Estates and capital funding
Expenditure on developing, maintaining, and operating the estate is typically the second largest cost faced by universities after staffing. HEFCW works with estates professionals to support them in delivering an estate that is consistent with their institution's strategic planning, and is both financially and environmentally sustainable. The estate should also offer a positive contribution to the student experience, as well as supporting engagement with the local community through shared use of its sports, cultural, academic, and business facilities.
This document should set out the key objectives for the estate over the next 15 years and provide an analysis of its current performance. The estate strategy provides an overview of the options that have been considered to meet the key objectives outlined in the strategic plan, and identifies the principal capital projects require. In all cases, the estate strategy needs to demonstrate improved performance through proposed developments and ongoing management. The estate strategy should be dynamic, and supported by annual updates and reporting. We expect the estate strategy to be approved by the institution's governing body and for the governors to be regularly informed of progress and any required changes.
Estate Strategies 2011: Circular W11/21HE
The financial forecasts should include details of intended, ongoing and completed capital estates projects, including sources of finance, and also identify changes to estates revenue budgets. They should set out the intended timescales for implementing estate strategy capital projects within the forecast period, and indicate any off balance sheet developments. We expect to see further commentary on the estate contained within the progress monitoring report which all institutions are required to submit by 31 October 2011.
The Estate Management Statistics (EMS) provide a repository of data to enable institutions to assess their performance against their peers, and a way of identifying good practice. The data are also used by HEFCW and the other UK funding bodies to inform our understanding of the sector. The recent transfer of EMS to Higher Education Statistical Agency (HESA) will enable better integration with other key HE data sets and improved functionality through the use of the HEIDI interrogation tool. HEFCW continues to work with HESA the sector and the other UK funding bodies to further develop and improve this important resource.
Effective space management is a key tool in reducing cost and improving efficiency. It also has an important contribution to make in reducing carbon emissions. Effective space management should identify performance, inform capital programmes and encourage creative thinking around multiple use accommodation and shared space. The Space Management Group has developed a number of tools that support a detailed analysis of space utilisation and facilitate benchmarking. This included in 2010 the development of the Model of Estate Costs (MEC) and the Space Assessment Model (SAM) in conjunction with the Association of University Directors of Estates, The Higher Education Funding Council for England, The Scottish Funding Council and the Department for Education and Learning Northern Ireland.
The need to improve environmental sustainability and reduce carbon emissions is fundamental to effective management of the estate and is driven by legislation, funding, and pricing of energy. Circular W08/07HE sets our expectations for institutions to develop and maintain externally verified environmental management systems. There are also additional environmental requirements upon institutions to achieve the BREEAM Excellent rating when constructing new buildings and to meet the Welsh Government recycling requirements W07/30HE. HEFCW expects institutions to actively seek opportunities to reduce carbon emissions through the management and development of the estate, and monitors progress on this through the estate management statistics.
HEFCW seeks to support institutions in reducing their carbon emissions through our partnership with the Carbon Trust Wales. This enables us to provide practical support to energy managers and to undertake a number of studies to relevant to the sector. It also provides access to the Design Advice and Carbon Management service.
Funding for projects that support carbon reduction is available through interest free loans from Salix who are funded by the Welsh Government to provide interest free loans to public sector organisations with qualifying projects. The scheme provides an opportunity for institutions to access funds and repay the capital costs through the revenue savings made in implementing the approved projects.
