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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
06/33 Minutes
The
Minutes of the Meeting of Council held on
06/34.1
COUN06-P32
Further to Minute 06/3, Council
NOTED that the posts of PVC (
Draft Terms of Reference for, and
Membership of, the
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
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
(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
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(
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
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
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
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
(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
(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
(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
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.
COUN06-P62
Council RECEIVED the Effectiveness Review Implementation Plan and NOTED progress to date.
COUN06-P63: RECEIVED
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
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)
Council RECEIVED reports from the following Committees:
i.
Performance Monitoring Group –
ii. Research
Committee – 23 March and
iii. Student Services Committee –
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.
Author – Miranda
Routledge
Date – August 2006
Copyright (c)