UNIVERSITY OF ESSEX
COUNCIL
24 November 2014
(2.00pm – 4.45pm)
APPROVED MINUTES
Chair
Mr David Boyle
Present
Professor Joan Busfield, Mr Nitin Dahad, Mrs Celia Edey, Professor Marco Francesconi,
Professor Anthony Forster (Vice-Chancellor), Mr Paul Gray, Dr Elizabeth Hall, Lady Sally
Irvine, Professor Joanna Jackson, Ms Judith Judd, Ms Chantel Le Carpentier, Dr Laura
Mansel-Thomas, Professor Sean Nixon, Professor Jules Pretty, Mr Geoffrey Probert,
Professor Christine Raines, Ms Paula Rothero, Mr Philip Tolhurst
Apologies
Mr Milan Makwana, Ms Maria Stanford, Dr Lisa Wade
Secretary
Mr Bryn Morris (Registrar and Secretary)
In
attendance
Mr Andrew Keeble (Director of Finance), Dr Sonia Virdee (Deputy Secretary), Mrs Susie
Morgan [agenda items 8, 9, 10], Mr Richard Murphy [agenda item 11].
UNRESERVED BUSINESS
1 CORRESPONDENCE AND ANNOUNCEMENTS
It was the last meeting for Laura Mansel-Thomas and Lisa Wade, and the Chair
thanked these departing members on behalf of Council.
198/14
The Chair welcomed new members Marco Francesconi, Milan Makwana and
Christine Raines.
199/14
Chair's action had been taken to rename the Institute for Data Analytics and Data
Science (IDADS) as the Institute for Analytics and Data Science (IADS).
200/14
2 STARRING OF AGENDA ITEMS
The minutes of the last meeting and item 17, Honorary Degrees and Fellowships
Committee, were starred.
201/14
3 DECLARATION OF INTERESTS
There were no declarations of interest.
202/14
4 MINUTES (C/14/65)
The minutes of the meeting held on 14 July 2014 were approved, subject to the
inclusion of some additional detail relating to the item on Pensions Arrangements
and Implications of Changes to the Annual and Lifetime Allowance.
3
203/14
Minute 155/14 would be amended to read:
204/14
‘A discussion followed in which a range of views were put forward. The proposal
recommended by the Remuneration Committee was put to a vote, with 9 in
favour, 7 against and 1 abstention. Council approved the proposal that staff
impacted by the LTA be eligible to receive an enhanced payment at a specified
level in circumstances where individuals chose to take advantage of the enhanced
opt-out arrangements in the USS. It was agreed that the University's position
would be reviewed in June 2015.’
5 MATTERS ARISING FROM THE MINUTES
None
205/14
6 CHAIR’S ACTION SINCE THE LAST MEETING (C/14/66)
Noted.
206/14
7 VICE-CHANCELLOR’S REPORT (C/14/67)
The Vice-Chancellor drew particular attention to the following from his report:
That the REF results would be published on 18 December 2014 and that Council
would be briefed as to the outcome.
207/14
One thousand more student members were engaged in sport this year due to the
work of the Students’ Union (SU) and its Sports Federation and the decision of the
University not to levy an additional charge for participation in sports activities.
208/14
The success of the inaugural Regius Professorial lecture by Professor David
Sanders, chaired by Mr John Bercow MP, which was attended by 500 people. The
lecture marked the start of the Professorial Inaugural Lecture programme.
209/14
Council was updated on the potential for the University to work in partnership with
Kaplan in Dubai, where the project risks had been considered by the University
Steering Group (USG). A full analysis would be considered by Senate, the
Strategy and Research Committee (SRC) and Council before any decision was
made. The relationship with Kaplan was good and discussions were continuing
regarding possible further partnership delivery in Hong Kong.
210/14
The SU President introduced the student Heirloom project, and Council members
were presented with their associate heirlooms.
211/14
8 PENSIONS UPDATE
The Registrar and Secretary provided an update on changes to the USS pension
scheme and industrial action.
212/14
It was reported that a UCU boycott of the setting and marking of assessed work
by students had commenced on 6 November 2014 and that the University had
deferred a decision regarding what action it should take in response, pending an
assessment of the adverse impact on students. A letter had been sent to UUK,
which represented employing institutions on the USS Joint Negotiating Committee
(JNC), expressing concern regarding the pace of change to the USS.
213/14
4
The UCU had put forward their alternative proposals for the future of USS to the
Joint Negotiating Committee and the committee had agreed to undertake a series
of intensive meetings to evaluate all proposals. In the interim, the boycott had
been suspended as of 20 November to at least 16 January 2015, the date of the
next scheduled meeting of the JNC.
214/14
There was some scope for a resolution which safeguarded features of the scheme
and was consistent with sustainability and affordability. The University had worked
hard to create an environment in which colleagues who wished to support the
UCU action would do so in ways that would cause minimal disruption to students'
study, and any detriment to students would be rectified. There was a risk that if
the dispute was not resolved, a deferred boycott would have more impact on
students later in the year.
215/14
The next stage in the consultation addressed the technical basis of the actuarial
evaluation of the scheme, including how volatility in the scheme should be
managed and assumptions regarding the pay inflation forecasts. A paper
considered by USG that morning was tabled and Council endorsed the broad
thrust of the UUK response to the consultation with additional requests,
emphasising the dampening effect of life-time annual allowances on the inflation
of pensionable pay, and in relation to volatility. Staff would be given an opportunity
to comment on the University’s response and Council agreed to delegate to the
Chair of Council authority to sign off the University’s final response to the
consultation, in the light of feedback from staff.
216/14
9 LIVING WAGE: REPORT AND RECOMMENDATIONS FROM THE TASK AND FINISH
GROUP (C/14/68)
USG had endorsed the task and finish group's recommendations that staff
employed by the University should be paid at a rate equivalent to the Living Wage
as a minimum. The recommendation was that the University should not cede
control over its cost base, but should from January 2015 align its lowest pay level
with the Living Wage. An exception would be applied for students undertaking
work experience or internships in order to enable the University to provide as
large a number of opportunities as possible.
217/14
The situation was complicated by the existence of three employing organisations
on the University’s campuses: the University; University of Essex Campus
Services; and the SU. As increases in the cost base of UECS would have a
destabilising effect, it was considered that it should be given time to adjust its
operating model prior to aligning rates of pay with the Living Wage over time. In a
similar way, the University will work with the SU to achieve a move towards Living
Wage-aligned levels of pay.
218/14
This business-led, incremental approach was preferred over a prescribed
timetable in order to make as rapid progress as possible. It was noted that rates of
pay aligned to the Living Wage would increase the University’s wage bill and
would lead to different operational models across UECS and the SU in particular.
Council would receive a regular report on progress.
219/14
In discussion, the social justice dimension of this decision was highlighted, with
some expressing the view that the introduction of rates of pay aligned to the Living
Wage should not be linked to expectations of efficiencies or increased
productivity, and that organisations paying Living Wage achieved other, indirect
benefits.
220/14
5
Council approved that:

the rate of pay on the current University Pay Structure (scale point 3 on 221/14
Grade 1) be aligned with the current Living Wage (LW) rate of £7.85 per
hour with effect from 1 January 2015;

the revised Grade 1 be designed as a three point scale with scale points 1
and 2 designated as appropriate points for development/
training/internship/work experience and other similar roles, scale point 2
be used for those appointed to substantive posts on a probationary basis,
with progression to scale point 3 upon successful completion of a
probationary period, and scale point 3 be used for all substantive posts
graded at Grade 1 within the University;
222/14

the spread of Grade 2 be reduced by one point through deletion of scale
point 2 to ensure that all appointees to Grade 2 were at the Living Wage
rate of scale point 3;
223/14

the Living Wage rate created as scale point 3 be reviewed each November
following the announcement of the national Living Wage rate, with the next
review to be scheduled for November 2015;
224/14

work be undertaken within the University’s wholly owned companies and in
collaboration with the Students’ Union to review the operational models of
these entities in order to facilitate a move towards sustainable pay
structures that would align with the Living Wage rate, with an annual
review of any approach undertaken by the Registrar and Secretary; and
225/14

the University should not apply at this time for formal accreditation as a
Living Wage employer, but would review this position on an annual basis.
226/14
10 UNIVERSITY OF ESSEX STAFF SURVEY UPDATE (C/14/69)
The Deputy Vice-Chancellor introduced the survey which had been designed and
would be undertaken by survey experts in ISER. The survey was shorter and
more easily analysed than before, although analysis in relation to the previous
survey would still be possible. The survey had the support of UCU.
227/14
The format and content of the survey was discussed and whether more open
ended questions would be useful; however the advice from ISER had been to
focus on key stressors as a means of getting good information. It was noted that
separate work was being undertaken through the Harassment Advisory Network
to understand the incidence of bullying across the University.
228/14
It was agreed that the meaning of 'successful' in the progress report lacked
specificity, and clarity regarding what constituted success should be provided in
the report on the survey outcomes.
229/14
Council noted that the survey would not be externally benchmarked, noting that in
the past external comparators had not been very useful.
230/14
Council approved the process for conducting the next staff survey in January
2015, the draft questionnaire, and the method of incentivising participation from
staff without regular access to a computer at work.
231/14
6
11 INFORMATION SUPPORTING STRATEGY 2013-19 (C/14/70)
The Director of Information Systems Services introduced the Supporting Strategy
noting that production and propagation of information was the lifeblood of the
University. The Supporting Strategy built on areas of current strength, and
articulated the values pertaining to use of information, such as improving access,
information sharing, self-service systems, embracing cloud based systems and
enabling an information culture.
232/14
The Supporting Strategy was intended to be challenging but realistic and would
be deliverable over a 5-6 year period. It was noted that the investment to support
delivery would be considered through the University’s capital planning decisionmaking route and as part of the Professional Services planning process,
alongside other priorities.
233/14
Council approved the Information Supporting Strategy 2013-19.
234/14
12 OUT-TURN REPORT FOR 2013-14 AND REVISED BUDGET FOR 2014-15 (C/14/71)
The out-turn had exceeded the budget due to good cost control, higher ‘other’
operating income, and lower maintenance spend.
235/14
In considering the revised budget forecast for 2014-15, it was noted that all
departments were expected to return a surplus and that investment would be
made strategically, in areas of strategic priority.
236/14
It was noted that Professional Services costs had gone up in part due to a
cessation of recharging and investment in employability support, as a product of
the planning process. The University was mindful of the risk of underinvestment in
its Professional Services and the constraint it would place on delivery, innovation
and the University’s ability to bid for external funding. A benchmark level of 28%
of faculty turnover had been set in the past, and the current approach was to
constantly challenge and question expenditure and best value.
237/14
Expenditure in the Research and Enterprise Office had flat-lined, and it was noted
that a forthcoming strategic review would inform future investment requirements.
238/14
Council noted the forecast out-turn for 2013-14.
239/14
13 REPORTS FROM THE AUDIT AND RISK MANAGEMENT COMMITTEE
The Treasurer reported that the meeting had been non-quorate and post meeting
consultation had taken place to allow the ratification of ARMC decisions.
240/14
(a) Annual Report 2013-14 (C/14/72)
The Treasurer presented the Committee’s annual report to Council and the ViceChancellor, which provided assurance with regard to internal controls, risk
management, value for money, data quality and the University’s financial
environment. It was noted that some practices and systems were in need of
review in order to keep pace with the growth of the University, for example, new
systems relating to accruals and a review of procurement were in progress.
241/14
Council noted the Annual Report of the ARMC to Council and the ViceChancellor.
242/14
7
(b) External Audit Report 2013-14 (C/14/73)
The Treasurer noted that the performance of KPMG in undertaking their first audit
of the University’s accounts had been good in terms of the support and advice
provided and the resulting financial statements. All recommendations in the report
were either in train or had already been implemented.
243/14
Council noted the External Audit Report 2013-14.
244/14
Council thanked the Treasurer.
245/14
14 FINANCIAL STATEMENTS FOR 2013-14 (C/14/74)
Council received the audited financial statements for 2013-14 and considered
them in the light of the Annual Report from the Audit and Risk Management
Committee and the External Audit Report.
246/14
Council scrutinised the detail of the financial statements and the associated
report. In discussion, it was noted that under ‘other operating costs’, the £6.3m of
rent guarantees remained off balance sheet and were covered by a budget
contingency.
247/14
It was also noted that the loss in respect of UCS was a non-cash loss and that the
University was now released from UCS loan guarantees. Plans for taught degree
awarding powers and independence were progressing well, and UCS was
currently undergoing QAA inspector observations. Notification regarding
autonomy would be at the end of 2015 at the earliest.
248/14
Council approved the Financial Statements for 2013-14.
249/14
15 ANNUAL MONITORING STATEMENT 2014 (C/14/75)
Council approved the Annual Monitoring Statement 2014 for submission to
HEFCE.
250/14
16 ANNUAL REPORT ON HEALTH, SAFETY AND WELLBEING PERFORMANCE: AUGUST
2013 TO JULY 2014 (C/14/76)
The Deputy Vice-Chancellor introduced the report noting that all action plans and
inspections were rated green, and that the report covered a comprehensive range
of indicators. Work on the website remained a challenge against other
development priorities.
251/14
There was an error in the information in the report relating to the Residents’
Support Network (p.239) and this would be corrected.
252/14
Council approved the Annual Report on Health, Safety and Wellbeing
Performance: August 2013 to July 2014, subject to the amendment above.
253/14
8
17 HONORARY DEGREES AND HONORARY FELLOWSHIPS COMMITTEE (C/14/77)
In making their recommendations, the Honorary Degrees and Fellowships
Committee had considered the appropriateness of honouring one individual who
had been the subject of some negative media comment. Council considered the
circumstances of this one case in particular and saw no reason not to accept the
recommendation of the Honorary Degrees and Fellowships Committee and of
Senate.
254/14
Council approved the award of Honorary Degrees and Honorary Fellowship for
Graduation 2015 and Alumnus/Alumna of the Year for Graduation 2015 and
Graduation 2016.
255/14
Council agreed that a reminder should be sent to Council members encouraging
them to put names forward for the next round by 23 January 2015.
256/14
18 UNIVERSITY ORGANISATIONAL AND MANAGEMENT ARRANGEMENTS
(C/14/78)
Noted.
257/14
19 REPORT ON PERFORMANCE AGAINST KPIs (C/14/79)
Council approved the report.
258/14
20 CAPITAL INVESTMENT PLAN: PROGRESS REPORT (C/14/80)
Council approved the current status and budget position of projects on the Capital
Investment Plan.
259/14
21 RESEARCH GRANTS AND CONTRACTS OUTTURN 2013-14 (C/14/81)
Noted.
260/14
22 VALUE FOR MONEY STRATEGY AND STATUS REPORT (C/14/83)
Council approved the Value for Money Strategy and that reports on progress on
Value for Money initiatives should be submitted in the autumn of each year to the
University Steering Group, the Strategy and Resources Committee and the Audit
and Risk Management Committee.
261/14
23 REPORTS FROM COMMITTEES
(a) Strategy and Resources Committee (6 October 2014) (C/14/84)
Noted.
262/14
9
(b) Nominations Committee (3 November 2014) (C/14/85)
That all the recommendations contained in the Nominations Committee report to
Council be approved.
263/14
24 REPORT AND RECOMMENDATIONS FROM SENATE (C/14/86)
Approved.
264/14
25 POWERS OF COUNCIL: FORMAL DELEGATION OF POWERS
Council re-affirmed and approved the formal delegation of powers.
265/14
26 WHISTLEBLOWING POLICY
Noted.
266/14
27 ANY OTHER BUSINESS
There was no other business.
267/14
DATE OF NEXT MEETING
The next meeting will be held on Monday 16 February 2015.
RESERVED BUSINESS
There was no reserved business
Dr Sonia Virdee
Deputy Secretary
December 2014
10
268/14