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

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Presentation on theme: "Asset Management Making a Financial Case: The Loughborough Context ILM Level 5 Fidelma Hannah Planning Office."— Presentation transcript:

1 Asset Management Making a Financial Case: The Loughborough Context ILM Level 5 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 3 Loughborough’s Planning Framework University Strategy – Towards 2016 Implementation/Development Plans Business Plans & Budget

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

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 5

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 6

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 7

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 8

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 9

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 10

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 11

12 Making a Financial Case for Capital  Investment in Capital Projects is governed by project approval procedures  Our ability to invest is directly linked to our financial forecasts and the continued generation of surpluses 12

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 13

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 14

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 15

16 Stages 3 & 4  Stage 3 - Detailed design, tenders & cost s  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 16


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