Court Minutes 18 December 2024

The Chair welcomed members to the meeting of the University Court. Particular welcome was extended to new lay members, Ann Hill and Sofia Khan, and to Andrew Youngson, Policy Adviser (Governance and Compliance), who was in attendance as an Observer.

Apologies for absence were noted as having been received from Janet Archer, Jay Brown, Arturo Langa, Sir Paul Grice, Garvin Sealy, and Bill Stronach.

There were no conflicts of interest declared.

There was no Other Competent Business identified.

4.1 Minutes of the meeting held on 2 October 2024

The Unconfirmed minutes of the meeting of the University Court held on 2 October 2024 (paper Court (24) MINS 04) were APPROVED as an accurate record.

4.2 Minutes of the meeting held on 27 November 2024

The Unconfirmed minutes of the extraordinary meeting of the University Court held on 27 November 2024 (paper Court (24) MINS 05) to progress matters concerning the Loan Refinancing were APPROVED as an accurate record.

4.3 Matters arising

There were no matters arising from the minutes.

The Chair reported on various internal matters and engagements undertaken on behalf of the University as follows:

Senior Leadership Team Review: The Chair and Vice-Chair were pleased to meet with SUMS Consultants conducting the review of the structure and effectiveness of the Senior Leadership Team (SLT). The review had been commissioned as part of the wider SUMS facilitated work on the development of a target operating model. A draft report would be provided to the Principal in January 2025.

Innovation Hub ‘Topping Out Ceremony’: The Chair had participated in the recent ceremony to celebrate the completion of the roof and structure of the Edinburgh Innovation Hub. This marked an important milestone in the Hub development, which remained on track and on budget. The Chair extended her thanks and congratulations to the Chief Operations Officer and other colleagues leading the Hub project. She looked forward to future visits to the Hub and encouraged Court members to take up opportunities to visit, once it was possible to do so.

Principal’s Festive Event: The Principal had hosted a festive event for QMU supporters and donors at the Balmoral hotel, made possible by the support of the hotel. Representatives from QMU’s Graduate Association attended the event, and took the opportunity, through the Chair, to remind Court members of their eligibility to join the Association, details of which were available from the Association’s website. Julie Churchill advised that any queries and expressions of interest could be directed to her in her capacity of Vice-President of the Association. Amongst other benefits, members were eligible to book Madras Lodge in Gullane, East Lothian, for short-lets or other occasions.

Court Committees: The Chair and Vice-Chair had met with the Conveners of the Audit and Risk and Finance and Estates Committees to reflect on business progressed in 2024 and to discuss the programme of work for 2025. The Chair notified also that a recommendation that Patrick Bartlett join membership of Audit and Risk Committee would be considered later in the meeting (minute 17 refers).

Loan Refinancing: The Chair wished to place on record formally her thanks to the Interim Director of Finance and the Head of Financial Reporting and Analysis for their work in securing the Loan Refinancing, approved at the Extraordinary meeting of the Court (Minute 4.2 refers).

Court RECEIVED a detailed written report from the Principal and Vice-Chancellor (paper Court (24) 31). Introducing the report in the Principal’s absence, the Deputy Principal highlighted the following matters:

6.1 External context

The Scottish Government budget had been announced on 4 December 2024.

The allocation to the Scottish Funding Council (SFC) included an uplift of £12.9m to the Resource Budget, representing a 1.7% cash terms uplift. Importantly, while the SFC would remove in 2025-26 the 2,500 additional SQA places provided during Covid, the associated resource would be retained. The SFC Capital Budget had increased by 3.2% cash terms (0.8% in real terms), and the guidance to the SFC was that it should decide on prioritisation of this resource. The SFC’s decisions on indicative and final allocations to institutions would be announced later in Session 2024-25.

As set out further in the paper, the external financial context remained challenging. Universities Scotland had welcomed the increase in the amount that could be spent on each student place arising from the reallocation of £14m of existing spend from the Covid-era student places. When combined with new investment of £12.9 million, this could mean a 3.5% increase in the investment made in each Scottish student. However, the overall Resource Budget for universities represented a cut of 0.7% in real terms.

Whilst acknowledging that the short term-measures within the 2025-26 budget would ameliorate some of the immediate challenges, Universities Scotland, with support from other organisations, continued to lobby for a more sustainable and equitable funding model. It was hoped that a review of the needs and ambitions of the sector would inform a considered debate around longer-term funding for universities.

6.2 Student recruitment and student numbers

Recruitment for entry in Session 2024-25 had concluded largely, although there were several postgraduate programmes with students due to enter in January 2025. At this stage in the academic year, undergraduate Home and undergraduate International student numbers were on track to be met or exceeded. Undergraduate RUK/Taught postgraduate Home/RUK and postgraduate International numbers were not likely to be met, with achievement of targets in these areas influenced by external factors, including UK Government immigration policy and the cost-of-living crisis.

Whilst still early in the UCAS application cycle for 2025-26, data on the University’s application position was encouraging. Relative to competitor institutions, the position appeared healthy, with a 20% increase in the number of applications received compared to the same period last year. The UCAS data indicated that there were grounds for cautious optimism that SFC funded places could be filled in 2025-26, although that threshold would not be met for 2024-25. At this stage, the implications of under-recruitment were unknown, including in relation to potential claw back. It was hoped that the Scottish Funding Council would take a more longitudinal approach, given an apparent upward trend in sector applications this year.

6.3 Student Surveys

As reported previously to Court members, and through the Senate minutes, focused action was being taken on those programmes that had scored significantly below their benchmark and/or had a pattern of poor longitudinal results in the National Student Survey (NSS). Action plans had all been received, and Programme Leaders and Heads of Division had met with their respective Dean and the Deputy Principal to discuss and agree next steps. A similar approach was being followed for the externally run Postgraduate Taught Experience Survey (PTES), although QMU had not previously entered the PTES, meaning there was no longitudinal data for comparison.

On being invited to comment, both Deans provided additional context, highlighting in particular the importance of engaging directly with students to understand their perspectives, including how they had interpreted the survey questions, and to explain to students how their feedback was being addressed. The range of responses and issues identified meant that actions were being progressed at both institutional and programme level. Whilst some actions could be implemented quickly, there were others that would be addressed through upcoming quinquennial programme review. Institution-level actions were being progressed under the auspices of the Student Experience Committee.

The Deputy Principal was delighted to report that, in the externally run Postgraduate Research Experience Survey (PRES) 2024, QMU had been ranked first among all participating institutions for doctoral students' overall satisfaction of their research degree programme. In addition, QMU ranked second top for 'Progression', 'Responsibilities' and 'Support', and was in the top 25% of institutions on half of the survey measures overall. Further information on the PRES results was available in a press release on the QMU website. QMU would next join the Advance HE administered PRES and PTEs in 2026. In the meantime, internal student feedback mechanisms would be used to gather student views, including the QMU Student Survey (QSS), which was open to all undergraduate and taught postgraduate students, other than those eligible to join the NSS.

6.4 RKE and Innovation

As advised in the Principal’s written report, there had been a number of important areas of development and achievement related to Research, Knowledge Exchange (KE) and Innovation. These included ongoing work to develop a strategic relationship with the Digital Health Institute (DHI), one of the SFC funded Innovation Centres, and the launch of The Bright Red Triangle (BRT) Creative Studio at QMU (in collaboration with Edinburgh Napier University and Edinburgh College). The BRT was part of a broader programme of work at the University to support both student and graduate start-up activity and economic development in the region. Importantly, the partnership was

aligned closely with the Scottish Government’s National Innovation Strategy 2023-2033 and the Entrepreneurial Campus Blueprint.

Work was also ongoing in preparation for REF 2029. The annual review of QMU’s Research and KE Centres was driving the REF preparations, supported by the commitment to enhancing research and KE culture, including through QMU’s participation in the UK CEDARS survey to help develop a new QMU Research Culture KPI and Framework.

6.5 Staff engagement survey

The Staff engagement survey, conducted on behalf of QMU by survey provider, People Insights, had closed on 29 October 2024. Given the good response rate of 78%, it was possible to review survey results for thirty teams, as well as at an institutional level. The Senior Leadership Team (SLT) had received a presentation from People Insights which provided a high-level overview of the results and suggested priority areas for action. A communication had been issued to all staff providing an overview of the survey results, and advising on the next steps. The SLT would communicate the priority areas for action arising from the survey in January 2025, and thereafter, team sessions to review survey results and formulate actions would commence at a local level.

The survey results indicated that staff most valued the following aspects of working at QMU: people and teamwork; flexible and hybrid working; working with students; and values and culture. The most frequently suggested areas for enhancement related to the following: staffing and workload; pay and benefits; the physical environment and systems and processes. The majority of respondents agreed that the SLT provided a clear vision for the strategy of QMU, but the survey results suggested also that there was a lower level of satisfaction with communication regarding progress against strategic goals. The ‘belief in action’ score (ie belief that action would be taken as a result of the staff survey) was below average, and the SLT had undertaken to demonstrate and communicate positive action as a priority.

It was confirmed that the survey would run again, possibly once every two years, although this had not yet been confirmed. In the interim, pulse surveys would be issued and progress tracked using the People Insights online platform.

7.1 Strategic Report and Financial Statements

Court APPROVED the provisional Strategic Report and Financial Statements for the year ended 31 July 2024, including the going concern assessment (paper Court (24) 32).

The Strategic Report and Financial Statements had been considered previously at the joint meeting of the Finance and Estates and Audit and Risk Committees held on 10 December 2024. The Financial Statements comprised the consolidated results of the University and its subsidiary company, QMU Enterprises Limited. As a result of increased activity in the Edinburgh Innovation Park Joint Venture, the University had updated its accounting treatment, further information on this being provided in note 13 to the Financial Statements.

The Interim Director of Finance advised that the provisional outturn for the year under review was a surplus of £3.1m, a comprehensive income of £4.3m, and the strong cash position of £18.6 million at year end. Management had assessed the financial position of the University for the year ended 31 July 2024, as well as forecasts up to 31 July 2026 and determined, on the basis of this assessment, that the University remained a going concern.

Ernst & Young had provided a report for the joint FEC/ARC meeting on matters arising from its audit of the financial statements for the year ended 31 July 2024. Court members were advised that Ernst & Young’s audit work was ongoing, meaning that the Strategic Reports and Financial Statements remained subject to finalisation.

The Interim Director of Finance provided assurance that any final edits were likely to be minor, noting that the audit had been extremely thorough and that there was ongoing regular communication with Ernst &Young and with Chiene and Tait, advisers to the Joint Venture Company. He anticipated that any updates were likely to be to the narrative and that the Statements would remain unchanged.

The Strategic Report and Financial Statements were due to be submitted to the SFC by 20 December 2024. Noting this, the Court AUTHORISED the Chair to sign on its behalf the final version for submission. Prior to the Chair’s consideration and signature, the Report and Statements would be reviewed by the Chair of the Audit and Risk Committee, along with the confirmed report from Ernst & Young. In so reviewing, the Convener would seek guidance from the Interim Director of Finance and the Head of Financial Reporting and Analysis.

The Chair extended her thanks to all those contributing to the development of the Strategic Report and Financial Statements, which had been prepared during a period of important competing priorities, including the Loan Refinancing and implementation of the new finance system.

7.2 Letter of Representations

Court CONSIDERED the draft Letter of Representations to Ernst and Young (paper Court (24) 33).

The Letter remained subject to final editing, including additional content around the Joint Venture Company. The University Court agreed that the Convener of the Audit and Risk Committee would review the version for submission, and AUTHORISED the Chair to sign the agreed final version on behalf of the Court.

7.3 External Audit Report

Court NOTED the provisional external audit report from Ernst and Young for the period 2023-24 (paper Court (24) 34). Once available and following consideration by the Chair of the Audit and Risk Committee, the final report would be provided to Court members.

7.4 Internal Audit Report

Court NOTED the annual internal audit report from Henderson Loggie for the period 2023-24 (paper Court (24) 35).

In discussion, the Interim Director of Finance was invited to provide an update on action to address matters identified in the Budgetary Control audit. Commenting in particular on staffing within the Management Accounting Team, identified as a Grade 2 Weakness in the report, the Interim Director of Finance acknowledged the significant pressures and capacity issues identified in the report. Members were advised that, as part of a review of the structure of the Finance Team, additional staff had been contracted to increase capacity and complement the existing skillset. The launch of the new finance system and reconfiguration and strengthening of the team would allow for more timely and nuanced reporting to School and professional services budget holders.

7.5 Annual Report: Finance and Estates Committee

The Court NOTED the Annual Report of the Finance and Estates Committee (paper Court (24) 36).

7.6 Annual Report: Audit and Risk Committee

The Court NOTED the Annual Report of the Audit and Risk Committee (paper Court (24) 37).

Court RECEIVED a report on the financial position for the three months to 31 October 2024 (paper Court (24) 38).

Members were advised that the Q1 accounts were in line with budget, and that the forecast outturn for 2024-25 had been revised to a £0.9 million deficit. There was a strong cash balance of £16.8m at Q1, and loan balances had reduced in line with loan payments. The forecast summary included a tuition fees reduction of £0.6m due to movement on actual student numbers and an uplift in staff costs, partly due to changes to National Insurance. Forecast income from SFC grants and research had increased. Efforts were continuing to reduce the projected deficit.

Court RECEIVED a status update on the new finance system (paper Court (24) 39). The report had also been considered by the joint meeting of the Finance and Estates and Audit and Risk Committees on 10 December 2024.

The Interim Director of Finance reminded members of the adjusted ‘go live’ date of 14 January 2025, this having been communicated separately in writing. The revised timeline had been agreed to address an outstanding quality issue. Communications and

training were progressing well and in accordance with the project plan, and there was a high level of awareness and engagement across the University. A final decision on ‘go-live’ would be taken on 10 January 2025.

Court RECEIVED an update on progress with the Land Development Project (paper Court (24) 40).

Introducing the paper, the Chief Operations Officer highlighted the specific areas recorded below, and advised that the project remained on track, with no new risks identified since the previous Court meeting.

Local Development Plan: The next iteration of the Local Development Plan for East Lothian (LDP2) was in the early stages of preparation, with a final projected publication date of 2026. The University’s objectives for the LDP submission were to affirm that QMU remained a community asset at the centre of the wider development, to promote the delivery of the Edinburgh Innovation Park, and to promote a change of use for the campus in relation to the Commercial Zone. The campus change of use was in anticipation of the University progressing a planning application to include health and clinical facilities.

Innovation Hub: The Hub development was progressing to the programme agreed by the Joint Venture partners. There continued to be a good level of interest from prospective tenants, in line with the gateway policy, and awareness of the Hub was expected to increase with the intensification of marketing activities. Financial projections prepared by the JV accountants indicated that the Hub would be self-sustaining without the need for revenue support from either of the JV partners, following a small projected loss in the first year, based on prudent assumptions on occupancy. Functions to support the operation of the Hub were being coordinated though a mobilisation plan. The JV had indicated its intention to approach the University in relation to the provision of a range of professional services, such as facilities and property management. Governance arrangements continued to evolve as set out in the paper, and the Hub Director was expected to be appointed early in 2025.

Members welcomed the positive update. Various matters were covered in discussion, including the role and remit of the JV Directors and Boards, and shaping QMU’s interaction with the Hub. Given the complexity and evolution of the project, it was agreed to revisit the governance arrangements through the Finance and Estates Committee (FEC) and Court to ensure they remained robust and reflective of developments and identified risks. This would be useful for all members and especially so for recently appointed members.

Members were advised that a university Innovation Hub Advisory Group was being established, the membership of which would include innovation-active academic colleagues and key professional service leads. The Group would consider opportunities for collaboration between QMU, Hub occupants and stakeholders more broadly. This would ideally include consideration of opportunities for student projects and placements, developing and expanding current approaches to work-based learning. The first meeting of the Group was expected to take place early in 2025. In recognition of their pivotal role, the Hub Director would be a member, ex officio.

Lay members Steven Hendry and Elizabeth Porter confirmed that the project was progressing well. The location and design of the Innovation Hub were such that it was expected to significantly benefit the local community, whilst also providing unique opportunities for occupants and the University.

The Chair thanked Steven and Elizabeth for their ongoing support and valuable contributions to the project. Thanks were extended also to the Chief Operations Officer for his report and ongoing leadership of the project.

Court RECEIVED a progress report on Project EVOLVE from the Chief Operations Officer (paper Court (24) 41).

Members were reminded that the initial focus of EVOLVE was the Target Operating Model (TOM) approach to the review and redesign of a range of identified professional services processes and functions. As advised previously, the TOM ‘As Is’ exercise had concluded earlier in the year. A series of ‘To Be’ workshop sessions had followed in October 2024, focussing on areas of professional service delivery including student enrolment, student records, student administration and business infrastructure.

The workshops had been well attended by staff from across the functional areas, with overwhelmingly positive contributions made throughout and a recognised ‘can do’ attitude. Whilst the TOM was focused at this stage on professional services related processes and functions, several academic colleagues had contributed to the workshops to offer their perspective. The outputs from the workshops extended to over 60 separate detailed recommendations, varying in scale and importance.

In response to the ‘To Be’ outputs, and in consultation with SUMS, the SLT had agreed the development of a Route Map, setting out the detailed programme of work in response to the ‘To Be’ workshops, and a Project Execution Plan to assure appropriate management and governance. Consideration would be given to the resources necessary to support implementation and to co-ordinate workstreams. The Chief Operations Officer highlighted that recommendations would be prioritised, and that staff would be well supported to engage with the improvement programme. He advised also that recommendations would be implemented incrementally to avoid overburdening services at key points in the academic calendar. Notably, many of the recommendations were aligned with work that was already in progress or planned to generate efficiencies.

Whilst welcoming the update, members asked that further detail be provided to aid understanding of the specifics of the change programme and the financial implications. The Chief Operations Officer advised that it had been important consult meaningfully with colleagues and this had resulted in the ‘To Be’ phase extending over a longer period than originally planned. However, the project plan would now move forward, drawing on the workshop outputs.

In response to a query, members were reminded that a budget of £1.3m had been identified for Project Evolve in 2024-25. This allocation had been benchmarked against the costs identified by institutions of a similar size and scale. To date there had been no expenditure against the allocation, with any proposed expenditure being required to establish a formal business case and evidence alignment with the Future Business Model.

Members looked forward to receiving an update at the Court meeting in February, setting out clearly the next stages of the project and a further detailed review of the projected costs and benefits at the April Strategy Day.

Court RECEIVED the two reports to the Scottish Funding Council, which had been submitted under the provisions of the Outcomes Framework and Assurance Model (OFAM) for Colleges and Universities 2024-2031. The Chair extended thanks to the report authors and to other contributors to the reports and underpinning activities.

It was NOTED that the Self-Evaluation Report against the 2023-24 Outcome Agreement, would come to the following meeting of the Court, the deadline for submission having been extended to 31 January 2025

12.1 Self-Evaluation and Action Plan (SEAP)

As advised previously to the Court, the SEAP (paper Court (24) 42) had been introduced as a new reporting requirement under the Tertiary Quality Enhancement Framework (TQEF), replacing the former Annual Statement on Institution-led Review and some elements of the former Outcome Agreement reporting requirements. The 2023-24 SEAP had been submitted on 4 December 2024 with an accompanying Statement of Assurance from the Principal. The action plan within the SEAP set out planned institution-level enhancement activities for 2024-25 and beyond. The actions reflected priorities within the Institutional Strategy (2020-25) and aligned with the Student Experience Strategy and associated Delivery Plan.

The Chair welcomed the report, noting the many positive actions that had been progressed in the previous year and were planned for the coming period. Members were pleased to see the extent to which students had been involved as partners in the activities covered in the SEAP and to learn that discussion was underway with the Students’ Union regarding opportunities for students to contribute more fully to future SEAP submissions, the timeline for this year’s submission having presented challenges for meaningful engagement. Some suggestions were put forward for developing the SEAP format in future years, including the addition of student numbers for the period covered by the report and a summary of key messages. Consideration would be given to these points as part of a review of the inter-relationship of the SEAP with other reports to the Court, including the Performance Report.

12.2 Research Assurance and Accountability Return (RAAR)

The Research Assurance and Accountability Return (RAAR) (paper Court (24) 43) replaced narrative previously included in the former Outcome Agreement concerning the University’s use of the Scottish Funding Council’s Research Excellence Grant (REG) and Research Postgraduate Grant (RPG). The RAAR had been submitted on 31 October 2024, with an accompanying Statement of Assurance from the Principal. The Deputy Principal drew to members’ attention the REG and RPG case studies, which would contribute to the Funding Council’s evidence on the importance of the grants for funding. The RPG case studies were a welcome addition in this reporting round.

Court NOTED a report on formal complaints dealt with under the University’s Model Complaints Handling procedure during Session 2023-24 (paper Court (24) 44).

Court NOTED a report on the following areas of compliance activity from 1 April 2024 to 31 December 2024 (paper Court (24) 45):

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.

15.1 Minutes of the meeting held on 10 December 2024

Court RECEIVED the Unconfirmed minutes of the joint meeting of the Finance and Estates Committee, and the Audit and Risk Committee held on 10 December 2024 (paper AUDIT (24) MINS 04). Matters reported in the minutes had been discussed or brought to members’ attention earlier in the Court meeting. One additional item was brought to Court members’ attention as follows:

Procurement Approval (minute 8 refers)

Court received a recommendation from the Finance and Estates Committee in the matter of a tender for the delivery of Student Recruitment Advertising. The tender had come forward for consideration on the basis that, over the period of the contract, the value of the tender exceeded the delegated authority of the Principal. A summary of the tender framework terms and conditions was provided as an Appendix to the minutes.

The Court APPROVED the recommendation.

15.2 Treasury Policy

The Court RECEIVED a draft Treasury Policy (paper Court (24) 46) discussion of which was noted in the Committee minutes. Court members welcomed the policy development, noting that further work would be undertaken that reflected written comments from the Convener of the Finance and Estates Committee and the Convener of the Audit and Risk Committee. The Court delegated authority to the Finance and Estates Committee and Audit and Risk Committees to approve the Policy, on the basis that much of the content was not new, the exception being the Procedure for Utilisation of the Revolving Credit Facility.

16.1 Minutes of the meeting held on 16 October 2024

Court RECEIVED the Confirmed minutes of the meeting of the Senate held on 16 October 2024 (paper SEN (24) MINS 04). There were no matters brought to members’ attention.

16.2 Concordat on Research Integrity

Court APPROVED the University’s Annual Statement on Compliance with the Concordat on Research Integrity (paper Court (24) 47).

16.3 Concordat to Support the Career Development of Researchers

Court APPROVED the Annual Report for the Concordat to Support the Career Development of Researchers (paper Court (24) 47).

Court RECEIVED the unconfirmed minutes of the Nominations Committee meeting held on 25 October 2024 (paper NOM (24) MINS 03). The following matters were brought to members’ attention:

17.1 Appointment to a Standing Committee of the Court (minute 6 refers)

Court APPROVED the following recommendation:

Patrick Bartlett to be appointed to membership of the Audit and Risk Committee.

17.2 Chancellor of the University (minute 7.2 refers)

The Committee had considered a long list of nominations for the role of Chancellor arising from communications to students, staff and Court members. After due consideration, a ranked short list had been compiled comprising of seven individuals whom the Nominations Committee considered could fulfil the published responsibilities and possessed the necessary attributes and qualities required of the Chancellor. The list had been circulated to Court members in advance of approaches being made to those listed. The Secretary would provide an update to the February Court meeting on progress with the appointment.

COURT RECEIVED the unconfirmed minutes of the meeting of the Health and Safety Committee held on 11 November 2024 (paper HSC (24) MINS 03). There were no matters brought to members’ attention.

The University Court would meet as follows in Academic Session 2024-25:

Wednesday, 19 February 2025 at 3.00pm in the Boardroom

Wednesday, 16 April 2025 – Strategy Day – all day event

Wednesday, 18 June 2025 at 3.00pm in the Boardroom

The AGM of the company would take place at 2.45 pm on 19 February 2024.

The Annual Stakeholder Event would be held on 16 April 2024 between 5.00pm and 7.00pm.