WHC (2007) 024 WELSH HEALTH CIRCULAR Parc Cathays Cathays Park Caerdydd CF10 3NQ Cardiff CF10 3NQ Issue Date: 23rd March 2007 Status: Action Title: Revaluation of the NHS Estate 2007 For Action by: Directors of Finance and Action required: See Annex A Directors/Heads of Estates/Facilities, NHS Trusts and Powys LHB & District Valuer Services Wales For Information to: Chief Executives, NHS Trusts and Chief Executives & Directors of Finance, Local Health Boards Sender: Mr Kevin Jones Financial Controller, Department of Health & Social, Care Resources Directorate National Assembly contact(s) : Mr Kevin Jones Financial Controller, Gareth Roberts Assistant Director Property Management, Welsh Health Estates Enclosure(s): Annex A,B and C Tel: 029 20825111 GTN: 1208 Llinell union/Direct line: 029 20 825846 Ffacs/Fax: 029 20 825429 Minicom: 029 20 823280 http://howis.wales.nhs.uk/whcirculars.cfm 1 Distribution List Chief Executives NHS Trusts Chief Executives Local Health Boards HR Directors NHS Trusts HR Directors Business Services Centre Director NHS Confederation in Wales Chief Officer Association of Welsh Community Health Councils Director Welsh Local Government Association Dean University of Wales, Bangor Chief Executive Commission for Racial Equality Chief Executive Centre for Health Leadership Secretary British Dental Association in Wales Postgraduate Dean University of Wales College of Medicine Director information services University of Wales College of Medicine Secretary British Medical Association (Wales) Regional Head of Health UNISON Board Secretary Royal College of Nursing (Wales) Welsh Council Representative British Dietetic Association Wales Secretary British Orthoptic Society Wales Secretary AMICUS MSF Regional Secretary The GMB Regional Secretary Transport & General Workers Union Chair Community Pharmacy Wales Chair Royal College of General Practitioners General Secretary Wales TUC Assistant Director Chartered Society of Physiotherapists Officer for Wales Society of Radiographers IR Officer Society of Chiropodists and Podiatrists Regional Secretary Union of Construction Allied Trades and Technicians Board Secretary for Wales Royal College of Midwives Officer for Wales AMICUS Electrical & Engineering Staff Association Regional Secretary AMICUS Amalgamated Electrical and Engineering Union Welsh Executive Royal Pharmaceutical Society of Great Britain Information Officer Wales Council for Voluntary Action National Member for Wales AMICUS - Guild of Health Care Pharmacists Business manager Institute of Health Care Management Welsh Division Chief Executive Association of Optometrists Librarian British College of Optometrists Director General Audit Commission (Wales) Director Business Service Centre Patch Managers Business Service Centres across Wales (6 copies each) Secretariat Statutory Committees Regional Directors NHS Wales Regional Offices Chief Executive Health Commission Wales (Specialist Services) Chief Executive Health Professions Wales Librarian National Public Health Service Chief Executive Welsh Language Board / Bwrdd yr Iaith Gymraeg Librarian Health Promotion Library Chief Executive Healthcare Inspectorate Wales 2 Dear Colleague REVALUATION OF THE NHS ESTATE 2007 1. The purpose of this circular is to notify NHS bodies that a revaluation of the NHS estate is to be undertaken and to request the provision of information to enable the process to be completed by the required dates. 2. Following a formal tendering exercise the Health & Social Care Department’s Resources Directorate has appointed the Valuation Office Agency’s District Valuer Services Wales (DV) to undertake a revaluation of the NHS estate in Wales. The cost of the exercise will be met by the Department. 3. The previous revaluation was completed in September 2002 and Financial Reporting Standard 15 (FRS 15) requires public sector assets to be reviewed and revalued at least every 5 years in accordance with the NHS Capital Accounting Manual. 4. The valuation date to be adopted for assessment is 1 April 2007 and final valuations must be completed and issued by 30 September 2007. A timetable for the process is attached at Annex A. 5. NHS bodies are asked to nominate a primary contact for the duration of the contract. These nominations with contact details should be notified by e-mail by the 30th March 2007 to both the DV contact point Nigel Thomas, District Valuer Services (Nigel.email@example.com) and Gareth Roberts, Welsh Health Estates (Gareth.firstname.lastname@example.org) 6. NHS bodies’ will need to agree their current estate assets with the DV. Material changes to the estate asset base since the last revaluation should be notified to the DV in writing as soon as possible but no later than Wednesday 11 April 2007. The information required is identified in Annex B. A proforma for completion of data relating to residential units is also attached at Annex C. 7. NHS bodies are asked to ensure that all property is identified. The DV will be providing valuations for PFI and Finance lease schemes as part of the process. Leased assets must therefore be properly categorised. 8. The DV will make initial contact with NHS bodies during March 2007 and will make necessary arrangements to commence site visits during April 2007. The DV will agree inspection dates with the NHS contact points and will be required to comply with NHS bodies’ access, health and safety and security requirements. It is recommended that all NHS bodies make their Departments aware of the project and the purpose of the inspections. 10. Provisional valuations will be completed and provided to the nominated contact point by 22 July 2007. These will need to be verified by NHS bodies and any comments or amendments required must be notified to the DV by 31 August 2007. 11. The final valuations will be provided by 28 September 2007 on Microsoft Excel spreadsheets including separate spreadsheets for summary valuations and block elemental information. 3 12. Enquiries relating to valuation issues or report formats should be addressed to the DV through Nigel Thomas, District Valuer Services, Government Buildings, Picton Terrace, Carmarthen SA31 3BT. Tel No. 01267 322228 or e-mail: Nigel.email@example.com. 13. Finance or accounting queries should be addressed to Kevin Jones, Financial Controller, Resources Directorate. Tel No: 02920 20823536 or e-mail: Kevin.Jones3@Wales.GSI.Gov.UK 14. General property enquiries and enquiries regarding the process should be addressed to Gareth Roberts, Assistant Director Property Management, Welsh Health Estates. Tel No: 02920 315527 or e-mail Gareth.firstname.lastname@example.org. Yours sincerely Kevin Jones Financial Controller Department of Health and Social Care Resources Directorate 4 REVALUATION OF THE NHS ESTATE 2007 ANNEX A PROJECT TIMETABLE Action Responsibility Date Contact name provided to NHS bodies By 30 March 2007 DV and WHE Updated information NHS bodies By 11 April 2007 provided to the DV Site inspections District Valuer April - June 2007 Issue provisional valuations District Valuer By 22 July 2007 Comments/amendments NHS bodies By 31 August 2007 notified to DV Submission of Final District Valuer 28 September 2007 Valuations and project completion 5 REVALUATION OF THE NHS ESTATE 2007 ANNEX B INFORMATION REQUIRED BY DISTRICT VALUERS FROM NHS BODIES RECEIPT OF INFORMATION REQUIRED BY 11 April 2007 GENERAL The primary source of data for District Valuers undertaking the asset revaluation exercise in 2007 will be their existing 2002 valuation records, supplemented by any subsequent firm "Good Housekeeping" valuation records. In some instances, a NHS body may since 2002 have already supplied to the local District Valuer some of the information now being sought (for example, in connection with a "Good Housekeeping" case). Even where this is the case, this information should again be brought to the DV’s attention in the NHS body's submission for the current exercise. Each NHS body should supply the following information in respect of its estate assets: A) LAND • Changes in site boundaries and site areas (in hectares) since the last national asset revaluation exercise in September 2002. • Details of any new reservations or restrictions affecting each site. • Within the boundaries of a hospital, identification of any areas of land which are designated both surplus to requirements and currently non-operational, being available for disposal. B) AREAS OF BUILDINGS Each NHS body should check that the Gross Internal Area (GIA) figures shown on the Unit Summary or Block Inspection Forms supplied in 2002 for each asset are accurate and ensure that the most up to date GIA information available for each block/building is passed to the Valuer. C) AVAILABILITY OF CONDITION SURVEYS The DV should be provided with any condition surveys which have been carried out either by, or for, the NHS body and which reveal the need for potential changes to the remaining lives of buildings and consequently to their depreciation figures. D) EXTERNAL WORKS Particular care is needed to ensure that any new external works which arise as a consequence of new-build projects on a site are identified. E) CHANGES OF USE Identification of any changes of use to buildings since 30 September 2002 is required. F) CAPITAL EXPENDITURE Details are required of any significant capital expenditure or physical changes to the estate since September 2002 (including expenditure on the refurbishment of an existing building or the construction of a new-build extension to an existing property). Sufficient detail should be supplied to establish, firstly, on which elements of an asset the investment was spent and, secondly, whether it constituted actual capital enhancement expenditure or capitalised maintenance and repair-work. 6 G) ASSETS (EITHER FORMERLY OR NOW) UNDER CONSTRUCTION The term "assets in course of construction" (AUCs) can apply to both new-build assets and extensions/alterations to existing assets. Information required includes: • Identification and construction cost information is required for those buildings which were (AUCs) on 30 September 2002 and which are now complete. • Identification and construction cost information is required for those buildings where construction commenced after 30 September 2002 and which will be operational by 1 April 2007. • Identification of those assets which are currently under construction and which will not be completed as at 1 April 2007. For information purposes only, it will be useful to have details of the projected completion date and the estimated total construction cost. In providing cost information for former "assets in course of construction", care is needed to ensure that costs in respect of new external works are shown separately from the costs of the building. (See Section D above re External Works). H) ASSETS PLANNED FOR CLOSURE Identification of those buildings which are: • firmly intended to be closed in the foreseeable future, either with a view to their future disposal or redevelopment, and have been declared surplus, • but are still currently in use as specialised operational assets and therefore valued using the Depreciated Replacement Cost basis and • for which the NHS body requires the "reduced functional life adjustment" For such buildings the planned date of closure (i.e. when the building is to become non-operational) should be provided. I) NON-OPERATIONAL ASSETS Identification of those assets which are currently both surplus and already non-operational (i.e. use of the asset has ceased and is not expected to resume, but the asset still currently forms part of the NHS body's estate). J) DONATED ASSETS Any changes to the identification of those assets which are either donated or part-donated are required and provision of details about the nature of the donation (date, amount, conditions attached to the donation, etc). K) LEASES Any changes to previously supplied details of the lease terms and conditions, including rent passing, where the NHS body is either the landlord or the tenant. The information required can be sub-divided into the following categories of leases: • new leases which have been entered into since 30 September 2002. • existing leases where details (including the rent) have been reviewed since 30 September 2002 • existing leases which have been renewed since 30 September 2002. • pre-existing leases which have been relinquished since 30 September 2002. 7 With particular reference to residential tenancies, full current tenure details are required, including whether the occupation is regarded as an assured shorthold tenancy, an assured tenancy or a regulated tenancy. Further details on residential units are required in Annex C. Most importantly, for each leased asset, the DV should be notified whether it is regarded by the Finance Director for accounting purposes as being a Finance Lease or an Operating Lease. L) CONCERNS Where past valuation reports have given rise to points of concern, these matters should be identified and referred to when supplying the update information. This will ensure that these points can be specifically addressed in this exercise. 8 REVALUATION OF THE NHS ESTATE 2007 ANNEX C INFORMATION REQUIREMENTS FOR RESIDENTIAL UNITS 1. Name of Trust or NHS Body …………………………………………………….. 2. Site name ……………………………………………………. 3. Block name / number 4. Type and numbers of accommodation • Self contained units Number of 1 bedroom units ..................................................................... Number of 2 bedrooms units ..................................................................... Number 3 bedrooms units ...................................................................... • Shared accommodation Number of bedspaces ............................................ 5. Annual rents • Self contained units 1 bed units per annum ...................................... 2 bedroom units per annum ...................................... 3 bedrooms units per annum ..................................... • Shared accommodation Per bedspace ............................... When were the rents last reviewed? ................................... 9 6. Please state whether rents are inclusive of heat, light, council tax, cleaning costs and provide details of these costs if available 7. Please provide details, if available, of the following running costs for the block/accommodation: Management costs per annum ............................................ Day to day maintenance costs per annum .................................. Average level of voids per annum ........................................... 8. Is there a planned and approved improvement programme? If so please provide details. 9. Is there a future planned maintenance programme? If so, please give details. 10. Is the property compliant with all the necessary health and safety and fire regulations? 10
"Proforma of Housekeeping Operational Audit - PDF"