Minutes of the Finance Business Operation - 2 December 2025

M. Hartland in the Chair.

58/25. Declarations of Interest

No pecuniary interests were declared.

59/25. Minutes of Meeting Held 04 November 2025 (Appendix – Agenda Item 3)

Resolved: That the Minutes of the meeting held on 04 November 2025, be approved as a true and correct record.

60/25. Matters Arising

None.

61/25. HR Annual Report 2024/25 (Confidential Appendix – Agenda Item 5)

The Committee reviewed a report (previously circulated) setting out progress made with strategic people management during the academic year 2024/25.

The report focussed on progress made towards the Strategic Development Plan 2021-2025 aim to achieve a common culture and to always be the first choice for staff through -

• • • Building a Strong Connected Workforce
    • Providing Excellent Leadership
    • Making Available Strong Professional Development
    • Providing Excellent Recognition and Reward.

The VP, P provided a verbal expansion on some of the report’s themes –

• • • Turnover and recruitment trends and impact. The college remained one of Shropshire’s largest employers. Staff turnover had increased slightly but remained well within sector norms. Recruitment and retention remained positive.
    • The college was not experiencing the recruitment difficulties apparent elsewhere across the sector. The VP, P considered that several aspects contributed to this: location, reputation and positive pay in relation to other local providers.
    • Wellbeing Programme. Work on wellbeing continued to be a priority and contributed to the college’s success in enhancing its local and national reputation. The latest Wellbeing Fair had been held in November 2025.
    • Communication. Engagement activity remained strong, with regular Staff Forum meetings and weekly Principal/CEO briefing videos. Readership of the 19 editions of the staff newsletter In the Loop, also distributed to all governors, had risen this year.
    • Professional Development and Training. The college continued to commit to the professional development of all staff, going beyond the mandatory training required by legislation.
    • Reward & Recognition. In 2024/25 the college was able to make a 5.5% pay increase, backdated locally to 1 September 2024, which had been particularly appreciated by staff.
    • Progress against strategic priorities set for 2024/25 and updates on priorities identified for 2025/26, including projects connected to the Employment Act and revision to the Trades Union Act.

62/25. Period 3 Management Accounts (Appendices, Agenda Item 5)

The Committee reviewed the Period 3 Management Accounts, which provided a detailed overview of the college’s financial position and operational performance to 31 October 2025 (previously circulated).

The Committee was advised of the following key issues –

• • • 16–19 Income was ahead of budget due to a late update to the funding allocation and inclusion of a National Insurance (NI) Grant for the full year which is now expected but not budgeted.
    • High Needs income was reforecast to reflect the current increased estimated value of Element 3 funding.
    • Higher Education and Advanced Learner Loans activity was slightly ahead of budget.
    • Pay costs had been reduced to reflect the confirmed reduction in the Local Government Pension Scheme (LGPS) employer contribution rate from April 2026.
    • Non-pay costs were forecast higher, mainly due to:
      • Expansion of capacity and additional college bus routes.
      • Increased utility costs.
      • Rebranding costs.
      • Insurance excess.

Overall Position

• • • Forecast operating surplus for the year was ahead of budget.
    • Forecast EBITDA was significantly ahead of budget.
    • Capital expenditure forecast to remain within budget.
    • Projected Financial Health score remained Outstanding at 260.

63/25. Financial Statement Auditors (FSA) Report – Draft Financial Statements for Year Ended 31 July 2025 (Appendices – Agenda Item 7)

The EDoF presented the following reports –

Financial Statements for the Year Ended 31 July 2025

The Draft Financial Statements for the Year Ended 31 July 2025 (previously circulated), which having been audited, indicated a clean unqualified audit opinion in terms of truth and fairness and regularity.

The Audit Committee had also considered the draft Financial Statements at its meeting on 28 November 2025 (Audit Min No. 25/25 refers) and had recommended them to Board. Minor amendments identified had been incorporated into the final version to be submitted to the Board.

The Financial Statements auditors would attend the Board meeting and the Letter of Representation and final version of the Financial Statements would be signed at the Board meeting in December 2025.

Going Concern Assessment

The EDoF also presented a report (previously circulated) providing the Committee with assurance regarding the status of the college as a going concern from December 2025 to December 2026.

The draft year end accounts, 2025–2026 financial plan, year-to-date operating outcomes and weekly cashflow forecast for the year all demonstrated continuing outstanding financial health.

The auditors had considered that the Board’s Going Concern assessment was reasonable and therefore the accounts had been appropriately prepared on the going concern basis.

Resolved: That, having considered the draft Financial Statements, the report of the Executive Director of Finance and Financial Statements auditors and the reports on going concern, the Committee RECOMMENDED TO BOARD that -

• • • the Committee considered Shrewsbury College to be a going concern; and
    • the audit findings and draft year-end financial statements 31 July 2025, as amended, be approved.

ACTION: REPORT TO BOARD 08/12/2025

64/25. Office for Students (OfS) Letter to Corporation Board Chairs – Emerging Sector Risks

The Committee Chair referred to the letter recently issued by the Office for Students (OfS) to update governing body chairs on the OfS’s view of current and emerging risks in the higher education sector and to encourage boards to ensure these were actively monitored and addressed.

The Quality, Standards & Curriculum Committee had received an assurance briefing on the college’s response to the quality and standards theme raised in the letter, namely legal compliance following commencement of new free speech duties.

The P/CEO explained that the letter also referred to potential risks to the financial sustainability of providers and provided assurance as to the college’s arrangements to mitigate these risks.

The Committee agreed that the college financial reporting covered all four risks identified and that it was assured.

65/25. Estates Update (Agenda Item 8)

The Committee received a verbal report from the P/CEO and EDoF, providing an update on estates-related projects aimed at improving the college’s capacity and infrastructure.

Details are set out in a Confidential Minute.

66/25. Governor Body Finance Dashboard – Letter and Dashboard (Appendices, Agenda Item 9)

The Committee reviewed the letter from the Department for Education (DfE) (previously circulated) confirming the assessment of the college’s financial health as –

• • • Outstanding for 2024/25 (the latest outturn forecast year); and
    • Outstanding for 2025/26 (the current budget year).

The Committee also reviewed extracts from the Financial Dashboard (previously circulated), which incorporated various key performance indicators and measures.

The Committee confirmed that the current reporting was sufficient and that the DfE report particularly valued was the benchmarking report which had been considered by the Committee in the last academic year.

The Principal/CEO confirmed that this information would be reported to the Committee when it was received in the current academic year.

67/25. Risk (Appendix – Agenda Item 10)

The EDoF explained that the Senior Leadership Team (SLT) had reviewed the Risk Register and the revised 2025–2026 Strategic Risk Register would be presented to the Board for approval 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. The P/CEO explained that the college was putting in place sufficient mitigating actions to control the risk and the Register would be amended going forward.
    • Risk that campuses are not sufficient to meet demand. The Committee acknowledged that the college continued to face challenges in securing sufficient funding to develop major capital projects to improve capacity at the college and to improve existing buildings.

68/25. Date of Next Meeting – Tuesday, 10 February 2026 from 5.30 p.m.

The meeting concluded at 6.53 p.m.