The Council

COUN05-M3

Minutes of the 316th meeting of the University Council held on Tuesday 19 July 2005.

Members:

Sir Bryan Carsberg (Chair); Dr Memis Acar; Phil Blake; Dr Jim Blood; Roger Boissier;
Professor Russ Bowman; Graham Chivers (ab); Peter Davenport; Venu Dhupa; Professor Marianne Gilbert; Professor Peter Golding (ab); John Harper; Peter Haslehurst; Norma Honey (ab);
Sir John Jennings (ab); Rob Kirkwood; Dr Marsha Meskimmon; Mansoor Moghal; Dr Bill Moss;
Jim Mutton; Professor Richard Parry-Jones (ab); Simon Proffitt (ab); Professor Phil Roberts; Jason Scott; 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; Malcolm Brown (for item relating to Minute 05/49); Dr Sandie Dann; Chris Earle (for item relating to Minute 05/54); Professor Neil Halliwell; Professor Terence Kavanagh; Professor Ron McCaffer; Professor Ken Parsons; Michael Pearson; Dr Fytton Rowland; Gab Stone; John Town; Jon Walker; Miranda Whyte

Apologies for absence were received from:

Graham Chivers; Sir John Jennings, Simon Proffitt and Jackie Strong


05/41     Business of the Agenda

Item 18 [COUN05-P59] on the Agenda relating to Travel and Expenses Policy was withdrawn.  Item 23 on the Agenda relating to the Health, Safety and Environmental Committee was unstarred.

05/42     Minutes

It was RESOLVED to CONFIRM the Minutes of the Meeting of the Council held on 1 April 2005 [COUN05-M1].

05/43     Matters Arising

05/43.1     Council Steering Group

[minute redacted because of confidential material].

05/44     Strategic Review Group

05/44.1     Progress Report

COUN05-P30

The Deputy Vice-Chancellor (DVC) introduced an update report on the Strategic Review of the University and the Estates Strategy which had been prepared for the last meeting of Senate.  Council welcomed the update and supported the approach being adopted by the University in moving towards greater stability and a sustainable position for the future.  In asking Council to approve specific recommendations (detailed below 05/44.3 and 05/44.4), the DVC reported that the initiatives had been fully discussed by the three Faculties and the Strategic Review Group and had subsequently been approved by Senate.

The DVC also reported that Charnwood Borough Council (CBC) had undergone a consultation exercise in relation to the Science Park.  CBC would issue a paper detailing the preferred option in light of the consultation.

05/44.2     School of Mathematics

COUN05-P31

On the recommendation of Senate, Council APPROVED the creation of the School of Mathematics with effect from 1 August 2005.

[Secretary’s Note: The proposals in Appendix B did not form part of the proposal]

05/44.3     Establishment of University Graduate School

COUN05-P32

On the recommendation of Senate, Council APPROVED the establishment of the University Graduate School with effect from 1 September 2005.

05/44.4     Establishment of Research Schools

COUN05-P33

On the recommendation of Senate, Council APPROVED the establishment of the following Research Schools with effect from 1 September 2005 or the earliest practicable date thereafter:

(i)      Research School in Health and Life Sciences

(ii)      Research School in Materials Science and Engineering

(iii)     Research School in Systems Engineering

(iv)     Research School in Sustainability

05/45     University Budget

05/45.1     Budget Update 2004-05

COUN05-P34

The forecast outturn was just over £1M surplus before exceptional items which was lower than originally forecast at the start of the year.  Contributing factors included rising utility costs, delayed property disposal and a shortfall in international recruitment and, consequently, a significant number of vacant rooms in halls of residence.  The University was taking steps to address these issues.

05/45.2     Budget 2005-06 and Outlook 2006-07 and 2007-08

COUN05-P35 

The Bursar presented a paper outlining the budget position for 2005-06 which had been discussed extensively at Budgetary Review Group and Resources and Planning Committee.  He drew Council’s attention to the following points:

·           Pension Funds: the University’s share of the projected deficit in the Leicestershire County Council Pension Scheme had added £700K to recurrent cost; however, the Universities Superannuation Scheme was reportedly in a healthy position.

·           Energy costs were rising rapidly and had added £600K to costs.

·           Depreciation and salary costs had risen significantly from the previous year.

International student recruitment posed the biggest financial risk to the University.  Like the rest of the sector, the University faced substantial uncertainty with regard to international recruitment and therefore a contingency of £1M against the failure to meet intake targets had been included in the budget.  Increases in international recruitment were still required to achieve the budget presented to Council and this remained an area of top priority for the University.

With these contributing factors in mind, reaching a satisfactory budget for 2005/06 had proved difficult and, despite rejecting virtually all plans for increased spending by academic departments and support services, it had not been possible to meet Council’s strategic requirement to achieve a 3% surplus.  The planned surplus was £2.374M.  

The advice of Budgetary Review Group was that, at this crucial point in the development of the University and the preparation for the 2008 RAE, it would be seriously detrimental to pursue the 3% surplus.  Therefore, on the recommendation of Resources and Planning Committee, Council APPROVED the budget for 2005-06, but emphasised the importance of the actions proposed to improve the University’s operating efficiency.

Council NOTED the outlook for 2006-07 and 2007-08.  From 2006, the University would have a new income stream from top-up fees which it wished to use strategically.  Failure to control costs would put that aim in jeopardy.

05/45.3     HEFCE Financial Forecasts and Commentary to 2008-09

COUN05-P36

Council APPROVED the Financial Forecasts to 2008-09 for submission to HEFCE.

05.45.4     HEFCE Indicators of Financial Health 2003/04

COUN05-P37

Council RECEIVED an update on the HEFCE Indicators of Financial Health for 2003/04.  The Bursar drew attention to the following indicators relating to the University’s financial performance:

·         Historical cost surplus as a percentage of total income was 5.4% compared to a sector mean of 3.2%.

·         Staff expenditure as a percentage of overall expenditure had fallen below the sector mean for the first time.  The University was investigating the data in more detail.

·         Net cash balance (above the sector mean) and liquidity (in the top quartile) remained healthy.

·         Borrowing remained in the top quartile - the University was considering ways to address this.

05/46     University Planning Activities

05/46.1     Corporate Planning Statement 2005

COUN05-P38

Council APPROVED the Corporate Planning Statement 2005 for submission to HEFCE.  

The DVC commented on the success of the Foundation Degree run in partnership with Loughborough College where a number of students had graduated with First Class Honours in June.  The QAA Review of arrangements had also achieved a good result.

In line with recommendations from the latest CUC guidance, the University wished to establish Key Performance Indicators (KPIs) against which the institution’s performance could be measured.  A Working Group was looking at best practice within the sector to produce a draft set of KPIs for Council to consider.

05/46.2     Schedule of Planning Activities

COUN05-P39 - NOTED

05/47     CUC Governance Code of Practice

05/47.1     Statement of Primary Responsibilities

COUN05-P40

Council APPROVED a revised Statement of Primary Responsibilities and NOTED that the Chair had requested that a formal schedule of delegated authority be produced.  Action: Registrar 

05/47.2     Review of Effectiveness of Council

COUN05-P41

Council RECEIVED a report regarding the review of effectiveness of Council.   In conducting the review, it was important to understand what was meant by the “effectiveness” of Council and therefore it might be useful to include a definition in the questionnaire.  A useful measure of effectiveness was Council’s actual or perceived “added value” to the University and its operations.

CUC guidance on best practice was that effectiveness review outcomes should be published in the Annual Report.  Further detailed thought would be given to the publication of the final report and recommendations but it was agreed that it should be made publicly available in some form. 

Council APPROVED the recommendations for proceeding with the review, as detailed in the agenda paper.  The Working Group would prepare the questionnaire in August and any members wishing to suggest questions to be included should send them to the Assistant Secretary to Council.  Given that the questionnaire was not going to be anonymous, it was commented that some members may feel inhibited in giving detailed answers of a critical nature.  In view of this, and the need for an independent report on the effectiveness of Council, further consideration would be given to the suggestion that a retired lay member of Council be asked to carry out the survey. Action: Chair and Asst Secretary, Council

05/48     Capital Programme

05/48.1     Progress Report

COUN05-P42

Council RECEIVED a progress report and NOTED New Projects and Projects moved to Stage D by Independent Review Group (or its Chair) as detailed in the agenda paper.

05/48.2     Loughborough Sports Park

COUN05-P43

[minute redacted because of commercial confidentiality]

05/48.3     Car Park 7 Development

COUN05-P44

Council APPROVED the creation of a supervisory group (membership as detailed in the agenda paper) for the Car Park 7 Residential Development.

05/49     imago

COUN05-P45

The Chief Executive of imago at Loughborough Limited attended to present a progress report.  By bringing all the commercial activities together under one heading, imago at Loughborough Limited had contributed almost £1M to the University in 2004/05.   The Board had dealt with a number of issues in the first year including:

·           increasing bedroom capacity and quality (current extension to Burleigh Court)

·           restructuring the conference office to increase emphasis on sales activity (currently 75% sales were repeat business)

·           resolution of VAT issues to enable the Sir Denis Rooke Building to be used for University events

·           strengthened marketing activities

·           successful applications for external awards (e.g. Investors in People) and quality standards

The extension of Burleigh Court had had a marginal impact on the forecast sales but every effort was being made to achieve the 2004/05 budget.  The 2005/06 budget had been adjusted to account for slightly diminished sales figures during the remainder of the extension works.  The real impact was expected when the new bedrooms came on stream and sales were predicted to rise significantly. 

Future growth included both external and internal markets.  Work was underway to help integrate the commercial activities with other University activity and to provide more opportunities for internal use of the facilities.  The University had invested heavily in the Sir Denis Rooke building and it was essential that occupancy and usage were increased.  It was commented that cancellation charges for internal customers had caused a problem in the past and this was now being investigated. 

In response to a question, the Chief Executive reported that the EHB refurbishment was expected to be completed on time and would provide the University with access to high quality meeting rooms.

05/50     Risk and Opportunity Management

05/50.1     Consolidated Statement on Risk and Opportunity Management 2004/05

COUN05-P46

Council RECEIVED a Consolidated Statement on Risk and Opportunity Management 2004/05 and, with the advice of Audit Committee, APPROVED the revised Risk and Opportunity Management Policy and Procedures Manual and Risk Register. 

Council noted the emphasis on risk and opportunity management in the documentation which aimed to identify and categorise risk in terms of likelihood and impact, rather than create a culture of risk aversion within the institution.  It was also noted that the Risk Register presented to Council was supported by more detail for each risk including which Committee supervised it, which member of the Executive Management Group (EMG) was responsible and when it had last been considered by EMG and the Audit Committee.  It was noted that certain aspects of Information Services were still considered to be a major risk.

05/50.2     Risk Management Procedures

Council NOTED and ENDORSED the Audit Committee’s opinion that the University’s risk management procedures provided satisfactory assurance.

05/51     Audit Committee 

05/51.1     Report of Meeting held on 2 June 2005

COUN05-P47

Council RECEIVED a report of the meeting the of Audit Committee held on 2 June 2005 and:

i.         APPROVED the appointment of, and fees for, Internal Auditors. 

ii.       APPROVED the appointment of, and fees for, External Auditors.

iii.      NOTED and ENDORSED the Audit Committee’s opinion that the University’s arrangements for pursuing and evaluating Value for Money were satisfactory.

The Chair of the Audit Committee also commented that the Health, Safety and Environmental Officer had met with the Audit Committee.  Although Council retained overall responsibility for Health and Safety matters, much of the work was devolved.  The remit of the Health, Safety and Environmental Committee could usefully be clarified to lend formal authority to its advice and recommendations and to ensure that actions were taken forward.  Health and Safety should be added to the University Risk Register.  Action: EMG

05/51.2     HEFCE Assurance Service Report

COUN05-P48 - NOTED

05/51.3     Statement of Corporate Governance

COUN05-P49

Council APPROVED the draft Statement of Corporate Governance recommended by the Audit Committee.

05/52     Nominating Committee

COUN05-P50

Council RECEIVED a report from the Nominating Committee and APPROVED the co-option of the following individuals from the start the 2005/2006 session.

For a period of three years: Dr Cyril Woodruff and Mr Peter Haslehurst

For a period of one year: Dr Jim Blood (exceptionally extended beyond three terms of three years) and Dr Bill Moss

The Chair of Council informed members that the Nominating Committee was looking at establishing mechanisms for succession planning to ensure that lay members of Council were appropriately replaced when their period of office expired.  It may be necessary, on occasion, for Nominating Committee to meet more than once a year.

05/53     University Ordinances

COUN05-P51

On the recommendation of Senate, Council unanimously APPROVED:

·         amendments to Ordinance III: Substantive Awards and Honorary Degrees, with effect from 3 October 2005

·         amendments to Ordinance VI: Appointment of Academic and certain Academic Related Staff, with effect from 19 July 2005

·         amendments to Ordinance XVII: Conduct and Discipline of Students, with effect from 3 October 2005

·         repeal of Ordinance XIX: Assessment, with effect from 28 October 2005

·         repeal of Ordinance XX: Standing Committees of Senate, with effect from 28 October 2005

·         amendments to Ordinance XXXVIII: Student Complaints Procedures, with effect from 3 October 2005

05/54     Sporting Success at Loughborough University

COUN05-P52

The Director of the Sports Development Centre introduced his report on student sporting successes as detailed in the agenda paper.  Whilst not specifically mentioned in the paper, Council acknowledged the major contribution made by the Athletics Union (AU) which managed over 50 sporting teams.  Council AGREED to receive the report annually but requested that future reports should cover the AU contribution.  Action: Director, SDC

05/55     Matters for Report

05/55.1     Pro-Vice-Chancellor (Research)

(i)             Research Grants and Contracts

COUN05-P53 and COUN05-P53a

The PVC(R) presented the latest data on research grant and contract applications and awards.  The success rate of applications had increased to 34%, this was thought to be attributable to internal quality monitoring procedures in departments.  The value of new grants and contracts awarded had reached record levels, an increase of 37% on the previous year.  Notably the Science Faculty’s research income had increased by £1M.   

(ii)        Update on RAE 2008

HEFCE had published guidance on submissions and the sub-panels had issued criteria for consultation.  Each institution was expected to produce a fully documented Equal Opportunities Code of Practice for selecting members of staff for submission.   The University was well represented on the sub-panels, with five members of staff selected as Chairs and four others as members.

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

The University had been allocated £10.7M of which £8M was earmarked for the Health and Exercise Bio-Sciences Labs.

05/55.2     Pro-Vice-Chancellor (Teaching)

(i)             Recruitment for 2005/06 entry

COUN05-P54

The PVC(T) reported the latest applications data for 2005 entry.  At this stage of the applications cycle, conversion was the key factor.  The PVC(T) was confident that the University would meet its UK/EU undergraduate target.  The conversion rate for international undergraduates was slightly lower than the previous year but the University was doing all it could to ensure that targets were met.  The position with regard to UK/EU postgraduates was broadly comparable with the previous year.  The biggest area of uncertainty remained the international postgraduate market.  Applications had been similar to the previous year and there had been an increase in offers.  However the University remained cautious about the conversion rate due to a change in the profile of applicants’ country, increased competition in Asia and the EU, tightening of visa procedures and the possibility that some applicants perceived a threat to security in the UK.  The University was taking action to mitigate these factors by relaxing the English Language requirements in some subjects (in line with other EU countries) and speeding up the administration of applications.  It was felt that the University Graduate School could also be beneficial in creating a “graduate community”.

(ii)             Additional Student Numbers

HEFCE had announced that it was making an additional 30,000 student places available,  The University had bid for 80 in total.  If successful, this would not result in an increase in the overall student population.

(iii)            Learning and Teaching Capital 4

COUN05-P55

There was £5,567M available to the University through the HEFCE for capital funding for teaching and learning.  Council NOTED the details of the University bid as outlined in the agenda paper.  The University was keen to invest in the refurbishment of teaching space in preparation for the introduction of top-up fees in 2006. 

05/55.3     Director of Business Partnerships, Innovation and Knowledge Transfer

COUN05-P56

Council RECEIVED the report from the Director of Business Partnerships, Innovation and Knowledge Transfer, noting in particular the negotiations with emda regarding the framework agreement to develop the Science Park and the efforts of all those involved in the success of the Systems Engineering Innovation Centre, which now had all funding elements in place.

05/55.4     Director of External Relations

COUN05-P57

Council RECEIVED a report from the Director of External Relations, noting in particular the plans for the 40th Anniversary of the University Charter and the continued marketing efforts in preparation for the introduction of top-up fees in 2006.

05/56     Vice-Chancellors Report

i)          The University had slipped from 10th to 14th place in the Times University Guide.  One of the reasons for this appeared to be a worsening staff student ratio and the University was investigating data regarding staff profiles.

ii)         The Vice-Chancellor congratulated the Students’ Union for another successful year which saw record fund-raising by RAG and a significant contribution to the team responsible for the University becoming the first completely Fairtrade university in the region.

iii)       The Vice-Chancellor placed on record his thanks to all staff for their contributions to a successful year for the University.

05/57     Anti-Fraud and Corruption Policy

COUN05-P58

Council APPROVED the revised Anti-Fraud and Corruption Policy.  

05/58     Membership of Council and Appointments to Committee Chairs and Standing Committees

COUN05-P60

·         Council NOTED the membership of Council for 2005/06 thus far determined.

·         Council APPOINTED the Chairs of certain Committees and NOTED vacancies for Chairs for 2005/06.

·         Council NOTED recent appointments to Council Committees.

·         Council REAPPOINTED members eligible to serve in 2005/06 and AUTHORISED the Chair (delegated to Registrar) to take action on behalf of Council to make appointments to remaining vacancies on Council Committees, Joint Committees of Senate and other bodies to which Council appoints.

05/59     Loughborough Students’ Union (LSU) 

05/59.1     LSU Constitution

COUN05-P61

In accordance with Ordinance XIX, Council RECEIVED interim recommendations regarding the review of the LSU Constitution. 

05/59.2     LSU Annual Report

COUN05-P62 - NOTED

05/60     Resources and Planning Committee

05/60.1     Report of Meeting held on 3 June 2005

COUN05-P63

Council RECEIVED the report from the meeting of Resources and Planning Committee held on 3 June 2005 and APPROVED the following recommendations:

·         the CIS Finance System Project, subject to consideration by the Treasurer’s Committee

·         that the appointment of “critical friends” as per the Capital Procedure for CIS Projects be dispensed with for the CIS Finance System Project

·         Tuition Fees and Bursaries from 2006/07

·         Car Parking Charges

05/60.2     Chair’s Action: PGCE Tuition Fees & OFFA Agreement

COUN05-P64

On the recommendation of the Chair of Resources and Planning, Council APPROVED PGCE tuition fees from 2006/07 and the subsequent changes to the OFFA Agreement to include the fee and a bursary arrangement for PGCE students. 

05/61     Senate

COUN05-P65

Council RECEIVED the report from the meeting of Senate held on 29 June 2005 and APPROVED the following recommendations:

.1         Review of Committees:

·Student Services Committee: revised Terms of Reference/Membership and new Sub-Committee Structure

·that the authority to award Personal Titles be delegated to Human Resources Committee

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

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

05/62     Health, Safety and Environmental Committee

COUN05-P66

[This item was unstarred]

[this minute has been partially redacted due to confidential information]

Council RECEIVED the reports from the meetings of the Health, Safety and Environmental Committee (HSEC) held on 23 February and 15 June 2005 and APPROVED the introduction, within a year, of compulsory health and safety training for HoDs/HoSSs.

As previously raised under the Audit Committee item, the remit, reporting line and delegated powers of the Health, Safety and Environmental Committee were mentioned.  Whilst the Committee had no formal remit to act in an executive capacity on behalf of Council, in practice it often did, through the Health, Safety and Environmental Officer.  It was suggested that this arrangement should be formalised.

05/63     Common Seal

COUN05-P67

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

05/64     Executive Management Group Responsibilities and Organisation Chart

COUN05-P68 - NOTED

05/65     Careers Service Advisory Board Annual Report 2004/05

COUN05-P69 – NOTED

05/66     Reports of Committees

Council RECEIVED reports from the following Committees:

i)                    Performance Monitoring Group – 15 June 2005 [COUN05-P70]

ii)                   Research Committee – 28 April 2005 [COUN05-P71]

iii)                 Student Services Committee  – 2 March and 1 June 2005 [COUN05-P72]

iv)                 Treasurer’s Committee – 21 June 2005 [COUN05-P73]

05/67     HEFCE Strategic Plan 2003-2008

Council NOTED that the HEFCE Strategic Plan 2003-2008 was available on the Internet at the following URL:  www.hefce.ac.uk/pubs/hefce/2005/05_16/

05/68     Dates of Meetings in 2005/06

Council NOTED the dates for meetings in 2005/06 as follows:

Friday, 28 October 2005 (1.30pm)
Tuesday, 20 December 2005 (10.15am)
Friday, 17 February 2006 (10.15am)
Friday, 31 March 2006 (10.15am)
Wednesday, 19 July 2006 (10.15am) 

05/69     Any Other Business

A member commented on the high quality of the latest Alumni Magazine and encouraged other members to read it.

05/70     Valedictory

On behalf of Council the Chair gave thanks to the student representatives, Jason Scott and Graham Chivers (in his absence), for whom this had been the last meeting

05/71     Date of Next Meeting

Friday, 28 October 2005 (1.30pm)


Author - M T Whyte
Date – July 2005
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