Common use of Capital Programme Clause in Contracts

Capital Programme. Why is this important? 2.3.1 Capital expenditure involves acquiring or enhancing fixed assets with a long-term value such as land, buildings, and major items of plant, equipment or vehicles. Capital assets shape the way services are delivered in the long term and may create financial commitments in the form of financing costs and revenue running costs. The Commissioner shall have full oversight of the Estate’s Strategy. The Commissioner is responsible for agreeing the purchasing, rental, licensing, disposal and change of use of the estate.. 2.3.2 The Commissioner is able to undertake capital investment providing the spending plans are affordable, prudent and sustainable. ▇▇▇▇▇’s Prudential code sets out the framework under which the Authority will consider its spending plans. 2.3.3 The capital programme is linked to the approved financial strategy. 2.3.4 To develop and implement asset management plans. 2.3.5 To prepare a financial strategy for consideration and approval by the Authority. 2.3.6 To approve the asset management strategy. 2.3.7 To approve the annual financial strategy. 2.3.8 To prepare a rolling programme of proposed capital expenditure for consideration by the Commissioner.. Each scheme shall identify the total capital cost of the project and any additional revenue commitments. 2.3.9 To prepare project appraisals (i.e. the Business Proposal Form) for all schemes in the draft medium term year capital programme and shall be submitted to the Commissioner’s CFO and Commissioner for consideration and scheme approval. This will include all additional revenue and capital costs. 2.3.10 Each capital project shall have a named officer responsible for sponsoring the scheme, monitoring progress and ensuring completion of the scheme. 2.3.11 To identify, in consultation with the Commissioner’s CFO, available sources of funding for the medium term capital programme, including the identification of potential capital receipts from disposal of property. 2.3.12 A gap may be identified between available resources and required capital investment. Requirements should be prioritised by the Chief Constable to enable the Commissioner to make informed judgements as to which schemes should be included in the capital programme, the minimum level of funding required for each scheme and the potential phasing of capital expenditure. 2.3.13 All schemes within the draft medium term capital programme should incorporate an estimate of future price inflation. 2.3.14 Approval of the medium term capital programme by the Commissioner in February each year authorises the Chief Constable to seek planning permissions, incur professional fees and preliminary expenses as appropriate. 2.3.15 To make recommendations to the Commissioner on the most appropriate level of revenue support and appropriate levels of borrowing, under the Prudential Code, to support the capital programme. 2.3.16 To approve a fully funded medium term capital programme. 2.3.17 To agree the annual capital programme, and how it is to be financed. 2.3.18 Approval of the annual capital programme by the Commissioner authorises the Chief Constable’s CFO to incur expenditure on schemes providing the project appraisal has been approved and expenditure on the scheme does not exceed the sum contained in the approved programme by more than 10% or £250,000 which ever is the lower amount. 2.3.19 To ensure that finance leases or other credit arrangements are not entered into without the prior approval of the Commissioner’s CFO. 2.3.20 To ensure that, apart from professional fees (e.g. feasibility studies and planning fees),no other capital expenditure is incurred before the scheme is approved by the Commissioner. 2.3.21 To ensure that adequate records are maintained for all capital contracts. 2.3.22 To monitor expenditure throughout the year against the approved programme. 2.3.23 To submit capital monitoring reports to the Commissioner on a regular basis throughout the year. These reports are to be based on the most recently available financial information. The monitoring reports will show spending to date and compare projected income and expenditure with the approved programme. The reports shall be in a format agreed by the Commissioner and Commissioner’s CFO. 2.3.24 To prepare a business case for all new capital schemes [after the annual programme has been agreed] for submission to the Commissioner for consultation and approval. Amendments to the programme increasing its overall cost must demonstrate how such changes are to be funded. 2.3.25 To report on the outturn of capital expenditure.