KING GEORGE V FURTHER EDUCATION CORPORATION
MINUTES OF THE MEETING OF THE FULL BOARD OF GOVERNORS
6.00pm Monday 10 December 2012
PRESENT
Arlene Allan (Governor)
Chris Baker (Governor)
Hannah Corner (Student Governor)
Rob Fletcher (Governor)
Matthew Green (Student Governor)
Paul Lacey (Governor)
Nick King (Staff Governor)
Morag Matthews (Staff Governor)
Julian McInerney (Parent Governor)
John Rostron (Governor)
Vipin Trivedi (Governor)
Sandra Unsworth (Governor)
Adele Wills (Principal/Governor)
In attendance
Michael Barker (Assistant Principal)
Will Melia (Assistant Principal)
Janet Regan(Assistant Principal)
Wendy Moorcroft (Clerk)
A Quorum being present, John Rostron (in the Chair) opened the meeting at 6.00pm.
12/96 Apologies
Elinor Dodd ( Governor)
Ronnie Fearn (Governor)
Bill Johnson (Governor)
Ian Swift (Vice Principal)
12/97 Minutes of the Meeting of 1 October 2012
The minutes were accepted as a true and accurate record and signed by the Chairman.
12/98 Matters Arising
12/86 Principal’s Report
It was noted that contact in Skelmersdale would be maintained through the Teachers of
Tomorrow initiative.
There were no other matters arising.
12/99 Principals Report
Student Activities and Staffing
Governors noted the many student activities that had taken place along with forthcoming
staffing changes.
Sixth Form Colleges and Academy Status
This would be discussed under Agenda item 12/100.
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Curriculum and Quality
Governors noted the plans and strategies in place for quality improvement as well as recent
outcomes for other Colleges under the new Ofsted framework. .
Marketing and Liaison
There had been two very successful Open Evenings and Governors noted the recent Marketing
and schools liaison activities.
Teachers of Tomorrow
The work on the joint project with Edge Hill University, St John Rigby and the Skelmersdale
schools was ongoing.
New Funding Methodology and 16-19 Study Programmes
Governors noted the changes to the new funding methodology and the potential impact on the
College.
A Level Reforms
Governors noted that after January 2013, students would no longer be allowed to re-sit A
Level modules in January.
Other
Governors also noted the recent activities with Partners, the ‘KGV’s got Talent’ event and the
invitation to the opening of the new Science suite followed by the Christmas concert on 18
December.
The Principal further reported that the College expected to be granted around £10-25k from
the Bill Kenyon trust relating to health awareness aiming ultimately for a Healthy College
award.
The Vice Chairman reported that at the recent AoC conference, colleges had been advised that
under the new funding methodology referred to earlier, where enrichment was relevant to the
student programme, was timetabled and organised or supervised it would be funded even if
not certificated.
Governors noted the Report
12/100 Sixth Form Colleges and Academy Status
The Principal reported that the Sixth Colleges Forum had issued a Report on the arguments
for and against conversion of Sixth Forms to Academies in the light of increasing Academy
competition. The main advantage would be the ability to reclaim back VAT but at a recent
meeting there appeared to be little appetite for this from sixth form colleges amidst fear of loss
of identity and the possibility of reverting back to local authority control. The view however
was that if the Forum took the decision to convert to academies then all sixth form colleges
would convert, if not then all colleges would remain as sixth forms.
Governors noted the Report
12/101 Recommendation from Governors’ Working Party on Future Direction
of KGV College
Following the recommendation made at the last Full Board meeting that a long term proactive
strategy was needed in terms of future planning for student numbers to give long term
stability and define the character of the College, a working party of Governors had met to
discuss how this could be achieved. The discussions had been far reaching and wide ranging.
The decline in student numbers over the years had led to changes in the composition of the
student body with more students admitted below the entry requirement or taking resits. In
addition changes to the funding methodology would see the College need to make further
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savings in the region of £300,000 over the next 3 years The working party had therefore
concluded that in order to achieve long term stability the overall College size would need to
reduce from the current total numbers of 1419 to 1200 for September 2013. A reduction in the
student body of 1200 would have an impact on the total funding available to the College with
the need for a re-aligning of resources to match this reduction and this was estimated to be in
the region of £1.2m. In order to address this decrease in both numbers and funding a number
of strategies had been identified. These were set out in the Report for Governors’ information,
Governors asked what the position would be if a situation arose where the College had more
suitably qualified students wishing to attend than it was funded for and whether marketing
polices were sufficient. The Chairman advised that whilst the proposals in the report had
significant implications, the purpose was to achieve long term stability and these could be
revisited over time should there be indications that the College was seeing any significant
increase in numbers. The decline in numbers was as a result of factors other than marketing
with results, respect and character of the College often having a greater impact than direct
marketing. The College would also continue to build on the good relations with Southport
College and aim to work together in the future in the best interests of both the colleges and the
community.
The Board approved the proposals and strategies as set out in the Report. The Board agreed
that Senior Management should begin the consultation process with staff in January. It was
acknowledged however that the detail in the recommendations in the Report could well change
following consultation with staff. The fundamental agreement relating to the reduction in
student numbers as a strategy for taking the College forward would not change and SLT would
be charged with implementing this in whatever way worked best for the College and its
students.
The Clerk reminded all Governors that the contents of the Report and the decision taken by
Governors were confidential until the consultation process commenced in January.
12/102 Financial Statements Auditors Management Letter/Final Accounts 2011/12
Will Melia presented the Financial Statements and Audit Findings Report from Baker Tilly to
the Board which had been discussed in detail by both Audit and F&GP Committee. A
summary of key issues had also accompanied the report for Governors’ information. The
Board was pleased to note that there were no unresolved disagreements with Management
regarding items that could be material to the accounts and subject to carrying out a post
balance sheet events review, Baker Tilly would be issuing an unqualified audit report for the
year ended 31 July 2012.
Moving on to the financial performance and position, the Board noted from the summary
report that the College had achieved an operating deficit of £30k compared with a deficit of
£793k the previous year. Excluding exceptional restructuring costs however, the College had
achieved an underlying surplus of £276k compared with £51k last year. The restructuring
costs and capital expenditure contribution towards the BCIF funding had resulted in a negative
cash flow of £830k compared with a positive cash flow of £407k the previous year. Governors
noted the capital expenditure and rationalisation costs which if excluded would give a positive
cash flow of £632k. The support staff pension fund deficit had increased by £495k due to
changes in the actuarial valuation of the scheme and this adverse movement was in line with
other colleges. Looking at income and expenditure, Governors noted the significant drop in
funding body income of £450k over the previous year which had resulted in the need for
further rationalisation. The effect of this was reflected in the reduction in staffing costs. The
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Balance Sheet position continued to be strong and reflected the capital expenditure on the
Learning Centre and Refectory with reserves totalling £5,931k.
Looking at the Baker Tilly Audit findings report the Board noted that Baker Tilly had
identified some deficiencies in internal control and the actions agreed to address these.
The Chairman of F&GP Committee reported that the Committee had received a detailed report
on the accounts. Audit Committee had received a detailed presentation from Baker Tilly on
the Audit Report. Both Committees were recommending that the Accounts be approved for
signature by the Chairman of Governors and the Principal.
The Board agreed that the accounts be approved for signature by the Chairman and Principal.
The Chairman and Principal thanked Mr Melia and all the Finance staff for their hard work
during the year.
12/103 Financial Report – 4th Quarter Accounts
Will Melia reported that the 4th Quarter Accounts reflected the information in the Financial
Statements just approved and had been presented in detail to F&GP Committee at the last
meeting. Discounting the Rationalisation costs and the FRS 17 costs, the figures showed an
operating surplus of £428k for the year which was £151k better than budget. Governors had
received the period 11 accounts in October and there was very little change to report since
then with most variances having been discussed at previous meetings. Looking at the recent
works undertaken with BCIF funding, the Board noted the anticipated under spend of £42k.
The Board also noted the potential impact of both the under recruitment of student numbers
and the new funding formula.
The Board noted the 4th Quarter Accounts.
12/104 Annual Risk Management Report 2011/12
Will Melia presented the Annual Risk Management Report to the Board. The Audit
Committee had received update reports throughout the year and the annual report summarised
any specific issues and the key discussion points addressed by the Risk Management group.
The Report also summarised the work and findings of the Internal Audit Service and Financial
Statements and Regularity Auditors. Following consolidation of the new risk management
policy and risk register, Governors noted that there were now clearer links to the College’s
strategic and operational objectives and that work was ongoing to link College polices to the
risk register. Improvements in the risk management process had resulted in an improvement
in the audit opinion from Amber to Green. The Report summarised areas for internal audit
coverage in 2012/13 . Future issues continued to centre on funding reductions and under
recruitment and further strategies were being considered to address any anticipated budget
shortfall in future years.
The Board approved the Annual Risk Management Report.
12/105 Annual Internal Audit Report 2011/12
Will Melia presented the Annual Internal Audit Report to Governors which had been
presented in detail to the Audit Committee in November. The purpose of the Report was to
present the results of the work carried out by the Internal Audit Service during the year and to
give an opinion on the adequacy and effectiveness of the College’s risk management, control
and governance processes. Using a Red/Amber/Green rating system, the overall assessment
was Amber for Control and Green for Governance and for Risk Management. The Amber
opinion in respect of Control related to control issues identified with the learner number
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system and IT Disaster Recovery. RSM Tenon had however been satisfied with the responses
from Management to address these issues. The Report included a summary of the
conclusions and recommendations made arising from the Audit work carried out during the
year. Adequate progress had been made in implementing the agreed recommendations.
The Board approved the Annual Internal Audit Report for the Year ended 31 July 2012.
12/106 Results and Value Added
The Principal, presented the Value Added Report for 2011/12 to the Board which had been
considered in detail by Curriculum Committee at the last meeting. Results were still very good
and whilst there were a number of other positive attributes, these were outweighed by the
decline in ALPS at both AS and A2. It was clear that there was a need to improve quality and
the focus therefore would be to reverse the situation as soon as possible and a number of
strategies had been identified to address this. BTEC continued to maintain its high outcomes.
Rigorous application of the entry requirement criteria would be key next year and this would
be communicated via the marketing and schools liaison work.
The Board noted the Report on Value Added.
12/107 Senior Postholder Polices and Procedures
Mrs Janet Regan presented the revised polices and procedure for Senior Postholders to the
Board. The recent OFSTED inspection had resulted in a recommendation that all staffing
polices and procedures should be impact assessed. Mrs Regan reported that all staffing polices
and procedures had been updated, impact assessed and approved by the Senior Leadership
team. The polices and procedure for Senior Postholders had now been impact assessed and
Governor approval for the changes was required. The policies were in line with standard sixth
form college policies and no other changes to the policies other than the inclusion of the impact
assessment was being proposed.
The Board approved the Senior Postholders policies and procedures as presented.
12/108 Audit Committee Annual Report 2011/2012
The Clerk presented the Audit Committee Annual Report for 2011/2012. The Report had been
produced on the same lines as in previous years and summarised briefly information on
attendance and the items that had been discussed during the year and included the
Committee’s Terms of Reference. The Board noted in particular the summaries relating to the
work of the Internal Audit Service and Financial Statements and Regularity Auditor and the
College’s arrangements for Risk Management and Governance Processes. The Audit
Committee conclusion was that the Committee was confident that the Board could rely on the
service provided by both the Internal and External Auditors.
The Board approved the Audit Committee Annual Report for 2011/2012.
12/109 Internal Audit Performance Indicators 2011/12
The Committee Chairman presented the Internal Audit Performance Indicators for 2011/2012
which had been discussed in detail by the Audit Committee on 26 November.
The Board noted that RSM Tenon had provided a reliable and efficient service meeting all
the agreed performance indicators and that the Audit Committee and Management had been
very satisfied with the work carried out and appreciative of the recommendations made. The
performance criteria were still considered to be relevant and appropriate for 2012/13.
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The Board approved the Internal Audit Performance Indicators for 2011/2012 and agreed that
the targets be retained for 2012/13 without change.
12/110 College Redundancy Policy
Mrs Janet Regan presented the Report to the Board. The Report summarised the current
voluntary redundancy and compulsory redundancy polices which had been approved
previously by the Board. A two tier voluntary redundancy policy was now being proposed for
Governors’ consideration and approval. Phase one would remain as the policy currently stood
but for a fixed time period to be determined at the discretion of management. Once that time
period ended, a phase two package would be offered. This would be the same as the current
voluntary redundancy policy but with no enhancement payment and notice of redundancy
being given in line with contracts of employment. The provision for discretionary payments
would remain in line with the current voluntary redundancy policy. No changes to the
compulsory redundancy policy were proposed.
The Board approved the College Redundancy Policy as presented.
12/111 Terms of Reference – Search Committee
The Clerk took Governors through the changes which had been identified in bold and approval
for their adoption was sought from the Board.
The Board approved the revised Terms of Reference for the Search Committee.
12/112 Reports from Committees
Curriculum Committee 15/10/12
The Committee Chairman reported that the Committee had received a comprehensive report
on Admissions, and also the Value Added data received by the Board earlier.
Audit Committee 26/11/12
The Committee Chairman reported that nearly all items including the Final Accounts, the
Annual Risk Management Report, Internal Audit Annual Report, Performance Indicators and
Audit Committee Annual Report had already been discussed earlier by the Board as agenda
items. The Committee had also received a progress report on the implementation of Audit
recommendations.
F&GP Committee 3/12/12
The Committee Chairman reported that all items including the Final Accounts and 4th Quarter
Accounts had already been discussed earlier by the Board as agenda items.
12/113 Any Other Business
Mrs Sandra Unsworth, Vice Chairman gave a comprehensive report on her attendance at one
of the days of the AoC conference in November and the emerging sector issues which had
been topics for discussion.
The Principal reported that the College had been notified that there was further BCIF funding
for 2013. The bid submission process closed however on 31 January 2013 which gave a very
tight timescale for preparation of a proposal and costings and was also before the next Full
Board meeting. A brief paper was circulated to Governors outlining two possible options. The
first option was a bid for funding to refurbish the toilet facilities and upgrade the link and
reception areas. The second was a more ambitious option of a small new build to replace East
Block. It would be unlikely that the College would receive full funding for the second option
and would therefore have to consider taking out a loan. Governors noted that the loan in
respect of the Millenium building was now fully repaid. Initial supportive discussions with
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the Banks had taken place. Detailed costs were not available at this stage but discussions
would begin with AA Projects once Governors took a decision on the nature of the bid to be
submitted. A very early view was that a new build would cost in the region of £3 – 3.5m.
Maximum BCIF funding would be £1.5m leaving a balance of around £2m to be funded by
bank loan. It was envisaged that the borrowing would be over 18 years with annual
repayments estimated at £141k and interest estimated at £55k based on a rate of LIBOR +
2.25% which would be reviewed every 5 years and was therefore subject to fluctuation over
the loan term.
Governors asked if a new build was warranted given the anticipated reduction in student
numbers. The Principal reported that the building would replace existing sub standard
accommodation which was important given the competition from elsewhere. Governors
asked if the College would be able to revert to option 1 at a later stage should the bid for a new
build be turned down. The Principal reported that AA Projects did not know at this stage but
this may be clearer as time progressed. Toilet refurbishment work could take place gradually
through the planned maintenance programme. Should Governors agree to proceed in favour of
option 2, the College would need to submit a planning application before the end of January
which would cost £170k. This would be without any guarantee of the bid being successful.
Costs with AA Project would also be incurred.
After discussion the Board agreed that a new build was the preferred option and authorised the
progression of discussions with AA Projects and the submission of a planning application.
The Board also agreed Delegated powers for submissions of the final bid for funding to the
Chairman, Vice Chairman and Chairman of F&GP and Chairman of Audit. The Chairman
thanked the Board for delegating these powers and undertook to call a special meeting of the
Board if necessary if any issues arose which had not been discussed this evening or if the costs
once established were in excess of those discussed.
The Chairman took the opportunity to thank all Governors for their valued contribution
throughout the year and to wish them a Merry Christmas and a Happy New Year.
There was no other business.
12/114 Review of Meeting
The Chairman asked if Governors felt they had received enough information to enable them to
reach a decision or been given enough time or opportunity to comment on proposals.
The arrangements for and the conduct of the meeting were considered to have been
satisfactory.
12/115 Date of Next Meeting
11 February 2013.
There being no further business the meeting closed at 7.00pm.
SIGNED BY THE CHAIR AS A TRUE AND ACCURATE RECORD
……………………………………………..
DATE ………………………
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