AT A MEETING of the CORPORATE BOARD held in the College on MONDAY 7 DECEMBER 2009 at 6.30 pm. Present J G MOORLEY in the Chair B Allen A Armstrong N Baldry P Fisk B Guithrie J Heads N Johnson C Middlemass R Milburn B Ollerenshaw E A J Tait and A Townsend. Apologies for absence were received from P Ball and E Lugg. Also in attendance A Isherwood (New Principal) L Oliver (Clerk) and N Brewster N Davison and S Ruddock (Directorate). 1
Declarations of Interest B Guthrie declared an interest in his nomination for re-appointment as a Governor.
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Constitution of the Board Resolved That B Guthrie be re-appointed as a Governor for a further term of 4 years.
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Minutes The Minutes of the meetings held on 14 September and 12 October 2009 were confirmed as correct record and signed by the Chair.
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Minutes and Reports from Committees The Board considered the following Minutes and Reports from Committees – a)
Skills and Employment Committee of 19 October 2009
Finance and General Purposes Committee of 22 October and 23 November 2009 With regard to the Minutes of the meeting held on 22 October the Board considered a recommendation that with regard to Learner Numbers and Funding HE in 2009/10 that the Board should intervene when courses are oversubscribed and determine future policy. The Chair of the Committee referred to the main areas of discussion which included the ‘Going Concern’ checklist, and oversubscription on courses resulting in too many students attracting no income, the need to accelerate FIP 2. He also informed the Board that the annual budget deficit was equal to the interest payments on the mortgage for the New Build. Resolved That the Board be informed of when oversubscription on courses occurs so that a policy can be set to control the number of students enrolling who attract no income.
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b)
Personnel Committee of 2 and 30 November 2009
With regard to the Minutes of 30 November 2009 the Board considered a recommendation that with regard to Financial Improvement Plan 2 the Board should support the recommendations in the report to be considered later on the agenda and that it should also consider the use of an independent person to review the College’s situation invite the new Principal to be involved in the discussions at the Board Workshop in January 2010. Resolved That the recommendations of the Personnel Committee be adopted. c)
Search & Governance Committee of 2 November 2009
The Chair reported that progress was being made with regard to the filling of the two existing vacancies. d)
Standards Committee of 9 November 2009
The Chair of the Committee referred to the fact that data was now being presented to the Committee broken down by gender which it had never had before, highlighted the progress in collaboration with schools particularly in Newton Aycliffe and Spennymoor and drew Governors attention to the progress being made in HE. e)
Audit Committee of 9 and 23 November 2009
The Board considered recommendations from the Committee regarding – the lack of progress being made with regard to establishing a means of performance assessment for Senior Post Holders as recommended in the PFAR Report; and the re-appointment of KPMG as internal auditor for 2009/10 The Chair of Governors accepted that progress had been slow with regard to performance assessment, in part due to the appointment of a new Principal and the retirement of an Assistant Principal but that the issue would be resolved shortly. He also gave an undertaking to include the new Principal in the discussions. Resolved
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1.
That the comments of the Chair of Governors regarding progress on performance assessment of Senior Post Holders be noted.
2.
That KPMG be re-appointed as the College internal auditor for 2009/10.
Chief Executive’s Overview Report The Board considered the report of the Chief Executive giving an overview of the following topics (some of which were discussed at the AoC Conference in November) prior to consideration by the Board – Contextual facts and Events Key Messages Travel abroad Award of Training Quality Standards
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Resolved 1. 2. 6
That the report be noted. That the request for a member of staff to travel to Papua New Guinea be approved.
Annual Report 2008/9 of the Audit Committee The Board considered the Annual Report of the Audit Committee 2008/9 covering the period 1 August 2008 to 31 July 2009. Resolved That the opinion of the Audit Committee that the overall framework of control within the College is satisfactory be endorsed.
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Operating and Financial Review 2008/9 The Board considered a report requesting approval of the Financial Statements for 2008/9. The following documents were attached – Final Draft Outturn Report 2008/9 Financial Statements 2008/9 KPMG Annual Internal Audit Report 2008/9 Baker Tilly Final Audit Finding Report 2008/9 The report informed that there were 2 Letters of Representation from Baker Tilly to be signed; one for the Financial Statements Audit and one for the Regularity Audit. The accounts had been prepared in accordance with the Statement of Recommended Accounting Practice – Accounting in Further and Higher Education 2003, applicable accounting standards and FEFC/LSC circulars and on an ‘ongoing concern’ basis. So far as Auditing Standards 120 (Compliance with relevant laws and regulations) and 460 (Related party disclosures) were concerned the Chief Executive, advised by the Directorate and the Clerk where appropriate, considered there were no current or potential noncompliance transactions or other matters which need to be brought to the attention of the Board. So far as Standard 120 was concerned Governors were asked to consider what issues could be major and significant enough to cause shutdown or serious restriction of College operations. However only events that could threaten the principle of the ‘going concern’ needed to be considered. Both the Chair and the Principal have to sign statements regarding the College’s system of internal controls in accordance with the recommendations of the Cadbury Committee as expanded by the Turnbull guidance. The Board discussed the need to amend the report to take account of the fact that since Durham County Council had been given unitary status the district councils ceased to exist from 31 March 2009. This also meant that the Local Strategic Partnerships had also been abolished and replaced with 14 Area Action Partnerships.
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Resolved 1.
That the Annual Report and Financial Statements 2008/9 be approved subject to the Financial Statements being amended to take account of the establishment of the new unitary council for County Durham.
2.
That the Chair and Principal be authorised to sign the statements and a confirmatory letter to Baker Tilly having at their request – Discussed disclosure requirements concerning related parties and control in the College financial statements and having made enquiries, the Corporation was not aware of any transactions or other matters relevant to the disclosure requirements of Financial Reporting Standard No. 8 ‘Related Party Disclosures’ to be reported in the financial statements for the year ended 31 July 2009. Discussed the compliance of the College with relevant laws and regulations and having made enquiries the Corporation has confirmed that they were not aware of any actual or potential non-compliance with laws and regulations that could have material effect on the ability of the College to conduct its business and therefore on the results and financial position to be disclosed in the financial statements for the year ended 31 July 2009.
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3.
That the Chair and Principal be authorised to sign the Letters of Representation to Baker Tilly, the external auditor.
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That the Chair and Principal be authorise to sign a statement confirming compliance with the Cadbury Committee recommendations and the Turnbull Combined Code.
Financial Management and Control Evaluation (FMCE) The Board considered a report on the completion and return a self assessment of its financial management and control arrangements. In accordance with the required procedure the Audit Committee had considered the response at its meeting on 9 November 2009. The report indicated that there was no change to last year’s overall assessed grade and that there was an option to make a full or short return. A grade of ‘Good’ was the assessed grade for the following areas – Accountability Financial Planning Internal Control Financial Monitoring The return date for the questionnaire was 31 December for the short return and 22 October for the full return. Following consideration by the Audit Committee it was agreed that the College met the criteria for the short return. Resolved That the decision of the Audit Committee to submit the Short Return be endorsed.
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Financial Report 2009/10 The Board noted a financial report in the ‘early results’ format for the period to October 2009. Attached to the report were the following schedules – Income and Expenditure Statement Balance Sheet Cash Flow The report reflected the busy start to the year in both income and expenditure being more advanced at this stage compared with previous years. It was reported that the College was up to target with young and adult provision and that work was continuing with regard to the development of improved reporting regimes in line with FIP 2. The Board was also informed that the Financial Health ratio for the College was ‘satisfactory’.
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Financial Improvement Plan 2 The Board considered a confidential report on progress with the planning process for FIP 2. The paper reported on – Next Steps – an outline timetable of events Progress and Planning Staff Utilisation and Contribution matrix was nearing completion Future Funding Cuts for adult learner and employer responsive meant a reduction in funding and not a reduction in provision. Size and Fit Provision relating to estate usage, full time student numbers, inclusivity and service to clients Structure and organisation Scale/timetable/Approaches Corporation Review and Approval The Board was informed that the staff utilisation and cost contribution matrix would be available for discussion at the January 2010 Workshop meeting. The Board also took into account the views of the Personnel Committee expressed at its meeting held on 30 November 2009 regarding the use of an outside consultant and the involvement of the new Principal as reported under the Minutes of that Committee under Minute 4 (b) above. Resolved 1.
That the report providing an update on the planning process for FIP 2 including the submission of the staff utilisation and cost contribution matrix being submitted to the January 2010 Workshop meeting and recommendations of the Personnel Committee be endorsed.
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2.
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That the proposed reduction of 9% in FE spending nationally as reported in the Chief Executive’s Overview report (Minute 5 above) be taken into account when reviewing FIP 2 at the January 2010 Workshop.
Learner Numbers and Funding and Higher Education 2009/10 The Board considered a report on Learner Numbers and Funding and Higher Education 2009/10. The Board was informed that the College had now achieved its funding targets for young people and adult learners. With regard to adult enrolments above target the Board considered it appropriate to continue with those courses where the work was already scheduled and students enrolled. However consideration would need to given to any provision above that already being scheduled and provided. Adult safeguarded funding allocation was the same as the previous year with Adult Learning Support being increased by £20k. The HE target for learners had been increased 314 over the previous year attracting a total projected income of £887,751 with recruitment at 299 students. Sunderland University had approved virement of the 15 remaining places to the Cert Ed Programme which is oversubscribed. Unfortunately however the current cap on HE provision will affect the capacity to further develop HE capacity in the College. The four County Durham Colleges have been successful in an application for Progression Challenge Funding worth £500k over 2 years.
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Higher Education Strategy The Board considered a report on the Draft HE in FE Strategy which the College is obliged to prepare by the HEFCE. A copy of the strategy was attached to the report. The Board was informed that the strategy needed further refinement but that the deadline for submission was 11 January 2010, prior to the next meetings of either the Corporate Board or the Standards Committee. Any comments from Governors on the draft report should be passed to the Chair of the Standards Committee. Resolved That the Chair of the Standards Committee be authorised to approve amendments to the Strategy in order that it can be submitted to the HEFCE by the due date.
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Employer Responsive Update The Board considered a report informing on the performance to date of the Employer Responsive activities including apprenticeships and Train to Gain. The report provides commentary on the following areas of provision –
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Apprenticeship contracts 2009/10 Apprenticeship recruitment Skills and Employment Centre Train to Gain Enhanced Train to Gain Full cost provision Distance Learning Local Employer partnerships th 6 Month Unemployed Contract Training Quality Standard BTS Business Plan 14
Self Assessment Report 2008/9 The Board considered a report providing an update on progress towards the completion of the College SAR for 2008/9. A copy of the full SAR document was available on the College website with a draft summary document being attached to the report. The Chief Executive gave an explanation as to why nationally success rates will fall and why that made the issue of awarding grades more complex than in previous years. With regard to the lower than average success rates the Board was informed that many of the failures were in secondary subjects that students had enrolled for but took less interest in thereby increasing the failure rates. If they were not taken into account the success rate would rise significantly to 79%. Given the aforementioned comment B Guthrie suggested that at the top of Page 12 of the summary report the text should be amended to include a comment on those failures as part of the explanation for the lower success rates. Resolved That the SAR be endorsed as amended by the comment of B Guthrie.
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Corporate Governance Self Assessment Report 2008/9 The Board considered a report providing the first draft of the 2008/9 Self Assessment Report for Corporate Governance. The report detailed the areas for assessment with commentary and the Board agreed the grades to be attributed to each area. Resolved That the overall assessed grade for Corporate Governance be agreed as a Grade 3 based on the following assessments – Experience and expertise of Governors Grade 2 Setting Strategic Direction Grade 2 Improving performance and monitoring progress Grade 3 Towards achieving strategic aims and objectives Equality and Diversity Grade 2 Safeguarding children and vulnerable adults Grade 3 Appointment and performance management of Grade 3 Senior Post Holders Professional development of College Governors Grade 3
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Corporate Board Development Activity The Board considered a report proposing an intensive one day ‘Strategic Review’ activity to take place between January and March 2010. Resolved That a Strategic Review meeting be held in either late January or February 2010 with the new Principal being invited.
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Safeguarding Matters including CRB Checks for Governors The Board considered a report presenting the revised Safeguarding Children and Vulnerable Adults Policy which replaces the Child Protection Policy. The report detailed the safeguarding issues to date with the following actions having been taken – Oral warnings Written warnings Suspension Exclusion No action taken on complaint Outstanding forms complaints
88 46 23 1 22 39
The Board also considered the issue of CRB checks for Governors. Resolved
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1.
That the report be noted and the revised Safeguarding Children and Vulnerable Adults Policy endorsed.
2.
That Governors be subject to the CRB check regime.
Date of Next Meeting The Board noted that its next meeting will be held on 18 January 2010.
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