The Council

COUN02-M3

Minutes of the 286th Meeting of the University Council held on 19 April 2002.

Members:

Sir Bryan Carsberg (Chair); Professor C J Backhouse; Mr J B C Blood; Dr R H Boissier;
Dr T G M Brooks; Dr S Campbell (ab); Dr M J Catton; Ms V Dhupa; Dr M Gilbert; Professor C Hanson (ab); Mr P Harrisson (ab); Mr P J K Haslehurst; Dr T Higgins;
Ms N Honey (ab); Mrs J E Hull; Ms H Jenkinson; Professor T J Kavanagh; Mr E O Maxwell; Professor R McCaffer; Mr M Moghal (ab); Mr D Morris; Mr W M Moss;
Dr P N Murgatroyd (ab); Dr L R Mustoe; Mr J Mutton; Mrs W M Pilkington;
Sir Denis Rooke (ab); Dr J F Rowland; Ven I Stanes; Mrs J A M Strong;
Mrs M C Tomlinson; Mr D R F Walker; Professor D J Wallace; Mr J B White;
Mr C S Woodruff

In attendance:

Professor J L Alty; Professor N A Halliwell; Mr H M Pearson; Professor P H Roberts; Professor H Thomason; Mr J M Town; Miss M T Whyte; Ms H E Baldwin

Apologies for absence were received from:

Professor C Hanson; Mr P Harrisson; Ms N Honey; Mr M Moghal; Dr P N Murgatroyd;
Sir Denis Rooke

02/25 Minutes

It was RESOLVED to confirm the Minutes of the 284th Meeting of the Council held on 20 February 2002 [COUN02-M1].

02/26 Chairman's Business

.1 The death of the Visitor, Sir Frank Cooper was noted with sadness. Sir Frank had served the University well for a number of years.

.2 The Chairman updated members on estates issues.

02/27 Vice Chancellor's Business

.1 Impact of the Budget

The 1% increase in National Insurance payments would affect both employees and employers, adding 1% to the University pay bill from April 2003. This would amount to approximately £600K in a full year, representing a significant but manageable increase.

Research and Development tax credits had been extended to large companies. The extra 25% tax allowances would mean a tax saving of 7.5%. It was difficult to quantify the overall effect but it was noted that this would provide opportunities for Loughborough and key staff needed to be made aware of these changes in order to maximise the benefits for the University. Action: Pro-Vice-Chancellor (Research)

.2 Pensions

The majority of pension schemes were reviewing their contribution rates in the light of falling investment returns and increases in life expectancy. Both the main University funds were in the course of a triennial revaluation and it was expected that this would lead to an increase in employer contributions. The shortfall in the Local Government Scheme, in which the University had over 1000 members, required an increase of 1% next year and 0.6% in each of the next two years. The total impact for the University would be of the order of £150K in the first year. The Universities Superannuation Scheme (USS) for academic and academic related staff also expected to increase the level of University contributions from 1 April 2003.

.3 Student Achievements

The Vice-Chancellor reported various student achievements including former student, Paula Radcliffe's marathon success, the University cricket team's recent victory at Cambridge and two students from the Department of English and Drama who had taken part in the National Youth Drama Festival.

02/28 Pro-Vice-Chancellors' Reports

.1 Pro-Vice-Chancellor (Research)

COUN02-P18

The Pro-Vice-Chancellor (Research) reported that the value of new research grants and contracts gained in the period to 31 March 2002 was £21.9M compared with £24.8M for the whole of last year. Distribution across faculties was somewhat uneven with several large new grants and contracts in Engineering, including the WELL project in WEDC of £4M, Flexmaster of £1M and the EPSRC research grant for Innovation Management and Construction of £14.2M of which only £4.1M had been incorporated into the figures presented to Council. The Pro-Vice-Chancellor (Research) reported that one or two departments were causing concern and these were being monitored by the Deans. A member commented that it would be useful if numbers of staff in departments were included on the spreadsheet.

The Pro-Vice-Chancellor (Research) informed Council that there had been a flurry of activity in applications for research grants and contracts over the last few months and that to date, applications awaiting decisions had an aggregate value of £37.3M. Council NOTED that decisions on some applications would not be made until the next financial year and that the value of applications that could be realised in the current financial year was approximately £21M. The number of applications was 56% higher than at the same time last year and the total value of applications was 34% higher for the same period. Again activity was uneven across departments and areas of concern were being monitored closely.

.2 Pro-Vice-Chancellor (Teaching)

COUN02-P19

The Vice-Chancellor reported that the overall picture for applications was encouraging and highlighted the following statistics:

· Undergraduate UK/EU applications were up 4.5% on 2001/2002 figures.

· Undergraduate international student applications were up 26.9% on 2001/2002 figures.

· Postgraduate taught international applications had increased from 613 in April 2000 to 1192 in April 2001 and currently stood at 2585.

· International research student applications were also encouraging and two faculties had achieved in excess of 100% increase compared to the same time last year.

Increased applications in each category were encouraging. Additional applications from international students were particularly important because, if converted, they represented significant income to the University, as well as enriching its culture.

There remained significant pressure on all universities to widen access. The University had recently appointed a Widening Participation Officer and substantial efforts were being made to enhance activity in this area of recruitment. The Vice-Chancellor reminded Council that other institutions were doing the same and that benchmarks were likely to increase. The University needed to continue to monitor its performance in this area closely.

.3 Pro-Vice-Chancellor (External Relations)

COUN02-P20

The Pro-Vice-Chancellor (External Relations) informed Council that the University had entered discussions with Ford Dagenham and intended to be part of a new initiative - the Centre of Engineering and Manufacturing Excellence (CEME). CEME was to be developed as an education and innovation facility run by a partnership of businesses, universities, FE colleges and government agencies. Loughborough had been invited to be the lead partner for engineering subjects, to develop engineering at higher education level, particularly postgraduate. Public fundraising was being sought to add a New Technology Institute, which would allow the extension of the planned programmes. Assurance had been given that the application had the highest rating and was likely to be supported. Council NOTED that the University wished to retain existing Ford activity on campus and high level discussions were going on to this end. Both Operations Sub-Committee and Resources and Planning Committee had given approval for discussions to continue.

The Pro-Vice-Chancellor (External Relations) reported that the University had also entered negotiations with BAE SYSTEMS and the East Midlands Development Agency (EMDA) to create the Systems Engineering Innovation Centre (SEIC) which would undertake research, vocational training and knowledge transfer. EMDA saw SEIC as one of the top two initiatives in the area this year and was aiming to provide a grant to cover all the capital costs of creating the centre. Council NOTED that the University wished to pursue the SEIC with EMDA and BAE SYSTEMS. Discussions would continue.

02/29 HEFCE Recurrent Grant for 2002/03

COUN02-P21

The Vice-Chancellor reported on the HEFCE recurrent grant for the academic year 2002/03. In summary, the University had received its biggest increase for a long time, 6% if additional money for rewarding and developing staff was included. There had been significant variation in settlements across the sector, mainly because of the Research Assessment Exercise (RAE) results. Loughborough University had done reasonably well with regard to this component, gaining a 4.2% increase. Universities UK were disappointed at the settlement as a whole, reflecting the view that some universities would find it difficult to make ends meet following RAE results.

Whilst the University broadly welcomed the overall increase in the grant, Council was informed that once again internal budgeting processes would be difficult and that some hard decisions would need to be made.

02/30 Review of Capital Procedures

COUN02-P22

In response to comments from Council at its last meeting, the Bursar introduced proposals for new paperwork and procedures relating to Capital Procedures. In summary, five changes were proposed as outlined below:

(i) Project Management

The Board of Enquiry into the overspend on the Engineering Project had recommended that "There should be a named person or organisation who will report directly to the Vice-Chancellor and Council on the progress and cost of projects." Council had agreed to implement the recommendation at its meeting in December 2001. In retrospect, a number of officers felt that the recommendation was too wide and suggested that the recommendation be slightly refined to apply only to projects with a value of £4M or above and from the point of final approval by Council. Council would nominate a recommended person to lead the project who would report direct to Council and the Vice-Chancellor.

(ii) Challenge Process

The introduction of a new stage in the Capital Procedures at which there was a serious challenge to the project itself and its specification. The Chair of Resources and Planning Committee would appoint one lay and one academic member of Council to look critically at the project and report back to Resources and Planning Committee.

(iii) Information for Committees

At its last meeting, some members of Council commented that they would like more information on capital projects so that they could make informed judgements. The Bursar had drafted an Information Note, which detailed projects as they moved from Stage A through to Stage E. Council would receive an updated Information Note each time a project changed status.

(iv) Prioritisation of Projects

The Executive Management Group (EMG) would allocate a priority rating to projects and a four-level system was proposed. Council was reminded that most projects were subject to bids for external funding and the success of such a bid could affect the prioritisation of a project.

(v) Interpretation

University decision-making bodies currently received a consolidated list of all projects under consideration. This included projects at stage A for which there was no commitment to fund and no expenditure had been authorised. Treasurer's Committee had questioned the wisdom of adding projects to the list before the University had taken a decision to realise the project but EMG believed that the consolidated list had value. It was proposed that the procedures be amended to include a specific statement for projects at stage A that "No expenditure authorised and no commitment to fund" and that the list presented to Council be separated into projects at Stages D and E and Stages A, B and C.

During discussion the following points were raised:

· The Treasurer reminded Council that the recommendation from the Board of Enquiry that projects should have nominated project managers was intended to apply only to complex and expensive projects. In response to a comment from a member, the Bursar clarified that the individual, nominated as project manager, would be identified at Stage A and follow the project through to Stage E. Their powers would be increased at Stage E.

· A member felt that the lay and academic members of Council appointed as challengers would be burdened with a huge responsibility as, essentially, it would be their job to decide whether or not a given project should proceed. In response to this comment, it was clarified that the purpose of the Challenge Process was to ensure that projects were fully questioned by an independent party. As such, the individuals involved would be expected to take a broad approach rather than concentrating on the detail of a project. However, the challenge had to be responsible and informed and there may be areas where specialist advice was sought by the challengers to enable them to carry out the job effectively. In appropriate circumstances, the University would ensure that such advice was available.

In summary, the University needed a good basis for making decisions and controlling the consequences. The proposals presented to Council went a long way toward achieving this and it was RESOLVED to APPROVE the revised arrangements for Capital Procedures as detailed in the agenda paper.

02/31 Capital Programme

.1 Progress Report

COUN02-P23

The Bursar gave a progress report on the Capital Programme as summarised in the Agenda paper, in particular drawing attention to a small extension to the Medical Centre which had been given Stage A status by EMG. The building concerned was owned by the University and rented to the Medical Centre. It was possible that the project might attract NHS funding.

At its last meeting, held on 19 April 2002, Resources and Planning Committee had agreed to:

· Move the Graham Oldham Ventilation Improvements project from Stage C to Stage D. The project was now expected to cost approximately £260K.

· Move Towers Hall Re-furbishment to Stage E.

· Move the Disability Improvements project forward from Stage A following a successful bid to HEFCE.

The Chair of Estates Management Committee reported that there had been four contenders for the design of the National Cricket Academy, one of which had now been selected. Brochures of the conceptual design of the academy were available for viewing by members of Council.

.2 Personnel/Payroll System

COUN02-P24

The Deputy Vice-Chancellor introduced the item, which had already been discussed at Resources and Planning Committee. The University had not invested seriously in IT development over a long period and all three of the University's major systems (Finance, Payroll/Personnel and Student Management) required some development. Council was reminded that work on the Finance system had started three years ago and that the project had run into trouble. Other institutions had encountered similar difficulties with the same supplier. Following a long dialogue with the supplier, the University was hopeful that workable software was now being installed. Trials would be run from May. Of the remaining two systems, Personnel/Payroll had been chosen for development because it was being run on software which was unsupported and hardware which was out of date. In the last 12 months the Personnel/Payroll system had suffered five incidents of system failure. The Chair of the Audit Committee queried why the internal auditors had not picked this up as high priority. It was NOTED that the auditors had not examined this system.

The University policy on acquisition of new IT systems was to purchase "Best of Breed" rather than outsourcing or building its own. The specification for the new Personnel/Payroll system had been written and the University had considered bids from six suppliers. Midland Software had been chosen as the most appropriate supplier. Council was informed that Oracle had not been chosen as their Personnel/Payroll systems did not meet "Best of Breed" criteria. The Deputy Vice-Chancellor acknowledged that this meant the University would have two major suppliers but reported that most other institutions were in a similar position.

The project could be divided into two components – the core system, which would cost approximately £912K over five years and "add-ons" which would cost approximately £350K over the same period. The costs of the core system were a mixture of capital (£294K), recurrent (306K) and staffing (£312K). The Deputy Vice-Chancellor explained that the staffing costs presented to Council illustrated the total project cost and it was possible that some of the tasks would be allocated to existing staff from Corporate Information Services (CIS). Some of the funding for the "add-ons" would be drawn from the grant from HEFCE to improve Human Resource systems.

Resources and Planning Committee had received a presentation from the Director of CIS and had agreed to approve the core project up to £912K and were minded to approve the "add-ons" subject to a progress report on the installation of the core system. Controls regarding the risk of installation would need to be carefully monitored. An analysis of the extent to which existing staff were to be used and the opportunity costs of this should also be undertaken.

The project had yet to be discussed at Treasurer's Committee and go through the "Challenge Process". Council AGREED to APPROVE delegated authority to the Chair to approve the Personnel/Payroll system subject to approval from Treasurer's Committee and completion of Challenge Process.

02/32 Strategic Plan

COUN02-P25

The Deputy Vice-Chancellor updated Council on the progress of the Strategic Plan as detailed in the agenda paper. In general, the main thrust of the strategy followed discussions at the Council Strategic Planning Conference in October and was largely research-led. Various authors were in the process of writing individual chapters of the Strategic Plan, which would be discussed in detail by EMG in the near future. The plan would then be refined and circulated to members of Council for comments and suggestions. The final version of the Strategic Plan would be presented to Council at its meeting in July. The intention was that the individual sections would be more integrated than they had been in the last strategic plan but there was some concern that this had not yet been achieved.

A member commented that the learning and teaching section of the plan seemed to focus on "teaching" and had no action points regarding the "learning" elements of the University's strategy. Incorporating the development of learning skills would raise awareness of this important issue and would be one way in which to integrate the widening participation agenda into the overall strategy. Concentration on "learning" could also provide an important link between the teaching and research sections of the plan. The section needed to include reference to 'drop out' rates, targets for employment or quality of degrees as measured by 1^st/2:1. Action: Pro-Vice-Chancellor (Teaching)

02/33 Risk Management

COUN02-P26

Risk Management was an important issue for the management of the University. The Funding Council required the University to have an effective system of internal control in place by August 2002, including an efficient method of risk management. However, the University needed to avoid creating a risk "industry" and it was important to strike a careful balance. As a first step in reviewing risk management, EMG had agreed a list of 15 risks facing the University and identified the responsible officer and relevant committee for each one. A project manager had been assigned to the review of risk management in the University and was currently interviewing managers to produce a matrix analysis of the likelihood of the identified risks and their probable impact on University.

EMG would interview a manager each month to assess whether the risk for which they were responsible was being effectively managed and ensure that risk management was at the forefront of people's minds at all levels. Audit Committee would also conduct a series of interviews with managers and both committees would make annual reports to Council.

Members of Council felt that the University had made substantial progress in this area and it was AGREED that the review of risk management should proceed as planned.

02/34 Nominating Committee

COUN02-P27

It was RESOLVED to appoint Ms Norma Honey and Professor Terry Kavanagh as the lay member and elected staff member respectively of the Nominating Committee for the period 1 April 2002 - 31 March 2003.

02/35 Audit Committee

COUN02-P28

Council received a report of the 39th meeting of the Audit Committee held on 14 February 2002. The Chair informed Council that the Audit Committee generally dealt with reports from internal and external auditors from which a register of recommendations was compiled. The Committee was responsible for monitoring the University's responses to the auditors' recommendations.

The Chair of Audit Committee commented on the following items contained within the report:

· The installation of inert-gas-flooding had been a high priority recommendation for both the internal and external auditors for some time. There had been disagreement regarding the priorities in this area and, to date, the Audit Committee had not been able to persuade the University to respond to the auditors' recommendation. At its last meeting, Audit Committee noted that the internal auditors and the Director of Computing Services had agreed that the replacement of the air conditioning system represented a higher priority than the installation of inert-gas-flooding protection. However, the internal auditors still felt that the installation of an inert-gas-flooding system was desirable and had offered to determine whether their own technical specialists could offer advice.

· Audit Committee had noted a report concerning the presentation of two fraudulent cheques, which had been honoured by the University's bank. The bank had been at fault as the cheques had not been signed in accordance with the terms of the mandate and the University had now been fully refunded.

02/36 Treasurer's Committee

COUN02-P29

Council RECEIVED reports of the 18th (Special) meeting of the Treasurer's Committee held on 22 January 2002 and the 19th meeting of the Treasurer's Committee held on 19 March 2002. The first meeting had been convened to consider the UNITE contract and the second was an ordinary meeting at which Risk Management and Capital Procedures had been discussed in some detail along with other routine business.

Council was asked to consider the following recommendations:

.1 Terms of Reference

COUN02-P30

Council APPROVED changes to the Terms of Reference of the Treasurer's Committee as detailed in the agenda paper.

.2 Investment Policy

COUN02-P31

Council APPROVED changes to the Investment Policy as detailed in the agenda paper.

02/37 Resources and Planning Committee

.1 Report of 121st Meeting held on 8 March 2002

COUN02-P32

Council RECEIVED a report from the 121st meeting of Resources and Planning Committee held on 8 March 2002 and APPROVED the following recommendations:

(i) Stewardship of Residential Buildings

COUN02-P33

Council APPROVED policy guidelines for the stewardship of residential buildings.

(ii) Research Performance Monitoring Group

COUN02-P34

Council APPROVED the establishment of the Research Performance Monitoring Group as a Sub-Committee of Resources and Planning Committee.

(iii) Residential Strategy Review Group

COUN02-P35

Council NOTED the constitution and terms of reference of the Residential Strategy Review Group, which would report to Resources and Planning Committee.

.2 Tuition Fees

COUN02-P36

Council APPROVED a recommendation regarding tuition fees for 2002/03, referred by Resources and Planning at its 122nd meeting on 19 April 2002.

02/38 Senate

COUN02-P37

Council APPROVED the following recommendations referred by Senate at its 348th meeting on 6 March 2002.

i. Programme Proposals

a) New Programmes for introduction in the 2001/2002 session:

LPC in Continuing Professional Development

b) New Programmes for introduction in the 2002/2003 session:

MSc Social Research (Social Science)
BSc, DIS Quantum Information and Computation
MDes, MA/MSc Industrial Design with Secondary Subject

c) New awards for 2002/03:

            Award of Diploma in Professional Development (DPD) in the following programmes:

            BA Graphic Communication
            BA Ceramics
            BA Printed Textiles
            BA Illustration
            BSc Industrial Design and Packaging Technology
            BSc Information Management and Computing
            BSc Information Management and Business Studies
            BA Publishing with English
            MEng Systems Engineering

            Award of Diploma in Professional Studies (DPS) in the following programmes:

            BA Graphic Communication
            BA Ceramics
            BA Printed Textiles
            BA Illustration

d)         New Programme Title in 2001/2002:

BA European Business to BA International Business for existing pre-'99 cohorts
(From the 1999 cohort the programme has been entitled International Business)

e) New Programme Title in 2002/2003:

BSc Geography and Leisure Management (currently Geography and Recreation Management) to BSc Geography and Sport and Leisure Management

f) New Programme Titles in 2003/2004:

PE and Sports Science	to	Sports and Exercise Sciences
PE, Sports Science & Recreation Management	to	Sports Science with Management
PE, Sports Science and Physics	to	Sports Science with Physics
Geography and PE and Sports Science	to	Geography and Sports Science
PE, Sports Science and Social Science	to	Sports Science and Social Science
Chemistry and PE and Sports Science	to	Chemistry and Sports Science
English and PE and Sports Science	to	English and Sports Science
PE, Sports Science and Mathematics	to	Sports Science and Mathematics

g) Discontinuation of the following programmes (last intake shown in brackets):

            BA Information and Library Studies (October 1998)
BA Information and Publishing Studies (October 1998)
BA Library and Information Management (October 2000)
                                                                                                                                         BSc Information and Computing (October 1998)
                                                                                                                                         BSc Information and Management (October 1998)
                                                                                                                                         BSc Logistics and Transport Management (October 2001)
                                                                                                                                         BSc Retail Management (Automotive) (October 2001)
                                                                                                                                         MBA Information and Library Management (no recruitment)
MSc Information Studies (October 2001)
MSc Mechanical and Electrical Project Management (October 2001)

ii. Ordinances

Council APPROVED amendments to the following Ordinances with effect from 1 August 2002:

a) Ordinance IV: Titles of Degrees and Conditions of Award

b) Ordinance XXXIII: Diplomas and Certificates

iii. Prizes

Council APPROVED the establishment of new prizes, altered conditions of existing prizes and discontinuation of prizes.

iv. Policy on Career Education, Information and Guidance

Council APPROVED a University policy.

v. Changes to Titles of Departments

Council APPROVED the following changes to titles of departments with effect from 1 August 2002

a) Department of European Studies to Department of European and International Studies

b) Department of PE, Sports Science and Recreation Management to School of Sport and Exercise Sciences

02/39 Repeal of Ordinance XXII - Wardens Committee

COUN02-P38

Council APPROVED a resolution, on the recommendation of the Student Services Committee, that Ordinance XXII in regard to the Wardens Committee be repealed. In effect, this meant that the Wardens Committee would be disbanded. This repeal would not take effect until the resolution had been confirmed at a subsequent meeting of Council.

02/40 Common Seal

COUN02-P39

Council RATIFIED the action of the Registrar in affixing the University Seal to the documents listed in the agenda paper.

02/41 Degree Congregations - 2002

Council NOTED the dates of degree congregations in 2002.

Summer            -           Thursday 11 July 2002 (am & pm)
                                    Friday 12 July 2002 (am & pm)
                                    Monday 15 July 2002 (am & pm)
                                    Tuesday 16 July 2002 (am & pm)

Winter - Monday 16 December 2002 (am & pm)

Special Honorary Degree Ceremony, 10 April 2002, Brighton

Special Degree Celebration, 26 September 2002, Peterborough

02/42 Performance Monitoring Group

COUN02-P40

Council RECEIVED a report from Performance Monitoring Group.

02/43 Reports of Committees

COUN02-P41

Council RECEIVED reports from the following Committees.

i) Student Services Committee of 6 March 2002
ii) Senate of 6 March 2002

02/44 Any Other Business

Tabled paper

.1 Merger of Subsidiary Companies

Council considered a proposal to merge Loughborough University Consultants Ltd and Loughborough University Innovations Ltd with effect from 1 August 2002. The two companies had co-located in September last year and were already effectively working as a single unit.

Council APPROVED the merger and AGREED that the new company be known as Loughborough University Enterprises Ltd.

02/45 Date of Next Meeting

Wednesday 17 July 2002.