Court news

Discussion of financial developments and capital projects predominated at the Court's meeting in October.

Scottish Funding Council

It was reported that the Scottish Funding Council had held its September meeting in the University. The Principal had given a welcome address and a small group of University representatives had met with Council members and officials over lunch.

Financial Position of the University

The Principal reported that the annual audit was still under way, but the preliminary year-end result showed a deficit of £1.6m against a predicted surplus of £2.2m. This disappointing outcome was attributable to expenditure exceeding forecast in some areas, as well as accounting issues and budget overspends. Staffing budgets had not been overspent, although these would need to be monitored carefully in the current and future financial years. The gap between forecast and actual result had a cash effect of approximately £2.8m.

Measures which were being taken in response to the negative financial position were outlined. These included the establishment of a sustainability group, convened by Professor Michael Davies, to take a strategic view of financial planning including the affordability of the capital programme, staffing levels, the University's borrowing strategy and research overhead recovery. Other, more immediate steps included the placing of cash limits on expenditure from School reserves in 2006/07, a review of the scope for savings within the capital programme, and the improvement of financial forecasting through the introduction in January of a commitment accounting system.

Irrespective of the outcome for 2005-06, the Scottish higher education sector as a whole was facing a tough financial climate in the years ahead and the University was not alone in having to take difficult decisions. Nevertheless the Court was urged to take the long view: on the positive side, the University had just admitted one of its strongest ever intakes of students, research income was being maintained in a very competitive environment, commercialisation successes were a model for other institutions and significant investment was being made in addressing long-standing estate and other infrastructural problems. The University's overall performance was good and strategic development should not be stymied by one poor financial result.

The Court decided to establish a sub-group of lay members to track progress on financial sustainability planning and improvements in financial reporting, and to act as a sounding board for senior management. Officers were asked to engage in early discussions with SFC officials regarding the year-end result and the University's request to increase its borrowing capacity (approved by the Court in September).

Translational Medicine Research Initiative

The Court approved the recommendations of the Finance & Policy Committee concerning financing of the TMRC building at Ninewells, including the borrowing of £9m, subject to further discussions with Scottish Enterprise and the Scottish Executive on risk mitigation and final signing off by a delegated sub-group of Court members.

Life Sciences Buildings

The Court received a capital proposal setting out the case for the upgrading and remodelling of much of the Medical Sciences Institute. This project was the planned second phase of building development for the research activities of the College of Life Sciences, following completion of the Sir James Black Centre.

The essential aim of the refurbishment exercise was to bring the ageing accommodation within MSI up to the standard of the modern laboratories within the Wellcome Trust Biocentre and the Sir James Black Centre, and further consolidate research within this complex. The redevelopment would also provide temporary accommodation for the TMRC activity and subsequently support high profile new research groups. The total projected cost was £4.5m, of which £3m was attributed to external funding. The Court gave full authority for the project to proceed.

The proposal left open the question of whether the neighbouring Biological Sciences Institute, from which research activity would be decanted into the refurbished MSI, should be redeveloped or demolished. The options for future use of that building, or the site, were outlined and it was noted that these were subject to a review of the whole south-west corner of the City campus.

Schedule of Delegation

The Court approved proposed amendments to the Schedule of Delegation and Decision-Making Powers. These were required as a result of the restructuring of the University into Colleges, implementation of the Framework Agreement on pay and grading, and miscellaneous other adjustments and improvements which had been identified since the last updating in October 2004. The revised Schedule may be consulted at https://secure.dundee.ac.uk/academic/

Disability Equality Scheme

The Court's attention was drawn to the Disability Equality Scheme approved by the Human Resources Committee, which identified the Court's responsibilities for ensuring that the University complied with statutory obligations and that the Scheme and associated Action Plan were implemented, monitored and reviewed. It was confirmed that the audit process relating to these responsibilities would be carried out through the Equality & Diversity Working Group and the Human Resources Committee.