This document sets out the main headings for Capital ...
Project Costs and Income
Project Costs and Income
The financial projections associated with a business plan for asset transfer will be a focus for investors and supporters and as a result should have the most detailed treatment. It should include calculations about all the relevant costs over the time period of the project, or at least a three year period, including realistic assumptions about how these costs might change from year to year.
The featured table attached sets out the main headings for Capital and Revenue Costs and Income as a checklist for both an initial assessment and a detailed business plan.
When the Capital and Revenue Costs and Income have been projected and show that income exceeds costs, it is important that these are put into a cash flow for the first years of the project and that the timing and assumptions about timing for income in the cash flow are clearly explained and presented. The failure of projects is often associated with problems of cash flow rather than overall profitability. Consistently missed income in terms of its timing can stretch the patience and confidence of investors and the nerves of the management team.
Whole Life Costing
For the purposes of financial planning for the revenue and capital costs of running the asset, it is essential to get professional advice on its whole life costing, that is, the systematic consideration of all relevant costs and revenues associated with the ownership of the asset. Typically, a surveyor estimates over a 20-25 year period what it will cost to operate, repair, replace and renew building or landscape elements. These costs are then given a current value in order that the owner can make decisions about and plan investment in the asset. It involves making judgements about which elements, (windows, doors, etc), will need replacing or repairing and what kind of cyclical maintenance, (like decoration), will be required.
The Asset Transfer Unit has worked with property specialists Davis Langdon to develop the Buildling Calculator, an interactive whole life costing tool.
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- 1. Action Planning Tool Overview
- 2. Understanding Library Transfer
- i. What is Asset Transfer?
- ii. Assets or liabilities?
- iii. Legal Considerations for Library Transfer
- iv. When is asset transfer suitable?
- v. Benefits of Asset Transfer
- vi. Negotiating Asset Transfer
- 3. Planning for Library Transfer - Getting Started
- i. The Case for Community Managed Libaries
- ii. Defining Purpose
- iii. Service Design
- iv. Community Involvement
- v. Organisational Structures
- vi. Organisational Development
- vii. Skills and Experience
- viii. Assessing Assets, Avoiding Liabilities
- ix. Feasibility Studies
- x. Strategic Fit
- xi. Partnership Building
- xii. Demonstrating your achivements
- 4. Making a Convincing Case and Securing Investment
- i. Demonstrating Community Need
- ii. Business planning
- iii. Project Costs and Income
- iv. Securing Finance
- v. Campaigning and lobbying
- 5. Asset Ownership & Management Agreements
- i. Asset Transfer Legal Toolkit
- ii. Insurance and Tax Issues for Asset Transfers
- iii. Ownership and Management Agreements
- 6. Property Development
- i. The Development Process
- ii. Property Design
- iii. Pre-Construction
- iv. Construction and Management
- v. Appointing and Managing professionals
- 7. Premises Management
- i. Financial management
- ii. Facilities Management
- iii. Health and Safety
- iv. Security
- 8. Developing and Diversifying Library Services
- i. Public versus an Independent Library Service
- ii. Linking Services to Social Purpose
- iii. Community Library Services
- iv. Diversifying Services in Community Libraries
- v. Monitoring Services and Demonstrating Impact
- vi. Equality and Diversity Considerations
- 9. Managing Services
- i. General Responsibilities for Running Community Services
- ii. Policies for Community Managed Libraries
- iii. Management Systems and Information
- iv. Customer Service and Relationship Management
- v. Managing People
- vi. Sourcing and Maintaining Stock
- vii. Managing Finances
- viii. Marketing Your Library
- ix. Measuring Impact and Quality
- x. Accountability and Reporting to stakeholders
- 10. Supporting Library Transfer
- i. Supporting sustainable library transfer