Dame Denise Holt, Chair of Council
As we approach the end of my second year as Chair of the University’s Council and the end of my first three-year term, I have a lot to reflect on. Many issues for the sector that have been around for a while have been dramatically accentuated by the Covid-19 pandemic. This was very much the theme of our recent formal meeting of Council.
This week, the Institute of Fiscal Studies (IFS) released a report highlighting the risk that 13 UK universities are likely to become insolvent with many more needing to take action to address the on-going financial challenges of the pandemic. Thankfully, Sussex is not among this unhappy group, due in large measure to the robust way in which the institution has managed its finances over a long period. In fact, Sussex has gone out of its way to ensure, through a series of webinars and other forums, that staff and unions have an opportunity to understand and question the Executive on our finances.
Separately, the Vice-Chancellor and Finance Director meet weekly, with myself and David Curley (Chair of the Audit and Risk Committee), to allow us to gain assurance on behalf of Council that our finances remain sound. At the outset of the pandemic, the Vice-Chancellor suggested that his spending authority should be reduced (except for routine payments such as payments to HMRC) and Council delegated to David and me, the ability to authorise expenditure between £750,000 and £10 million that would normally be an Executive competence. Over that limit, approval of the full Council is required.
Although the University does remain in a sound financial position this year, we are not yet out of the woods. Like many universities, Sussex is now waiting until the autumn to understand the impact of student recruitment on its finances. That is, how many students (particularly international ones) will turn up for their studies – whether that be in person or online.
We won’t know until then what the University’s income will be in relation to student fees and accommodation for the 2020/21 year. This state of uncertainty has made it very difficult to draw up next year’s budget. On 3 July, Council therefore approved an interim budget for 2020/21, recognising that it may need to be reviewed and adjusted at the time of the November council meeting, if not earlier.
This interim budget – exceptionally – sets an accounting deficit. That is, it will not produce a surplus in the next academic year. In getting to this point, a lot of excellent and detailed modelling has been done and it is clear the University is likely to face some tough decisions come the autumn if student intake is lower than the our base case model, and if there is not significant confidence in a 2021 bounce back. As you would expect of a responsible and well-governed institution, we are, and will remain, in regular dialogue with our lenders about our financial situation. For now, the University continues to be in a financially sound position.
Council also has oversight of the University’s Key Performance Indicators (KPIs) in relation to the delivery of its strategy, Sussex 2025. At this July Council meeting, the University gave an update on the progress of the KPIs. Many continue to be on track but not surprisingly, given that some activities have been paused due to Covid-19, progress has not been made on all KPIs. More importantly, there has been a recognition that some metrics will need to be revisited in light of changing circumstances. At our next Council meeting, we will receive and consider any changes to the KPIs. Measuring success and delivery on behalf of our students and the many communities we support is vitally important.
However difficult, even unpleasant, the task may be, we will seek to ensure that we continue to uphold our values of integrity and kindness. One of the things that has, frankly, shocked me has been the personal abuse sent to members of the Executive by colleagues in the wider University community. In any other organisations, offensive emails and the like might lead to serious consequences. At the very least, they cause distress and anxiety to the recipients. As we all trickle back to our work and studies it would be great to see us collectively committing to observe kindness, integrity and respect in all our relationships.
From all the above, you might conclude that the future of the University is oppressed by dark clouds. I think we are in as good shape as we could hope, and one of the many strengths of younger Universities like ours is that we don’t need to be anchored in centuries of tradition. We can and should be enthusiasts for improvement and change. And, it turns out, we are.
At our July Council meeting, the Vice-Chancellor gave his round-up report of the academic year and what had been achieved. I know these details will be shared with all staff through the regular communications channels. It’s clear that on so many fronts we have done well.
We successfully responded to our students’ education requirements during lockdown; we generated research grants in excess of £50 million; we effectively profiled our academics and students in the media; we continued to influence and shape public policy; we secured important partnerships with international institutions; we engaged with our global alumni community; we supported our students’ welfare on a daily basis plus so much more. All of this is testament to the quality of this organisation and its people.
Sussex is a great university, and I am conscious of the responsibility that I, and Council, owe to the whole Sussex community to ensure a sustainable and successful future. There is much to do in the coming months, but as Chair of Council, I am proud of what the University has achieved in the past year, and what we have shown ourselves capable of in these changing times. I hope you are too.
Dame Denise Holt
Chair of Council