Corporation Minutes 3 July 2024
Corporation Minutes 3 July 2024
Corporation and Committee Minutes- Corporation Minutes 3 July 2024
Minutes of a meeting of the board of Leicester College Corporation
Held on 3 July 2024
Present: Danielle Gillett (Chair), Chloe Bakewell, Verity Hancock, Zubair Limbada*, Harmesh Manghra*, Neil McDougall, Robert Radford, Jackie Rossa*, Sophie Stevens-Robinson*, Lee Soden*, Sallyann Turner*, Tom Wilson
In Attendance: Louise Hazel - Director of Governance and Policy, Shabir Ismail - Deputy Principal, Kully Sandhu - Vice Principal, Della Sewell - Director of HR, Debi Donnarumma - Vice Principal
*joined meeting online via Teams
Declaration of Interest
1.1 The following declarations of interest were made:
1.1.1 Verity Hancock in item 6 as a Trustee of the National Space Centre.
1.1.2 Members of staff in item 9.1.
1.1.3 Members of the ELT in item 9.2.
Apologies for absence
2.1 Apologies for absence were received from Lesley Giles, Carol Goode, Chan Kataria, Louisa Poole and Heather Powell.
Minutes of the last meeting and matters arising
3.1 Members of the Corporation received and approved the minutes of the meeting on 21 March 2024.
3.2 Members of the Corporation received and approved the confidential minutes of the meeting on 21 March 2024.
3.3 As a matter arising, the Vice Principal updated the Corporation on discussions with the City Council over High Needs funding. A business case to the ESFA had been prepared but this had not been successful and so discussions at different levels continued over a local agreement. The ESFA had been involved in the meetings and confirmed that the College was being flexible in its approach. The City Council had continued to ask for more information but had so far failed to commit to a funding figure for 2024/25. The Principal would write to the Director of SEND and would ask the ESFA to intervene since no progress had been made.
3.4 Governors made a number of comments and asked the following questions:
3.4.1 The Vice Principal was thanked for all his efforts to work with the Council. F&GP had looked at the options and assumptions associated with high needs funding in the budget.
3.4.2 What could the ESFA do in terms of intervention? The City Council had a statutory duty and so it would need to ask the Council to explain how it was meeting its duty. It might also be able to move funding around but it was not clear how this might work.
3.4.3 What was the national picture for demand? There was huge demand which was not matched by funding; this would be something for a new government to address.
3.4.4 Escalation to the ESFA was supported; even if the College lost funding for this year and continued teaching into next year, it was important to get movement on the discussion so a decision could be made for 2025/26. Noted.
3.4.5 Agreed; F&GP had reviewed the costs of ceasing provision next year against the income that would be received, the options available to the College and had agreed the course of action.
3.5 Members of the Corporation received and approved the confidential notes of the away day on 7-8 June 2024.
SMB Group Update - Confidential
Full-time Student Survey 2023/2024
5.1 The Principal presented the findings of the full-time student survey. The following points were highlighted.
5.1.1 The survey outcomes showed a stable and slightly improving position. The overall agree percentage (satisfaction) for the College was 89%, 1% higher than the previous year.
5.1.2 The overall response rate was 72%, an increase of two points from the previous year.
5.1.3 Nine of the ten curriculum areas had an agree percentage at or above the College average, a 40% increase from the previous year.
5.1.4 The majority of areas had shown improvements. ESOL had the highest agree rating; Construction had shown significant improvement, up 8 points from the previous year.
5.1.5 It was pleasing to see that students were most satisfied with the expertise of their tutors. It was also encouraging that students understood the importance of working safely and that they felt safe in College.
5.1.6 There were some gaps in satisfaction levels by different groups which would need to be followed up.
5.2 Governors made a number of comments and asked the following questions:
5.2.1 The response rate looked impressive. How could the College make sure that students understood the questions they were being asked? Wherever possible, tutors went through the questions with students to make sure they understood them. The questions were reviewed each year to check they were understandable and relevant.
5.2.2 Was this just for full-time students? It was, the part-time survey was conducted separately
5.3 Members of the Corporation noted the outcomes of the full-time student survey for 2023/24.
Partnerships and Projects Report
6.1 The Principal presented the Partnerships and Projects Report. The following points were highlighted.
6.1.1 The paper outlined the existing and planned projects and partnership work. Partnerships included with the DWP and Jobcentre and UHL through sector based work programmes and with the City Council on a new Tourism Ambassador programme which had been very successful.
6.1.2 LSIF funded projects were working really well and there was lots of legacy activity.
6.1.3 A series of bids and tenders were underway for future projects and funding opportunities.
6.2 The Vice Principal outlined the proposal to continue the subcontract with the National Space Centre (NSC).
6.2.1 This had proven very successful with excellent retention and achievement and students progressing to positive destinations. It was proposed to continue the subcontract in 2024/25 and to subcontract both year groups.
6.2.2 Delivery would be on a 50/50 basis to make use of the specialist facilities at the NSC and SMC and the College would retain a 20% management fee.
6.3 Governors made a number of comments and asked the following questions:
6.3.1 The NSC relationship was prestigious; could this be referred to in the presentation on 15 July? The College’s work around space and aeronautical would be referenced. An application would also be made for a Beacon Award for the course.
6.3.2 The destinations data showed this was a successful project that was worth continuing. Agreed.
6.3.3 Had the questions relating to the Savoy Trust been resolved? They had.
6.4 Members of the Corporation noted the report and:
6.4.1 Approved the continued subcontract with the National Space Centre for 2024/25.
6.4.2 Approved the proposed partnerships with NIS and Peak Training subject to due diligence.
6.4.3 Approved the Subcontracting and Tendering Policy and Subcontracting Statement.
Finance Report (period 10) and Summer Reforecast
7.1 The Deputy Principal presented the finance report (period 10) and summer reforecast. The following points were highlighted.
7.1.1 The year to date result was an EBITDA deficit after restructuring costs of £101k compared to the forecast EBITDA deficit of £46k.
7.1.2 16-18 learner responsive learner numbers were above allocation by 212 students (including T Levels) and the College had received additional in-year funding for this.
7.1.3 Latest indications were that the AEB allocation would be exceeded and an additional £165k had been factored into the summer reforecast. The data return showed an increase of 10% compared to the same point last year.
7.1.4 Apprenticeship income was currently in line with the revised target and 20% above the same point last year.
7.1.5 HE income overall was expected to fall slightly short of the spring reforecast by £37k as a result of withdrawals.
7.1.6 A summer reforecast had been undertaken. There was an overall positive variance of £100k; variances were highlighted and included release of additional 16-18 income retained for potential clawback; numbers had held although there would still be a small clawback. Additional AEB funding had been assumed although remained unpredictable. The end of year uplift was expected to be around £400k but could be more. No AEB clawback was expected.
7.1.7 Overall, the expected EBITDA after restructuring costs would improve by £69k, from a surplus of £714k to £783k. This excluded any potential funding relating to an increase in high needs students.
7.1.8 The summer reforecast would meet the bank covenants, noting the agreement of a waiver for one of the covenants for this year, and the College’s financial health remained in the planned ‘requires improvement’ rating.
7.2 The Chair confirmed that F&GP had reviewed the finance report in detail.
7.3 Governors made a number of comments and asked the following questions:
7.3.1 The team should be congratulated on the outcome. Noted.
7.3.2 F&GP had also noted the potential risk around capital expenditure associated with the aeronautical project and IT. These would need careful monitoring. Agreed. Tenders had now been received for the aeronautical project and had come in £1m over plan; this figure could be reduced but the OfS would also be asked for additional funding.
7.4 Members of the Corporation noted the Period 10 finance report and approved the summer reforecast.
Zubair Limbada joined the meeting
Plans for 2024/2025
8.1 The Principal presented the Curriculum Delivery Plan for 2024/25. The following points were highlighted.
8.1.1 The plan set out the College’s curriculum offer and funding for 2024/25.
8.1.2 Contribution rates and potential areas of efficiency were reviewed during the planning process. Several courses were reviewed and revised for next year; new T levels would be introduced in legal services, accountancy, followed by cyber security, lab tech and health.
8.1.3 A close eye would be kept on any changes to the planned defunding of Level 3 qualifications under a new government. T levels were proving attractive and the intention would be to continue to expand these but alternative routes were still needed. It was noted that Loughborough College had ceased its performing arts provision.
8.1.4 The changes to adult funding and the tailored funding stream provided more flexibility and the opportunity to fund smaller group activity.
8.1.5 Apprenticeships were planned to grow with new standards being introduced and some, including childcare and pharmacy, might be reintroduced if there was sufficient demand.
8.1.6 HE remained challenging although projected numbers were stable.
8.2 The Chair of CSQI commented that the Committee had discussed the plan and confirmed it was well thought through. Some schools were also ceasing performing arts provision.
8.3 Members of the Corporation approved the Curriculum Delivery Plan for 2024/25.
8.4 The Deputy Principal presented the budget for 2024/25 and two-year financial plan. The following points were highlighted:
8.4.1 Overall, the proposed budget for 2024/25 showed an operating surplus of £511k moving to £1.1m in 2025/26 with an EBITDA of £2.3m moving to £2.9m in 2025/26.
8.4.2 Total income for 2024/25 was forecast to increase by £2.9m to £51.5m compared to 2023/24. This was mainly due to increases in 16-19 income. Apprenticeship income was also budgeted to increase marginally. The Adult Skills Fund (ASF) which replaced the AEB now included tailored learning which was previously non-regulated provision/community learning; this provided more flexibility. Other income streams including Higher Education and fees in general were held at 2023/24 levels.
8.4.3 Total forecast pay expenditure in 2024/25 would increase by £1.5m before restructuring costs; this reflected the increased delivery. A 1% pay increase had been assumed plus 1% for incremental increases.
8.4.4 Total non-pay expenditure of £14.6 million was included.
8.4.5 The capital programme was £8.8m of which the College would contribute £500k.
8.4.6 The financial health would be ‘good’ with a health score of 190 points for 2024/25. Other financial objectives would be met.
8.4.7 The assumptions, risks and sensitivities were highlighted. Risks included pay expectations which were not yet known and would be influenced by schools teachers’ pay. Additional High Needs funding for 100 students receiving element 2 had also been factored in. If the additional funding for high needs provision was not received, the budget would be a breakeven position.
8.5 The Chair reported that F&GP had considered the budget and tested some of the financial assumptions. The budget reflected what had been included in the SMB proposal.
8.6 Members of the Corporation:
8.6.1 Approved the financial plan for submission to the ESFA.
8.6.2 Approved the 2024/25 budgeted Income and Expenditure Account, Balance Sheet and Cash Flow contained within the plan.
8.6.3 Approved the Capital Expenditure Budget for 2024/25.
8.6.4 Noted the 2025/26 financial plan and its assumptions.
8.7 The Principal presented the Operating Statement for 2024/25. The following points were highlighted.
8.7.1 The KPIs and objectives in the Operating Statement flowed from the Strategic Plan and were linked to the Risk Register.
8.7.2 Actions and progress would be monitored on a termly basis.
8.8 Members of the Corporation approved the Operating Statement for 2024/25.Progress report on operating statement
Pay Award - Confidential
Lee Soden left the meeting
Risk Management Strategy 2024/2025
10.1 The Chair of the Audit Committee presented the Risk Management Strategy for 2024/25. The following points were highlighted.
10.1.1 The Corporation’s role in the management of risk as set out in the Risk Management Policy was reiterated. While the Audit Committee reviewed risk management at each meeting, it was the Corporation’s collective responsibility.
10.1.2 The current approach to risk management had been adopted in 2023/24. The Audit Committee had reviewed the approach and the proposed risk register at its last meeting. It had also considered documents prepared by RSM which set out the wider risk environment and emerging risks for the sector. This had helped the Committee sense check what was in the risk register.
10.1.3 The Committee had been assured that the emerging risks were covered within other strategic risks and no changes were needed to the strategic risks. Risks associated with any merger would be managed separately.
10.1.4 The proposed approach including the Risk Management Policy, Risk Appetite Statement and Risk Register and assurance map had been discussed in detail by the Audit Committee. They would enable the Committee to provide assurance that the College’s systems and risk management, control, governance processes and arrangements for securing economies and efficiencies.
10.2 Members of the Corporation thanked the Audit Committee for its work, accepted the recommendation of the Committee and approved the Risk Appetite Statement, Risk Assurance Map and Risk Register for 2024/25.
Policies
11.1 The Director of Governance and Policy presented the Student Union Constitution and Student Union Freedom of Speeach Policy for approval. The following points were highlighted.
11.1.1 The Student Union Constitution had been reviewed by the Student Council and a series of amendments were proposed. These included clarification of sanctions where members failed to comply with the Code of Conduct, changes to the percentage required for a no confidence vote, additions to the Code of Conduct and minor housekeeping changes.
11.1.2 The Student Union was now also required to have its own Freedom of Speech Policy. The Policy followed the College’s own policy which had been approved earlier in the year. It might need to be reviewed following any further guidance or instruction from the Office for Students.
11.2 In response to a question as to whether specific reference should be made to Prevent in the Freedom of Speech Policy, it was confirmed this would be followed up.
11.3 Members of the Corporation approved the Student Union Constitution and Student Union Freedom of Speech Policy.
Corporation Calendar and Business Cycle
12.1 The Director of Governance and Policy presented the Corporation Calendar and Business Cycle for 2024/25. The following points were highlighted.
12.1.1 The calendar and business cycle were similar to that adopted in the current year with some slight changes.
12.1.2 Additional meetings would be called if needed.
12.2 In response to a question it was confirmed that pay awards would be covered under the December agenda.
12.3 Members of the Corporation approved the Corporation Calendar and Business Cycle.Governor Visits Reports
Any other business
13.1 There was no other business.
Item from Audit Acommittee: Risk Management Update
14.1 Members of the Corporation received and noted the Risk Management Update.
Governor Visits Reports
15.1 Members of the Corporation received and noted the Governor Visit Reports.
Annual Strategic Conversation Outcome Letter
16.1 Members of the Corporation received and noted the Annual Strategic Conversation Outcome letter.
Stakeholder Engagement Strategy Review
17.1 Members of the Corporation received and noted the Operating Statement progress Report.
Progress Report on Operating Statement
18.1 Members of the Corporation received and noted the Operating Statement progress Report.
Governor Appointments
19.1 Members of the Corporation received and noted the Governor Appointments Report.
Date of Future Meetings
31 October 2024
20 November 2024 (Provisional)
11 December 2024
30 January 2025 (Provisional)
3 April 2025
6/7 June 2025 (Away Days)
3 July 2025