Colleges: Tripartite Alignment Group minutes - 5 September 2024

Attendees and apologies

• Graeme Dey MSP, Minister for Higher and Further Education,  
• Stuart Greig (Chair), Scottish Government
• Liz Hawkins, Scottish Government
• Fraser Syme, Scottish Government
• David Baldie, Scottish Government
• Lynne Raeside, Scottish Funding Council
• Richard Maconachie, Scottish Funding Council
• Martin Boyle, Scottish Funding Council
• Simon Hewitt (Dundee & Angus College Principal), Colleges Scotland
• Andy Witty, Colleges Scotland
• Joanna Campbell (Dumfries & Galloway College Principal), Colleges Scotland Angus Campbell (UHI), Colleges Scotland
• Alan Williamson (Edinburgh College Finance Director), Colleges Scotland

Items and actions

Welcome / Note of last meeting

Attendees confirmed they are content with the note of the last meeting so it can be published.

Asset disposals 

There was agreement that the new process needs to be formalised and introduced at the earliest opportunity, with the Minister stating a desire to consider raising the de minimus value, and CS asking for clear definition around what the funds being redistributed will be used for. 
CS confirmed colleges would find it helpful to have the process formalised in writing with assurance that monies raised will stay in the college sector – it was noted that this is already a statutory requirement and that the new process should not prevent colleges from progressing with disposals.

Action

• SG to draft a letter to the sector setting out the new process – this will be issued  in the next 2-3 weeks

College Funding Group / New funding model

SFC provided an update explaining the intricacies in the current funding model with the aim ultimately to establish a new allocation model. 
SFC are working though how best to establish this significant area of work, noting that the last model took 7 years to establish, and this review needs to be done to a considerably different timescale. 
SFC will engage with the sector, including on this initial work, to establish an approach and governance and engagement framework.

Future areas of focus

Bespoke funding agreements:

SFC’s work to consider flexible transition arrangements were broadly welcomed. 
SFC noted that this paper was an exploratory proposal and that Board approval would be required before implementation - this would require further development of the proposed approach including engagement with the sector. 
There was some discussion around the flexibility of this proposal, particularly for  colleges that are currently unable to meet existing demand for courses. 
It was noted that it was being proposed as an opt-in - colleges not experiencing issues would not have to opt in, but may wish to consider it as an opportunity to do things differently. 
There was agreement that it would be helpful if these arrangements were linked to performance in a measurable way as ultimately the aim is to improve learners’ outcomes. 

Actions

• SFC to refine their paper to be a proposition paper to the sector which can be shared with the sector by CS
• CS to invite SFC to Principals meeting on 10 September to discuss this initial proposal

Alternative funding streams:

SG noted that ‘other income’ in the college sector had been fairly static for many years. 
There was discussion around a number of good examples of colleges attracting commercial investment from across the sector.   
It was noted that there are legal issues in relation to colleges raising commercial funds but it would be good to explore how some colleges are managing this. 
There was agreement that it would be helpful if an outline plan could be developed to help the sector increase their revenue from other funding streams by 25% for example, and the need to join up with NSET on that. 

Action

• CS to collate case studies of best practice from across the sector that can be shared and discussed with the sector
• CS to also examine the breakdown of non-public funding into the college sector to  establish what it constitutes, where there’s been growth, and what trends there have been
• CS to table a paper at the next meeting setting out barriers and opportunities to increasing non-public investment into the sector, with a focus on what it would take to increase these non-public forms of funding by around 25%

Alternative capital funding models:

SFC provided an update on their infrastructure investment work/plan, with discussion about Scottish Future Trust’s (SFT) role and what can be done to encourage scrutiny of this issue given the limited resources of SFC and SFT.

Actions

• SFC to consider this issue further to explore different potential investment vehicles (such as local authorities and SNIB), with a paper to be sent from their infrastructure group to CS for views/additions 
• SFC and SG to meet with SFT
• SFC to seek advice of Universities Scotland in case universities have been funding projects in a way that could be applied to the college sector

Cost methodology – benchmarking pilot update

Principals involved in the pilot advised it has been concluded but the final report has not yet been received.
There was a discussion on the value and practicality of extending such an exercise across the whole sector on a reoccurring basis.

Action

• Principals involved in the pilot will report back to the Group when they receive the final report.

CDEL/RDEL

SFC summarised the issue and there was discussion about the challenges in resolving it.

Action

• SG to draft a note to Minister on this issue which can then be taken forward within government.

Representation of Tripartite Alignment Group (ensuring right people attend consistently)

SG asked the Group to feed back on who they feel should be core and ‘satellite’ members of the Group. 

Action

• All – to advise Group secretariat who they feel should be core and ‘satellite’ members of the Group.

AOB

There was agreement that it would be useful to have lists of the core things delivered by all colleges, and lists of what colleges deliver tailored to local needs, with a view to classifying these areas of delivery and their respective importance. This will be discussed further at the next meeting of the Group.