Governing Body Minutes
Meeting
Business Committee
Date
Location
Board Room First Floor Inspire Building
Time
Membership Beverley Aitken, Liz Langton-Way, Charles Buchanan, Patrick Hollis
In
Attendance
Anne Leese (Officer)
Chris Legg (Officer)
Nick Holbrook-Sutcliffe (Item 10)
Tara Ashman (Clerk)
ITEM
1
2
3
4 March 2014
5.00pm
COMMENTS
Welcome and
Apologies
Declaration of
Interests
The Chair welcomed Tara Ashman as Clerk to her first Business Committee. Apologies from Graham Razey.
Minutes of last
meeting
The minutes of the last meeting held on 26 November 2013 were approved and signed as an accurate record
of the meeting including the confidential minutes.
Subcontracting
Update
Item 10 was brought forward to this point in the agenda. NHS discussed the contents of the subcontracting
paper and invited questions. The Chair asked NHS to outline subcontracting to the Committee and this was
contextualised for the College in terms of the two definite types of contract, one where we are enhancing the
offer to our students and adding value to the experience (Rosemary Shraeger/Charlton Athletic) and the other
where we are having to make up numbers for to meet target quota (Free to Learn/JTJ). The expectation
going forward is to reduce this type of subcontracting. A Governor asked if we are subcontracting students
we already have or because it is an offer we don’t currently provide. NHS explained some of the differing
Apart from standing declarations no others were declared.
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Business Committee 4 March 14
ACTION
POINT
REQUIRED
reasons, some subcontractors are too small a provider to have their own contract, some are due to the
College environment not being a suitable place for them but still fulfilling our commitment to the
Community. A lot of work has gone in to improving quality procedures and this rigour has been measured in
subcontracting receiving good or better with an action plan in place to achieve outstanding.
A Governor asked about where there is a large cohort the business sense for the subcontractor to do it
themselves. NHS agreed and commented on this area of work having a focus to only franchise where it adds
value going forward, everything has to be purposeful.
Governors commented that it gave comfort that we are adding value and that it was nice to not do it purely
for Financial reasons. The Chair noted the report had gone to Audit Committee last week.
A Governor asked whether we would be seen as one College once we have Folkestone & Dover sites in terms
of numbers of students. CL advised we will have target numbers to achieve at each campus and the
responsibility to our partners.
The Chair thanked NHS for his report.
[NHS left the meeting at 5.30pm]
NOTED – the Committee noted the Subcontracting Update
4
Matters arising

Cleaning Contract Apprenticeships Update – The contractors have not had an apprenticeships yet. AL
will continue to follow up but there have been some overall concerns so the contract will be looked at
again. A discussion around value of cleaning apprenticeships took place.

A Governor asked about the outcome of the potential water leak discussed on page 3 of the previous
minutes, the leak has been sorted out and discussions are ongoing with Southern Water in what
appears to be 2 leaks, one either side of the meter.

Outcome of the risk management meeting discussed on page 7 of the previous minutes was
commented by CL notably identifying that if we did not use a travel agent for HE courses/study abroad
then we would not be insured for such. The Chair noted the VAT issues being a tour operator and CL
confirmed we would not intend to be one.

Sector Staff Profiling (to be discussed under item 5 of this meeting)
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Business Committee 4 March 14
AL

Dreamland Project Business Plan (to be discussed under item 8 of this meeting)

Nursery Project (to be discussed under item 8 of this meeting)

Campus Business Incubation Units (to be discussed under item 8 of this meeting)
Management Accounts
5
Financial Report
Governors had received the Management Accounts for January 2014 prior to the meeting – CL guided them
through the summary and reports on its content:







Slightly down on numbers for EFA. We have just been advised that we are to receive 17% less funding
for 18 year olds next year as it is deemed they need less intervention this will be identified in next
years budget. We always put in transitional protection but it is more damaging to FE than schools.
SFA 16-18 apprenticeships slightly down, we will not be paid for over delivery in 12/13 however we
have over recruited for 24+ loans, well on HE courses but also across the curriculum. 2 or 3 of the HNC
courses over recruited which was good news. The overall position is looking good and we are on
course to hit target by the end of the year. Governors were encouraged that the move into this area
remains positive. There is a negative variance within alternative curriculum but it is marginal.
Pay costs continue to look very good, some of which has been offset against pension reserve as
actuarial forecast is now in and has gone up again.
Non pay continues to look very good, there has been considerable effort in catering to reduced
wastage and consideration of menus against curriculum. Takings in the refectory are also up,
improved efficiency all round.
Transport and Subsistence – HE have only just gone away now so what looks like underspend is likely to
be overspend due to increased numbers.
Franchise & Partner Payments – some payments were held back however this is now looking better.
Depreciation charge – we are still receiving bills so this is a bit delayed but will rectify in year, the
capital interest costs, the CET building opened in November and interest rates are significantly lower
than expected.
Governors were concerned with the acquisition of Folkestone and Dover this could have a significant cost to
us against this budget, including time of staff at the other sites and what would not be done in Broadstairs to
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Business Committee 4 March 14
make up the shortfall. CL and AL reassured the Governors that no one below the Senior Management level is
involved at this stage; Graham will be Principal Designate from Monday 10th March and Jayne Walker is now
full time Campus Director at Folkestone. There are costs but these are being monitored and no concerns at
present.
CL detailed the Commercial report and advised that the Restaurant didn’t open in the Summer, recently
appointed a new Restaurant & Events Manager who is currently running the café at Hornby Hobbies. A
Governor queried the move to Hornby Hobbies and the decision to move quickly without staff in place. CL
advised that the facility will be used for our learners to experience a different catering environment and reopened as soon as possible to not lose custom. A Governor asked why the Restaurant wasn’t opened in the
Summer and CL explained the decision was taken to focus on the development within the Yarrow building at
present. A Governor asked about the salon and CL commented that there was marked improvement with a
lot of activity going on.
Sector Staff Profiling Report
CL explained the staff benchmarking and that looking at total spend on pay we’re at a low pay percentage
compared to estate running costs which are high. CL felt we were on a par with where we would expect to
be and there are no budget pressures. A Governor noted the report was self-explanatory.
Project Procurement Mandate
A recommendation was put to the Full Governing Body for delegated approval to the Chair of the Business
Committee, the Chair of the Governing Body and the Principal to authorize on behalf of the Full Governing
Body expenditure up to a threshold of £500,000 for the Yarrow, Horizon and Enterprise refurbishment project
which was approved by an electronic resolution so as not to delay the works until 31st March 2014 whereby a
decision would need to be taken to continue for a further period or return to previous thresholds.
Further questions were invited. The Chair thanked CL for his reports.
NOTED – the Committee noted the Management Accounts for January 2014, the Sector Staff Profiling
Report and the Project Procurement Mandate
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6
Property Strategy
Update
AL discussed the CET dispute noting that by and large it has been concluded. Alex Hall has been directed to
take an informal approach rather than a decision to pursue a legal route, £20k off the contract with Morgan
Sindall and withholding final payment to HNW. The grand opening will not now be held on 3 April and we are
waiting for a new date when the Right Hon. Gregory Barker, Minister for Climate Change can attend. Since
the paper was written we have been shortlisted for a National Green Building award, the ceremony is in
Manchester in May. The Chair congratulated AL on the success.
We now have full planning approval for the Centre for Creative Industries and are currently looking to appoint
the building contractors although this has not be successful to date. The industry is experiencing an upturn,
which has meant prices are going up and companies are busier. The project schedule will be affected if the
appointment of contractors is delayed further, the deadline is December 2014 for completion with occupancy
from January 2015.
Architects and Quantity Surveyors have been appointed and the car park for the Yarrow has now gone to
planning. AL noted original capital bid was for the infrastructure of the buildings not fit out of the hotel and
kitchens. We are however consulting with Heritage Lottery to see if they would contribute to the extra costs
given the buildings listed status. The windows are being repaired with secondary glazing not replaced.
[CB left the meeting at 6.25pm]
NOTED – the Committee noted the Property Strategy Update
7
Human Resources
Update
AL advised that a lot of work had been done on determining fixed salary points. The ranking has been
completed with salaries now to be matched to the respective scores. This is a balancing act based on
affordability, we may look to move staff up to their respective points over a period of time if the increase is
significant the intention is that all staff will be advised of their point by Easter. Lecturers have already
moved from an 8 point scale to a 3 point scale, moving up every 2 years based on service. A Governor asked
how Folkestone and Dover salary scales compared to our existing pay rates. AL advised that ours tend to be
more generous, and that any changes made will need to take account of the whole of East Kent College.
Sickness is down overall although we have been hit particularly badly at management level by long term
sickness. This has created additional work and quality issues as some specialist areas can be hard to cover,
(Science cited as an example). Short term sickness is being managed through the Bradford Factor.
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Business Committee 4 March 14
Governors asked if we had insurance against long term sick and what type of issues were the main areas for
sickness, they also expressed their concern for the overall student experience. AL explained there is a small
contingency budget but no insurance against sickness, the reasons for absence were often physical or personal
issues and not directly work related.
A Governor commented on the very generous sickness policy and AL advised that it is fairly standard across
the sector.
Questions were invited. The Chair thanked AL for her report.
NOTED – the Committee noted the Human Resources Update
8
Commercial
Development
Update
Dreamland Project
The bid was not successful and although discussions are taking place for other ways to fund it is not likely to
be pursued at this stage.
Nursery Project
Ofsted registration process for the nursery has commenced. Two existing staff members are assisting with
the process as one was a recent Nursery Manager and one has good contacts within the field and are well
placed to link the Nursery to the existing curriculum. Smarties will close in April and a Governor asked what
will happen between April and September. CL advised the children have all been relocated and we may get
some return when we open but there will be no on site provision between April to September.
Campus Business Incubation Units
There is nothing to report at present as the units are tied into the refurbishment of the Yarrow building.
Hornby Hobbies Café
This was discussed in item 5.
Property Development
CL was pleased to note that Commercial development Cross College has been discussed and the Programme
Area Manager for Construction, Kim Gallagher has proposed that properties could be brought by the College
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Business Committee 4 March 14
for students to experience a real work environment and sell on for profit. AL added that it had been
discussed at CLB with a proposal to approach Thanet District Council and work alongside them and share
proceeds of the sales which they seem keen to discuss further.
Governors were positive about the concept in principle, being a fantastic opportunity for students, however
had concerns over legal issues and personal experiences of the pitfalls within property
refurbishment/redevelopment but were pleased to hear a collaboration with TDC could be a better risk that
could perhaps be rolled out across the three sites.
CL had met with Buzzacott recently to discuss VAT being zero rated for 6th form Colleges this may mean we
are able to recoup VAT from the CfET project build but would be on a room by room basis as has to be less
than 5% fee payers using the facility. Considerations to be given around the Yarrow project and what could
be zero rated given its listed status. Buzzacott recommended setting up the Yarrow Hotel as a standalone
company as it makes it clearer for this purpose.
NOTED – the Committee noted the Commercial Development Update
9
Policies and
Documents
AL took the Committee through the policies for noting and advised they had all been through Policy
Committee. The Chair commented that on the Treasury Management Policy, point 4, it doesn’t mention
anything about existing covenants.
NOTED – the Committee noted the following policies:
Grievance Procedure
Recruitment of Staff
Salary Review
Staff Expenses
Supply Chain fees and Charges
Treasury Management
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Subcontracting
Update
College
Performance
Indicators
This was discussed prior to matters arising in the agenda
CL guided governors through the current CPI’s. There was discussion on CPI’s 1-16 and CL invited comment. A
Governor was concerned about apprenticeships and CL identified this was a focus on the Curriculum plan,
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Business Committee 4 March 14
apprenticeships are buoyant within Science and Construction but a greater focus to be given towards
Hospitality, Early Years and Business Administration.
The Chair asked about links with the NHS and AL advised they have come to us for training last year and that
has been increased this year so links have been made. Graham and Andrew are directing the curriculum with
Folkestone and Dover and this was something for the Education Committee to consider going forward.
The Chair was concerned about students not feeling safe and AL explained that this had been looked at in
some detail and a lot of comments were attributed to the move mid-term to the new building and an aversion
to change.
Further questions were invited.
NOTED – the Committee noted the CPI’s (January 2014 version).
12
Risk Register
Update
CL advised the Committee that the Risk Register has been updated with a focus on the Folkestone and Dover
expansion and has been reported on at Audit Committee. Particular areas of note was the increased risk in
health & safety although this is due to ongoing contractors on site so increase in likelihood, all steps have
been taken to minimise the risk. The disaster recovery plan has been tested with a recent gas leak. Failure
to safeguard has increased in probability which may be attributed to the type of people we’re attracting
although we haven’t increased the risk. The risks attached to Folkestone and Dover were considered, CL
advised Graham is keen to not have a re-inspection until 2016; there is also an identified mismatch between
curriculum plan and offer. Neither site is fit for purpose, Dover with a majority of classrooms and Folkestone
needing significant investment.
A Governor felt positive about getting the curriculum right and excellence being achieved with the right
attitude. There is a positive model from Broadstairs to take forward. CL felt we were doing well to mitigate
the risk and the Governors felt we were aware of the risk both at all sites and doing what we can to minimise
them. The Chair and Committee look forward to further update at the Full Governing Body.
Questions were invited. The Chair thanked CL for his report.
NOTED – the Committee noted the current Risk Register (February 2014 version).
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13
14
15
Any Other
Business
Matters
considered
confidential
Date of Next
Meeting
None
None
3rd June 2014 in the Board Room of Inspire Building at 5.00pm.
There being no further business the meeting closed at 7.25pm.
Signed: ……………………………………………………………………………………..
Print: ………………………………………………………………………………………..
Date: ……………………………………………….
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