Management Section 1 : Responsibilities

1.2 In relation to individual transactions, SGHSC’s role is to consider any cases notified to the Accountable Officer by Holding Bodies as required by the Handbook. It is for Holding Bodies to provide the necessary supporting information when transactions are so notified; if such supporting information is not provided, the papers received will be returned to the Body for completion of the necessary action. Holding Bodies are responsible for undertaking the preparation of supporting material, instructing the Legal Adviser or commissioning the necessary advice from other advisers.

1.3 The SGHSC’s responsibilities on property transactions reflect the Accountable Officer’s continuing overall responsibility for financial accountability, securing value for money, supporting the delivery of national and local healthcare strategies, supporting the need to identify essential and non-essential property and to translate the latter to surplus and to disposal. Broadly the SGHSC’s role in support of these responsibilities is reflected within the requirements for Property and Asset Management Strategies, the maintenance and review of transaction procedures, and overall post-transaction monitoring. Detailed responsibilities are:

The maintenance and review of property transactions procedures to ensure compliance with general Scottish Government policy and to reflect experience;

• The maintenance of mandatory requirements;
• Consideration of transactions notified to the Accountable Officer as required by the Handbook;
• Arrangements for post-transaction monitoring;
• Action arising from unacceptable monitoring exception reports submitted by Audit Committees of Holding Bodies;
• Integration of efforts to dispose of surplus property and acquire property with general property management action to improve its utilisation and rationalisation.

The SGHSC has no operational role in the day to day management of transactions. See http://www.pcpd.scot.nhs.uk/ Asset Management section

1.4 Holding Bodies are responsible for the management of all property transactions. This includes identifying property for disposal or acquisition, initiating the necessary preparatory investigations (including planning), arranging sales marketing, supervising progress, certification and overseeing completion of transactions. They are also responsible for notifying transactions to the Accountable Officer where required by the Handbook. In particular Bodies are responsible for:

1.4.1 Considering priority interests, i.e.

• Other NHSScotland interests (prior to formal declaration as surplus);
• Other Scottish Government related body interest (trawl procedures);
• Other priority interests – former owners, health related interests, special purchaser.
• Seeking appropriate professional advice where positive interest received from priority interest.
• Ensuring that the mandatory requirements are followed.
• Commissioning professional advice.
• Issuing the necessary instructions to the Legal Adviser and other professional advisers;
• In the case of disposals, ensuring that the planning potential of the property is completely clarified, agreeing the marketing arrangements, arranging for offers to be opened, and taking account of professional advice on the acceptance of offers.
• In the case of acquisitions, ensuring that the need for additional property has been clearly established, that best value is obtained and where leasing of property is proposed that it is the most cost effective option.
• Resolving any differences with professional advisers.
• Deciding when transactions should be notified to the Accountable Officer.
• Acceptance of offer following submission to and approval of Accountable Officer where required.
• Supervising the completion of the transaction, and coordinating the necessary input from the Legal Adviser and other advisers.
• Completion of all appropriate certification, including the commissioning of supporting certification from appropriate professional advisers.
• Completion of monitoring proforma and provision of further supporting information to assist and support post-transaction monitoring.

1.5 Holding Bodies have a particular responsibility for coordinating receipt of advice from those involved in transactions, ensuring that the necessary action is taken and ultimately making the required decisions following any necessary notification to the Accountable Officer.

1.6 The arrangements for handling NHSScotland property transactions provide for the appointment of a Property Adviser to supply key professional advice to the Holding Body. (Guidance on the appointment of Property Advisers is given in paragraphs 1.7 to 1.9 of Procedures).

1.7 An Independent Valuer must be appointed in major or potentially difficult disposal cases to provide additional professional advice. The Independent Valuer must be independent of the marketing agent appointed to handle the sale. The Valuer appointed should be a corporate member of the Royal Institution of Chartered Surveyors with relevant experience of the type of property and locality in which it is situated. Normally in-house surveyors are not used to provide valuations on disposal and should not therefore be appointed as the Independent Valuer.

• The circumstances in which an Independent Valuer must be appointed are:
• Where the property itself is of an unusual or exceptional nature; or
• Where the transaction is of an unusual or exceptional nature; or
• Where it is likely to be difficult to establish what planning uses might be permitted, or the uses upon which prospective purchasers might base their bids; or
• Where the selling price is likely to be in excess of £5M; or
• Where sale receipts are to be phased over time [e.g. possible deferred receipt post date of entry]
• Where direct off market sale to a commercial organisation is involved (see Procedures paragraph 2.17.6)

1.8 The functions of the Independent Valuer should include:

• to advise on establishment of the guide price;
• to advise, in consultation with the marketing agent, on the final price in sales on the open market;
• to advise on the range of offers which may be expected and acceptability of bids received within the sale deadline;
• to advise on any authentic late or revised bids received after a closing date but before the sale has become legally binding;
• where the final price is at a price below the guide price to certify, jointly with the marketing agent, that it is the best offer reasonably obtainable;
• to advise on any other queries and liaise with the Property Adviser, the Legal Adviser, planning adviser and the in house property adviser as the Board instructs/wishes.

Under the terms of Scottish Public Finance Manual

1.9 Holding Bodies within the Scottish Administration must seek advice at the earliest opportunity from the Scottish Government's Property Division when a disposal of property or the disposal of an interest in a property is being considered. The Holding Body must ensure that the Scottish Government's Property Division is notified of relevant proposed disposals of property at the earliest opportunity and at least 3 months prior to them being advertised on the open market.

If the disposal is part of a Public Private Partnership project the Holding body must refer to the relevant guidance within the SCIM and any Outline or Full Business Case must contain confirmation that advice has been sought from SG Property Division.

1.10 It is important that Holding Bodies choose appropriate professional advice for each transaction. It may be appropriate to appoint more than one professional adviser for the same transaction, for example, a planning consultant may be appointed in the early stages of a disposal to advise on appropriate alternative uses with a different consultant being appointed to advise on marketing. Many firms now provide multi-disciplinary advice combining for example specialist planning valuation and marketing skills within the same organisation. Agents should be appointed following competitive tender.

http://www.gov.scot/Topics/Government/Procurement

1.11 NHS Boards may appoint a Planning adviser by tender to advise on all transactions requiring appropriate advice to Boards interests in the general planning process including representation in Planning Appeals.

1.12 The advice of marketing agents must be sought in every disposal case, except for modest individual disposals i.e. where SG Property Division estimates the value of the property to be under £10,000. If a Body has a number of small sales, it is open to them to negotiate a contract with an agent covering all the properties. Qualified private sector valuers or the District Valuer of the Valuation Office Agency Scotland (VOA) may be used with selection being guided by value for money considerations, weighing the expertise and service offered against the cost.

1.13 All legal aspects of NHSScotland property transactions must be handled by Central Legal Office (CLO). Holding Bodies are responsible for issuing all the necessary instructions to their solicitor covering their requirements and it is for the solicitor to advise Bodies on how these requirements can best be met in legal terms.

Specialist Legal Advisers

1.14 With the prior written agreement of the CLO Holding Bodies may appoint Specialist Legal Advisers to deal with specialist areas of the law.

1.15 NHS Boards will appoint an officer to act as In-house Property Adviser for each transaction to ensure the proper appointment of all necessary Professional Advisers and to instruct, manage and ensure the proper conduct of the Transaction in accordance with the terms of the Property Transactions Handbook.

1.16 The NHS Boards Chief Executives will have overall responsibility for the proper conduct of each Transaction in accordance with the terms of the Property Transactions Handbook.