BIRMINGHAM CITY UNIVERSITY
BOARD OF GOVERNORS
MINUTES OF THE MEETING HELD ON 25 NOVEMBER 2010
PRESENT:Mr Alex Stephenson (Chair)
Ms Judith Andrews
Mr Jim Beeston
Mr Tony Birch
Mr John Charlton
Mr Vic Cocker
Lord Bruce Grocott
Ms Ann Jones
Mr Joe Kelly
Ms Jenny Ladbrooke (for items 1 – 16.4)
Ms Nicky Lloyd
Ms Jenny Loynton
Mr Andrew Messenger
Mr David Slade (for items 1-13)
Professor David Tidmarsh
IN ATTENDANCE:Ms Christine Abbott, University Secretary
Professor Mary Carswell, Pro-Vice-Chancellor
Mr Tony Felthouse, KPMG (for item 10)
Professor David Maguire, Pro-Vice-Chancellor
Ms Helen Matthews, Assistant University Secretary
Ms Maxine Penlington, Chief Operating Officer
Mr Graham Rhodes, Director of Estates
Mr Richard Spilsbury, Director of Finance and Resource Allocation
Ms Sally Westney, Pro-Vice-Chancellor
APOLOGIES:Professor Stuart Brand
Mr Randal Brew
Mr Tom Thompson
80/10MEMBERSHIP
The Chairman welcomed Ms Ann Jones to her first meeting of the Board following her appointment as a co-opted member in July 2010.
The University Secretary invited members to consider the re-appointment of Mr Jim Beeston, Mr John Charlton and Ms Nicky Lloyd as independent members of the Board of Governors with effect from 1 April 2011. The three members concerned withdrew from consideration of the proposal, which was passed with the unanimous support of all other Board members present.
RESOLVED:
That Mr Jim Beeston, Mr John Charlton and Ms Nicky Lloyd be re-appointed as independent members of the Board of Governors for a four-year term of office commencing on 1 April 2011 and concluding on 31 March 2015.
81/10MINUTES OF THE MEETING HELD ON 29 JULY 2010 (BGOV.10.11.01)
Minutes of the meeting held on 29 July 2010 were received.
RESOLVED:
That the Minutes of the meeting held on 29 July 2010 be confirmed and signed as an accurate record.
82/10*CONFIDENTIAL MINUTE
83/10REPORT OF THE MEETING OF SENATE – QUALITY ASSURANCE AGENCY (QAA) AUDIT
Arising from Minute 77/10, the Vice-Chancellor reported that the draft findings of the recent QAA institutional audit of the University had confirmed confidence in both the management of academic standards and the quality of the learning opportunities available to students. Five areas of good practice had been identified by the audit team, three of which related directly to the student experience and partnerships with students. Members agreed that the outcome was extremely encouraging for the University and extended their congratulations to the Pro-Vice-Chancellor, Professor Mary Carswell, and her colleagues on an outstanding result.
84/10OPERATIONAL KEY PERFORMANCE INDICATORS (BGOV.10.11.02)
A paper was received that invited the Board to consider the routine KPI report for November 2010.
The colour-coded summative assessment for Student Population had changed from amber to green in recognition of the fact that all targets for the current academic year had been met. The recorded student population at 5 November 2010 was 2% higher than at the same point in 2009, while current application levels for 2011 represented a 26% increase on applications received at the equivalent point in 2009.
The decrease in the level of satisfaction recorded in the 2010 National Student Survey (NSS) would impact upon the University’s position in national league tables and the indicator associated with Student Experience had, therefore,changed from amber to red. It was anticipated that the 2011 NSS result would improve as a result of the measures already taken throughout the institution to address issues of student dissatisfaction but further work was still required. In common with other institutions, the University had seen an increase in the number of formal complaints submitted by students but it was important to note that very few of thecomplaints taken forward by the University’s students to the Office of the Independent Adjudicator had been upheld.
The indicator associated with Business Systems remained amber to reflect the fact that although considerable progress had been made, further improvements were required in some areas.
The Board was advised that Ms Beverley Nielson had been appointed as the University’s new Director of Employer Engagement and would be talking to the Board about her plans in due course.
The University’s Research, Innovation and Enterprise Services department had become the latest Service Department to successfully achieve Investors in People Accreditation.
85/10*CONFIDENTIAL MINUTE
86/10*CONFIDENTIAL MINUTE
87/10ANNUAL KEY PERFORMANCE INDICATOR BENCHMARKING EXERCISE (BGOV.10.11.05)
The Chief Operating Officer presented a paper that invited the Board to consider the set of annual performance indicators for 2009/10. The indicators showed the University’s performance compared to the HE sector as a whole and to that of other post-1992 institutions.
Data relating to all 50 key performance indicators identified by the Board had been collated and was available for members on request, but the report at BGOV.10.11.05 considered those indicators that were most closely linked to the University’s strategic objectives. The comparative analysis at Annex 1 illustrated that the University had performed well overall, particularly in areas associated with financial performance, the student population and research. The more challenging areas included student experience and part-time student recruitment. In response to the significant reduction in the part-time student market, the University would be seeking to develop new provision or to offer its established provision in a more flexible way to meet changing demands. Like many institutions, the University had also seen a sharp fall in graduate employment due to the economic climate, although the proportion of former students entering graduate-level employment was above average for the sector. The proportion of permanent academic staff within the University aged 55 or over exceeded the sector average, but was being addressed by faculty and central department Voluntary Severance Schemes and recruitment programmes.
88/10ANNUAL REPORT OF THE AUDIT COMMITTEE FOR 2009/10 (BGOV.10.11.06)
A paper was received that reported on the work of the Audit Committee during 2009/10 and sought the Board’s approval of the full statement of internal control to be made in the 2009/10 audited accounts.
RESOLVED:
That the full statement of internal control to be made in the 2009/10 audited accounts be approved.
89/10ANNUAL AUDIT PLAN FOR 2010/11 (BGOV.10.11.07)
The Board considered the proposed Internal Audit Plan for 2010/11 prepared by Grant Thornton, a draft version of which had been considered by the Directorate and the Audit Committee.
The Board approved the Plan at Annex 1, noting that it would be kept under review throughout the year so that any significant areas of risk identified by management could be incorporated. Noting that student satisfaction did not feature in the Plan despite being a key risk on the University’s Strategic Risk Register, the Board was assured that the scheduled audit work for the year would encompass student satisfaction issues.
The 2009/10 Plan had included an assessment of the key risks that could have impacted on the Board’s ability to make a timely and informed decision about the new campus. In view of the changes consequent upon the HS2 announcement, it was suggested that a similar piece of work might be undertaken to consider any revised proposals that the Board was asked to approve. Bearing in mind the increased risk of student debt in the future, it was suggested that the mechanisms in place to monitor and control student debt should be considered by Internal Audit in the near future. The Board asked the Executive, in conjunction with the Audit Committee, to consider how these subjects could be incorporated in the 2010/11 Audit Plan.
RESOLVED:
That the Internal Audit Plan for 2010/11 based on an input of 113 days of internal audit resource be approved subject to addressing the points identified in Minute 89/10 above.
90/10FINANCIAL STATEMENTS FOR 2009/10 (BGOV.10.11.08)
Mr Tony Felthouse from the External Audit Division of KPMG LLP was in attendance for this item. KPMG confirmed that the audit process had gone well, that no high priority areas of concern had been identified during the course of their audit of the University’s accounts for the year ended 31 July 2010 and that internal financial controls remained strong.
BGOV.10.11.08 invited the Board to approve the Financial Statements for 2009/10 at Annex 1 and included the following supporting documents:
KPMG LLP Management Report for year ended 31 July 2010;
Letter of assurance from the Vice-Chancellor to KPMG;
Summaries of returns made in respect of ISA 550 (related party transactions), ISA 250 (consideration of law and regulations) and ISA 240 (consideration of fraud)
Summary of subsidiaries’ activities;
Proposed letter of financial support to ABBE Limited, the Birmingham School of Acting, the Technology Innovation Centre, Technology Innovation Centre Commercial Limited and BCU Enterprise Limited.
KPMG’s Management Report had been considered in detail by both the Audit and the Finance Committees and contained relatively few audit differences or observations. No fundamental or significant weaknesses had been identified, with the two medium and four low priority recommendations being made to address relatively minor control issues or future developments.
The Finance Committee had also considered the consolidated Financial Statements and the individual sets of audited accounts for the University’s operating subsidiary companies. The Board was advised that the expenditure incurred in relation to the New Canal Street Site had not been written down in the consolidated Statements since the University currently remained both obliged, and entitled, by the Development Agreement to build out the site. The Statements showed an increase of approximately £1.8m in the net FRS 17 pension liability. This was attributable to an overall actuarial loss of £5.6m due to the more prudent discount rate and mortality rates which had more than offset the actuarial gain due to the change in the inflation index from RPI to CPI.
RESOLVED:
90.1That letters of financial support be issued to the Boards of Directors of ABBE Limited, the Birmingham School of Acting, the Technology Innovation Centre, Technology Innovation Centre Commercial and BCU Enterprise Limited as proposed in Annex 9;
90.2That the Financial Statements for 2009/10 be approved;
90.3That the Chairman, the Vice-Chancellor and the Director of Finance and Resource Allocation be authorised to sign the Financial Statements for 2009/10 on behalf of the Board.
91/10CORPORATE PLANNING STATEMENT FOR 2010/11 AND REVIEW OF ACHIEVEMENTS IN 2009/10 (BGOV.10.11.09)
The Chief Operating Officer presented a paper that reported on achievements against the 2009/10 Corporate Planning Statement and sought the Board’s support for the 2010/11 Annual Operating Plan.
The Annual Corporate Objectives for 2010/11 fell into five main priority areas - student experience, employability, academic quality, income diversification and financial stability – and were designed to equip the University to respond to changes in the external HE environment. Members were advised that the Objectives provided a high-level framework only but encompassed a wide range of issues including innovation in research and teaching and staff development.
RESOLVED:
That the proposed Annual Operating Plan for 2010/11 included within the Corporate Planning Statement at Annex 1 be approved.
92/10IMPLICATIONS OF THE NEW HEFCE FINANCIAL MEMORANDUM AND ACTIONS REQUIRED (BGOV.10.11.10)
The University Secretary presented a paper that summarised the changes to the HEFCE Financial Memorandum 2010 and the actions required by institutions. The longer-term implications for HEIs arising from the changes were also considered, including the potential for an increased and more demanding regulatory framework.
It was agreed that the Foreword to the Financial Memorandum would be distributed to members of the Board for information subsequent to the meeting and appended to the Minutes.
93/10UNIVERSITY CARBON MANAGEMENT PLAN (BGOV.10.11.11)
A paper was received that invited the Board to approve a proposed Carbon Management Plan for the University. The Plan was required by HEFCE and, once approved, would ensure that the University adopted a structured approach to achieving its carbon reduction targets.
RESOLVED:
That, on the basis of the Executive Summary at Annex 1 to BGOV.10.11.11, the University’s Carbon Management Plan be approved.
94/10CHAIRMAN’S BUSINESS
The Chairman had attended the Committee of University Chairs (CUC) Plenary Meeting in October 2010. Attention had focussed primarily on the Government’s Comprehensive Spending Review and the recommendations arising from the Browne Review of Higher Education Funding and Student Finance, although consideration had also been given to the future role of the CUC and opportunities for its improved effectiveness. A working group had been established to discuss the latter issue in more detail and would report its findings to a future Plenary Meeting.
An invitation had been extended to the Chair of the Board of Governors of Coventry University to attend the next informal meeting of local Chairs, which was scheduled to take place in January 2011.
95/10*CONFIDENTIAL MINUTE
96/10*CONFIDENTIAL MINUTE
97/10REPORT OF THE AUDIT COMMITTEE MEETING HELD ON 3 NOVEMBER 2010 (BGOV.10.11.14)
The Director of Finance and Resource Allocation presented a report of the business transacted by the Audit Committee at its meeting on 3 November 2010.
98/10REPORT OF THE MEETING OF THE FINANCE COMMITTEE HELD ON 8 NOVEMBER 2010 (BGOV.10.11.15)
The Chair of the Finance Committee presented a report of the business conducted by the Committee at its meeting on 8 November 2010.
99/10ANNUAL REPORT OF THE TRUSTEE COMMITTEE FOR 2009/10 (BGOV.10.11.16)
The Chair of the Trustee Committee presented a paper that reported on the activities of the Committee in 2009/10.
The Committee was responsible for overseeing the policy for the use of sums made available for the assistance of students. Over 1,400 applications for funds had been made during the year and it was anticipated that this figure would continue to rise in the future, making the job of allocating monies increasingly difficult.
The Committee had commissioned a review of its Investment Advice in 2009/10 and would be receiving a report of the outcome in March 2011. This report would form the basis of a recommendation for the provision of future investment advice.
100/10ANNUAL REPORT OF THE COMMITTEE FOR THE CONFERMENT OF HONORARY AWARDS (BGOV.10.11.17)
The University Secretary presented the report of the Committee for the Conferment of Honorary Awards for 2010.
Members were advised that the honorary award recipient to be presented at the ceremony for the Faculty of Education, Law and Social Sciences on the afternoon of 17 February had still to be confirmed. Details would be provided to the Board in due course.
101/10REPORT OF THE MEETING OF SENATE HELD ON 15 SEPTEMBER 2010 (BGOV.10.11.18)
A report was received of the matters considered, decisions taken and information received by Senate at its meeting held on 15 September 2010.
102/10REPORT OF THE APPLICATION OF THE SEAL (BGOV.10.11.19)
The Board received a report of the application of the seal since its last meeting in July 2010 and noted that it had been applied on thirteen occasions as follows:
(i)On 29 July 2010 to a Scheme Apportionment Agreement between the Technology Innovation Centre, University Superannuation Scheme Limited and Birmingham City University.
(ii)On 29 July 2010 to a Deed of Variation relating to a Deed of Limited Partnership dated 20 December 2002 in respect of Advantage Growth Fund Limited Partnership.
(iii)On 4 August 2010 to a sub-underlease relating to Unit 1 on Level 3 of The Hub, Millennium Point, Jennens Road, Birmingham between Millennium Point Property Limited (1) and Birmingham City University (2).
(iv)On 16 September 2010 to an External Doors Sub-Contractor to Employer Collateral to a Sub-Contract relating to a development at City North Sports Centre, Perry Barr, Birmingham.
(v)On 28 October 2010 to a Development Agreement relating to sale, development and letting of property at Cardigan Street and Curzon Street, Eastside, Birmingham between Advantage West Midlands as owner and Birmingham City University as developer.
(vi)On 28 October 2010 to an Agreement for Surrender of Lease relating to land adjoining Cardigan Street, Eastside, Birmingham between Advantage West Midlands as landlord and Birmingham City University as tenant.
(vii)On 28 October 2010 to a Sub sub-underlease relating to premises known as land at Cardigan Street and Curzon Street between Advantage West Midlands as landlord and Birmingham City University as tenant.
(viii)On 17 November 2010 to a Licence to assign between Millennium Point Property Limited (landlord), Advantage West Midlands (tenant) and Birmingham City University (assignee) relating to premises known as Unit 2 on the Second Floor of the Hub, Millennium Point, Jennens Road, Birmingham (now known as Unit 2, Level 4).
(ix)On 17 November 2010 to an Assignment between Advantage West Midlands (assignor) and Birmingham City University (assignee) relating to leasehold premises known as the Second Floor of the Hub, Millennium Point, Jennens Road, Birmingham (now known as Unit 2, Level 4).
(x)On 17 November 2010 to a Licence to assign between Millennium Point Property Limited (landlord), Advantage West Midlands (tenant) and Birmingham City University (assignee) relating to premises known as the Second Floor of the Hub, Millennium Point, Jennens Road, Birmingham (now known as Unit 3, Level 4).
(xi)On 17 November 2010 to an Assignment between Advantage West Midlands (assignor) and Birmingham City University (assignee) relating to leasehold premises known as the Second Floor of the Hub, Millennium Point, Jennens Road, Birmingham (now known as Unit 3, Level 4).
(xii)On 17 November 2010 to a Licence to assign between Millennium Point Property Limited (landlord), Advantage West Midlands (tenant) and Birmingham City University (assignee) relating to premises known as the First Floor of the Hub, Millennium Point, Jennens Road, Birmingham (now known as Unit 3, Level 3).
(xiii)On 17 November 2010 to an Assignment between Advantage West Midlands (assignor) and Birmingham City University (assignee) relating to leasehold premises known as the First Floor of the Hub, Millennium Point, Jennens Road, Birmingham (now known as Unit 3, Level 3).
103/10DATES OF MEETINGS IN 2011
Meetings of the Board in 2011 would be held on the following dates:
Thursday 27 January at 1.00 pm (half-day event)
Thursday 24 March at 4.00 pm
Thursday 23 June/Friday 24 June (pm and am) (Board Awayday)
Thursday 28 July at 4.00 pm
Thursday 29 November at 4.00 pm
Chairman:......
Date:......
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* Confidential Minute