Transcript of DTLR GO Training 2002 Capital Strategy and Asset Management ...
- 1. DTLR GO Training 2002: Capital Strategy and Asset Management
Plan Assessment DTZ Pieda Consulting on behalf of DTLR
- 2. Content
- Contextual background to Capital Strategies and Asset
Management Plans
- What is a Capital Strategy and Asset Management Plan?
- Assessment of Capital Strategies and Asset Management
Plans
- 3. Contextual Background to Capital Strategies and Asset
Management Plans
- 4. DTLR Overview of the CS and AMP assessment process
- Key Outcomes of Assessment
- Better use of resources and assets
- Fair and consistent assessment
- Good and helpful feedback to support first two outcomes
- 5. DTLR Overview of the CS and AMP assessment process
- - what are we looking for?
- Corporate working illustrated
- Cross-cutting and partnership working
- Framework for performance measurement
- 6. Why all the Fuss about Capital and Assets?
- Assets consume large amounts of local government revenue and
capital
- Increasing fixed public liabilities that government may not be
able to meet (pensions, maintenance of the public estate)
- Concerns that the service and financial returns from capital
deployed in LAs may not be fully optimised
- The Best Value/Modernisation/Change Agenda
- Central Government desire to introduce new LA flexibilities
(through the Prudential regime) - evidence of good practice in
capital and asset planning would be a pre-requisite
- 7. Single Capital Pot: Purpose and Objectives
- White Paper Modern Local Government - In Touch with the People
(1998) promised new cross-service allocation of capital to LAs -
single capital pot
- A clear and transparent process
- Rewards strategic planning and good performance
- Balance between local decision making and national
priorities
- Improved outcomes and better services through:
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- better planning and greater predictability about funding
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- more LA autonomy, accountability and spending
responsibility
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- improved corporate and strategic working
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- better use and management of assets
- 8. Performance Assessment Framework (White Paper, 2001)
- Bulk of LA financial support will be distributed through the
single capital pot
- Comprehensive Performance Assessment (CPA) framework is the
means for identifying LAs level of performance. To be introduced
over late 2002/ to late 2003
- AC developing methodology but will bring together
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- performance indicator data;
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- Service based inspections/assessments and audit reports;
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- corporate governance assessment undertaken in consultation with
LA and incorporating some self assessment/peer review
- LAs to be assessed under the CPA as falling into one of five
categories (to be announced)
- 9. Performance Assessment Framework (White Paper, 2001)
continued
- High Performers will benefit from additional future freedoms -
less financial ring-fencing, fewer planning requirements, lighter
inspection regime, financial freedoms for borrowing,
investing,trading, charging and setting spending priorities
- As from 2002 no further AMP or CS required for LA scoring Good
(although considered that they would still be needed for councils
own purposes)
- pPIs and basic property statistical data will still need to be
submitted for CPA purposes
- Capital Strategies will be a requirement under proposals for
the future Prudential Code
- 10. DETR Research on Asset Management (1999): Overall
Conclusions
- Strategic asset management not yet well developed in LG
- Good practice in new capital prioritisation and capital
projects
- The deployment of existing capital is not often comprehensively
challenged
- Limited performance measurement
- Recognition that information systems are a prerequisite for
performance measurement
- Limited consistency and fragmented data but this is being
addressed
- No significant difference in approach between types of local
authorities
- A strong case for good practice guidance
- 11. DETR Good Practice Guidelines (2000)
- Asset Management Planning
- 12. Hot Property (Audit Commission April 2000 )
- Followed the Audit Commission Report in 1988 on Local Authority
Property Management which was highly praised but largely
ignored!
- A very clear guide about what the AC is looking for in terms of
improving performance in asset management
- 13. Hot Property (Audit Commission April 2000 )
- Recommendations for Managers
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- build understanding of the strategic importance of
property
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- identify responsibility for strategic asset management
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- prepare council wide asset management plans
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- property should be considered in every service BV review
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- challenge the need to hold non-operational assets
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- use property in the wider corporate interest
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- consider innovative new working practices in office/other
accommodation
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- subject property services to BV review and challenge
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- investigate joint use and exploit the use of ICT
- 14. Hot Property (Audit Commission April 2000 )
- Recommendations for councillors
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- ensure property contributes to continuous service
improvement
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- make property a cabinet level issue
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- promote property sharing with other organisations
- 15. Hot Property (Audit Commission April 2000 )
- Recommendations for Government
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- ensure departments pursue a joined-up approach to asset
management
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- incorporate a few asset national best value indicators
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- accelerate alternatives to the existing system of capital
controls
- 16. What is a Capital Strategy and an Asset Management
Plan?
- 17. Capital Strategy and AMP submission requirements
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- Asset Management Plan, including 5 national pPIs
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- Submission date 31st July 2002
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- GO assessment completed end October 2002
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- Single capital pot allocations end December 2002
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- Written GO feedback to LAs by 20th January 2003
- 18. Capital Strategy and AMP Whats new for 2002?
- Upgrading of some secondary criteria to primary criteria and
new, additional secondary criteria
- Stronger focus on performance and outcomes whilst still needing
processes
- Evidence of member and corporate management involvement
- Efforts to refine and define:
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- Consistency in assessment
- 19. Context Sheet
- High level contextual, statistical and financial
information
- Gross and net revenue budgets
- Fixed assets info and analysis as per consolidated balance
sheet in statement of accounts
- Number, GIA, type and value of assets by main service
areas
- Backlog maintenance value by main service areas
- Summary 3-5 years capital programme and capital sources
- LAs likely future approach towards unsupported borrowing
- Brief details on area, population and characteristics of LA
area
- 20. Capital Strategy
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- Should provide clear strategic guidance about the councils
capital objectives, priorities and spending plans and demonstrate
how the deployment of capital resources (including capital in
assets) is directly linked to and contributes to the achievement of
the councils corporate and service objectives
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- A key document which pulls together all the key strategic
capital requirements emerging from service strategies
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- Determines priorities between capital needs and looks for
opportunities for cross-cutting, joined up investment
- 21. Capital Strategy
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- Statistical and financial information on assets and capital
spending plans
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- All aspects of capital expenditure including where LA has
significant influence on others
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- Revenue implications of capital investment
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- Framework for management and monitoring of capital
programme
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- Informs bidding for additional capital resources and LAs
approach to external funding opportunities
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- Corporate wide procurement policies
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- Links to partners (public and private sectors) and the
community
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- Links to service plans and best value reviews
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- Processes (eg generation, appraisal and prioritisation of
capital project options; monitoring and evaluation of projects;
corporate property review to increase efficiencies and release
resources)
- 22. Asset Management Plan
- The LAs corporate document detailing existing asset management
arrangements and outcomes and planned action to improve corporate
asset use.
- The AMP process enables the CPO to define and provide for the
longer-term corporate need and to challenge existing asset
use.
- Describes the AMP processes
- Covers all property interests excluding details of housing and
education assets, highways and transport infrastructure, vehicles,
plant and equipment
- 23. Asset Management Plan
- Corporate requirements of AMP and the CPO role
- To address the role and contribution of the LAs property assets
as a a corporate resource supporting the delivery of corporate and
service objectives
- Clear understanding of LAs business and service aims supported
by a clarification of the contribution assets make to these
aims
- Considers major corporate drivers for future change and their
property implications. A planned programme for dealing with
anticipated changes that is achievable, costed and appraised
- Plans ahead for future property use and need, includes revenue
consequences of capital decisions and whole life costs
- Develops and implements appropriate performance measures
(national and local)
- 24. Asset Management Plan
- Organisational arrangements for corporate asset management
- Consultation - how stakeholders views inform asset
management
- Data management - how asset data is collected, recorded,
managed and used to support performance management
- Performance management and monitoring - how asset management
information is used to deliver performance improvements and is
linked to corporate and service objectives
- Programme and plan development and implementation
- Performance information - national pPIs and local PIs
- 25. National Property Performance Indicators
- Excludes Highways and transport infrastructure, vehicles, plant
and equipment from all pPIs
- Housing and schools excluded from all pPIs except pPI 3
- LA property organisations involved in annual preparation of
pPIs
- As quality and comparability of pPI information improves the
pPIs may be integrated within Best Value measures
- 26. National Property Performance Indicators
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- 1A % gross internal floor-space in condition categories
A-D
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- 1B Backlog of maintenance by cost expressed as a % in priority
levels in 1-4 and by value
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- 2A,B,C Current internal rate of return (IRR) for the portfolio
expressed as an average for A Industrial, B Retail and C
Agricultural investment property
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- 3A,B Annual Management costs per sq. m.GIA expressed as an
average for A operational property and B non-operational
property
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- 4A,B,C,D Annual revenue costs per sq. m. GIA for operational
property expressed as an average for A repair and maintenance, B
energy, C water, D CO2 emissions in tonnes of carbon dioxide per
sq. m. GIA
- Capital projects (Counties, Mets & Unitaries>100,000 and
Districts, Boroughs>50,000)
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- 5A % of project costs where outturn falls within +/-5% of the
estimated outturn, expressed as a %age of the total projects
completed in that financial year
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- 5B % of projects falling within +5% of the estimated timescale,
expressed as a %age of the total projects completed in that
financial year
- 27. Other Service Delivery Assessments
- LAs to be graded on service performance in Transport, Housing,
Education and Social Services
- Grading on a five point scoring scale (SS may retain current
starring system):
- 28. Other Service Delivery Assessments
- Means of service assessment:
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- Transport - LA LTP and annual progress report
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- Housing - Housing Strategy and Business Plan
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- Social Services - new DOH performance assessment framework
- Services to be weighted to reflect the relative size of SCP
contributions. Weightings yet to be announced.
- Total LA service assessment score = sum of weighted service
performance scores
- 29. Exercise 1: Benefits of better capital and asset management
planning
- List your perceptions and expectations of how LAs performance
and service delivery should improve through the better planning and
management of their capital and property resources.
- 30. Assessment of Capital Strategies and Asset Management
Plans
- 31. Assessment Basis of CS and AMP
- Assessed by GOs as one of the following:
- Assessment based upon pre-set primary and secondary
requirements (further supported by the Interpretation Guide)
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- Does not meet all primary criteria = POOR
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- Meets all primary requirement criteria but meets less than 75%
of the secondary requirement criteria = SATISFACTORY
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- Meets all primary requirement criteria and meets more than 75%
of secondary requirement criteria = GOOD (so long as at least one
criterion in each group of secondary requirement criteria is
met)
- 32. Assessment Criteria: Capital Strategy
- 33. Assessment Criteria: Capital Strategy
- provides clear strategic guidance about the councils capital
objectives, priorities and spending plans and demonstrates that
these are directly linked to and consistent with key corporate and
service objectives; identifies council-wide cross-cutting activity
and initiatives
- describes the framework in place for ensuring the CS is a
corporate document
- identifies all key aspects of capital expenditure within the LA
and in those areas where the LA is able to apply significant
influence on others use of capital resources
- 34. Assessment Criteria: Capital Strategy
- Primary Requirements (continued)
- explains the approach for prioritising capital project
proposals
- explains how revenue implications of capital investment are
taken into account
- is informed by outcomes of BVRs and other relevant reviews and
improvement/development plans
- identifies how relevant stakeholders and partners views are
sought and inform the working and development of the CS
- identifies key partners and describes partnership working
- 35. Assessment Criteria: Capital Strategy
- sets out sufficient information to inform all bidding for
capital resources
- outlines the LAs approach to PPP/PFI and to other means of
alternative capital funding
- addresses corporate policies on procurement strategies (ref BV
guidance and Egan report)
- identifies how partnership working is being processed with
other councils and relevant organisations
- 36. Assessment Criteria: Capital Strategy
- Secondary Requirements (continued)
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- performance measures and benchmarking are used to describe and
evaluate how deployment of capital resources contributes to the
achievement of corporate and service objectives
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- the results of performance measurement and benchmarking are
communicated to stakeholders where relevant
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- results of performance measurement and benchmarking are used to
seek service improvements and target service delivery
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- performance measurement activities relate to capital projects
and to the influence of grants and partnerships
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- a corporately agreed 3 year strategy explaining the LAs
approach regarding the effective management, measurement and
monitoring of the councils capital programme
- 37. Assessment Criteria: Capital Strategy
- Secondary Requirements (continued)
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- development and/or delivery of key priorities and targets to
achieve cross-cutting objectives such as regeneration and
sustainable development
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- cross-cutting activity leading to improved outcomes, including
consideration of and, where appropriate, adoption of innovative
solutions
- 38. Assessment Criteria: Asset Management Plan
- 39. Assessment Criteria: Asset Management Plan
- Organisational arrangements
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- Roles and responsibilities of CPO clear, explicit and
communicated
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- CPO reports and is accountable to a strategic decision-making
group at officer and member levels
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- evidence of a cross-service, senior management forum including
CPO, reps from major service areas and finance directorate
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- forum has terms of ref including strategic management of LAs
assets
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- progresses AMP and ensures officer and council approval
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- ensures AMP is informed by and supports key corporate and
service objectives
- 40. Assessment Criteria: Asset Management Plan
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- a record is held and maintained of basic core data on all
assets
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- the validity of this information has been tested
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- AMP demonstrates a clear understanding of data required to
manage the performance of the property portfolio
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- statistical information about condition and maintenance backlog
is supplied
- Performance management, monitoring and information
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- annual (min) property performance plan to members and chief
officers
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- AMP includes information on all five pPIs
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- members are informed of capital programme progress and
performance
- 41. Assessment Criteria: Asset Management Plan
- Programme and plan development and implementation
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- AMP outlines the proposed programmes which are intended to meet
the councils property related requirements
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- a methodology exists for option appraisal and corporate
prioritising between projects
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- a 3 year capital programme including a forecast of capital
receipts is developed
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- output/outcome targets are set for programmes and plans
requiring capital investment
- 42. Assessment Criteria: Asset Management Plan
- Organisational arrangements for corporate asset management
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- Evidence that the CPO/Asset Management Forum routinely
challenges and reviews assets and property services to achieve the
most effective management, planning and use of assets. Key findings
reported to chief officers and council
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- Evidence that the CPO/Asset Management Forum takes into account
stakeholder information re property and property services
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- cabinet member holds responsibilities for property
resource
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- CPO contributes to CS and other relevant corporate and business
planning
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- Reference to property assets in other corporate policies and
strategies
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- Evidence of cross service property use, shared use and/or
co-location
- 43. Assessment Criteria: Asset Management Plan
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- processes being developed to obtain feedback from services,
users and occupiers
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- consultation findings are used to influence the continuous
improvement of property and property services performance
- 44. Assessment Criteria: Asset Management Plan
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- full survey undertaken of future data requirements for property
portfolio
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- programme of necessary improvements is identified
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- commenced development of data system for intermediate data
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- UPRN system, or a preferred alternative, is in place
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- approach is developed for the centralised co-ordination of
property management information which integrates with financial
information
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- a review has been undertaken of users training needs and a
system is in place for satisfying these needs
- 45. Assessment Criteria: Asset Management Plan
- Performance management, monitoring and information
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- local performance measures are being developed and used linking
asset use to corporate objectives
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- processes are being developed to compare performance and
competitiveness of property and property services with other
similar organisations and other providers
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- performance measures and monitoring take into account
stakeholder consultation and user findings
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- performance measurement feeds into a process of continuous
improvement
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- local PIs are used for measuring and monitoring surplus
property and space utilisation
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- written report to members and chief officers on maintenance
backlog actions
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- information being collected on suitability of assets
- 46. Assessment Criteria: Asset Management Plan
- Programme and plan development and implementation
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- the property implications arising from council objectives have
been identified
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- there is a service wide understanding of the corporate
ownership of assets
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- a thorough investigation and analysis has been undertaken of
the gaps between the future requirements and the current provision
and performance of present property assets
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- options for closing these gaps have been identified and
appraised
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- the AMP outlines the councils approved 3-5 year strategic
action plan based on this gap analysis
- 47. Exercise 2: Practical CS and AMP assessment
- Take the example CS or AMP given and assess it as Good,
Satisfactory or Poor using the:
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- Assessment Training Notes
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- Assessment Interpretation Guide
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- Appoint group spokesperson
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- good, satisfactory or poor
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- explanation of assessment under each criterion group
heading
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- group observations about implementing the assessment
process
- 48. Consistency in Assessment
- Each GO to nominate a lead assessor officer responsible for
developing CS and AMP consistency management process, to be
submitted for DTLR approval
- The consistency process may adopt the following
suggestions:
- Stage 1: Receipt of LAs CS and AMP submissions
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- Strict application of deadline guidance
- Stage 2: Contact with LAs
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- GOs may request additional information from LA by telephone
where considered necessary for amplification or clarification. This
should always apply in the case of the potential failure of a
primary criteria on account of inadequate detail or
information.
- 49. Consistency in Assessment
- Stage 3: Consistency meeting in each GO
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- General overview by lead assessor
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- Second peer review of Poor and Good assessments
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- General internal consistency meeting and final consensus, may
be sent to DTLR for info.
- Stage 4: Draft final assessments to DTLR
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- DTLR regional pattern overview and analysis
- Stage 5: DTLR moderation meeting for lead assessor
officers
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- Final agreement including any necessary moderation between
regions
- Stage 6: Feedback of assessments to LAs
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- Single Capital pot timetable