Minutes of the Finance and General Purposes Committee

Finance and General Purposes Committee Minutes 19 June 2008

BIRKBECK University of London

MINUTES OF THE FINANCE AND GENERAL PURPOSES COMMITTEE

19 June 2008

Present: Mr Richard Agutter (Chair), Mr Robert Allison, Professor Philip Dewe, Ms Alison Goddard, Mr Tom Hoffman, Professor Matthew Innes, Professor David Latchman, Mr Drummond Leslie, Dame Mavis McDonald, Lord Marshall of Knightsbridge, Professor Michael Oaksford, Ms Gita Panchal, Professor Geoff Whitty.

In attendance: Mr Keith Harrison (Secretary and Clerk to the Governors), Mr Peter Westley (Director of Finance), Mr Philip Cowling (Director of Estates and Facilities), Mr David McGhie (Director of Planning), Ms Naina Patel (Director of Human Resources), Ms Megan Reeves (Deputy Secretary, Faculty of Continuing Education), Mrs Katharine Bock (Deputy Clerk to the Governors).

Apologies for Absence: Dr Anand Burman.

41 DECLARATION OF INTERESTS Noted: 41.1 Members of the Committee were asked to disclose in advance any actual or potential conflicts of interest in relation to the matters listed on the Agenda. In relation to minute 44 below, the Master noted his directorship of a company funded by IPSO Ventures.

42 MINUTES Confirmed: 42.1 The Minutes of the meeting of 5 March 2008.

43 REPORT TO THE GOVERNORS Noted: 43.1 Governors’ receipt of the Report of the Committee dated 5 March 2008 and the resolutions made by Governors. (F 2007 36)

44 INTELLECTUAL PROPERTY Noted: 44.1 At its last meeting, F&GPC had considered a proposal for Birkbeck to enter into partnership with IPSO Ventures, an Intellectual Property (IP) commercialisation company. The Committee supported the development of an integrated approach to IP but believed the risks involved should be further evaluated. It asked for more detailed examination of the proposals. Mr Robert Allison had taken this work forward and reported back to the Committee.

44.2 As a relatively new company formed approximately three years ago, IPSO did not have a substantial track record and had a limited amount of capital. Nevertheless, IPSO could be the only realistic IP option for Birkbeck given the nature of the College’s research profile and the level of existing IP experience among academic staff. The key benefit offered by IPSO was its undertaking to explore specific possibilities and ideas with individual academic colleagues. For this to work well, IPSO would need to retain and make available appropriate staff.

44.3 Commercial exploitation of IP was an important element in the Strategic Review recommendation to increase employer engagement.

Agreed: 44.4 F&GPC did not endorse the ten-year agreement set out in the current proposal. It recommended that College management pursue with IPSO the introduction of break options, either after five years, linked to performance or after significant staff change at IPSO; and that the decision on the agreement following these discussions should be referred to Governors if necessary.

44.5 College management should explore the potential of joint negotiation with other Bloomsbury colleges seeking to exploit IP.

Secretary’s Note: A five-year break option was subsequently agreed and at their meeting on 3 July 2008 Governors agreed that management should proceed to establish a formal agreement with IPSO.

45 STRATEGIC REVIEW Considered: 45.1 Recommendations arising from the Strategic Review, including consultation and initial work in preparation for implementation. (F 2007 37)

Noted: 45.2 The College aimed to have the detailed academic structure in place for 2009-10, to minimise the impact of delay in terms of longer-term planning and development. The intended timeframe would be balanced against the need to identify the right structures and consult fully.

45.3 In the new structure, financial responsibility would be devolved to the new Schools. F&GPC confirmed that it would approve budgets and that appropriate institution-level financial controls and reporting would be put in place.

45.4 The Academic Board Governors reported that the Board was generally supportive of the recommendations, but had expressed concern over moving to a managerial culture and had asked for evidence that the proposed model of restructuring was the right one.

2 Endorsed: 45.5 The proposed principles of change: integration of administrative student support structures; revision of the academic structure to a smaller number of larger Schools each headed by a senior academic with a dedicated managerial role; and mainstreaming the activities of the Faculty of Lifelong Learning.

45.6 Academic Board’s recommendation to add a fourth principle to maintain research excellence as a key characteristic of the college.

46 BUDGETS Forecast Outturn 2007-08 Received: 46.1 A note from the Director of Finance comparing the first estimates for 2007-08 with the current forecast financial outturn. (F 2007 38)

Noted: 46.2 The projections had improved from the £782K deficit originally forecast to a £398K surplus. The deficit had reduced incrementally over the year as previously reported.

46.3 Influencing factors included the release of provision for clawback of HEFCE funding (£624K), increased income from consultancy and the External Programme plus increased income from fees and room lettings, which allowed an increased allocation to the long-term maintenance budget. The £300K contingency provision had been released and the spending committees, especially Staffing Committee, had again been prudent.

First Estimates 2008-09 Considered: 46.4 The first budget estimates for 2008-09. (F 2007 39)

Noted: 46.5 The estimates had also been considered by the Resources Advisory Group and the Academic Board Executive Committee.

46.6 The forecast deficit was £880K, compared with the £1M deficit projected in the financial forecasts reported to F&GPC in November 2007. The estimates included contingency provision of £300K and took into account an anticipated increase of 8% in the pay bill, including an assumption of 4.2% for the Retail Price Index- linked pay award arising from the 2006 national pay agreement.

46.7 As in previous years, F&GPC was reluctant to recommend a deficit budget, but considered that this was inevitable while part-time HE provision was not adequately funded. The Committee endorsed the estimates but strongly recommended that the College exercise close control of costs during 2008-09, with the aim of improving the financial situation in-year.

Recommended to Governors:

3 46.8 Approval of the first budget estimates for 2008-09.

47 STUDENTS’ UNION Income and expenditure accounts Considered: 47.1 A report from the Students’ Union on its income and expenditure accounts for 2007-08. (F 2007 40)

Noted: 47.2 The Acting President thanked Union staff for their work in preparing the accounts.

Budget 2008-09 Considered: 47.3 The Students’ Union’s proposed budget for 2008-09. (F 2007 41)

Noted: 47.4 Provision had increased to £246K compared with £169K the previous year, in response to the changes in the Union’s constitution to include lifelong learning students, which would increase potential membership from 7,000 to 19,000. The allocation included provision for increased demand for clubs and societies and increased hours of availability for the advice centre. It also included a contribution towards an additional post jointly funded by the Union and the College to support the development of effective Union management under the new constitution. The Union also aspired to raise funds through external grants, for example widening participation funding, and would be working with College officers to achieve this.

47.5 At its last meeting F&GPC had endorsed a draft financial memorandum between the College and the Students’ Union, which would underpin new budgetary arrangements after the Union became independent in August 2008. This would be updated to reflect the agreed budget allocation and put to Governors for final formal approval at their meeting on 3 July 2008.

Approved: 47.6 The report from the Students’ Union on its income and expenditure accounts for 2007-08.

47.7 The Students’ Union’s proposed budget for 2008-09.

48 KEY PERFORMANCE INDICATORS Noted: 48.1 Key Performance Indicators on financial, estates and human resources. (F 2007 42)

49 INVESTMENT SUB-COMMITTEE Received:

4 49.1 The Report of the Investment Sub-committee following its meeting on 28 May 2008. (F 2007 43)

Noted: 49.2 The Committee had considered future investment strategy and had agreed to tender for active investment management. The Committee also decided to reduce the percentage holding in UK Equities by £1M and transfer the proceeds into the Cash Trust.

50 RESOURCES ADVISORY GROUP Considered: 50.1 A report from the Resources Advisory Group following its meeting on 11 June 2008. (F 2007 44)

Noted: 50.2 RAG continued to provide a useful forum for confirming the balance in priorities at College level for budget allocations. In considering the recommendations of the Buildings Committee, RAG had recommended a reduction in the proposed buildings programme allocation from £320K to £220K and had endorsed the recommended allocations for long term maintenance and furniture and equipment. These recommendations had been built into the first budget estimates noted in Minute 46 above.

51 BUILDINGS COMMITTEE Received: 51.1 The report of the Buildings Committee following its meeting on 13 May 2008. (F 2007 45)

Budget allocations 2008-09 Noted: 51.2 Buildings Committee’s recommended budget allocations:  £320K for the 2008-09 buildings programme budget  £650K for the 2008-09 long-term maintenance budget  £90k for the 2008-09 furniture and equipment budget, a 5% reduction on the previous year.

51.3 The long term maintenance allocation included a base allocation of £500K and an additional £150K from the 2007-08 allocation which had been increased in-year but not spent because of the timescale of associated building projects. Long-term maintenance work to a value of an additional £2,538K has been deferred for the short term due to anticipated budget constraints and would be kept under review through the Buildings Committee and RAG.

Agreed: 51.4 A budget allocation of £320K for the buildings programme, reduced from the proposed £320K as recommended by RAG (see Minute 50.2 above).

5 51.5 Budget allocations of £650K for long term maintenance and £90K for furniture and equipment.

Senate House North Block and Alternative Accommodation Noted: 51.6 Buildings Committee reported on progress in addressing the issue of vacation of accommodation in the Senate House North Block. College officers had met with the Vice-Chancellor to discuss the proposed clean break arrangement, in which Birkbeck would leave SHNB without guaranteed right of return in exchange for financial compensation. The University had confirmed its commitment to reaching a settlement.

51.7 Following Governors’ agreement in March 2008 to pursue the option of long-term property acquisition as an alternative to temporary accommodation, it was reported that the London School of Hygiene and Tropical Medicine has taken its houses at 8-9 Bedford Square and 99 Gower Street off the market and was in exclusive negotiations with Birkbeck. These properties had been for sale for a total of £9M and Birkbeck’s advisers had valued them at £8.5M. As previously reported, the properties could provide medium or long term accommodation, depending on use of the North Block post-rewiring.

51.8 Buildings Committee also reported to F&GPC its consideration of plans for redevelopment of the Main Building to modernise research facilities for the Schools of Crystallography and Biological and Chemical Sciences. This scheme also had scope to accommodate North Block facilities not suited to the LSHTM houses. It was subject to funding bids being considered by the Wellcome Trust and the Wolfson Foundation, with possible further funding from the Capital Investment Fund allocation.

Russell Square 51.9 Buildings Committee reported that following positive meetings between senior representatives of Camden, the Wiener Library and Birkbeck, a planning application for an internal lift, presenting all the factors relating to conservation issues and access needs for the Wiener Library, would be submitted. F&GPC also heard that Wiener staff had had discussions with Queen Mary, University of London, as a potential alternative host, but that it was understood that this was intended as a contingency measure and that the Wiener remained committed to moving to Birkbeck, as evidenced by its agreement to share the costs of the lift planning application.

Space Management 51.10 Buildings Committee had received the report of its Space Management Sub- committee and noted a pilot scheme for advance booking of conference space in the summer peak period. It also noted the continuing severe pressure on space. A survey of office size was being undertaken and rooms larger than 16m2 would be identified and reported to the Sub-Committee, which would develop a strategy on sharing office space.

Birkbeck Stratford 51.11 Positive developments were reported. Negotiations with potential partners continued and the London Thames Gateway Development Corporation (LTGDC)

6 had confirmed allocation of £3M to the project and earmarked a further £3M subject to its further development. LTGDC was funding and co-ordinating the production of a new Business Plan documenting the project structure, the partnership between participating institutions, the academic curriculum plan, forecast student numbers and income projections, which would be used to support bids to funding agencies.

51.12 Newham Council had named Birkbeck as the designated user of the site at Stratford and had stated that it would grant Birkbeck a long-term lease.

52 STAFFING COMMITTEE Received; 52.1 The Report of the Staffing Committee following its meeting on 20 May 2008. (F 2007 46)

New and Amended Posts Approved: 52.2 New and Amended posts with a net total per annum saving of £37,942.

Noted: 52.3 The Committee had achieved substantial savings by replacing posts at lower grades where appropriate.

HR Strategy Annual Report and Action Plan Recommended to Governors: 52.4 Approval of the HR Strategy Annual Report and Action Plan, which had also been endorsed by Staffing Committee.

Annual Report on the implementation of the Gender Equality Scheme Considered: 52.5 The annual report from the Diversity Champion on progress made in the first year of the Gender Equality Scheme, which had been endorsed by the Staffing Committee.

Noted: 52.6 Good progress had been reported on:  Impact of the new pay and grading structure;  Policies for flexible working, caring and family issues and maternity and career breaks. Areas identified for action included more systematic feedback on progress and monitoring.

Recommended to Governors: 52.7 Approval of the annual report on the implementation of the Gender Equality Scheme.

53 REMUNERATION COMMITTEE Noted:

7 53.1 Financial implications arising from the report of the Remuneration Committee that would be made to Governors on 3 July 2008. (F 2007 47)

54 HOUSE COMMITTEE Received: 54.1 The report of the House Committee following its meeting on 2 June. (F 2007 48)

55 ELECTION OF CHAIR FOR 2008-09 The Committee elected Mr Richard Agutter as its Chair for 2008-09.

56 RETIRING MEMBERS Noted: 56.1 The Chair and members thanked the following members for their services to F&GPC on the end of their terms of office as Governors:  Dame Mavis McDonald  Ms Alison Goddard  Professor Geoff Whitty

57 DATES OF MEETINGS IN 2008-09 Noted: 57.1 The dates of meetings for the next session: Wednesday 12 November 2008 Wednesday 4 March 2009 Thursday 18 June 2009

Signed……………………………………..

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