Item 3
Council 31.01.11
COUNCIL
MEETING HELD ON 16TH NOVEMBER 2010
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Key:  In Attendance A Apologies P Part Attendance
In Attendance
Mr F Toop
Prof J Weinberg
Prof D Arcoumanis
Ms H Royle
Mr R Farmer
Miss A Kite
Prof S Nash
Meeting 6
11.07.10
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A
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N/M
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Meeting 5
16.05.11
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P
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Meeting 4
28.03.11
Mr R Bright
Prof Sir Drummond Bone
Ms C Freeman
Mr A Halper
Mr K Murphy
Ms C Regan
Mr M Robson
Professor H Schreuder
Mr D Turner
Prof D Bolton
Mr N Raj Cumlajee
Mr A Patel
Mr R Gillingwater
Mr Philip Harding
Prof C Slade
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Meeting 3
31.01.11
Staff &
Student
Members
Independent
Members
ExOfficio
Mr A Bagri (Chair)
Mr R Woodward (Deputy Chair)
Prof P Curran (VC)
Meeting 2
16.11.10
Members
Meeting 1
01.10.10
APPROVED MINUTES
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N/M Not a Member
* Conflict of Interest
Reason and Meeting Section
University Secretary
DVC
DVC (Research & International)
Chief Operating Officer
HR Director
Council Secretariat
Dean of City Law School, Observer
MINUTES SECTION A – OPEN FOR PUBLICATION
Part One – Preliminary Items
1.
Items for Starring
Council agreed the starred items for discussion.
2.
Minutes
The minutes of the meeting held on 1st October 2010 were approved, subject to a
correction in Minute 6 that the elections for the Students’ Union Officers were held
on the 29th October 2010. It was noted that the italicised element in Minute 11
appeared for the first time in this Agenda. (Secretary’s Note: Attention is drawn to
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Minute 9B Closed Section which reflects the correct position on the London Living
Wage rather than the statement made at the meeting).
3.
Matters Arising
The list of outstanding actions to be taken from previous Council meetings will be
reviewed by the Chair and University Secretary before the next meeting of Council
to eliminate any long-standing items that are no longer relevant. [Action:
University Secretary]
4.
Conflicts of Interest
None.
5.
Items Specially Brought Forward by the Chair
The Chair welcomed the new President of the Students’ Union, Mr Amish Patel, to
the membership of Council and the Dean of City Law School, Professor Susan
Nash, who was observing the meeting. Other Deans who are not Members of
Council will also be invited to attend future Council meetings.
The visit to the School of Informatics prior to the meeting had been extremely
valuable and the Chair encouraged all Members to attend these visits wherever
possible in future.
Part Two – Major Items for Discussion or Decision
6.
6.1
Vice-Chancellor’s Report
Report on Actions Taken and Issues for Council
The Vice-Chancellor highlighted the following key items in his report:
(i)
Three external events had a major potential impact on the University: the
publication of the Browne Review; the Comprehensive Spending Review;
and the Government’s announcement on fee levels.
(ii)
Three recent internal activities: VC’s visits and discussions with all Schools
and professional services; pushing ahead with quality initiatives in
education, research and human resources; and taking a fresh look at
graduation ceremonies and undergraduate open days.
(iii)
The number of staff affected by the Treasury’s pension tax changes would
be up to 20 as stated at RemCo.
(iv)
Student module feedback as input to the appraisal promotion and
progression system for academic staff is to be introduced across the whole
University together with the introduction of a standard academic cv.
Council requested a forward looking diary of events and the Vice-Chancellor
reported that this was to be developed as part of an internal communication
function and would be circulated to Members once complete. (Secretary’s Note: in
the key appointments section of Council paper 6.1 Professor Cottrell’s should be
“Head of Creative Practice & Enterprise”).
Kieran Murphy joined the meeting at this point.
6.2
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Browne and Comprehensive Spending Reviews
The management team had created a model to show the financial impact of
changes in funding arising following the Browne and Comprehensive Spending
Reviews and the effect of the responses that City might make. The Model is
interactive allowing the effects of new announcements and plans to be quickly
evaluated (Members had received a printed description of the model, a glossary of
terms and some alternative scenarios that illustrated the sensitivity of the model to
different assumptions). Inputting current assumptions in the model allowed the
calculation of an average fee required to achieve break even. The model showed
that the University should expect to see significant losses in 2012/13 and 2013/14
before a return to break even in 2014/15.
Council noted that significant growth in UK undergraduate students was unlikely
and that a reduction in EU (due to price increases) and international undergraduate
students (due to visa restrictions) should be anticipated. It was possible that there
would be some postgraduate growth and that demand for non-standard tailored
courses, including part-time courses, might increase.
UET was currently undertaking a pricing elasticity study and anticipated variable
fees being introduced between courses within institutions. Differential pricing
within courses could be possible through the application of bursaries.
Council would consider at its January 2011 meeting (i) the position for 2011/12
following receipt of grant information from HEFCE and (ii) a more detailed
management view on 2012-14 - the two years predicted to be exceptionally
difficult. The meeting would also consider feedback on the outcome of the ZeroBased Review (currently not built into the forecasts) which would be very important
in stabilising the financial position especially if growth cannot be achieved [Action:
CFO]
7.
7.1
Vision and Associated Strategy Development
Timetable
Council approved the timetable for developing the City Vision, Strategy and
Strategic Plan resulting in implementation of the Plan from June 2012, subject to
the addition of a stage for the approval of the Strategy by Council prior to the
commencement of the development of the Strategic Plan. Council welcomed the
proposal for a wider discussion on the Strategy with the Executive Committee at an
Away Day on 11th July 2011 prior to the Council meeting that evening and a halfday discussion with ExCo in early October 2011 on the development of City’s
Strategic Plan. [Action: VC]
Rob Woodward left the meeting during the following item.
7.2
City University Today
The Vice-Chancellor made a presentation and Council considered City’s current
position from evidence presented in graphical format in the newly produced
Comparators Workbook. The graphs showed various aspects of performance for a
group of 30 comparator institutions.
The next stage of vision and strategy development, (including benchmarking and
analysis of why students come to City), will require decisions to be taken on City’s
distinctive positioning. City’s successful differentiation on the basis of its focus on
“business and the professions” and its “London location” must now include
“academic excellence”.
Council welcomed the analysis and the narrative provided by the presentation
which the Vice-Chancellor would circulate to Members after the meeting. [Action:
VC]
This Item is continued in Section B of the Minutes, Closed Business.
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8.
University of London
Council noted the decision taken by City University, London and the University of
London to defer City’s application to join the University of London at the present
time.
9.
9.1
Audit and Risk Committee
ARC Annual Report
Council reviewed the Annual Report of Audit and Risk Committee and noted that
the Committee had agreed to give Council assurance that the University’s
arrangements for risk management, control, governance, value for money and
management and quality assurance of data submitted to HESA and HEFCE are
adequate and effective. The Chair highlighted the significant work undertaken by
Internal Audit and ARC on the School of Community and Health Sciences which
had seen significant improvements. He also highlighted the significantly increase
in confidence in data management following work undertaken during the year.
The Risk Review would be presented for more detailed consideration by Council
later in the year. [Action: VC]
9.2
Financial Statements 2009/10
Council approved the Financial Statements for the year ended 31 July 2010. The
Statements showed a breakeven position after posting the INTO loss and
restructuring costs. This was better than forecast, with every School and the central
service over-achieving on their individual forecasts. The Statements included
increased disclosure concerning related party transactions with INTO and the
Students’ Union in Note 29 following the requirements of the new Charities Act.
The Statements also included a statement on public benefit as required by the new
Charities Act. The London Pension Fund Authority actuarial gain of £3m reflecting
the change of inflation index from RPI to CPI was shown in the Statement of Total
Recognised Gains and Losses.
9.3
Letter of Representation
Council approved the External Auditor’s letter of representation for signature by
the Chair, subject to a correction of referencing within the letter. [Action: ProChancellor and CFO]
9.4
External Auditor Tender
Council noted that Audit and Risk Committee had agreed to go out to tender for the
appointment of the External Auditors in line with good practice, KPMG’s contract
for 5 years having ended. The notice had been issued and invitations to tender
would be issued before Christmas and interviews held in early February in time for
recommendation to ARC on 28th February 2011 and approval by Council on 28
March 2011. [Action: CFO]
10.
10.1
Finance 2010/11
Flash Forecast and Risk Range Update
Council noted that the current best estimate for 2010/11 forecast was a deficit of
£2.8m and that pressure would be maintained to achieve the budgeted outcome of
a £2m deficit. A more detailed review of the financial position would be undertaken
to prepare the mid-year forecast and this would be reported to Council on 31st
January 2011.
Council noted that the predicted changes in student mix did not change the case
for the INTO joint venture. It noted that the UK Border Agency rule changes were
causing considerable disquiet.
10.2
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Financial Strategy Implementation
Council noted progress on the implementation of the Financial Strategy since the
last report received on 1st October 2010. The period since then had been primarily
concerned with the Zero Based Review of support functions and the report
summarised its status and the next steps. The recommendations of the ZBR had
been drafted and were going through consultation and would be reported to
Council for discussion on 31st January 2010.
11.
Lease of No.1 Myddelton Street
Council authorised the management team to complete the Agreement for the
Lease of No.1 Myddelton Street. David Turner had provided guidance on the
proposal and Council noted that the Heads of Terms presented were not expected
to change. The proposal presented an increase in costs and these had been taken
into account in the papers presented to the last Council and in the University’s
projections.
Part Three – Other Matters for Discussion or Decision
12.
12.1
HEFCE Submissions
Corporate Planning Statement
Council approved the Corporate Planning Statement for submission to HEFCE as
part of City University London’s statutory return for 2009/10.
12.2
5-Year Financial Projections
Council approved the forecasts for submission to HEFCE on the understanding
that there will be an opportunity to re-submit in April 2011.
It was noted that Council Members had received the HEFCE letter following
HEFCE’s recent visit. This recognised that the financial forecasts “were prudent
and based on a reasonable set of assumptions”.
13.
Ordinance on Delegated Authority
Council approved a new Ordinance Appendix to replace existing Ordinance
Appendices 1 and 7 for immediate implementation. The new Ordinance set out the
authority that Council wished to retain for itself in place of the previous attempt to
define all that is delegated to management. UET would be invited to consider any
changes it wished to propose for consideration at a future meeting of CGNC.
[Action: University Secretary]
14.
Honorary Degrees
The new category of honorary award, City University Fellowships, would be
introduced in the New Year following process design agreed by the management
team. Council approved the recommendation from Corporate Governance and
Nominations Committee for three individuals to be offered the award of an
Honorary Degree.
This Item is continued in Section B of the Minutes, Closed Business.
15.
Educational Balance Sheet
Council noted the Educational Balance Sheet which reported on student
recruitment as at 27th October 2010 compared to 28th October 2009, provided
highlights from the National Student Survey, and provided data on the destination
of leavers from Higher Education in 2008/09. Council discussed the performance
in each area and agreed that an executive summary should be provided for future
Educational Balance Sheets. [Action: DVC(E)]
The following items were not starred for discussion and therefore not discussed and taken
as read, with the exception of Item 19.
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Part Four – Items for Information
16.
Minutes for Note
CGNC Minutes of 11th October 2010
Senate Minutes of 13th October 2010
ARC Minutes of 1st November 2010
RemCom Minutes of 8th November 2010
17.
INTO
A report on recruitment to INTO programmes. Council noted that it would return to
the performance of the INTO joint venture in due course.
18.
Non-Payroll Costs
Breakdown of non-payroll costs.
19.
Immediate Quality-Based Initiatives
Council noted the set of quality-based research initiatives which brought together
new initiatives at a total cost of £1.5m (2010/11), £2.4m (2011/12) and £3m
(2012/13) with the largest component being a programme of doctoral studentships
of 35 FTE normally but 50 FTE in 2011/12. These would be allocated on a case-bycase basis according to research excellence in areas of strength. The full cost for
2010/11 was included in the flash forecast. The cost for future years had not been
included in the financial projections yet. The management team would seek to
increase the number of externally funded and cross-School studentships.
Council noted that it would consider a development and fundraising strategy at a
future meeting. [Action: VC]
20.
Sale of Halls of Residence
Report prior to the exchange of contract on the sale of the Halls of Residence.
21.
Students’ Union Election Results
Report of Officers elected.
22.
Other Business
None.
23.
Date of Next Meeting
31st January 2011
Part Five – Short Meeting of Independent Members
24.
Short Meeting of Independent Members
There was a short meeting of the Independent Members. This meeting was not
minuted except to note that Members supported a number of suggestions brought
forward by the Vice-Chancellor to stimulate discussion between independent
members and the management team. Members, while supporting these initiatives,
were keen to ensure that adequate time was devoted at Council meetings to
strategy development.
Apurv Bagri
Pro-Chancellor and Chair of Council
November 2010
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