Item 1.1 MINUTE OF MEETING Meeting of the Board of Creative Scotland 6 October, 10am 5pm David Douglas Room, Royal Botanic Garden, Edinburgh Attended: Ben Thomson (BT) Barclay Price (BP) Karthik Subramanya (KS) Karen Forbes (KF) Ruth Wishart (RW) Sheila Murray (SM) Cate Nelson-Shaw (CNS) Erin Foster (EF) David Brew (DB) Maggie Kinloch (MK) Ian Aitchison (IA) Chair Deputy Chair Present: Janet Archer (JA) Ian Munro (IM) Kenneth Fowler (KeF) Philip Deverell (PD) Claire Byers (CB) Natalie Usher (NU) Clive Gillman (CG) Ian Stevenson (IS) Karen Lannigan (KL) Annette Smith (AS) Chief Executive Deputy Chief Executive Director, Communications Director, Strategy Director, Arts & Engagement Director, Screen Director, Creative Industries Director, Finance Director, HR and Office Services Senior Executive Assistant (Note) In Attendance: Jonathan Pryce (JP) Director, Culture, Tourism and Major Events, Scottish Government (observer for items 3 & 4) Suzy Glass (SG) Project Manager (item 3) Alastair Evans (AE) Head of Knowledge and Research (item 3) Rachel Gwyon (RG) Screen Project Director, Scottish Government (item 4) 1
1. Apologies and Declarations of Interest No apologies tabled. A declaration of interest was received from CNS who informed the Board that Remarkable will shortly be delivering IIP for Creative Scotland. BT welcomed JP to the meeting and advised that he would be observing the RFO process and Screen Unit items. There were general introductions from all present. 1.1 Minute of the Previous Board Meeting: 27 July 2017 The minutes were approved as an accurate record. 2. Matters Arising It was agreed that the EDI item should be deferred to a future meeting given the full agenda for today s meeting. BT advised that the Board Succession planning is being progressed and should commence in February/March 2018 after the Chair decision is announced. BT briefed that the agenda for the proposed Board Development day was still undecided. JA advised that there is provisional commitment for Jan Polley to deliver a workshop in the near future, should it be required. BT advised that training requirements could be discussed during individual Annual Reviews due to take place in November. Action: Development needs to be agreed before February Board. Action: AS to issue dates to s re Annual Reviews 3. RFO Scenario Planning 3.1 Context IM provided an introduction for the Board, providing context for the RFO process noting that the budget position is deeply challenging especially with the reduction in National Lottery funding, which is reinforcing the depth of challenges ahead given possible reductions in GiA budgets. It was noted that Local Authority cuts will also detrimentally affect organisations. The Board were mindful that this drop in funding is set against a potential increase of 10m to Screen, and other recent Scottish Government culture announcements such as 5m to Edinburgh s Festivals and 10m to Paisley to assist with the UK City of Culture 2021 bid. The comparison with the equivalent ACE portfolio of a 4-year regular funding settlement for organisations in England was discussed. 3.2 Scenarios 2
SG provided an update on process. KF and EF both noted their attendance as observers at recent internal meetings with Directors and Specialism Heads where scenarios had been presented and discussed. KF and EF both reported positively on the thoroughness of the well-run process and depth of discussion. The Board then reviewed the various financial planning scenarios in detail and the implications arising from each. Several scenarios demonstrated the inability to support a strong network of organisations across Scotland, and the severe negative impacts culturally, socially and economically which would arise. Understanding the role of open project and targeted funding, alongside Regular Funding, was discussed. In particular, there was recognition of the need to investigate new, more effective approaches to Equalities, Diversity and Inclusion through a sustained targeted funding approach. BAME arts is particularly underrepresented and needs clearer intent, resources and focus. The Board interrogated each option and expressed a strong view on the need to make the strongest case to the Scottish Government to ensure the unacceptable and severely damaging implications of any reduction in income are understood, and the need to address the National Lottery position. Further scenarios were requested for discussion at the next Board meeting. The Board asked that thanks be passed to all staff for their hard work to date. 4. Screen Unit Rachel Gwyon (RG), Project Director for the Screen Unit, was welcomed to the meeting. JA recapped the background to the Screen Unit and the potential for an extra 10m for the screen sector, noting that the Screen Unit was included in the Programme for Government (PfG). JA was appointed SRO after Richard Findlay sadly passed away, and reminded the Board of the governance structure for the work - Project Board and Sponsor Board with partners; and a Creative Scotland Screen Committee with two co-opted sector representatives. The Board noted that the blueprint has been informed by 8 workstreams, some led by CS, some by other partner agencies. NU briefed the Board regarding the workstreams. RG talked to a presentation and advised that the remit for the Screen Unit has been signed off by all CEOs of partner agencies noting another partner, South of Scotland agency will be approached once this agency is legally incorporated. RG advised that a Parliamentary Enquiry will run in parallel with discussions and a future announcement regarding the Screen Unit. 3
The Board discussed the emerging detail of the blueprint and the opportunities and challenges presented. NU provided an overview of the current sector work and successes, noting expectations and needs associated with the Screen Unit development. The need to ensure partnership momentum to deliver against the tight timeframe for submission to Cabinet Secretary was noted. The next steps are for the blueprint to be presented to the Screen Committee on 19 October and then passed to the Board for final approval, before presentation to the Cabinet Secretary on 7 November. The Board noted it continues to positively welcome the Screen Unit but members were mindful of the significant challenges with regard to other budgets and the RFO process. Action: Board to provide any comments on the draft Blueprint to JA. 5. Screen Committee: 2 October 2017 BP briefed the Board on the most recent Screen Committee meeting on 2 October and the work undertaken to scrutinise and input into progress on the Screen Unit. 6. Hospitalfield PD presented an overview of the capital project, recapping the background to date, noting the changed phasing and revised budget. The request by Hospitalfield to proceed with the first phase and release of 350k of funding was discussed by the Board. It was noted there had been a range of discussions with Hospitalfield, HLF and other partners, including between Chairs, to understand the status of existing funding commitments and future funding plans. As one of the few major cultural facilities in the area, the strategic significance of the project was recognised as a priority for Angus Council and included within the local Tay Cities Deal. There was considerable discussion on the uncertainties and risks of not securing the full funding package to enable further phases and the development to be completed, however it was recognised that a significant proportion of artistic, audience and wider public benefit would be delivered through the initial phase. The funding package was reviewed and PD advised that there is a strong likelihood if CS does not agree to release funds, then HLF will withdraw and the project will be unable to proceed. The revenue position and risks were also discussed. 4
BT reminded the Board that the decision to commit 900k had been made previously following a rigorous assessment, the decision being requested today was to the release of 350k towards an initial phase of works and enable the HLF commitment to be made in support. Decision: Board agreed to release the 350K Funding. 7. Fruitmarket Gallery The Board was advised that this capital development project had very recently been informed that it had not secured HLF funding. To give the organisation time to absorb the news and consider its options, PD requested to extend the deadline for receipt of the Stage 2 application to the end of this financial year. It was noted that Fruitmarket had already received an extension of time and the request for another extension was debated. The time and complexity associated with significant capital developments was noted. The provision for visual arts in the city was discussed and the strategic importance of the Fruitmarket recognised nationally and internationally. Decision: The Board agreed to the request for more time but no longer than the end of the current financial year. A progress report was requested in December. Action: Progress report to be brought to the Board in December 2017 8. Audit & Risk Committee 31 August 2017 Internal Audit The Board were informed that the Internal Audit Plan was discussed. External Audit The Board were informed that effective controls are in place in line with Audit requirements. 9. Annual Accounts 2016-17 The Chair of the Audit & Risk Committee noted the Committee had reviewed the Annual Accounts with Audit Scotland and was satisfied all comments have been taken on board. There were with no objections to the accounts being signed off. The Board reviewed the Annual Accounts for both Grant in Aid and the National Lottery Distribution Fund. Decision: Board approved the Annual Accounts. 10. Executive Report A range of matters noted in the report was discussed, including an independent review of ICT systems to enable next steps on implementation of the ICT strategy. 5
BT advised that the report will be reviewed by the Executive then be discussed with both Committees, as appropriate. 11. F & G P Committee 13 September 2017 The Committee will continue to review the action plan and progress arising from the recent Employee Engagement Survey. An update on the ongoing pay negotiations was provided, noting the constructive relationship with PCS and Unite Unions. 12. Board Review An update on the Chair Recruitment Process was provided, noting that the recruitment advert was issued by Scottish Government on 28 September with a closing date of 27 October. Interviews will take place in November and a summary of the process was provided. 13. AOB All present were asked to encourage anyone they thought may be interested in the position to apply. KS advised that the process to recruit new s was being timetabled for February-March 2018 by the Scottish Government. It was requested that Board meeting agendas should include provision for Private Sessions for Board members, as appropriate. Separately, IM flagged the need for extra Board meetings as necessary to enable appropriate governance on important business matters such as Regular Funding and the Screen Unit. Action: AS to arrange Extraordinary Board meetings. 14. Date of Next Meeting Doodle Poll to be issued to s to establish appropriate dates. Signed: Dated: 6