Asset transfer for the voluntary and community sector

Policy and process guidance note

Policy3

Guidance3

Process 4

Business plan checklist5

Policy

  1. Cornwall Councilrecognises and supports the contribution that the voluntary and community sectorbrings to the vitality and well being of communities across Cornwall. Where a community group has a business plan for delivering activities and services from a council owned asset, the Council will consider a request to transfer that asset. There are though both risks and benefits in asset transfer and the following objective tests need to be applied:
  2. Arequest to transfer a council asset to a voluntary or community groupmust:

•Support the aims and priorities of the Council to enable efficient and effective service delivery

•Provide added value/benefit to the local community and where applicable reduce costs for the Council by improved services at a local level

•Facilitate improved efficiency and effectiveness in service delivery when viewed from the perspective of both the Council and the group

•Ensure that the group requesting the transfer have the capability and capacity in place to manage both the asset and/or service to be transferred

  1. Evidence in support of the process must include the following:

•A business plan which establishes the benefits to the community of the group’s activities or services

•A strategic assessment by council officers which evaluates the impact and implications of the proposed transfer against:

  • The Council’s business plan and its direction of travel for future delivery of services and enhancing the well being of local communities
  • Current arrangements for the delivery of council services including existing contracts service level agreements and funding
  • Competing priorities around the use or need for an asset

Guidance

  1. The need for community and business plans is proportional to the complexity and value of the transfer. For example, if a community group wish to transfer a small area of amenity land it will be acceptable for the group to evidence that they:

•Are formally constituted and have the resources, capacity and expertise to take on and manage the asset

•Have developed and adopted a vision, mission and aims statement which reflects the needs and priorities of the local community

  1. In all asset transfer proposals a simple but clear business case must be prepared which:

•Identifies why the group wish to take on the asset

•Explains how it will effectively manage and maintain the asset

•Stateshow the proposal will benefit the local community and/or help achieve the Council’s aims and objectives

  1. The preparation of the business case will assist the group to gain an understanding of the implications and risks of what it is proposing and be the focus for initial dialogue with the Council’s community network managers, property staff or other service managers.
  2. In more complex cases, where for example largebuildings, complicated finance and grant packages, significant capital investment or new staff are involved, a more developed formal business plan will be required (guidance on the content of business plans is given inthe business plan checklist).
  3. The localism team within the Council are charged with the promotion and development of partnership working with local communities, it is therefore appropriate that any dialogue between the Council and groups begins with this team.
  4. Where assets rather than delivery of services are core to the request then a property professional will lead the process.
  5. The Council will seek to manage risks and rewards associated with asset transfer by way of a long lease (typically up to 99 years) on terms appropriate to the transfer of risks and obligations.

Process

•Step 1 - an informal dialogue between the group and the Council’s community network managers, property services’ general estate manager and where appropriate a service affected by a transfer to establish the scope of the request and the readiness of the group to progress.

•Step 2 - the group formally submits a request to the community network manager using a delegated decision notice formthat outlines the proposal and briefly addresses the points set out in the business plan checklist which forms the basis of their business case.

•Step 3 – the community network manager consults with the Council’s property services’ general estate manageror the relevant council service manager to consider and decide on the request. This may:

  • Flag over-riding strategic priorities that would prevent a transfer of a service or asset
  • Delay a decision for a period of time, i.e. awaiting the outcomes of a review, strategy, council business plan or option appraisal
  • Address the need for a more detailed and documented proposal before proceeding further (proceed to step 6)
  • Accept the business case and proceed to step 8

•Step 5 – the community network manager responds to the group setting out the Council’s initial decision on the request.

•Step 6 – the group submits a stage two application with itsbusiness case and (if necessary) a business plan, referenced to supporting documents and aligned to the objective tests in the policy note, through the community network manager for review and then onward submission to property services’ general estate manager.

•Step 7 - property services’ general estate managerwill consider the business plan, consult with the relevant council services and:

  • Advise the group through the community network manager that the plan is not acceptable
  • Advise the group through the community network manager that the plan needs to be re-worked
  • Recommend acceptance of the plan

Decisions on disposals and delegated decision making are governed by the Council’s constitution and currently are subject to a decision by the cabinet where the transfer is for less than market value or by the portfolio holder for resources where at open market value.

•Step 8 – property services’ general estate managerwill produce and submit a council business case in a delegated decision notice or cabinet report balancing the group’s request and business case/plan against other council priorities for the assetand recommending the heads of terms for the transfer.

•Step 9 – property services’ general estate managerinforms the group of the outcome of the cabinet or portfolio members’decision through the community network manager with the relevant cabinet minute or decision notice.

•Step 10 – property services’ general estate managerand the Council’s legal service will agree heads of terms with the group’slegal advisors and affect the transfer of the asset.

Business plan checklist

•Meeting county wide priorities:

  • Demonstrate alignment with the Council’s plans and strategies and the sustainable community strategy

•Meeting local priorities:

  • Reference with community plans or council minutes or resolutions demonstrating that the request for transfer meets local community priorities
  • A statement setting out the benefits to the local community

•Improving service delivery:

  • A statement that demonstrates that the transfer of the asset supports an improvement in local service delivery

•Resources:

  • A statement that demonstrates the capacity and expertise within the group to operate and maintain the asset
  • A statement (evidenced by financial accounts) that the group has sufficient income to support the asset
  • A financial plan and programme showing how the maintenance and running of the asset will be funded over a period of years

•Investment:

  • A sustainable plan for capital investment in the asset
  • Funding sources that would not otherwise be available to the Council

•Risk:

  • A contingency plan in the event that the group fails to meet its obligations to maintain the asset safely
  • Evidence of policies and procedures to ensure the safety and wellbeing of the local community and staff when using the asset
  1. This list is not exhaustive and any business plan will need to be tailored and proportional to the complexity of the transfer. A simple transfer of allotment land with no alternative use, strategic influence or potential development value may only need a letter setting out the principles above. More complex transfers involving significant capital investment and resources will need to be supported by a report.

Prepared by:

Chris Jackson

Policy and Training Manager

Property Services

24 February 2012

If you would like this information
in another format please contact:

Cornwall Council
County Hall
Treyew Road
Truro TR1 3AY

Telephone: 0300 1234 100

Email:

Asset transferfor the voluntary and community sectorPolicy and process guidance note 1

Version 1.0