Minutes of the 268th Meeting of the University Council held on 19 July 2000.
Members:
Dr. J K Green (Chair); Dr. C.J. Backhouse; Mr. H. Barber; Mr. G. Barfield (ab); Mr. J.B.C. Blood; Mr. R.H. Boissier; Professor W.R. Bowman; Dr. T.G.M. Brooks; Professor L.M. Cantor; Sir Bryan Carsberg; Professor J.V. Dawkins; Ms. V. Dhupa; Professor M. Evans; Dr. A.N. Fairbairn; Professor J.P. Feather (ab); Mr. W. Flint (ab); Mr. G.P. Fothergill; Mr. S.J. Gorton; Mr. D. Gough (ab); Mr. S. Grey; Professor C. Hanson (ab); Miss J.E.L. Harvatt (ab); Mr. P.J.K. Haslehurst; Dr. R.A. Haskins; Dr. T. Higgins; Professor J.R. Hough (ab); Professor T.J. Kavanagh (ab); Dr. G. Mason; Mr. E.O. Maxwell (ab); Professor R. McCaffer; Mr. A. Milne; Mr. M. Moghal; Mr. W.M. Moss (ab); Dr P.N. Murgatroyd; Dr. L.R. Mustoe; Mrs. W.M. Pilkington (ab); Dr. C. Reddrop (ab); Professor I. Reid; Sir Denis Rooke; Dr. J.F. Rowland; Dr. A.W. Rudge (ab); Ven. I. Stanes; Mrs. J.A.M. Strong; Mr. D.R.F. Walker; Professor D.J. Wallace; Ms E. Wallace (ab); Mr. C.S. Woodruff.
In attendance: Ms. H. Baldwin; Professor N.A. Halliwell; Mrs F.M. Hannah; Professor I.C. Morison; Mr H M Pearson; Mr. J.M. Town.
Apologies for absence were received from: Professor J.P. Feather; Professor Hanson; Dr A.W. Rudge; Miss J.E.L. Harvatt; Dr. C. Reddrop; Professor J.R.Hough; Professor T.J Kavanagh; Mr E.O. Maxwell; Mr W.M. Moss.
It was RESOLVED to confirm the Minutes of the 266th Meeting of Council held on 5 April 2000 [COUN00-M3].
Minute 00/28.2 Resources and Planning Committee.
It was reported that a member had estimated the cost of running re-examinations in September to be ten times the fees obtained. The Registrar queried the basis of the estimates since a detailed costing exercise had not been undertaken. It was accepted that the costs were an inevitable consequence of the requirement to offer re-examinations to students.
00/55 Vice-Chancellor's Business
The Vice-Chancellor reported on the following matters:
.1 Phased implementation of the new financial system would commence in August. There were still some reservations about the ability of Oracle Financials to deliver the complete system. A member pointed out that this might result in greater costs being incurred at departmental level but the Vice-Chancellor assured members that the University would attempt to seek some redress from the company.
.2 A successful meeting with representatives of Charnwood Borough Council had taken place and a Liaison Committee would be established to deal with issues of concern which might arise.
.3 The Greenaway Report on top-up fees had been published recently. No response from the University was required but it was likely to form part of the wider discussion on the issue of top-up fees. The report played down the potential of contributions by employers to top-up fees. There was no market analysis of the ability of students or their families to meet fees. Parallels with the US system were made but the report possibly underestimated the impact of the extensive endowments which formed part of the US system.
.4 Details of the forthcoming spending review were emerging. The Government had announced additional funding of £1 billion in capital grants in 2002, partly funded by the Wellcome Foundation. Additional funding had also been announced for expenditure on staff, widening access and participation and the Reach Out initiative. There had been some indication that the annual cuts in core funding might end but this had yet to be confirmed.
.5 Congratulations were extended to Professor R McCaffer, Mr M Brown, Dr A Mumford, Mr P Allison and Mrs M Cunningham for the successful broadcast of the recent graduation ceremonies on the web. Professor M Streat and Professor J McGuirk were congratulated on their appointment as Fellows of the Royal Academy of Engineering. The Vice Chancellor also congratulated the Students Union on an excellent year; they had raised a record level of £235K for rag and increased the number of volunteers for Community Action to 270. In sport the men's and women's teams had become UK overall sports champions for the 20th and 22nd consecutive years respectively. Carolyn Reid had been selected to swim in the 2000 Paralympics. On a final note the Vice-Chancellor reported on the excellent results of the recent Ofsted inspection of the LSU Nursery.
.1 Council received a paper from the Bursar and Finance Officer, presenting budget proposals for 2000/01. In introducing the paper, the Bursar explained that the budget target for 1999/00 was likely to be missed by about £0.75M. There were various reasons for this including over-optimistic forecasts of earned income and increased costs incurred to maintain performance in advance of the RAE. In considering the budget for 2000/01, the Bursar reported that the Government's higher education funding regime would impose a further significant squeeze. Grants and tuition fees had increased by 1.5% but pay was increasing at about 5% per annum at the time of writing. Investment income was falling as cash was spent on capital projects. On the positive side, the successful bids for student numbers, a late adjustment in funding from the Teacher Training Agency, the improvement in overseas student recruitment and the increases in new research grants and contracts would all help the University's financial position.
The Bursar outlined the budget process which had been followed. The initial budget had shown a deficit of £2,220,000 but, following meetings of Budgetary Review Group, discussions with the Heads of Departments and the Deans and the meeting of Resources and Planning Committee, revisions were made resulting in a £2M surplus as required by Council's Financial Strategy. The Resources and Planning Committee had recommended that half this sum be spent on a re-structuring programme primarily to support areas in structural deficit. £200K of this sum would be used to support the Engineering Scholarship Scheme approved by Council in February. The Bursar also alerted Council of the need to undertake further planning to ensure financial stability in the medium-term.
The Bursar and Finance Officer then introduced the financial forecasts which would be submitted to the Higher Education Funding Council (HEFCE). These were based on the realisation of targets in the Strategic Plan, updated to take account of actual data in the current year, and showed a significant increase in surplus on the Income and Expenditure account over the period to 2003/04. Central to this healthy position was the continuation of the increase in research grants and contracts and in overseas student admissions. The depreciation charge increased as investment in capital projects increased and the cash flow in 1999/00 and 2000/01 was high due to expenditure in capital projects.
There was a brief discussion on overhead recovery on research grant and contract income. The University was keen to maximise recovery of overheads, which were currently running at about 20%, since this would generate income which would go directly into departmental budgets.
In response to a member of Council, the Bursar indicated that the return on the investment for RAE was unknown. Top priority for HEFCE was that the funding to 5 and 5* rated departments should be protected. In any event, the investment is crucial to protecting the University's position. There could also be returns in enhanced grant and contract income.
Council RESOLVED TO APPROVE the budget for 2000/01 with the transfer to the Building Fund of a planned surplus of £1M after restructuring.
COUN00-P33 & P33 Supplementary
.2 Council considered and noted comments from Estates Management Committee on the implications of the 2000/01 budget allocations. The specific areas of concern were the need to complete work required to comply with the Disability Discrimination Act and the occupancy costs of major new capital projects. In response to a member of Council, the Vice-Chancellor indicated that discussions on the running costs of the English Institute of Sport were ongoing, in preparation for the Stage 2 Bid for Lottery Funding.
COUN00-P34
COUN00-P35
Council received a report of the discussions at Treasurer's Committee on 18 June. The Treasurer reminded members that Treasurer's Committee was not responsible for producing the budget but would comment on the proposals. The Committee had noted the impact of the continued cuts but remained of the view that imbalances between income and expenditure should not be met from reserves. The financial position of the University was good and efforts being made to increase income were noted. The Committee noted that re-structuring required consideration but the value of human resources must be recognised. The Committee had considered whether the financial strategy agreed by Council in 1998 was still relevant. It had agreed that the policy should remain unchanged but was prepared to accept the decision to divert £1million of the surplus in 2000/01 to re-structuring
COUN00-P36
.1 The Bursar gave a progress report on the Capital Programme and summarised major changes since the last meeting. Although Council was not required to make any decisions at this stage, a special meeting of Council might be necessary to consider moving the Swimming Pool Project to Stage E if the Stage 2 Lottery bid was successful.
In answer to a specific query, the Director of Estates indicated that the Phase 4 of the Centre Site Heating Main Replacement was the final mains replacement planned and that consideration would be given to a distributed mains system.
The financial implications of the capital programme were considered and a number of members expressed concern that the proposed extent and rate of investment in capital projects could result in financial difficulties in due course. The Bursar pointed out that the projected burden of debt only exceeded the recommended level of 4% in 2001/2 and that this was marginal and would only occur if all projects were realised. Similarly the current assets: current liabilities ratio only exceeded the minimum target of 150% in one year, 2000/01. Council had accepted a strategy to invest in capital projects and if this was successful, there would be substantial returns to the University which would feed back into academic departments. In support of this argument a member informed Council that since it had accepted the arguments to invest in the Engineering Building, research grant and contract income in the Faculty had risen from £8M to £10M and 120 additional student numbers had been obtained.
A member of Council expressed the view that investment in Sports buildings was not a core activity of the University but other members disagreed. It was accepted that Council had adopted a planned investment strategy which it must continually review.
.2 Council considered a paper from the Chairman of the Engineering Building Steering Group concerning a significant cost over-run on the project. The Chairman of the Steering Group explained that despite the managerial controls that had been put in place, the over-run on costing of £710,000 had been reported only in June as the project approached completion. Since the project only had two months to run, cancellation of any outstanding items would carry substantial penalties and would also prejudice completion of the project. The Steering Group had already taken advantage of savings totalling over £1M since the project was approved, in order to remain in budget and no further savings were considered possible.
Members noted that the University was very unhappy with the way in which the increases had been reported and the underlying quality of the cost control process provided by its external advisers. After taking legal advice, it would explore all appropriate avenues to minimise the final cost of the project but this would take time to resolve.
Council noted that the increased budget would not impact significantly on the remainder of the capital programme. Members were particularly keen to ensure that the Centre Site Refurbishment was not delayed as a result and it noted that the Dean of Science was in the final stages of discussion with the Director of Estates to define the project.
In response to a member of Council, the Director of Estates indicated that the cuts in budget made for the S Building were in the detail and had been discussed and agreed with the department concerned.
Whilst expressing its deep disappointment at the cost over-run, Council felt that the budget increase was unavoidable. Accordingly it RESOLVED TO APPROVE an increase in the budget for the Engineering Project by £800,000 to £16,484,000. Council also expressed its appreciation to the Steering Group for its efforts.
COUN00-P37
Council received a report summarising progress in establishing a Development Programme to undertake fund raising for the University. The Deputy Chair of Council explained that he wished to enlist the support of Council in this effort. Members were asked to pass details of possible contacts to Mr J Walker in the Development Office. The Development Programme had charitable status and information packs were available giving information about donations, Inland Revenue regulations etc.
The Vice-Chancellor thanked the Deputy Chair of Council for his efforts. The success to date of the Development Office had been substantial and it was hoped that members of Council would fully support the University's fund raising efforts.
.1 Council received a progress report from the Working Group. This included a preliminary definition of the role of Council. Members were asked to send any comments to the Registrar.
COUN00-P38
.2 Council considered proposals from the Nominating Committee on the size of Council. The Registrar explained that the Dearing Report had recommended a substantial reduction in the size of governing bodies. Loughborough had been relatively slow to implement this and many other universities had already reduced the size of their governing bodies. One of the recommendations of the HEFCE Audit visit had been that the University implement this as soon as possible.
Factors influencing the proposals put forward by the Nominating Committee were the need to ensure a clear lay majority, and the need to select members on the basis of merit and skills. The proposals recommended a reduction in the membership to 30 with lay members constituting 63% of the total.
During discussion the following points were made:
It was RESOLVED to approve a reduction in the size of Council from 49 to 30 members by a vote of 25 to 3 with 4 abstentions and to request that the Nominating Committee bring forward proposals on membership of Council to the next meeting.
COUN00-P39
Mr H Barber left the meeting at this point.
COUN00-P40
Council received a report of the Meeting of Performance Monitoring Group held on 27 June. Actions taken in relation to overseas student recruitment, the development of research schools, the Faculties, HEROBAC, Burleigh Court and staff activity data were noted.
COUN00-P41
It was RESOLVED to approve proposals from the Chair of Resources and Planning Committee for the naming of buildings.
COUN00-P42
Council considered proposals to amend the Charter and Statutes to replace "Schools of Studies" and "Boards of Studies" by "Faculties" and "Faculty Boards". A member suggested that the proposed amendments did not cover all references to Schools of Studies and Faculty Boards within the current Charter and Statutes. It was agreed that the proposals be amended to include "and any other references within the Charter and Statutes" to overcome this. Another member suggested that the proposals violated the 14 day rule in paragraph 25 of the Charter. In accordance with paragraph 25, notification of the meeting had been given at the last Council and on previous occasions. Notification of the proposed changes had been given to Council at its 264th meeting on 16 February 2000.
It was RESOLVED (by 26 votes to 1 with 4 abstentions) to approve a special resolution to recommend amendments to the Charter, Statutes XII, XIV, XVI, XXV and any other references within the Charter and Statutes.
COUN00-P43
It was RESOLVED to approve the recommendations of the Nominating Committee on the membership of Council for the period 1 August 2000 to 31 July 2003.
COUN00-P44
It was RESOLVED to approve the Operational Plan for 2000/01.
COUN00-P45
It was RESOLVED to approve the following recommendations referred by the Audit Committee at its meeting on 8 June 2000:
(a) Appointment of Internal Auditors
(b) Appointment of External Auditors
.1 It was RESOLVED to approve recommendations referred by the Resources and Planning Committee at its meeting on 9 June:
Validation Fees for Peterborough Regional College and Stamford College.
COUN00-P46
.2 It was RESOLVED to ratify the action of the Chair of Council on the recommendation of the Chair of Resources and Planning in approving outstanding tuition fees for 2000/01.
COUN00-P47
.3 It was RESOLVED to approve a recommendation from the Chair of Resources and Planning Committee, on the advice of Estates Management Committee, for disposal of a small piece of land subject to agreement on a suitable price and boundary and title.
COUN00-P48
4 It was RESOLVED to approve the strategy, implementation plan and timetable for the costing and pricing initiative and the transparency review as previously discussed by Resources and Planning Committee.
A member of Council requested assurances that the proposals would not impose an additional level of bureaucracy which would impede academic staff in the preparation of grant proposals. Council was reassured that an effective service for checking and approving grant proposals would be offered.
COUN00-P49
COUN00-P50
It was RESOLVED to approve recommendations from Treasurer's Committee relating to travelling and subsistence rates for financial year 2000/01.
COUN00-P51
It was RESOLVED to approve the following recommendations referred by Senate at its 334th meeting on 28 June 2000:
.1 Programme Proposals
(a) New programmes for introduction in the 2000/01 session:
International Foundation Programme in Science and Engineering
MSc International Management
Professional Diploma in Management (Thomas Cook)
(b) New programme for introduction in the 2001/02 session:
MSc International Relations of the European Union
(c) Revised programme titles:
BSc Logistics to BSc Logistics and Transport Management (from 2000/01)
BSc Social Policy to BSc Social Policy and Social Issues (from 2002/03)
(d) Discontinuation of the following programme:
MA European Leisure Studies (last intake 1999/2000).
.2 Amendments to Ordinance VI (with immediate effect).
.3 Establishment of a Centre for Environmental Studies within the Department of Chemistry with immediate effect.
.4 The establishment of new prizes.
.1 It was RESOLVED to ratify the action of the Chair of Council in approving the following changes to the scheme for the award of the Loughborough University Medal:
(a) to amend the document outlining the scheme for the medal to include former employees amongst those eligible for the award of the medal.
(b) to allow, on an exceptional basis, the award of four medals in 1999/2000, rather than the maximum of three stipulated in the documentation.
.2 It was RESOLVED to ratify the action of the Chair of Council in approving recommendations from the Loughborough University Medal Working Party for Awards to be made at Degree Congregations in 2000.
COUN00-P52
COUN00-P53
.1 The membership of Council for 2000/01 thus far determined was noted.
.2 It was RESOLVED to appoint the Chairs of certain committees for 2000/01
Members were informed that the Chair of Health and Safety Committee was still vacant but it was intended to appoint a Lay member as Chair for the coming academic year.
.3 It was RESOLVED to authorise the Chair to take action on behalf of Council to make appointments to vacancies on Council Committees, Joint Committees of Senate and other bodies to which Council appoints.
COUN00-P54 amended
In accordance with Statute XIII, Paragraph 8, it was RESOLVED to establish the Chairman's Advisory Group as a Committee of Council. The amended paper tabled at the meeting showed the correct membership.
Mrs J Strong left the meeting at this point.
COUN00-P55
It was RESOLVED to ratify the action of the Registrar in affixing the University Seal to the documents listed.
COUN00-P56
Council noted the University Organisation Chart.
COUN00-P57
Council received the Annual Report of the Equal Opportunities Committee for 1999/00.
COUN00-P58
Council received the Annual Report of the Careers Service Advisory Board for 1999/00.
COUN00-P59
Council received a progress report on the Action Plan.
COUN00-P60
Council received a progress report.
The difficulties in re-creating the Calendar were noted but members emphasised the importance of the document being available for the coming academic session.
COUN00-P61
Council received reports from the following Committees:
.1 Audit Committee of 8 June 2000
A member expressed concern that "Knowledge Management" was linked to information services whereas its broader definition encompassed practitioner issues. The Director of DISS indicated that this was in progress.
.2 Health, Safety and Environmental Committee of 14 June 2000
.3 Research Committee of 31 March and 14 June
.4 Residential & Catering Services Committee of 14 March 2000
.5 Resources & Planning Committee of 8 May and 9 June 2000
A member of Council asked that further information be presented in support of statements on the financial performance of departments, institutes and companies. It was accepted that the Performance Monitoring Group and Operations Sub-Committee explored these issues in depth but the Chair of Performance Monitoring Group agreed to provide additional detail for the next meeting.
.6 Senate of 28 June 2000
.7 Treasurers Committee of 28 June 2000
The dates proposed for meetings of Council in 2000/01were noted as follows:
Friday, 20 October 2000 (if required)
Monday, 18 December 2000
Friday, 16 February 2001 (if required)
Friday, 6 April 2001
Wednesday, 18 July 2001
On behalf of Council the Chair thanked the retiring members of Council, Mr Gorton, Ms Harvatt, Professor Hough, Mr Fothergill, Dr Rudge, Professor Feather and Professor Reid for all their efforts on Council. He also asked Mr S Grey to give Council's thanks to the student representatives over the last year.
Friday, 20 October 2000.
Author - Fidelma Hannah
Date - July 2000
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