The Council

COUN05-M1

Minutes of the 314th meeting of the University Council held on Friday 1 April 2005.

Members:

Sir Bryan Carsberg (Chair); Dr Memis Acar; Phil Blake (from item 05/12); Jim Blood;
Dr Roger Boissier; Professor Russ Bowman; Peter Davenport; Venu Dhupa (ab);

Professor Marianne Gilbert; Professor Peter Golding (ab); John Harper (ab); Peter Haslehurst; Norma Honey; Sir John Jennings; Rob Kirkwood (ab); Dr Marsha Meskimmon; Mansoor Moghal;
Bill Moss; Jim Mutton; Professor Richard Parry-Jones; Simon Proffitt; Professor Phil Roberts;
Jackie Strong (ab); Margaret Tomlinson; Professor Sir David Wallace; Bob Wilson; Dr Cyril Woodruff; Dr Alan A Woods

In attendance:

Professor Chris Backhouse; Professor Morag Bell; Professor Neil Halliwell;
Professor Terry Kavanagh; Michael Pearson; John Town; Jon Walker; Miranda Whyte

Apologies for absence were received from:

Professor Peter Golding and John Harper

05/1 Minutes

It was RESOLVED to CONFIRM the Minutes of the Meeting of the Council held on 21 December 2004 [COUN04-M9].

05/2 Matters Arising

Further to Minute 04/139, it was NOTED that the University had received notification from OFFA (Office of Fair Access) that the Access agreement had been approved on 11th March.

05/3 Strategic Development of the University

COUN05-P1

The Deputy Vice-Chancellor presented the agenda paper and alerted Council to the following additional information:

· The public consultation (Supplementary Planning Document stage) for both East Park and Student Housing had been completed and the Council officers’ report would be submitted to Cabinet in May.

· Various models of Science Parks throughout the UK had been analysed to try to identify a best-fit model to serve local needs. Charnwood Borough Council would be presenting options for the Science Park to Cabinet in September. The University’s elaborated Local Development Framework (LDF) submission would be submitted in May and was expected to be made public in August prior to the Borough Council’s September proposal of Science Park options: at this point, the University’s LDF submission would be in the public domain. Council would be kept informed of developments.

At its next meeting, the Strategic Review Group would revisit its original report with a view to adding additional recommendations in the following areas:

1. Human Resource Strategy and long-term sustainability (this was supported by the Treasurer)

2. rewarding staff in line with institutional objectives

3. connections/collaborations with other Universities (UK and abroad)

Council was extremely supportive of the report and the general direction of the Strategic Review. It was AGREED that it would now be appropriate to communicate the objectives of the Strategic Review to a wider audience within the University. ACTION: Deputy Vice-Chancellor

05/4 Financial Report 2004/05

COUN05-P2

The latest financial report predicted a surplus, before exceptional items, of just under £1M. This was less than had been originally budgeted and was largely attributable to reduced international fee income (against business plans), mitigated to some extent by Faculty savings (not filling vacant posts). Other significant contributing factors included vacant hall spaces and the consequent effect on retail outlets, asbestos removal costs resulting from an ambitious capital programme and the USS pension scheme liability for part-time staff.

With regard to international students, all UK universities as well as many American and Australian institutions had been affected by a downturn in recruitment in 2004. The reasons for this were not fully known but were thought to be partly attributable to a growth of opportunities in the Far East, tighter visa controls, adverse exchange rate movements and a perception of Britain as being an expensive place to study and live. Loughborough University was taking a number of steps to try and address these issues for 2005. The University was operating in a highly competitive market for international students and an increasing number of countries were offering to teach in English, sometimes at marginal cost or even free of charge. The University needed to understand its markets and manage its products and pricing structures accordingly.

05/5 HEFCE Recurrent Grant for 2005/06

COUN05-P3

The University’s total allocation from the Funding Council for 2005/06 was just over £50M, an increase of 5.87%. It was somewhat disappointing that the core teaching grant had only increased by 1.13%. However, it was pleasing to note increased allocations for research and for Widening Participation (directly linked to past performance in recruiting and retaining disadvantaged students). On paper, the Human Resources allocation appeared to have increased greatly but this had, in effect, been taken from other sources.

The way in which universities were funded was changing over time. From 2006/07, the Funding Council Grant would only account for one third of the University’s total income, with roughly one third coming from tuition fees (international recruitment plus top-up fees for UK/EU undergraduates), one sixth from research grants and one sixth from commercial activities.

05/6 HEFCE Financial Health Indicators

COUN05-P4

The Bursar introduced the summary statistics from the 2004 HEFCE Financial Forecasts and drew Council's attention to the following:

· The University was in the top quartile for both cash flow and liquidity. However, it was also in the top quartile for borrowing. The Treasurer’s Committee would be considering options to reduce both liquidity and borrowing levels.

· The annualised servicing cost (cost of borrowing) was closely monitored by HEFCE.

· The University’s expenditure on staff was lower than the mean for the sector. The reasons behind this were unclear. The Bursar was investigating similar institutions to try and draw comparisons.

Overall, when benchmarked against the sector, the statistics showed the University to be in a healthy financial position.

05/7 Capital Programme

05/7.1 Progress Report

COUN05-P5

[This minute has been partially redacted due to commercially sensitive information]

Council received a progress report on the Capital Programme. Two projects were discussed in detail.

Burleigh Court Extension

Tenders had now been received and the overall budget for the project had increased. The project was particularly complex as Burleigh Court intended to remain operational throughout (expected completion date June 2006). The overall Business Plan had been the subject of a careful review earlier in the day.

Council APPROVED the budget. Funding for the project would be provided by way of a loan or share capital on the University to imago @ Loughborough Ltd.

Health and Exercise Bio-Sciences Labs

The scope for a new building to house staff from the School of Sport and Exercise Sciences (plus others) was currently being discussed. The project would cost at least £10M, of which £6M was expected to come from SRIF. The University would be engaging in fundraising efforts for some of the remainder.

05/7.2 New Residential Accommodation

COUN05-P6

The University wished to make provision for an additional 1000-1200 en-suite bed-spaces on Car Park 7. Some members queried the provision of additional bed spaces when there were currently vacant spaces in hall. Whilst the main contributing factor to the vacancies in halls was the unexpected downturn in international student recruitment, it was also felt that students wanted better quality accommodation (e.g. en-suite facilities) than was currently available in some of the older halls. Because of this and local authority standards, a number of the existing rooms would require refurbishment or replacement over the next 10 years. Therefore, it would be several years before the full benefits were realised from the increase in bed spaces from the current proposals.

Outline proposals for 2500 additional bed spaces had already been submitted to Charnwood Borough Council – the current proposals represented the first phase of this. Taking a phased approach to increasing the total number of beds on campus would enable the University to monitor the changing student profile and manage the risk of occupancy. The proposals had been discussed at length by the Working Party on Halls Life Expectancy, Operations Sub-Committee and Resources and Planning Committee before being presented to Council. The number of bed-spaces was justifiable and the location was appropriate. Further consideration of detailed arrangements for financial procurement was required with the object of protecting the University from financial risk whilst retaining operational control of the halls.

Council APPROVED the framework of the project as presented in the agenda paper and looked forward to receiving more detailed proposals in due course.

05/8 CUC Governance Code and Principles

COUN05-P7

Based on guidance from CUC, the Registrar presented preliminary recommendations as follows:

(a) Adoption of a Statement of Primary Responsibilities. Council considered a draft and AGREED that detailed comments should be forwarded to the Registrar. A revised document would be received at the next meeting in July. ACTION: Registrar

(b) Council APPROVED membership of a Working Group to make recommendations on conducting a Review of the Effectiveness of Council: Sir Bryan Carsberg (Chair), Professor Russ Bowman and Simon Proffitt.

Council also AGREED that the Working Group should oversee the Review of the Effectiveness of Council once arrangements had been approved. ACTION: Working Group to meet in July

(c) Council APPROVED a recommendation that Nominations Committee prepare written descriptions of the roles and capabilities required of new members of Council and that vacancies be published both within and outside the University. ACTION: Registrar

(d) Council AGREED that it would be useful for the University to devise Key Performance Indicators (KPIs) against which Council members could assess the activity of the University. It was essential that internal KPIs were linked to the University’s mission and objectives. A balanced scorecard might be a useful measurement tool. It was suggested that Richard Parry-Jones, Alan A Woods and Bob Wilson should be consulted during the process of devising the internal KPIs. It would also be useful to identify appropriate external indicators to help the University to benchmark against comparable institutions. ACTION: Executive Management Group

05/9 Nominations Committee

Council APPROVED the appointment of Professor Peter Golding as the elected staff member of Council and Norma Honey as the lay member of Council to the Nominations Committee for the period 1 April 2005 to 31 March 2006.

05/10 Audit Committee

COUN05-P8

[This minute has been partially redacted due to sensitive health and safety information]

Council RECEIVED a report of the meeting of the Audit Committee held on 10 February 2005.

05/11 Treasurers Committee

COUN05-P9

The Treasurer presented the report of the meeting of the Treasurer's Committee held on 15 March 2005 and drew particular attention to the following items:

§ Directors and Officers Insurance: Council APPROVED an additional annual Contribution of £2,500 to increase cover to £10M

§ Debtor Management (item 3.2 of report refers)

§ Endowed/Capital Funds (item 3.3 of report refers)

§ Banking Loans (item 5.2 of report refers)

05/12 Matters for Report

05/12.1 Pro-Vice-Chancellor (Research)

(i) Research Grants and Contracts

COUN05-P10

The PVC(R) presented the half-year report on research grant and contract applications. The University had experienced a 50% increase in the number and value of applications in 2001/02 which had been maintained at steady state ever since. This indicated that the University was probably working near to capacity in this area and that a further significant increase would only be achieved with an increase in academic staff, particularly in areas where there was the ability to attract significant external funds. This issue would be considered by the Strategic Review Group.
ACTION: Strategic Review Group

The University was on track for a record year in terms of new research grants and contracts. As at the end of March, the value of new grants and contracts exceeded the total for the previous year. Whilst this was good news, the PVC(R) warned that as funding moved to fewer larger grants awarded the amount could drop in following years as work began on these research projects.

(ii) Update on RAE 2008

As previously reported there would be 15 main panels, supported by 67 sub-panels (five of which would be chaired by members of staff from Loughborough) in the 2008 RAE. The sub-panels were currently developing their assessment criteria and working methods which would be released for consultation in May/June – final versions were expected to be published in the Autumn.

(iii) HEFCE Capital Funding for Research and Infrastructure (SRIF3)

The University had been allocated £10.7M of which £6M was earmarked for the Health and Exercise Bio-Sciences Labs (see 05/7.1). The remaining £4.7M had been provisionally allocated to departments who had submitted bids for equipment and infrastructure. Final allocations would be approved by Operations Sub-Committee at the 11 April meeting.

05/12.2 Pro-Vice-Chancellor (Teaching)

(i) Recruitment for 2005/06 entry

COUN05-P11

The PVC(T) reported the latest applications data:

· UK/EU undergraduate applications had increased 15.6% on the previous year. Increases were spread across all three Faculties and were particularly notable in the departments of Chemical Engineering, Chemistry and Physics. The challenge for the University was to control intakes to the same level as 2004/05.

· UK/EU postgraduate applications were broadly comparable with 2004/05 and the University anticipated further increases later in the year.

· International applications were slightly down on the previous year (undergraduate 7.5% and postgraduate 4.7%). The challenge for the University was to convert applications to intake, particularly as the country profile was changing – less applications from China and more from countries with a historically low conversion rate such as Nigeria and Pakistan. Disappointingly, the Home Office had increased the cost of renewal visas which could be potentially damaging for universities across the UK. The Vice-Chancellor had registered a protest with the Home Secretary. Loughborough Students’ Union had also picked up on this issue and would work in partnership with the University. Council supported the stance that the University was taking and suggested that it might be appropriate to lobby Select Committees and MPs.

(ii) Centres for Excellence in Teaching and Learning

The University had been successful in bidding for the following Centres for Excellence in Teaching and Learning at Loughborough:

· Centre for Excellence in Employer-linked Engineering Education

· A Centre for Excellence in the Provision of University-wide Mathematics and Statistics Support (in collaboration with Coventry University)

05/12.3 Director of Business Partnerships, Innovation and Knowledge Transfer

COUN05-P12

Council RECEIVED the report from the Director of Business Partnerships, Innovation and Knowledge Transfer.

05/12.4 Director of External Relations

COUN05-P13

Council RECEIVED a report from the Director of External Relations and noted the following additional information:

· Following the approval of its Access Agreement, the University was embarking upon a campaign of internal briefings and information dissemination to ensure that all staff were aware of the position with regard to tuition fees, bursaries and scholarships. An analysis of other universities’ schemes was under way which had so far shown that Loughborough University was placed exactly where it wanted to be. The University would continue to monitor market needs closely.

· The External Relations Office was working closely with the Strategic Review Group to agree a communications strategy for the Strategic Review of the University concentrating, in particular on discussing the plans with local residents.

05/13 Vice-Chancellors Report

i) It was with sadness that the Vice-Chancellor reported the death of a Chinese student in a car accident on Ashby Road. The University had invoked its usual procedures for dealing with student death and the parents were being fully supported by several members of staff. Council recorded its condolences to the student’s family and friends. Council also expressed thanks to Laurence McKay, Jonathan Clapham, Wendy Llewellyn and her staff for the professionalism and sympathy with which the arrangements were being handled.

ii) The University had recently been subject to the quinquennial HEFCE Audit which assessed institutions under five headings according to a four point scale. Verbal feedback had rated the University in the first (top) category under two headings (Financial Management and Strategic Planning) and in the second category for the other headings.

iii) The Vice-Chancellor reported on recent student successes in sport.

05/14 Barclays Bank PLC – Guarantee Facility

COUN05-P14

Council APPROVED the Guarantee Facility given by Barclays Bank PLC.

05/15 Dealing Mandate with Fortis Bank

COUN05-P15

Council APPROVED the Dealing Mandate with Fortis Bank.

05/16 Open College Network South East Midlands Limited (OCNSEM)

COUN05-P16

Council APPROVED the disposal of OCNSEM and its accumulated assets to NEMCON on terms to be agreed by the Bursar.

05/17 Loughborough Students’ Union (LSU)

05/17.1 LSU Constitution

Council NOTED that, in accordance with Ordinance XIX, the Registrar would be reviewing the LSU Constitution and bringing forward recommendations to the meeting in July.

05/17.2 LSU Annual Accounts

COUN05-P17

Council APPROVED the LSU Annual Accounts for the year ending 31 July 2004.

05/18 Committee Membership

COUN05-P18

Council RATIFIED appointments to Council Committees and Joint Committees with Senate.

05/19 Resources and Planning Committee

COUN05-P19

Council RECEIVED the reports from the meetings of Resources and Planning Committee held on 28 January and 11 March 2005 and APPROVED the recommendations for tuition fees as follows:

· UK/EU undergraduate - £1,175.00

· UK/EU taught postgraduate and research programmes - £3085.00 (variations for some departments are being developed)

05/20 Senate

COUN05-P20

Council RECEIVED the report from the meeting of Senate held on 2 March 2005 and APPROVED the following recommendations:

.1 Programme Proposals (as detailed in the agenda paper)

.2 Policy and Guidelines on the use of Illicit Drugs

.3 Establishment of New Prizes, Amendments to Existing Prizes and Discontinuation of Prizes

05/21 Common Seal

COUN05-P21

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

05/22 University Fairtrade Policy

COUN05-P22

Council NOTED that the Chair of Council had taken Chair’s Action in approving the Fairtrade Policy and that the University was now fully signed up to the initiative.

05/23 Reports of Committees

COUN05-P23

Council RECEIVED a report from the Performance Monitoring Group – 3 March 2005

05/24 Date of Next Meeting

Tuesday 19 July (pm)

Author - M T Whyte

Date – April 2005