Acting Chief Estates Officer Health Estates Investment Group Mr Brendan Smyth For Action or Information as appropriate: Chief Executives HSC Trusts Chief Fire Officer Northern Ireland Fire and Rescue Service Chief Executive HSC Board Chief Executive HSC Public Health Agency Chief Executive HSC Patient and Client Council Chief Executive HSC Business Service Organisation Chief Executive Regulation and Quality Improvement Authority Chief Executive NI Practice and Education Council (NIPEC) Chief Executive NI Medical and Dental Training Association Chief Executive Blood Transfusion Agency Chief Executive Guardian Ad Litem Agency Chief Executive NI Social Care Council HEIG Strategic Forum Regional Estate Management Steering Group Health Estates Investment Group (HEIG) Annexe 6/7, Castle Buildings, Stormont Estate Belfast Northern Ireland BT4 3SQ Tel: 028 9052 3918 Facsimile: 028 9052 8201 Website: www.dhsspsni.gov.uk Our Ref: PEL(14)04 Date: 8 August 2014 Dear Colleagues REMOVAL OF DELEGATED LIMITS FOR OFFICE ACCOMODATION LEASES 1. Please find attached minute from Mike Brennan, Budget Director, Department of Finance & Personnel, regarding the removal of delegated limits for office accommodation leases from Department’s and their associated ALB’s. Background 2. You have been advised at scheduled asset management meetings that the Executive’s Asset Management Strategy proposed a range of Property Controls that would deliver efficiencies in the provision of office accommodation across the public sector. A key aspect of the property controls contained within the Asset Management Strategy is that:‘All lease expires in respect of administrative office accommodation will be exited and all lease breaks will be exercised subject to a thorough value for money test considering all other accommodation options available within the Government estate – Exceptions to be approved by DFP’ 3. Please note that DFP has included supporting storage or warehousing within the definition of office accommodation as stipulated in the delegation below. Required Action 4. To address this issue, DFP are with immediate effect withdrawing delegated limits relating specifically to the extension of existing lease agreements, which includes upcoming break options, and the take up of new lease agreements for office and supporting accommodation. In these cases, Departments should submit all ALBs proposals accompanied by a proportionate business cases to their Supply Officer for approval. As a consequence, Departments will be required to remove delegations to ALBs (excluding North/South Bodies) for office accommodation and storage leases. 5. This is a substantive change to DAO (DFP) 06/12 and introduces an additional area requiring DFP approval. It will be numbered 68 in the general delegations section of DAO (DFP) 06/12 with the revised text stating: 68 6. All leases for Office Accommodation (including supporting storage or warehousing) – both new and existing extension or renewal beyond break points. The source DAO (DFP) 06/12 has also been updated on the AFMD website (http://www.dfpni.gov.uk/afmd). This change should be brought to the attention of all ALB’s business areas. It is advisable that all ALB’s should make themselves aware of the new changes. Advice and Guidance from Assets & Estate Management Branch 7. Apart from the attached minute, DFP has not included any guidance on timescales or what they require to be included in the proportionate business case. However, as you are aware the Department has an existing process in place which PEL(11) 01 refers to, which requires all ALB’s to submit a Strategic Outline Case (SOC) to Assets & Estate Management Branch 6 months prior to the renewal of a lease or entering into a new lease. 8. It is advised that current Departmental Business Case Guidance should be used in conjunction with PEL(11) 01 as a guide for completing the proportionate business case for new leases, renewal of leases and now for all upcoming break options in leases. Existing SOCs for Leases 9. Please note that SOCs which have already been submitted to the Assets & Estate Management Branch for lease renewals or new leases may need to be adapted to comply with the new requirements detailed above. 10. Further advice and clarification will be sought from DFP and will we advise you as soon as further information is available. Enquires 11. Should you have any enquiries in connection with this PEL, please contact Paula Jones or Marna Bell at: Asset & Estate Management Branch Health Estates Investment Group DHSSPSNI Room 12 Annexe 7, Castle Buildings Belfast, BT4 3SQ Tel: 028 9052 3809 E-mail: [email protected] Tel: 028 9052 3723 E-mail: [email protected] Yours faithfully Brendan Smyth Acting Chief Estates Officer Mike Brennan Budget Director Public Spending Directorate Room P6 Rathgael House Balloo Road BANGOR BT19 7NA Tel No: 028 91858151 (x 68151) email: [email protected] and [email protected] 28 July 2014 To: Accounting Officer REMOVAL OF DELEGATED LIMITS FOR OFFICE ACCOMODATION LEASES Purpose 1. To advise on the introduction of a new general delegation for all departments, business areas, agencies and arm’s length bodies. Background 2. 3. The Executive’s Asset Management Strategy proposes a range of Property Controls that will deliver efficiencies in the provision of office accommodation across the public sector. A key aspect of the property controls contained within the Asset Management Strategy is that:‘All lease expires in respect of administrative office accommodation will be exited and all lease breaks will be exercised subject to a thorough value for money test considering all other accommodation options available within the Government estate – Exceptions to be approved by DFP’ Supporting storage or warehousing is included within the definition of office accommodation as stipulated in the delegation below. 4. In implementing the Asset Management Strategy and ensuring the optimal use of office accommodation across government, it is important that DFP Supply, supported by the Asset Management Unit within SIB approve all expenditure associated with lease extensions and take up of new leases (supported by appropriate businesses cases), including those relating to Arms Length Bodies (ALBs). 5. At present, expenditure associated with the extension of existing lease agreements or the take up of new leases for the provision of office accommodation will fall within departmental delegated limits, restricting the scope for centralised management of the Government estate required to deliver efficiencies. Required Action 6. To address this issue, DFP are with immediate effect withdrawing delegated limits relating specifically to the extension of existing lease agreements or the take up of new lease agreements for office and supporting accommodation. In these cases, departments should submit all proposals accompanied by proportionate business cases to their Supply Officer for approval. As a consequence, departments will be required to remove delegations to ALBs (excluding North/South Bodies) for office accommodation and storage leases. 7. This is a substantive change to DAO (DFP) 06/12 and introduces an additional area requiring DFP approval. It will be numbered 68 in the general delegations section of DAO (DFP) 06/12 with the revised text stating: 68 All leases for Office Accommodation (including supporting storage or warehousing) – both new and existing extension or renewal beyond break points. 8. The source DAO (DFP) 06/12 has also been updated on the AFMD website (http://www.dfpni.gov.uk/afmd). This change should be brought to the attention of all departmental business areas, agencies and arm’s length bodies. 9. In assessing proposals, DFP Supply will seek advice from DFP’s Reform of Property Management Project Team to ensure that the business case considers all relevant options and is consistent with the objectives of the Asset Management Strategy. Departments are encouraged to seek advice from the Asset Management Unit in preparation of business case’s for the lease of office accommodation before it is submitted to DFP for approval. 10. Details of the property controls set out in the Executive’s Asset Management Strategy are contained at Appendix 1. Further advice on the application of property controls can be obtained from Brian Henning, Project Director of the Reform of Property Management Project ([email protected]). 11. Any other queries should be directed to your Supply Officer. Yours sincerely MIKE BRENNAN cc: Finance Directors Supply Officers John McKibbin Joanne McBurney Jack Layberry Peter Jakobsen Scott Wilson Brian Henning Stephen Barrett Jeff McGuinness Paddy Hoey Appendix 1 Proposed Property Controls Property Controls were introduced in The Government Property Unit’s (GPU) 2010 State of the Estate Report as a means to generate financial and occupational efficiencies from the Government estate in England. The controls focus on exercising more influence over the taking and exiting of leases and mandate space standards for occupation in new and refurbished buildings. In the first year of implementation GPU achieved a saving of £48m as a result of a lease moratorium. This paper sets out, for discussion, principles and suggested property controls for application in Northern Ireland. Principles 1. Value for Money of leaseholds to be tested thoroughly at lease events such as breaks, expiries or business cases for new takes. 2. Asset Management Plans to become an integral part of the overall estate management process and inform the centralised estate management unit annually of occupier’s accommodation needs and plans in a timely manner over a rolling 5 year period. 3. Focus on improved use of owned / freehold buildings. 4. Space utilisation to be improved to facilitate relocations from lease expiries. 5. Effective identification and disposal of surplus assets through rigorous utilisation testing. 6. Improved recording of detailed asset information through the use of ePIMS (Electronic Property Information Mapping System). This will also support the production of an annual State of the Estate Report (SofTE). 7. Continuous improvement in the operating cost base of Government’s assets through effective procurement and monitoring of cost inputs through benchmarking. Controls 1. Space utilisation target of 9-11 m2 per workstation for all administrative buildings, owned and leased, and 7-9 m2 per workstation in contact centres. 2. The costs of dilapidations, alterations and refurbishments required to achieve the utilisation targets will be required to meet the DFP’s ‘Invest to Save’ criteria. 3. Presumption that all lease expiries in respect of administrative office accommodation will be exited and all lease breaks will be exercised subject to a thorough value for money test considering all other accommodation options available within the Government estate – Exceptions to be approved by DFP. 4. Departments to produce a commensurate business case in advance of lease end or lease break containing appraisal of options for relocation within the freehold estate or renewal or re-gearing of existing leases. This business case is to include an explicit consideration of agile working in the preferred option. 5. Centralised estate management unit to approve all relocation and lease renewal business cases. 6. Property occupation costs to be reported upon annually to determine the most and least efficient assets within Central Government. Below Average performing assets are to be targeted for a time bound action within the appropriate department’s Asset Management Plan to improve the performance of the asset. It is recognised that items of one-off expenditure have the potential to skew this annual review. To address this, any items of non-recurrent expenditure will be highlighted and assessed separately. Resource Implications Departments will be required to provide appropriately skilled resources to: 1. Prepare their annual asset management plans. 2. Work with the central unit to implement and monitor the property controls within the Department’s asset management plan and ensure efficient decision making on strategic asset management. 3. Prepare business cases for relocation in advance of lease ends and lease breaks. 4. Populate and verify ePIMS data on an annual basis. 5. Support the production of the annual SofTE report.
© Copyright 2024 ExpyDoc