UNIVERSITY OF ESSEX
COUNCIL
16 February 2009
(2.15 pm - 5pm)
MINUTES
Chair
Mr Gore
Present
Mr Barnard, Mr Boyle, Professor Busfield, Mrs Edey, Ms Garbutt,
Professor Hulme, Mr Kavakeb, Mr Lewis, Dr Mackenzie, Professor
Massara, Professor Nicol, Professor Riordan, Dr Schulze, Ms Stamp, Dr
Steel, Ms Stevens, Dr Wood
Apologies
Ms Colston, Mr Cornes, Mr Gray, Mrs Regal, Professor Schurer
Secretary
Registrar and Secretary
In attendance
Academic Registrar, Director of Estate Management, Director of
Finance, Professor Downton, Ms Grinter, Professor South, Professor
Temple
By invitation
Mr Barnwell (item 10 only: University of Essex Knowledge Gateway)
INFORMAL BUSINESS
Presentation by UCS Pro-Vice-Chancellor and Chief Executive Professor Bob Anderson
UNRESERVED BUSINESS
CORRESPONDENCE AND ANNOUNCEMENTS
Noted
Welcome by the Chair and introductions.
1/09
STARRING OF AGENDA ITEMS
Noted
The following agendum was starred for discussion, in
addition to those on the agenda:
2/09
Item 11(a) Finance and Strategy Committee (2 February
2009 meeting)
DECLARATION OF INTERESTS
Noted
The Chair declared an interest in respect of agenda item
10: University of Essex Knowledge Gateway. Mr Gore
knew Mr Barnwell, but had no current working
relationship with him or his company.
3/09
MINUTES (C/09/01)
Approved
The minutes of the meeting held on 24 November 2008
were approved.
4/09
1
VICE-CHANCELLOR’S REPORT (C/09/02)
Noted
In addition to his report the Vice-Chancellor provided up
to date admissions information to members of Council.
5/09
That there had been a significant increase in
undergraduate and postgraduate applications in
comparison to the previous year.
6/09
The increase in applications could be due to a number of
factors, including the University benefiting from a decline
in the pound, the current economic climate and the proactive recruitment strategies taken by the University to
increase Home/EU applications for courses in Social
Sciences, Mathematics, Computer Science and Electronic
Engineering.
7/09
The University of Essex was in a stronger position than
other institutions in relation to international recruitment.
8/09
This was still an early stage in the admissions cycle and it
was of the utmost importance that applications were
converted to firm acceptances.
9/09
Expected increase in student numbers at Colchester had to
be carefully managed with respect to teaching space and
student residences. The University Space Management
Group would be looking at various ways of making better
use of existing space. Consideration would be given to
extending the teaching day. Additional student residences
were planned to be in place on the Meadows by 2011.
There would inevitably be some short term difficulties
accommodating additional student numbers.
10/09
RESEARCH ASSESSMENT EXERCISE 2008:OUTCOME (C/09/03)
Noted
The results published on Thursday 18 December 2008 by
The Guardian, The Independent and The Times
newspapers had ranked the University of Essex ninth in
the league of universities in relation to the quality of
research, compared to tenth place in 2001. The University
had met its strategic objective of remaining a top ten
research university in RAE 2008.
11/09
Normalisation of the grade point averages for each Unit of
Assessment (UoA) by the University of Surrey had placed
the University of Essex in sixth position nationally.
12/09
The number of UoAs in the top 5 and top 10 nationally
were an improvement on the last Research Assessment
Exercise in 2001.
13/09
Council acknowledged the tremendous effort that
academic departments had contributed to the success of
the University in the 2008 Research Assessment Exercise.
14/09
2
Following release of more detailed information in January
2009 the next step would be to embark with academic
departments on a period of reflection and what could be
learnt for the future. This exercise would be co-ordinated
by the Research Strategy Committee.
15/09
Further details for each UoA would be made available to
the higher education sector in June 2009, for scrutiny and
analysis and to further support the development of new
research strategies, where appropriate.
16/09
The amount of the University’s quality-related research
(QR) funding following RAE 2008 was not yet known,
but the Higher Education Funding Council for England
(HEFCE) would be publishing institutional allocations in
March 2009. It was expected that HEFCE would
moderate any potential reduction in income to institutions,
to avoid any dramatic shortfalls in funding.
17/09
The Research Excellence Framework, which was a
metrics based method, was currently being piloted in a
number of higher education institutions. However, it was
thought that HEFCE might retain a one track approach,
which involved peer review, for assessing the quality of
research in future.
18/09
BUDGET UPDATE 2008/09 AND LATER YEAR FINANCIAL FORECASTS TO
2011/12 (C/09/04)
Noted
The current budget update and later year financial
forecasts to 2011/12 took three factors into account:
income from student recruitment, the capital investment
plan and staff costs.
19/09
There were a number of factors not included such as the
teaching grant (£320k higher than expected), student
accommodation (£300k higher than expected) and the
additional costs arising from the voluntary severance
scheme (not as yet finalised). It was envisaged that over
£1m of recurrent cost savings would result from the initial
outlay on the voluntary severance scheme.
20/09
The University had recovered £1.2m worth of Value
Added Tax (VAT) from the Gateway building and this
would contribute to the cost of the scheme.
21/09
The HEFCE grant letter was expected in March, but the
allocation of funds to the sector for teaching and research
was up 3.2% and 4.5% respectively. The full financial
impact for the University would not be known until the
grant letter was received.
22/09
Insearch provided an additional £1m of student tuition fee
income to the University, but the impact on the bottom
23/09
3
line was modest.
The University was currently operating within all of its
bank covenants and this position would remain unchanged
when the large capital loan was taken into account.
24/09
The Retail Price Index was presently below 1% and
expected to be negative within the next one or two
months. The Universities and Colleges Union (UCU) had
submitted a pay claim for 8% and was seeking to hold a
ballot of its members. The Universities Superannuation
Scheme (USS) had reported that there would have to be a
rise of 2% in employer contributions, otherwise the
increase in pension costs would have to be met by an
increase in employee contributions or a future reduction in
employee benefits.
25/09
The updated financial forecasts included a 2% pay
increase for University employees from August 2009 and
a 2% increase in USS employer contributions.
26/09
CAPITAL INVESTMENT PLAN:
Capital Investment Plan: Progress Report (C/09/05)
Noted
The Registrar and Secretary reported that no new schemes
were being presented at this stage. The total cost of the
Capital Investment Plan was £250m of which priority
projects amounted to £88m. Of these projects those
amounting to £5.4m were complete, £39m were currently
in progress and £3.65m were at the procurement stage.
27/09
The Colchester Sports Centre Fitness Suite project had
been brought forward to 2009/10, due to the receipt of
£200k in additional funding and in response to the
Government’s request to bring forward capital expenditure
in the current economic downturn.
28/09
Particular mention was made of the completion of the
third and fifth floors of the Gateway Building and phase 1
of the Clifftown Studios, for which the Director of Estate
Management and his staff were congratulated for
delivering the project on time and on budget. Phase 2 of
the Clifftown Studios project was currently underway, to
be completed in Autumn 2009.
29/09
Refurbishment of Square two was at the design stage.
Tenders from architects had been received by Friday 13
February.
30/09
Capital Financing: Progress Report (C/09/06)
Noted
That none of the loan had been drawn down and the
University had executed the first stage of the hedging
31/09
4
policy.
Hedging had only taken place where there had been firm
expenditure commitments, for example, the London Road
project. This would give the University the option of
procuring additional hedging as and when new capital
projects were approved.
32/09
UNIVERSITY OF ESSEX KNOWLEDGE GATEWAY (C/09/07)
CONFIDENTIAL
REPORTS FROM COMMITTEES:
(a)(i) Finance and Strategy Committees (1 December 2008) (C/09/08)
Resolved
that a change in accounting policy, namely that finance
charges associated with the capital programme be
capitalised and treated as a component of the cost of the
fixed asset, effective from the 2008-09 financial year.
43/09
(a)(ii) Finance and Strategy Committees (2 February 2009) (C/09/09)
Carisbrooke-Essex Partnership
Noted
Resolved
That negotiations with Carisbrooke were ongoing and
there were still some details to be resolved. The
International Centre would be taken out of the
Carisbrooke-Essex Partnership.
44/09
The Chair should sign the revised supplementary
agreement and would consult with one or more members
of the Finance and Strategy Committee, as appropriate.
45/09
that delegated authority be given to the Chair to sign the
revised supplemental agreement, subject to satisfactory
resolution of the following issues listed below.
46/09
1. The International Centre, as the flagship building for
the Knowledge Gateway, be taken out of the
Partnership arrangements in terms of it not being
included in the profit share arrangement;
47/09
2. The £600k outstanding from the University loan to the
Partnership be treated as a Partnership cost and for the
University to seek its recovery before any profits were
distributed;
3. To continue discussion with Carisbrooke to agree
sensible working arrangements on the basis of the
matters raised above.
48/09
49/09
(b) Nominations Committee (C/09/10)
Resolved
that all the recommendations contained in the report from
50/09
5
the Nominations Committee be approved.
REPORT AND RECOMMENDATIONS FROM SENATE (C/09/11)
Resolved
that all the recommendations contained in the report from
Senate be approved.
51/09
KEY PERFORMANCE INDICATORS:
Research (C/09/12)
Noted
That the ranking for the research quality indicator be
revised as the University had already retained its top 10
position. Revision would be dependent on the timing and
outcomes arising from discussions on the Research
Excellence Framework.
52/09
Proportion of income from research, including QR, would
be reviewed, as the 30% target could not realistically be
achieved under existing arrangements.
53/09
The target of 85% research active staff remained in place.
54/09
BANK MANDATE (C/09/13)
Resolved
that the list of account signatories for University of Essex
accounts and subsidiary company accounts be approved.
55/09
CHAIR’S ACTION (C/09/14)
Noted
That Chair’s Action had been taken in February 2009 to
approve the University as a member of the Institute for the
Digital Economic Age (IDEA) Limited.
56/09
ANY OTHER BUSINESS
Noted
That Council would hold a future meeting at Southend in
2010.
57/09
DATE OF NEXT MEETING
Noted
Monday 11 May 2009
RESERVED BUSINESS
There was no reserved business.
Dr Tony Rich
Registrar and Secretary
February 2009
6