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Annual Report of the Council for 1998-99

Introduction

1. In presenting this Report to the Regent House the Council are pleased to record that 1998-99 has seen continued success for Cambridge. Whether measured by the achievements of individual members of staff in elections to learned societies or the award of prizes and medals; by the performance of Faculties and Departments in Teaching Quality Assessments and in competitive funding; by its reputation with employers and other industrial partners and the achievements of its graduates; or by the more ephemeral league-tables published by some sections of the national media, Cambridge has consistently demonstrated that it is in the front rank of the universities in Europe and world-wide. The Council are pleased to acknowledge that these achievements are based on the individual creativity, support, and commitment shown to the the University by all its staff and students. If the following paragraphs inevitably are concerned with some of the more difficult issues that the University still faces, it is proper for the Council to begin their Report by recognizing what has been achieved.

2. In their Annual Report for 1997-98 the Council referred to further acceleration in the pace of change in higher education nationally, and further broadening in the range of issues concerned; they also noted the potential impact of increasingly bureaucratic and intrusive regulatory arrangements, albeit with a proper increase in transparency and accountability, that were being introduced into higher education. Those trends have continued in 1998-99, a year which has seen further proposals from the Quality Assurance Agency (QAA) for assessment and audit and the publication by QAA of a consultation paper on the nomenclature of postgraduate qualifications, which inter alia raised questions about the ancient universities' usage of the M.A. Degree. The Council, and the General Board, continue to be concerned to make sure that the open and democratic structures on which the University's constitution is based and which they view as essential to the University's continuing academic success are preserved whilst, at the same time, ensuring that Cambridge can respond in a timely manner to the changing environment.

3. In the following paragraphs the Council report on some of the main themes of their work. This Report does not set out to be, indeed cannot be, a comprehensive review of all the matters for which Council are responsible.

The College fee

4. The discussions with the DfEE and with the HEFCE, on which the Council reported last year, were concluded in 1998-99. As a result the HEFCE grant to the University announced in March 1999 included for the first time funding in respect of the previous College fee income. Arrangements were agreed between the Council and the Colleges' Committee for these funds to be passed to the Colleges on a per capita student basis. In return for these funds the Colleges have agreed to provide teaching, direction of studies, and other services, thus maintaining the essential collegiate nature of the University. The University and the Colleges have also agreed to address a range of issues over the next few years, including the distribution of University teaching officers in individual subjects across the Colleges. The effective per capita College fee which the Colleges will receive in 1999-2000 shows an approximate 4% reduction in cash terms over 1998-99. Thereafter, for the next nine years, the HEFCE plans for equal reductions annually until a total reduction of just over 20% is achieved. Part of the agreement with the Government was for the Colleges to increase the redistribution of resources through the Colleges Fund. As a result amendments to Statute G, II were agreed by the University and are currently before the Privy Council.

Finance

5. The Abstract of Accounts for the year 1998-99 will be published separately.

6. The voluntary Early Retirement Scheme proposed in the Allocations Report for 1998-99 was completed and contributed to the successful achievement of the savings requirement of £2.5m a year. Faculties and Departments made up the balance of their individual savings targets through additional appropriations in aid, income generation, and by reductions in non-pay expenditure. The Scheme also revealed significant interest in early retirement across the University from individuals occupying posts which would need to be filled. The Council and the General Board therefore agreed to a second Scheme which operated without a savings requirement. A total of 156 staff (47 academic, 32 academic-related, and 77 assistant) took early retirement at 31 July 1999 under either the initial or extended schemes at a capital cost of £10.1m which the Council agreed should be charged as expenditure in 1998-99. The Council do not expect to operate a further scheme in the short term but note that the effect of the two schemes has been both to contribute significantly to essential financial savings and also to facilitate positive restructuring in many Faculties and Departments. The Council are aware that a consequence of some of the permitted retirements has been an unavoidable increase in the short-term work-load of some of the staff remaining in post during this restructuring.

Governance

7. All large organizations, public or private, whatever the nature of their business are coming under increasing scrutiny as to their Governance arrangements, i.e. the way they handle their corporate business, set their strategy and policy, and fulfil their purpose. The Committee on Standards in Public Life has laid down principles to which public bodies (or bodies receiving significant public funds such as the University) are expected to adhere. During the year the Council have considered how Cambridge's distinctive style of governance might usefully be adapted to meet these principles. The Council expect to publish a Report early in 1999-2000 and to invite the Regent House to give initial consideration to a range of issues.

8. The Council have also given further consideration to the conduct of their own business, and that of the other central bodies. A monthly cycle of the meetings of the Council, the General Board, and the Finance Committee has been introduced and the Council agenda has been restructured with time given at each meeting of the Council for the consideration of an item of strategic, or long-term interest. It is still too early to evaluate these changes but, together with the changes introduced in the Planning Committee structure in 1997-98, the Council believe that they will help the central bodies to focus their attention on the strategic direction of the University and increasingly to delegate decisions on day-to-day matters to officers or committees.

9. As part of these considerations, and as part of the further devolution of financial management, attention has been focused on the role of the Head of Institution and the associated need for clarification of the University's internal line-management arrangements.

Institutions under the supervision of the Council

10. The Council have approved arrangements for the periodic review of individual institutions under their supervision. Those arrangements have begun to operate with the first reviews in progress in Occupational Health and the Cambridge University Students Union and the Graduate Union.

11. Several Council institutions separately publish full Annual Reports. The following summaries are intended to convey the main activities of those institutions in the year under review:

Careers Service

12. The Careers Service experienced another very busy year with Cambridge graduates much in demand. The level of those still seeking employment remained very low (3% for undergraduates and 1% for postgraduates). The number of employers making presentations and of new employers approaching the Service were both at record levels. The Service continued to inform the University about employment-related issues, including helping to prepare a report to the General Board on transferable skills. It also expanded its activities with Faculties and Departments. The use of IT, and in particular of the Service's website, has been a major area of development. The average weekly figure for 'hits' on the website is around 8,000, with a peak of just over 14,000 during the early Lent Term 1999.

Continuing Education

13. The publication in February 1998 of 'The Learning Age - a Renaissance for a New Britain', a Green Paper issued by the DfEE, placed the question of lifelong learning and continuing education higher on the national policy agenda than at any time for some decades. The Board of Continuing Education continued to build on its established commitment to lifelong learning through its four major programmes of Lifelong Learning in the Community - a Programme for the Public, Lifelong Learning World-wide - the International Programme, Lifelong Learning for the Workplace - the Programme for Industry, and Lifelong Learning for the Workplace - Legal and Professional Studies.

14. Overall, some 738 courses attracted 13,300 students and Madingley Hall itself achieved the highest level of occupancy so far, exceeding 14,000 bed-nights. The Board also contributed to the significant statement issued by the University in response to Ministerial interest in a booklet entitled 'The Learning Curve - Learning Throughout Life', which describes the range of ways in which the University provides lifelong learning. Its publication was launched in the House of Commons by Anne Campbell, MP, and the Vice-Chancellor as part of the University's strategy to widen access and emphasize its commitment to lifelong learning.

UCLES

15. The year 1998-99 has seen UCLES rise to a series of unprecedented challenges. Foremost amongst these has been the rationalization of its operations, resulting in the formation of three outwards-facing business streams. This restructuring has lent a sharp focus and accountability to each of UCLES' three trading arms, in its English as a foreign language, international, and domestic markets. UCLES is now, therefore, admirably equipped to expand its business worldwide in the provision of a wide range of examination services and vocational qualifications, with higher standards of service, and in the face of greater competition.

16. OCR is the name under which all UCLES Group qualifications are marketed in the UK, replacing separate brands such as MEG (for GCSE), OCEAC (for A-level) and RSAEB (for vocational qualifications).

17. The year 1998-99 also demonstrated the importance attached by UCLES to leading the field in IT developments, both for internal administrative processes and for new approaches to testing. UCLES has continued to refine and extend the scope of its new examinations processing system, the implementation of which during the spring and summer of 1998 represented the culmination of many years of investment and development effort. At the same time, increasing attention is being given to the use of alternative technologies, such as the Internet, for communicating with examination centres, candidates, and teachers, as well as to the application of computers to new interactive forms of assessment.

18. The wide-ranging changes to UCLES' infrastructure, combined with its significant investment in new technologies, have led to a deficit in the operating account for 1998-99. This situation will continue into 1999-2000. During the year 2000-01, however, it is expected that the benefits of UCLES' investment programmes will begin to be realized, with a return to operating surplus. UCLES can, therefore, on the eve of the twenty-first century, look forward to competing successfully throughout the world as one of the leading international assessment agencies, with a strong reputation for promoting the academic excellence associated with the University and with sound finances.

Other institutions

19. During the year the Council also agreed to undertake a small-scale review of the management arrangements of the University Centre, and a major review of the place of lifelong learning in the University's mission, and the organizational arrangements needed to deliver that mission. These reviews are in progress.

Audit

20. The Annual Report of the Audit Committee was presented to the Council at its February 1999 meeting. The Committee reported that in its opinion, based on the reports of the internal and external auditors, the University's systems of internal control were operating satisfactorily, subject to entrenched weaknesses in management information systems, and continuing deficiencies in the research grant debt collection system. (Note: Since the Committee reported, the Planning and Resources Committee have authorized the procurement of a major new financial reporting system that is currently being implemented. The Finance Committee now receives regular reports on research grant debt collection.) The Audit Committee also reported its opinion that, on the basis of the information available to it, the University had satisfactory arrangements for promoting economy, efficiency, and effectiveness. During the year and following the resignation of the Senior Internal Auditor on her appointment to another post outside Cambridge, the Council, on the recommendation of the Audit Committee, approved arrangements for outsourcing the Internal Audit function. Robson Rhodes were appointed Internal Auditors with effect from 1 May 1999 after an interim service had been supplied by KPMG whilst the appointment process was proceeding. Also during the year the Audit Committee was strengthened by the appointment of two further members of the Council in line with changed recommendations by the HEFCE.

Administrative arrangements

21. Reference has already been made to the need for appropriate organizational and administrative arrangements to support the University's continued academic excellence. During the year the Council approved the appointment on an unestablished basis of Directors of Finance (replacing the office of Deputy Treasurer vacated by retirement) and of Personnel, and has agreed to proposals for two further unestablished posts, currently being advertised, the Director of Health and Safety, and the Director of Research Services. The Council is confident that these new appointments, and the associated administrative restructuring, will continue the development of improved services to Faculties and Departments. Details of the new appointments were published to the University in the Michaelmas Term 1999.

Health and safety

22. During the year the Health and Safety Executive and the Environment Agency initiated prosecutions on eight counts against the University following the loss of a small amount of radio-isotope in the Department of Biochemistry. (Note: After the end of the year under review, the University was given a conditional discharge on five of the charges to which it had pleaded guilty, with costs awarded against it; the three other charges, to which not guilty pleas had been entered, were ordered to lie on the file. These are very serious matters and the Council were pleased to hear that the changes which had been put in place by the General Board after the incident had been recognized by the Court in mitigation. The Annual Report of the General Board covers these matters in more detail.)

Estates and buildings

23. The University's outline estates needs for the next fifteen years were considered by the Planning and Resources Committee and presented in the Regional Planning Guidance Review, the results of which include proposals for a substantial increase in both housing and provision for buildings for academic and related purposes. The Guidance will lead shortly to the publication by the Government of further proposals to which the University will be invited to respond. The Council intend to seek the views of the Regent House on these matters by way of a Report in 1999-2000. Meanwhile, outline planning permission was obtained (subject to some detailed infrastructural agreements) for the West Cambridge development, the application having been initially made in September 1997. This is an important milestone for the University; with the capacity of about ¼ million square metres of built space (at a cost of some £½ bn) about a third of the University will eventually be on the West Cambridge sites. Over 200 residential units (principally for members of the University) will be built, along with shops, childcare provision, catering, and conference facilities. Work has started on support infrastructure, and on the design of some of the first buildings planned for the site. A film is being made of the West Cambridge story for archival, public relations, and promotional purposes; themes will include design excellence, for the users of the buildings especially, and sustainability.

24. During the year there has begun a comprehensive and detailed review of the estate - the amount and quality of the space the University has - in relation to what it needs now and for the foreseeable future. This has involved assessment of how best to assess academic, administrative, and support requirements, and achieve appropriate cost-effectiveness in meeting these.

25. The pace of building construction has increased. Significant progress has been made on Phase I of the £55m project for Mathematics at Clarkson Road (with frequently updated photographs on the Internet). In the Department of Chemistry, a major refurbishment of the South Wing, funded through the HEFCE laboratory initiative, and an adjacent new Molecular Sciences Informatics Centre set up in collaboration with Unilever, are well underway. A very large-scale programme of refurbishment and upgrading that will take several years to complete is now at the stage of design and tendering; at the University Library two more extension and refurbishment projects (worth some £12m) have been designed and contracted for. On the Sidgwick Site there has been an overall review of space needs and the potential for further building; the year saw the redesign and the start of a £6.5m modernization and refurbishment of the Raised Faculty Building. Meanwhile, much of a very exciting new Divinity Building (designed by Edward Cullinan, as is the Maths project) has emerged from the ground beside the History Faculty Building (on which maintenance work has continued). Modifications were made to the new Law Faculty Building to make it more attractive to those studying and working in it. At the Addenbrooke's Hospital Site, the major refit (some 2,700 m2) of the Central Biomedical Services was completed, and the MRC-managed Island Site II new building began. On the Downing Site the new refurbishment works for the Combined Facility for the Departments of Experimental Psychology, Physiology, and Biochemistry were largely completed. At a cost of £6m there were refurbishments in the Biochemistry Teaching Laboratories, the Clinical Veterinary post-mortem room, and the Departments of Chemical Engineering, Genetics, and Zoology. In total, by the end of the year, some £192m of buildings were under design or construction, apart from design work in connection with bids made under the Joint Infrastructure Fund announced as part of the Government's Comprehensive Spending Review of August 1998.

26. Extensive upgrading and maintenance of other buildings and the care of gardens have kept pace with the growing estate. Emphasis on whole-life performance and environmental care increased over the year.

27. Several committees dealing with different aspects of estate matters have been consolidated into one 'Buildings Sub-Committee' which is taking a longer-term view of buildings from planning and design through construction to the whole-life maintenance of the buildings. Some administrative re-organization has been made; all maintenance works are now under one Assistant Director of EMBS, and the Accounting and Facilities Management function has been transferred from the Finance Division to EMBS.

Staff

28. Towards the end of the year the Independent Review Committee recommended in the Dearing Report and chaired by Sir Michael Bett published its Report. The Report covered a wide range of issues including staff training and development, and appraisal, as well as the expected sections on salaries and salary structures. The Council and the General Board will be examining the Report during 1999-2000, taking account of the national response.

29. During the year the Personnel Officer left Cambridge for a post with the British Council. Following a review of the arrangements in the Assistant Staff Office and the Work and Stipends Section of the General Board Division, the Council concluded that issues of personnel policy and practice for all staff groups could be best considered in the future through a single Personnel Committee supported by an integrated Personnel Division in the University Offices. The Council approved the appointment of Mr Peter Deer, Director of Personnel at University College London, as Director of Personnel from 1 November 1999, and have asked him to prepare detailed proposals for the new Committee and to integrate the operations of the currently separate Offices.

30. Work has continued through the year on the development of a job evaluation scheme based on an extensive pilot project conducted across the University. It is expected that final proposals will be considered during 1999-2000.

Student matters

31. The Student Matters Committee of the Council and the General Board have prepared a Student Charter, currently the subject of consultation within the University. After the consultation process has been completed the Charter is expected to be issued early in 2000.

32. The Council are keeping under review the procedures for dealing with student complaints which currently operate through the Colleges. A committee, chaired by the Principal of Newnham, is working on arrangements for the review of undergraduate examination results. Arrangements already exist for the review of postgraduate examination results. The Council will read with interest the guidance on these matters to be issued in the academical year 1999-2000 by the Quality Assurance Agency. The Student Charter refers to channels for the resolution of problems and the Council has other measures under consideration.

33. The Council asked the Joint Consultative Committee on Admissions to prepare the University's initial participation strategy for submission to the HEFCE in September 1999. This document brings together the activities of the University and the Colleges in matters of access and participation, and refers to our strategy of co-operation with other appropriate organizations including other educational organizations and the Government. This is an area of great importance for Cambridge and one which is under policy and practice review by the Government.

External relations and development

34. During 1998-99 the total of philanthropic gifts to Cambridge in the last decade passed the target of £250m set in 1989. Fundraising continues to build new partnerships with benefactors large and small, underpinning the University's future expansion and success. The University is immeasurably helped in these matters by the Cambridge Foundation and the American Friends of Cambridge University, to whose volunteer Directors the Council express their thanks. Contributions towards the University's development plans embrace the invaluable support of alumni for individual building projects and the annual giving programme, and the support of major overseas benefactors attracted to Cambridge by its outstanding reputation for academic excellence.

35. There is space in this Report for only a brief overview of the University's public relations activities. A news service has been launched on the University's website and the Reporter is now fully available on the internet with on-line searching. Cambridge National Science Week is now one of the flagship events for the public understanding of science in the UK and the 1999 week attracted some 23,000 visitors to the University. The photographic exhibition, 'Educating Eve', opened at the Arts Theatre and then moved to the National Portrait Gallery; it formed the backdrop to a conference of London school teachers invited by the University to discuss admissions issues. The use of the University's image has been extended to include a newly-designed University map and a revised booklet on Innovation and Technology was added to the series of University brochures.

Conclusion

36. The Council believe that the kind of academic success with which this Report began is integrally related to the kind of University which Cambridge is. They are committed to retaining and developing the openness of the University's structures in a context where there is increasing pressure to make higher education the instrument of other goals. In this situation it is particularly important to make it possible for universities to exercise a critical function in relation to the currently fashionable nostrums of society. That is the kind of university that the Council wishes to serve as it enters the new millennium.

22 November 1999

ALEC N. BROERS, Vice-Chancellor T. JONES ONORA O'NEILL
A. J. BADGER DONALD LAMING JEREMY SANDERS
A. L. R. FINDLAY MELISSA LANE M. SARDY
S. L. GROO JOHN A. LEAKE M. SCHOFIELD
DAVID HARRISON A. M. LONSDALE DAVID M. THOMPSON
BRIAN F. G. JOHNSON M. D. MACLEOD R. E. THORNTON
GORDON JOHNSON

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Cambridge University Reporter Special, 16 December 1999
Copyright © 1999 The Chancellor, Masters and Scholars of the University of Cambridge.