The Council

COUN07-M3

Minutes of the meeting of the University Council held on Tuesday 24 July 2007.

Members:

Sir Bryan Carsberg (Chair); Dr Memis Acar (ab); John Blackwell; Penny Coates; Dr Sandie Dann (ab); Vivian Dhaliwal (ab); Venu Dhupa (ab); Gifty Edila; Sir John Gains; Marc Gibson (ab); Paul Glover; Gemma Godfrey; Professor Neil Halliwell; Peter Haslehurst (ab); Norma Honey; Sir John Jennings; Jim Mutton; Professor Richard Parry-Jones (ab); Professor Shirley Pearce; Graham Picken; Simon Proffitt; Dr Fytton Rowland (ab); Jackie Strong; Jeremy Swaffer; Professor Rachel Thomson; Professor Y Vardaxoglou (ab); Professor Peter Warwick; Dr Cyril Woodruff; Alan A Woods.

In attendance:

Professor Morag Bell; David Gerty; David Goss; Professor Terry Kavanagh; Sir Charles McCullough; Professor Ken Parsons; Miranda Routledge; John Town; Jon Walker; Rachel Wiggans; Peter Winter.

Fidelma Hannah (for item 07/36); Roy Hill (for item 07/38); Michael Pearson (for item 07/39);

Apologies for absence were received from:

Marc Gibson; Peter Haslehurst; Simon Proffitt; Dr Fytton Rowland.

07/33 Chair’s Welcome

The Chair of Council welcomed Sir Charles McCullough (University Visitor), David Gerty (incoming LSU President) and David Goss (incoming LSU Vice-President Democracy & Communications) to the meeting.

Council wished to record its thanks to the organisers of the University’s Graduation ceremonies which had run very smoothly.

07/34 Minutes

Minutes of the Meeting of Council held on 30 March 2007 [COUN07-M1] were CONFIRMED.

07/35 Matters Arising

The post of Chief Operating Officer had been offered to, and formally accepted by, the preferred candidate. It was hoped that he would start in post in October.

07/36 University Strategy

07/36.1 Implementation Planning: Priorities and Resource Framework

COUN07-P30

A draft version of the high-level University Strategy document was tabled and members were invited to make comments to the Planning Office. All of the detailed implementation plans had been published on the University’s intranet. Responsibility for each area of activity covered by the University Strategy had been assigned to a named member of the University’s Executive Management Group. Additional resources in some areas had already been agreed for 2007/08 and work was under way to identify further resource implications for 2008/09 and 2009/10.

Council APPROVED the schedule of implementation planning priorities and resource framework.

07/36.2 Key Performance Indicators

COUN07-P31

Council RECEIVED an update on Key Performance Indicators. Targets/benchmarks had been added wherever possible to make it easier for Council to assess performance in the various business areas. It was acknowledged that the production of KPIs, particularly for some areas of University activity was not straight forward. Thanks were recorded to the Planning Team who had worked extremely hard to produce the information collected to date,

The commentary accompanying the data was historic at present, explaining significant variations in data trends. However, for future reports, the commentary would be forward looking and would alert Council to potential or known factors that could influence performance in any given area of activity.

It was the role of the governing body to keep a broad overview of the University’s performance in the various business areas. The KPIs would prove a useful device for prompting questions and identifying areas that Council may wish to consider in more detail.

07/37 University Budget

COUN07-P32

By way of introduction to this item, the Chair alerted Council to the scale of the University’s Capital Plan and the need to think constructively about how this could be financed. Increased borrowing placed the University in a vulnerable position regarding interest charges. Therefore, Council may need to revisit its target of 3% surplus and align future financial strategy more closely to the costs of the Capital Plan.

07/37.1 Budget Update 2006-07

Council noted the latest position for the 2006-07 Budget. The Director of Finance drew Council’s attention to the following factors:

- Before exceptional items, the latest forecast was £1M better than the original budget

- The negative £489K under exceptional items related to the loss of net value following the disposal of William Morris and John Phillips Halls of Residences

- The reduced surplus for imago was the result of several factors including the impact of the Burleigh Court extension on revenue. There were a number of HR issues specifically affecting imago which had had a negative impact on the budget and which would be addressed once the Chief Operating Officer and the new HR Director were in post.

07/37.2 Budget 2007-08 and Financial Outlook to 2009-10

The proposed budget for 2007/08 projected a surplus of £3.4M, 1.9% of turnover. The Chair noted that, notwithstanding his earlier comments, this was somewhat lower than the usual 3%. However, a strategic decision had been taken in advance of the 2008 RAE that the University must invest in academic staff.

In her report, the Director of Finance drew Council’s attention to the following factors:

- 50 additional student numbers (for elite athletes) had not been included in the current budget. Therefore, if this target was achieved, the budget would be improved.

- As in recent years, £1M contingency had been incorporated into the budget should the University fail to meet targets for international student recruitment.

- Resource already committed for the implementation of the University Strategy had been included for 2007/08 but not for 2008/09 onwards.

- Pension costs had increased. A 1.4% increase in the cost of the Local Government Scheme had been incurred following the Hay evaluation exercise which had resulted in a number of staff transferring schemes.

- The 2008/09 and 2009/10 outline budgets currently included a Strategic Fund. Council was advised that significant funds had already been committed. Council would be asked to advise on whether the Strategic Fund could be subsumed within the rest of the budget from 2008/09 – thereby increasing the surplus available for the Capital Plan.

Council APPROVED the 2007/08 Budget as presented but made comment on the following issues:.

- Concern was voiced regarding the position of imago. HR costs were recurrent and costly to address. If the assumptions regarding imago were optimistic, then the budget position for 2008/09 onwards would worsen. Therefore, the annual report from the Director of imago should be received and closely scrutinised at the next meeting. Action: Director of imago

- The University was increasing overhead costs (e.g. investment for RAE and implementation of the University Strategy) at a time when financial flexibility, particularly in relation to the Capital Plan, was required. Therefore, difficult choices would need to be made.

- There had been a large increase in the depreciation charge from the forecast outcome for 2006/07 to the budget for 2007/08. The Chair of Council asked the Director of Finance to let him have a note enumerating the main differences. Action: Director of Finance

07/37.3 HEFCE Indicators of Financial Health

Council NOTED the HEFCE Indicators of Financial Health which illustrated that the University was in a healthy and stable financial position in comparison to the rest of the sector.

07/38 Capital Programme

07/38.1 Update on Major Building Projects

COUN07-P33

Council RECEIVED a progress report. The Treasurer reported that the Independent Review Group was looking closely at the rental agreements for the Sports Park.

07/38.2 University Capital Plan

(some information has been redacted due to commercial sensitivity)

COUN07-P34

Council RECEIVED the University Capital Plan until 2015/16.

The 10 year plan was a useful management tool for Council in terms of understanding, and informing decisions regarding, the scale and cost of the University’s ambitions to improve its estate. The current plan assumed that HEFCE streams of capital funding would continue at least until 2009/10. The “unfunded” element of the plan would need to be funded from University surpluses, illustrating the importance of reconsidering the target surplus as explained by the Chair in his introduction to the budget item. It was AGREED that Council should receive the 10 year Capital Plan annually at its meeting in July.

07/38.3 Student Residential Accommodation Project

COUN07-P35

Council NOTED that financial close had been achieved on 6 June 2007. It had been originally hoped that the project would be cost neutral. However, the final cost to the University had been £2.8M due to a re-design following planning permission requirements and movements in the interest rate markets. Building work had now started.

07/38.4 Science and Enterprise Park

COUN07-P36

The PVC(Enterprise) reported on the Science and Enterprise Park project which would impact upon a wide range of activities across the University. DTZ Consultants had been engaged to produce a report, the assumptions of which were now being tested by a steering group chaired by Michael Pearson.

It was assumed that the project could be funded off balance sheet for which the University would need to identify appropriate partners. A variety of models/structures for similar projects had been used by other Higher Education Institutions and it was important to choose a solution that was right for Loughborough University.

07/38.5 West Park Multi-storey Car Park

COUN07-P37

The Director of Estates introduced a proposal to build a secure multi-storey car park and clarified that the proposed project would replace all of the car-park spaces lost to the Student Residential Accommodation Project (Car Park 7). The cost of the project was not insignificant but there was window of opportunity in relation to planning consent which should not be missed. Council APPROVED to move this project to Stage E of the Major Projects Process at a cost of £4,436K.

The University’s current car parking policy was considered generous. Council was reassured that the wider issues relating to car parking facilities and fees were being considered separately and would be reported upon at a future meeting. Council recognised that the economics of car parking was an emotive topic, incorporating a complicated set of issues.

07/38.6 Finance System Implementation

COUN07-P38

Council RECEIVED a progress report, noting the changes to the implementation schedule as detailed in the agenda paper. Three areas of the new system had been internally audited with a positive outcome.

07/39 Review of Residential Provision

COUN07-P39

Following Council’s meeting in December 2006, a Group, chaired by Michael Pearson, had initiated a full ranging review of residential provision, building on work already completed by previous reviews. Michael Pearson introduced the Group’s report, highlighting in detail each of the nine recommendations contained in the agenda paper. A second phase of the review – investigating welfare governance and management – would be conducted and the Group would report back to Council in November.

The Students’ Union welcomed the fact that the report was being discussed at Council and the President commented that she felt this was the appropriate level for decision making on such an important issue. The Students’ Union would appreciate an opportunity for further consultation and Mr Pearson confirmed that they would be formally involved in the next stage of the review.

Council thanked Michael Pearson for the work of the Group to date and APPROVED the recommendations which provided a useful framework for moving forward.

07/40 Loughborough Students’ Union (LSU) Incident

COUN07-P40

The Chair introduced the item by reminding Council members of the incident that had occurred at LSU in March 2007. Whilst the event had been distressing, it had been well managed both in terms of the initial response and future planning for events at the LSU. With regard to the latter, the Deputy Vice-Chancellor had led a Review Group, the recommendations of which were detailed in the agenda paper. The Deputy Vice-Chancellor commended LSU for their cooperation with the Review.

The Review Group concluded that events management at LSU was fundamentally sound. The recommendations were intended to facilitate a closer working relationship between the University and LSU and included improved governance arrangements, enhanced risk assessment procedures and the appointment of a University Events Coordinator. Council was reassured that the implementation of the recommendations would be monitored via monthly meetings between the Deputy Vice-Chancellor and the Health, Safety and Environmental Officer. The Events Coordinator, once appointed, would also play a key role in the risk assessment/management of LSU events.

Council welcomed the work that had been done in this area and ENDORSED the recommendations of the Review Group.

07/41 Advancement

The Vice-Chancellor gave Council members a presentation on “advancement” activities in the sector. The climate was changing and the sector was being actively encouraged to engage in activity to raise the profile of, and donations to, HEIs. The government was committed to increasing this type of activity and, as such, had linked significant resource to specific initiatives. From 2008, £200M would be available over a 3 year period for which institutions could bid to match donations received.

If the University chose to pursue advancement activity as part of its core business, it would need to adopt a coordinated and planned approach, linked specifically to the University Strategy. For the University to be successful in advancement activity, it would need to be embedded across the University and reflected in the development plans for all departments. This would necessitate a change in operation for the Vice-Chancellor and the Deans who would play key roles as ambassadors of the University. Consequently, the relationship between, and respective roles of, the Vice-Chancellor and the Deputy Vice-Chancellor would change. Future roles were likely to be similar to the President/Provost structure in American universities and Loughborough may, at some point in the future, consider a change in job titles to reflect this.

Council met the proposals with enthusiasm and APPROVED, in principle, that the University should pursue advancement as a new business area. Members looked forward to receiving more detailed reports in the future.

07/42 ACCESS Agreement – Annual Report

COUN07-P41

The Pro-Vice-Chancellor introduced the Annual Report on the University’s ACCESS Agreement with OFFA. Income in relation to tuition fees was largely as expected. Expenditure on bursaries was 26% lower than expected, because a significant number of eligible students had failed to apply. This was reported to be a sector-wide phenomena, thought to be a result of the complexity of the application forms (produced by the Student Loans Company). Steps had been taken to simplify the forms and it was anticipated that this would lead to an increase in the uptake of bursaries in the future. Expenditure on “outreach” activities was less than forecast but action had been taken to address this.

The various “widening participation” milestones reported on were not externally driven targets. Rather they acted as indicators for the University against which to measure its own performance. Good progress had been made in some areas but not all.

Council APPROVED the report to be submitted to OFFA.

07/43 Audit Committee

COUN07-P42

Graham Picken introduced the report from the meeting of the Audit Committee held on 29 June 2007. He drew Council’s attention to the fact that the Annual Risk Management report, usually reviewed by the Committee in June, had been deferred to the November meeting and confirmed that the Auditors had agreed this arrangement. Mr Picken commented on some of the internal audit reports, details of which were included in the agenda paper.

Council formally AGREED to:

i. APPROVE revisions to Terms of Reference

ii. APPROVE revisions to the Anti-Fraud, Corruption and Whistle-blowing Policy

iii. RECEIVE revised Risk Register and Risk Schedules

iv. APPROVE the appointment of External Auditors

v. APPROVE fees for 2007

07/44 Matters for Reports

07/44.1 Pro-Vice-Chancellor (Research)

(i) Research Applications – Quarterly Analysis by Department

COUN07-P43: NOTED

(ii) New Research Grants and Contracts

COUN07-P44: NOTED

(iii) Other Matters: RAE 2008 & Research Outputs

COUN07-P45: NOTED

07/44.2 Pro-Vice-Chancellor (Teaching)

(i) Recruitment for 2007/08 Entry

COUN07-P45: NOTED

07/44.3 Pro-Vice-Chancellor (Enterprise)

COUN07-P46: NOTED

07/44.4 Director of External Affairs

COUN07-P47: NOTED

07/45 Vice-Chancellor's Business

COUN07-P48

The Vice-Chancellor presented a paper on issues currently affecting the HE Sector.

Council members commented that this was a useful addition to the agenda and looked forward to receiving similar reports at future meetings.

07/46 University Ordinances

07/46.1 Confirmation of Amendments

Further to minute 07/12/2 and paper COUN07-P15, Council CONFIRMED an amendment to Ordinance XV (Study Leave and Leave to Accept and Externally Funded Award) with immediate effect.

07/46.2 New Amendments

Council APPROVED amendments to:

i. Ordinance VII (The Pro-Vice-Chancellors) and XXI (Appointment of Deans of Faculty and Tenure of Office)
COUN07-P49

ii. Ordinance XVI (Students’ Union)
COUN07-P50

iii. Ordinance XVII (Conduct and Discipline of Students)
COUN07-P51

iv. Ordinance XXIII (Traffic and Parking in the University)
COUN07-P52

07/47 HEFCE: Assessment of Institutional Risk

COUN07-P53

Council RECEIVED a copy of HEFCE’s Assessment of Institutional Risk.

07/48 Membership of Council and Appointments to Committee Chairs and Standing Committees

COUN07-P54

.1 Council NOTED the membership of Council for 2007/08 thus far determined.

.2 Council NOTED recent appointments to Committees

.3 Council APPOINTED the Chairs of certain Committees.

.4 Council AUTHORISED the Chair (delegated to Registrar) to take action on behalf of Council to make re-appointments and new appointments to vacancies on Council Committees, Joint Committees of Senate and other bodies to which Council appoints.

07/49 Resources and Planning Committee

COUN07-P55

Council RECEIVED the report from the meeting of Resources and Planning Committee held on 1 June 2007 and APPROVED the following recommendations:

1. Tuition Fees

2. Parking Charges 2007/08

3. Cycle Registration

07/50 Senate

COUN07-P56

Council RECEIVED the reports from the meetings of Senate held on 4 July 2007 and:

1. NOTED the formation of the School of Sport and Human Sciences

2. NOTED the proposed Enterprise Committee Structure

3. APPROVED Programme Proposals

07/51 Health, Safety and Environmental Committee

COUN07-P57

Council RECEIVED the report from the meeting of the Health, Safety and Environmental Committee held on 11 June 2007 and APPROVED:

1. Ionising Policy

2. Non-ionising Policy

07/52 Loughborough Institute of Sport, Exercise and Health, Singapore

COUN07-P58

Council NOTED a proposal for the establishment of a University Institute in Singapore for teaching, research and enterprise in sport, exercise and health.

07/53 Alumni Board Annual Report 2006/07

COUN07-P59: RECEIVED

07/54 Careers Service Advisory Board Annual Report 2006/07

COUN07-P60: RECEIVED

07/55 Chair’s Action

Council NOTED that the Registrar (with delegated authority) had taken action on behalf of Council to approve:

1. Establishment of New Prizes

2. Amendments to Existing Prizes.

07/56 Reports of Committees

Council RECEIVED reports from the following Committees:

i) Performance Monitoring Group – 1 March and 19 June 2007 [COUN07-P61]

ii) Research Committee – 8 June 2007 [COUN07-P62]

iii) Student Services Committee – 30 May 2007 [COUN07-P63]

iv) Treasurer’s Committee – 15 March and 19 June 2007 [COUN07-P64]

07/57 Dates of Meetings in 2007/08

Council NOTED the dates for meetings in 2007/08 as follows:

Wednesday 28 November 2007 (2.30pm) may be preceded by Treasurer’s Briefing at 1.30pm
Friday, 18 January 2008 (1.30pm)
Friday, 28 March 2008 (10.15am)
Tuesday, 22 July 2008 (2.30pm)

07/58 Any Other Business

The Chair commented on the following issues:

1. He welcomed the removal of the six year limit on the appointment of the Deputy Vice-Chancellor, Pro-Vice-Chancellors and Deans (approved under item 07/46.2 (i)). This was an important development, intended to gain flexibility for the University. There was no implication that longer periods of office would be the norm – the three year term of office would still exist and incumbents would have to be re-appointed in the usual way to continue beyond this.

2. He wished to propose an increase in the number of Pro-Chancellors from two to four. This would require a change to the University’s Charter and proposals would be brought forward to the next meeting following appropriate consultation within the University. Action: Registrar

3. He would be instigating a further Review of the Effectiveness of Council in the Autumn.

07/59 Date of Next Meeting

Wednesday, 28 November 2007 (pm)

07/60 Valedictory

Council recorded its thanks to Gemma Godfrey and Jeremy Swaffer, from LSU, for their contributions over the past year and wished them both all the best for the future.