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48 City of Glasgow College Annual Report & Accounts 2019-20

Financial Statements

Finance and Physical Resources Committee

The Finance and Physical Resources Committee of the

Board undertakes the Board of Management's approved

delegation in financial matters, and specifically the duties

of oversight assigned to the Committee on the Financial

Regulations. The Committee is also expected to provide

the Board with advice on significant financial matters, and to

review, approve, and monitor financial plans, strategies and

plans. The impact of significant proposals and strategies

are reviewed from a financial perspective, and any resultant

issues, including strategic risk, communicated to the Board.

Any recommendations emerging from this oversight are

also made via the Committee to the Board of Management.

The Committee also holds responsibility for the oversight

of physical resources, including the College estates, and of

Health and Safety, for which it receives regular reports (see

Health and Safety below).

Covid-19 Impact

Following the outbreak of Covid-19, and the consequent

financial impacts, the financial plan for 1 August 2019 to

31 July 2020 was reviewed continuously. The significant

negative impact for the College, particularly due to the high

level of non-SFC income via commercial and international

activity, unusual in the sector, was recognised by the

Committee.

An updated forecast reflecting the impact of the Covid-19

crisis was made during April 2020 which forecast a deficit

of £4.011k. A revised forecast was produced during May,

which projected a smaller deficit of £1.441k to 31 July

2020. This improved situation reflected the following: a

higher proportion of courses being taught online which has

increased the projected fee income; the decision to furlough

staff and claim funds via the government Coronavirus

Job Retention Scheme; and additional agreement from

the SFC to pay their element of ESF in full. The final

deficit figure of just over £360k for 2019-20 represents a

successful management of the year's finances under the

circumstances.

Long Term Financial Planning

The Committee received an updated 5-year financial

forecast for the College, which illustrates projections

based upon sets of optimistic, realistic and pessimistic

assumptions. The implications of all assumptions were

noted and the need to continuously monitor the ongoing

financial challenges and consider efficiency savings where

necessary were highlighted. However, all long-term financial

planning was superseded by the Covid-19 crisis, and all

finance-related strategic risks were re-evaluated in the

context of the crisis.

Financial Regulations

The Committee reviewed and approved the revised

Financial Regulations which included improved protocols

and controls, with other elements updated. Revisions

covered the areas of Budget Preparation and Monitoring,

Fraud Prevention, Scheme of Delegation/Financial

Authorities, Payment of Invoices/Purchase Procedure, and

Assets/Stocks.

Business Continuity

In 2019, a full review and redevelopment of the College's

Business Continuity strategy was undertaken, with

assistance from specialist consultants Ashton Resilience.

In the course of this review, a new Business Continuity

Policy was recommended, to provide a clear, concise policy

framework for all business continuity management at City of

Glasgow College. The Committee approved the new Policy

in October 2019.

The consultant from Ashton attended a meeting of FPRC in

February 2020 to outline the process of development of the

Business Recovery Plans for all Faculties and other areas

of College activity. In February 2020 a scenario exercise

was planned for April 2010. However, this exercise was

overtaken by events, for which the BCP planning clearly

prepared the College, assisting resilience and agility of

response to the Covid-19 crisis.

ICT Delivery

The Committee were provided with reports on the

development and operational performance of ICT delivery.

In particular, the Committee welcomed the achievement

of the Cyberessentials Plus standard, which had been a

priority from 2018-19.

Health and Safety

The Committee reviewed and approved the Health and

Safety Quarterly Reports, and noted the activities of the

reinvigorated Health and Safety Committee, under the

leadership of the Depute Principal. The following points

were highlighted:

• The delivery of relevant statutory training provision

is ongoing with particular emphasis on IOSH 'Managing

Safely' training being provided for senior staff.

College Strategic Priority 7:

To maintain our long-term financial stability.

College Strategic Priority 8:

To secure diversity of income and

sustainable development.

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