The Chair referred to the Remote Meeting Procedure and Protocol (previously circulated) and reminded those present that, although the meeting was held remotely, the Corporation’s Instrument & Articles and Standing Orders still applied.
PART I – OPEN ITEMS
In the absence of the Board Chair, G. Mills, as Board Vice Chair,
took the Chair for the duration of the meeting.
53/22. Declarations of Interest
Recommendation from Finance & Business Operations Committee – 01 November 2022
54/22. Treasury Management Policy (Appendix – Agenda Item 3.a.i.)
The Committee Chair presented for approval the Draft Treasury Management Policy (previously circulated) as recommended by the Finance & Business Operations Committee at its meeting on 01 November 2022. (Extract of Draft Minutes previously circulated).
The EDF explained that this new procedure underpinned the College’s Financial Regulations and its purpose was to puts some boundaries and parameters on how the college would approach investing cash that was not needed immediately to maximise interest earning potential during these periods.
Resolved: That: the Draft Treasury Management Policy be approved.
55/22. Consideration of Appointment of Bankers to the College (Confidential Appendix – Agenda Item 3.a.ii)
Arising from the Board’s approval of the Treasury Management Policy, the Executive Director of Finance presented a recommendation seeking approval to set up a new bank account with Barclays Bank for the purposes of improving the investment returns on available cash held by the College.
The EDF explained that –
- While Interest rates were at historic lows there had been limited benefit to the college in investing surplus cash on fixed term deposits in order to improve the returns from cash balances held.
- However, as Interest rates had risen, it was appropriate to consider maximising the return on these funds through short term deposits (i.e., depositing funds in accounts where cash deposited cannot then be accessed for a fixed period (for example 30, 60, 90 or 120 day notice) but which attract a better interest rate).
- The college’s Treasury Management Policy had been updated to ensure that appropriate procedures and controls were in place to manage and reduce the risk of the college over-committing itself and running out of available cash to pay suppliers, while ensuring that the college achieved an appropriate interest return on surplus cash held.
- After market testing, Barclays Bank had been approached as the college had a historic relationship and was one of the main banks active in the education sector. It also offered higher deposit rates than the college’s current bankers.
- To access these rates, the college was required to hold a Business Premium Account with the relevant Day Notice accounts.
- The college’s Financial Regulations required the Board to approve the appointment.
In response to questions, the EDF confirmed that –
- The Treasury Policy set a limit so the college must plan to keep a “buffer” of cash to be immediately available at all times, mitigating the risk that funds were “locked up” and not available for immediate use.
- The Policy required the college to only consider opening accounts with strong and reputable banks for this activity.
- This action would not detrimentally affect the positive relationship with the college’s current banker.
Resolved: That: Authority be delegated to the Principal/CEO and Executive Director of Finance to open appropriate Business Premium Accounts and 32, 65 and 95 Day Notice accounts, as required with Barclays Bank for investment of surplus cash in line with the approved Treasury Management Policy.
56/22. Date of Next Meeting – Scheduled Meeting – Monday, 12 December 2022 from 5.30 p.m. Venue – London Road Campus.
The meeting concluded at 4.56 p.m.