Capital Funding for Academies

Mark Hayward – EFA Capital Division

CPC ConferenceMay 2014

Purpose

Raising your awareness of key issues

Importance of strategic planning and understanding risk

Arrangements for Round 2 - 2014 to 2015

Context

Significantly reduced capital investment budget for DfE – sharper focus on funding priorities

Increasing numbers of converter academies – highly competitive environment

Academies Capital Maintenance Fund

Established in 2011

Ministerial focus on tackling building condition issues

Expanding, popular and successful academies

Academies Capital Maintenance Fund

Almost 2000 academies funded to date

ACMF 2014 to 2015 Round 1 ACMF 2014 to 2015

– 2015 academies, 3300 projects, requesting £1.4 billion– Allocations of £394 million to 1,134 academies for 1,388

projects

Round 2 ACMF 2014 to 2015 – for 1 building condition project only at:

– academies that open from 2 December 2013 to 1 June 2014 that did not apply in Round 1

or– schools with a signed academy order at 1 June 2014 that did

not apply in Round 1

Boiler and Heating system projects

A new approach in partnership with Salix Finance Using interest free loans to support a sustainable way of

funding boiler and heating system projects Energy savings cover the repayments Frees up future funds for other works Moving from reactive to preventative maintenance 260 applications worth almost £75 million – funded 190

schemes worth almost £50 million

Considering how we can extend the principle for other types of project in the future

What makes a good ACMF bid

Clarity – if you can’t meet the word limit, perhaps the project needs further thought

Evidence that matches the stated priorities – we get too many bids for desirable projects

Sensible costing – a scope of works that’s appropriate together with quotes

What makes a good ACMF bid

A good project plan – an understanding of how works will be phased (particularly during term time) and of key risks

Proportionate options appraisal – so we understand your thinking

“Before you apply” – section in the guidance

Strategic Estate Planning Why?

– Support and deliver the school’s vision– Understand (and manage) legal responsibilities– More cost effective than crisis management– Good governance

Why not?– Too difficult– Perception that requires costly consultant support– Other priorities

What a good strategic plan might look like

Managing an ACMF project

Prepare well– Getting the right advice, early– Identify the right procurement process for you

• One off project? Phased development?

Understand and manage risks– Importance of contingency and continuous value

engineering

Managing an ACMF project

Aim to be a good client– Have a team in place to oversee, challenge and

support– Governance arrangements

Manage your stakeholders– Staff, pupils, parents, neighbours, EFA

The risk is yours, the responsibility is yours, but the rewards are yours too!

Proposed Timetable for Round 2 ACMF 2014 to 2015

Action Date

Guidance available on website Mid May 2014

Online application portal opens By 13 June 2014

Recommended target date for

submitting applications

16 July 2014

Deadline for submitting applications 21 July 2014 at 3pm

Target date for notifying successful

projects

Mid October 2014