Format for Governors Meeting Minutes - Tyne Metropolitan College

Minutes of the Meeting of the Finance & PersonnelCommittee of Tyne Metropolitan College held at 12.00noon on Tuesday, 6 December 2012 in the Board Room,Coast Road CampusPresent:Dr Adam Langman, ChairMr Ian GordonCllr Janet HunterMrs Helen Jones (until 1.12 pm)Mr Jon Vincent, Principal (until 2 pm)In attendance:Mrs Rosamund Moore, Clerk to the CorporationMrs Ann-Marie Crozier, Deputy Principal: Finance & Corporate Development (until2.10 pm)Mrs Audrey Kingham, Deputy Principal: Curriculum & Business Development (until2.10 pm)Mr Andy Carr, Financial Controller (until 2.10 pm)Mr Victor Reid, Director of Business Development (until 2.10 pm)Mrs Pam Veitch, Procurement Director for North-East Shared Services Partnership(until 12.25 pm)Mrs Helen Tansey, Minutes Secretary (until 2.10 pm)[The meeting started at 12.05 pm]1. Apologies for absenceApologies were received from Mr Stephenson.ACTION2. Declarations of interest and possible resolutions regarding withdrawalMr Gordon and Dr Langman in respect of John Spence Community High School and MrsJones in respect of Beacon Hill School and North Tyneside Academy Foundation, CllrHunter in respect of North Tyneside Council. The Principal and the two Deputy Principalsin the restricted section of item 15 and withdrawals were agreed.3. Procurement of Contract for Cleaning ServicesIntroductions were made and Mrs Veitch presented her report and recommendation to theCommittee.A separate, confidential minute was taken of this itemThe Committee agreed to award the contract for Cleaning Services to Mitie Cleaningand Environmental Services Ltd.The Chair thanked Mrs Veitch for her work and the presentation of the report and she leftthe meeting at 12.25 pm.4. Minutes and matters arising from the meeting held on 2 October 2012 (incl.confidential sections)The minutes of the meeting of 2 October 2012 were approved as a true record andsigned by the Committee Chair.Under matters arising, item 3, the Deputy Principal: Finance & Corporate Developmentindicated that she would give a verbal update on the strategies to attract suitable BME jobapplicants to the College as part of the HR Report, item 5.a.Under matters arising, item 7 Financial Regulations, it was hoped to bring furtherrecommendations in respect of governance matters to the March meeting.All other actions were being, or had been taken forward as indicated in the minutes.AMC /RMMAgenda7 MarchS:\RosM\Clerk Corp\Website Minutes\2012_13\3. Mar 2013 Upload\Minutes Fin&Per 6 December 12.docx Page 1

5. HR Report and Safer Recruitment Policy5.a HR ReportThe Deputy Principal: Finance & Corporate Development presented the HR Report whichcovered statistics about the headcount and full-time equivalent figures, staff turnover, thestaff profile, absence monitoring, performance management returns, work with the tradeunions, and a revised Safer Recruitment Policy.The slight increase in the staff headcount since 1 August 2012 was the result of plannedrecruitment. The key performance measure to monitor was the pay-to-income ratio ratherthan the headcount. Most of the movement had been in teaching support staff following adeliberate decision to employ more staff rather than to use agency staff. In respect of staffturnover, the Committee requested a breakdown by category of staff. It was noted that thefigure did include some managed turnover through restructuring.AMCThe College had made a concerted effort to increase the number of BME staff in keepingwith its strategic plan target and the BME profile had been increased in the early part ofthe year, but the member staff had subsequently left the College. The College didadvertise through the Network of Black Professionals and it was noted that Mrs Soni hadmet with the Principal to discuss broadening more local networks. There had been anincrease in the number of applications from BME backgrounds and this was still very mucha consideration in the new Strategic Plan, especially as the Self Assessment Reportshowed that 5.9% of the local population was from a BME background.The Principal explained that he had requested figures from the HR department thismorning on the number of BME applicants and number who had been interviewed and hewould report these findings upon receipt.JVThe Deputy Principal: Finance & Corporate Development reported that, although staff sickabsence had been reduced significantly last year, the number of days lost this year washigher than at the same point last year. This seemed to be replicated across collegesthroughout the region but there did not appear to be a specific reason for this at TyneMetalthough there had been an increase in long-term absence. The HR team was continuingto monitor sick absence closely and the Deputy Principal gave assurance that the Collegewas trying to maintain last year’s statistics, that a staff absence procedure was in placeand staff were also supported. It was noted that the College’s sick leave policy was in linewith the national scheme for colleges.Performance management returns were provided for 2011/12 and for 2012/13. To date,only 36% of PDR paperwork had been returned to the HR department for 2012/13 butfeedback from managers had confirmed that PDR discussions had taken place andobjectives for the year discussed but delays to writing up the discussions had occurreddue to peaks in managers’ workloads and competing priorities. The members of theSenior Leadership Team were discussing how the process might be simplified. Inresponse to Governors’ questions, it was noted that any outstanding performance reviewswere picked up with the Heads of Department in Quality Improvement Reviews.The Deputy Principal: Finance & Corporate Development highlighted statistical informationabout the HR caseload and reported that some cases had been resolved since writing thereport and there were no matters which needed to be brought to the Committee’sattention.With regard to the trade unions, most of the work involved the development of policies andprocedures and the TU representatives continued to make a positive contribution.Governors considered and noted the HR Report.S:\RosM\Clerk Corp\Website Minutes\2012_13\3. Mar 2013 Upload\Minutes Fin&Per 6 December 12.docx Page 2

5.b Safer Recruitment Policy, issue 3The Deputy Principal: Finance and Corporate Development presented the revised SaferRecruitment Policy which had been changed in line with legislative changes in respect ofthe Protection of Freedoms Act which came into effect in October 2012 (previously flaggedto the Committee).The Deputy Principal explained that colleges had been awaiting guidance from theAssociation of Colleges on how the new legislation impacted procedures in the FE sector,but had decided to amend its policies and procedures rather than delaying any further. Inessence, a blanket approach to enhanced CRB checks was no longer permissible and theCollege had to consider each job role to determine if the role came into the category of‘regulated activity’. A standard CRB check would still be carried out for employees andvolunteers, including Governors who were in ‘non-regulated activity’. It was noted that, asthe employer, the College had the right to undertake a standard CRB check on anyemployee. The College’s underpinning CRB procedure was being reviewed and amendedby the Senior Leadership Team in light of the latest legislation. This included a rollingprogramme of review of CRB disclosures. Responding to Governors, the Deputy Principalexplained that the procedures covered the steps that would be taken if an individual didnot divulge any past events.In response to Governors’ questions, the Deputy Principal: Finance & CorporateDevelopment indicated that there had been no clarification on portability of CRBdisclosures.Governors agreed to recommend the Safer Recruitment Policy, issue 3 to theCorporation Board for approval in December.AgendaCorp.17 Dec.At the close of this item, the Principal drew attention to the fact that UCU had asked allcolleges to adopt the Guidance for Regulating Working Hours in FE Colleges which hadbeen part of the national negotiations between the unions and the Association of Colleges.The Senior Leadership Team had considered this matter and agreed that the Collegeshould sign up to the guidance on the basis that the College’s existing working practicesand procedures were in line with the guidance.6. 6.a Financial Statements & Letter of Representation for the Period 1/8/2011 to31/7/2012Thanking the Financial Controller and his team for their hard work, the Deputy Principal:Finance and Corporate Development presented the Financial Statements and Letter ofRepresentation for the period 1 August 2011 to 31 July 2012 and explained that the formatwas prescribed in the Skills Funding Agency’s Accounts Direction.She highlighted the fact that the College had moved from a deficit to a surplus positionfollowing the announcement of new reconciliation arrangements issued by the SFA inOctober 2012. The SFA had made this decision because of the significantunderperformance in Adult Skills Budget income across the FE sector. Under these newarrangements, the College came into the category of providers that only had to repay 50%of the underperformance and the outcome was a windfall of some £400,000 leading to theabove mentioned operating surplus.Turning to the balance sheet, the Deputy Principal: Finance & Corporate Developmentdrew Governors’ attention to the improving position in respect of net current liabilities. Shehoped that these liabilities would continue to decrease as this was one of the measureswhich the SFA used in assessing the College’s financial health.It was noted that the loan with Barclays Bank had been repaid and there were no changesin respect of the loan with Handelsbanken.S:\RosM\Clerk Corp\Website Minutes\2012_13\3. Mar 2013 Upload\Minutes Fin&Per 6 December 12.docx Page 3

The Deputy Principal: Finance & Corporate Development presented the update on2012/13 learner numbers and funding.A separate, confidential minute was taken of this item.Governors considered and noted the report.9. Outcome of Business Review 1The Deputy Principal: Curriculum & Business Development presented the outcome ofBusiness Review 1 to the Committee.A separate, confidential minute was taken of this item.Governors considered and noted the report.10. Performance of Business Partnerships Against Contract Values 2012/13The Deputy Principal: Curriculum & Business Development presented the report onBusiness Partners.A separate, confidential minute was taken of this item.The Governors considered and noted the report, supporting the intention of seniormanagers to undertake due diligence on the companies recorded in the confidentialminutes.AMC/AK11. Business Development Report - International Recruitment ProposalA separate, confidential minute was taken of this item.Governors agreed to recommend the proposed action outlined in the report to theCorporation Board for approval.AgendaCorp.17 DecThe Principal left the meeting at 2pm.12. SFA Confirmation of College’s Financial HealthIn the Principal’s absence the Deputy Principal: Finance & Corporate Development drewattention to the Skills Funding Agency’s letter of 9 November 2012 which concurred withthe College’s own assessment of financial health for the period 2011/12 to 2014/15. For2011/12, the assessment reflected the projected outturn position as reported to Governorsand the SFA in July 2012. The Deputy Principal reminded Governors that the College’sfinancial health would be reassessed following submission of the Finance Record (anabbreviated version of the approved Financial Statements) at the end of December and itwould then return to ‘good’ for 2011/12.Included in Annex A to the letter was information on the College’s planned performance.This included a comparison, where possible, with the average in 2010/11 for some of thekey indicators of a college’s financial health. Any shaded areas reflected the indicatorswhere the College’s performance would be lower than average. Responding toGovernors’ questions, the Deputy Principal: Finance and Corporate Developmentexplained that any such areas related to the cash position. Although there was a need togenerate more cash, the Deputy Principal emphasised that there was no cause forconcern and merely showed that some colleges had healthier cash reserves.Governors considered and noted the Skills Funding Agency’s letter dated 9November 2012..S:\RosM\Clerk Corp\Website Minutes\2012_13\3. Mar 2013 Upload\Minutes Fin&Per 6 December 12.docx Page 5

13. Internal Financial Management and Control EvaluationGovernors noted that the FMCE was no longer required by the Skills Funding Agency, butthat both the Clerk to the Corporation and Deputy Principal: Finance & CorporateDevelopment felt it was best practice to continue to complete the evaluation despite thework involved, given that the Skills Funding Agency was highly likely to issue a revisedthough similar questionnaire at some stage.The Governors noted the report which was for information only.14. Any Other BusinessNo matters were raised.15. Committee’s Draft Annual Report and Self Assessment, including Terms ofReference and restricted itemGovernors agreed that the Committee’s Annual Report and Self-Assessment werecomprehensive. There were no changes proposed to the Committee’s terms of reference.Governors agreed to recommend the non-restricted section of the Committee’sAnnual Report for 2011/12 and its Self Assessment to the Corporation Board.The restricted section of the Committee’s Annual Report was taken out of order.AgendaCorp.17 Dec.16. Assessment of Impact of Committee ActionsTo inform the Committee’s annual report to the Corporation Board, it was noted that theCommittee had, in accordance with its terms of reference:agreed to award the contract for cleaning services to Mitie Cleaning & EnvironmentalServices Ltdrequested a breakdown of staff turnover by category of staffagreed to recommend approval of the Safer Recruitment Policy, issue 3 to theCorporation Boardagreed to recommend for Corporation Board approval the Financial Statement and theLetter of Representation for the period 1/8/2011 to 31/7/2012agreed to highlight the excellent performance of the Finance team in respect ofcompletion of the year-end accounts to the Corporation Boardagreed to recommend the management accounts to 31 October 2012 for approval bythe Corporation Boardsupported the intention of senior managers undertaking due diligence on thecompanies recorded in the confidential minutesagreed to recommend the proposed action in respect the report on InternationalRecruitment as outlined in the report to the Corporation Board for approvalagreed to recommend the Committee’s Annual Report and Self Assessment to theCorporation BoardAMCAMC/AK17. Any confidential items to be declared non-confidential or non-exempt following thismeeting or conversely any items to be declared confidential or exempt. Item 3, Procurement of Contract for Cleaning Services Item 6, Draft Financial Statements and Letter of Representation until approved bythe Corporation Board Item 7, Management Accounts to 31 October 2012 Item 8, Update on 2012/13 Learner Numbers and Funding Item 9, Outcome of Business Review 1 Item 10, Performance of Business Partnerships Item 11, Business Development Report: International Recruitment Proposal Item 15 Restricted Section of Committee’s Annual ReportBoth Deputy Principals, the Director of Business Development, Financial Controller andMinutes Secretary left the meeting at 2.10 pm.Next scheduled meeting: Thursday, 7 March 2013, 12 noonThe meeting closed at 2.20 pm.S:\RosM\Clerk Corp\Website Minutes\2012_13\3. Mar 2013 Upload\Minutes Fin&Per 6 December 12.docx Page 6