This deliverable will involve a stocktake and the development of a capital assets strategy for the Institute. This will require a consolidated view of both existing and planned commitments. It will develop a consolidated plan for likely future investment required to capital assets and identify and ringfence cash reserves for the central balance sheet of the Institute, and determine parameters for access to cash reserves, while giving effect to government direction regarding the use of regionally accumulated assets.
This action is led by Peter Winder with Board support from Brett O’Riley.
This workstream includes consideration of:
We've developed a staged approach. The stages and the deliverables from each stage are set out below.
Complete a stocktake of the information set out in the scope section above. Much of this information will already be available through the information that TEC has collected and compiled regarding the financial position of each ITP.
Summarise the plans / forecast for each ITP – including identifying key risks and gaps.
Consolidate the stocktake information to create both the current state, the expected state as at 1 April 2019, the requirements for the 2020 financial year, and for each following year for the next 5 years.
Develop options for establishing ringfenced cash reserves – and relative merits of options for establishment Board to consider and consult on.
Develop draft capital and assets strategy that addresses the issues set out in the purpose section above.
Develop draft decision making and delegations strategy to support the capital and asset strategy.
Refine draft capital and assets strategy and decision making and delegations strategy following consideration and feedback from the Board.
Consult with ITPs as necessary.
Refine draft capital and assets strategy and decision making and delegations strategy following consideration of the feedback from ITPs.
Present revised drafts of strategy to the Board.
Develop initial asset disposal strategy, including the identification of key assets and the disposal process and how this fits within the ringfence decision making framework.
We're engaging an external consultant to assist with this work.
We're working with TEC's asset records together with onsite visits to quantify the portfolio, understand and assess current, near and longterm capex programmes.
We're considering the network of provision and assets required for delivery, develop a cash and asset reserve strategy for investment across subsidiaries to meet the requirements of the network as a whole. This information will feed into the implementation business case.
A draft approach will be considered by the Board, with decisions taken on the future asset strategy.
If required, an asset disposal plan will be consulted on for surplus assets with capital being redirected to meet learning requirements.