Minutes of the Finance Business Operation - 4 November 2025

M. Hartland in the Chair.

50/25. Declarations of Interest

No pecuniary interests were declared.

51/25. Minutes of Meeting Held 30 September 2025 (Appendix – Agenda Item 3)

Resolved: That the Minutes of the meeting held on 30 September 2025, be approved as a true and correct record.

52/25. Matters Arising

None.

53/25. Period 2 Management Accounts (Appendices, Agenda Item 5)

The Committee reviewed the Period 2 Management accounts, which provided a detailed overview of the college’s financial position and operational performance to 30 September 2025.

The Committee was advised of the following key issues –

• • • that total income was ahead of budget at this point. 16–18 income was above budget due to a late update to the 16-19 revenue allocation after the budget had been finalised.
    • The EDoF explained that forecast 16-19 income for 2025-26 did not include in-year funding for growth in student numbers. There was the potential for £250k-£350k depending on final numbers at census point and any affordability capping.
    • It has also been assumed that further NI Grant funding would not continue after March 2026. However, if this continued in April to July 2026 the NI Grant funding would equate to an additional c.£161k for the financial year.
    • Pay costs were below budget, with no change to the full year forecast due to pending pay awards which had been accounted for. The P/CEO advised that the Support Staff Pay Award of 4% had been applied in October 2025, backdated to 1 September 2025. One teaching union had accepted the 4% offer and one teaching union was now consulting members with a recommendation to accept the offer. It was noted that here remained a risk of strike action this academic year, as disputes remained regarding workload issues.
    • A potential reduction in LGPS employer contributions from April 2026, due to the recent LGPS scheme revaluation, was acknowledged. This has not yet been factored into the full year forecast until revised LGPS contribution rates were confirmed in November 2025.
    • Non-pay costs were forecast to exceed budget, primarily due to increased student transportation costs, increased IT and premises expenditure and increased marketing spend as part of the rebranding exercise.
    • High Needs Element 3 funding was forecast in line with budget, although additional funding of £100k–£200k was potentially due based on initial high needs student numbers.
    • Apprenticeship income was on budget, with minor timing variances.
    • Adult Education Budget (AEB) income was on budget, though risks remained in the newly devolved East Midlands region, where the college continued to work with trades unions to secure a route to funding delivery.
    • Higher Education income was slightly ahead of budget due to Modular Accelerator Grant enrolments.
    • Advanced Learner Loans currently exceeded the loan facility allocation to the college; however automatic increases due in December 2025, were expected to fully mitigate this issue.
    • The forecast EBITDA was slightly below the budgeted figure. However, this was still within the expected range. The operating surplus was also forecast to be slightly below budget.
    • The college’s projected financial health grade remained Outstanding.

The Committee reviewed strategic risks, with the highest being:

• • • Planned defunding of AGQs.
    • Insufficient campus capacity.
    • Underfunded High Needs support.
      and requested that, going forward, any risk movement be included in the report.

The Committee referred to the recent article in FE Week on the FE Commissioner’s Report into Havant and South Downs College. Following a verbal update from the P/CEO and EDoF, the Committee agreed that it was assured on the robustness of reporting of the financial information about the college and could provide such assurance to the Board.

The Committee acknowledged the financial and operational implications of the early-year trends and thanked the EDoF for the detailed update.

54/25. Health and Safety Annual Report 2024 – 2025 (Appendix – Agenda Item 6)

The Committee reviewed the Termly and Annual Report on Health and Safety across the college for August 2024 to July 2025 (previously circulated), which provided an update on Health and Safety and included an Assurance Statement about the Board’s responsibilities for health and safety.

The Committee in reviewing the reports particularly noted the following -

• • • All sites’ Fire Risk Assessments had been audited by an external service, with low-risk remaining action points being implemented, providing assurance.
    • Annual Invacuation/Lockdown drills were completed annually, with no significant issues raised.
    • All Health and Safety audit findings from 2024–25 had been addressed.
    • There had been no RIDDOR reportable events during the reporting period.
    • All health and safety incidents and near misses were analysed for any trends or training needs. The Committee noted that most accidents were minor and often due to inexperience or lack of attention, with a reduction in incidents over time. Three near misses had been reported and investigated.
    • Risk assessments were continually reviewed and adjustments made where required to ensure the continued safety of all staff, students and visitors.
    • All college procedures had either been reviewed or were in the process of being so, by the Health and Safety Manager and EdoF.
    • The Committee reviewed the college’s assurance against the “Leading Health and Safety at Work” criteria, confirming strong leadership, staff involvement and robust audit and reporting systems.

The Health & Safety Link Governor had reviewed the report prior to submission to the Committee and, along with the Committee had identified the increase in the number of First Aid incidents relating to anxiety, illness, dizziness, or wellbeing, with no first aid administered. The Staff Governor, who was a First Aider and Mental Health First Aider, confirmed that they were attending more first aid incidents of this nature. In response to questions on this trend, the EDoF and P/CEO explained that the college had an extensive safeguarding reporting procedure, to ensure that any vulnerable students were identified and the appropriate support given. Whilst the college had sufficient first aiders, it would always welcome more recruits, to ensure an even response to incidents. The Health and Safety Manager continued to work with the First Aiders to ensure they felt supported and recognised; an honorarium continued to be paid monthly in recognition.

The Committee acknowledged that the Draft Health & Safety Policy had no major changes for 2025 – 2026. The Annual Health & Safety Policy Statement would also be signed by the Board Chair and Principal/CEO at the December Board meeting.

Resolved: That, having considered the report and being assured, the Committee RECOMMENDED TO BOARD that the Health & Safety Annual Report and Policy be approved.

ACTION: Report to December Board.
Board Chair and P/CEO to sign 2025 – 2026 Health & Policy Statement at December Board meeting.

55/25. Estates Update (Agenda Item 7)

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.

56/25. Risk (Appendix - Agenda item 8)

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

It was acknowledged that the Risk register would be revised going forward, to accommodate the estates matters discussed under confidential session.

57/25. Date of Next Meeting – Tuesday, 04 November 2025 from 5.30 p.m.

The meeting concluded at 7.05 p.m.