BUILDINGS FOR BUILDING THE KINGDOM Trustees The Trustees

BUILDINGS FOR BUILDING THE KINGDOM

Trustees The Trustees have some buildings and land responsibilities: • Each VA and VC Church of England School is basically a Charity which is created by a Trust Deed. • In basic terms, the Trust Deed sets out that the Church grants the School the right to use the school building provided that it upholds the conditions of the Trust Deed. • All the major capital assets of the school are under the ownership of the Trust (including school houses).

Responsibilities of the Governing Body of VA Schools There are certain statutory requirements of Voluntary Aided School Governing Bodies with regards to buildings. These include: 1. Securing permission for any capital works undertaken on the school building involving governors’ liability 2. Effective Management of the Devolved Formula Capital (DFC) 3. Effective Insurance arrangements

School Building Consultants

Role of the Consultant 1. The sole professional employed by the school. 2. It shall be the School Building Consultant’s responsibility to: • Obtain all necessary surveys, special reports, specialist services and statutory approvals including planning and building regulations • Investigate any legal issues relating to a project and ensure they are resolved • Ensure all other requirements are in place for the successful delivery of projects 3. Advise the school on all building matters including repairs and maintenance, refurbishment, alterations, extensions and new buildings to address condition, suitability and sufficiency of the school’s premises.

Role of the Consultant 4. Prepare building development plans for a five year period. 5. Advise on all financial matters relating to buildings including available funding streams, financial liabilities and the financial management of building projects. 6. Liaise, on behalf of the school, with Dioceses, Local Authorities, DFE, ESFA and other relevant bodies and prepare submissions, on behalf of the school, obtain approval for schemes requiring DFC funding and to bid for LCVAP funding. 7. Visit the school at least twice a year to discuss building requirements

Funding Capital Building Works

The Important Numbers • 100% • 97. 5% • 90% • 20% • 15% • 10%

Capital Project Costs 1. Basic Building Work 2. Preliminary Costs & Contingencies 3. VAT at 20% on the actual building work 4. Professional fees at 15% of that total 5. Additional VAT at 20% on the professional fees 6. Other Fees (usually with VAT added) 7. Gives TOTAL PROJECT COST or OUTTURN COST

Example Replacement of two boilers and internal heating system Preliminary Costs & Contingencies £ 138, 250. 00 £ 6, 912. 50 £ 145, 162. 50 VAT @ 20% Total Building Costs £ 29, 032. 50 £ 174, 195. 00 Professional Fees @ 14% £ 20, 322. 75 VAT on Professional Fees £ 4, 064. 55 Other Fees – Total Professional Fees £ 24, 387. 30 TOTAL OUTTURN COST £ 198, 582. 30

Other Fees To Look For Additional Costs: • Planning Permissions • Building Control • Asbestos Surveys • Ground Surveys • Legal Fees These are all legitimate but may appear as part of either the Building Cost or the Professional Fee. Always ask if there any additional costs and where they are included.

VAT • VAT cannot be reclaimed by governors on capital expenditure. • For a very small number of projects, the work can be zero-rated. • Aided schools have VAT on Revenue items recovered by the LA.

The Important Numbers • 100% • 97. 5% • 90% • 20% • 15% • 10%

The Important Numbers • 100% • 97. 5% • 90% • 20% VAT • 15% (or 14%) Professional Fees • 10%

Sources of Capital Funding

Sources of Capital Funding 3 basic sources of funding: 1. Devolved Capital Formula (DFC) This is a formula-driven amount of money granted to each school each year to be spent on capital projects. Schools can accumulate their DFC for a maximum of 3 years to save up for a more significant building project 2. LCVAP (to be replaced with SCA from 2020/21) This is a Government Grant to help ensure schools are kept in good condition, and to support major capital works. Schools can bid into a competitive process to secure LCVAP/SCA funding for their building projects. 3. Off Programme/Non-Grant Aided

LCVAP Breakdown 2019/20 Authority No. of Bids Total Value No. of Projects LCVAP Allocation Cheshire East 17 £ 1, 405, 240 6 £ 323, 478 Cheshire West & Chester 17 £ 1, 797, 437 9 £ 515, 425 Halton 3 £ 234, 563 2 £ 122, 375 Stockport 1 £ 135, 000 1 £ 74, 524 Tameside 3 £ 96, 002 1 £ 60, 000 Trafford 3 £ 172, 869 2 £ 161, 579 Warrington 5 £ 218, 710 4 £ 141, 359 12 £ 1, 424, 446 5 £ 265, 904 61 £ 5, 484, 267 30 £ 1, 654, 644 Wirral

SALIX Funding/Loans • For projects to improve the energy efficiency of schools. • Schools apply for the funding through their building consultant. • The loan is interest free and repayments are calculated based on the expected savings on utility bills from the improved energy efficiency.

LCVAP/SCA Process

LCVAP/SCA Process • Consultant, in discussion with governors, will submit 1 or 2 bids turning the Autumn term to the diocese. • The diocese will review each bid and prioritise projects based on severity/impact on the school. • Successful projects are usually announced the following February/March to allow for works to start during the summer holidays.

LCVAP/SCA Paying Bills • Schools shouldn’t be paying anything directly. All LCVAP related invoices should be sent from consultants directly to the Diocese • For example: Drainage Surveys or Planning Fees • There have been instances where consultants have asked schools to pay these up front. • Please don’t pay these. We have an agreement where either consultants will pay these to be repaid when funding is available or the Diocese will pay this in advance of project approval. • If in doubt, Sandra & I are happy to speak on the phone.

Governor Contribution • It is the Governors responsibility to fund 10% of the total outturn of the project – regardless of whether the other 90% is made up of LCVAP/SCA or DFC funding. • It is essential that schools are able to commit to the 10% contribution at the time of bid submission. • If schools have funds available over and above the 10% that they are willing to contribute this should be clearly stated. Projects are more likely to be successful if schools are able to contribute more than the required 10%.

Example Using our boiler replacement example, with outturn cost of £ 198, 582. 30: Grant Funding at 100% LCVAP/SCA DFC Additional Governors’ Funding Governors’ Contribution £ 178, 582. 30 £ 17, 858. 23 £ 20, 000. 00 £ 2, 000. 00 £ 198, 582. 30 £ 19, 858. 23

Example Showing 90% Contribution: Grant Funding at 90% LCVAP/SCA DFC Additional Funding Governors’ Contribution (10%) Total (100%) £ 160, 724. 07 £ 17, 858. 23 £ 178, 582. 30 £ 18, 000. 00 £ 20, 000. 00 £ 178, 724. 07 £ 19, 858. 23 £ 198, 582. 30

Example The governors’ have £ 25, 000 to contribute to a project: Grant Funding at 100% LCVAP/SCA DFC Additional Governors’ Funding LCVAP/SCA Governors’ Contribution £ 172, 869. 22 £ 17, 858. 23 £ 20, 000. 00 £ 2, 000. 00 £ 5, 713. 08 Grant Funding at 100% Governors’ £ 25, 000. 00 £ 198, 582. 30 Contribution £ 153, 582. 30 £ 15, 358. 23 DFC £ 20, 000. 00 £ 2, 000. 00 Additional Governors’ Funding £ 25, 000. 00 £ 198, 582. 30 £ 42, 358. 23

The Important Numbers • 100% • 97. 5% • 90% • 20% VAT • 15% (or 14%) Professional Fees • 10%

The Important Numbers • 100% the total Grant including the 10% Governor contribution • 97. 5% • 90% the actual Grant which excludes the Governor contribution • 20% VAT • 15% (or 14%) Professional Fees • 10% The minimum Governor Contribution to the Total Outturn Cost

Points to Remember • Capital works have to be >£ 2, 000 (excluding fees, surveys & VAT). • Governors must: • Have written approval of DBE before undertaking ANY capital work. Building work cannot proceed unless confirmation of appropriate level of asbestos survey has been received. • Contact the DBE office as soon as work is contemplated/prior consultation is usually most helpful • Ensure that anyone undertaking building work in school has adequate and appropriate professional indemnity insurance. (All DBE approved consultants and contractors have this. )

Using DFC for ICT Equipment • Don’t need to go through Building Consultant for this. • Submissions should include 3 comparative quotes. • TPM (DBE Services) can help schools get quotes. • Warranties: can only use DFC if part of a package price, but can’t if included as a separate item.

Revenue Projects • Total Property Management offer independent advisory service supporting schools in the management, maintenance and development of the buildings. • TPM offer a one stop shop providing headteachers and governors with everything they need to maintain, manage, repair and develop their school building. • Contact Peter Ballard at DBE Services for more information: 01254 958 850 peter@dbeservices. co. uk

Thanks For Joining Us • New Capital Funding (SCA) training days: • Thurs 23 rd Jan 2020, 4: 00 pm – 6: 00 pm • Friday 31 st Jan 2020, 10: 00 am – 12: 00 pm • Monday 10 th Feb 2020, 2: 00 pm – 4: 00 pm • Any questions/issues, contact me by: • Phone: 01928 718 843 x 228 • Email: simon. geddes@chester. Anglican. org