Management of the MPA Estate Audit re (“Action Stations”) by District Auditor

Report: 8
Date: 04 April 2002
By: Commissioner

Summary

To consider the review of the Management of the MPA estate by the District Auditor and the resultant Action Plan.

A. Recommendations

1. The findings of the District Auditor (including the current strengths in management of the MPA Estate), as well as the Action Plan for change, be noted.

B. Supporting information

1. The District Auditor undertook a review of the management of the MPA's estate over the last three months of 2001. This has now been published. It covers:

• a review of Estate Strategies policies and plans;
• interviews with Property Services, Finance and two Finance Resources Managers;
• analysis of Data

2 Its findings endorsed many aspects of the estate's management and related procedures. It concluded that the "MPA is committed to improving the effectiveness of its estate portfolio." A number of areas of good practice were identified which help the MPA secure a value for money approach to the management of its estate. These include:

• a formalised estate strategy, including second level strategies for all types of property (such as HQ buildings, residential estate);
• regular analysis of the need to maintain a residential estate to assist as a tool for recruitment and retention;
• use of a comprehensive database to manage and monitor all properties;
• commitment to a facilities management and direct labour contracts that have adopted best value principles.

3. However, the audit highlighted some areas where arrangements could be improved and these are attached in an action plan as part of the Summary of the Report at Appendix 1 (see Supporting material).

4. In addition it noted that Property Services Department (PSD) had generated receipts of approximately £40m per annum over recent years whilst capital investment for Land and Buildings has fallen, with only £27m invested in 2001/02 and further reductions projected for 2002/03. It considered that the MPA should investigate the potential for partial ring fencing of capital receipts to incentivise borough-based staff and to improve investment in the estate by continuing initiatives currently proposed. It also noted "that the structure of PSD is clear and structured. The Business Plan identifies the roles and responsibilities of groups within the department and is also clear and easily understood." Finance and Resource Managers raised comments over the consistency of consultation with property specialists. However, the adoption of the action plan is expected to secure Best Value from estate management.

C. Financial implications

The report proposes changes to future Land & Building Capital Programme through partial ring-fencing of capital receipts, and for revenue spend, priority being afforded to reducing estate maintenance backlog. Additional costs will be identified separately.

D. Background papers

• "Action Stations" Audit Commission report.

E. Contact details

Report author: Trevor Lawrence, Director Property Services Department, MPS.

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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