Review of Asset Management


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Review of Asset Management

  1. 1. Policy and Review Topic Panel B Review of Asset Management - Audit Reports Stephen Checkley - Head of Asset Management Service
  2. 2. Outline of Presentation <ul><li>Introduction to the role of the Audit Commission </li></ul><ul><li>Audit Commission reports </li></ul><ul><ul><li>Implementation of improvement plans </li></ul></ul><ul><ul><li>Matching the estate to available resources </li></ul></ul><ul><li>Internal Audit Reports </li></ul><ul><ul><li>Internal Audit - Commercial rents </li></ul></ul><ul><li>Recommendations arising </li></ul><ul><li>Action plan - Officers response </li></ul><ul><li>Questions and answers </li></ul>
  3. 3. Role of the Audit Commission <ul><li>Appointed by Director of Finance and Resources as a consultant </li></ul><ul><li>To monitor and challenge our approach to Asset Management Planning </li></ul><ul><li>To advise on good practice </li></ul><ul><li>To make recommendations for improvement </li></ul><ul><li>To ensure delivery of priority driven corporate resource management </li></ul>
  4. 4. Matching the estate to available resources - Objectives and Methodology <ul><li>Objectives </li></ul><ul><li>Methodology </li></ul><ul><li>Main conclusions </li></ul><ul><li>Positive action </li></ul>
  5. 5. Matching the estate to available resources - Maintenance Gap <ul><li>£40m maintenance backlog (2003) </li></ul><ul><li>£7.1m Priority 1 (URGENT) </li></ul><ul><li>Risks to occupants and service delivery </li></ul><ul><li>Health and Safety Notices </li></ul><ul><li>Targeting of resources </li></ul><ul><li>Revenue Maintenance “gap” £3.5m revenue per annum over 10 years </li></ul><ul><li>RPI increase 2-3%……………Building Cost inflation 5% - 8% </li></ul><ul><li>Sustainable portfolio through re-investment </li></ul>
  6. 6. Managing Office Space Performance and targets <ul><li>Small improvements made without targets for improvement </li></ul><ul><ul><li>PCC 11.6m 2 per person </li></ul></ul><ul><ul><li>Best quartile 10.0m 2 per person </li></ul></ul><ul><ul><li>Variance 6.4m 2 to 24.6m 2 </li></ul></ul><ul><li>30% to 60% above Audit Commission recommendations </li></ul><ul><li>Abortive investigation through “In-sourcing” partnership </li></ul>
  7. 7. Managing Office Space Initiatives <ul><li>Flexible Working </li></ul><ul><li>Storage Space </li></ul><ul><li>Training Facilities </li></ul><ul><li>Meeting Facilities </li></ul><ul><li>Rationalise operational portfolio </li></ul><ul><li>Suitability and Sufficiency surveys </li></ul><ul><li>Property Sharing </li></ul><ul><li>Partnership working </li></ul><ul><li>Incentives </li></ul>
  8. 8. Matching the Estate to available resources <ul><li>Recommendations </li></ul><ul><ul><li>Re-cycle capital receipts </li></ul></ul><ul><ul><li>Space champion </li></ul></ul><ul><ul><li>Space Standards </li></ul></ul><ul><ul><li>Resources to implement </li></ul></ul><ul><ul><li>Robust Utilisation data </li></ul></ul><ul><ul><li>Sharing of assets </li></ul></ul><ul><ul><li>Consider Acquisitions and Disposals corporately </li></ul></ul><ul><ul><li>Partnership working </li></ul></ul><ul><ul><li>Incentives to release assets </li></ul></ul><ul><li>Proposed Response </li></ul><ul><ul><li>Report to CMT/Executive </li></ul></ul><ul><ul><li>Report to Leader </li></ul></ul><ul><ul><li>Require resources for property review </li></ul></ul><ul><ul><li>Service Asset Management Plans </li></ul></ul><ul><ul><li>Enforce Standing Orders and ensure use of AMG </li></ul></ul><ul><ul><li>Consult with LSP </li></ul></ul><ul><ul><li>Space Standards </li></ul></ul>
  9. 9. Questions and Answers David Martin - Audit Commission
  10. 10. Implementation of Improvement Plans <ul><li>Objectives </li></ul><ul><li>Methodology </li></ul>
  11. 11. Implementation of Improvement Plans <ul><li>Conclusions </li></ul><ul><ul><li>Substantial Progress </li></ul></ul><ul><ul><li>Need corporate focus in some areas </li></ul></ul><ul><ul><li>Progress towards Energy Management </li></ul></ul><ul><ul><li>Alternative methods of Service delivery </li></ul></ul><ul><ul><li>Design and Maintenance as part of Project Management </li></ul></ul><ul><ul><li>Performance Management targets </li></ul></ul>
  12. 12. Implementation of Improvement Plans Recommendations <ul><li>Recommendations </li></ul><ul><ul><li>Alternative service delivery methods </li></ul></ul><ul><ul><li>Action plans for team members </li></ul></ul><ul><ul><li>Set performance targets </li></ul></ul><ul><ul><li>Reduce Carbon emissions </li></ul></ul><ul><ul><li>Reduce high occupancy costs </li></ul></ul><ul><ul><li>Improve project management </li></ul></ul><ul><li>Proposed response </li></ul><ul><ul><li>Scrutiny Panel Review </li></ul></ul><ul><ul><li>Being developed as part of appraisal system </li></ul></ul><ul><ul><li>Included in Business Plan </li></ul></ul><ul><ul><li>Funding for EEO/Member champion </li></ul></ul><ul><ul><li>Processes to be developed </li></ul></ul><ul><ul><li>Identify key officers for project teams </li></ul></ul>
  13. 13. Questions and Answers David Martin - Audit Commission
  14. 14. Internal Audit Report 2003/4 <ul><li>Objectives </li></ul><ul><ul><li>Strategic Management </li></ul></ul><ul><ul><li>Compliance with regulations </li></ul></ul><ul><ul><li>Operational effectiveness </li></ul></ul><ul><ul><li>Data integrity and accuracy </li></ul></ul><ul><li>Main Concerns </li></ul><ul><ul><li>Lack of specific policies for property management </li></ul></ul><ul><ul><li>Insufficient resources </li></ul></ul>
  15. 15. Internal Audit Report 2003/4 <ul><li>Recommendations </li></ul><ul><ul><li>Document policies </li></ul></ul><ul><ul><li>Update Property Strategy </li></ul></ul><ul><ul><li>Monitoring of strategy and policy compliance </li></ul></ul><ul><ul><li>Undertake option appraisal before acquisition of property </li></ul></ul><ul><ul><li>Management of staff </li></ul></ul><ul><ul><li>Identify Ancient Corporate Property </li></ul></ul><ul><ul><li>Revaluation of Assets </li></ul></ul><ul><ul><li>Adequate resources </li></ul></ul><ul><ul><li>Rent Recovery processes </li></ul></ul><ul><ul><li>Reliance on key individuals </li></ul></ul>
  16. 16. Internal Audit Report 2003/4 <ul><li>Recommendations - cont’d </li></ul><ul><ul><li>Adhere to year end procedures </li></ul></ul><ul><ul><li>Improve reporting capability of Estateman </li></ul></ul><ul><ul><li>Improve data collection on Estateman by all staff </li></ul></ul><ul><ul><li>Recharge of insurance premiums </li></ul></ul><ul><ul><li>Monitoring of casework with Legal Service </li></ul></ul><ul><ul><li>Project control sheets </li></ul></ul><ul><ul><li>Password protection and access to software </li></ul></ul><ul><ul><li>Consider alternative asset management software </li></ul></ul><ul><ul><li>Ensure evidence of authority to transactions is held on file </li></ul></ul><ul><ul><li>Schedules of contents prior to acquisition </li></ul></ul><ul><ul><li>Office procedural manual </li></ul></ul><ul><ul><li>File notes of negotiations </li></ul></ul>
  17. 17. Questions and Answers Lizzie Goodwin - Internal Auditor
  18. 18. Policy and Review Topic Panel B Review of Asset Management - Audit Reports