The Council

COUN07-M5

Minutes of the meeting of the University Council held on Wednesday 28 November 2007.

Members:

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

In attendance:

Professor Morag Bell; Professor Peter Golding; Professor Terry Kavanagh; Dr Jennifer Nutkins; Paula Powditch; Professor Steve Rothberg; Miranda Routledge; Will Spinks; John Town; Jon Walker; John Whittaker; Peter Winter.

Malcolm Brown (for item 07/73); Fidelma Hannah (for item 07/76 and 07/77); Andrew Burgess (for item 07/81); Professor Chris Backhouse (for item 07/82)

Apologies for absence were received from:

Penny Coates; Paul Glover; Dr Cyril Woodruff.

07/71 Chair’s Welcome

The Chair of Council welcomed the following individuals for whom, formally, this was the first meeting of Council :

· new members of Council - Ric Parker (absent), David Gerty and David Goss.

· members of staff – Will Spinks, Chief Operating Officer who had joined the University from Astra Zeneca, Dr Jennifer Nutkins and Paula Powditch, Acting Director of Finance.

· John Whittaker from the Business School who had agreed to assist with the follow-up review of Council. Unlike the first review which had been based primarily on questionnaires, John Whittaker would be observing meetings and interviewing individual members. The Chair was keen to ensure that Council members were properly involved in, and contributing to, the wider governance of the University and as such had requested a thorough review of committee membership. It was expected that this would be undertaken once the current review of the committee structure, being led by the Deputy Vice-Chancellor, had been completed.

Dr Jennifer Nutkins had agreed to take over the role of Secretary to Council from John Town who was due to retire at the end of the year. Council formally APPROVED her appointment as Secretary to Council.

The Chair of Council congratulated the University on being part of the consortium chosen to host the Energy Technologies Institute.

07/72 Minutes

Minutes of the Meeting of Council held on 24 July 2007 [COUN07-M3] were CONFIRMED.

07/73 Matters Arising

07/73.1 Depreciation Charge

Further to Minute 07/37.2, the Chair reported that the Deputy Finance Director had forwarded the depreciation budget 2007/08 to him and that he was satisfied with the explanation provided.

07/73.2 Residential Provision

COUN07-P70

The Vice-Chancellor introduced the item by reminding members that, at its meeting in July, Council had approved a framework of recommendations arising from the review of residential provision. One of the objectives of the review was to reach a break-even position for imago Services. In order to achieve this, it had been originally suggested that the number of restaurants and kitchens should be rationalised to four by 2011. Subsequently, it had come to light that this would not be achievable. The University must now identify other ways to achieve a break-even position and the detail needed to be discussed as part of a process in which the students were fully involved.

Separately, Loughborough Students’ Union (LSU) had voiced concern about the plans to reduce the number of restaurants and kitchens to four by 2011 as they believed this would have an adverse impact on the quality of the Loughborough Student Experience. To this end, the LSU President had produced a paper for Council, to which he was invited to speak. In his summary, he made the following comments:

· LSU embraced the need to provide more flexible accommodation options and recognised that catered halls were not preferred by everyone. However, the Hall Community Experience, in which separate dining halls played a key role, was believed to be central to the Loughborough Student Experience.

· LSU understood the economics and financial targets and were in agreement with the University that imago Services should achieve a break-even position on a sustainable basis.

· LSU wanted to work constructively with the University to achieve the best outcome. Members of EMG were held in high regard and, whilst feelings had been strong on both sides, discussions to date had been conducted professionally and LSU was confident that a way forward had been identified.

The Vice-Chancellor affirmed to Council that the University cared about the Loughborough Student Experience. In response to the paper produced by LSU, it was noted that:

· the University was committed to reviewing the vision and removing the specific targets (i.e. four by 2011) for rationalising the number of restaurants and kitchens. EMG continued to support the position previously agreed by Council that the original report provided a framework within which next steps could be agreed. Detailed discussions regarding the way forward to the satisfaction of all parties would take place at Residential Provision and Management Sub-Committee (RPMC) on which increased student representation had been agreed.

· the University supported statements 2-3 in the paper (with the clarification that “imago” should read “imago Services” in the third bullet point of statement 3).

In response to further questions from student representatives it was accepted that the references to “the hub of the Edward Herbert building” and the words “four main” (eating areas) could be removed from the vision statement. It was also agreed that RPMC might need to meet more frequently.

Council was satisfied that the main thrust of the proposals put forward by LSU was not inconsistent with the framework of recommendations approved in July. However, it was noted that detailed implementation of the recommendations would be managed by RPMC.

07/73.3 Other Matters Arising

Further to Minute 07/58, the Chair reported that he had decided not to pursue an increase in the number of Pro-Chancellors. He hoped to be able to bring forward information relating to succession planning for the position of Chancellor to the next meeting.

07/74 Chairman’s Introduction and Duties and Responsibilities of Members of Council/Committee Guidance

COUN07-P71

Following the review of the effectiveness of Council, it had been agreed that, at the first meeting of each academic year, Council should note its duties and responsibilities and consider the key issues likely to emerge in the year ahead (an annual agenda, available on the web had been created to assist with the latter). As the governing body, Council was ultimately responsible for approving, and monitoring progress towards achievement of, the Strategic Plan and for ensuring that the University was well-managed. In particular, Council was expected to ensure that the appropriate financial controls werein place.

07/75 Advancement

COUN07-P72 and COUN07-P73

The Vice-Chancellor presented an update on activities since the last meeting. The current focus was to ensure that Advancement activity was properly embedded across the University. To this end, the three Deans had attended a conference in Canada to see how similar activity was incorporated into the organisational culture and how it might work in the UK. It was evident that “Advancement” was a large-scale, resource intensive activity in the US. Effectively incorporating advancement into the University’s activities would be a “long-game” but it was the right time to start. The Deans judged there to be sufficient interest and enthusiasm amongst staff and the alumni network to make real progress in this area. Advancement had been discussed at a recent meetings of HoDs and HoSS and a number of useful suggestions had been made. These would be discussed with Ron Gray when he joined the University in January. The University would be adopting a systematic and disciplined approach to Advancement initiatives. Only those activities which fully supported the overall strategic direction of the University would be developed.

A member commented that, whilst following this type of activity seemed to be an inevitable consequence of the way higher education was developing in the UK, there was a risk that it could change the University’s fundamental character. The Chair reassured Council that the University would have to engage with Advancement activity in a way that was consistent with its character. The overall direction of the University would continue to be driven by its strategic goals. The focus of Advancement initiatives would be to seek philanthropic support for activities already planned and incorporated into the Strategic Plan.

Council APPROVED proposals for realigning the day-to-day activities of the Vice-Chancellor to begin to release time for Advancement. This would take the form of greater delegation of operational matters to the Deputy Vice-Chancellor and a reduction of the Vice-Chancellor’s involvement in internal management activities. Council also APPROVED that, in relevant contexts, the following expanded titles could be used:

Vice-Chancellor and President

Provost and Deputy Vice-Chancellor

07/76 University Planning

07/76.1 Strategic Plan

COUN07-P74

Council NOTED a report on the monitoring arrangements for implementation plans which specifically linked executive responsibility to named individuals. The annual process of producing Departmental Development Plans had been extended to cover Support Services as well as Academic Departments. Council welcomed the work being undertaken by the University to coordinate the implementation of the Strategic Plan and integrate it with other planning processes.

07/76.2 Corporate Planning Statement

COUN07-P75

Council APPROVED the Corporate Planning Statement for submission to HEFCE. The approval of the Corporate Planning Statement now formed part of the “Single Conversation” with HEFCE and would be submitted alongside the Financial Accounts and the Five Year Financial Forecasts. In future, the format of the Corporate Planning Statement would be closely aligned to the new Strategic Plan.

Members of EMG answered questions from Council on their specific areas of responsibility. Several members commented that issues of environment/sustainability were not as highly featured as they might have expected. It was AGREED that this should be revisited. Action: Deputy Vice-Chancellor and Planning Office

07/76.3 Key Performance Indicators

COUN07-P76

Council RECEIVED an update on Key Performance Indicators (KPIs). The commentary provided an explanation for significant fluctuations in the data. Further work was being undertaken in relation to the development of financial viability and sustainability KPIs. During discussion, members commented on specific KPIs as follows:

· It would be useful if provisional student numbers for the current year could be included in future reports.

· 1.1: Income from international students as a percentage of total fees: this KPI was potentially misleading as the dip in the figure last year resulted from the increased fees for UK/EU undergraduates not a decline in international student income. It was AGREED that this KPI would be kept under review.

· 3.1.3 Full-time postgraduate UK/EU student intakes and targets: the decline in recent years reflected the national picture. It was hoped that, in future, this may be countered by a growth in flexible part-time provision and employer/employee engagement.

· 3.6 NSS Student Survey: an excellent overall result had again been achieved but, the scores for assessment and feedback remained noticeably lower than the other categories. It was confirmed that this was the case across the sector and that the University had introduced a number of initiatives to try to address this over the past two years but it was a particularly challenging issue.

· 5.2 Sports Development Centre: Gross Income and Expenditure: Concern had been expressed at Senate regarding the deficit in the SDC. This was largely due to increasing utilities costs and the costs of running the swimming pool which would be subject to an external review. In response to a suggestion that this review be extended to cover other areas of the SDC, the Deputy Vice-Chancellor confirmed that he believed this to be unnecessary. The £0.5M investment in the Olympics would be included in future expenditure data and the University was monitoring the rising cost of utilities. It was important to recognise the benefits the SDC brought to the University.

07/77 Revisions to Committee Structure

COUN07-P77

The Deputy Vice-Chancellor introduced a paper which proposed changes to the University Committee structure intended to improve efficiency and increase transparency. The proposals had been discussed and agreed by Senate. It was confirmed that Hall Fees would be discussed and agreed at RPMC. Council APPROVED the following recommendations:

· The abolition of Resources and Planning Committee with effect from 1 January 2008.

· That Estates Management Committee, Performance Monitoring Group, Research Performance Monitoring Group, Costing and Pricing Committee and Operations Sub-Committee be converted to Joint Committees of Senate and Council with appropriate amended titles, membership and terms of reference.

· That the CIS, CS, Media and Library User Groups report directly to Operations Committee (new title for Operations Sub-Committee).

· That the major project procedures be amended, assigning responsibility for Stage E final approval of major projects as follows:

o For projects less than £1M – Vice-Chancellor or Deputy Vice-Chancellor

o For projects £1M-4M – Vice-Chancellor or Deputy Vice-Chancellor and Chair of Council

o For projects exceeding £4M – Council.

07/78 Risk Management

07/78.1 Consolidated Statement on Risk Management and Statement of Corporate Governance

COUN07-P78

Council RECEIVED and APPROVED the Consolidated Statement on Risk Management 2006/07 and NOTED the Statement of Corporate Governance.

07/78.2 2006/07 Risk Schedule and Risk Register

COUN07-P79

Council APPROVED the 2006/2007 Risk Schedule and Risk Register.

07/78.3 Potential Amendment to Statute XII (The Council)

Council NOTED a recommendation from the Audit Committee following the Risk Management Internal Audit Report 08/07 that 'the University ensure that the role of Council in respect of risk management is clearly defined in the relevant statutory document’.

07/79 University Finance

07/79.1 University Budget 2007-08

COUN07-P80

Council NOTED the latest position for the 2007-08 Budget. The forecast was £1.6M better than originally expected, bringing the surplus to 2.7% of turnover (i.e. closer to the financial target (3%) set by Council). This was largely due to student intake targets being achieved and Council recorded its thanks to all involved in the recruitment process.

07/79.2 HEFCE Five Year Financial Forecast

COUN07-P80

Council APPROVED the five year financial forecast for submission to HEFCE.

07/80 University Accounts

07/80.1 Financial Statements

COUN07-P81

Council RECEIVED the University Financial Statements for the year ended 31 July 2007 and APPROVED the adoption of the accounts, subject to the Chair of Council and the Treasurer agreeing minor amendments to the Treasurer’s Report.

The Treasurer had given a detailed briefing to members of Council in advance of the meeting but the following issues were highlighted during discussion:

· The costs included for the pension schemes represented a snapshot as at the end of July and did not necessarily reflect the long term position. The increasing cost of pension funds was one of the biggest uncertainties faced by the University in terms of financial planning. The University contributed to two pension schemes – the Local Government Superannuation Scheme (LGPS) and the Universities Superannuation Scheme (USS) – which were treated differently in the Accounts. Paragraph 5 of the Statement of Principal Accounting Policies (page 10 of the Accounts) provided further explanation regarding the reporting conventions for each scheme.

· The exceptional item in the Consolidated Income and Expenditure Account was the payment made to UPP in relation to Student Accommodation and disguised an otherwise good result.

The Chair of the Audit Committee confirmed that the External Auditors were satisfied with the Accounts. There had been some atypical transactions during the reporting period but agreement had been reached on how to record them in the Accounts.

07/80.2 Financial Compliance Review 2006-07

COUN07-P83

Council RECEIVED the Financial Compliance Review 2006-07.

07/80.3 Analysis of Research Income 2006-07

COUN07-P84

Council RECEIVED a summary of research income in 2006-07.

07/81 Capital Programme

07/81.1 Update on Major Building Projects

COUN07-P85

Council welcomed Andrew Burgess, Director of Estates. Although Roy Hill was not present at the meeting, Council wished to formally record thanks for all his hard work and wish him well for his retirement.

Council RECEIVED the update on major building projects. The Deputy Vice-Chancellor specifically drew Council’s attention to the following projects:

· Low Carbon Showcase Community – potential for an exemplar building producing low carbon emissions

· East Park Stadium

· East Park Design Centre involving Design and Technology, LUSAD and ESRI.

· The relocation of ESRI and CasCaid and the refurbishment of the Holywell Building in preparation for the ETI – externally funded by EMDA.

The LSU members specifically requested an opportunity to be involved in the Hazlerigg-Rutland redevelopment project.

07/81.2 Sport Park

COUN07-P86

Council RECEIVED a progress report from the Chief Operating Officer which confirmed:

· External funding contributions were being sought for the project but the University would have to make an initial contribution in excess of £10M.

· Negotiations with tenants were underway.

· The design had been agreed with representatives of potential tenants.

The Chair of Council was assured that the expenditure was consistent with the University’s cash budgets.

Due to the tight timescale of the project, Council AGREED to DELEGATE authority to the Chair to move the project to Stage E. The Treasurer confirmed that the project would continue to be monitored by the Independent Review Group in advance of sign off by the Chair of Council.

07/82 Internationalisation

Council welcomed Professor Chris Backhouse, recently appointed as Director of Internationalisation Strategy, to the meeting. Internationalisation was a central theme of the Strategic Plan and Professor Backhouse was currently visiting staff across the University to explain the vision and its implementation.

Whilst Internationalisation was seen as a long term change for the University, Professor Backhouse was currently pursuing a number of shorter-term initiatives in relation to both student mobility/experience and international partnerships.

In response to a question from the Chair, Professor Backhouse acknowledged that over reliance on a particular student market (i.e. China) could leave the University potentially vulnerable if the political climate in that country changed. The University would like to see a more diversified student population and was pursuing a number of initiatives to achieve this. However, the subject mix offered by Loughborough was attractive to Chinese students and therefore China was expected to remain an important market for the foreseeable future. Professor Backhouse was working closely with LSU and the Academic Registrar to identify ways in which the experience of international, and specifically Chinese, students could be improved. Council felt it would be useful to receive a report from LSU on its activities in this area at a future meeting. Action: President LSU

07/83 Revision of Undergraduate Bursary Scheme and Access Agreement

COUN07-P87

The Academic Registrar introduced a paper outlining revisions to the Undergraduate Bursary Scheme and Access Agreement. The revisions had been proposed following amendments to government policy in relation to student finance. The University wanted to position its bursary scheme appropriately in terms of competitor institutions and the cost of administering the scheme. The proposed revisions were also intended to simplify the scheme so that it could be more easily understood by students and their parents. No student would be disadvantaged by the proposed changes but students from middle income families would be slightly better off.

The University had re-examined the forecasting of fee income and bursary expenditure based on the outcomes for 2006/07 and, as a result, wished to slightly reduce the percentage of additional (tuition fee) income spent on the bursary scheme from 19% to 17%. This required a further amendment to the Access Agreement and it was hoped that OFFA would agree to the change.

Council APPROVED the revisions to the Undergraduate Bursary Scheme and Access Agreement for submission to OFFA.

07/84 Audit Committee

COUN07-P88

Council RECEIVED the report from the meeting of the Audit Committee held on 1 November 2007 and NOTED the following items:

1. Audit Committee opinion on the Annual Risk Management Report

2. Audit Committee opinion on the Internal Audit Annual Report

In addition, the Chair of the Audit Committee drew Council’s attention to the following items:

· Audit Committee was generally satisfied with the Risk Management procedures adopted by the University. There was evidence that these procedures were being embedded within departments and the Committee looked forward to further progress in this area in the future. The Committee welcomed the proposed realignment of the Risk Register with the Strategic Plan.

· Audit Committee had commented that the University Personnel function appeared to be reactive, rather than proactive. It was hoped that the recruitment of the Chief Operating Officer and the new Director of HR would present real opportunities for enhancing operations in this area.

· Significant developments had been made in both Health and Safety and IT. The Audit Committee continued to monitor activity in both areas.

· Audit Committee had conducted a self assessment exercise – ratings were generally satisfactory although members had identified a need for improved training and induction.

· Audit Committee continued to receive briefings from the internal auditors regarding developments in the sector which was proving to be a useful activity.

07/85 Matters for Reports

07/85.1 Pro-Vice-Chancellor (Research)

(i) Research Grants and Contracts

COUN07-P89: NOTED

(ii) Research Outputs

COUN07-P90: NOTED

07/85.2 Pro-Vice-Chancellor (Teaching)

(i) Recruitment for 2008/09 Entry

COUN07-P91: NOTED

(ii) Other PVCT Matters

COUN07-P92: NOTED

07/85.3 Pro-Vice-Chancellor (Enterprise)

COUN07-P93: NOTED

07/86 Vice-Chancellor's Business

07/86.1 Recent Developments at the University

i. The Vice-Chancellor had recently returned from a Board of Trustees meeting at BUE. The University could be proud of its influence to date.

ii. The University had been awarded its sixth Queen’s Anniversary Prize in recognition of its vehicle, road and driver safety research.

iii. The University had been short listed for two 2007 Times Higher Awards – Best Student Experience and Outstanding Support for Overseas Students.

iv. The University had been one of only three universities to take part in the 11 Million Take Over day – a national event to raise the profile of school children’s needs. All involved had judged the event to have run successfully.

v. Congratulations were recorded to Professor Rachel Thomson, IPTME, who had been awarded a £4.3M grant. A £5.4m award had also been received for doctoral training in regenerative medicine.

07/86.2 Policy Developments for HE in the UK

COUN07-P94

i. Fees Review: The Conservative party had called for an early review of tuition fees for undergraduate home students.

ii. HEFCE had recently announced its decision to withdraw funding for Equivalent or Lower Qualifications. There had been no consultation within the sector and, whilst Loughborough was barely affected in terms of loss of income, the University would be supporting other institutions in the debate.

iii. Sainsbury Review “Race for the Top”: Lord Sainsbury’s recently published review on the Government’s Science and Innovation Policies would have significant implications for the HE sector, particularly with regard to approaches to promoting innovation and knowledge transfer. The Technology Strategy Board would be given increased powers. Future rounds of HEIF would be allocated on metrics (rather than a bidding process).

07/87 Loughborough Students’ Union: Review of Constitution

COUN07-P95

Council RECEIVED a progress report on the Review of the Constitution of Loughborough Students’ Union.

07/88 University Ordinances

07/88.1 New Amendments

Council APPROVED:

i. Repeal of Ordinance VI (Appointment of Academic and certain Academic Related Staff)
COUN07-P96

ii. Amendment to Ordinance XII (Age of Retirement of Staff)
COUN07-P97

iii. Amendment to Ordinance XXXIX (Ownership & Commercial Exploitation of Intellectual Property)
COUN07-P98

07/88.2 Confirmation of Amendments

Further to minute 07/46.2 and papers COUN07-P49 to COUN07-P52 , Council CONFIRMED amendments to Ordinances VII, XVI, XVII and XXIII.

07/89 Membership of Council Committees

07/89.1 Council Committees and Joint Committees with Senate

COUN07-P99

Council NOTED appointments to vacancies on Council Committees and Joint Committees with Senate.

07/89.2 LSU Appointments to Council Committees and Joint Committees with Senate

COUN07-P100

Council NOTED LSU appointments to Council Committees and Joint Committees with Senate.

07/90 Resources and Planning Committee

COUN07-P101

Council RECEIVED the report from the meeting of Resources and Planning Committee held on 9 November 2007 and APPROVED Tuition Fees for 2008/09.

07/91 Health, Safety and Environmental Office: Annual Plan

COUN07-P102

Council NOTED the annual plan for the Health, Safety and Environmental Office.

07/92 Loughborough University Development Trust

COUN07-P103

Council RECEIVED a report from the Loughborough University Development Trust and summary financial statements for the period to 31 July 207.

07/93 Chair’s Action

Council NOTED that Chair’s Action had been taken to approve the following items between meetings:

(i) Tuition Fees

(ii) Terms and Conditions relating to Undergraduate Bursaries

(iii) Establishment of Prizes

(iv) Appointment of Associate Dean (Teaching) (Social Sciences and Humanities)

(v) Appointment of Associate Dean (Teaching) (British University of Egypt)

07/94 University Court

Council NOTED that the 2008 Annual Meeting of the University Court would be held on Friday 15 February 2008.

07/95 Graduation Ceremonies 2007/08

Council NOTED the dates of Graduation Ceremonies to be held in the academic year 2007/08 as follows:

Monday 17 December 2007

Thursday 17 July, Friday 18 July, Monday 21 July and Tuesday 22 July 2008

07/96 Reports of Committees

Council RECEIVED reports from the following Committees:

i) Health, Safety and Environment Committee (31 October 2007) [COUN07-P104]

ii) Performance Monitoring Group – 5 October 2007 [COUN07-P105]

07/97 Academic Officers, Directors and Heads of Department

COUN07-P106: NOTED

07/98 Dates of Meetings in 2007/08

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

Friday, 18 January 2008 (1.30pm)
Friday, 4 April 2008 (10.15am)
Tuesday, 22 July 2008 (2.30pm)