91¿´Æ¬

The Chair welcomed members to the meeting of the University Court. Particular welcome was extended to new lay members Janet Archer, Carol Sinclair and Guy Smith, and to Jenny Ansett, newly appointed Trade Union member representing the interests of professional services staff. The Chair also welcomed Dr Maria Giatsi-Clausen, who had been reappointed by the Joint Trade Unions to represent the interests of academic staff.

Members were advised that an election to fill the vacancy in the Senate appointee on the Court was in progress, with the ballot of Senate members due to conclude on 7 October 2022.

The Chair was delighted to confirm Professor John Harper’s appointment as Vice-Chair following an election process conducted amongst Court members.

An apology for absence was noted for Melanie Moreland.

Prior to the meeting, a number of members had engaged in an informal session on strategic developments in the School of Health Sciences. The Chair extended thanks to Health Sciences colleagues for an informative and engaging session. The presentation slides would be circulated separately to Court members.

The Chair reported on a number of areas of internal engagement with members of the University community. The Chair continued to meet regularly with the Principal, and had focussed at the most recent meeting on matters relating to performance enhancement review (PER). It was a particular pleasure to be able to officiate in July at the first in-person graduation ceremonies for three years, and have the opportunity to celebrate students’ achievement with families and supporters, and with academic and professional services staff.

In terms of external engagement, the Chair has been pleased to host on campus recently the first in person-meeting post-pandemic of the Committee of Scottish Chairs (CSC). This had presented an excellent opportunity for networking, including with the Chair of the Scottish Funding Council, who had delivered an update on matters, including the financial challenges facing the sector as a whole. At the meeting, the Principal had also delivered a presentation on sector trends and challenges in his capacity as Vice-Convener of University Scotland’s Main Committee. The Chair had welcomed in particular the opportunity to meet the recently appointed Chair of Court of Scotland’s Rural College (SRUC), noting synergies between SRUC and 91¿´Æ¬, most particularly in relation to food and drink and entrepreneurship.

The Principal supported the Chair’s view that the CSC meeting had been a positive and productive event, and thanked the Chair for promoting 91¿´Æ¬ as the host venue for the meeting.

The Principal provided a report on recent developments (COURT (22) 24), highlighting particular matters as noted below.

6.1 Her Majesty Queen Elizabeth

The Principal placed on record the collective sadness of the University community at the death of Her Majesty Queen Elizabeth. Her Majesty had been an ardent supporter of universities and of education as a force for good. As an institution, 91¿´Æ¬ remembered with particular pride Her Majesty’s visit in July 2008 to open formally the new campus in Musselburgh.

6.2 External context

The Principal reflected on the particularly volatile economic and political factors affecting the higher education sector. Long running areas of collective concern included the climate change emergency, sustainability, inequality, as well as the legacy of the pandemic. Most recently, the contribution of the steep rise in inflation to a cost of living crisis had emerged as a pressing concern (discussed separately under agenda item 6.5).

Whilst the external context presented considerable challenges, the Principal suggested that universities were well-placed to deliver positive solutions through teaching, research and innovation. While it was encouraging that this potential had been recognised, for example in the Scottish Government’s National Strategy for Economic Transformation, it was disappointing that public sector funding remained severely constrained, resulting in universities being somewhat restricted in their capacity to address some of the wider issues. An important implication of the funding position was that 91¿´Æ¬ would need to continue to diversify income streams, whilst continuing to maintain and enhance the quality of education and research.

6.3 Planning for academic year 2022-23

The Principal expressed his continued delight at the positive impact of the wider return of students and staff to campus. Whilst coronavirus restrictions had been removed largely, the University remained vigilant and continued to promote positive behaviours in line with the Scottish Government’s COVID Sense guidance. At a sector level, the Scottish Government’s COVID Recovery Group (CRG) had been stood down, but with the option to resurrect in the future, should that be required.

As reported to Court in June 2022, learning and teaching delivery and student support had reverted largely to pre-pandemic delivery, while retaining and capitalising on some of the recent technological developments, where those developments demonstrably enhanced the student experience.

The President (Academic Life), and President (Student Activities) added that Freshers’ Week had gone well, with over 3000 attendees and a good mix of events, including the annual ‘Give It a Go’ Fair through which students could participate in taster sessions for sports and societies. Class Rep training had also started, following a successful Class Rep recruitment campaign. The Principal thanked Students’ Union colleagues for their extensive work and leadership during this important transition period.

6.4 Online Programme Development

As reported previously to Court, the Online Programme Development project commenced formally on 30 May 2022. Seven programmes were due to launch in March 2023, subject to successful validation. The first of three validation events had taken place on 3 October 2022 for the MA Education, MA Education Leadership, and MA Special and Inclusive Education.

6.5 Cost of living crisis

The Principal reinforced the Senior Leadership Team’s (SLT) commitment to mitigating the impact of the cost of living crisis on its student community. Following discussion at the recent SLT away day, the University Secretary had established an informal working group, co-convened by the President, Academic Life, to engender a whole institution approach. The University Secretary advised that efforts to date had focussed on ways in which student income could be supplemented, and student expenditure reduced. This took a number of forms, including clear signposting to existing financial and welfare support mechanisms (eg Hardship, Discretionary and Childcare Funds), scholarships and bursaries; student employment and internship opportunities; and active steps to address food and fuel poverty through campus-based events with free or heavily discounted food and access to warm spaces.

The President, Academic Life, commended the partnership approach between the University and the Students’ Union, commenting that any initiatives needed to respond to current student needs, to be sustainable, and to build on the success of established initiatives, such as the SU Food Pantry. A clothes swap event would be one of the first of a series of social events to be piloted in semester one under the auspices of the working group.

Court members welcomed these very positive initiatives, noting that the recently refreshed Graduate Attributes and associated focus on transferable skills provided a helpful framework to support student employability. The University’s duty of care towards staff was acknowledged, and members were pleased to learn that current initiatives were likely to be beneficial to staff as well as students. Members would receive an update on the cost of living efforts at the next meeting of the Court.

6.6 Student numbers

Student numbers in session 2021-22 had performed well against target, as set out in the financial update and the Q4 KPI reports provided to members. At this early stage of student matriculation for 2022-23, overall student numbers appeared to be broadly in line with expectations at this time of year. Court members would receive a full update on student recruitment and overall student numbers for this academic session at the November meeting.

6.7 Financial position

As set out in the draft financial outturn for 2021-22, the final position (subject to final audited adjustments) was reported as an underlying surplus of £3.2 million. This would have a positive impact on cash balances, and provide welcome extra protection during a period of harsh economic reality. Against this background, the Principal had convened a Senior Leadership Team away day in September 2022. SLT had concluded that the growth and wider development plans presented previously to the Court remained broadly appropriate. There would be further discussion at the Leaders’ Forum in November 2022, following which an update would come to the Court in February 2023.

6.8 Pay award 2022-23

As reported previously, UCEA and the five nationally recognised Trades Unions had been engaged in negotiations on the pay award for 2022-23 throughout the year. Dispute resolution meetings held in July 2022 had ended without agreement, and following UCEA advice, 91¿´Æ¬ had implemented the pay award from 1 August 2022. Ballots for industrial action had since been notified by the University’s recognised Trade Unions, as set out further in paper Court (22) 24.

The Principal reiterated the Senior Leadership Team’s commitment to mitigating the effects of the cost of living increase on staff, whilst ensuring continued financial sustainability. Whilst constrained by UK-wide pay bargaining arrangements from offering any increase to the national pay award, the Senior Leadership Team was currently considering whether any other mechanism could be employed to support staff members, particularly those towards the lower end of the salary scale.

6.9 Emergency Scottish Budget

The Scottish Government had announced the planned publication of an Emergency Scottish Budget in the week commencing 24 October 2022. The sector’s Scottish Budget case (Time to Choose) was publicly available on the Universities Scotland website. In that publication, Universities Scotland set out the contribution of Scotland’s universities to the Scottish economy, making the case for increased investment. Under this item, the Principal highlighted specifically the impact of differential research funding between the English and Scottish sectors. As there was greater investment in the English sector, this placed Scottish universities at a disadvantage.

6.10 Reform

Part of the Scottish Government’s response to the perceived challenges facing the Scottish economy, and society more broadly, had been to launch a series of reform initiatives, including the SFC Review of Coherent Provision and Sustainability. Most recently, the Government had been exploring the development of a new ‘Purpose and Principles’ framework for the sector. It had also very recently launched a skills review. Updates would come to Court as these initiatives progressed.

6.11 National Student Survey and league table positioning

The National Student Survey (NSS) 2022 results had been published in July 2022. 91¿´Æ¬â€™s overall student satisfaction rate was 4.1% above benchmark, and above the UK average. There were particularly strong results in the 'Learning Community' and 'Student Voice' categories of the survey, and 91¿´Æ¬ ranked second in Scotland for Students' Union representation of students' academic interests.

Results were being considered through established mechanisms with a view to identifying and implementing enhancements. League table performance was as detailed in paper Court (24) 22. Notably, 91¿´Æ¬ had moved up the QS World University Rankings (2023) for the third year in a row, and was now placed in the top 57% of universities in the world. It was suggested that it might be helpful for the Court to receive more detailed league table analyses to inform members’ understanding, and the Principal undertook to explore this further with the Head of Strategic Planning and Policy.

6.12 Ministerial visits

The Principal had been pleased to host two recent ministerial visits. Jamie Hepburn, the Scottish Government Minister for Higher Education and Further Education, Youth Employment and Training had visited 91¿´Æ¬ in August 2022. During the visit, colleagues had updated Mr Hepburn on the University’s work to embed outdoor learning within the campus, teaching and research, and on the diverse and growing range of pathways provided by 91¿´Æ¬ to support college students in making the transition to degree level study.

Kevin Stewart, Scottish Government Minister for Mental Wellbeing and Social Care had also visited the campus to discuss a range of health related issues, and specifically, how 91¿´Æ¬ could support the proposed new National Care Service. Discussions were expected to continue with the Minister and his officials, with a particular emphasis on 91¿´Æ¬â€™s role as a leading provider of nursing and allied health care education.

Court RECEIVED an update on the draft financial outturn for the year ended 31 July 2022 (Court (22) 25).

Introducing the paper, the Director of Finance and Corporate Strategic Development advised that the final version of the accounts was expected to be complete by the end of the week. The draft underlying surplus of £3.2million represented a further strengthening of the University’s financial position from the quarter three forecast. Of the £2.7m improvement, £1.6m related to year-end accounting adjustments. Of the remaining £1.1m movement, £500k related to increased tuition fees income, including amounts receivable from overseas partners, which were normally confirmed late in the financial year. A further £200k related to net underspends in staff cost budgets. The remaining circa £400k improvement related to increases in other income lines (including an additional £100k SFC grant announced in quarter four), along with fluctuations in expenditure. There had been some increases in costs, but these were largely associated with increased activity and matched by increased income.

The underlying position was shown before adjustments for pension provisions and adjustment for revaluation of buildings, details of which had been received in the last few days following issue of the Court papers. The bottom line position showed a draft surplus of £3.8 million for the year, and a year-end cash balance of £15.2m, after paying down £5m of the Barclays loan. This represented a solid financial position for the University against the backdrop of diminished public sector funding and the wider economic challenges affecting higher education.

Court members welcomed the positive report and improved surplus from the quarter three report. Whilst members understood that not all fluctuations could be predicted in advance, there was discussion around the extent to which forecasts and associated reporting to the Court could be developed further to identify more clearly those areas where there was a possibility of movement up or down. The Senior Leadership Team undertook to consider this further, in parallel with ongoing discussions around investment in new finance software.

8.1 Reports summarised

Court RECEIVED update reports on the following matters:

1. Land Development Progress Report (Court (22) 26)
2. EIP Hub (Construction) (Court (22) 27)
3. EIP Hub (Operation) (Court (22) 28)

Introducing the above papers, the Director of Campus Development and Operations reminded members that various background briefings and other supporting documents had been made available to members through 91¿´Æ¬ SharePoint. Given the complexity of the project, supplementary briefings could be provided if required. Matters highlighted under each of the papers were as detailed below.

Risks associated with the Land Development, mitigating actions and their impact were captured in a Corporate Risk Register, provided as Appendix A to paper Court (22) 26. The risks associated with the EIP Hub (Construction) (risk 5) were considered further within Paper COURT (22) 27, and addressed separately in a subset construction project risk register. Risks relating to the EIP Hub operation (risks 3 & 4) were considered further within Paper COURT (22) 28.

8.2 Land Development Progress report

Members were reminded that the land development around the University Campus (referenced as MH1 in the local authority’s local development plan) was expected to take circa 30 years to complete. The location, scale, profile and proposed rate of development meant that the project was recognised as a development of strategic importance. Key areas of update were reported as detailed below:

• Construction of phase 1 of the housing development (500 homes) commenced in 2020, with the overall housing development expected to conclude by 2038.
• The project to upgrade the existing A1 Road junction adjacent to the University was ongoing, with an expected completion date of spring 2023.
• The current focus of activity for the Commercial Zone was to update the masterplan for the Edinburgh Innovation Park to ensure continued alignment with the proposals for the Commercial Zone. The University continued to promote proposals for a new mixed-use commercial/community zone on its existing car park. A review of the Commercial Zone was to take place, which would give consideration to the preferred timing for the development and in particular the programme and costs required to progress a planning application. The outcome of this review would come to Court in the first quarter of the next calendar year.
• The next iteration of the Local Development Plan (LDP) was in the early stages of preparation and scheduled for publication in 2025. Members were reminded that the LDP set out the strategic and legislative objectives for the use and development of the land on and around the University campus. As such, it continued to be a key consideration for the University.

8.3 EIP Hub (Construction)

Activity associated with the physical construction of the Hub development commenced in September of 2021. The consultant design team (appointed in May 2022) had progressed the project to Stage 2 (Concept Design Stage) and had issued a draft report and associated cost plan report. At this stage, the cost plan update was not yet in balance with the approved budget. As such, Stage 2 approval was on hold, pending the outcome from a value engineering exercise being undertaken currently. This was intended to align design, specification, brief and budget, without compromising the scope and quality of the facility that was approved in the Full Business Case and associated funding approval. The stage 2 design concept report and updated cost plan would require to be considered by the Court, prior to consideration by the Joint Venture Board on 28 October 2022.

8.4 EIP Hub (Operation)

Planning for the operational stage of the Hub commenced in February 2022 with the drafting of the Operational Business Plan (OBP) and Marketing Strategy (MS), both of which were subject to regular review. The OBP had as its focus the concept, functionality, and operations of the Hub as a commercial facility. The MS addressed the core development and operations philosophy of the Hub, placing the new facility apart from other commercial offerings in the Edinburgh region.

In terms of University activity, it was noted that, while the Hub was not directly reliant on the University, the development provided a range of opportunities for the University. These were presented in diagrammatic format in Appendices to paper Court (22) 28 and flowed from the external research into successful innovation developments around the UK undertaken by the University An Innovation Steering Group was being established, chaired by the Principal, to progress discussions within the University and support the advancement of these opportunities. An Academic Innovation Lead would also be appointed to support these important developments.

8.5 Discussion arising from 8.3 and 8.4 above

The Chair thanked the Director of Campus Development and Operations for the comprehensive update.

Court members discussed the University’s response to the revised and increased costs for the Hub construction. Based on the information provided in the papers and accompanying presentation, members sought and received reassurance that the value engineering exercise would result in realignment. On that basis, Court delegated authority to the FEC to consider further and, if appropriate, approve the revised Stage 2 proposal, prior to the JV meeting on 28 October 2022. In the unlikely event that the value engineering did not result in a satisfactory proposal, this matter would need to come back to the Court.

Members also discussed in detail the anticipated demand and occupancy for the Hub, and the ongoing work to secure the projections within the FBC and OBP. It was noted that the Hub design brief incorporated flexible accommodation to meet changing demand, and that the Gateway Policy for the Hub had been developed since the FBC. Court appointed members on the JVC suggested that, based on the risk register, key mitigating actions had been identified and were in place.

It was agreed that further consideration would be given to demand and mitigating occupancy risk at the next Court meeting.

It was confirmed that the Innovation Steering Group membership would comprise University staff and students only. Stakeholders external to the University would have the opportunity to contribute through a separate group, which could include Court representation. Full details of membership and remit of both groups would come to a future Court meeting. The work of the Steering Group and broader discussions around the operation of the Hub would build on some of the identified priorities for the Hub, including in relation to food science and innovation. Activities would be informed by research already undertaken, best practice examples from other similar initiatives, engagement with other HEIs, community and other stakeholder contributions.

The Principal thanked members for their contributions and constructive challenge in support of the development. Members looked forward to future updates and opportunities to shape the project, expressing their enthusiasm, optimism and commitment.

Court APPROVED a proposed Action Plan to address recommendations arising from the Externally Facilitated Court Effectiveness Review (Court (22) 29). Actions would be progressed in the period to June 2023. Progress with actions would be included as a Standing Item on the agenda for each meeting of the University Court in the period to that date.

It was agreed that the Court would benefit from a detailed paper and supporting visual explanation of the hierarchy and alignment of accountabilities of the FEC/ARC and the JVC relating to the Land Development Project and to the Edinburgh Innovation Hub, and the relationship with the Court’s primary responsibilities under its governing instruments. This would provide Court members with the necessary assurance that the level of agreed delegated authority assigned to the JVC and to FEC/ARC offered adequate protection of the responsibilities and accountabilities to be discharged by the University Court. This would be added to the Action Plan and if possible, brought to the next meeting of the Court on 30 November.

Court RECEIVED the Fourth Quarter Key Performance Indicators (KPI) report (Court (22) 30). It was confirmed that no matters of concern had been identified that required to be reported to the Court. The majority of KPIs remained above or on target, with no significant changes from the quarter three report. Some figures remained to be finalised, however. An update would be provided to a future meeting.

Following discussion at the Finance and Estates Committee, the Senior Leadership Team was exploring a number of possible enhancements to the current suite of KPIs presented to the Court to ensure the most appropriate set of measures. Matters under consideration as part of the review included the relationship between the internal measures used to measure KPIs and the targets, some of which were expressed in terms of the relative position of the University compared to other universities. Consideration was being given also to increasing the level of engagement with the KPIs across the wider University community, including through the operational planning process and digitalisation, for example via dashboard technology.

Court members provide some initial feedback to inform the ongoing discussions around the KPI format, suggesting in particular that further contextual detail might be useful and that a small-scale pilot of any revised approach would allow for further adjustment. There was particular discussion around the measurement of social impact, which could be addressed through a combination of qualitative evidence such as REF impact studies and quantitative measures, such as carbon emissions. As part of the ongoing review, consideration was being given to the balance of quantitative and qualitative measures. Court would have the opportunity to reflect more fully on the approach to KPIs at the Strategy Day in February 2023.

Court RECEIVED the annual report on Human Resource matters from the Director of Finance and Corporate Strategic Development, and the Head of Human Resources (Court (22) 31).

The report covered a range of matters, including the national pay award and industrial action, staff recruitment and retention, equality and diversity, and the University’s response to COVID, noting the recent launch of the 91¿´Æ¬ statement on hybrid working. Following on from the Stress Survey conducted in April 2021, work continued on the Stress Risk Assessment Action Plan. A further Stress Survey was planned for April 2023, any key findings from which would be captured in the 2023 Annual Report.

12.1 Scottish Funding Council: Annual Report on Institutional Review and Statement of Assurance

Court HOMOLOGATED Convener’s Action to APPROVE the Annual Report to the Scottish Funding Council on Institutional Review Activity 2021-22 (Court (22) 32).

Court HOMOLOGATED Convener’s Action to APPROVE the University Court Statement of Assurance to the Scottish Funding Council (Court (22) 33).

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.

12.2 Quality Enhancement and Standards Review 2022-24

Court RECEIVED a briefing on the forthcoming Quality Enhancement and Standards Review (QESR) of the University being conducted in November 2022 (Court (22) 34).

91¿´Æ¬ would be the first Scottish HEI to participate in this new methodology. Documentation had been submitted by the deadline of 29 September 2022, and the virtual review visit, managed by QAA Scotland, was scheduled for 24 November 2022. The submission demonstrated the extensive work that had been undertaken, and was ongoing, to assure and enhance the quality of the student experience at 91¿´Æ¬. The QESR report would be provided to the University in draft format no later than 15 December 2022. Once confirmed, the report would be shared widely within the University. The University’s response, which would take the form of an action plan, would be progressed through the Student Experience Committee and the Senate.

12.3 SFC Guidance to colleges and universities on quality AY 2022-23 and AY 2023-24

Court RECEIVED a copy of the guidance issued by the Scottish Funding Council on arrangements for quality in Higher Education 2022-24 (Court (22) 35). Issued on 6 September 2022, the guidance included important background information in support of Court Paper (22) 34 on the Quality Enhancement and Standards Review methodology.

Court NOTED a report on the following areas of compliance activity from 1 April to 30 June 2022 (quarter two) and 1 July 2022 to 28 September 2022 (quarter three) (Court (22) 36):

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; and
5. Activity related to the Counter-Terrorism & Security Act 2015

Court RECEIVED the confirmed minutes of the meeting of the Finance and Estates Committee held on 14 September 2022 (FEC (22) MINS 04). The following matters were brought to members’ attention:

Residences fire safety works (minute 6.1 refers)

Following completion of the pilot stage of the project, the anticipated cost of the overall project had increased significantly. In light of this, FEC had agreed a revised timeline and project scope. It was confirmed that the works were not life critical and that the University remained compliant with fire safety legislation.

Energy procurement (minute 6.2 refers):

FEC had received a report on the impact of forecast energy market price increases on budgets over the next three years and discussed potential mitigating actions and strategies. A further report would come to the November meeting of the FEC.

Court RECEIVED the unconfirmed minutes of the meeting of the Audit and Risk Committee held on 12 September 2022 (AUDIT (22) MINS 03). The following matters were brought to members’ attention.

Internal audit - Network Security report (minute 5 refers):

Azets had raised four recommendations for improvements to existing controls. The level of resource across the team was noted as a barrier to such improvement, and this was being addressed. The Audit and Risk Committee would receive updates on progress at each meeting, until the audit recommendations had been implemented in full.

Internal audit provision (minute 9 refers):

Court APPROVED the recommendation that Henderson Loggie be appointed to provide internal audit services for a period of three years commencing from 1 October 2022, with an option for a further extension, subject to formal approval by the University Court. Henderson Loggie had been identified as the preferred provider following a robust procurement process.

COURT RECEIVED the unconfirmed minutes of the meeting of the Senate held on 29 June 2022 (SEN (22) MINS 03). There were no particular matters brought to members’ attention. The Principal reiterated the standing invitation to Court members to attend the Senate as observers.

In response to a specific question, the Deputy Principal reported that discussions concerning the professional registration rights of 91¿´Æ¬ Nursing and Midwifery students at Metropolitan College were ongoing with the relevant Greek and UK authorities. An update was expected shortly.

COURT RECEIVED the unconfirmed minutes of the meeting of the Health and Safety Committee held on 28 June 2022 (H&S (22) MINS 02). There were no particular matters brought to members’ attention.

Court RECEIVED the minutes of the meeting of the Nominations Committee held on 15 September 2022 (NOM (22) MINS 03). The following matter was brought to members’ attention:

Membership of the University Court and its committees (minute 5 refers):

Following the most recent recruitment round for the appointment to the lay membership of the Court, three applicants would be invited to interview. Court members were advised verbally of the names of the applicants to allow them to declare any conflict of interest.

The University Court would meet on the following dates in Academic Session 2022-23:

Wednesday, 30 November 2022 at 3.00 pm in the Boardroom
*Wednesday, 22 February 2023 at 2.00 pm in the Boardroom
Wednesday, 26 April 2023 at 3.00 pm in the Boardroom
Wednesday, 21 June 2023 at 3.00 pm in the Boardroom