Alan Logan Head of Finance West Lothian Council Asset Management CIPFA Students Society – April 2009
Asset Management – Scope of Presentation <ul><li>Asset Management: key influences, building blocks and benefits </li></ul>...
Asset Management: Key influences, building blocks and benefits <ul><li>Building Blocks </li></ul><ul><li>Corporate View es...
Corporate Approach Corporate Plan Corporate Asset Management Plan Roads, Structures, Lighting, Water Infrastructure Open S...
Condition Sufficiency Suitability Value Accessibility Revenue Costs Condition: Physical Sufficiency: Demand Suitability: P...
Developing a decision making framework – Identifying Investment Needs Statutory (e.g. DDA) Backlog / Lifecycle (to bring a...
Strategic Outline Business Case (SOBC) <ul><li>Supporting Information </li></ul><ul><li>Impact on Service delivery </li></...
<ul><li>CONTENT </li></ul><ul><li>Strategic context </li></ul><ul><li>Capital and Revenue information </li></ul><ul><li>Im...
Audit Scotland study – Provisional findings <ul><li>25% of property in bad condition </li></ul><ul><li>Maintenance backlog...
Audit Scotland study – Key Recommendations <ul><li>Create Asset Management Plans for all assets </li></ul><ul><li>Hold cur...
Conclusion <ul><li>Asset Management is a crucial and ongoing aspect of the management of resources and effective service d...
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  1. 1. Alan Logan Head of Finance West Lothian Council Asset Management CIPFA Students Society – April 2009
  2. 2. Asset Management – Scope of Presentation <ul><li>Asset Management: key influences, building blocks and benefits </li></ul><ul><li>Corporate Approach </li></ul><ul><li>Data Gathering and Interpretation </li></ul><ul><li>Developing a decision making process </li></ul><ul><li>Integrating asset management, capital planning and service plans </li></ul><ul><li>Audit Scotland </li></ul>
  3. 3. Asset Management: Key influences, building blocks and benefits <ul><li>Building Blocks </li></ul><ul><li>Corporate View essential – driven from Corporate Plan or corporate objectives </li></ul><ul><li>Assets provide service delivery for now and in the future </li></ul><ul><li>All assets must be considered </li></ul><ul><li>Benefits </li></ul><ul><li>Provides understanding of condition, performance and cost of all assets </li></ul><ul><li>Allows better informed decision making </li></ul><ul><li>Potential to deliver substantial cost savings and efficiency gains </li></ul><ul><li>Allows organisations to demonstrate good stewardship of assets </li></ul><ul><li>Influences </li></ul><ul><li>Prudential Code </li></ul><ul><li>Best Value </li></ul><ul><li>Moves toward medium to long term planning </li></ul><ul><li>Best Practice in School Estate </li></ul>
  4. 4. Corporate Approach Corporate Plan Corporate Asset Management Plan Roads, Structures, Lighting, Water Infrastructure Open Space Property Housing Fleet ICT
  5. 5. Condition Sufficiency Suitability Value Accessibility Revenue Costs Condition: Physical Sufficiency: Demand Suitability: Purpose Data Gathering and Interpretation - Key Drivers of Asset Management
  6. 6. Developing a decision making framework – Identifying Investment Needs Statutory (e.g. DDA) Backlog / Lifecycle (to bring all assets up to an appropriate condition) Project / Additional Provision (all other investment opportunities)
  7. 7. Strategic Outline Business Case (SOBC) <ul><li>Supporting Information </li></ul><ul><li>Impact on Service delivery </li></ul><ul><li>Reasoned supporting argument for proposed course of action </li></ul><ul><li>Consequences of project not proceeding </li></ul><ul><li>Key risks and uncertainties </li></ul><ul><li>Key milestones for the project (financial and non financial) </li></ul><ul><li>Financial Information </li></ul><ul><li>High level indicative capital cost and revenue implications </li></ul><ul><li>High level indicative resources and potential funding gaps </li></ul><ul><li>Profiling of costs over the capital strategy period (typically 10 years) </li></ul><ul><li>Suitability </li></ul><ul><li>Link to Corporate Plan’s aim and objectives </li></ul><ul><li>Consultation with Community Partners </li></ul><ul><li>Key objectives of the investment </li></ul><ul><li>Brief Description & Rationale for Investment </li></ul><ul><li>Type of Asset / Service supported </li></ul><ul><li>Statement of need </li></ul><ul><li>How investment was identified </li></ul><ul><li>Research Base </li></ul><ul><li>Lead officer and project sponsor </li></ul>
  8. 8. <ul><li>CONTENT </li></ul><ul><li>Strategic context </li></ul><ul><li>Capital and Revenue information </li></ul><ul><li>Impact on asset/service delivery </li></ul><ul><li>Impact on outcome agreement targets </li></ul>FINAL STAGE 10 Year Capital Investment Programme Integrating Asset Management, Capital Planning and Service Planning <ul><li>PRIORITISATION OF </li></ul><ul><li>INVESTMENT </li></ul><ul><li>Core statutory investment </li></ul><ul><li>Core backlog/lifecycle investment </li></ul><ul><li>Prioritise remaining investment (including </li></ul><ul><li>new projects). </li></ul>STAGE 1 Key Asset Management Data (establishes investment requirements) STAGE 2 SOBC for each Investment Area After a robust corporate prioritisation process Filtered through each of the individual AMPS and linked to Service planning
  9. 9. Audit Scotland study – Provisional findings <ul><li>25% of property in bad condition </li></ul><ul><li>Maintenance backlog increasing in two-thirds of local authorities </li></ul><ul><li>50% of Councils have no Asset Management Strategy </li></ul><ul><li>50% of Councils give no Asset Management information to Members </li></ul><ul><li>Slow progress on work with Community Planning partners </li></ul>
  10. 10. Audit Scotland study – Key Recommendations <ul><li>Create Asset Management Plans for all assets </li></ul><ul><li>Hold current asset information </li></ul><ul><li>Formulate a long-term capital strategy </li></ul><ul><li>Take account of whole life costs </li></ul><ul><li>Ensure Elected Members are able to scrutinise asset usage and costs </li></ul>
  11. 11. Conclusion <ul><li>Asset Management is a crucial and ongoing aspect of the management of resources and effective service delivery. </li></ul><ul><li>Comprehensive asset management plans will ensure the following: </li></ul><ul><ul><li>Better utilisation of assets </li></ul></ul><ul><ul><li>Condition, Capacity and Suitability of Assets is determined </li></ul></ul><ul><ul><li>Priority investment is determined </li></ul></ul><ul><ul><li>Surplus assets are identified </li></ul></ul><ul><li>Integrating asset management plans with service and financial plans should is essential to provide a clear route to optimising the use of assets and enabling organisations to direct expenditure where it is most required </li></ul>
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