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HOPWOOD HALL COLLEGE CORPORATION Minutes of a meeting of the Employment and Finance Committee held on 2 October 2008 Present Robert Clegg Linda Feerick James Gallagher (Chair) Caroline Taylor Derek O’Toole (Principal) In Attendance Ralph Devereux Andy Ingham Margaret Kingsford (Clerk) Barclays Bank (Capital) (Exec Dir T&L) Andrew Mulliner OJ Rahim John Spindler Barclays Bank (Capital) (Exec Dir Skills (Desig)) (Interim Exec Dir FP&HR) Philip Walsh Barclays Bank (Capital) 1/08 APOLOGIES, ELIGIBILITY, QUORUM AND DECLARATION OF INTERESTS No notice had been received of any member becoming ineligible to hold office. The meeting was quorate and no interests had been declared. 2/08 ELECTION OF CHAIR Caroline Taylor proposed and Linda Feerick seconded Robert Clegg as Chair, there were no other recommendations; carried unanimously. 3/08 ACCOMMODATION STRATEGY – LOAN (OUT OF AGENDA ORDER) The Committee and the Barclays Bank party introduced themselves and a full and searching examination of the optimum method of achieving the necessary capital to fund the contribution was completed. The necessary funds would be made available in two individual tranches, the first to service expenditure throughout the construction work and the second following completion; these elements would then be converted into a fixed term loan repayable over 22 years and use would be limited to funding the accommodation strategy; an arrangement fee of £4560 would be payable and further borrowings with other lenders would be limited to £.5m throughout. Interest rate alternatives were considered and it was agreed that these would be finally settled in November and would be fixed for the whole term. Alternatives, such as variable or capped rates were considered and discussed but agreed as impractical and difficult for financial planning. It would be necessary to determine the authorised signatory arrangements and this would be considered at the 26 October Corporation meeting as part of the general resolution. The cash flow, financial health and affordability were all considered and discussed in depth and it was unanimously agreed to recommend acceptance of the loan arrangements to the corporation. Acceptance of the loan arrangements was recommended to the corporation. 4/08 MINUTES OF THE MEETING HELD ON 26 JUNE 2008 The minutes of the previous meeting were confirmed and signed. 5/08 MATTERS ARISING AND NOTIFICATION OF URGENT BUSINESS re 41/07 (31/07e). Contracts. Negotiation surrounding the standardisation of teaching contracts continued. 6/08 FINANCE REPORT The Financial Report, effective to 31 July, reflected the year-end position and would form the basis for the Annual Financial statements; this was then scrutinized in detail page by page. The present position, an operating loss of c£3.18m, had been forecast, discussed (and minuted) throughout the year and had resulted largely from accounting conventions relating to the introduction of FRS17 and the write off of redundant assets (Buildings). The underlying deficit c£159k was set against a break even budget and was attributable to fully detailed variances, all of which were fully analysed and discussed. Key PIs were then considered and the record turnover of £21.7m was noted; payroll costs at 66.8% of turnover were below the upper target of 68%; financial Category B was noted and the target of regaining Category A was re- affirmed, the CR at 1.1:1 needed to improve to 1.3:1. It was agreed that although the performance had been foreseen and discussed fully through the financial year it nevertheless remained disappointing. FRS 17 provision had increased considerably from £965m to £2.2m. The situation was fully considered and discussed and the AFS would be brought to the next meeting for consideration. The Information was noted and received. 7/08 ANNUAL PAY AWARD The AoC had now made final recommendation for the 2006/07 pay award, which was confirmed as 3.2% from 1 October 2008 (or £550 whichever greater). Budgetary provision had been made for an annual award of 2.5% to all staff and it was agreed that the additional £24k could be absorbed. The increased cost in future years was discussed and noted. It was unanimously agreed to implement the changes as soon as possible; payment to SPH would be considered by the Remuneration Committee in line with the pre-planned and approved annual schedule. The pay award was approved. 8/08 INITIAL ENROLMENT UPDATE The LSC contract required a challenging enrolment of 2920 full time 16-18 year olds. These equated to a SLN value of 3954 students and, in order to allow for wastage (c4%). An internal target of 3649 had been set for all full-time students, and curriculum managers have reported 3512 attending classes. These numbers are continuing to increase. To qualify for funding full-time students must attend for at least 6 weeks. At present the MIS system is reporting 3620 students. Work on the recently introduced student records database (EBS) continued and the anomaly would be resolved shortly. Current enrolments indicated that all targets would be met. The Information was noted and received. 9/08 RMBC – TRANSFER OF CONTRACT In line with the earlier notification that the RMBC was seeking to transfer WB and Community based learning, work continued on determining the consequent effects. A project team was examining the likely outcome of such a move and, as part of the evaluation, an independent due diligence process together with a separate HR implication study, were almost complete and the associated reports were expected shortly. The issue was discussed and it was noted that considerations should be completed to allow consideration at the October corporation meeting. The Information was received. 10/08 EMPLOYER ENGAGMENT The employer engagement process was proceeding well and in line with the strategic theme and the enabling aims were noted and considered. KPIs were being developed and would be used as the basis for a full progress report to the Corporation at the October meeting. Progress with TTG at both levels was encouraging and had exceeded LSC targets although performance against the more demanding internal targets, was even more noteworthy with an expected volume of £3.95m (contribution c£1.1m). The sub-contracting arrangements were considered, discussed and noted. It was now necessary to redevelop and rebrand the BDU and the prime issue was to relocate, probably to Unique Mill, in the near future and to staff and equip the facility accordingly; all associated costs (total c£230k) were detailed, discussed and agreed as justified and funded from the expected return and income from letting of the present BDU accommodation to the RSFC contractors. It was noted that such expenditure was not in the current budget however despite being speculative was justified by the expectations. It was agreed: a. to establish a dedicated cost centre for the BDU (to be rebranded as Orchard) to facilitate quarterly financial performance monitoring; b. to take a fully argued paper on employment strategy to the corporation meeting in October; c. that expenditure associated with the relocation, rebranding and establishment of the “Orchard” facility was authorised. 11/08 TECHNOLOGY PARTNER The ambitious vision for future proofed ITC required integration at all stages of the planning for the accommodation strategy and, accordingly it was essential to follow the lead of other building programmes and to appoint a technology partner to achieve the necessary specialist input. Although the associated cost of c£100k over 5 years was not included in the project costings it would be possible to assimilate £20k/year; it was unanimously agreed as a sensible and prudent appointment and was approved. The appointment of a technology partner was agreed. 12/08 CORPORATE SERVICES UPDATE (Confidential Item) 13/08 URGENT BUSINESS 14/08 DATE OF NEXT MEETING The next meeting would be held at 1600 on 19 February 2009. HOPWOOD HALL COLLEGE CORPORATION Minutes of a special meeting of the Employment and Finance Committee held on 11 December 2008 Present Robert Clegg James Gallagher Caroline Taylor (Chair) Derek O’Toole (Principal) In Attendance Ralph Devereux John Spindler (Clerk) (Interim Exec Dir FP&HR) Apologies Linda Feerick Margaret Kingsford (Exec Dir T&L) 15/08 APOLOGIES, ELIGIBILITY, QUORUM AND DECLARATION OF INTERESTS No notice had been received of any member becoming ineligible to hold office. The meeting was quorate and no interests had been declared. 16/08 AFS 2007/08 The AFS accounts were considered in detail, there were some minor textual adjustments to be made but the numbers were accurate and they were recommended to the Corporation for approval and signature. It was agreed to record thanks for the hard work and professionalism of the Interim ED (FP&HR) and the finance team which had been reflected in the efficient progress of the audit. The AFS 2006/07 was recommended to the Corporation for signature. 17/08 URGENT BUSINESS There had been no urgent business declared. 18/08 DATE OF NEXT MEETING The next meeting would be at 1600 on 19 February 2009.
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