ASSET MANAGEMENT STRATEGY

ASSET MANAGEMENT STRATEGY Introduction Kingston and Wimbledon YMCA is a diverse organisation that operates from eleven separate sites in South West London and Surrey. It provides a range of services including supported housing; residential Care Homes; sports, health exercise and fitness; children s work; catering and community focussed services. The Association is committed to ensuring that it has an effective and appropriately resourced Asset Management Strategy in place to ensure that lands and buildings owned, leased and used by the Association are well maintained, managed, fit for their specific purpose and that strategic plans are in place for future usage in an increasingly volatile and changeable environment. As a Registered Social Landlord, the Association is subject to the Housing Corporation s Regulatory Code which requires Housing Associations to ensure that they properly manage their assets via an appropriate Asset Management strategy. In addition, the Government has indicated that they expect all RSLs to meet the decent homes standard by 2010. As a supporting housing provider, the Association is keen to ensure that it provides accommodation of a high standard that remains affordable to those in need. This strategy sets out what Kingston and WimbledonYMCA understands Asset Management to be and how it will go about developing an effective asset management plan, based upon its business objectives and strategic plan. The responsibility for agreeing and monitoring this strategy rests with the Board of Management. Its implementation rests with the Chief Executive and the Senior Staff Team. The Association currently owns/operates from the following separate locations:- Central Administration Offices St James House, St James Road, Surbiton, surrey KT6 4QH Surbiton Centre 49 Victoria Road, Surbiton, Surrey KT6 4NG (Supported Housing, Child Care, Health and Fitness, Food and Beverage, Conferences) Hawker Centre Lower Ham Road, Kingston-upon-Thames, Surrey KT2 5BH (sports, health, exercise and fitness; children s work, food and beverage services, community activities) 1

16 Victoria Avenue, Surbiton, Surrey KT6 5DL (Supported Housing) 18 Victoria Avenue, Surbiton, Surrey KT6 5DL (Supported Housing) 18 Balaclava Road, Surbiton, Surrey KT6 5TN (Supported Housing) 58 Upper Brighton Road, Surbiton, Surrey KT6 (Supported Housing) David Ensor House 6 Parsons Green, London SW6 4TQ (Housing) Rodney House, Newhall Gardens, Rodeny Road, Walton-on-Thames, Surrey KT12 3LE (Care Home) The Summers, High Street, West Molesey, Surrey KT8 ONA (Care Home) Langdown, High Street, West Molesey, Surrey KT8 ONA (Care Home) Wimbledon Centre 200 The Broadway, Wimbledon SW19 1RY (Supported Housing; Children s Work; Sports, Health, Exercise and Fitness; Food and Beverage) Tower Lodge, Trinity Road, Wimbledon SW12 (Central Administration) Olympic House, 196 The Broadway, London SW19 (Office Rental) What is Asset Management? Land and property assets are held by the Association to support the main business objectives of the Association, which are to provide supported housing for vulnerable people, and a range of community focussed charitable activities, including the provision of services to children, young people, the elderly, those with physical and learning disabilities and for recreational purposes. The Association s property resource will be managed in such a way as to maximise the quality and range of services that the Association provides in a sustainable and efficient manner. Effective asset management is vital to the fulfilment of the Association s strategic plan property is the most valuable asset that the Association has, and yet it requires constant attention in order to maximise its value and maintain a strong balance sheet for the Association. Linking our assets to our objectives In February 2003, the Board of Kingston YMCA approved a two year Strategic Plan. This was reviewed in April 2004. This plans sets out the Association s vision, values, ethos and overall strategy for 2003 2005. In order to achieve the overall strategy nine key goals have been identified. A number of the sub sections to these key goals include issues that should be considered within the context of an asset management strategy. These are:- 2

2.1..Review the use of our housing stock in order to respond to local supporting housing needs. 2.2..Develop new, small, community based housing projects for those with specific support needs. 2.6..Wherever practicable provide access to all of our buildings and activities for those with disabilities. 6.4..Professionally re-value our property stock on a regular basis. 6.13..Review the use of space in all of our buildings in order to ensure that we are maximising our income. 6.14..Ensure that our buildings are adequately maintained, that a planned maintenance plan is adopted and that adequate investment is prioritised. This asset management strategy starts the process of establishing an asset management plan that seeks to meet the key objectives of the Association as outlined in the Strategic Plan. In addition, the Board has agreed a range of policies and procedures including Equalities and Diversity, Disability, Maintenance and a Risk Strategy. The Association s Risk Register indicates 25 key risks faced by the Association and seeks to ensure that those risks that could have a negative impact on the on-going viability of the Association are effectively managed. All of these policies and strategies need to link in to the Association s asset management strategy. Asset Management strategy The Value of our assets As at the year ending 31 st March 2003, Kingston YMCA had property assets with a net book value of 7,537,848, based upon the following breakdown:- Housing Properties Care Homes Total Gross Book Value 6,295,773 4,200,000 10,495,773 Capital Grants Received (2,775,619) (2,775,619) Acc. Depreciation ( 119,089) ( 83,217) ( 202,306) NBV 3,421,065 4,116,783 7,537,848 For the financial year ending 30 th September 2002, Wimbledon YMCA had property assets with a net book value of 1,094,989 based upon the following breakdown:- Housing Properties Non Housing Total Gross Book Value 854,119 1,108,909 1,963,028 Capital Grants Received (705,853) (705,853) Acc. Depreciation - (162,186) (162,186) NBV 148,266 946,723 1,094,989 In addition Kingston and Wimbledon YMCA was granted a ten year contract (in February 2000) to operate and manage the YMCA Hawker Centre, a sports facility owned by The Royal Borough of Kingston-upon-Thames. The Royal Borough remain responsible for major capital works at the centre, whilst Kingston and Wimbledon YMCA is responsible for day-to-day maintenance. However, it should be 3

noted that the Association invested a significant amount of its own resource into the building between 2000 2001. The total value of the Association s property assets are significant and therefore provides the Association with a strong balance sheet and the potential for on-going borrowing and, therefore, opportunities for development. Demand The demand for the Association s housing stock and community facilities remains high. Occupancy for the period ending 31 st March 2003 was in excess of 95%. The community facilities remain well used. However, the need for on-going planned improvements has been highlighted and a feasibility study has been undertaken to consider improvements to communal areas and community facilities at the Surbiton Centre. A budget of 200,000 has been allocated for this purpose within the Association s Capital Budget, spread over two financial years. This Are our properties fit for the purpose? Generally, yes. Planned and cyclical maintenance, as well as long term strategic development plans will need to be considered as part of the preparation of an asset management plan to ensure that the Association s Housing Stock and community facilities remain fit for the purpose. The asset management plan will need to consider the long term future of the four Move On properties, to consider how these should be used in order to more effectively meet the supported housing needs of the Royal Borough of Kingston-upon-Thames and The London Borough of Merton. Discussions have already commenced with the Local Authority to consider future options. Stock Condition A full stock condition survey has not been carried out recently. This is scheduled for the middle of 2004. However, in order to comply with recent legislative changes David Ensor House and The Surbiton Centre have recently had asbestos surveys carried out. Planned/Cyclical Maintenance The Association has allocated 190,000 per year from 2004 until 2008 for Capital Expenditure. Much of this will be spent on the Association s buildings. A more detailed plan as to how this resource is to be expended will be contained within the Asset Management Plan. Responsive Maintenance Responsive Maintenance is mainly carried out by the small team of in house maintenance staff. The association s Maintenance Policy requires maintenance work to be carried out within the following timescales:- Emergency Repair (priority 1) Within 24 hours 4

Urgent Repair (priority 2) Within 7 calendar days Routine Repair (priority 3) Within one calendar month. Performance against these response times are reported quarterly to the Board of Management. The Association has recently appointed a professional Facilities Manager who will take responsibility for managing this service in order to provide the most effective service possible. A review of the staffing complement of this team will be carried out by March 2004 in order to ascertain whether the current skills mix and staffing compliment are appropriate. A complete review of the Association s contractors will be carried out by March 2004 in order to ensure that we are receiving value for money and quality services. Responsibility The responsibility for the implementation of the Asset Management Plan currently rests with the Director of Operations, a member of the Senior Staff Team. He delegates many of her responsibilities (on a day to day basis) to the Facilities Manager. Residents and User Involvement Maintenance and Asset Management issues are regularly discussed at the Resident s Consultation Meetings and at User Forums. The Board are currently reviewing the Association s Governance Structures in order to facilitate a more focussed engagement of users and residents in the Association s Governance Structures. Consideration is being given to the establishment of quarterly Centre Consultations Forums, which will include membership of residents, participants, users, members and community leaders. These will be based at the four main Association sites. One of the key responsibilities of these groups will be to recommend changes to the ways that the Association manages its assets to the Board of Management and to consider long term investment strategies. Value for Money The Association needs to focus more of its attention of whether it is achieving value for money in relation to the services it provides from contractors, suppliers and utility providers. The Association has recently appointed a part-time (2 days per week) Accountant who is a Fellow of the Chartered Institute of Management Accountants. He works directly for the Finance Director and is currently undertaking a fundamental review of all services provided to the association. This has included reviewing utility charges, telephone facilities, community charges and rates etc. This has already resulted in almost 20,000 worth of savings to the Association. This work will continue and will shortly focus, in consultation with the Facilities manager on reviewing the approved list of contractors. Development of an Asset Management Plan 5

The above strategy will provide the Association with the framework for developing an asset management plan that will be linked to the Association s Strategic Development Plan. This plan will include estimated costings for remedial work and improvements to the Association s property assets. This will then be assessed against the available resources that the Association has in its Capital Budget, in order for desired improvements to be prioritised. Work will be prioritised on the following basis:- 1. Health and Safety requirements 2. Legislative and regulatory requirements 3. Improvements that will increase the sustainable development of the Association 4. Improvements that will increase income streams to the Association. 5. Improvements to existing services. It is anticipated that the Asset Management Plan will be considered by the Board of Management in the Summer of 2004. 6