Minutes of the Finance Business Operation - 4 February 2025

M. Hartland in the Chair.

The Committee Chair welcomed P. Adams, Prof. J Barratt and A Rao to their first meeting as Committee members.

01/25.  Declarations of Interest

No pecuniary interests were declared.

02/25.  Minutes of Meeting Held 03 December 2024 (Appendix – Agenda Item 4)

Resolved:  That the Minutes of the meeting held on 03 December 2024, be approved as a true and correct record.

It was agreed that the Committee Chair discuss the appointment of a Committee Vice Chair with the Board Chair.

03/25.  Matters Arising

None.

04/25.  Period 5 Management Accounts (Confidential Appendices - Agenda Item 4)

The Committee received the Period 5 Management Accounts (previously circulated).  The Accounts had been circulated to all governors. 

The Committee noted the following -

• Forecast EBITDA had increased from 5.7% at P3 to 6.2% at P5, resulting in an increase of 10 points to the Financial Health score.
• The Forecast had improved since P5. The key drivers were:
  • Lower Local Government Pension Scheme (LGPS) Employer contributions
  • Reduction in Forecast HE income offset by improved forecast Full Cost income.
  • Increased forecast 16-18 income and higher Pay costs to reflect the current Sixth Form Colleges Association (SFCA) pay offer to teachers offset by additional funding expected to offset increased pay.

The Committee also received an update on the 2024-25 Budget and performance to date with respect to –

• 16-18 Core funding and High Needs funding
  • Forecast 16-19 income had been adjusted upwards to reflect the estimated impact of the government’s commitment to fund a 3.5% pay increase for teachers up to March 2025, with a 5.5.% increase from April to July 2025. This offer had also been included in the pay forecast.
  • In year Growth funding had not been included in the forecast outturn at this stage.
  • The value of the additional grant to offset the impact of the National Insurance increase in April 2025, had also not been included in forecast income nor had the cost of this been adjusted for in forecast pay costs. This was expected to be broadly neutral overall.
  • High Needs Element 3 funding:
  • While overall recruitment had increased, the numbers of high needs students was lower than in 2023 - 2024. Overall, there remained a forecast shortfall.
• Apprenticeship income:
  • Apprenticeship recruitment was on target.
• Adult: AEB
  • A second phase of subcontracted procurement / allocation was planned over January.
  • Distance Learning and Trades Union Studies which comprised of short roll-on roll-off courses, and therefore carry the greatest inherent uncertainty, were forecast to achieve budget.
• Higher Education
  • Plans for a further enrolment to the numbers forecast starting in February 2025, on HTQ HE courses had not materialised. The forecast had therefore been reduced further to reflect this lower position.
  • HSIF Grant funding enrolment targets had now been relaxed; the college now needed to meet enrolment targets in any one academic year for each of the pathways for each year up to 2028.
• Pay
  • In December 2024, the government agreed to provide designated sixth forms with additional funding as part of the settlement of the judicial review taken out by the Sixth Form College Association (SFCA). This additional funding enabled the SFCA to make an improved offer to the teaching unions of 3.5% from September 2024, rising to 5.5% from 1 April 2025.
  • In December 2024, the Local Government Pension Scheme (LGPS) agreed to reduce the college’s support staff employer pension contributions from 22.1% to 18.9% in recognition of the inclusion of all colleges in the government’s pension guarantee announced in September 2024. The resulting pay cost reduction had been included in the P5 pay forecast. The Committee welcomed this.
• Non-Pay
  • Subcontracting costs were forecast to be slightly higher than budgeted.
  • There would be continued pressure on exams fees for 2024/25 from higher student enrolment and increased exam fees
  • Additional security staff had been deployed over and above the provision planned for and budgeted levels to ensure that vaping and general behaviour at the London Road and English Bridge campuses was actively and continually monitored.

05/25.  Health & Safety Term Report (Appendix, Agenda Item 5)

The Committee reviewed the Term Health & Safety Report (previously circulated).

In response to questions, the EDoF gave assurance on -  

• Fire safety procedures. All 3 campuses had completed a practice fire evacuation within the first few weeks of the new academic year, with all evacuated safely within the target time. The Annual Lockdown drill was completed in October 2024; neither drill events presented significant issues.
• There were no trends or patterns emerging from the audit findings across departments.
• There had been a rise in the Autumn Term of recorded First Aid incidents involving students. Whilst still low, the increase appeared to be linked to the general increase in the student population and in a small number of students with pre-existing medical conditions. First aiders were prepared to manage these incidents.  In addition, incidents recorded relating to Anxiety, Illness/sickness, Dizziness or well-being issues were referred to a first aider as a precaution, even when no first aid was administered.  Regarding the number of incidents whereby students had attended Accident & Emergency, there appeared to be no underlying trends.  The EDoF undertook to clarify if any of the incidents involving ambulances represented a repeat occurrence relating to the same condition.  Of all the accidents reported, no immediate safety concerns have been identified.  

06/25.  Estates Update (Confidential Appendix, Agenda Item 6)

The Committee reviewed a report (previously circulated) on the key developments and activities undertaken to maintain and improve the college estate. 

The EDoF reported that –

• The installation of ‘stretch tents’ across open spaces to improve student experience at London Road Campus was nearing completion. The project could be rolled out to the Welsh Bridge Campus.
• New Electric Vehicle (EV) charging points would be installed across the sites during February 2025.
• Whilst the outcome of the Condition Improvement Grant bid submitted in December 2024 seeking to support the costs of a replacement roof on the Performing Arts building at London Road was not yet known, the college continued initial project planning work
• The college continued to review campus capacity plans to identify opportunities for further space efficiencies in anticipation of increased student numbers enrolling from September 2025. This included potential for improved use of space at London Road and the English Bridge campuses. As a final contingency, costs had been obtained for the provision of temporary classrooms.  

The Committee also received a further update on possibilities for development of parcels of land within the college’s ownership.

The Committee agreed that the capacity planning exercise was necessary.

07/25.  College Branding Update (Agenda Item 7)

Further to strategic discussion held at Board on 10 October 2024, on the creative design options for the college rebrand project (Board Min. No. 53/24 refers), the D – C, A & M provided a verbal and visual presentation on the outcome of the consultation on the five design options selected.

The final design selected to progress featured a combination of one of the design concepts using a colour scheme from another concept.  One of the biggest considerations in selecting the design was that it could be used in a variety of different environments and on mobile devices.

The marketing agency engaged to assist the college with developing the creative aspects of the rebrand project was finalising the college brand guidelines and the college was now preparing the public and stakeholder consultation exercise.  Once the brand guidelines had been finalised, the college would continue with preparations in anticipation of the college rebrand launch in September 2025, including redesign of the college’s website, managing lead-in times and working up proposals regarding the design of the college’s internal spaces.

08/25.  Risk (Appendix - Agenda item 8)

The Committee examined those risks within its remit and agreed that they had been identified and adequately discussed at the meeting. 

09/25.  Date of Next Meeting – Tuesday, 03 June 2025 from 5.30 p.m.

The meeting concluded at 6.14 p.m.