91¿´Æ¬

The Chair welcomed members to the first meeting of the University Court for the academic session. Apologies were noted as having been received from Julie Churchill.

There was no Other Competent Business identified.

4.1 Minutes of the previous meeting

The Unconfirmed minutes of the meeting of the University Court held on 21 June 2023 (paper Court (23) MINS 03) were APPROVED as an accurate record, subject to:Ìý

• an amendment to Minute 8 to record that financial forecasts were subject to regular review and refinement to reflect changing circumstances, and
• an amendment to Minute 18 to correct a minor typographical error.Ìý

4.2 Matters arising

There were no matters arising from the minutes.

The Chair reported that her most significant University engagement since the previous meeting had been her participation in the graduation ceremonies held at the Usher Hall on 3 and 4 July 2023. She extended her congratulations to the graduates and her thanks to 91¿´Æ¬ staff for their hard work in preparing for and delivering the event. The graduation ceremonies were hugely enjoyable occasions that provided an important opportunity for the whole University community to come together to recognise and celebrate student academic achievement, and the contribution to that made by academic staff.Ìý

The Chair continued to meet regularly with the Principal and the Vice Principal & University Secretary to advance the business of the Court. She had met most recently with the Conveners of the Audit and Risk, Finance and Estates, and Health and Safety Committees to discuss the programme of work to be progressed over the academic year 2023-24.Ìý

Discussion continued with the Head of Strategic Planning and Policy Development on the development of a revised approach to Key Performance Indicators (KPIs). An update on the draft suite and an opportunity for members to contribute to the development would be provided at the December meeting of the Court. The Chair had also met recently with the Dean of Health Sciences to learn more about current work and current and future opportunities and challenges.Ìý

The process for lay member recruitment was current ‘live’, the deadline for applications having been extended by four weeks to 22 October 2023.Ìý It was planned that the Nominations Committee would shortlist candidates for interview at the end of October 202, with interviews scheduled in November 2023. In recognition of the value of diversity of perspectives and lived experiences, applications were being encouraged from people identifying as Black, Asian or from a Minority Ethnic background. To preserve gender balance on the Court in accordance with the Gender Representation on Public Boards (Scotland) Act 2018, applications from women were also being encouraged.Ìý

Finally, the Chair provided members with a brief update on progress towards a number of actions agreed at the Strategy Day:

• The Audit and Risk Committee had considered the Risk Register at its meeting in June 2023. The Risk Appetite Statement was expected to be considered at the December meeting of the Court.Ìý
• Appointments to the Land Development Advisory Group were in progress, and expected to be finalised shortly.Ìý Court’s interests were represented by the appointment of Steven Hendry, Elizabeth Porter and Guy Smith.ÌýÌý
• The ‘break even’ assumptions around the budget were subject to review by the Finance and Estates Committee.Ìý

The Principal advised that, as he had provided members in late August with a written overview of internal and external developments, his report would be brief on this occasion. In his report (paper Court (23) 28), he had provided further update on some matters in that communication, along with more recent developments.Ìý

6.1 Sector updates

Members had received a briefing at the June Court meeting on the publication of the following Scottish Government commissioned reports (minute 6.1, 21 June 2023 refers):

• The Independent Review of the Skills Delivery Landscape (Withers Review)
• The Innovation Strategy 2023-2033

Since then, the following reports had been published, as detailed in the Principal’s summer communication:

• The Independent Review of Qualifications and Assessment (Hayward Review);
• Entrepreneurial campus;
• Post-school Education, Research and Skills - Purpose and Principles

Further strategy documents likely to have a direct impact on the operation of sector resourcing were in development, although exact publication dates were not known. These included:Ìý

• A Student Mental Health Action Plan in the context of a recently published (June 2023) Mental Health and Wellbeing Strategy.
• The outcomes from a Purpose-Built Student Accommodation (PBSA) Review.
• An International Strategy.
• A Tertiary Quality Framework.

At this stage, the Withers Review appeared to have gained the most traction, but might struggle to secure the necessary parliamentary time. Members would receive regular briefing on the above.Ìý

The Principal reported that he had convened a Scottish sector-wide meeting with the Higher Education trade unions on 3 October 2023. Pay negotiations remained an area of dispute, but were being conducted at the UK level. As such, the meeting had focussed on other areas of common interest, including the level of government investment in higher education, and support for student mental health. The Principal was pleased to report that discussions had been constructive, and respectful of institutional autonomy. He anticipated that further meetings would be scheduled as part of the ongoing dialogue between institutions and the unions.Ìý

6.2 Finance and Operations

The Principal suggested that academic years 2023-24 and 2024-25 continued to be transitional years, as the sector and the economy recovered from recent financial shocks, including inflationary pressure.Ìý Part of the process for internal recovery would be consideration of the University’s ‘operating model’ as a contribution to long-term financial sustainability and protection of a high-quality experience for students, staff, and other stakeholders. This was motivated not just by recent financial shocks to the economy, but by an internal understanding that adaptation to the university’s business required adaptation in its processes.Ìý The first phase of a project to develop a ‘Target Operating Model’ or ‘TOM’, to be conducted during 2023-24, would be a comprehensive review of process and systems. The TOM review would be supported by external consultants, and would consider changes to the operating context, including in relation to student demographics and hybrid working patterns. These were unlikely to be significant changes, and any such changes would be the result of a co-created with staff and students. It was intended that there would be a three-to-five-year implementation plan for identified enhancements, which were expected to be largely in the form of increased automation of processes, where this benefited stakeholders. The first 6 months of the project would be the ‘discovery’ phase, which meant that it would take to the follow Spring to agree the focus. The project would require investment which would be accommodated through the Strategic Investment Fund. The Chief Operations Officer and Director of Finance were involved in an initial review of bids for capital investment to deliver a five-year rolling investment fund. Further detail on the Capital Plan was provided under the Court budget update (minute 7.2 refers).

6.3 Student Recruitment

An update was provided on student recruitment for Session 2023-24.Ìý

Members were advised that student recruitment had largely concluded for entry in Semester one. Total student numbers would not be confirmed until later in the academic session, once second semester starts and TNE numbers were confirmed. In terms of new entrants, while undergraduate applications had fallen, with resulting impact on the achievement of targets, it was expected that Scottish domiciled funded numbers would be within the Scottish Funding Council’s tolerance threshold.Ìý

Undergraduate international and Rest of UK acceptances had exceeded target, despite a fall in applications and a decline in A-level attainment. It was expected that targets for direct entry into level three would be met, despite the significant decrease in college enrolments in the previous academic year.Ìý

At postgraduate level, there had been an overall increase in applications compared to the previous year, with international and Scottish applications increasing in particular. Postgraduate international targets had not been met at this stage, but a number of postgraduate courses had a January intake and were expected to recruit largely from the international market.Ìý
Clarification was sought on the extent to which the downturn in undergraduate applications mirrored wider population demographics, and if it would be beneficial to review student fees accordingly. In response, it was advised that the correlation between the wider population and potential applicant pool was subject to careful consideration on a sector and institutional level, but that it was difficult to draw any firm conclusions from this analysis. The University continued to seek to diversify its portfolio to attract a good mix of Scottish, RUK and international students. Whilst the block grant for Scottish students was fixed, there was no similar cap affecting RUK and international recruitment. Fees were kept under review to ensure the University positioned itself competitively, taking into consideration market trends.

6.4 Key Performance Indicators

As advised by the Chair earlier in the meeting (minute 5 refers), the Head of Strategic Policy and Planning Development was developing proposals for an updated suite of Key Performance Indicators (KPIs). Early thoughts had been shared as ‘work in progress’ at recent meetings of the Finance and Estates Committee and the Audit and Risk Committee. Firmed up proposals would come to the 6 December Court meeting for discussion.Ìý

6.5 League tables

Several league tables had been published in September 2023 in which 91¿´Æ¬ had performed well. Full details were provided in paper Court (23) 28. Notably, 91¿´Æ¬ was one of the top five highest climbers in the Guardian University Guide 2024,Ìý moving up 26 places year on year, to 63rd place. In the Times and Sunday Times Good University Guide 2024, 91¿´Æ¬ had moved up four places year into 63rd place. Some strong performances were also noted for particular subjects.Ìý

6.6 Palm oil replacement

91¿´Æ¬ researchers, Catriona Liddle and Dr Julien Lonchamp of the Scottish Centre for Food Development and Innovation (SCFDI), had developed a replacement ingredient (PalmAlt) for palm-based fat in baked goods which had been reported widely in the media in the UK and internationally. A patent application had been submitted for the PalmAlt composition and process, and discussions were in progress with potential partners to implement at industry level. The Principal congratulated Catriona and Julien on their significant achievement, noting that the development of the new product aligned well with the University’s purpose to create a better society through education, research, and innovation.Ìý

6.7 RAAC

The Principal was pleased to report that Reinforced Autoclaved Aerated Concrete (RAAC) had not been used in the construction of the campus.

6.8 Start of Academic Session

The Principal concluded by reporting that the academic session had started well. Whilst the University had enjoyed a busy and successful summer, it was always a pleasure to welcome students to campus for the new academic year.

The Chair thanked the Principal for his detailed report. Members looked forward to further updates in December, including on the proposed Target Operating Model (minute 6.2 refers).

7.1 Financial performanceÌý

Court RECEIVED an update on financial performance for the twelve months to 31 July 2023, and the forecast outturn for the year ended 31 July 2023 (paper Court (23) 29).Ìý

Introducing the paper, the Director of Finance advised that she had adjusted the reporting format in response to recent feedback from Court members. Further adjustments to the format were planned over the coming academic year to align with the introduction of the new finance system and associated reporting capabilities.

The quarter four forecast outturn indicated a full-year break-even position, compared to a forecast quarter three deficit of £1,070k. The underlying position was shown before adjustments for pension provisions. Of the forecast improvement, circa £365k related to debt recovery of fees from specific cohorts of international students. As advised to members previously, a lessons learned review had been conducted on the debt position concerning the 2022/23 cohort of West African entrants to the University, resulting in the introduction of mitigating actions for entry in Session 2023-24.Ìý

Other income generation exceeded the forecast by circa £1m. Financially material favourable variances included Endowment Income, Residence Fees, Summer Lets, and income from Professional Services and Academic Schools. SFC Grants reflected in the draft position were slightly below forecast, whilst research income generated in the year remained in line with the forecast. The 2022-23 draft pay cost, as captured in the quarter three forecast, represented 59% of the University’s total income, and the monitoring of pay costs would be an important focus for the Finance Team in 2023-24.Ìý

91¿´Æ¬ remained a strong cash generating business, ending the financial year with forecast cash assets of £19m. The development of a cashflow model in 2023-24 would provide the foundation for a Capital Plan, the first iteration of which was expected to be complete by the end of quarter one in 2023-24.Ìý

The 2022-23 external audit would be conducted by Ernst and Young from 16 October 2023, having been deferred by two weeks to allow time for the required analytical review to be conducted on the draft position presented. Ernst and Young had articulated that it would approach the audit with a lower risk tolerance and increased audit testing on a number of grounds, including recent changes to the internal senior Finance team, the challenging HE sector financial landscape and associated impact on 91¿´Æ¬â€™s forecasted financial position (specifically relating to Going Concern).Ìý

Court members welcomed the positive report and improved position from quarter three, as well as the updates on adjustments to reporting format. The implications of the 2022-23 forecast year outturn for 2023-24 were covered more fully later in the agenda item (Minute 7.2 refers).

In response to a query, it was confirmed that the sequencing of committee meetings would provide for the timely consideration of financial reports to the Court following consideration by the Finance and Estates Committee, and the joint meeting of the Finance and Estates and Audit and Risk Committees.Ìý

7.2 Budget 2023-24

Court RECEIVED an update on actions taken and planned to achieve the Court approved budget for 2023-24 (paper Court (23) 30).

The Director of Finance advised that budget allocations had been communicated to budget holders on 21 August 2023, including the requirement to respond with proposals to meet institutional savings targets by 8 September 2023. High level, initial feedback suggested that non-pay savings targets would be more achievable than pay targets, particularly for small, fully staffed functions. Initial savings proposals would be reviewed with budget holders and agreed as in-year savings targets, against which monthly progress reviews would be undertaken.

Since the previous Court meeting, the Finance Team had been working on enhancements to financial management services as set out in the report (paper Court (23) 30). The first 91¿´Æ¬ Financial Reporting Charter had been published in September 2023, the main objective of this being to free up time to invest in the development and automation of financial reporting content. Work had begun on the development of a five-year Capital Investment Plan, which built upon the current Strategic Investment Plan process. Sector specific investment criteria had been identified for agreement by the Senior Leadership Team, providing cross-institutional benefit. In parallel, the development of a Cash Flow Model was due for completion by the end of Quarter 1, designed to provide proactive investment in income generating assets and more comprehensive financial oversight. A work plan for the activities being progressed was included in the paper circulated. Court members had been provided, under separate copy, with the pre-Court presentation on the Galileo finance system project plan.Ìý

The Chair thanked the Director of Finance for the comprehensive and informative report. Members commented variously on the scale of development and analytical work being undertaken, and the resulting resource implications on the Finance Team. The Principal confirmed that the scale and importance of project Galileo was well understood across the University and that academic and professional services teams were working closely with Finance colleagues to ensure a supportive and coherent approach aligned with the academic and wider context.Ìý

The Q1 financial forecast would come to the December meeting of the Court. Members emphasised the importance of the quarterly reports, and in particular the quarter one report, both for internal purposes and as a basis for the external audit assessment of ‘going concern’. The importance of accurate and ‘real time’ data was emphasised as being critical to the production of accurate quarterly reports, with members advised also that, while this area was subject to significant review and development, that was unlikely to influence the production of the Q1 report for 2023-24.ÌýÌý

Members were advised that the Finance and Estates Committee considered in depth the quarterly updates, and that the Court could be assured of the level of scrutiny undertaken of the data provided. The updates to the reporting mechanisms would augment current approaches, allowing for greater flexibility in forecasts to reflect changing circumstances. Noting this, members looked forward to future updates, including discussion at the extended Court meeting in December 2023.

Court RECEIVED a report on key performance indicators for the fourth quarter to 31 July 2023 (paper Court (23) 31). The key points to note were as set out in the paper and included the following:

• Overall student numbers for 2022-23 were above target. Home domiciled student numbers were slightly below target, but RUK and international domiciled numbers were above target, with the resultant positive impact in terms of the balance of tuition fees. Whilst there remained a degree of uncertainty around the collection of tuition fees from postgraduate international students who enrolled in semester two, related tuition fee income was currently forecast to be in line with target for the full year.
• The percentage of HN students admitted with advanced standing was significantly below target. Direct entry from college had been highlighted as difficult within the wider Scottish sector due to the college recruitment trends.
• The percentage of students from SIMD20 postcodes was slightly below baseline, reflecting the market across the sector.
• The percentage of Scottish domiciled undergraduate entrants from BAME backgrounds had exceeded the target of no less than 7%, standing at 7.2% of the 91¿´Æ¬ cohort, representing a 0.1% increase on the previous quarter.

Court members welcomed the report and looked forward to future discussion and development of the approach to performance reporting at the December meeting. In discussion, it was suggested that in developing the approach to performance reporting, it would be important to establish a mix of measures that reflected absolute and relative performance against targets and baseline measures, to identify institutional measures of success and those national measures against which the university was required to report (eg Outcome Agreement National Measures).Ìý The narrative setting out proposed changes to reporting should set out the baseline starting point, and the relationship between any revised KPIs and institutional strategic priorities represented by the University Strategy.

Court RECEIVED a report on progress with the Land Development project (paper Court (23) 32).Ìý

Introducing the paper, the Chief Operations Officer highlighted the timescale for the Hub tender approval process (November 2023) and site development start (December 2023 or January 2024). The invitation to tender issued in June 2023 had been the focus of project activity over the subsequent period, with the original tender period extended due to constraints and delays within the sub-contractor supply chain. Tenders received were being evaluated. While providing an extension was in the interests of competitive and fully compliant bids, it had introduced potential for a delay to the project timeline to July 2025. Members were assured that funding was not contingent on achieving the currently stated date, and completion by August 2025 would still be within the timescales published and reported to the City Deal.Ìý

In accordance with the project governance process, the tender recommendation report would be presented for endorsement to an extraordinary meeting of the Finance and Estates Committee (FEC) in November, prior to consideration by the Joint Venture at its scheduled Board meeting on 28 November 2023. Further consideration would be given to appropriate involvement of the Court in this project milestone.

Members were advised of the recent completion of the marketing video for the Hub, which was progressing in parallel with the website for the Hub development. Both were scheduled for launch in October. At the invitation of the Chair, Court member Steven Hendry confirmed that he was confident in the overall marketing strategy, which would become increasingly relevant once the construction phase was in progress.

Court RECEIVED the annual report on HR matters (paper Court (23) 33). The report covered matters of important progressed during academic Session 2022-23 under the following headings:

• National Pay Negotiations
• ÌýImplementation of Hybrid Working
• Family and Caring Related Leave Policies
• Staff Turnover
• Equality, Diversity and Inclusion (EDI) and Anti-Racism Culture Review
• Stress Risk Assessment
• Workforce Planning
• Reward and Recognition

The Principal highlighted the important work undertaken by Professor Paul Miller, EDI and Anti-Racism Adviser to the Principal. The report and action plan arising from Professor Miller’s facilitated EDI and Anti-racism Culture Review had been shared with the University’s Race Equality Steering Group, but would be disseminated more widely through a series of dissemination events during the remainder of 2023. The Principal extended his thanks to staff and students for their contribution to the review through survey completion and participation in facilitated workshops. An update on progress with the Action Plan would come to a future meeting of the Court.Ìý

In response to a specific question about staff Reward and Recognition, it was confirmed that arrangements for staff regrading was under review, and that an update would be issued once that exercise had concluded.Ìý

11.1 Annual Report on Institutional Review and Statement of Assurance

Court HOMOLOGATED Chair’s Action taken to approve the Annual Report to the Scottish Funding Council on Institutional Review Activity 2022-23 (paper Court (23) 34) and the University Court Statement of Assurance to the Scottish Funding Council (paper Court (23) 35).

Members welcomed the Annual Report as a comprehensive overview of the quality assurance and enhancement arrangements in place to meet the requirements of the Scottish Funding Council. It was noted that this would be the final report in the current format, since reporting arrangements were under review as part of the development of the Tertiary Quality Framework.Ìý

11.2 Outcome Agreement 2023-24

Court RECEIVED a briefing on the 2023-24 Outcome Agreement Guidance (paper Court (23) 36). Members were advised that the Guidance set out the Scottish Funding Council’s (SFC) expectations in terms of the contributions, impact and outcomes for key priority areas arising from allocated funding in Academic Year (AY) 2023-24, including projections on the achievement of National Measures. It also set out the requirements for a self-evaluation and for an extended range of case studies to demonstrate impact.Ìý

The Court RECEIVED the DRAFT Outcome Agreement 2023-24 (paper Court (23) 37) and provided feedback to inform the submission to the SFC on 31 October 2023. Thanks were extended to the University Secretary for her work on the draft, which members considered accurately and comprehensively reflected the achievements and future aspirations of the University, aligned to those matters covered within the Guidance.Ìý

Members commended the extensive work that was ongoing to support students with protected characteristics and students from other demographics, including carers and care experienced students. It was noted that further work would be undertaken before submission, including development of the skills narrative and inclusion of sector benchmarking. The measures for 2023-24 were also subject to further consideration. Prior to submission, Senate members and other key stakeholders would be invited to provide feedback.Ìý

Having considered the report, members provided the Chair with delegated authority to sign off a version for submission to the SFC by the deadline of 31 October 2023.

Members noted the proximity of the 2023-24 submission to the 2022-23 iteration, which had been published in July 2023, In recognition of this timeline, the SFC Guidance stated that ‘given the close proximity of the 2022-23 and 2023-24 OA processes, we are focusing the scope and scale of the OAs in a proportionate way to secure assurance on areas which are of particular focus for 2023-24’. As noted under Minute 11.1, the SFC was reviewing its overall reporting arrangements, and this would be the final report in the current format. With effect from 2024-25, it was expected that elements of Outcome Agreement reporting would be combined with the Annual Report on Institutional Review, in the form of the Self Evaluation Action Plan (SEAP). The SEAP was being piloted with a small number of colleges and universities, and confirmed arrangements were expected to be communicated to the sector early in 2024 with a submission deadline for the first SEAP of 30 November 2024.Ìý

Court NOTED a report on the following areas of compliance activity from April 2023-September 2023 (paper Court (23) 38):

1. Complaints.
2. Requests made under the Data Protection Act 2018.
3. Requests made under the Environmental Information (Scotland) Regulations 2004.
4. Requests made under the Freedom of Information (Scotland) Act 2002.
5. Activity related to the Counter-Terrorism & Security Act 2015.

The University Secretary highlighted ongoing activity at the University in support of the the delivery of the Prevent Duty Guidance for Scotland. Most recently this had included completion of the Scottish Government’s Prevent Annual Assurance Return, further details of which were given in the Appendix to the paper.Ìý

Members were advised that the return took the form of an online survey, through which institutions were invited to assess their compliance with the Prevent Duty Guidance using a RAG rating system, within which there was scope to identify good practice as well as areas identified for improvement. The University Secretary advised that staff training had been assessed as amber and represented an area for development. Relevant frontline staff, including those in Student Services and Campus security and accommodation had been identified and had received Prevent training tailored to their roles. The University was now exploring embedding the UK Government’s online training into its e-learning platform for all staff.

Thanks were extended to the Policy Adviser (Governance and Compliance) for his work on the paper.

13.1 Meeting held on 14 September 2023

Court RECEIVED the minutes of the meeting of the Finance and Estates Committee held on 14 September 2023 (paper FEC (23) MINS 05). Matters for members’ attention had been covered elsewhere on the agenda).

13.2 Catering provision retender

Court HOMOLOGATED Chair’s Action taken to approve the recommendation from the Finance and Estates Committee in the matter of the Catering Provision retender (paper FEC (23) Mins 05 refers).

Court RECEIVED the minutes of the meeting of the Audit and Risk Committee held on 19 September 2023 (paper AUDIT (23) MINS 03).Ìý

It was noted that a two-week extension to the start date for the external audit programme had been agreed, which would commence on Monday 16 October 2023 (minute 5 refers).Ìý

The following internal audits were planned for 2023-24 (minute 6.6 refers):

• UKVI Compliance
• Student Placement Provision
• Workforce/Succession Planning
• Budgetary Control
• IT Network Arrangements / Cyber Security

The Budgetary Control Audit would provide an important opportunity to audit finance systems, with outcomes likely to inform how best to implement the University’s new finance system.

COURT RECEIVED the unconfirmed minutes of the meeting of the Senate held on 28 June 2023 (paper SEN (23) MINS 03). There were no particular matters brought to members’ attention.

16.1 Meeting held on 29 June 2023

COURT RECEIVED the unconfirmed minutes of the meeting of the Health and Safety Committee held on 29 June 2023 (paper HSC (23) MINS 02). There was one matter brought to members’ attention, as set out in Minute 16.2 below.

16.2 Health and Safety Policy

Court APPROVED an update to the Health and Safety Policy (paper Court (23) 39) as agreed by the Health and Safety Committee at the meeting on 29 June 2023.Ìý

COURT RECEIVED the unconfirmed minutes of the meeting of the Equality and Diversity Committee held on 8 June 2023 (paper EDC (23) MINS 02). There were no particular matters brought to members’ attention.

Court RECEIVED the minutes of the meeting of the Senior Management Remuneration Committee held on 21 June 2023 (paper SMRC (23) MINS 01), discussion of which had been reported in the minutes of the Court meeting held on 21 June 2023.Ìý

Members noted one matter arising from the minutes, namely that the SMRC had agreed to further review of the Senior Management Remuneration Review policy, with a view to addressing the structure and length of the document, but also to revisit and the policy purpose and underlying principles for senior leadership reward and recognition. The SMRC would meet prior to the next meeting of the Court and report on its discussion.

The University Court will meet on the following dates in Academic Session 2023-24:

Wednesday 6 December 2023 at 2.00 pm (extended meeting to accommodate strategic discussion).
Wednesday, 21 February 2024 at 3.00 pm
Wednesday, 17 April 2024: Strategy Day (full day)
Wednesday, 19 June 2024 at 3.00 pm

Members are invited to note that there will be an AGM of the company at 2.45 pm on 21 February, and that it is proposed that the annual Stakeholder Engagement event take place on 17 April 2024 (tbc).Ìý

Court RECEIVED the following items for information:

• Court Member SharePoint site: A briefing on proposed revised arrangements for members’ access to meeting and archive Court papers. PDF documents would continue to be provided in parallel to accommodate members’ preferences. Questions about the SharePoint site could be directed to the Policy Adviser (Governance and Compliance).
• Project Galileo: A copy of a presentation on the project plan.