Minutes of the Finance Business Operation - 12 May 2026

M. Hartland in the Chair

18/26. Declarations of Interest

No pecuniary interests were declared.

19/26. Minutes of Meeting Held 24 March 2026 (Appendix – Agenda Item 3)

Resolved: That the Minutes of the meeting held on 24 March 2026, be approved as a true and correct record.

20/26. Matters Arising

Minute Number 15/26 – Health and Safety Term Report

In response to a question, the P/CEO provided a verbal update relating to fire safety at Welsh Bridge Campus. A similar inspection for London Road Campus scheduled for May had not yet taken place. The Committee requested an update as part of the Summer Term Health & Safety Report.

21/26. Draft Fee, Fee Remission and Refund Policy 2026 – 2027 (Confidential Appendix – Agenda Item 5.i)

The VP, Q, A & I presented the Draft Fee Policy 2026 – 2027 (previously circulated) for consideration prior to recommendation to Board.

It was noted that the policy broadly remained consistent with previous years. The Committee supported the college’s approach to the application of fees, as they reflected the quality and added value presented to students.

The Committee was also assured that fee income and funding would continue to be monitored through regular management accounts.

RESOLVED: It be RECOMMENDED TO BOARD that the Draft Fee, Fee Remission and Refund Policy 2026 – 2027, as amended, be approved.

Action: Recommendation and amended Draft Policy to be included in Governance Pack for July Board

22/26. Subcontractor Management, Retained Funding Policy 2026 – 2027 (Confidential Appendix – Agenda Item 5.ii)

The VP, Q, A & I presented the Draft Policy (previously circulated) for review prior to recommendation to Board.

The draft policy set out a comprehensive and standardised approach to the management, governance and oversight of subcontracted provision, in line with the Department for Education (DfE) Subcontracting Standard and sector best practice.

The VP, Q, I & A advised that the college currently held the Subcontracting Standard and was in the process of seeking re-accreditation.

The Committee considered the retained funding model, noting the transparency and proportionality of the arrangements. Ongoing oversight through committee reporting, annual review and detailed audit and compliance processes was acknowledged. The Quality, Standards & Curriculum Committee had received the Annual Sub-Contracting Report for 2024–25 at its last meeting (Q, S & C Min No. 16/26 refers).

The Committee agreed that the very small proportion of subcontracting continued to support the college's strategic objectives by addressing local, regional and national needs, widening participation, responding to employer demand and enabling specialist delivery.

RESOLVED: It be RECOMMENDED TO BOARD that the Draft Sub-Contractor Management and Retained Funding Policy 2026 – 2027, be approved.

Action: Recommendation and Draft Policy to be included in Governance Pack for July Board

23/26. Estates Report (Confidential Appendix – Agenda Item 6)

The Committee considered an update (previously circulated) on estates projects being progressed to improve the college estate.

The report covered campus capacity planning, major capital projects, capital funding bids and land development activity.

The Committee also received a verbal update from the P/CEO on the progress of proposals for the projects being developed with respect to -

• • • Construction Skills Capacity Fund – London Road Campus.
    • Post-16 Capacity Fund Project – Welsh Bridge Campus.
    • Land Disposal.

Details are set out in a Confidential Minute.

24/26. Period 8 Management Accounts (Appendices, Agenda Item 7)

The Committee reviewed the Period 8 Management Accounts, which provided a detailed overview of the college’s financial position and operational performance to 31 March 2026 (previously circulated).

The Committee was advised of the following key issues –

• • • Most income streams were forecast to be at or above budget and total income was ahead of budget year-to-date and forecast to exceed the full-year budget position.
    • EBITDA remained ahead of budget both year-to-date and in the forecast outturn. The forecast financial health grade remained Outstanding.
    • 16–18 funding was above budget due to increased learner numbers, late funding allocation adjustments and confirmation of additional NI grant funding.
    • A significant in-year uplift in High Needs Element 3 income was noted following agreement with the local authority and higher than planned student numbers. In response to questions, the P/CEO confirmed that the college could accommodate additional students with EHCPs enrolling in 2026/27. It was noted that there was an increase in EHCP students in Shropshire entering Year 7; this would potentially have an impact on the college going forward.
    • Apprenticeships and Higher Education income were both above budget.
    • Adult AEB income was slightly ahead of budget overall, despite reduced delivery in some devolved areas, offset by improved funding rates and other activity.
    • Advanced Learner Loans, education contracts and full-cost income were noted as broadly in line with or slightly ahead of budget.
    • Non-pay costs forecast had increased primarily due to:
      • Expansion of capacity and additional routes on college bus routes.
      • Higher utility costs.
      • Repairs and maintenance.
      • Professional fees.
    • Pay costs were reported as forecast to be slightly below budget overall despite additional costs of teaching unfunded students and higher agency and outsourced security costs earlier in the year. The Committee acknowledged that the forecast budget had featured significant pay contingency.
    • Capital expenditure to date was reviewed, including progress on the solar installation project and timing differences on other planned capital works.
    • Cashflow was noted as remaining strong, with year-end cash forecast to exceed budget.

25/26. Letter from Department for Education (DfE): College Financial Statements 2024 to 2025 (Appendix – Agenda Item 10)

The Committee reviewed the annual letter from the Department for Education (DfE) following the review of the college’s audited financial statements and associated returns for the year ended 31 July 2025.

Following the review, the DfE had concluded –

• • • That the college’s financial health grade for 2024/25 based on the outturn forecast was, and remained, Outstanding in the current forecast period.
    • No significant financial control concerns arose from the review of the college’s audited financial statements.

The Committee reviewed the Governing Body Finance Dashboard data (previously circulated) and concluded that, whilst the dashboard supported assurance to governors regarding financial sustainability, resilience and capacity to invest, the Management Accounts reports presented to every meeting met the Committee’s requirements and provided sufficient information to give assurance on the management of the college’s finances.

The P/CEO pointed out that the college’s performance on staff costs as a percentage of income as set out in the Dashboard was based on the financial plan and did not reflect the actual position, which was nearer the FE Commissioner benchmark for sixth form colleges.

26/26. Risk (Appendix – Agenda Item 8)

The Committee examined those risks within its remit and agreed that they had been identified and adequately discussed at the meeting.

The Committee agreed that the greatest long-term strategic risk remained that campuses were not sufficient to meet demand.

27/26. Confidential Minutes of Meeting Held 24 March 2026 (Appendix – Agenda Item 11)

Resolved: That the Confidential Minutes of the meeting held on 24 March 2026, be approved as a true and correct record.

28/26. Date of Next Meeting – Tuesday, 29 June 2026, from 5.30 p.m.

The meeting concluded at 6.43 p.m.