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Annual Consultants’ Briefing. 24 th September 2018. Diocese of Blackburn Board of Education Family of Schools. Role of the Capital Buildings Consultant. Capital Estate Consultants. The Board of Education currently has 15 validated Capital Estates Consultancies
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Annual Consultants’ Briefing 24th September 2018
Diocese of Blackburn Board of Education Family of Schools
Capital Estate Consultants • The Board of Education currently has 15 validated Capital Estates Consultancies • Each Voluntary Aided School has an appointed Consultant to manage Capital Estate works. • The Consultant is appointed by the Governing Board of the school • It is important to have a strong relationship with the Capital Estate Consultant • We advise that Consultants are not changed regularly.
Role of the Consultant (1) • The sole professional employed by the school. The Capital Buildings Consultant shall employ all other professional disciplines required to implement any building project and be responsible for the management of the building projects 2. It shall be the Capital Buildings Consultant’s responsibility to: • Obtain all necessary surveys, special reports, specialist services and statutory approvals including planning and building regulations • Advise on any legal issues relating to a project and ensure they are resolved • Ensure all other requirements are in place for the successful delivery of projects • Advise the school on all building matters including repairs and maintenance, refurbishment, alterations, extensions and new buildings to address condition, suitability and sufficiency of the school’s premises.
Role of the Consultant (2) • Prepare building development plans for a five year period. The plan shall be such that it can be phased and these phases prioritised. • Advise on all financial matters relating to buildings including available funding streams, financial liabilities and the financial management of building projects. • Liaise, on behalf of the school, with Dioceses, Local Authorities, DFE, EFSA and other relevant bodies and prepare submissions, on behalf of the school, obtain approval for schemes requiring DFC funding and to bid for LCVAP funding. • Visit the school at least twice a year to discuss building requirements
Insurance • If a VA School elects to take out property insurance via the Diocesan block arrangements with the Ecclesiastical Insurance Group (EIG) then the standard policy includes cover for building works which are subject to any JCT Minor, Standard or Intermediate Building Contract but only where the OUT-TURN value of the contract does not exceed £125,000 • If the Value of the works is over £125,000 (or if the work is being carried out under a non-JCT contract) then the CONSULTANT must complete an EIG Building Works Questionnaire and submit this to the EIG in advance of the works starting. • If any consultant fails to arrange insurance cover for any works that they are organising on behalf of a VA school governing body then they could potentially open themselves up to personal financial risk.
Sources of Funding • DFC. This is a formula-driven amount of money given to each school each year to be spent on capital projects. Schools can accumulate their DFC for a maximum of 3 years to save up for a more significant building project • LCVAP. This is a Government Grant to help ensure schools are kept in good condition, and to support major capital works. Schools can bid into a competitive process to secure LCVAP funding for their building projects • HPCF. Healthy Pupils Capital Funding. This has been treated the same as LCVAP. • School Funds/Governor Contribution. This includes reserves and any money in the Barchester account • SALIX Funding. This is a loan arrangement for projects which can satisfy certain energy saving criteria. The loan is paid for in savings from the more energy efficient solution.
Devolved Formula Capital (DFC) • Formula Capital allocation based on a lump sum plus an amount per pupil. This allocation shows the amount which can be spent on small scale capital work or as a contribution towards a larger project. • The money can be rolled forward for three years, but any money not spent after three years will be lost (the DBE will inform schools and Capital Buildings Consultants if there is a danger of this occurring). • The DBE holds schools’ DFC on behalf of most schools, and schools and consultants are advised each year of the amount that has been received and the balance held.
Devolved Formula Capital There are three important figures to know with regards DFC • The total amount of DFC available to your school • The amount which needs to be spent by the school in the current financial year to avoid it being clawed back • The amount which is allocated school for the current year.
Devolved Formula Capital • It is possible to fund projects using just DFC Funding. • These tend to be smaller projects (under £10,000) • As DFC is grant-aided funding there is always a 10% liability on DFC funds. • We always quote DFC at 100% unless stated otherwise • For DFC projects the Board of Education still needs to receive a VA Application Form. This is to enable us to release the DFC to the project and to give Trustee Approval for capital works.
LCVAP • Larger projects are usually funded by this grant. Each LA is allocated funds depending on the number of pupils in VA schools in their authority. Officers of the DBE negotiate with the LA and other diocesan colleagues (including the RC dioceses) in order to receive allocation for projects. • Schools can only apply for this grant through their Capital Estate Consultants using the Bidding Process. The bids always exceed the finance available and consequently not all bids are successful. The work must be completed within the agreed timescale, in order to ensure funds are expended within the relevant financial year.
Governor 10% Contribution • It is the Governors responsibility to be able to fund 10% of the total Grant-Aided element the project. Grant Aided funding includes both LCVAP and DFC funding. • It is essential that schools are able to commit to the 10% contribution at the time of bid submission • If schools are unable to commit to the 10% at the time of the bid; please let us know immediately.
Governor Additional Contribution • If schools have funds available over and above the 10% that they are willing to contribute to this should be clearly stated. Projects are much more likely to be successful if schools are able to contribute more than the required 10%. • In 2018-19, 12 projects in Lancashire had additional contributions, amounting to £262,000. • Additional funding can come from school’s Barchester – which we will check and suggest where additional funding may be possible • Additional funding can also come from School Reserves if they are significantly above a reasonable reserve sum.
LCVAP 18-19 Issues • Generally decent standard of Bids • Significant number of projects really late in submitting VA Forms • Difficulty in then receiving the schools 10% contribution (currently £433,000 outstanding) • Late tendering of projects despite early ‘go ahead’ from Board of Education • Having projects ‘on the ground’ before even EFSA Approval – RISK! • A number of projects significantly under-estimated costs, particularly around M&E.
LCVAP 18-19 Issues (2) • In VA Form Grant Payment Profile (section 7) please put all the LCVAP as early as possible. We can then hold the money. Phasing it does cause some cash-flow issues. • If there is any underspend on projects then please let us know asap. • SALIX – working with SALIX to get payments made to the Board of Education not the school (although schools remain liable for repayments) • SALIX won’t give any loans to projects which are underway!
Suggestion It’s become increasingly difficult to find good smaller size contractors in the £50k - £200k range so perhaps all consultants could contribute to a shared database held by the Diocese which is regularly updated and could cover a number of KPI’s. Perhaps schools could also contribute to the list with feedback on performance ?
Discussion How have Consultants approached conversations with the schools about what can be done during school time. The staggering of the LCVAP schemes would reduce pressure on contractors.
LCVAP 2019-20: Change of Approach • Had nearly 70 unsuccessful bids from the 2018-19 round • Many were condition bids that whilst not desperate did require some fairly urgent attention • From the 2018-19 bids we have a fair idea of the pressing needs across the school portfolio • Therefore we’re going to utilise that knowledge in constructing a programme for 2019-20 • EFSA have already confirmed that LCVAP funding will be at 2018-19 levels and the process will run as in previous years
LCVAP 2019-20: Change of Approach • From unsuccessful 2018-19 bids were have already constructed an indicative programme for 2019-20 • Looking to allocate about 85% of the available funding through the use of 2018-19 bids • Indicatively allocated funding to 31 projects • Including phase 2 of those which we phased in 2018-19
LCVAP 2019-20: Change of Approach:Next Steps • We will re-examine these projects shortly and then inform you what is on the list • We will also give you an indicative funding breakdown • LCVAP • DFC • Additional Contribution (using knowledge of Barchester and Reserves) • SALIX • Please liaise with schools to ensure it’s still the priority and that they agree with the funding breakdown. • If there are any changes to the project – or the project cost – please liaise with us
Deadline: 7th December • Confirmation and agreement on all 2018-19 projects • Submission of new bids: • High Schools • Emergency/school closure projects • If a Consultant is new to the school • Other bids will be accepted but it is unlikely they will be successful in this round (although more chance if a significant element of NGA funding is available) • We will then run a ‘mini’ selection process with the new bids in order to allocate the 15% remaining funding. • We will look to complete that by early February.
Priorities The order of Priority will still remain: • Condition, Safeguarding and Health and Safety • Sufficiency • Suitability Priority will therefore generally be given to: • Roofs which need repair or replacements • Boilers which need replacement • Windows which need replacement • Toilets which need to be added or refurbished • Structural work • Replacement electrical work • Health and safety drainage work • Safeguarding entrances • Fencing and walls for safeguarding purposes
Board of Education Process Review • Looking to review some of our processes prior to 2019-20 LCVAP Round • Changing payment terms – maximum of 28 days but hopefully utilising two-payments runs within a month • Shifting from cheque payment to BACS • Re-assessing Audit Requirement to determine extent we can reduce paper transactions. • Others?
LCVAP 2020-21 • EFSA recently announced changes to LCVAP for 2020-2021 • Shift in allocating funding to Dioceses rather than Local Authorities for Church VA Schools • Means therefore that we cut out the loop of having to inform Local Authorities of project before EFSA will approve. • Will therefore give Blackburn Diocese ability to vire between Local Authorities, which in particular could benefit schools in Wigan and Blackburn with Darwen
