Transparency data

SLC Board meeting minutes February 2024

Published 24 April 2024

1. Attendees

1.1 Present

• Peter Lauener (PL) - Chair

• Chris Larmer (CL) - Chief Executive Officer

• Natasha Toothill (NT) - Non-Executive Director

• Gary Page (GP) - Non-Executive Director

• Charlotte Moar (CM)- Non-Executive Director

• Stephen Tetlow (ST) - Non-Executive Director

• David Wallace (DW) - Deputy Chief Executive Officer

• Audrey McColl (AMC) - CFO

• Gary Womersley (GW) - Company Secretary

1.2 Also in attendance

• Anne Rimmer (AR) - DfE (by videoconference)

• Evelyn Aitken (EA) – Scottish Government (by videoconference)

• Chris Williams (CW) - Welsh Government (by videoconference)

• Jason Dunham (JD) – CIO

• Jackie Currie (JC) – Executive Director, Business Operations

• David Beattie (DB) – Executive Director, Change, Data and Repayments

• Derek Ross (DR) - Executive Director, HE and FE Reform

• Gillian Brydie (GB) - Executive Director, People

• Helen Bogan (HB) – Head of Governance and Planning

• Stuart Brydson (SB) - Board Secretary (Secretariat)

• Adam Treslove (AT) - Head of Corporate Affairs (for Item 6.1 only) (by videoconference)

• Nicholas McDermott (NMC) – Chief of Staff (for item 5.1 only)

• Margaret McMullen (MMC) – Director of Finance (for item 5.2 only) (by videoconference)

• Paula McEvoy (PMC) – Head of Repayment Strategy and Insight (for item 7.2 only) (by videoconference)

2. Apologies

• Laura Irvine (NI)

• Jonny O’Callaghan (NI)

• Patrick Curry (DfE)

• Sinead Gallagher (Welsh Government)

3. FOI Notice

Where asterisks (*) appear, these sections have been excluded from the minutes before placing on the website as the subject under discussion falls within one or more of the exemptions contained in Part II of the Freedom of Information Act 2000 and can be reasonably withheld.        

4. Chairman’s Opening Remarks / Directors’ Matters / Declarations of Interest

PL welcomed everyone to the meeting.

Apologies were noted from, PC, SG, JOC, and LI.

GP noted that he had accepted a Non-Executive Director role with the Scottish National Investment Bank for four years commencing 1 February 2024.

ST explained that he had relinquished a Non-Executive Directorship at the Planning Inspectorate on 30 September 2023 and had become a Non-Executive Director with the DVLA on 1 January 2024.

5. Chair Update

5.1 Update from the Chair on relevant matters

PL noted that the current Non-Executive Director recruitment process was going well and that there had been a number of excellent candidates for all the vacancies to be filled.

In terms of recent and upcoming activity, PL highlighted that the Biannual Shareholder Meeting was due to take place on 7 March and that his report for the meeting would also be shared with the Board.

PL would attend the DfE meeting of Arm’s Length Body Chairs on 8 March.  He had taken part in an internal DfE podcast, which was designed to give a historical perspective on developments in the education and training system and he had also filmed a short video for the 2023-24 SLC Star Awards, which were due to take place on 11 March.  PL added that he was hoping to attend the 2025 Star Awards in person. 

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PL also mentioned that Victoria Bowman, Director of Policy, Strategy and Governance would become the Scottish Government assessor on the SLC Board with effect from the 28 March meeting.  EA would continue to attend the sub-committees of the Board.

6. Strategic items

6.1 CEO Report

NMC and AT joined the meeting.

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Public Accounts Committee (PAC)

CL explained that SLC, along with DfE and the OfS, had welcomed the NAO Report and were working together to address areas for improvement in the funding system, as well as to ensure that responsibilities across the various parties were understood.  The NAO Report built on early work which SLC had initiated, using SLC analysis and expertise to highlight areas of concern for the bodies that have the power to take action.  CL was pleased that he had been able, at the PAC, to demonstrate the work that SLC had been leading on and answer the key questions from the Committee.  CL’s key takeaways from the session included the value of working shoulder to shoulder with DfE and OfS, and that it would be important for ELT to receive a regular update on fraud and error via the quarterly Executive Risk Forum.

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Pay Case

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CL explained that SLC would continue to push for a decision on the Pay Case to enable implementation in March.

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PL noted the Board’s concern, underlining the criticality of securing the Pay Case.

Customer

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DSA

CL highlighted that the interim service for DSA had been successfully launched on 26 February.  The SLC team had pulled together and had taken action to ensure that customers received an improved service and that the sector was provided with clarity on arrangements.  Two information sessions for external stakeholders had been held on 6 February with around 850 colleagues from the sector attending. 

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CL explained that Capita and Study Tech were now responsible for the provision of needs assessments, assistive technology equipment, and assistive technology training and aftercare.  Following the successful launch, customers were moving through the new process smoothly. 

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CPD

The Board considered and discussed the Corporate Performance Dashboard.

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Colleague

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CISO

CL announced that an internal candidate, Brian Wright, had been promoted to become the new Chief Information Security Officer and would start on 1 March. 

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In summary PL noted that SLC was managing substantial headwinds and challenges and that the Board took assurance that they were being dealt with appropriately. 

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DR, NMC and AT left the meeting.

6.2 CFO Report

MMC joined the meeting.

AMC introduced the CFO report noting that there had been an improvement in the forecast year end outturn

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AMC highlighted that the FY24-25 budget setting star chamber process, based on ZBB, was almost complete, a summary would be presented to the ELT on 11 March and would include the key spending choices required to remain within a balanced budget. AMC noted that the start chamber process had been valuable and would be iterative.  It had surfaced real costs, which created an important baseline.

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In summary PL noted that the Board took assurance that the in year and future year budget processes were being managed well.  Whilst there was more work to do on FY2024-25, it was clear that the ZBB process had engendered a new and beneficial way of thinking.  PL acknowledged that it would take more than one month to finalise the budget but that the March Board would receive a progress update.

MMC left the meeting

6.3 Business Planning

Thematic Annual Business Plan and APRA Measures

CL introduced the Thematic Annual Business Plan, noting his thanks to ST and the shareholders for their valuable input to the APRA measures.  CL explained that FY2024-25 was the third year of the current three year corporate strategy and that there would a continued focus on colleague, customer and shareholder deliverables.

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7. Reports from Committees

7.1 ARC Chair Report

CM introduced the ARC Chair Report noting that there had been good progress made on the FY2023-24 Internal Audit Plan, noting the revised approach to year-end testing and that, overall, audit activity provided assurance on SLC’s controls and governance arrangements.  The draft plan for FY2024-25 had also been discussed, with the final plan coming to March ARC for approval.  ARC had taken assurance on the prioritisation within the plan.

CM explained that SLC and the NAO were on track for a pre recess submission of the FY2023-24 Annual Report and Accounts.

CM highlighted the significant improvement in the Commercial function and that ARC had regular oversight of the improvements being delivered.  CM thanked the Commercial Director and her team for their valuable efforts. 

The Board took assurance from the ARC Chair Report.

7.2 TEOC Chair Report

ST introduced the TOC Chair Report noting the Committee had updated its name, ToR and membership with CM joining her first meeting.  TOC had reviewed two items – the resetting of the technology Strategy and LLE. 

On the Technology Strategy, the Committee had discussed a broad range of issues including sourcing and procurement strategy, culture and the impact of delivering significant change, delivering better outcomes, appropriate sequencing and the significance of savings that could be achieved with investment.  The Committee asked that the CIO bring a further fleshed out model to the next TOC, with greater clarity on costed investment priorities, more insights on risk and mitigation and clarity on the operating model, especially in respect of sourcing. 

ST explained that a range of LLE issues had been covered at the meeting, including the timetable, levels of risk, and SLC capacity to support change of this scale.  TOC agreed to feedback to the Board that the revised approach to LLE required a new, forth platform and that this should be a transitional and not enduring state.  TOC welcomed the planned IPA review but did reflect that the risks to delivering LLE were substantial and that it was imperative risks were addressed.  

PL noted that Joanna Davinson, the former Government Chief Digital Officer was now a member of TOC.

The Board took assurance from the TOC Chair Report.

8. Directors’ Reports

8.1 Application Cycle – Review and Forward Look

JC introduced the Application Cycle Review and Forward Look noting that by the close of 2023-24 SLC will have delivered an above target performance with a real-terms budget reduction due to having had to absorb inflation. 

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JC outlined that the approach for AY24-25 cycle was based on ZBB and a collaborative effort across SLC as reduced demand, automation and robotics all impacted the academic cycle. 

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PL thanks JC for a good primer paper ahead of the final model being formulated.  He noted that the Board had received useful new information and there had been transparency on the trade-offs that ELT was having to make. 

8.2 Repayments Biannual Report

PMC introduced the Repayments Biannual Report noting that the report covered the in-year position, year-end forecast and future forecast position. 

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PMC concluded by noting the resilience of the Repayments teams who continued to seek better outcomes.

PL noted Board’s recognition and appreciation of the work done by Repayments colleagues to achieve more with less, to realise benefits and to achieve on target customer satisfaction which had been a major focus of the Board for the last three years.  PL also noted the Board’s support for the Invest to Save work which sought to increase the return to the taxpayer. 

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PL concluded the item by reiterating the Board’s recognition and appreciation of the work done by the Repayments teams. 

PMC left the meeting.

9. Governance

9.1 Minutes of meeting held on 30 November and 18 January meetings

The minutes of the 30 November and 18 January meetings were approved as an accurate record

9.2 Matters arising from previous meetings

The matters arising document was approved as accurate.

10. Any other business

PL thanked EA for her contribution to recent the Board discussions.

10.1 Date of Next Meeting

The next formal meeting was confirmed as being at 10.00 am on Thursday 28 March 2024 in the Glasgow Boardroom or by Teams.

There being no other business the meeting ended at 1.25 pm.