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Cashflow and Solvency Webinar - Shared screen with speaker view
Helen Atkinson
07:56
I can’t hear anything now? Can the host just check audio for us all?
Helen Atkinson
08:18
Great :)
Val Bailey
09:01
Sqrry cant hear anything either
Shane Chowen
09:53
Someone will be in touch to help Val
Val Bailey
09:58
Thanks.. sorted now
Harriet Hadley
10:30
Hi Helen, maybe exit and rejoin and select join with audio or copy can paste the link into a different web browser
Harriet Hadley
11:02
*and
Helen Atkinson
11:50
I’m OK too :)
Harriet Hadley
12:33
Great thank you
Tracy Reeve
14:51
no
Wendy Stanger
15:53
you have to be a host to share a screen
Shane Chowen
17:47
Do use this chat box for any questions for Julian.
Irfan Khan
25:40
Hi Julian are you going to test the new July return template with sixth form colleges as well as FE colleges? thanks
Irfan Khan
27:17
Is it possible to share what is going on in terms of FE colleges FD being involved in development of these templates. This was a huge issue with IFMC when a few FDs got involved and not enough testing was done before it was released.
Kurt Hall
28:22
Any other questions for Julian?
James Webster
29:16
are the lending banks consistent with respect to covenants?
Charles Yates
29:16
Will the Government step in if a college gets into financial trouble?
Irfan Khan
30:00
Will the cashflow template be like the one used last year as opposed to detailed one used as part of IFMC?
Helen Atkinson
30:40
The degree of uncertainty makes forecasting so difficult, do you have any advice for Governors in supporting their FD and Accounting Officer (Principle) in pulling meaningful forecast together by June?!
Chris Bradshaw
30:47
What are Julian's thoughts on the importance of supporting colleges as part of national economic recovery?
David Wheeler
31:52
for 16-18 funding and if recruitment for 20/21 is down will any penalties be delayed to 22/23 and take 20/21 and 21/22 recruitment into account
Michael Johnson
31:56
Natwest have told us they will take a 'sensible approach' to our breach and as long as the breach is solely down to Covid they will waive
elizabeth sipiere
33:12
Hi I am Chair of South Essex College on the Integrated Financial Model we had a meeting with the National Audit Office (NAO) who I believe met the Chair and FD of a number of colleges. They were interested in college finances but also we showed them in detail the model and the challenge of completing it.
Nick Skyrme
33:22
HE sector is under pressure and being encouraged by Select Committee to work with neighbouring FE Colleges. What does that imply? Thoughts?
Lydia Devenny
34:52
The Government announced significant capital funding in 2021(?) would be available. Is there any sense that this will still be the case? We are growing fast and are running out of space for 16-18 year olds.
Graham Ledden
36:38
Going concern for external auditors is likely to be an issue in signing off year end accounts. Is there likely to be guidance on the approach to take?
Julian Gravatt
37:18
Here's an omnibus answer to the questions
Julian Gravatt
37:33
Pressed return too soon
Anne-Marie Nixon
37:41
Julian, Is there any sector wide info on what colleges staffing costs to income ratios currently look like and how this might be affected?
Nick Skyrme
41:08
Julian.
Charles Yates
43:20
your message about scenario analysis is sensible. Do you think the July return will require scenarios or just a base case
Nick Skyrme
44:49
Appreciate the 2021 capital isn't of the most pressing importance right now but its clearly important that this doesn't get 'lost' in the inevitable squeeze to come. Very keen too that colleges can invest this in long-overdue equipment replacement if we wish and not necessarily on yet more shiny new buildings (that, dare I say it, may in time become rather surplus to requirements.....!)
Julian Gravatt
46:06
(1) The new July return will be tested by at least 2 colleges but it's much much simpler than the IFMC (2) On the question about what colleges should include in their forecasts, everyone will be budgeting with considerable uncertainty. AoC will publish advice which we'll continue to update through June/July (3) in terms of ratios, ESFA has been slow to publish data - we're still waiting for 2018-9 data and benchmarks at a point where colleges are getting ready to prepare 2020-1 budgets (4) Colleges have customised loan covenants with banks - 90% have loans with just Barclays and Lloyds. Genuinely difficult to generalise but important each college knows where it stands if it has lending (5) Govt rebuffed the Universities UK bid for £2 billion in support in 2020-1 because it is refusing to make any new commitments far in advance on top of existing budgets). Whatever happens with universities, AoC will keep pushing for college case - including college HE
Julian Gravatt
47:26
on scenario analysis, ESFA current plan is to ask for a single cashflow but nothing to stop a college producing scenarios
Julian Gravatt
49:29
Going concern - AoC is meeting ESFA and the audit firms in early June to discuss year end financial statements. A message from Lloyds is that some auditors will require a covenant waiver letter to be dated before year end (31 July 2020) or they might insist on reclassifying loan term loan to current liabilities
Julian Gravatt
53:22
on capital and the buildings-vs-equipment issue, the Treasury have allocated the money to improve the condition of college buildings (£1.5 billion in England over 5 years, with a slow start £130 million in 2021-2). AoC has asked for the money to be brought forward and said there may be new priorities. Not had an answer yet on this point but I think we'll need to collectively work out how much colleges are spending on reopening-related capital costs and keep pushing for government support to cover these
Chris Bradshaw
56:27
Could speakers comment on the extent to which they are assuming distance learning or blended learning to continue throughout 2020/21 and its implications.
Julian Gravatt
57:03
David Wheeler question on 16-18 funding. ESFA has says that they'll take a pragmatic approach to setting 2021-2 allocations ("use alternative data" if 2019-20 data is abnormal) but haven't said anything about 2022-3 (if 2020-1 enrolments or activity is down). It's an issue we need to keep raising
Gillian May
01:02:12
Yes please Simon - the dashboard would be great.
Charles Yates
01:02:18
It would be very interesting to see the dashboard
Lindsey Johnson
01:02:23
Yes please Simon Perryman. We would be very grateful to review your redacted model.
elizabeth sipiere
01:02:58
Yes please Simon on the model thank-you
Matthew Brown
01:03:11
We are assuming that distance/blended learning have the sam teacher time requirement as classroom. So have somewhat deferred the decision on exactly what that mix will be.
Elizabeth Ball
01:03:16
Would be good to see the dashboard
Julie Dougill
01:03:24
I’d be keen to see the dashboard please!
Michael Pearson
01:03:34
so would I.
Amanda Thorneycroft
01:03:37
Yes please Simon, it would be good to see the dashboard
Michael Belfourd
01:03:49
agreed dashboard a great help for governors
Julian Gravatt
01:03:53
FE commissioner team is working with College Finance Director's Group on model management accounts. If anyone thinks they have good ones, please get in touch.
Anne-Marie Nixon
01:03:57
Can the dashboard be sent out with Julian's slides? That would be really helpful.
Shane Chowen
01:04:03
We’ll get that sent to everyone 👍
Joanne Jones
01:04:10
Also keen to see the dashboard.
Nick Skyrme
01:04:30
Simon. Dashboard ; Further to that; a curriculum / quality equivalent would also be helpful
David Smith
01:04:42
Great to hear from Jat and Karen about their mature approach to controls and risk management. However - they have stable leadership teams and mature board with track record and historically good relationships with key stakeholders. Do we think that the ‘way through’ this is by individual autonomous colleges improving their practice or do we need a more interventionist, collaborative ‘system level’ approach to building back resilience?
roland anderson
01:04:54
I would welcome a copy of Barnsley college Dashboard
Helen Atkinson
01:06:13
We have set up a small TAFG to help support the FD to present the critical information to Corporation relating to COVID19 financial implications. This pre-scrutinises data with the FD to ensure the information to full Corporation is prioritised and clear so ALL governors can engage effectively with the financial situation of the college.
Mark Griggs
01:08:03
I think it would be useful to share an example of a proven successful dashboard with the rest of us.
Simon Perryman
01:13:37
Happy to circulate through AOC
David Wheeler
01:14:34
To add to Jat Sharma’s input in our communications strategy, we had a very good input at our Governors meeting yesterday from our Student Union Governor
Julian Gravatt
01:20:08
On Karen's point I think we're going to need to go through the ESFA (and other) rulebooks to make sure that their expectations reflect the new reality of how colleges teach and how students will be learning.
Charles Yates
01:24:35
Apologies but I have to leave now. This has been very useful, thank you.
John Tew
01:26:16
I know that today;s webinar is on finance but I think that although on line learning will play a much bigger role one complaint that employers often make is the lack of communication skills particularly face to face contact and 'social skills' difficult to do well on line.
Andrew Unitt
01:26:43
Just a thought to build on the comments about how difficult it is to plan for 20/21, our Board is encouraging the Exec team that it may help to picture the optimum model in 2021/22 and then look at what they will plan to do in 20/21 "future-back"
Nick Skyrme
01:29:31
Hugest "thank yous" to Shane for chairing this so well and especially to all participants for some great contributions. Have a great weekend everybody!
Helen Atkinson
01:30:01
Good to hear Karen, zooming is exhausting, so learner fatigue and wellbeing will be critical to consider in planning.
David Wheeler
01:30:19
Yes I fully echo that Nick
David Holmes
01:31:09
Agreed that sharing the best practice dashboard would be very helpful
Lindsey Johnson
01:31:35
Agree Karen
Helen Atkinson
01:35:06
Well chaired/hosted, Shane :)
David Holmes
01:37:34
Excellent session.
Julian Gravatt
01:37:37
Great ideas, great panel
Deanne Morgan
01:37:39
Thank you
elizabeth sipiere
01:37:58
Many thanks really helpful
Chris Bradshaw
01:38:06
Thanks to all the speakers!
Julian Gravatt
01:38:15
fortnightly 2nd, 16th, 30th - to discuss budgets - 10am Tuesday
James Webster
01:38:19
nice job everyone, very informative. Thank you.
Dawn Samwell
01:38:26
thank you some interesting discussions there.
roland anderson
01:38:29
I enjoyed the event and learnt a lot Roland Anderson
Heather Moyes
01:38:33
Thank you
Graham Ledden
01:38:35
Thank you everyone
Val Bailey
01:38:38
The comments re blended learning are very useful, as a governor the focus on significant ‘blended learning’ provision is imperative. Governors need ways of scrutinising the quality of provision in the new ‘hybrid world’ of face to face and on -line learning and the possible financial impact of the new curriculum models moving forward. Thanks Val Bailey
j fiona macmillan
01:38:39
thank you all very very helpful
Gareth Dixon
01:38:43
thank you
Lindsey Johnson
01:38:46
Thank you to everybody. Have a lovely bank hol.
Lisa Saville
01:38:51
Thank you - a very useful webinar