Minutes of the Finance Business Operation - 10 February 2026

M. Hartland in the Chair.

01/26. Declarations of Interest

No pecuniary interests were declared.

02/26. Minutes of Meeting Held 02 December 2025 (Appendix – Agenda Item 3)

Resolved: That the Minutes of the meeting held on 02 December 2025, be approved as a true and correct record.

03/26. Matters Arising

None.

04/26. Estates Reports (Confidential Appendices – Agenda item 5)

The Committee discussed the following confidential reports (previously circulated) providing an update on estates-related projects aimed at improving the college’s capacity and infrastructure.

Termly Estates Update

• • • Peter Marsh Consulting had begun work in partnership with the college on the refresh of the college’s Estates Strategy. Following an initial site visit in January 2026, with wider engagement planned for March; conclusions would be presented at the Board Strategy Day in April.
    • Planned works for summer 2026 included a mezzanine installation in the Brick Workshop at the London Road Campus and reconfiguration of space at the Welsh Bridge Campus to create additional classrooms.
    • Several other projects to increase the number of classrooms over the summer were being considered to further increase capacity.
    • The college had received advance funding through the Great British Energy Solar Programme and installation of additional solar capacity at the London Road Campus was scheduled to begin over Spring Half Term.
    • Regarding the new Construction Centre at the London Road Campus, tendering had concluded with indicative costs presented, alongside the option to zero-rate VAT. The withdrawal of Department for Education (DfE) funding had pushed the target completion date back to September 2027, with most bidders still able to meet the revised timescale. Risks were highlighted regarding affordability, delivery timelines, future Post-16 Capacity Funding opportunities and the implications of zero-rating on permitted activity in the building.

The Committee also received an initial update on the 2026 Capacity Funding round announced earlier in the day and which was open to General FE and Sixth Form Colleges, but not to schools –

• • • A total fund value of £570m, split between £283m devolved and £287m national allocations had been announced. The bid submission deadline was mid-April, with DfE outcomes expected in July 2026.
    • Funding included £375m Post-16 Capacity Fund (P16CF) and £195m Construction Skills Capacity Fund (CSCF), with devolved and non-devolved elements in each.
    • Grant parameters included –
    • a maximum grant of £5m and a minimum threshold of £250k (including VAT).
    • all bids must meet minimum capacity requirements, including creating at least 31 additional learner places for P16CF and CSCF bids, with CSCF projects permitted to include 16–19 and/or adult learners.
    • colleges could submit multiple bids across the two strands, subject to meeting eligibility and project criteria.
    • new build schemes were discouraged, with regional capacity being a determining factor in assessment.
    • CSCF projects required employer contributions and that although match funding was not scored, it appeared DfE-style discretionary weighting might still apply.

The Committee discussed the implications of these requirements for the college’s construction redevelopment plans, particularly considering the previous withdrawal of capital allocations and the grant parameters. It agreed to support the application of bids.

College Estates Projects

Details are set out in a Confidential Minute.

C. Frazer, J. Hoyland, M. Pavitt, C. Sharp and M. Thompson left the meeting at this point.

05/26. Period 5 Management Accounts (Appendices, Agenda Item 6)

The Committee reviewed the Period 5 Management Accounts, which provided a detailed overview of the college’s financial position and operational performance to 31 December 2025 (previously circulated).

The Committee was advised of the following key issues –

• • • 16–19 income remained ahead of budget due to a late update to funding allocations and expected continuation of NI Grant funding (no change since the P3 forecast).
    • High Needs (Element 3) income had been reforecast significantly above budget, reflecting higher numbers of learners requiring support.
    • Adult (AEB) income had increased since P03 due to improved Greater London Authority (GLA) funding rates and revised arrangements for Trades Union delivery; subcontracted activity had increased to offset ASF changes.
    • Higher Education and Advanced Learner Loans income remained slightly ahead of budget, supported by Modular Accelerator Grant recruitment patterns.
    • Education contracts were improved by £90k reflecting the commitment from GMB/TUC to pay directly for delivery in the East Midlands Combined Authority.
    • Pay costs were forecast lower following confirmation of the reduction in LGPS employer contribution rates from April 2026 (no change since P3 forecast).
    • Non-pay costs were forecast above budget owing to additional bus route costs, increased utilities and maintenance, and professional fees.
    • The forecast operating surplus remained ahead of budget and EBITDA remained significantly above plan.
    • Capital expenditure remained broadly within plan, though unplanned equipment expenditure had been committed, leaving limited contingency remaining; the receipt of advance grant funding for the solar installation project was noted.
    • The forecast financial health score stood at 270 (“Outstanding”).
    • Cash reserves at 31 December 2025 were reported, with year-end cash levels forecast to remain ahead of budget.

06/26. Risk (Appendix – Agenda Item 7)

The revised 2025 – 2026 Strategic Risk Register had been approved by the Board at its December meeting.

The Committee acknowledged the addition of risk movement information requested and examined those risks within its remit and agreed that they had been identified and adequately discussed at the meeting.

The key risks remained –

• • • Planned Defunding of Applied General Qualifications (AGQs) in 2026/27.
    • Risk that campuses are not sufficient to meet demand.

07/26. Date of Next Meeting – Tuesday, 24 March 2026 from 5.30 p.m.

The meeting concluded at 6.38 p.m.