Court report

By Peter Evans

Financial matters and the capital programme once again predominated at the Court's meeting on 21 February.

Principal's Report

The report drew attention, inter alia, to:

• issues arising from the Deputy First Minister's annual letter of guidance to SHEFC

• the appointment of Sir Terry Farrell, an internationally respected architect, to oversee a ‘masterplanning’ exercise in relation to the capital programme, building on the foundation of the Page & Park campus development plan adopted by the Court in 2001

• the very positive report from the QAA on the recent Enhancement-Led Institutional Review

• an institutional visit by SHEFC on 15 February, which was a fact-finding exercise rather than an inspection

• the latest figures from UCAS, which showed applications for entry to the University up by 17% over the same period last year (with the Scottish average at 5-6%) - although there was no evidence of a surge of applications from England in advance of the introduction of the new fees regime, as had been reported in the media.

Financial Strategy
The Court was briefed on adjustments being made by the Finance & Policy Committee to the University’s financial strategy for the five-year period 2004-05 - 2008-09, in the light of changes in assumptions and capital plans which had emerged since June 2004. Emphasis was laid on the volatility of some assumptions, i.e. on the SHEFC institutional grant, the costs of implementing a new pay and grading structure, and the status of the catering and conference business. Such volatility posed risks for the capital programme and the Court approved a modification of the previously agreed limits on borrowing, allowing for its rise above £15m for a maximum duration of two years and to a level not exceeding the £20m agreed loan facility. It was noted that the Committee was also reviewing the capability of existing systems for efficient monitoring of capital expenditure, as management of cash flow would be crucially important in the years ahead.

The Court agreed that, as there was no certainty of the additional funding arising from the Spending Review being continued beyond 2007, it was prudent as well as opportune to focus on infrastructure development rather than additional recurrent commitments. Greater efforts should be made to convince all staff of the University's spending priorities and of the importance of achieving the Court’s surplus targets.

Capital Developments

The Court gave full authority to proceed for several capital projects:

• A proposed Institute for Medical Science & Technology, to be based in a building on the Medipark in Dundee, as a focus for interdisciplinary research involving relevant departments in the Universities of Dundee and St Andrews. The Court agreed to underwrite the capital cost of the project at £2.5m, although most of this is expected to come from external sources; the University's guaranteed contribution is £200k.

• A £7m plan for the improvement of sporting facilities in the University, the costs of which will be repaid through user charges and other income.

• A £4.5m investment in improvements to the University’s data network, cabling and telecommunications infrastructure.

• Construction of student residences on the site of the Heathfield car parks, as planned under the residences strategy, with underground facilities comprising 200 car parking spaces and 1200 sqm of high quality, mixed-use space for retail, teaching, storage or other purposes.

The Court also received a presentation reporting on progress with the development of proposals for the new teaching block, to be built on the site of Heathfield Mill, and for the extension to the Main Library. Both projects were based on a commitment to the use of new technology and flexible working spaces. It was intended that capital authorisation proposals would be submitted to the Court’s next meeting.

Constitution of Students' Association
The Court approved amendments to the DUSA constitution, including the creation of an additional sabbatical post of Vice-President for Representation, a move which was supported by comments in the QAA report on the ELIR event (see above).

Human Resources Issues
The Court had received representations from staff concerned about job losses at West Park, as a consequence of the withdrawal from catered halls in accordance with the residences strategy. The Director of Human Resources commented on the situation and corrected inaccuracies that had appeared in the local press. The Court accepted that the issue was being appropriately managed by the University and noted that every effort would be made to identify redeployment solutions for the staff involved.

The Court was also given reassurances about the proposal, endorsed by the Human Resources Committee, that the few staff who remained on FE64 contracts (with terms and conditions that were significantly different from the University norm) should receive no further pay awards after 2005 but would retain the option of transferring to a University contract. It was explained that affected staff were not being placed at detriment as a result of mergers (i.e. with Duncan of Jordanstone College and Northern College): the change was occurring following abolition of the national negotiating machinery for these contracts and a phasing-out agreement which would expire in 2006. It was noted in particular that SHEFC had confirmed that this was not a merger-related issue.