Transparency data

SLC Board meeting minutes: 25 February 2021

Updated 23 February 2022

1. Attendees

1.1 Present

• Peter Lauener (PL) Chair (by videoconference)
• Paula Sussex (PS) Chief Executive Officer (by videoconference)
• Mary Curnock Cook (MCC) Non-Executive Director (by videoconference)
• Simon Devonshire (SD) Non-Executive Director (by videoconference)
• Charlotte Moar (CM) Non-Executive Director (by videoconference)
• Gary Page (GP) Non-Executive Director (by videoconference)
• Rona Ruthen (RR) Non-Executive Director (by videoconference)
• Stephen Tetlow (ST) Non-Executive Director (by videoconference)
• Andrew Wathey (AW) Non-Executive Director (by videoconference)
• David Wallace (DW) Deputy Chief Executive Officer (by videoconference)
• Jacqui Smillie (JS) Chief Financial Officer (by videoconference)
• Gary Womersley (GW) Company Secretary

1.2 Also in attendance

• Sinead O’Sullivan (SOS) DfE (by videoconference)
• Ailsa Harris (AH) DfE (by videoconference)
• Conan O’Callaghan (COC) DfE (by videoconference)
• Lauren McNamara (LMC) Scottish Government (by videoconference)
• Chris Williams (CW) Welsh Government (by videoconference)
• Conor McCartan (CMC) NI Department for the Economy (by videoconference)
• Stephen Campbell (SC) CIO
• Derek Ross (DR) Executive Director, Operations (by videoconference)
• Bernice McNaught (BMC) Executive Director, Repayments and Customer Compliance
• Morven Spalding (MS) Executive Director, People (by videoconference)
• Rob Walker (RW) Audit Principle, NAO (by videoconference)
• Helen Bogan (HB) Head of Governance and Planning (by videoconference)
• Karen Gallagher (KG) Executive Assistant (by videoconference)
• Adam Treslove (AT) Head of Corporate Affairs (by videoconference for Item 5.1 only)
• Nathan Glancy (NG) Business Manager to the Office of the CEO (by videoconference for Item 5.1 only)
• Angela Donaldson (AD) Head of Finance (by videoconference for Items 5.7 and 5.8 only)
• Peter Robinson (PR) Corporate Planning and Performance Manager (by videoconference for Items 5.9 and 5.10 only)
• Ash Marston (AM) Head of Platform Delivery (by videoconference for Item 6.1 only)
• David Thomson (DT) Head of Operations – Darlington & CEM Business Lead (by videoconference for Item 6.2 only)
• Alan Balanowski (AB) Head of Compliance and Risk Management (by videoconference for Item 7.1 only)

1.3 Apologies

• Paul Kett (PK) DfE
• Sinead Gallagher (SG) Welsh Government
• Maureen Thompson (MT) NI Department for the Economy

2. 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.

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

PL welcomed everyone to the meeting, and especially LMC who had replaced Gareth Allen, on an interim basis, as the Scottish Government representative on his retirement; CMC representing the Department for the Economy; COC from DfE, who would be observing; and RW from NAO, also observing as part of the Board Effectiveness Review.

PL noted that SOS would soon move to a new role within DfE and would be replaced by Anne Spinali, who had previously been involved with SLC loan sales as part of UKGI.

Apologies had been received from PK, SG and MT and were noted.

There were no declarations of interest.

4. Chair Update

4.1 Update from the Chair on relevant matters

PL noted that it was a challenging time for DfE with reference to the effect of the Coronavirus pandemic on education. PL noted the appointment of Sir Kevan Collins as the Government’s Education Recovery Commissioner.

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5. Strategic items

5.1 CEO Report

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PS introduced the CEO Report, noting her key areas of focus, including planning for FY2021-22, and planning for a return of staff to the office in 2021. Framing her comments, she spoke about head and tail winds impacting the business.

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5.2 Operations

PL noted that the DfE forecast on application volumes was lower than some external commentators and UCAS had already noted a significant increase in applications they had received this year compared to the comparable point a year ago. There was therefore a risk that an increase beyond current planning assumptions would put pressure on capacity at SLC. AW agreed that applications in the sector as a whole were currently up on last year.

DR noted that increases in applications in excess of planning assumptions would result in operational challenges and that later launch dates and any risk of delay in CEM roll out in addition to increased application volumes would all need careful monitoring. RR suggested that further information on mitigations would be useful and PS noted that more focus would be placed on this subject at the March Board

ACTION: Substantive item on the March Board agenda to cover Operations capacity and planning mitigations for FY2021-22.

5.3 Evolve

MCC welcomed that SLC had verified over 90% of repayment customers as complying with their terms and conditions as of January.

BMC confirmed that townhall engagement sessions and Salesforce demonstrations had taken place within Operations to provide wider awareness of CEM. Corporate-wide communications on progress would help staff understand what is being done and the positive implications of this.

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5.4 Policy Update

DW noted that conversations continue between SLC and DfE around policy reforms. DfE had recently published policy documents, including a White Paper on Further Education (FE) and an interim response to the Augar Report, with significant implications for the services SLC provides. CM requested assurance from DfE that they were putting in place formal programme governance to ensure the risks relating to these policy changes was being managed.

SOS confirmed that programme management arrangements were being put in place but suggested that PL might also want to raise this at the next QSM in view of the significance of the potential changes.

5.5 Customer Experience

DW thanked RR for her ongoing contribution and assistance as Board champion and noted that it would be helpful to have views from some other Board members as well and that this would be sought in due course. DW explained that proposed ranges for customer satisfaction targets for both Apply to Pay and Repay had been based on prior experience and Financial Services industry figures and although imperfect were a close proxy to SLC’s business. He noted that discussions were ongoing with DfE to finalise agreement on these targets.

ST noted that at previous Board meetings there had been discussion on customer channel shift, suggesting that this was more important now and should receive more focus.

5.6 Technology Group

SC noted that work to ensure long-term business continuity and enhance SLC staff’s experience of technology had continued at pace. A primary focus had been provisioning all staff with new Windows 10 laptops to enable staff to work seamlessly and securely from their homes or in the office. Applications had been packaged for use on the new laptops and this would reduce dependency on Citrix.

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In noting the CEO Report, the Board praised its content, noting that SLC has made significant progress despite a challenging year.

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5.7 CFO Report

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JS introduced the CFO Report.

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JS noted that the revised 2020-21 APRA letter was in the final stages of review before being signed by DfE.

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Board noted the CFO Report.

5.8 Draft Budget FY 2021-22

JS introduced an update on the Draft Budget process for FY 2021-22, stating the intention to return to the March meeting with a balanced budget. JS noted that there was not yet an agreed settlement from shareholders but that SLC was not anticipating any drop to the figures that had been indicated in January.

AD explained that there had been be a ’star chamber’ session on Friday 19 February to review the overall budget ask against the expected funding and to commence the decision-making process on priorities. Further sessions were scheduled for March as part of the prioritisation process.

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Board noted the Draft Budget FY 2021-22.

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5.9 Draft Corporate Performance Dashboard including draft APRA targets FY 2021-22.

PS introduced the Draft Corporate Performance Dashboard including draft APRA measures and targets FY 2021-22, noting that HB had been the planning lead, with ST representing the Board at a recent ‘task and finish’ group workshop. HB noted that the Corporate Performance Dashboard is the main vehicle for SLC to measure performance against the targets.

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MCC noted the inclusion of cost per customer on the dashboard as positive and suggested that the dashboard may be further developed with a focus on frictionless contact for customers and other non-APRA targets. The Board noted the value of measures which demonstrate SLC’s transformation, with PS noting that FY22-23 was the time to gear up transformation metrics and that MCC’s comments be considered as part of the next meeting of the ‘task and finish’ group meeting.

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Board noted and welcomed the Draft Corporate Performance Dashboard including draft APRA targets FY 2021-22.

5.10 Draft Outline Company Business Plan FY 2021-22

PS introduced the draft outline Business Plan FY 2021-22, noting the work carried out by HB and her team. This year SLC had been keen to engage the Board at an earlier stage in the process to ensure they had scope to consider and shape the Company Business Plan in advance of it being presented for approval.

HB explained that work was ongoing on the detailed directorate plans which would contribute to the final Company Business Plan and so rather than focus on detail, the intention for today was to focus on key themes.

Board members then discussed themes to be considered for inclusion, including policy reform; staff wellbeing, the post-COVID return to office working; reiteration of the mission and vision; excellence in data; and vulnerable customers. In respect of the comment on keeping the mission and vision relevant, PS confirmed that this would be picked up as part of the longer term 3 year Corporate Plan which would be brought to the board in due course.

Board noted the Draft Outline Business Plan FY 2021-22.

6. Directors’ Reports

6.1 Disaster Recovery (including Hillington Data Centre Shutdown)

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SC introduced the Disaster Recovery (including Hillington Data Centre Shutdown) paper, noting that the Hillington Data Centre shutdown had been an opportunity to restart all SLC systems as part of a controlled Disaster Recovery test. This successful test had proven Technology Group’s ability to recover all operational services and offered invaluable learning about the complexity of the TG estate.

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AM confirmed that the Hillington Data Centre Shutdown had been a significant success. All systems and services were operational and available at the start of the business day on Monday 7 December, and there had been no active incidents.

SC noted that the major incident management communications plan was well established and that SLC carried out a major test at least once a year, involving wider stakeholder communications. PL suggested that reporting on the wider issue of customers and customer communications plans would also be beneficial and requested an updated report in October or November. ACTION: Updated Disaster Recovery paper for a 2021 Board meeting.

LMC suggested that a Disaster Recovery test collaboration between SLC and SAAS may be beneficial and resolved to liaise with SC.

Board noted and welcomed the Disaster Recovery (including Hillington Data Centre Shutdown) paper.

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6.2 Customer Engagement Management (CEM) Update

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BMC introduced the Customer Engagement Management (CEM) update, noting that Salesforce was now live with an initial ten call handlers, known as pioneers. The ongoing feedback gained from these handlers would allow for a finessing of the system and processes.

BMC and DT then talked to the slides, explaining that Salesforce would support a transformation in the approach to customer service, moving from a task-based model to one which focussed on customer outcomes through case management. In addition, Salesforce would provide clear, concise, and meaningful information to SLC staff, improving the efficiency by which information can be provided to customers. Salesforce would provide the foundation to enable self-service delivery to customers.

SOS and AH both noted the average case handling time stated and SOS noted the potential for efficiency savings through policy commissioning. DT agreed to provide the median average case handling time with the Board. ACTION: DT to provide the Board with the median case handling time.

BMC noted that the plan for CEM was currently on track with full roll out expected to begin in June and be completed during August. PL asked for another presentation when CEM was in ‘full-service mode’ suggesting that if the July meeting was face to face, a live demonstration could be factored in ACTION – Further CEM presentation to be scheduled once in full-service mode.

Board noted and welcomed the Customer Engagement Management (CEM) Update.

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7. Papers for noting / reports from committees

7.1 ARC Chair Report

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CM introduced the ARC Chair Report, noting that the Annual Report and Accounts for FY2020-21 was on track but that there had so far been no draft Internal Audit plan FY2021-22 from GIAA. CM noted that IA needs to be repositioned in line with SLC transformation. On risk, CM noted 5 were out with appetite and that an Information and Data Handling (GDPR) deep dive was scheduled for the March ARC.

AB explained that the Risk Appetite statement had previously been at the November Board and that since then he had met with MCC and CM to ensure their input was included. The updated statement had then been approved at the January ARC meeting.

AB noted that discussion of progress on risk category measures would feature in future risk reports.

Board noted the ARC Chair Report and approved the Risk Appetite Statement.

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7.2 RPODC Chair Report

AW introduced the RPODC Chair Report.

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Board noted the RPODC Chair Report.

7.3 Evolve Oversight Committee Chair Report

SD introduced the Evolve Oversight Committee Chair Report, noting the positive building and adoption of technology in SLC.

SD noted the Online Repayment System and the significant yield against verified customers.

Board noted the Evolve Oversight Committee Chair Report.

7.4 December QSM minutes

SOS noted that due to resource constraints DfE had not made the progress on the Framework Document (FWD) that they had hoped but that they would come back with a proposition. Notwithstanding the delays, SOS and PL noted the good work being made on the FWD by SLC and DfE.

8. Minutes of previous meeting and matters arising

8.1 Minutes of the meeting held on 26 November 2020

The minutes of the SLC Board meeting held on 26 November 2020 were approved as a true and accurate record.

8.2 Matters arising from previous meeting

The matters arising document was approved as accurate and no further questions were asked.

9. Any other business

PL looked forward to a point where a physical Board meeting may be possible based on the Government lockdown roadmap and current national and local restrictions.

9.1 Date of Next Meeting

09:30 am, Wednesday 31 March 2021, The Boardroom, 100 Bothwell Street, Glasgow G2 7JD and remotely.