as F&A.021023.004). Key points highlighted: 

• Despite some concerns earlier in the year, the 22/23 budget EBITDA target and banking covenant tests had been met. 
• HE advance loans and full cost have both finished behind target for the year but this had been tracked throughout
• Pay overall slightly over budget, non pay spend is significantly below 

158 A governor queried whether the reduced non pay spend indicated areas of underinvestment that may represent a risk to the college in future. DN responded that the spend had been carefully managed but funds had been available where needed. 

159 A governor commented on the variable accounts position across the year, particularly in relation to AEB. DN responded that the college is working hard through curriculum planning to smooth this out, through initiatives such as enrolling adult students earlier in the year and improving learning support funding capture. 

160 The Chair was pleased to note that the college had delivered its targets and had reported to the committee consistently on how it would achieve this across the year. He also thanked the college for the openness of the conversations with governors over 22/23. 

6.2 Enrolment and applications update 

161 The committee received the update report (F&A.021023.005). The college has achieved its highest enrolment numbers ever, with increased numbers of progressing learners and external applicants. Starting enrolment for adult students earlier in the Summer has also been successful. HE enrolments are behind target but still enrolling and already ahead of last year. Using technology to communicate with applicants has been a key part of this year’s success.

162 Governors congratulated CE and colleagues on a successful enrolment campaign, acknowledging that the college seems to have a greater number of students even than the overall higher national picture for 23/24. 

163 A governor asked what was behind the improved HE enrolment numbers for this year. JS responded that the new AP for HE and CE had been working hard on a revised and earlier marketing effort. CE explained that the college had been more proactive with local 6th formers for whom the college HE environment is appropriate. 

164 A governor asked about retention indications given past attrition numbers. CE responded that retention is currently stronger than last year and the withdrawal rate from this point is expected to decrease. 

165 The Chair congratulated the college on the excellent enrolment position and emphasised the benefit of this starting the college in a strong financial position for the year. 

6.3 Subcontracting update 

This item was minuted as confidential.

7.0 Pay Award

This item was minuted as confidential.

8.0 Refinancing

This item was minuted as confidential.

9.0 MIS 

166 The Committee received the MIS delivery plan update (distributed as F&A.021023.009). The new HR, payroll and finance systems installed over 22/23 are now live. The most recent IT/MIS and Estates survey results show further very positive results relating to the satisfaction of the services’ customers. 

167 A governor asked how IT investment in curriculum areas is prioritised. RW responded that this is curriculum led, with APs deciding on the order in which projects should be completed.

10.0 IT 

168 The Committee received the IT strategy delivery update (distributed as F&A.021023.020). This is now in its third year and comes to an end in Summer 24. The Jisc telephony project is nearly complete following delays and the college is still making good progress in working towards Cyber Essentials.

11.0 Estates

11.1 Estates Development Progress Report 

169 The T level project is now complete as in the report (distributed as F&A.021023.011), despite the collapse of the contractor initially awarded the contract in early Summer. This same contractor had been taken on to carry out the IT suite work at Highfields, which is now being held over until next year. The renovation work at 25 Stoney St has been completed. 

11.2 Construction Skills Centre – contract award 

This item was minuted as confidential. 

11.3 Update on SLDD Building progress 

170 The committee reviewed the progress report on this project (distributed as F&A.021023.011). Completion has been delayed until November 2024 which will enable students to move in from January 2025. 

171 AC pointed out to governors that under the return to the public sector, colleges are permitted to reinvest any disposal proceeds until March 2025. This is a potential risk and may influence how the college wishes to proceed once the SLDD building is complete.

11.4 London Road/Highfields update on move 

172 The committee reviewed the update around plans to move automotive education from London Roads to the Highfields campus (distributed as F&A.021023.014). Automotive, electrical and engineering recruitment has been so successful this year that more space for these areas at Highfields is now required than had been anticipated. JS reported that ELT is having a strategy day soon to look at this issue across all campuses. 

11.5 Decarbonisation Grant – approval for funding grant bid 

This item was minuted as confidential. 

173 A governor asked about future plans for the Adams building. AC responded that initiatives around this have been complicated by the constraints on obtaining funding for significant capital projects following colleges having been returned to the public sector.

12.0 Health and Safety

174 The committee reviewed the annual Health and Safety report and Health and Safety policy and statement (distributed as F&A.021023.016). Some improvements have been made over the last year around fire safety, first aid and risk assessments. APs are now attending Health and Safety committee meetings which should improve compliance at individual centres. AC reported that Health and Safety is currently an amber risk on the strategic risk register because the college acknowledges a need to improve, even though there are no major immediate risks faced. Health and Safety is on the 23/24 internal audit plan. 

175 The Chair expressed his disappointment in the Health and Safety report and that it should have acknowledged more candidly that whilst there have been no serious issues there is room for improvement across the organisation. He acknowledged the better communication between the Health and Safety team and college leaders but emphasised the need for greater openness and effort with Health and Safety across all areas of the college. AC acknowledged that this is needed, and that there are plans to better train college senior leaders to help their knowledge and practice. 

176 The committee resolved to recommend the Health and Safety policy and statement to the board for approval. It also resolved to recommend that the Health and Safety statement should be signed by the Chair of Governors and the CEO and Principal.

13.0 Insurance

177 The committee received an update on the renewal of the college’s insurance arrangements including directors’ and officers’ cover (distributed as F&A.021023.017). Previously this has been reported to the audit committee. 

178 A governor asked whether the college had needed to make any claims against its cybersecurity insurance. DN responded that this has not been needed so far. Governors are supportive of the expense of cybersecurity insurance given the significant impact and likelihood of this risk for all organisations.

14.0 Employee Relations

179 The committee received an update on current tribunal cases in order to inform it of potential risk in this area (distributed as F&A.021023.018). Of the tribunal claims reported, two have now been resolved. One ongoing claim represents a potential reputational risk which is being carefully monitored by the college.

15.0 Review of Risks

180 The committee received and noted the finance and resources section of the risk register (distributed as F&A.021023.019). A governor commented that the majority of the risks had been discussed under the items at the meeting.

16.0 AOB 

181 The committee thanked college leaders for the positive matters reported on at the meeting and the good progress made to date. 

17.0 Date of the Next Meeting 

182 The next Finance & Assets Committee meeting will be held on Monday 27th November 2023 at 4.30pm via MS Teams. 

The Chair closed the meeting at 6.34 pm.