Minutes of the Fourteenth Meeting of the Resources Committee of the City of Sunderland College held at 3.30pm on Tuesday 13 March 2012 in Room 614 at the Shiney Row Campus

PRESENT: Ms S Atkinson, Mr A Carter, Mr R Edmonds, Mr I Forster (Chairman), Mrs A Lawson-McLean, Mr M Ridley.

IN ATTENDANCE: Mr D Howells, Ms S Duncan, Mrs J Ridley. CLERK: Ms R Ferguson (Dickinson Dees)

R/12/14 APOLOGIES FOR ABSENCE

Apologies for absence were received from Mr S Crake and Ms A O’Donoghue.

R/12/15 MINUTES OF THE PREVIOUS MEETING OF 17 JANUARY 2012

The minutes were accepted as an accurate record.

R/12/16 MATTERS ARISING THEREFROM

There was none.

R/12/17 BUDGETARY CONTROL STATEMENTS AND BUDGET UPDATE

The Vice Principal Finance presented a report setting out the budgetary control statements for the six months ended 31 January 2012.

It was noted that the income and expenditure account was showing an operating surplus of £1,020k after providing £180k for potential contingencies. The significant variances were outlined in full in the commentary attached as Annex 1 to the report. The Vice Principal said that management were confident of achieving the year-end target of a 5% operating surplus.

The Vice Principal gave an update on the current enrolment figures, in summary it was noted that: 16-18 learner responsive enrolments were down by 36 compared to

the same time last year, however the College was making every effort to close the gap.

The reduction in 19+ delivery represents a timing issue as much of this work is undertaken later in the year.

1

The College was on course deliver £1.2m of 16-18 apprenticeships against a funded target of £640k. Discussions were taking place with the SFA seeking an increase in funding to reflect this extra delivery.

In response to a question from a Governor, it was noted that International recruitment was lower than expected and the College was exploring ways of making savings to mitigate. Discussion took place on the the impact that changes to the student visa system were having on recruitment to UK courses. The Chair commented that the Board were satisfied that the College had adequate checks in place. It was noted that the International Department has exceeded its financial target and had broken even a year ahead of target.

The Committee

received the budgetary control statements.

Mrs Lawson-McLean declared an interest in the next item

R/12/18 ACTIONS TAKEN TO ADDRESS FUNDING REDUCTIONS

The Vice Principal Finance presented the report outlining the actions which the Senior Management Team were considering to address the anticipated reductions in funding during the financial years 2012/13 and 2012/14.

The Committee discussed the implications of the funding reductions and asked a number of questions. It was explained that a meeting of the Change Committee had considered the draft Change Strategy and a report setting out a detailed business case for change, including the options and associated risks, would be brought to the next Board meeting for discussion.

The Committee:

i. noted the contents of the report;ii. noted that a report on the Change Strategy would be brought to

the next Board meeting.

CONFIDENTIAL

It was agreed to deem the report and its minute confidential from public scrutiny as it contains sensitive information.

R/12/19 REVIEW OF FINANCIAL REGULATIONS

2

The Vice Principal Finance presented the report explaining that a review of the financial regulations had recently been undertaken to take account of a number of factors including: the introduction of a new anti bribery policy revision to the gifts and hospitality policy responding to the development of a guidance document on

procurement changes to credit ratings for Banks changes in roles and job titles

In addition, a general review had resulted in a number of other proposed amendments to the levels at which approvals are required. Soundings had been taken from Internal Audit and changes made to reflect the limits used by other Colleges.

In response to a question regarding the timing of increasing the limits given the current financial constraints facing the College. The Vice Principal assured the Committee that the internal mechanisms were robust and the changes only reflect what tends to be the practice at other colleges.

In response to a further question regarding the Resources Committee’s authority to agree expenditure and whether the Chair should be given the authority to authorise urgent approval. It was noted that following the review of governance, the Board had adopted the philosophy of delegating decisions down to the lowest level possible. It was felt that as the Resources Committee meets regularly enough to deal with any approvals around spending.

A Governor queried whether any incidences of fraud should be reported to HEFCE in addition to the SFA, and if so then this should be reflected in the financial regulations. The Vice Principal Finance agreed to seek clarification and make an amendment if necessary.

The Committee:

agreed to recommend the revised Financial Regulations to the Board for approval, subject to seeking clarification as noted above.

R/12/20 IT UPDATE

The Vice Principal Finance gave a verbal update. He explained that the project was “going well”. Capita had started on site work, the issue regarding the CDMC role had been resolved and a revised plan had been drawn up. It was intended to give the students some up-front benefit such as Wi-Fi whilst work was progressing.

The Committee:

3

received the update.

R/12/21 ESTATES UPDATE

The Vice Principal Finance gave a verbal update explaining that a full Estates Strategy was being developed and would be brought to a specially convened Board meeting to enable Governors to make a decision on the preferred option.

In relation to the sale of the land at Newcastle Road, the Vice Principal Finance explained that the road had been stopped up, planning permission had been submitted, conditional contacts had been exchanged, a licence agreed and the purchaser now had a presence on site.

The Committee:

received the update.

R/12/22 HEALTH & WELBEING GROUP MINUTES

The Committee:

received the minutes noting the issues considered by the Health & Wellbeing Group.

R/12/23 ANY OTHER BUSINESS

There was none.

R/12/24 DATE, TIME AND VENUE OF NEXT MEETING

The next meeting will take place on Tuesday 1 May 2012 at 3.30pm in Room 614, Shiney Row Centre.

The meeting closed at 4.45pm.

4