MEMBERSHIP: FINANCE AND HUMAN RESOURCES COMMITTEE MEETING HELD AT 3.00 pm ON THURSDAY 16 JUNE 2016 AT THE SUTTON ACADEMY Dr J Burford * Mrs S Jee * Mr G Pennington * Mr N Jackson * Mr R Molloy (Chair) * Mrs A Sherman (Principal) * Denotes Member present IN ATTENDANCE: Mrs J Tallant, Chief Financial Officer Mrs C Jones, Clerk to the Governing Body MINUTES Before the meeting commenced, Mrs S Jee announced that she would be resigning from the Sutton Academy Governing Body from July 2016, due to other commitments, which included resignation as Chair and member of the Finance and HR Committee. The Chair on behalf of the Committee expressed their sincere appreciation to Mrs Jee for her invaluable and significant contribution to the work of the Finance and HR Committee throughout her term-of-office. It was agreed that Mr R Molloy would take the Chair for this meeting. 1 DECLARATIONS OF INTEREST/POTENTIAL CONFLICTS OF LOYALTY All Governors present acknowledged at the onset of today s meeting that whilst potential conflicts of loyalties may exist, they must act only in the interests of the Academy. The Committee agreed that there were no specific matters on the meeting agenda which required an interest to be considered. 2 APOLOGIES FOR ABSENCE Apologies for absence were received from Dr J Burford (LCR Area Review meeting). 3 NOTIFICATION OF URGENT BUSINESS There were no items of urgent business notified. FinandHRmin0616.cmj 1
4 MINUTES OF PREVIOUS MEETING HELD ON 25 FEBRUARY 2016 The open and confidential minutes of the previous meeting held on 25 February 2016 were agreed and signed as a correct record. 5 MATTERS ARISING Open Minutes: a Minute 5a p2 Matters Arising Service Level Agreement: Local Authority The action relating to the Leisure Centre SLA was discussed as a nonpriority action and this would be reported back to Governors as and when required. b Minute 6 p3 Management Accounts: December 2015 The action relating to the year-end accounting reserves analysis would be reported under agenda item 8 Draft 3-year Financial Forecast and Draft Budget for 2016/17. c d e f g h i Minute 7 p4 Academy Development Plan: Financial Implications A separate meeting of the Governing Body had been held to receive the latest tracking data. Minute 7.2 p4 Action Plan: Disadvantaged Pupils: Development plan The Principal reported that a presentation about the Disadvantaged Pupil development plan had been reported at the February 2017 meeting of the Standards and Curriculum Committee. Minute 10 p5 Authorisation of Pay Progress Awards for non-teaching staff The Principal reported that some examples of teaching/non-teaching staff appraisals had been presented at the last meeting of the Governing Body. Minute 11 p5 HR Key PI report The CFO reported that the sponsor HR department had provided central guidance relating to the regulations relating to the deferment of jury service, and it was noted that there is one opportunity awarded for a deferment nonattendance The Committee agreed to continue to support staff who are requested to attend jury service, but it must be authorised in line with the service of the Academy Minute 12.2 p6 Risk Management Register The Principal reported that the Risk Management Register had been ragrated. Minute 13.1 p6 Communication Strategies The achievements and successes are being included in future Principal s reports to the Governing Body. Minute 13.2 p6 Annual assurance of information required by law for inclusion on the website The Principal had provided assurances to the Governing Body that information required by law had been included on the Academy website. FinandHRmin0616.cmj 2
j k Minute 14 p7 Capital Review Request Humanities Block This request had been replaced by the capital review request relating to the summer works, to be considered as a separate agenda item at today s meeting. Minute 19 p7 Staff survey and action plan The staff survey and associated action plan had been circulated to the DfE and to all Governors and the detail had also been shared with staff. The staff welfare group is now operational. A repeated staff survey will be undertaken in the new academic year. Confidential Minutes: l Minute 15 p9 Amendments to the Service Level Agreement costs (St Helens Council) The action relating to the cleaning contract will be taken under agenda item 12 Premises Cost Tenders. m n Minute 15 p9 update from NABARRO regarding challenging the pension deficit This action would be discussed under Minute Number 12 Premised cost tenders. Estates management proposal The Principal provided an update on some changes to the Estates management role. This post was currently being advertised, which was endorsed by the Committee. The Principal was invited to be in attendance only for the next item AUDIT REPORTS 6 INTERNAL AUDIT REPORT: PAYROLL AND CASH MANAGEMENT The CFO presented the internal audit report: Payroll and Cash Management, with no recommendations identified resulting from the audit work. It was noted that further testing would be undertaken at the Academy over the coming months as the use of the new Parent Pay System increased. The Finance and HR Committee accepted the internal audit report: Payroll and Cash Management, as presented, with Governors commending the CFO and the Finance Team for such a positive audit. 7 MANAGEMENT ACCOUNTS: APRIL 2016 The CFO presented the revised Management Accounts for the period ended 30 April 2016 which summarised the College s financial position for the period, and identified significant variances against the current forecast for the financial year 2015/16. The College s financial performance was summarised in the KPI Dashboard presented, with further detail on each of the KPIs included within the presented report. FinandHRmin0616.cmj 3
It was reported that The Sutton Academy s financial results showed a deficit of [ 305k] for the first eight months ended 30 April 2016. The forecasted deficit for the same period was reported at [ 270k], giving rise to an adverse variance of [ 35k]. The revised forecasted out-turn for the year reflected a deficit of [ 384k]. The previously forecast deficit was [ 355k] with the increase in the forecasted deficit summarised within the presented report. It was noted that there was a negative cash flow for the period of 26k and a forecasted positive cash flow of 86k. This gave rise to a negative variance of 112k for the period. Cash and bank deposits at 30 April 2016 were reported at 1,152k compared with the 1,039k identified in the financial plan, giving rise to a positive cash variance against budget for the year to date of 113k. The associated detail was analysed within the presented commentary. The Finance and HR Committee approved the Management Accounts to 30 April 2016, and recommended approval of the Management Accounts to the Governing Body. 8 DRAFT 3-YEAR FINANCIAL FORECAST AND DRAFT BUDGET FOR 2016/17 The CFO presented the Academy s Revised Three Year Forecast for the financial years 2016/17 to 2018/19 based on income allocations from the Education Funding Agency, with the details outlined. As part of the planning assumptions taken in formulating the Financial Forecast, the staffing salary inflation costs were reported, and the remaining planning assumptions were also noted. The Committee discussed the forecasted 2k deficit for 2016/17 and asked whether this was a sufficient surplus going forward. The CFO reported a recent 20k reduction in income from the EFA which, following query, had been confirmed by the EFA as being recoverable, and this had not been included in the forecast as presented. The Principal also confirmed that the reduction in pupil premium pupils remains an estimated figure which needs to be further clarified. After due consideration and discussion, the Finance and HR Committee approved the revised 3-year Financial Forecast 2016-2017 and draft Budget 2016/17 and recommended approval to the full Governing Body, subject to the inclusion of the 20k EFA income referenced earlier. The Committee also approved the catering subsidy of 25k as detailed in the non-pay costs section of the presented report. This included approval of the drawing of unspent funds brought forward from previous financial years to fund the deficit budget projected for 2016/17. ACTION: CFO to present the 3-year Financial Forecast 2016-2017 and the draft Budget 2016-17 to the full Governing Body at the next meeting for approval FinandHRmin0616.cmj 4
9 ACADEMY DEVELOPMENT PLAN 9.1 Financial Implications The Principal presented the ADP financial update, highlighting the areas that reflected both an overspend and an underspend. It was noted that the Faculty leadership training would be repeated for the pastoral lead staff. The Committee noted the additional costs incurred relating to the employment of the additional attendance officer, acknowledging that this had led to attendance now being above the national average, which was welcomed by Governors. The financial implications report was accepted by the Finance and HR Committee. 9.2 Action Plan: Disadvantaged Pupils: Development plan The Principal presented the latest Disadvantaged Pupils development plan which it was noted was subsumed into the Academy Development Plan. The Principal acknowledged that the evidence against the strategic priority to narrow the achievement gap between disadvantaged pupils and their peers was not yet available, but that this would hopefully materialise as part of the year-end outcomes. ECDL developments were reported as being spasmodic and had not run as smoothly as planned, but it was hoped that this would improve going forward. The Committee asked whether pupils were asked their opinion as to which interventions had helped them best, with the Principal responding that this was usually assessed by positive pupil attendance. The Disadvantaged Pupils development plan was accepted by the Finance and HR Committee as presented. 10 DfE COMMUNICATION: CONSENT FOR 125-YEAR LEASE The CFO reported that a letter had been received from the DfE relating to the consent for a 125 year lease relating to The Sutton Academy. This communication confirmed that, pursuant to para 4(s) of Schedule 1 to the Academies Act 2010 (as substituted by Schedule 14 to the Education Act 2011) and Section 77 of the School Standards and Framework Act 1998, the authority to dispose of land to the Academy Trust. The Principal raised the snagging issues relating to the new build, and it was agreed that the snagging list would need to be obtained and understood before the current Director of ICT and Estates left post. ACTION: Principal/CFO to ensure that the snagging list is handed over and understood prior to the departure of the Director of ICT and Estates The letter was duly accepted by the Finance and HR Committee. FinandHRmin0616.cmj 5
11 REPORT ON THE INSURANCE RENEWAL The CFO presented a report which advised the Finance and HR Committee of the insurance renewal cost for the period September 2016 to August 2017. The report also provided an update in relation to an alternative to insurance where losses were covered by UK government funds (Risk Protection Arrangements RPA). After due consideration and discussion, the Finance and HR Committee agreed to accept the recommendation presented to continue the insurance policy with Zurich for a further one-year period, with this decision based both on value-for-money and the excellent levels of service received thus far. The cost difference between the RPA and the Zurich renewal, amounting to 3k, will be included in the 3-year Financial Forecast. 12 PREMISES COST TENDERS: GROUNDS MAINTENANCE, WASTE MANAGEMENT AND CLEANING A report was presented which advised the Finance and HR Committee about the outcome of the review of the Waste management and Grounds Maintenance contracts/service levels agreements and provided an updated in respect of the progress made in relation to the Cleaning contract tender. After due consideration and discussion, the Finance and HR Committee agreed to accept the following recommendations, with the decisions taken based on value-formoney: Waste management to remain with St Helens Council (Bank holidays to be managed by the Academy as part of the contract). Grounds Maintenance to change to GP Landscapes (subject to suitable references being sought). ACTION: CFO to take up references for GP Landscapes Cleaning contract this item was considered to be confidential by the Committee, with the details therefore recorded within the confidential minutes of this meeting. 13 BROADBAND RENEWAL The Finance and HR Committee endorsed the former emailed proposal undertaken circulated to members of the Committee to renew the Academy s Broadband contract with Virgin Media for a 5-year period. It was noted that there had been no objections received from any member of the Committee following the proposal, which had been sent out on 19 May 2016 due to the timing of the required decision. 14 PROPOSAL FOR SENIOR LEADERSHIP STRUCTURE This item was considered to be confidential by the Finance and HR Committee with the details therefore recorded within the confidential minutes of this meeting. FinandHRmin0616.cmj 6
15 CAPITAL REVIEW REQUESTS The following capital review requests were approved by the Finance and HR Committee: 15.1 15/C/005: Partial replacement of heating installation: update report provided on the tender position. (this request had previously approved by the Governing Body on 27 April 2016) 15.2 15/C/006: Kitchen Refurbishment 15.3 15/C/007: Academy refurbishment works Summer 2016, with the associated costs to be budgeted over two years (this replaced the former consideration of the refurbishment of the humanities block with the planned changes summarised by the Principal). 15.4 15/C/008: IT equipment it was confirmed that the equipment is disposed of appropriately and equipment is cannibalised where possible. (Agenda items 15.3 and 15.4 approved for recommendation to the Governing Body) Following a question about the project management of the heating installation and the summer works, it was confirmed that there were contingency plans in place for this oversight, with the Committee assured that the EFA guidelines were being followed in relation to professional fee costs. 16 HR KEY PI REPORT The Principal presented the HR Key PI report, which included a detailed staffing profile of teaching staff and support staff, including ages, gender and ethnicity profiles. The report also included details of the staffing absence statistics, and also the number of appointments and leavers, with the details discussed by the Committee. The sickness absence procedures are to be tightened for the new Academic year, including the procedures relating to authorised leave of absence. Following a question from the Committee, it was confirmed that there were identifiable patterns emerging that need to be addressed. The staff turnover was discussed with a number of good new key appointments joining the Academy in September 2016. The Committee commended the Principal for overseeing such timely appointments following those resignations received. Following a question from the Committee about the number of NQTs, it was confirmed that these numbers had not increased. The HR Key PI report was accepted by the Finance and HR Committee as presented. FinandHRmin0616.cmj 7
17 NJC LOCAL GOVERNMENT SALARY SCALES INCREASE (NON-TEACHERS PAY AWARD) The CFO presented a report which advised the Finance and HR Committee about the NJC Local Government agreement in respect of the rates of pay applicable from 1 April 2016 to 1 April 2017 for support staff, with the proposal summarised. The Committee discussed the contractual arrangements relating to an automatic pay award, and it was commended that new staff could be subject to different contract arrangements, with consideration also to be given to existing staffing contractual arrangements. ACTION: Principal to discuss contractual arrangements both for new and existing staff with the sponsor HR department, as discussed by the Finance and HR Committee After due consideration and discussion, the Finance and HR Committee approved the recommended support staff pay award, and recommended approval to the Governing Body. 18 POLICY 18.1 Pay Policy for Teaching Staff The Principal presented the revised Pay Policy for review by the Committee, with the pay scales adjustment being the only change for consideration. Following a question from the Committee, the Principal clarified section 4.0 regarding pay progression and appraisal reports. It was confirmed that the managers do not recommend pay progressions in practice. The revised Pay Policy was approved by the Finance and HR Committee as presented. 18.2 Employment Performance Procedure The Principal presented the revised Employment Performance Procedure for review by the Committee. It was noted that this procedure is based on an updated and strengthened version of the Local Authority Policy already in place, and should not raise any union objections, and is relevant to all staff. The scheme of delegation regarding the dismissal of staff, and the appropriate appeals procedure, needs to be clarified. ACTION: Principal to confirm the scheme of delegation regarding the dismissal of staff and the associated appeals procedure The revised Employment Performance Procedure was approved by the Finance and HR Committee as presented, subject to further clarification of the above conditions. FinandHRmin0616.cmj 8
19 ACTIONS FROM CHAIR S MEETING 19.1 Communication Strategies The Chairs, at their last annual meeting, had requested that communication and celebration strategies be included on each agenda which was in response to the DfE request that communication be improved for staff. The Principal reported that a number of communication strategies were now in place, including weekly staff briefings, wine of the week nominations as part of celebrating success and sharing good practice 19.2 Governor Job Description (Draft) As recommended at the Chair s meeting held in January 2016, a proposed Governor Job Description and Person Specification was approved by the Finance and HR Committee as presented, subject to one amendment to include reference to Prevent as part of Safeguarding within the person specification. This document would be included within the next edition of the Academy s Standing Orders/Code of Conduct as part of the next review. ACTION: Clerk to include the Governor job description and person specification in the next edition of the Academy s Standing Orders/Code of Conduct 20 URGENT ITEMS (as notified under Item 3 above) There were no items of urgent business notified. 21 DATE AND TIME OF NEXT MEETING: Schedule of meetings to be agreed. FinandHRmin0616.cmj 9