¹û¶³Ó°Ôº

The Chair welcomed members to the meeting of the University Court. Particular welcome was extended to new lay members Patrick Bartlett and Andrew Watson. Members were reminded that a third new lay member, Ellenore Hobkirk, would take up appointment on 1 March 2024. Apologies were noted as having been received from Janet Archer, Louise Ford, Dr Maria Giatsi-Clausen, Dr Arturo Langa, Robert Patullo, and Bill Stronach.

There was no Other Competent Business identified.

4.1 Minutes of the previous meeting

The unconfirmed minutes of the meeting of the University Court held on 6 December 2023 (paper Court (23) MINS 05) were APPROVED as an accurate record.

The unconfirmed minutes of the Extraordinary meeting held on 13 December 2023 (paper Court (23) MINS (06) were APPROVED as an accurate record.

4.2 Matters arising

There were no matters arising from the minutes.

The Chair reported on her continued internal engagement with members of the University community, and with the senior leadership. The Chair continued to have regular 1:1 meetings with the Principal, with recent meetings focusing in particular on movements in the financial position for 2023/24.Ìý The diligence being exercised by the Finance and Estates Committee provided important reassurance in terms of oversight, and she extended her thanks in particular to the Chief Operations Officer and the Director of Finance for their work on refining the financial reports provided to the Court.Ìý

Since the previous Court meeting, the Chair had attended a very enjoyable production of ‘Charley’s Aunt’ at the Studio Theatre on campus performed by students on the BA (Hons) Acting and Performance students. She had been impressed by the students’ professionalism and enthusiasm and looked forward to future productions.Ìý

In terms of external engagement, the Chair had participated in a meeting of the Chairs of Scottish University Nomination Committees, at which good practice was shared and a range of topics, including board diversity and development had been explored. The meeting had provided a very useful opportunity for networking and informal discussion with the other Chairs.Ìý

Finally within her update, the Chair drew to members’ attention the publication of a recent report (January 2024) from Price Waterhouse and Cooper: . The report highlighted a number of challenges affecting the UK Higher Education sector, including the escalating cost base and constraints on income generation. Whilst some of the scenarios within the report applied to England and Wales only, the Chair and the Principal welcomed the report as a helpful and nuanced reference point for discussion at the Court Strategy Day in April 2024, and which would inform wider Scottish sector discussions. An on-line briefing event on the report would be hosted by the Committee of University Chairs (CUC) on 7 March at which the Chair would be represented by Robert Patullo, Convener of the Finance and Estates Committee.Ìý Further update would come to the Court in due course.

The Court received a detailed written report from the Principal (paper Court (24) 01). In speaking to the report, the Principal highlighted the following matters in particular:Ìý

6.1 External context

The operating environment remained unchanged essentially from the Principal’s previous report. The Scottish Government budget, published on 19 December 2023, signalled a 2.8% cut in cash terms in the aggregate of resource and capital. Within that, revenue was down by 6% and capital up by 4.75%. It had not yet been decided how capital funding would be split between research and knowledge exchange and maintenance, but the sector had expressed a strong preference for an uplift in the research and knowledge exchange grant. The Principal had participated in a sector-wide meeting on Monday 19 February 2024 with the Scottish Funding Council (SFC) Chief Executive and senior SFC representatives.Ìý This had been a useful opportunity to discuss the implications of the budget and related matters. The Principal highlighted the additional challenge of the necessary financial to academic year conversion to bridge the gap between the start of the financial year for the Scottish Government’s budget (6 April 2024) and the timing of SFC allocations (from 1 August 2024).Ìý

Against the backdrop of reducing public investment, the challenge for the University was to maintain its institutional Purpose of delivering high quality teaching and research, promoting innovation, engaging with business, supporting students, and providing a community anchor. In preparation for the Court Strategy Day in April 2024, and in the context of those overall goals and the operating environment, the review of the tuition fee growth plan and development of the University’s business and operating model were being advanced. Analysis was also being undertaken of the impact of the headline inflation forecasts; inflation remained at around 4% with the likelihood of a decrease towards the Bank of England target of 2% over the following year.

6.2 Student recruitment and student numbers 2024-25

An update was provided on student recruitment and admissions activity for entry in Session 2024-25. The Principal prefaced this item by extending his thanks to colleagues in the recruitment and widening participation teams for their hard work to increase and convert applications. He was pleased to report that the new conversion management tool, ‘Gecko’, was being used to good effect to capture events, create new contacts, and issue communications to prospective students. There had been a marked increase in offer making (up 140% from the previous year) with greater flexibility applied to standard and contextual admissions criteria.Ìý

At this stage of the recruitment cycle, following the UCAS deadline of 31 January 2024, there was a modest increase of just over 2% in undergraduate applications compared to the previous year. Within this overall increase, there was a 12% increase in direct entrants, following a decline in the previous year. However, for various reasons this increase was unlikely to be sustained in future years. Whilst it was early in the cycle to draw firm conclusions about postgraduate numbers, home applications were up by an encouraging 12%. Consistent with sector trends arising from visa and other challenges affecting international students, international applications had decreased. More positively, student numbers and income for overseas collaborations had exceeded the forecasts set for 2023-24. The University continued to strengthen relationships with existing partners, whilst also seeking new partners, including a major new partner in Egypt.Ìý

In his December report to the Court, the Principal had advised that SFC funded student number targets had been met. However, the subsequent Early Statistics Return to the SFC for 2023-24 indicated a shortfall against funded student numbers, with numbers being reported as being below the SFC’s under-enrolment tolerance threshold. Whilst disappointing, the Principal advised that it was important to note that there were national issues at play in some subject areas eg Nursing and Initial Teacher Education. He did not anticipate funding clawback from the SFC, on the grounds that the University had not seen an equivalent shortfall in previous years ie there was no evidence of serial failure. In the event of clawback, the financial impact would be reflected in the 2024-25 budget.Ìý

Members were reminded that student retention was an important contributing factor to the achievement and maintenance of SFC funded targets student numbers. At a sector level, Universities Scotland had reported that student retention had been more challenging in the current academic year for a variety of reasons, including the legacy impact of disruption to learning caused by Covid, as well as the cost-of-living crisis, poor mental health, the impact of industrial action at colleges, and opportunities for immediate employment. ¹û¶³Ó°Ôº Student Services had experienced a significant increase in students presenting with a range of extenuating and related circumstances, and ¹û¶³Ó°Ôº staff attendees at the meeting asked that the exceptional support and response from the Student Services team be recorded.

The Vice-Principal and University Secretary advised that the proportion of Scottish full-time first year entrants returning to study in 2022-23 was around 2% below the 2023-24 Outcome Agreement target of 90%. As explained in the Outcome Agreement, multi-faceted approaches were in place to enhance student engagement, persistence, and retention. Student withdrawal and deferral reports were reviewed on a weekly basis, including regularly at the Widening Access and Retention (WISeR) Board and through Programme and School Annual Monitoring Reports. Further update would come to future Court meetings through the performance reporting framework and KPIs.Ìý

6.3 Financial position 2023-24 and forecast position

The latest projected outturn for 2023-24 and the forecast position for 2024-25 were covered more fully under agenda item 7. The Quarter 2 forecast showed a modest improvement from a projected deficit of £1.6m at Quarter 1 to a projected deficit of £1.3m. As discussed at previous Court meetings, there was a continued focus on improving the annual financial performance, whilst ensuring that resources remained available for investment. Work had commenced on a strategic (capital) investment plan, which would include physical assets i.e. both maintenance and improvement, as well as digital investment, much of which would be influenced by the Target Operating Model (TOM) work (minute 6.6 refers). The Court Strategy Day in April 2024 would provide an opportunity to discuss the forecast position in depth.

6.4 Voluntary Exit Scheme

A Voluntary Exit Scheme had launched on 5 February 2024 and would close on 15 March 2024. The purpose of the Scheme, from the employer perspective, was to provide an opportunity to adjust organisational structures to reflect current and emerging institutional needs better, and to make cost savings. From the staff perspective, the Scheme could provide a positive opportunity for those who might consider that the time was right to move on from the University. In response to a query, the Principal confirmed that there were no target numbers associated with the launch of the Scheme, and that this round would close on 15 March.

6.5 New Finance system

The Principal advised that, by means of his report, he was seeking the approval of the University Court for a proposed increase in budget spend for Project Galileo, the project to deliver a replacement university finance system.Ìý A project time-line and accompanying budget update was included as an Appendix to the Principal’s report (paper Court (24) 01).Ìý

The paper provided explained that the project team had reviewed the existing Unit 4 contract and the supporting Statement of Works (SOW) covering the implementation of the replacement system. The review had revealed gaps in the original implementation plan, with modules omitted that were considered by the team to be business critical. Further information gathering suggested that there was functionality and modules within the product that met ¹û¶³Ó°Ôºâ€™s requirements that should have been included in the project implementation and costing.

The project would be delivered in two phases, with Phase 1 to deliver key functionality and enhancements, and Phase 2 to deliver remaining modules and enhancements.Ìý

The original project budget had been reviewed and a revised project budget developed as set out in the appendix provided. The projected cost of phase one, which had been reviewed and updated, was £1.35m, representing a material change from the original costing of £498k. The revised budget reflected a fuller understanding of the resources, expertise and known costs required to deliver phase one over the coming three months. Since this was above the executive’s delegated authority, approval was being sought from the University Court for the projected level of budget spend.Ìý

The second phase had been paused, pending consideration of the fit with the wider work on the operating model. The detail of phase two would be supported by a business case and considered alongside other bids for capital investment funding. The Finance and Estates Committee had supported this approach, based on the update provided to its meeting on 8 February 2024 (Minute 7 refers).Ìý

In discussion, the arrangements for capitalisation of the spend was noted, and of the projected impact on depreciation was advised as being subject to further work.ÌýÌý

Having reviewed the proposals, the University Court APPROVED the revised budget of £1.35m for phase one. It was agreed that updates on both phases would come to future meetings of the University Court, following discussion at the Finance and Estates Committee.

6.6 Operating Model

The Principal invited the Chief Operations Officer to speak to this item in his capacity as Project Lead.Ìý

The Chief Operations Officer advised that he had been working with the appointed delivery partner, SUMS Consulting to consider the full scope of the work involved in the application of a Target Operating Model (TOM), and how best to enable this. Members were reminded that the TOM was a medium to long term solutions focussed project with the aim of reducing costs through improved efficiency and business operation. The project was currently in a discovery and development phase, which included benchmarking comparisons and stakeholder engagement. The project had been presented already to the Leaders’ Forum.

A Project Execution Plan (PEP) had been produced, including a proposed budget and a programme of connected workstreams, alongside the procedures and systems required to manage and control its successful delivery. As advised previously, delivery of the TOM would require levels of investment and strong governance arrangements to ensure the delivery of enhancement activity in parallel with business as usual. Detailed reports on the PEP and associated financial position and projections would be considered at future meetings of the Finance and Estates Committee and the University Court.Ìý The project would also be discussed in detail at the Court Strategy Day.

6.7 Scottish Covid Inquiry

Along with all other Universities and Colleges in Scotland, ¹û¶³Ó°Ôº had received a ‘Rule 8’ request in mid-January to provide written evidence to the Scottish Covid Inquiry, with a short deadline of 8 February 2024. Thanks were extended to the Vice Principal & University Secretary, who had overseen the preparation of the submission. The Principal also conveyed his thanks to Malcolm Cutt (former Director of Finance and Corporate Strategic Development), who had been contracted to draft key parts of the submission narrative, and to the Policy Adviser (Governance and Compliance) for his contribution. In reviewing the response prior to submission, the Principal had been reminded of the very significant hard work and breadth of activity undertaken by members of the University community throughout the period of the pandemic, and beyond. This included staff and student support to the NHS, the positioning of Maggie’s as a community hub, the establishment of Covid Testing arrangements, and the hosting of an NHS vaccination facility.ÌýÌý

6.8 Palm Fat Alternative

A commercial champion had been appointed to support the palm fat alternative (PalmAlt) project team using funding from the Scottish Enterprise High Growth Spin Out award. Colleagues from the project team continued to work closely with Edinburgh Innovations, Edinburgh University’s research commercialisation team. The Principal would keep members updated on developments.

6.9 Outdoor Learning Hub

The Principal was delighted to report that the Outdoor Learning Hub was complete and would be launched formally in March 2024. The Hub, which aligned with the Future Spaces project, would offer a unique opportunity for local and national engagement in the fast-evolving subject of outdoor learning practice, leadership, and professional development. It was also designed to be an asset for the local community to enjoy.Ìý

6.10 Equality, Diversity and Inclusion Culture Review, Strategy and Action Plan
Ìý
The University’s Equality, Diversity and Inclusion (EDI) Culture Review report had been published on 20 February 2024, World Day of Social Justice. Members were reminded that the review had been commissioned by the University’s Race Equality Steering Group and led by Professor Paul Miller (EDI and Anti Racism Adviser to the Principal) and visiting fellows, Dr Leroi Henry, and Dr Kenisha Linton-Williams. The Review had not been commissioned as a response to any negative incident, but rather from a recognition that racism exists in society and that therefore no institution is immune. The findings within the report had informed an EDI and Anti-Racism Strategy, alongside a five-year Action Plan, implementation of which had already commenced across the University. The Principal thanked the project team and staff and student contributors to the comprehensive review process. Updates would come to future meetings of the Court through the minutes of the Equality and Diversity Committee and the Principal’s reports.

6.11 Court Strategy Day

The Principal looked forward to the Court Strategy Day on 17 April 2024, which would provide an important opportunity to take stock of progress against current plans and present to the Court for discussion and agreement proposals for the coming three to five years. Discussions would concentrate on how best to build on current strengths and opportunities, against the backdrop of the financial and other challenges facing the sector in Scotland.

7.1 Quarter 1 Financial Report

Court RECEIVED the Quarter 1 financial report for 2023-24 (paper Court (24) 02).Ìý

It was NOTED that the version issued to members on 19 February 2024 superseded the version issued with the Court papers on 14 February 2024, having been updated in response to constructive discussion at the most recent meeting of the Finance and Estates Committee (FEC). Specifically, FEC had sought clarification in relation to the projected financial outturn where significant variances against budget occurred. This related in particular to tuition fee income, other operating expenses and projected staff costs.ÌýÌý

As set out in the report and advised previously to the Court, Q1 reporting had been delayed due to the protracted year end audit. Forecast positions reflected all known financial impacts at the time of writing in early January 2024. The result to Quarter 1 showed the overall financial position in line with budget, with variances across income and expenditure categories as described in the accompanying commentary. The outturn position forecast an increase in the 2023-24 projected deficit by £0.6M, remaining within covenant permitted limits.Ìý

7.2 Period 5 and 6 ReportsÌý

Court RECEIVED the 2023-24 Period 5 financial report as at 31st December 2023, with accompanying update to the Q1 position (paper Court (24) 03). Court also RECEIVED the Period 6 financial report as at 31 January 2024, with accompanying update (paper Court (24) 04).

The scheduling of the February meeting of the Finance and Estates Committee meant that FEC had not yet considered the Period 6 report, but an agreement had been reached to present this additional information as a follow-up paper to the Court. Whilst it was recognised that the sequencing of FEC and Court meetings presented difficulties in terms of reporting, it was requested that, where possible, financial reports be considered by the FEC in advance of coming to the Court, or that the FEC Convener be invited to take a view.

The Period 6 report invited feedback on the reporting format. One member raised a concern that the financial position continued to be mapped against budget rather than forecast, thereby potentially reducing visibility of variances. It was further requested that the narrative be aligned more closely with the tables presenting the income and expenditure position to explain the background to any variances. These points were welcomed.Ìý The paper would be subject to further discussion at the next meeting of the Finance and Estates Committee on 7 March 2024.Ìý

Court RECEIVED an update on the Land Development Project (paper Court (24) 05), including the current dashboard report for the Hub as an Appendix.Ìý

Introducing the paper, the Chief Operations Officer advised that the University and the Joint Venture continued to liaise with the local authority planning department in advance of making a submission to the updated Local Development Plan. The submission would consider all on and off campus development plans around the University with a particular focus on proposals for the Edinburgh Innovation Park and the University Commercial Zone.

The website for the Hub had been launched to coincide with the announcement of Heron Brothers Limited as the construction contractor, and an official launch event was being planned for March 2024, to include ministerial representation from the Scottish and UK Governments.ÌýÌý

With respect to governance, a workshop had been scheduled to review and update the risk registers relating to the Land Development. The update would consider changes arising from the appointment of the main contractor and related risk transfers.

Members welcomed the update and commended the website design and content. In response to a query regarding leadership for innovation, the Chief Operations Officer reported that the Joint Venture intended to appoint a senior member of staff to this role before the end of 2024. The Principal advised that consideration was still being given to a senior post within the wider University management structure.

Court RECEIVED an update on proposals for a Performance Report and supporting revised suite of Key Performance Indicators (KPIs) (paper Court (24) 06). The proposals represented an update to the paper considered on 6 December 2023 (paper Court (23) 48 refers) and reflected discussion at that meeting and the meeting of the University Senate held on 13 December 2023.

Introducing the paper, the Principal thanked the Chair for her support throughout the development process. The proposed new approach sought to ensure that Court members were provided with information that provided them with the necessary assurance that key accountabilities and responsibilities were being met, exercised either directly by the Court and its Standing Committees (including Senate), or though the University executive. In ‘measuring’ its performance, the Court needed to be satisfied, as a minimum, that it was meeting its fiscal and legislative duties, having in place necessary controls and reporting arrangements. It must also be satisfied that, through its system of governance, the University’s academic standards and the student experience are protected and advanced.

To achieve this aim, the following approach had been developed:

• A Performance Reporting Framework (Annex A) setting out the Court Assurance Obligations, the implied responsibilities, sources of direction, and reporting timeframes.
• A six-monthly Performance Report (Annex B) including an update on enabling activities designed to deliver against the University’s five Strategic Goals, the Outcome Agreement and other governance obligations. The report’s emphasis would be on short narratives supported by quantitative measures, where appropriate. A list of measures and activity examples which might be included in the report was presented for members’ consideration at Annex C.Ìý

Members welcomed the suggested approach, commending in particular the mapping against the Court’s assurance obligations, the alignment with institutional strategy and the balance of KPIs and narrative. In response to a question about health and safety KPIs, it was clarified that the Health and Safety Committee provided the necessary assurance, including through its annual report to the Court. The quarterly compliance reports also contributed to the evidence base.Ìý

The first populated report would come to the Strategy Day in April 2024, following which the approach would be adjusted, based on feedback. Members were reminded that the institutional Strategic Plan for the period 2024-25 was due to be refreshed and that this exercise would provide an opportunity to review strategy alignment and measurability of the strategic goals.Ìý

The Chair looked forward to continuing discussion and thanked the Principal and Head of Strategic Planning and Policy Development for their work to date. Whilst it had taken longer than anticipated to develop the revised framework, it was important to invest time in the development of an appropriate format.

Court RECEIVED the annual report on Information Governance over the calendar year 2023 (paper Court (24) 07).

Court NOTED a report on the following areas of compliance activity from October 2023-December 2023 (paper Court (24) 08):

1. Complaints.
2. Requests made under the Data Protection Act 2018.
3. Requests made under the Environmental Information (Scotland) Regulations 2004.
4. Requests made under the Freedom of Information (Scotland) Act 2002.
5. Activity related to the Counter-Terrorism & Security Act 2015.

Thanks were extended to the Policy Adviser (Governance and Compliance) for his work on the paper.

Court RECEIVED the minutes of the meeting of the Finance and Estates Committee held on 8 February 2024 (paper FEC (24) MINS 01). Members were advised that the version circulated was in draft form, and that the unconfirmed version approved by the Convener would be issued separately as a follow-up to the Court meeting. A member suggested that, as a general point, the brevity of the minutes meant that the level of challenge and robustness of discussion in the meeting had not been captured. This would be addressed in future minutes.

13.1 Meeting held on 13 December 2023

Court RECEIVED the unconfirmed minutes of the meeting of the Senate held on 13 December 2023 (paper SEN (23) MINS 05). Members NOTED with interest the following updates:

CPD Fellowships (minute 5.9 refers): The Senate minutes recorded details of colleagues who had achieved professional recognition for their learning, teaching, and student support under the University’s CPD Fellowship Scheme over the past six months. The Principal reiterated his congratulations to the award recipients, noting the importance of ongoing investment in staff to deliver a high-quality student experience.Ìý

Learning, Teaching and Assessment (LTA) Strategy (minute 6.1.2 refers): The new LTA Strategy was being developed to align with the overarching ¹û¶³Ó°Ôº Strategic Plan and Growth Plan, as well as the planned development of the Target Operating Model, and with the established themes within the Student Experience Strategy. The draft Strategy was expected to be completed by June 2024.Ìý

Generative Artificial Intelligence (AI) (minute 6.1.4 refers): Academic Guidance had been developed and implemented on ‘The Use of Generative AI at ¹û¶³Ó°Ôºâ€™. The University had adopted a position of working with rather than against generative AI technology, in recognition that this would be integral to many graduates’ future careers.

13.2 Annual Statements on Compliance with the Concordat on Research Integrity and the Concordat to Support the Career Development of Researchers

Court APPROVED the Annual Statements, which were appended to the minutes of the meeting of the Senate held on 13 December 2023 and had previously been approved by the Research Strategy Committee. The reports, which were publicly available on the ¹û¶³Ó°Ôº website signalled the University’s commitment to the Concordats, capturing both the highlights of the previous 12 months and identified areas for development.Ìý

Ìý

COURT RECEIVED the unconfirmed minutes of the meeting of the Health and Safety Committee held on 14 December 2023 (paper HSC (23) MINS 04). There were no matters brought to members’ attention.

COURT RECEIVED the unconfirmed minutes of the meeting of the Equality and Diversity Committee held on 8 June 2023 (paper EDC (23) MINS 04). There were no matters brought to members’ attention.

Court RECEIVED the minutes of the meeting of the Senior Management Remuneration Committee held on 6 December 2023 (paper SMRC (23) MINS 02) and NOTED that recommendations therein had been approved by the University Court at its meeting on 6 December 2023.

Court RECEIVED an oral report from the Vice-Chair on the appraisal of the Chair of Court. The Chair withdrew from the meeting for this item in line with the Court agreed policy.Ìý

The Vice-Chair had conducted the appraisal under the process established by the University Court in compliance with the Scottish Code of Good Higher Education. That process offered all governing body members the opportunity to provide relevant feedback, individually and in confidence. Thanks were extended to all members who had taken up the opportunity to contribute to the appraisal.Ìý

Feedback had been entirely positive, with members commending in particular: the Chair’s inclusive approach, her understanding of the work of the University and wider context, the effective relationship established with the Senior Leadership Team, and the effective conduct of meetings, which were appropriately action oriented, constructive, and challenging. Lay members had also provided positive feedback on their 1:1 appraisal process with the Chair.

One member had provided positive feedback about the executive summary papers included with some Court papers.Ìý

The Vice-Chair provided brief feedback to the Chair on her return to the meeting, and confirmed the positive outcome of the appraisal. On behalf of the Court, he thanked the Chair for her leadership and positive influence on the effectiveness of the Court. It was confirmed that, in line with the arrangements agreed by the Court, the National Annual Pay award would be applied to the Chair remuneration.

The University Court will meet on the following dates in Academic Session 2023-24:

Wednesday, 17 April 2024: Strategy Day (full day)
Wednesday, 19 June 2024 at 3.00 pm

There were no items for information.