Court news

The agenda for the Court's end-of-session meeting in June was, as usual, very full and financial matters predominated.

Restructuring

It was reported that the Privy Council had approved the proposed amendments to the University Charter and Statutes, enabling the restructuring of the University into four Colleges to proceed. The Court duly ratified complementary amendments to the Ordinances (provisionally approved in April), thus completing the legislative changes required.

The Principal commented on the appointing processes for Heads of Colleges and Deans of Schools, both of which were under way.

Industrial Action

The Court was apprised of the details of the national agreement which had been reached between UCEA and the recognised trade unions. Pending a ballot of its members, UCU (the successor union to AUT) had agreed to suspend immediately all industrial action. It was confirmed that all final year students in the University could now be fully assessed in sufficient time to enable them to graduate normally.

Planning Framework

The Court received a document setting out a planning framework for the period 2006-12, identifying key 'thinking themes' and action strands. Having discussed various issues arising from the document, the Court approved the planning framework, while recognising that it was a work in progress and would be further developed as the new College structure unfolded.

Financial Strategy

The Court received an updated financial strategy for the five-year period to July 2011, which was the subject of lengthy discussion. A key objective was the generation of cash to support the capital programme and repay borrowings, but to attain the projected levels of surplus through the period would require significant increases in income and cost reductions from 2007-08. It was stressed that the challenges facing the University were replicated across Scotland: the higher education sector was experiencing financial difficulties as a result not only of the national agreement on pay, but because of other cost pressures and wider structural issues as well.

While there were significant risks around the capital programme, projects within it amounting to c £58m had not yet been finally approved and it was accepted that this provided sufficient flexibility to control spending. The Court reaffirmed nevertheless that investment in the estate was still a top priority to ensure that the University remained competitive in student and staff recruitment.

The Court approved the budgets proposed for colleges, schools and support services for 2006-07. In approving the capital programme, the Court allowed that the period of maximum borrowing (i.e. when the agreed borrowing limit of £15m could be temporarily raised to £20m) should be increased from two years to three years. Finally, the Court invited the Finance & Policy Committee to meet during the summer to test in detail the key parameters for financial planning and the assumptions underlying the financial strategy; while the Senior Management Team was asked to produce plans for the Court Retreat in September addressing the medium and longer term questions of financial sustainability.

Pensions

The Court approved revised levels of contribution by both employees and employer to the University of Dundee Superannuation Scheme (for clerical, technical and manual staff). Increases were recommended from 6% to 7.75% for employees and from 13.5% to 20.55% for the University, following a triennial actuarial valuation of the Scheme and consideration of its implications by the Trustees and the Finance & Policy Committee. It was confirmed that the Trustees included current employees, who had taken soundings from members regarding a level of increase which would be considered acceptable. The additional annual cost to the University would be up to £900k and the Director of Finance was authorised to seek the most cash-efficient means of funding the additional contributions, including borrowing.

The Court also approved the recommendation of the Finance & Policy Committee, supported by the Human Resources Committee, that - in the context of recent legislative changes - employer contributions to USS (the main pension scheme for academic and related staff) should not be paid beyond the current maximum of 40 years of service. It was noted that the Trustees of UoDSS had come to a similar view on the issue of maximum contributions.

Nursing Education in Fife

The Court received a summary report on the position reached regarding the future of the University's Kirkcaldy campus, which had been the subject of a full discussion by the Court in February. Because of regulatory and contractual constraints, the University was not now able to achieve the original aim of centralising all theoretical teaching in Dundee, as previously discussed with NHS Fife.

It was therefore proposed that the theoretical components of the first two years of the nursing programme should continue to be offered from both campuses, while from September 2009 the theoretical component of the third year would be delivered in Dundee only. At the same time, discussions would continue with Adam Smith College with the aim - subject to agreement on financial and management arrangements and further consultation with stakeholders - of creating an enhanced learning environment in Fife for nursing students. The Court accepted the proposals as an interim solution to the issues surrounding nursing education in Fife.

Membership of Court

Alison Newton, a partner in the law firm McGrigors, was appointed to a second term of office as a co-opted lay member of Court from 1 August 2006.

The Court bade farewell at this meeting to the outgoing Student President, Lianne Bibby, and also to Bill Sutherland, who had completed the maximum of eight years in office as a co-opted member. The Court acknowledged that he had made an enormous contribution to the governance of the University, serving most recently as Convener of the Audit Committee and, in that capacity, contributing also to the work of the Finance & Policy Committee. He had participated in numerous working groups and review committees and had given particular service to the Students' Association - with whom he would be continuing as a Board member.

Bill is succeeded on the Court from 1 August 2006 by Richard Burns, who likewise has a strong financial background.