The Council

COUN06-M3

Minutes of the meeting of the University Council held on Tuesday 18 July 2006.

Members:

Sir Bryan Carsberg (Chair); Dr Memis Acar; Dr Jim Blood; Roger Boissier; Dr Sandie Dann (ab); Peter Davenport; Gareth Davies; Venu Dhupa; Peter Haslehurst; Norma Honey; Sir John Jennings; Rob Kirkwood; Mansoor Moghal; Dr Bill Moss; Jim Mutton; Professor Richard Parry-Jones (ab); Professor Shirley Pearce; Simon Proffitt (ab); Professor Phil Roberts; Dr Fytton Rowland (ab); Gab Stone; Jackie Strong; Professor Rachel Thomson; Dr Margaret Tomlinson; Professor Peter Warwick; Phil Wilkinson-Blake (ab); Bob Wilson; Dr Cyril Woodruff; Alan A Woods

In attendance:

Professor Chris Backhouse; Professor Morag Bell; John Blackwell; Vivian Dhaliwell; Sir John Gains; Marc Gibson; Gemma Godfrey; Professor Neil Halliwell; Professor Terry Kavanagh; Professor Ken Parsons; Michael Pearson; Miranda Routledge; Jeremy Swaffer; John Town; Jon Walker

Apologies for absence were received from:

Dr Sandie Dann; Simon Proffitt; Dr Fytton Rowland

                                                                                                                                                                

06/32     Opening Remarks from the Chairman

The Chairman welcomed individuals who would become members of Council from 1 August 2006.  It was customary for incoming members to be invited to the last meeting of the academic session preceding their appointment.

06/33     Minutes

The Minutes of the Meeting of Council held on 31 March 2006 [COUN06-M1] were CONFIRMED.

06/34     Matters Arising

06/34.1     Enterprise and Commercial Services Development Committee

COUN06-P32

Further to Minute 06/3, Council NOTED that the posts of PVC (Enterprise) and Director of Marketing and Communications had been approved and advertised.

Draft Terms of Reference for, and Membership of, the Enterprise and Commercial Services Development Committee had been approved by Senate.  It was NOTED that the Bursar/Finance Officer position would, in due course, be restructured and replaced by two posts.  This would have major ramifications for the membership of numerous committees which needed to be addressed. One of these posts would replace the Bursar/Finance Officer on the Enterprise and Commercial Services Development Committee.  Subject to this minor amendment, Council APPROVED the Terms of Reference and Membership as outlined in the agenda paper.

Council expected the committee to co-opt appropriate individuals to address the balance of academic and lay/entrepreneurial membership.

Several members queried the constitution of the committee, fearing that it was too large to function effectively.  It was therefore AGREED that the Terms of Reference and Membership would be reviewed during the first year of activity and, if necessary, amendments brought forward to the July 2007 meeting of Council. 

06/34.2     British University in Egypt (BUE)

Council NOTED that Senate had agreed that negotiations with BUE should continue.  A Memorandum of Understanding, developed with the advice of the University lawyers, had been signed at the end of May.  The University had now entered a new phase of negotiation regarding validation arrangements, overseen by the Project Group.  A set of financial proposals had recently been sent to BUE.  The Group was acutely aware that the University’s interests must be protected at all times.

06/35     University Strategic Plan

COUN06-33

Council RECEIVED a progress report on the development of the University Strategic Plan.  Members agreed that the Away Day held on 19 June had been a useful exercise, generating a number of good ideas which could be incorporated into the written plan.  Further consultation would take place at the October 2006 meeting and the final draft would be presented to Council in December 2006.

The current Deputy Vice-Chancellor had made good progress with the development of key performance indicators, which would be incorporated into the framework of the Strategic Plan. 

06/36     University Budget

06/36.1     Budget Update 2005-06

COUN06-P34

Council RECEIVED an update on the University's budget for 2005/06.  Council also congratulated the Bursar and Finance Officer on the financial situation of the University.

06/36.2     Budget 2006-07 and Financial Outlook to 2008-09

COUN06-P35

The Bursar presented a paper outlining the budget position for 2006-07 which had been discussed extensively at Budgetary Review Group and Resources and Planning Committee.  Council’s attention was drawn to the following points:

(i)    The planned surplus was just over £3M – slightly less than 2%.  Whilst Council usually expected at least a 3% surplus, it was recognised that the University was entering a critical phase in terms of investment for the RAE.

(ii)   There was a continued and growing dependence on international recruitment which now accounted for £18M income.  As in 2005/06, the budget included a contingency of £1M to mitigate a potential downturn in conversion rates. 

(iii)  Energy costs continued to rise rapidly.

(iv)  Staff costs were increasing at a rate greater than inflation.  The recent pay settlement would add a further £300K of costs to the budget presented.

(v)   The introduction of top-up fees would result in a net increase in income of £4.25M in 2006/07.  This was earmarked for strategic investment; with £1M already committed for expenditure on additional staff.  It was unlikely that the full £4.25M would be spent in 2006/07 and so the planned surplus was expected to increase by the end of the year.

(vi)  The University had no intention of withdrawing from the existing final salary pension schemes for staff.  Whilst costly, the scheme was considered to be an important benefit for staff.

On the recommendation of Resources and Planning Committee, Council APPROVED the budget for 2005-06 and NOTED the Financial Outlook to 2008-09.

06/36.3     HEFCE Financial Forecasts and Commentary to 2009-10

COUN06-P36

Council APPROVED the Financial Forecasts to 2009-10 for submission to HEFCE.

06/36.4     HEFCE Indicators of Financial Health

COUN06-P37: NOTED

06/37     University Planning Activities

06/37.1     Corporate Planning Statement 2006

COUN06-P38

Council APPROVED the Corporate Planning Statement 2006 for submission to HEFCE.

06/37.2     Schedule of Planning Activities

COUN06-P39: NOTED

06/38     Capital Programme

06/38.1     Progress Report

COUN06-P40: NOTED

06/38.2     Development of Student Residential Accommodation

[Malcolm Brown, Roy Hill, Tim Walton and Rachel Wiggans attended for this item.]

William Morris Hall

COUN06-P41(a)

In 2002/03, the transfer of William Morris Hall to UNITE was deferred following opposition from local residents.  UNITE had recently submitted updated proposals for the transfer arrangements and negotiations were underway.  The proposals included the demolition and rebuild of some halls and the refurbishment of others.  Overall, this would lead to a net gain of 5 bedrooms. 

Issues currently under negotiation included:

(i)      Access: a new road was needed to prevent access from Ashby Road.

(ii)    Neighbours: there had been significant, and successful, efforts to liaise with local residents regarding the development of the site.

(iii)  Negative Premium: currently stood at £700,000 on a 35 year lease; the Project Group was working hard to reduce the negative premium. 

A member urged some caution regarding the 35 year lease which could potentially be extended.  However, University Officers were confident that, under the proposed arrangements, the property would revert to the University after 35 years and would, at that time, be in a reasonable state of repair. 

The University had previously made a conscious choice not to fund the development of William Morris Hall from its capital reserves.  Whilst the £700,000 negative premium seemed high, it was noted that the proposed arrangements avoided capital expenditure and transferred the demand risk to a third party.  Council urged the Project Group to continue its efforts to reduce the negative premium and, on that basis, AGREED:

(i)                  to APPROVE the transfer of William Morris Hall, Morris & Grenfell, Ling & Gimson, Blocks J, K, L and M to Unite Integrated Services Limited

(ii)                to DELEGATE to the Accommodation Steering Group the negotiation of the final legal agreements to be entered at a negative premium not greater than £700,000.

Car Park 7 Student Accommodation Project

COUN06-P41(b)

The background to the project was summarised, as previously reported to Council.  An “Invitation to Negotiate” was issued to three bidders, from which UPP produced a solution that could be developed to meet the University’s requirements.  Many iterations had since taken place with UPP in order to reach a Master Plan and Design which was acceptable to all parties, especially students.  The current design would provide approximately 1000 undergraduate bedrooms (39 week let) and 300 postgraduate bedrooms (50 week let).

Issues currently under negotiation included:

(i)      Transparency of Building Costs: the Project Group was pressing for more information.

(ii)    Negative Premium: currently stood at just under £9M; the Project Group had a number of factors on which they were able to negotiate (e.g. savings on soft facilities management, rental periods/costs and summer lettings guarantee) and it was expected that the figure would reduce substantially.

The University was now at a point in negotiations where it needed to appoint a Preferred Bidder (i.e. UPP).  In proceeding to this stage of the negotiations, the University would safeguard its position by placing a number of conditions on UPP.  However, once a Preferred Bidder letter had been issued, the University might be exposed to financial risk if it pulled out of the agreement arbitrarily.

In response to several queries, it was confirmed that UPP was the biggest provider of student accommodation in the country.  The agreement entered into would be complicated and not without risk.  However, the University had already decided not to commit capital expenditure to the project and to proceed with this development “off balance-sheet”.  Therefore a PFI type project was the only one available.

Council APPROVED the issue of the Preferred Bidder letter to UPP as long as it contained robust conditions to protect the University’s interests.  Council accepted that there might be a negative premium but expected it to be reduced to the minimum possible, if not converted to a positive sum.  A full progress report would be received at the next meeting.

06/39     Engineering Building Board of Inquiry Recommendations

COUN06-P42

Council NOTED discussions from Estates Management Committee regarding the Engineering Board of Inquiry Recommendations.  The Board of Inquiry report had been written 5 years previously, highlighting a number of important issues and making eight recommendations.  Six of the recommendations related to litigation which, as previously reported to Council, the University had
agreed not to pursue.  The remaining two recommendations related to process and had been addressed by Estates Management Committee.  As a result of the report, the University had strengthened its Project Management procedures. The Chair of Estates Management Committee advised that it was vital for the University to continue to recognise the importance of, and resource
adequately, robust Project Management procedures.

Council expressed thanks to Dr Terry Higgins for his work with the Board of Inquiry and it was AGREED that the Chair of Council should write to him. ACTION: Chair of Council

06/40     Intellectual Property, Spin-Out Companies and Consultancy

06/40.1     Report  from the Chair of the Intellectual Property (IP) Board

[Derek Mapp, Chair of the IP Board, attended for this item]

COUN06-P43

Derek Mapp presented his report to Council, confirming that the portfolio of activity covered by the IP Board was getting stronger and more focussed.  Work was still required to standardise documentation – however, the support received from the staff in this area was of high quality and Mr Mapp was confident that improvements would continue.

The University was currently investing in this area with a view to increased activity and inclusion in the Strategic Plan as a core mission.  The appointment of the PVC(Enterprise), which was supported by Mr Mapp, was a key development and would add focus to the types of activity governed by the IP Board. 

Council GRANTED authority to proceed in the identification and appointment of an appropriate partner for the fund dedicated to Loughborough spin-out companies.

06/40.2     Policy on IP, Spin-Out Companies and Consultancy

COUN06-P44

The Deputy Vice-Chancellor outlined the governance structures in place and commented that the current document provided brief policy statements, demonstrating that the University was taking the issues seriously.  It was expected that the policy would be further scrutinised by the PVC(E) and the new Enterprise and Commercial Services Development Committee during the next 12 months.

Council APPROVED the policy document, subject to the following amendment to the Consultancy section (changes underlined):

the second sentence of the second paragraph should read “Staff in the Research, Research and Teaching, Teaching and Scholarship, and Management and Specialist job families may undertake up to 30 days of outside work per annum (which includes consultancy) for their own benefit, provided it is first disclosed to, and agreed by their Head of Department ….”

06/41     Risk Management

06/41.1     Consolidated Statement on Risk Management

COUN06-P45

The Chair of Council reminded members of the University processes for managing risk.  The Executive Management Group were, and must be, active in the management and review of systems.  The classification of risk impact and likelihood in the documentation was unclear and it was AGREED that descriptors should be circulated to members with the minutes.  ACTION: Assistant Secretary to Council 

Council APPROVED the Consolidated Statement on Risk Management 2005/06, together with the revised version of the Risk Register and Risk Schedules.

06/41.2     Audit Committee’s and Council’s Risk Management Opinion

COUN06-P46

i.      Council NOTED the opinion of the Chair and Committee that, based on all the risk-related reports received during 2005/06, including EMG’s Annual Report, internal audit reports and discussions with major risk holders, the University had in place satisfactory risk management procedures in order to provide the required assurance to Council.

ii.    Council FORMULATED the opinion that the University had in place satisfactory risk management procedures.

06/41.2     HEFCE: Assessment of Institutional Risk

COUN06-P47: NOTED

06/42     Audit Committee

COUN06-P47

Council RECEIVED a report of the meeting the of Audit Committee held on 1 June 2006, and:

i.         APPROVED the appointment of Internal Auditors and a Fee Proposal

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

iii.      FORMULATED the opinion that the University’s arrangements for pursuing and evaluating Value for Money were satisfactory

iv.     APPROVED the appointment of External Auditors and a Fee Proposal

Council also NOTED a minute concerning Health and Safety governance issues, together with a report of a meeting of the Chairs of the Audit Committee and the Health, Safety and Environmental Committee, the Registrar and the Bursar.  The Chair of the Audit Committee reiterated the need for Council to be assured that the University’s Health and Safety Policies were appropriate and were being adhered to.  Any breach of policy must be reported to Council, together with a report of corrective action.  Lack of clarity regarding the Health, Safety and Environmental Committee’s powers and responsibilities had led to some problems in this area.  The Committee was, fundamentally, responsible for auditing and monitoring the Health and Safety policies.  The Vice-Chancellor and Registrar would continue to work on proposals to tighten procedures in this area and report back to Council in October.  ACTION: Vice-Chancellor and Registrar

06/43     Matters for Report

06/43.1     Pro-Vice-Chancellor (Research)

i.         Research Grants and Contracts

COUN06-P48: NOTED

ii.       Update on RAE 2008

The RAE 2008 would go ahead.  Running alongside it would be a shadow exercise looking at assessing research on a metrics basis in the future.  Five models were currently out for consultation.

06/43.2     Pro-Vice-Chancellor (Teaching)

Recruitment for 2006/07 entry

COUN06-P49: NOTED

06/43.3     Director of Business Partnerships, Innovation and Knowledge Transfer

COUN05-P50: NOTED

06/43.4     Director of External Relations

COUN06-P51: NOTED

06/44     Vice-Chancellor’s Report

i.      EMUA was progressing discussion about how best to support the East Midlands Universities to work together to develop a distinctive research and knowledge transfer profile for the region.  Whilst Loughborough University continued to pursue and provide its international strategy, it must work with other East Midlands universities to maximise the benefit to the region of individual distinctive identities.

ii.    UCU had accepted a pay settlement of 13.1% over three years.  The Vice-Chancellor recorded her thanks to all involved in ensuring that, despite industrial action, examinations and graduation had been able to take place as usual.  The cooperation of the President of LSU and his colleagues was noted in particular.

06/45     Terms and Conditions for University Bursaries and Scholarships

COUN06-P52

Council APPROVED Terms and Conditions for University Bursaries and Scholarships.

06/46     University Ordinances

Further to Minute 06/12.2 and paper COUN06-P21, Council CONFIRMED amendments to Ordinance XVII: Conduct and Discipline of Students.

06/47     Membership of Council and Appointments to Committee Chairs and Standing Committees

COUN06-P53

(i)    Council NOTED the membership of Council for 2006/07 thus far determined.

(ii)    Council APPOINTED the Chairs of certain Committees.

(iii)   Council 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.

06/48     Resources and Planning Committee

COUN06-P54

Council RECEIVED the report from the meeting of Resources and Planning Committee held on 2 June 2006 and APPROVED the following recommendations:

(i)         Major Project Approval Procedures

(ii)       Tuition Fees

(iii)      Parking Charges 2006/07

06/49     Senate

COUN06-P55

Council RECEIVED the reports from the meetings of Senate held on 5 May and 28 June 2006 and APPROVED the following recommendations:

(i)         Programme Proposals

(ii)       Student Services Committee

(iii)      Establishment of New Prizes, Amendments to Existing Prizes and Discontinuation of Prizes

06/50     Health, Safety and Environmental Committee

COUN06-P56

Council RECEIVED the report from the meeting of the Health, Safety and Environmental Committee  held on 21 June 2006 and APPROVED:

(i)         Food Allergies Policy

(ii)       Recommendations relating to First Aid Provision

(iii)      Code of Practice for the Purchase and Use of Drug Precurser Chemicals in the University

06/51     Treasurer’s Committee

COUN06-P57

Council RECEIVED the reports from the meetings of the Treasurer’s Committee held on 16 March and 23 June 2006 and APPROVED amendments to the Committee’s Terms of Reference.

06/52     Alumni Board

06/52.1     Annual Report

COUN06-P58: RECEIVED

06/52.2     Constitution

COUN06-P59

Council APPROVED changes to the constitution of the Alumni Board.

06/53     Careers Service Advisory Board

06/53.1     Annual Report

COUN06-P60: RECEIVED

06/53.2     Membership

COUN06-P61

Council APPROVED changes to the membership of the Careers Service Advisory Board.

06/54     Council Effectiveness Review: Implementation Plan

COUN06-P62

Council RECEIVED the Effectiveness Review Implementation Plan and NOTED progress to date.

06/55     Annual Report on Student Complaints

COUN06-P63: RECEIVED

06/56     Annual Report on Sporting Success at Loughborough University

COUN06-P64: RECEIVED

06/57     Loughborough Students’ Union (LSU)

06/57.1     LSU Annual Report

COUN06-P65: RECEIVED

06/57.2     LSU Constitution: Update on Revisions

COUN06-P66: RECEIVED

06/58     Chair’s Action

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

i.         Revisions to the Procedure for the Appointment of DVC, PVCs and Deans

ii.       Establishment of Prizes (action taken by Registrar)

06/59     Reports of Committees

Council RECEIVED reports from the following Committees:

i.         Performance Monitoring Group – 15 June 2006 [COUN06-P67]

ii.       Research Committee – 23 March and 18 May 2006 [COUN06-P68]

iii.      Student Services Committee  1 March 2006 [COUN06-P69]

06/60     Valediction

Council recorded its thanks to Gab Stone and Gareth Davies, from LSU, for their contributions over the past year and wished them both all the best for the future.

06/61     Dates of Future Meetings in 2006/07

Friday, 27 October 2006 (1.30pm)
Tuesday, 19 December 2006 (10.15am) may be preceded by Treasurer’s Briefing at 9.15am
Friday, 30 March 2007 (10.15am)
Tuesday, 24 July 2007 (2.30pm) 

                                                                                                                                                    

Author – Miranda Routledge
Date – August 2006
Copyright (c) Loughborough University.  All rights reserved.