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Asset Management

Making a Financial Case: The Loughborough Context ILM Level 5. Asset Management. Fidelma Hannah Planning Office. The Agenda to 4pm today. Loughborough’s planning framework An overview of University Strategy and underpinning plans The planning and budgetary cycle

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Asset Management

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  1. Making a Financial Case: The Loughborough ContextILM Level 5 Asset Management Fidelma Hannah Planning Office

  2. The Agenda to 4pm today • Loughborough’s planning framework • An overview of University Strategy and underpinning plans • The planning and budgetary cycle • Making a financial case for revenue and capital investment

  3. University Strategy – Towards 2016 Implementation/Development Plans Business Plans & Budget Loughborough’s Planning Framework

  4. University Strategy: Towards 2016 • 10 year vision for the University produced in 2006 following detailed consultation and discussion • Identifies clear priorities for development of the University • Reviewed in 2009 and 2011 • Directly influences investment decisions • Plans for further review in 2013

  5. Implementation Plans • Identify ways in which key themes of the strategy will be taken forward. • Led by member of Senior Executive Team • Includes annual statement of priorities • Available on the intranet http://www.lboro.ac.uk/admin/ar/planning/strat_plan.htm

  6. Development Plans • New process for 2012/13 • First Stage of Budget Setting Process • Prepared by PVCs, DVC, COO and DoF • Informed by discussions in Schools & Sections • Provide a longer term view of developments • Discussed widely in January • Directly influence budget priorities

  7. Our Planning Timetable • 23 Nov 2012 – Input from Schools & Support Services • Dec 2012 – Development Plan Deadline • Jan 2013 – ALT,SWT & Ops discuss plans • Feb 2013 – Establish budget priorities • Mar 2013 – HEFCE Grant • April- June 2013– Development of business plans, 2013/14 budget and 5 year forecasts • July 2013 – Council approves Budget & 5 year forecasts

  8. Establishment of Budget Priorities • Skeleton budget – Jan 2012 • Budget priorities discussed by ALT and Ops in February • Factors which will influence this: • Development Plans • HEFCE Grant letter • Five year forecasts including student number forecasts, research income forecasts, etc. • Government & other external policy drivers • Surplus required

  9. Budget for 2013/14 • Based on agreed business plans and support service allocations • Includes assumptions about student intakes, staff turnover, research and other sources of income • Linked to five year forecasts submitted to Council and HEFCE • Linked to Capital Framework • Sets framework within which resource requests are considered

  10. Future Challenges • Longer-term approach to planning and resource allocation • Volatile income streams and greater dependence on student recruitment • Greater pressure on budgets • More emphasis on value for money • Increased student expectations

  11. Making a Financial Case for Revenue • Part of budget process • Bids must be aligned to budget priorities • Demonstrate alignment with Strategy • Recognise financial constraints • Demonstrate the options that have been considered-what can you can stop doing or do differently to divert resources to strategic priorities • Identify benefits • Outline risks

  12. Making a Financial Case for Capital • Investment in Capital Projects is governed by project approval procedures http://www.lboro.ac.uk/admin/ar/planning/projects.htm • Our ability to invest is directly linked to our financial forecasts and the continued generation of surpluses

  13. Capital Framework • Recommended by Operations Committee to Finance Committee and Council as a framework for making decisions on major projects. • Inclusion of project does not mean that it has been approved. • Includes forecast of likely levels of investment • Phasing of projects can change

  14. Project Approval Procedures • Staged Process • Applies to all projects including major and minor building projects, IT projects and large collaborative bids • Decisions guided by Capital Planning Framework http://www.lboro.ac.uk/admin/ar/planning/projects/index.htm

  15. Stages 1 & 2 • Stage 1 – Project Initiation • Outline of project, initial cost estimates, PMB and feasibility funding, alignment with strategy • Stage 2 – Option Development & Independent Review • Detailed project proposal, performance measures, business case and financial summary • Independent Review undertaken by EMC for building projects & by special group for other projects – includes lay members of Council

  16. Stages 3 & 4 • Stage 3 - Detailed design, tenders & costs • Under £1M approved by VC • £1-4M approved by VC & Chair of Council • Over £4m requires Council approval • Stage 4 – Project Implementation • Includes post-project review

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