Preston College Board Meeting29 March 2012 27 July 2011
Preston College – Board Meeting29 March 2012 27 July 2011
Minutes
BOARD MEETING
PART 2 ITEMS INCLUDED
MINUTES of the meeting held on 29 March 2012
Present:
GovernorsMr D S Connolly Chair
Mr R Bamford
Mrs A J Barton
Mr E Bassa
Miss S Johnson
Mr M Mallam
Mr R Rawkins
Mr P Williams
Dr E H SmithPrincipal and Chief Executive
Mr P FazackerleyStaff Member - Academic
Mrs A RitchieStaff Member - Business
Mr J CawleyStudent Member
Mr J GornallStudent Member
ClerkMr F Lee
Assistant ClerkMrs S Wignall
OfficersMr C WoodVice Principal
Dr J ThompsonAcademic Director
Mrs J E HewittHead of Facilities
Ms G ThorntonHead of Human Resources
Mr C SmithInterim Finance Director
Also AttendingMs H PhillipsAssociate Solicitor, Burnetts
Unable to AttendCllr R Boswell
Dr E Hamilton
Mr P Kennedy
Mr S McManamon
Mr C Speight
A member of the public attended the meeting for Part 1 items only.
PART 1
12/04DECLARATION OF INTEREST
There were no declarations of interest made at this meeting.
12/05MINUTES
The Minutes of the meetings held on 15 December 2011 and 9 February 2012 were accepted as true records and were signed by the Chairman
12/06PRINCIPAL AND CHIEF EXECUTIVE’S REPORT
A report informed the Board on a number of issues that were important to the College and provided Governors with current information on financial matters, the College estate, recruitment, quality and success rates, enrolment and College management restructuring.
Resources
a)Financial Performance
The current financial position of the College had been outlined in detail by the Finance and Property Committee and the report provided a financial overview of performance against a number of Key Performance Indicators and the development of the 2012/13 budget.
b) Campus Development
Pedestrianisation of the courtyard would commence in April/May which would create an impressive space and community walk through for students, staff and visitors and enhance the look of the main campus area.
Employment performance and Resources
c)Contract Review
The contract review project had now reached the stage of formal negotiations with the relevant recognised trades unions. The review was intended to increase the flexibility and productivity of staff to support extending provision to full year, develop commerciality and improving the attractiveness of the curriculum offer.
d)Occupational Health Provision
Hobson Health werenow the external provider of Occupational Health services with effect from January 2012 until July 2014.
e)Executive Leadership Team
Mr C Wood had been appointed Vice Principal - Excellence and Learning and took up the post on 20 February 2012. Mr C Smith had been appointed Executive Director – Resources and would take up his new role on 11 April 2012. The recruitment process for Vice Principal Engagement was underway with interviews scheduled for17 and 18 April 2012.
Excellence and Learning
f)Portfolio Areas
Business planning this year would focus on development of ‘portfolio areas’ not on existing Academies, in order to bring together provision and expertise. The portfolio areas would identify career paths and progression opportunities and include delivery of all levels of provision.
g)Quality and Success Rates
The 2010/2011 national average benchmarks had been released and details were reported. In all areas except one the College equalled, and in a majority of areas, excelled against the national average.
The College had been investigating the use of technology in developing teaching and student support staff, including the use of 3D projectors and IRIS cameras etc. That had been nationally recognised with the LSIS Award for Efficiency through Effective Use of Technology in FE. John Hayes, Minister for FE, Skills and Lifelong Learning presented the Award to the College at a National Ceremony in Westminster on 8 February 2012. A local presentation ceremony took place 23 March 2012 with the Learning and Skills Improvement Service, local businesses, schools, colleges, and the surrounding community. Ben Wallace MP for Lancaster and Wyre, along with the Chairman of LSIS and Chairman of AoC, attended the event.
Higher Education
h)Integrated Quality Enhanced Review
The IQER Summative Review Team had confidence in both the College’s management of its responsibilities regarding HE and the quality of learning opportunities it offered. The College had been successful in securing direct funding for 41 full-time places from September 2012. Edge Hill University were prepared to maintain the existing contact with the College, allocating 15 indirectly funded full-time first year student numbers, however, University of Central Lancashire had withdrawn 43 full-time indirectly funded first year numbers. Taking both the direct and indirect numbers together, the net impact on the College for full-time first year intake was a reduction of 2 student numbers from 2011/2012.
.
Partnership Working
The College was looking to develop and enhance its partnership working and a number of initiatives were currently being considered, including:
i)Baxi Centre of Excellence
Working in partnership with and supporting the setting up of a Baxi Centre of Excellence within the College. Baxi would provide all the equipment and the College provide dedicated space which would be used by Baxi to provide training on the Baxi range of products for up to 20 days per year. The rest of the time, the Centre could be utilised by the College and provide opportunities to develop a range of full cost provision and apprenticeships.
j)Preston Vocational Centre
Discussions had been taking place to ensure a more formal partnership between the College and Preston Vocational Centre. A set of proposals was being developed for report to the Board in July 2012.
k)Weekend College
A proposal for a Weekend College had now been submitted to the Executive Leadership Team and further work was being carried out to ensure viability, in the long term, with a soft launch taking place on 21 April 2012. Provision offered includes dance and body conditioning, home decorating and DIY, personal styling, hair and beauty, IT and cookery.
14-16 Schools Developments
l)At the Board meeting on 9 February 2012, a decision was made not to take forward the option of leading a proposal for a Studio School in Preston. Meetings had now been held with a view towards a collaborative venture between the College, the schools and Preston Vocational Centre to provide alternative provision to meet the needs and interests of young people 13 – 19 in NEET (Not in Education Employment and Training) or with the potential to become disengaged.
The proposal would take into consideration the needs and interests of young people in Preston, the needs of the local labour market and the facilities and skills available within the partnership. Work was currently underway to develop the agreement and cost basis for the delivery of the offer.
Board Meeting - July
m)The Board agreed that the July meeting be moved to Monday 30 July 2012.
12/07RESHAPING THE COLLEGE
The Chairman introduced this item and set out the responsibilities of the Board and those of management in respect of the educational character, mission and oversight of its operations. Legal advice was available at the meeting should the need arise.
a)The Context
The Principal and Chief Executive presented a paper which encapsulated the future vision and ambition of the College. It highlighted the actions required to deliver this, alongside the challengeof a diminishing funding settlement. Thepaper outlined the changes required to ensure the College wasfit for purpose and more able to meet the needs of the individual learner, businesses and the community.
The paper reported that education spending, for the first time, was decreasing in real terms per year. There would be significant decreases for 19+ Further Education and Skills with an emphasis on learner contribution and co-funding together with an overhaul of Higher Education. The new Education Bill allowed new entrants to the market and therefore competition, with the focus on increasing the number of Academies and Free Schools. It also provided increased freedoms and flexibilities withthe Department for Business, Innovation and Skills expecting Colleges to look at becoming more dynamic. That would be achieved through greater strategic governance, developing a wide range of evolving models, including joint models across the post-14 education sector in considering the needs of their local areas.
The paper set out the current position of the College and the proposals for addressing issues which the College faced in the future and the internal changes that would need to be implemented to secure a move forward.
The Principal and Chief Executive then made a presentation to the Board on the matters that currently impacted on the College and those that would impact in the future. She set out what the College needed to do by way of a vision for the future, the reasons for that and how the College could deliver on those issues.
At this stage in the meeting the Principal and Chief Executive proposed to set out how the management of the College needed to be reshaped in order to deliver the vision outlined.
The Board resolved to take the next part of the presentation in private and the public present were asked to withdraw.
PART 2
The Principal and Chief Executive outlined the proposed development of portfolio areas and curriculum development, identifying potential growth areas and areas where the College needed to divest provision. In order to move forward she stressed the need for both cultural and structural change, the need to deliver by way of business plans which used labour market intelligence, working in partnership with external bodies and an understanding of the funding regimes that could be available to the College. She reported that the recent Ofsted report had shown that the College had not demonstrated sufficient progress over the last 4 years and that the current structure had inhibited progress, and would continue to if unchanged.
She submitted a diagram showing the current staffing structure and a proposed new structure of five departments operating through three sectors: Excellence and Learning; Engagement; and Resources. Those proposals would bring about a reduction in the costs of the management of the three sectors and that would impact on staffing numbers, and details of that were reported to the meeting.
The meeting debated the issue of the College being fit for purpose, acknowledging models proposed by government and the need for the development of a culture that was market driven. The Board was assured that the structure being proposed would deliver the core business of the College and be flexible so as to meet the future needs and the future size of the College. Legal advice was provided on the next steps for adopting a new structure and the processes to be undertaken for consultation with employees, the trade unions, students and stakeholders.
The meeting then returned to an open session.
PART 1
The Principal and Chief Executive reported that in order to remain sustainable, the College needed to fundamentally change its focus from being a responsive provider to a pro-active demand-led, market driven organisation offering a wide portfolio of learning and services to its community. With the changes in funding and eligibility criteria and a focus on the individual or employer now paying for training and support, the provision needed to fully meet their needs and offer real value for money. The College needed to change the way it currently operated, including the ability to operate for 12 months of the year.
At this stage in the meeting the Board was:
i)Minded to adopt the proposals of the Principal and Chief Executive in respect of the focus and education mission of the College, subject to the views of staff, students and stakeholders;
ii)Therefore, also mindedto endorse the proposedreshaping of the College management, as presented to the meeting,also subject to consultation with staff, students and stakeholders, and having regard to the vision expressed in the Principal and Chief Executive’s report;
iii)that the Principal and Chief Executive bringfinal proposals to the next meeting of the Board, taking into account the outcome of the consultations.
The Board resolved to take the next parts of the reshaping reports in privateand the public present were asked to withdraw.
PART 2
b)Staffing Implications
The Board, being minded to reshape the College management, then considered the issues relating to employment legislation and the redundancy policy in place to deliver the outcomes. The meeting debated options set out in the report by the Head of Human Resources and their financial and legal implications. Whilst accepting that the Board needed to have regard to the financial standing of the College the Board agreed that the staffing issues had to be decided as matters of principle.
DECISION
a)that Option C set out in paragraph 20 of the report presented to the meeting be adopted as the method for reducing staff numbers, being the same approach as was used in the 2009/10 Reshaping Exercise as agreed with the Joint Union Body in the College;
b)that the Principal and Chief Executive commence consultations with the relevant recognised trades unions on the revised staffing structure in accordance with the Trade Union and Labour Relations (Consolidation) Act 1992;
c)as part of the on-going contract review, that the Employment Policy Committee commence a review of the Redundancy Scheme;
c)Financial Implications
A report set out the impact of the reshaping on College finances and the affordability of the costs estimated to be incurred in delivering the proposals. Details were also reported on the likely projection for the 2012/13 budget. The Board considered a number of options as to how the College could meet the financial implications of the reshapingin the 2011/12 budget.
DECISION
a)that Option B as set out in the report presented to the meeting be adopted;
b)that the budget timetable for 2012/13 be noted;
c)that the changes to funding within 2012/13, and the ongoing challenges facing the College to deliver the required 1% budgeted surplus be noted;
d)the continuing financial challenges that were likely to impact on the College for 2013/14 be noted.
PART 1
12/08LEGISLATIVE CHANGE – 2012
In December 2011 the Government had set out its programme of work required to take forward the vision for the reform of the Further Education and skills system and the Department of Business, Innovation and Skills had now issued a consultation on:
- proposed changes to the Instrument and Articles of Government;
- Draft Regulations relating to the establishment and dissolution of Corporations; and
- DraftRegulations setting out the prescribed bodies to whom a Corporation can transfer property, rights and liabilities upon dissolution.
The Corporation was asked to respond to the consultation by Thursday 29 March 2012 and therefore the Chairman had responded on behalf of the Board and a copy of his letter was submitted to the meeting.
Under the provisions of the Education Act 2011 the Government had removed a wide range of restrictions and controls on college corporations, putting colleges on a similar footing to charities operating within the independent/private sector. The Secretary of State would no longer have power to amend or revoke a corporation’s instrument and articles. Instead, that power would sit with the corporation, which would be able to change the Instrument and Articles to help it meet the needs of learners, employers and the local community. The legislative requirements for the instrument and articles had now been reduced to a minimum core of essential elements thereby providing a ‘light touch’ governance framework.
The Act also gave corporations, by way of Regulations, the power to dissolve themselves and transfer their property, rights and liabilities to a prescribed list of organisations and bodies for the purposes of delivering education. That would, in the main, relate to mergers and acquisitions. A copy of the draft Regulations were submitted to the meeting.
The changes to the Instrument and Articles of Government would come about by way of a Modification Order which would come into effect on 31 March 2012 and covered the following issues:
- resolution for dissolution
- publish arrangements for obtaining views of staff and students on prescribed matters
- power to modify or replace its instrument and articles
- prohibition of the corporation making changes that would result in the body ceasing to be a charity
- remove the requirement to seek consent in certain matters.
A copy of the proposed Modification Order was submitted to the meeting along with details of the changes made.
In respect of the proposed removal of Instrument 11(Members not to hold interests in matters relating to the Institution) advice has been sought from the College Legal Advisor and it was recommended that the text below be adopted and inserted into the Board’s Governors’ Handbook:
“A member who acquires or holds any interest in property that is held or used for the purpose of the College shall:
(a)disclose to the Corporation the nature and extent of the interest; and;
(b)if present at a meeting of the Corporation, or any of its committees, at which any matter in relation to that property is to be considered, withdraw from the meeting during consideration of the matter and not be counted in the quorum for that part of the meeting during which the member has withdrawn
and in such circumstances the Corporation or committee (as the case may be) shall ensure that the member has no actual or perceived conflict of interest that might result in that member benefiting from a decision of the Corporation or committee in relation to that property.”
In respect of the removal of Instrument 18 (Payment of allowances to Members) the immediate impact of the Modification Order coming into force was that the College could not make any such payments to its Members, i.e. travel and subsistence allowances. Advice has been sought on this matter from BIS and the College’s Legal Advisor and the Board could pass a resolution which would enable the payment of such expenses to continue from 1 April 2012.