12 Resource Allocation – Capital

12.1 Overview

Capital resources are generally scarce and a resource allocation method is therefore required.  In all cases there must be shown to be sufficient revenue budget available to cover all revenue liabilities in the future including maintenance of the asset.  The allocation of capital resources must fit with corporate objectives and service improvement priorities.  The Council has a combined Capital Strategy and Corporate Asset Management Plan with an integrated approach to capital resource planning and management.

The Capital Strategy:- identifies the capital funding available, states the Council’s investment priorities at a strategic level, describes the procedures for deciding between competing investment options, and details the three year capital programme, together with the monitoring arrangements that will ensure the delivery of these capital projects.

12.2 Responsibility/Accountability

12.2.1 Cabinet (click here for all responsibilities for the Cabinet)

Agreeing a method of allocating resources within the Capital Strategy.

Allocating capital funding, in consultation with the Scrutiny and Review Panels, following advice from the Asset Management Group.

12.2.2 Directors (click here for all responsibilities for Directors)

Ensuring that corporate objectives and service improvement priorities are reflected in the allocation of capital resources.

Leading on the development and improvement of a resource allocation method.

Leading in the development and improvement of the Capital Strategy.

12.2.3 Section 151 Officer (click here for all responsibilities for the Section 151 Officer)

Preparing a resource allocation method in consultation with Chief Executive, Directors, Business Unit Heads and other relevant Officers.

Advising on the maintenance of the resource allocation method.

Monitoring compliance with the resource allocation method and making appropriate recommendations.

Developing a minimum of a  three year Capital Programme, taking account of significant projects beyond this timeframe.

Monitoring the robustness and affordability of business cases, and endorsing capital proposals.

Preparing a Capital Strategy as part of a combined Capital Strategy and Corporate Asset Management Plan.

12.2.4 Business Unit Heads (click here for all responsibilities for Business Unit Heads)

Producing robust Business Plans for their services including full revenue implication analysis, and exit strategies if relevant.

Working up Asset Management Plans for their services.

Preparing Capital bids supported by a robust business plan.

Propose treatment for obsolete assets.

12.3 Policy (click here for the detailed procedures)

The policy for allocating capital resources is given in part IV.

Link to Medium Term Financial Plan