UNIVERSITY OF ABERDEEN JOINT PLANNING, FINANCE & ESTATES COMMITTEE MINUTES OF MEETING HELD ON 3 MAY 2005 Present: Mr M Lockhead (Convener), Principal, Professor IR Booth, Professor N Haites, Ms A Harper, Professor BD MacGregor, Dr M Mackie, Dr A Mair, Mr P Richards, Professor AA Rodger; with Ms I Bews, Mr S Cannon, Mr A Donaldson, Professor C Gane, Professor DF Houlihan, Dr PJ Murray and Ms K Atkinson (Clerk). Apologies for absence were received from Professor SD Logan, Dr JG Roberts and Professor W Cairns Smith DECLARATION OF INTERESTS With regard to minute 75.2, Dr Mair, Mr Cannon and Ms Bews declared an interest as Trustees of the University’s Superannuation and Life Assurance Scheme. 71 MINUTES The minutes of meeting held on 8 March 2005 were approved. 72 MATTERS ARISING 72.1 RESIDENCES BUDGET ASSUMPTIONS AND FEES 2005/06 The Committee noted that the Court had approved residences fees for 2005/06. 72.2 TUITION AND MISCELLANEOUS FEES 2005/06 The Committee noted that the Court had approved tuition and miscellaneous fees for 2005/06. 72.3 INCREASE IN GOING RATES FOR ENTRY TO LAW IN 2007 The Committee noted that the Court had approved increased going rates for entry to LLB programmes in 2007. 72.4 CENTRAL HEATING STATION It was noted that the Court had considered the alternatives for the Central Heating Station following receipt of tenders which had been significantly higher than the anticipated cost approved in May 2004. The Court had noted that the procedures followed in appointing the specialist consultants had been reviewed, and that the appropriate due diligence had been undertaken. It had been noted that legal advice had been taken with respect to pursuing financial compensation. The Committee noted that Court had approved additional expenditure of £2.48 million for the preferred option of a Combined Heat and Power system. 73 STRATEGY AND PLANNING 73.1 SUMMARY OF MAIN GRANTS IN SUPPORT OF TEACHING AND RESEARCH 2005-06 The Committee received a Summary of Main Grants in Support of Teaching and Research 2005-06 (JPFE04-05:77). 73.2 ANALYSIS OF SHEFC LETTER HE/08/05 The Committee received and considered an analysis of SHEFC Circular Letter HE/08/05 (JPFE04-05:78) and noted that the University’s allocation of grant had increased by 3.9% since 2004/05, 0.5% above the average increase across the sector. However, it was noted that without the 74% increase in Knowledge Transfer Grant funding to £1.534million, the University’s total funding increase would have been below the sector average. The Committee noted that Universities were required, as a condition of grant, to devise and implement strategies to address the Scottish Executive’s priorities for: (i) equality of opportunity and fair access, (ii) continuous improvement of learning and teaching, (iii) research and knowledge transfer, and (iv) human resources policies and management. 73.3 DRAFT UPDATE OF STRATEGIC PLAN 2004-2009 The Committee received and considered a Draft Update of the Institutional Strategic Plan 2004-2009 (JPFE04-05:79). A number of amendments were suggested for incorporation. The revised draft would be considered by Court before being brought back for formal approval in June 2005. 73.4 CROSS-BORDER STUDENT FLOWS: HIGHER EDUCATION TUITION FEE LEVELS The Committee received a consultation paper on Cross-Border Student Flows: Higher Education Tuition Fee Levels, together with a summary of the main issues (JPFE04-05:80). The Scottish Executive was inviting comments on the introduction of higher general rates of tuition fees in Scotland. The Committee noted that this issue had arisen due to the introduction, from 2006, of “top-up” tuition fees in England when HEIs would be able to charge UK/EU students up to £3000 per year for their programmes of study. The paper noted a concern that opportunity for Scottish-domiciled students could be reduced if no change were made to the fee arrangements in Scotland. The Committee discussed the potential consequences for Scottish-domiciled students, Scottish Universities and, more specifically, the University of Aberdeen of (i) the introduction of higher tuition fees in England, and (ii) the Scottish Executive’s subsequent reaction. The Committee noted that the University’s recruitment and admissions strategy would be responsive to changes in the market. The Committee noted that an institutional response was under preparation for submission to the Executive by 30 May 2005 and would be made available to the Committee at its June meeting. 74 RESEARCH AND COLLABORATION The Committee received an update on collaboration (JPFE04-05:81): Aberdeen Centre for Environmental Sustainability (ACES) The Committee noted that a revised Strategic Research Development Grant bid had been submitted to the Funding Council for ACES. The first stage of the project would be to strengthen collaboration between the three partners; with the second stage possibly involving the relocation of staff to an ACES facility at the Macaulay Institute, depending upon NERC’s future decisions. Rowett Research Institute The Committee noted that discussions were continuing at a number of levels between the University and the Rowett Institute with a view to developing a number of possible models of collaboration. Fisheries Research Services The Committee noted that discussions were continuing with the Fisheries Research Services. A Memorandum of Understanding between the two institutions was under preparation. 75 FINANCE AND RESOURCES 75.1 REVENUE BUDGETS 2005/06 TO 2007/08 The Committee received a progress update on Revenue Budgets 2005/06 to 2007/08 (JPFE04-05:82) and noted that detailed budgets would be brought forward in June 2005 for approval. 75.2 UNIVERSITY OF ABERDEEN SUPERANNUATION & LIFE ASSURANCE SCHEME UPDATE The Committee received an paper on the current status of the UASLAS pension scheme (JPFE04-05:83). The Committee, for its part, approved recommendations: (i) that the overall contribution rate of UASLAS be increased to 23.1% from 1 August 2005; (ii) that the University contribution rate be increased from 13.5% to 17.1% from 1 August 2005; (iii) that Human Resources, in taking forward the Scheme rule amendment with the members, consider an increase to the employee contribution rate along with the introduction of a salary sacrifice scheme; and (iv) that a full option appraisal be taken forward in considering the future of UASLAS. Options under consideration would range from maintaining the current scheme to the possibility of merging with USS. Any increase in salary should be considered against the impact it might have on pension funding, in particular where the increase is ahead of the pension scheme assumptions. A report would be brought back to the Committee in June 2005. 75.3 MANAGEMENT ACCOUNTS FOR THE EIGHT MONTHS ENDING 31 MARCH 2005 The Committee received copies of the Monthly Management Accounts for the eight months ending 31 March 2005. It was noted that the accounts for the period currently showed an historical cost surplus of £3.701 million against a budgeted surplus of £1.312 million, a favourable variance of £2.389 million. 76 ESTATES AND CAPITAL 76.1 INFRASTRUCTURE INVESTMENT AND CASH FLOW PLANNING The Committee received and considered a paper setting out the 10-year infrastructure investment plan for the University and the strategy for financing this investment (JPFE04- 05:84). (see Minute 76.2.1 below) It was noted that projects would continue to be considered via the current approval process, subject to satisfactory business case and risk assessment. Further consideration would be given to planning for the replacement of capital equipment. The Committee, for its part, approved, in principle, the recommendations set out in the paper. 76.2 CAPITAL EXPENDITURE SUB-COMMITTEE The Committee received a report from the Capital Expenditure Sub-Committee meeting, held on 14 April 2005 (JPFE04-05:85), as under: 76.2.1 Infrastructure Investment and Cashflow Planning The Committee noted that the Sub-Committee had, for its part, approved a paper on infrastructure investment and cashflow planning. (see Minute 76.1 above) The institutional infrastructure plan, which had been developed in consultation with the Colleges, identified projects totalling an estimated £217 million over the ten-year period from 2004/05. The paper identified which projects would be funded by SHEFC under the Science Research Infrastructure Fund (SRIF) 3 in 2006/07 – 2007/08 and the Learning and Teaching Infrastructure Fund (LTIF) in 2005/06. The Sub-Committee had agreed that the Central Heating Station would be submitted as a reserve project. The plan proposed the arrangement of additional loan facilities of up to £20 million, to minimise borrowing costs through consolidation with current loans. The proposed level of borrowing would be relatively low for a University of this size, and would allow flexibility to be retained. The Sub-Committee had noted the assumptions on which the plan had been based and recognised that any change in these would be likely to result in either (a) projects being postponed or (b) an increased borrowing requirement. 76.2.2 Capital Programme 2004/05 The Committee noted that the Sub-Committee had received a report on capital expenditure for the period ending 31 March 2005 and had noted that, although the timing of som e projects had changed, there were no major issues. The Sub-Committee had also received a summary report showing funding sources against budgets and actual expenditure to date in order to highlight any potential variances. 76.2.3 SHEFC Further Allocation of Additional Capital Funds The Committee noted that SHEFC had recently allocated the University additional funds of £418,500 to support the modernisation of its teaching infrastructure. The funding would be used for works in the William Guild Building. 76.2.4 Health Sciences Enterprise Unit The Committee noted that discussions with Scottish Enterprise Grampian were ongoing regarding the proposed Health Services Enterprise Unit at the Foresterhill Site. 76.2.5 Project Board Reports The Committee was informed that the Sub-Committee had received Project Board Reports and noted that the Student Centred Facility, Marischal College, Cruickshank Building and Institute of Applied Health Sciences (IAHS) were all progressing, some ahead of programme and budget. The principal points reported in relation to other projects were noted as follows: - Marischal College The Committee noted that a revised planning application had been submitted for the redevelopment of Marischal College. It was anticipated that Aberdeen City Council would approve its accommodation strategy in June 2005. Education Relocation The Committee noted that the refurbishment of the MacRobert Building was behind programme but remained within budget. Plans were in place to commence the decant of the Hilton site in early July, for completion during August 2005. It was noted that, in January 2005, Aberdeen City Council Planning Committee had deferred consideration of the planning application for the Hilton Site. A revised scheme, which went some way to addressing their concerns, would be submitted by the developer. Negotiations regarding the sale financial settlement were ongoing. Sports Facilities The Committee noted that the University was pressing to formalise 30 June 2005 as the deadline date for the Stage 2 bid to Sportscotland. An external project manager had been appointed to take the project forward and manage the development stage. Institute of Applied Health Sciences 2 The Committee noted that construction work on the Institute of Applied Health Sciences 2 was scheduled to start on 3 May 2005. Student Accommodation The Committee noted that the missive had been completed on the Dunbar Site and the purchaser was required to lodge a planning application in May 2005. The feasibility study for Crombie Johnston was progressing. Old Aberdeen Town House The Committee noted that the Town House project was significantly behind programme, and that this would have budget implications. Investigations were underway with the City Council to ascertain the extent of the delay and to understand the reasons for it. Assurances would be sought that the completion date would not slip any further and that budget issues would be addressed. Zoology Building The Committee noted that, due to unforeseen asbestos-removal work, the project was four weeks behind schedule. It was not anticipated that the completion date of the project would be adversely affected. 77 RISK MANAGEMENT COMMITTEE REMIT AND COMPOSITION The Committee received and approved the updated remit and composition of the Risk Management Committee (JPFE04-05:86), following an internal audit recommendation to expand the remit to identify clearly the role of the Committee. 78 INVESTMENT COMMITTEE REPORT The Committee received, for information, a brief summary on the Investment Committee meeting held on 15 March 2005 (JPFE04-05:87). 79 OPERATIONAL PLAN 2005/06 The Committee noted that the updated Operational Plan was now available at www.abdn.ac.uk/admin/operational-plan.shtml, or on request from the Court and Planning Office. 80 UNDERGRADUATE RECRUITMENT REPORT The Committee received, for information, a report on Undergraduate and Professional Graduate Diploma in Education (PGDE) admissions for 2005 entry as at 25 April 2005 (JPFE04-05:88). 81 POSTGRADUATE ADMISSIONS REPORT The Committee received, for information, a report on Postgraduate admissions as at 1 April 2005 (JPFE04-05:89). 82 FULL ECONOMIC COSTING The Committee received, for information, a paper on the allocation of additional funding under the full economic costing methodology for research (JPFE04-05:90). The University had been allocated £972,000 for the year April 2005 to March 2006, which would be accounted for as £324,000 in 2004/05 and £648,000 in 2005/06. 83 PAPERS FOR INFORMATION The Committee noted that the following papers were available on request from the Court & Planning Office (ext 2016) (i) UCEA Health and Safety Seminars: UCEA Update 05/02 advertising two seminars on the health and safety responsibilities of Heads of Institution, Chairs of Governing Bodies and Senior Managers, to take place in Edinburgh on 5 May 2005 and in London on 13 May 2005. (ii) SHEFC Corporate Plan 2003-06: Update: SHEFC Circular Letter FE/06/05 updating the Councils’ joint corporate plan. (iii) Equality and Diversity Impact Assessment. (iv) Scottish Executive’s Response to the Lambert Review: A summary of action points from the Scottish Executive’s response to the Lambert Review on Business – University Collaboration Note: The full report was available on request from Research & Innovation (ext 3978/2266). (v) UASLAS Trustees Annual Report, (vi) SHEFC Corporate Plan Update: SHEFC Circular Letter HE/05/05. 84 DATE OF NEXT MEETING The Committee noted that its next meeting would be held on Tuesday, 14 June 2005 at 11.00am. 85 SCHEDULE OF MEETINGS: SESSION 2005-06 The Committee noted its schedule of meetings for session 2005-06, as follows: Tuesday, 4 October 2005 Wednesday, 23 November 2005 Wednesday, 25 January 2006 Tuesday, 7 March 2006 Tuesday, 9 May 2006 Tuesday, 13 June 2006 All meetings would be held from 11.00 am – 12.30 pm in the Court Room. Note by Clerk: The dates for the November and January meetings as identified above differ from those detailed in the main University Committee schedule.
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