Planning & Governance Services. Minutes Senate Budget Committee Date: 07 November 2013 Present: In Attendance: Secretary: Minuting Secretary: Apologies: Professor Richard Jenkins in the Chair Professor Guy Brown Professor Heather Campbell Professor Julie Gray Professor Susan Fitzmaurice Professor Richard Jackson Mr Bob Rabone Mrs Rhiannon Birch Mr David Swinn Professor Andrew Linn Mrs Victoria Jackson Professor Simon Keefe Mr Sam Neagus Dr Christine Sexton Professor Alistair Warren 1. Minutes of the Last Meeting The minutes of the last meeting held on 19 September 2013 were approved. 2. Redaction of Previous Minutes The Committee agreed that item 7 of the minutes of the meeting held on 19 September 2013, which was a closed item relating to the University budget, should be wholly redacted from the web version. 3. Chair s Report Professor Jenkins reported a number of matters to the Committee: (a) Changes in membership: Today s meeting would have been Professor Linn s final meeting before the end of his role as FDR&I. On behalf of the Committee Professor Jenkins thanked Professor Linn for his welcome contributions to the Committee s work since joining in 2011. Professor Paul Hellewell had been confirmed as the new FDR&I representative on SBC from January 2014. (b) (c) Re-election of Professor Keefe: On behalf of the Committee Professor Jenkins welcomed Professor Keefe to his first meeting since his reelection as Senate representative. Professional Services Budgets: The Committee discussed how it might contribute to the dialogue over professional services departmental budgets in the context of feedback that Professor Jenkins had received over the concerns that the Committee had reported to Senate on 30 October. 1
The Committee noted that its remit included encouraging transparency in, and advising UEB on, budgetary processes and outcomes in the University. It was agreed that sub-groups of 2-3 members of the Committee would have individual meetings with directors of relevant Professional Services departments. The purpose of the meetings would be to consider the impact of the flat cash budget on teaching and research and related student facing support. The meetings would also seek to address uncertainty on the part of some staff over the fundamental distinction between Professional Services, Faculty and Shared costs. This distinction was a key element of the University s budgetary process and would also be included in the Shared Costs account that was to be developed for the Committee s website (see below, Minute 7). An explanation of the classification of different costs types would also be added to future Budget Packs. VEJ/RR It was noted that certain professional services functions were not student facing but were nevertheless vital to the University and therefore could not be compromised, for example Health and Safety. The Committee agreed that in order to achieve maximum benefit meetings should be timed to contribute to discussions about Professional Services departments requirements during the planning round, which would take place early in 2014. It was agreed that as a courtesy the Chair would first send an explanatory email to the Registrar outlining the Committee s plan. RHB/RPJ/ RFWJ 4. Draft Q4 Financial Results 2012-13 Mrs Jackson provided an overview of the 2012-13 draft financial results that would be updated to include results for subsidiary companies in due course. Key headlines were as follows: The operating surplus was 15.3m against a forecast operating surplus of 6.3m; Total income was 483.8m against a forecast figure of 491.3m; Total expenditure was 466.9m against a forecast figure of 483.1m; The reasons for the improved outturn position compared to the forecast included Faculty underspends of 1.6m (after a corporate level adjustment that had reduced forecast expenditure by 2m) and a 5.1m underspend on shared costs. Following approval by UEB, Finance Committee, Audit Committee and Council the financial results would be included within the annual finance return to HEFCE, the deadline for which was 2 December. The return will include revisions to the 2013-14 financial forecasts to reflect known changes, for example the impact of higher than forecast student recruitment. 2
It was reported that Finance Committee had established a sub-group to oversee decisions taken in respect of the University s borrowing requirements. Membership will include staff and lay members of Finance Committee, Senate Budget Committee and Investment Group, including Professor Jenkins. 5. Briefing on the Planning Round The Committee received a briefing from Mrs Birch on the annual planning round that was based on two papers, which had been approved by UEB in October. This year s planning round would retain the same focus and priorities as those used in 2012-13. As part of their planning activity Faculties would be asked to provide a steer to Professional Services that would inform priority setting, thereby further strengthening the links between Faculty plans and those of Professional Services. It was reported that additional data relating to estates and HR would be incorporated in the academic plan templates in order to facilitate enhanced analysis of the implications of planned student numbers. Planning information packs would also include detail of the external planning landscape and greater linking of performance to the priority institutional KPIs, with differentiation of impact across the faculties. Members also noted that discussions during the 2013-14 planning round would inform initial thinking about a new University Strategic Plan. Clarification was provided that by highlighting estates considerations in the planning round it was hoped to deepen the institutional understanding of areas where issues of space and capacity created particular stress on estates requirements, for example the availability of lecture theatres large enough to accommodate the numbers of students which the University seeks to recruit It was confirmed that both central and departmental space would be taken into consideration. Members also noted that Learning Infrastructure Management Group was seeking to enhance the consistency of messages from faculties and departments about their estates requirements and the University continued to work towards greater efficiency in its use of space. In terms of HR, performance against the relevant KPIs reflected low staff to student ratios in a number of areas. The University needed to establish a more structured approach to consider staffing requirements, taking account of variations in approaches to staffing across the faculties. 6. Future Development of SBC The Committee considered a summary of agreed actions resulting from its meetings with members of the University executive in 2012-13 and agreed the following: a) The preparation of a generic financial FAQs document for the SBC website, informed by that produced by the Faculty of Medicine, Dentistry & Health. The view of the Director of Finance would be sought as to how to encourage the other faculties to introduce a similar faculty-specific document of their own. It was noted that moderation of any content placed on the web would be required in order to ensure the consistency and currency of information; RPJ 3
b) A general account of resource allocation would be prepared, similar to that of the SDF (See below, Minute 8). It was confirmed that mechanism should be removed from references to resource allocation, as these were inaccurate; c) The preparation of information about Shared Costs that would be added to the SBC website; d) A review of progress on points (a)-(c), above, would take place at the Committee s January meeting. This would also consider any action to be taken by way of follow up. Successfully delivering these plans by the end of 2013-14 would represent a significant achievement in providing a suite of valuable tools to assist colleagues in their understanding of the University s financial processes. RPJ/RHB/VEJ 7. An Account of the Strategic Development Fund The Committee received a draft account of the SDF that was intended to be added to its website. The paper was approved, subject to the following points being addressed: A small number of minor amendments to add clarity; The addition of detail about how to apply for SDF funding; The addition of clarification that references to the SDF mean central funding, which has been allocated a budget of 5.7m in 2013-14 but which is augmented by faculty contributions totalling 1.3m in 2013-14; The web version should be navigable using anchors or clickable headings. As previously agreed, the updated document would be sent to the Vice- Chancellor for approval, including seeking his view on the addition of an explanation of how funding for proposed initiatives is prioritised. DTS RPJ 8. Report to Senate The Committee agreed that its report to the next meeting of Senate would include the following items: DTS (a) (b) (c) The Committee s intention to discuss the impact of Professional Services budgets with relevant directors; An overview of the University s financial results, to complement the report of the Finance Committee; The Committee s plans to develop additional material for its website and an update on progress to date; 9. Dates of future meetings: The next meeting will take place on 23 January 2014, at 2.00pm in the Chancellor s Room. The Committee noted dates of additional meetings for 2013-14. 4
10. Any other business Committee representation on Finance Committee: In response to a situation that had arisen at the previous Finance Committee whereby both of the Committee s representatives had been unable to attend, it was agreed that members would be invited to deputise if this happened again in future. Members interested in deputising were requested to contact Professor Jenkins. Secretary s Note: Professor Warren has confirmed subsequently that he would be prepared to deputise at Finance Committee as required. All These Minutes were confirmed at a meeting held on 23 January 2014....... Chairman 5