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
Progress
Fair and consistent assessment
Good and helpful feedback to support first two outcomes
5. DTLR Overview of the CS and AMP assessment process
Performance Measurement
- what are we looking for?
Corporate working illustrated
Cross-cutting and partnership working
Framework for performance measurement
Progress and change
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:
better planning and greater predictability about funding
more LA autonomy, accountability and spending
responsibility
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
performance indicator data;
Service based inspections/assessments and audit reports;
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
Few formal AMPs produced
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)
Contents:
Asset Management
Asset Management Planning
Capital Projects
Performance Measurement
Data Management
Quick Start
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
build understanding of the strategic importance of
property
identify responsibility for strategic asset management
prepare council wide asset management plans
property should be considered in every service BV review
challenge the need to hold non-operational assets
use property in the wider corporate interest
consider innovative new working practices in office/other
accommodation
subject property services to BV review and challenge
investigate joint use and exploit the use of ICT
14. Hot Property (Audit Commission April 2000 )
Recommendations for councillors
ensure property contributes to continuous service
improvement
make property a cabinet level issue
promote property sharing with other organisations
15. Hot Property (Audit Commission April 2000 )
Recommendations for Government
ensure departments pursue a joined-up approach to asset
management
incorporate a few asset national best value indicators
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
Documents required:
Context Sheet
Capital Strategy
Asset Management Plan, including 5 national pPIs
Timetable:
Submission date 31st July 2002
GO assessment completed end October 2002
Single capital pot allocations end December 2002
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:
Proportionality
Consistency in assessment
19. Context Sheet
High level contextual, statistical and financial
information
Maximum 2 sides A4
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
Purpose:
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
A key document which pulls together all the key strategic
capital requirements emerging from service strategies
Determines priorities between capital needs and looks for
opportunities for cross-cutting, joined up investment
Maximum 6 sides A4
21. Capital Strategy
Covers:
Statistical and financial information on assets and capital
spending plans
All aspects of capital expenditure including where LA has
significant influence on others
Revenue implications of capital investment
Framework for management and monitoring of capital
programme
Informs bidding for additional capital resources and LAs
approach to external funding opportunities
Corporate wide procurement policies
Links to partners (public and private sectors) and the
community
Links to service plans and best value reviews
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
Purpose:
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
Maximum 20 sides A4
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
Format
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
Condition
1A % gross internal floor-space in condition categories
A-D
1B Backlog of maintenance by cost expressed as a % in priority
levels in 1-4 and by value
IRR
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
Management costs
3A,B Annual Management costs per sq. m.GIA expressed as an
average for A operational property and B non-operational
property
Running costs
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)
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
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):
Well below average 0
Below average 1
Average 2
Above average 3
Well above average 4
28. Other Service Delivery Assessments
Means of service assessment:
Transport - LA LTP and annual progress report
Education - School AMP
Housing - Housing Strategy and Business Plan
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:
good
satisfactory
poor
Assessment based upon pre-set primary and secondary
requirements (further supported by the Interpretation Guide)
Grading system:
Does not meet all primary criteria = POOR
Meets all primary requirement criteria but meets less than 75%
of the secondary requirement criteria = SATISFACTORY
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
Primary Requirements
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
Secondary Requirements
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)
Evidence that:
performance measures and benchmarking are used to describe and
evaluate how deployment of capital resources contributes to the
achievement of corporate and service objectives
the results of performance measurement and benchmarking are
communicated to stakeholders where relevant
results of performance measurement and benchmarking are used to
seek service improvements and target service delivery
performance measurement activities relate to capital projects
and to the influence of grants and partnerships
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)
Evidence of:
development and/or delivery of key priorities and targets to
achieve cross-cutting objectives such as regeneration and
sustainable development
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
Primary Requirements
Organisational arrangements
CPO identified
Roles and responsibilities of CPO clear, explicit and
communicated
CPO reports and is accountable to a strategic decision-making
group at officer and member levels
evidence of a cross-service, senior management forum including
CPO, reps from major service areas and finance directorate
forum has terms of ref including strategic management of LAs
assets
Forum:
progresses AMP and ensures officer and council approval
ensures AMP is informed by and supports key corporate and
service objectives
meets regularly
40. Assessment Criteria: Asset Management Plan
Primary Requirements
Data Management
a record is held and maintained of basic core data on all
assets
the validity of this information has been tested
AMP demonstrates a clear understanding of data required to
manage the performance of the property portfolio
statistical information about condition and maintenance backlog
is supplied
Performance management, monitoring and information
annual (min) property performance plan to members and chief
officers
AMP includes information on all five pPIs
members are informed of capital programme progress and
performance
41. Assessment Criteria: Asset Management Plan
Primary Requirements
Programme and plan development and implementation
AMP outlines the proposed programmes which are intended to meet
the councils property related requirements
a methodology exists for option appraisal and corporate
prioritising between projects
a 3 year capital programme including a forecast of capital
receipts is developed
output/outcome targets are set for programmes and plans
requiring capital investment
42. Assessment Criteria: Asset Management Plan
Secondary Requirements
Organisational arrangements for corporate asset management
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
Evidence that the CPO/Asset Management Forum takes into account
stakeholder information re property and property services
cabinet member holds responsibilities for property
resource
CPO contributes to CS and other relevant corporate and business
planning
Reference to property assets in other corporate policies and
strategies
Evidence of cross service property use, shared use and/or
co-location
43. Assessment Criteria: Asset Management Plan
Secondary Requirements
Consultation
Evidence that:
processes being developed to obtain feedback from services,
users and occupiers
consultation findings are used to influence the continuous
improvement of property and property services performance
44. Assessment Criteria: Asset Management Plan
Secondary Requirements
Data Management
full survey undertaken of future data requirements for property
portfolio
programme of necessary improvements is identified
commenced development of data system for intermediate data
UPRN system, or a preferred alternative, is in place
approach is developed for the centralised co-ordination of
property management information which integrates with financial
information
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
Secondary Requirements
Performance management, monitoring and information
Clear evidence that:
local performance measures are being developed and used linking
asset use to corporate objectives
processes are being developed to compare performance and
competitiveness of property and property services with other
similar organisations and other providers
performance measures and monitoring take into account
stakeholder consultation and user findings
performance measurement feeds into a process of continuous
improvement
local PIs are used for measuring and monitoring surplus
property and space utilisation
written report to members and chief officers on maintenance
backlog actions
information being collected on suitability of assets
46. Assessment Criteria: Asset Management Plan
Secondary Requirements
Programme and plan development and implementation
the property implications arising from council objectives have
been identified
there is a service wide understanding of the corporate
ownership of assets
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
options for closing these gaps have been identified and
appraised
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:
Assessment checklist
Assessment Training Notes
Assessment Interpretation Guide
In groups
Appoint group spokesperson
Report back on flipchart
good, satisfactory or poor
explanation of assessment under each criterion group
heading
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
Strict application of deadline guidance
Stage 2: Contact with LAs
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
General overview by lead assessor
Second peer review of Poor and Good assessments
General internal consistency meeting and final consensus, may
be sent to DTLR for info.
Stage 4: Draft final assessments to DTLR
DTLR regional pattern overview and analysis
Stage 5: DTLR moderation meeting for lead assessor
officers
Final agreement including any necessary moderation between
regions