Draft – subject to approval by the Chair of Council at the 5 April 2012 meeting of Council
UNIVERSITY OF EXETER
CNL/12/20
COUNCIL
A meeting of the Council was held on Thursday 23 February 2012 at 2.00pm in the Council Chamber,
Northcote House.
PRESENT:
Pro-Chancellor, Mr K R Seal (Chair)
Mr C J Allwood
Senior Deputy Vice-Chancellor, Professor N Armstrong
Professor S A Banducci
Dr S Buck
Mr N Bull
Mr M Choules
Mr N Davis
Professor K E Evans
Ms J Hargadon
Mr R M P Hughes
Mr M Jordan
Deputy Vice-Chancellor, Professor J M Kay
Mr P Lacey
Sir Robin Nicholson
Ms B Rigg
Professor S J Rippon
Vice-Chancellor and Chief Executive, Professor Sir Steve Smith
Lady Studholme
IN ATTENDANCE:
Registrar and Deputy Chief Executive, Mr D J Allen
Director of Finance, Mr A Connolly
Director of Human Resources, Mr S J C Cooper
Chief Executive of the Students’ Guild, Mr J R A Hutchinson
Executive Officer, Mrs E M James
Director of Estate Development, Mr H McCann (in attendance for Minute 12.10)
Deputy Vice-Chancellor, Professor M Overton
Director of Campus Services, Mr G Pringle
Deputy Registrar and Director of Academic Services, Ms M I Shoebridge
Deputy Vice-Chancellor, Professor N J Talbot
Dean of PCMD, Professor S Thornton (in attendance for Minute 12.04)
Ms S Wilcox
APOLOGIES:
Dame Suzi Leather
12.01
Declarations of Interest
Members NOTED the register of members’ interests in relation to the business of the agenda
including standing declarations of interest.
12.02
Minutes
The minutes of the meeting held on 15 December 2011 were CONFIRMED (CNL/11/130) as a
correct record.
The Chair formally welcomed Andrew Connolly, Director of Finance from 1st February 2012 to his
first Council meeting.
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12.03
Matters Arising from the Minutes
Council CONSIDERED matters as follows (CNL/12/1):
(a) MINUTE 11.108(a)
CONFIDENCE)
THOMAS
HALL
–
FEASIBILITY
PLANS
(COMMERCIAL
IN
(b) MINUTE 11.108(C) SCIENCE PARK (CONFIDENTIAL AND LEGALLY PRIVILEGED)
(c) MINUTE 11.108(f) UCU AND PAY NEGOTATIONS (COMMERCIAL IN CONFIDENCE)
(d) GEOFFREY POPE BUILDING (COMMERCIAL IN CONFIDENCE
PRIVILEGED)
AND LEGALLY
(e) FORUM PROGRESS
Council RECEIVED an oral update from the Registrar and Deputy Chief Executive.
The Registrar and DCE REPORTED that we have had a lot of positive dialogue with Sir
Robert McAlpine (SRM) and as a result they have bypassed their regional structure for a
senior national project manager to be assigned to the Forum project to ensure that the official
opening date will be met. One or two of the sub contractors are falling by the wayside due to
the external financial climate. SRM have strong contingencies in place to support the risks
associated with sub-contractors. Council AGREED that once complete, it will be an absolutely
stunning and essential investment in the heart of the campus.
12.04
University of Exeter Medical School (LEGALLY PRIVILEGED AND COMMERCIAL IN
CONFIDENCE)
Professor Steve Thornton in attendance
12.05
Vice-Chancellor’s Report
(a)
Council RECEIVED a report from the Vice-Chancellor (CNL/12/3), which covered the
following topics:
(i)
Announcements – David Allen, Registrar and Deputy Chief Executive had been
awarded an OBE in the New Years Honours List.
(ii)
National Admissions – figures released from UCAS showed that the University of
Exeter remained a first-choice destination for the best students. Applications to study
in 2012/13, the first year since the introduction of £9k tuition fees, are almost at the
same level as last year, with an average of more than six students applying for each
place.
(iii) HEFCE Grant Letter – HEFCE announed on 1 February its funding decisions for higher
education in England following the annual grant letter from BIS. The announcement
covered HEFCE funding for the academic year 2012-13.
(iv) Exeter Spending Review and LEAN – the University has launched the Exeter Spending
Review process. Professor Neil Armstrong will be leading the review of planning and
budgeting, with outcomes feeding into the planning for 2013/14.
(v) Research & Knowledge Transfer – Research Monitoring meetings are currently
underway. The University has already reached 60% of its target for research
applications this year, at a value of £144m, compared with £125m worth of applications
this time last year.
(vi) Biotechnology and Biological Sciences Research Council Doctoral Training Partnership
Award – the BBSRC has awarded £4.2m to a new partnership to establish the South
West as a centre for international excellence in training for bioscience and food security
research. The South West Doctoral training Partnership unites the Universities of
Bristol, Bath, Exeter and Rothamsted Research.
(vii) Green Grant – Exeter is one of only four universities to be awarded £1 million grant
funding by HEFCE’s Revolving Green Fund, to be used to improve the carbon
performance of Cornwall House through building fabric, lighting and renewable energy.
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(viii) London Film School Agreement – an agreement was signed on 9 January by the
Registrar and Deputy Chief Executive and the Chairman of the London Film School,
Mike Leigh. The alliance will enable the institutions to launch the new Exeter-London
Film School Doctoral Programme.
(ix) Library Refurbishment Complete – all three original library floors in the Main Library
have now been fully completed, with Level 0 now re-opened.
(b)
In addition to the written report, the Vice-Chancellor drew attention to the following:
(i)
Sadly a student of ours, Zara Malone, died on Tuesday 7th February. Professor Kay
attended the funeral yesterday on behalf of the institution. The University community
was deeply saddened by Zara’s death. The Vice-Chancellor has written to Zara’s
parents with heartfelt condolences. Council added its condolences.
(ii)
The Vice-Chancellor is to hold 19 meetings in Colleges over the next 5 weeks trying to
take the pulse of the institution. Having been away for two years with UUK, the ViceChancellor wanted to hear what is going on and to take lots of questions from
colleagues.
(iii) The Vice-Chancellor is monitoring personally the situation of stress and wellbeing in the
organisation. We have noticed an increase in staff reporting absences for stress,
anxiety and depression. We are interested in what is going on and why we are getting
this feedback. The Vice-Chancellor met with our excellent Occupational Health
advisors and will meet them again in the Summer to discuss issues. Occupational
Health’s preferred way forward is to train our managers to deal with workload issues
and help staff to manage change. It is about our managers being able to recognise
stress and respond appropriately; we are running a two day course to assist them to
develop essential skills. We are sure that every organisation has this issue at the
moment due to the uncertain climate, but we want to do everything we can to support
colleagues.
(iv) Paradoxically we feel that we are in a good position at Exeter. Quite an important point
is arising for us around the potential for growth and our ability to respond to the
increasing demand from students. We have the support of the City and County Council
who are keen for us to grow. Of the public sector cuts, only 6% have been implemented
so far. 12% of benefits cuts have taken effect so far. 5000 jobs in Exeter are at risk
according to the City’s estimate and growth at the University could replace the loss of
GVA for the City. Deans of the Colleges are supporting our desire to grow and can see
the opportunity in growing AAB in different disciplines. This does raise a question about
the utilisation of St Luke’s; we will undertake an options appraisal to ensure facilities
are utilised in the most effective way.
(v) The Registrar REPORTED on recent discussions with Further Education (FE) Colleges
in Devon, Somerset and Dorset. We have strong connections with Cornwall and Exeter
FE Colleges. Principals are keen to find out how they can work more closely with us.
Post 92 Universities are now competing with FE Colleges for student numbers.
Colleges are keen to have an association with a Top Ten University and they need
support with the management of their HE, curriculum design and applied research. We
have a corporate responsibility to reach out as a successful institution and support
others on a pro bono basis. Council DISCUSSED widening participation and the
development of Exeter’s corporate social responsibility.
(vi) The Vice-Chancellor UPDATED Council on national sector issues.
(vii) Michele Shoebridge UPDATED Council on our admissions position. The sector is 7%
down for applications, Exeter is only 0.4% down. Overall applications are being
propped up slightly by international student numbers. Deferrals are also low and are
not available to add to numbers this year. We have increased our targets this year and
the lack of deferrals means we are looking at finding 10% more students this year. Our
predicted grades are still strong. We are releasing offers already to strong A students.
We always make up offers in confirmation, this year we will be in clearing particularly
for Cornwall. English and History are particularly down in Cornwall due to higher targets
in Streatham. Post offer open days in Cornwall are going really well, travel grants have
been offered and we have received excellent feedback. Generally it will be a
challenging time, we hope to grow in 2013, we are looking at the adjustment period
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where students can trade up to another institution if they perform better in their A level
grades. There are concerns around UCAS systems and we are mitigating against risks
associated with our own admissions process.
(viii) Michele Shoebridge UPDATED Council on the Quality Assurance Agency institutional
review which culminates in a visit between 30 April and 4 May 2012. We have
uploaded our self-evaluation document thanks to the Guild’s James Eales, Jonathan
Harris and David Gibson’s team who contributed a huge amount of work including
submitting 1000 pieces of evidence and 16 case studies. We will know the key result
headlines by 18th May and have a chance to review and submit alterations. The full
response will be received in July. David Gibson will be moving to Oxford University
after the review and Council recorded its formal thanks to David for all of his hard work.
12.06
Planning and Budget Review
Council RECEIVED an oral report from the Senior Deputy Vice-Chancellor.
Professor Armstrong UPDATED Council following a discussion at the Away Day in January 2012
identifying that we would undertake a planning and budget review. We have established
objectives for the review and plan to have proposals to bring to Council in July this year.
Council DISCUSSED master planning and St Luke’s involvement in the process. This will be one
of the outputs but not specifically looked at by the group.
The institution’s borrowing policy was raised by a member of Council. The Finance Strategy will
come to December’s Council meeting and this issue will be discussed.
12.07
Financial Forecast 2011/12
Council CONSIDERED the financial forecast 2011/12 (CNL/12/4).
The Chair of Council reported a slight increase in the surplus since the last meeting to £1.9m.
The forecast historic cost position of the University for 2011/12 is now a surplus of £1.9m,
compared to a re-forecast position at December 2011 of £1.0m and a budget of £1.2m. These are
set out in more detail in Appendix 1.
The Director of Finance REPORTED that the £5m surplus target set by Council has not yet been
met but we are confident that it will be by the end of the financial year.
It is worth noting that there are no references in this forecast to PCMD project related costs.
The forecast surplus represents 0.7% of University total income. The historic cost position and the
operating surplus are currently the same as there are no exceptional items included in the
forecast.
The new Director of Finance UPDATED Council with his observations of the institution’s financial
performance. The areas that have been raised with him by Heads of Colleges and Services
include the budgeting and business planning process, the process for setting institutional targets,
how managers buy into and own their financial targets, financial systems that have not kept pace
with growth and striking the right balance between capital investment and recurrent investment.
In the new competitive environment, we need to maintain and improve our top ten position and this
has to be an investment led one, financing that will be a challenge and will be reviewed in the
financial strategy by Council in December 2012.
To produce a surplus in the current climate where other institutions will be posting a deficit is a
credit to the University.
The Director of Finance asked Council to receive and approve the financial forecast. Council
APPROVED the financial forecast for 2011/12.
12.08
Loan Arrangements for Tremough Campus Services
Council CONSIDERED the loan arrangements for Tremough Campus Services (CNL/12/5).
The Chair of Council introduced the paper and the Director of Finance recommended for Council
to approve the paper and asked the Chair of Council and Registrar to sign the documentation.
Council APPROVED the paper.
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IT WAS UNANIMOUSLY RESOLVED THAT:
(a) The 2003 Amendment Letter be accepted and that the Registrar and Deputy Chief Executive
(David Allen) and the Deputy Director of Finance (Margaret Laithwaite) be authorised to make
the necessary arrangements with the Bank and to sign on behalf of the University the 2003
Amendment Letter which was produced to the meeting and its terms and conditions
approved.
(b) The 2006 Amendment Letter be accepted and that the Registrar and Deputy Chief Executive
(David Allen) and the Deputy Director of Finance (Margaret Laithwaite) be authorised to make
the necessary arrangements with the Bank and to sign on behalf of the University the 2006
Amendment Letter which was produced to the meeting and its terms and conditions
approved.
(c) The 2011 Amendment Letter be accepted which was produced to the meeting and its terms
and conditions approved.
(d) Any two Members and the Registrar and Secretary be and are hereby authorised to do all
such other things to execute or to cause the execution of all such other documents as they
may in their absolute and unfettered discretion think fit in connection with the Amendment
Letters.
(e) (Without prejudice to the authority of any other person to do so) the Bank or its agent is
hereby irrevocably authorised to date the Amendment Letters on behalf of the University at
any time after the Amendment Letters shall have been received by the Bank or its agent.
(f)
12.09
The foregoing resolutions do not in any way prejudice or affect the instructions to the Bank
contained in resolutions of the Council constituting the University’s bank mandate.
Refurbishment/New Build Sports Park, Phase 5
(reference minute 11.91)
Council CONSIDERED the Request for Authority in respect of the refurbishment/New Build Sports
Park, Phase 5 (CNL/12/7).
The Chair reminded Council that this project was approved by Council in October. Council
delegated the proposal for the project to the Infrastructure Strategy Group (ISG) who have worked
up this more detailed proposal. The Chair of Council introduced the paper, the recommendation
from ISG is for the paper to be APPROVED by Council.
The boathouse does not form part of the new investment but the project is underway. We have
scheduled work to start in May this year.
Sport in Cornwall was DISCUSSED by Council members, a separate sports strategy is being
developed for the Tremough campus and partners are exploring working with third parties to
implement improved sports facilities at the earliest opportunity. Council NOTED that the joint
venture makes securing funding more complicated.
Council APPROVED the detailed proposals.
12.10
Infrastructure Strategy – Tranche 3 (COMMERCIAL IN CONFIDENCE)
Hugh McCann in attendance
12.11
Strategic Delivery
(reference minute 11.118)
Council CONSIDERED:
(a) REFINED REPORT (CNL/12/8)
This paper provides an update to Council on the Strategic Delivery Plan 2012-2013 and
related reporting timeline, following paper CNL/11/126 submitted to the 15 th December 2011
meeting.
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The revised Delivery Plan incorporates minor revisions to the 15 th December version. These
reflect comments from Council and a longer period of reflection on the proposed Delivery
Plan, in particular for Dual Assurance. It has been approved by VCEG at its 13 February
meeting.
The Registrar and DCE UPDATED Council that the strategic delivery document is now in
good shape and it is clear where accountabilities lie. The functional responsibilities for Deputy
Vice-Chancellors (DVCs) and line of management via the Professional Services were
DISCUSSED.
Council members DISCUSSED the linkages between the Planning and Budget review with
the Strategic Delivery Plan. The review being under taken by Professor Armstrong is looking
at the processes involved with setting institutional, College and Professional Service financial
targets rather than institutional KPI planning.
It is intended that the Delivery Plan should be both updated and monitored in line with the
annual planning cycle, set in the context of KPI and Risk reporting.
(b) MANAGEMENT OF THE UNIVERSITY: LINES AND MATRICES (CNL/12/9)
Council AGREED that the paper presented by the Registrar and DCE responded to the
queries raised at the last meeting effectively and that the lines and matrices approach was
seen today as best practice.
It was AGREED that having a dotted line from Heads of Professional Services to DVCs with
regards to the DVCs functional responsibilities provides a unique way of offering high quality
support to senior management.
The Colleges carry a higher level of risk as a unit compared with Schools and there is an
opportunity for College Managers to discuss risks with the Registrar on a regular basis. The
structure is a flat one with Heads of Colleges and Services never more than one report away
from the Vice-Chancellor.
Council members were encouraged to see College Deans and Managers have a higher level
of accountability identified in the model and AGREED that dotted lines alongside formal line
management reporting lines between different roles and functions provided additional levels
of input and assurance for Council.
12.12
Performance and Risk Report
Council CONSIDERED a report on Institutional Performance and Risk (CNL/12/10).
This paper forms the first part of the bi-annual report to Council regarding Performance and Risk
and intends to provide Council with an update on both performance against the ten University Key
Performance Indicators (KPI’s) and the latest Corporate Risk Register.
The Chair asked Council to NOTE an error on the second page of paper CNL/12/10, where the
progression has not fallen from 96.5%, it has stayed the same.
There is a better allocation of risks for the College and Services which is a significant
improvement. Council agreed that the paper is in a good shape.
Council members DISCUSSED the benefits of managing the risk first and then sorting into
strategic subsets as a second phase.
One overarching risk is that if we fail to meet our surplus, we will fail to meet projects outlined in
the paper. Council members will discuss this further at a future Council meeting when the Finance
Strategy is presented formally.
Council NOTED that Patrick Kennedy is leaving the University at the end of March. The Chair
REPORTED that his contribution to the institution’s ability to drive the performance forward has
been outstanding.
12.13
Review of Academic Year
(reference minute 11.51)
Council CONSIDERED the summer programme in relation to the review of the Academic year
(CNL/12/11).
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Following approval received at Senate in July 2011 of the revised composition for the Academic
year, which would add an additional week in the autumn term and establish a 12 + 12 + 7 week
model from 2012/13, two Task and Finish Groups were established to take forward discussion of
the two key elements of the new structure.
The Chair introduced the item and gave Council an overview of the benefits of the summer
fortnight and described how the extra week in the autumn term would be structured. This was
reviewed at Dual Assurance for Education and represents an exciting possibility of a real
competitive advantage if it works well and is fully resourced.
Michele Shoebridge REPORTED that in a £9k fee environment we are sure that students and
parents will want to get the most out of the University year and maximise content, particularly in
the first year. Jonathan Barry has headed up the task and finish group for the extra week in
autumn. Grand challenges will be piloted this summer and will be interdisciplinary, supported by
research stars, PGR students and alumni.
Workload modelling is being assessed to allow us to ensure this programme can be resourced
effectively. The Vice Chancellor has offered some of his time to deliver the programme for
students. Council members were invited to become involved in the programme.
We will work closely with the Guild to deliver events and employability will run through the event.
Technology will be harnessed in a positive way for the delivery of the programme.
The key risk is that the delivery of the programme is a big challenge, a project manager will be
appointed and an academic will champion the initiative with Colleges.
Professor Kay reported that this is all about making the first year count; the QAA has made it clear
that the first year is a key theme of the institutional review.
We have to get some of our best staff involved. We have learned that deep academic consultation
is a valued part of the process. Our close working with the Guild is a strength of the project.
The President of the Guild REPORTED that students have provided enthusiastic support for the
proposal. We will be canvassing further groupings of students for opinion.
Members of Council DISCUSSED the importance of governance and consultation with the
academic body and highlighted that this proposal is now an example of best practice as it
responded in a positive way to Senate feedback.
Council members requested that the Grand Challenges have a more prominent place in the
presentation of the proposal. Council DISCUSSED the budget associated with the project and
agreed that it is essential for the success of the programme for it not to be under resourced.
The proposals for the Summer Programme and the new structure for the autumn term will be
submitted to Senate in March.
12.14
Partnership Proposal for University and Students’ Guild Trading Services (COMMERCIAL
IN CONFIDENCE)
12.15
Council Away Day
Council RECEIVED a report from the Council Away Day held on 26 January 2012 (CNL/12/13).
The Chair REPORTED that feedback received from Council members has identified that the
increased chance for non-executive member involvement and the lack of presentations has been a
positive move and that risk is an essential part of Council’s responsibility and needs to be
reviewed regularly at the away days.
New ideas were formed and discussed as a result of the day. REF input and growth were both
raised alongside Council involvement in the evaluation of impact. Widening Participation student
identification and nurturing was also an important discussion and a key conclusion of limiting
international student numbers to 4000 was an important basis for going forward. Space and
working practices discussions can be taken forward following consultation at the away day.
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12.16
Infrastructure Strategy Group (COMMERCIAL IN CONFIDENCE)
12.17
Risk Management
Council RECEIVED an update on Risk Management (CNL/12/16).
12.18
Employability Initiative
Council RECEIVED the Employability Initiative (CNL/12/17).
12.19
Council Nominations Committee (STRICTLY CONFIDENTIAL)
Council CONSIDERED the report from the Council Nominations Committee held on 14 November
2011 (CNL/12/18).
Council APPROVED:
(a) Terms of Reference and membership for the year 2011/12.
(b) Membership of Council 2012/13 and 2013/14.
Council NOTED the following report:
(c) Chair of Council.
12.20
Affixing the Seal
Council AUTHORISED the fixing of the University seal to the documents listed in CNL/12/19.
12.21
Chair’s closing remarks
The Chair recorded his thanks to Professor Ken Evans and his team for the very good
presentation and tours in EMPS earlier today. The next Council meeting is in Cornwall and will
focus on ESI with more time to discuss the growth strategy, IP Policy, Research Monitoring and
REF preparation and the student loans company issue.
The beginning of the calendar year started with a celebration for the Registrar and Deputy Chief
Executive’s well deserved OBE.
There have been a number of issues this year that we have tackled head on including the PCMD
Heads of Terms negotiations and signing. There is encouraging news for admissions despite the
uncertain market.
The Chair was delighted that the Geoffrey Pope building project has been resolved. We all have
the exciting prospect of seeing the Forum complete soon. The Chair recorded his thanks to VCEG
and everyone who has contributed this year.
EMJ/JAL
13 March 2012
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