Item: 4
Asset Management Sub-committee: 3 November 2026
Corporate Asset Maintenance Programmes
Revenue Expenditure Monitoring
Report by Head of Finance.
IMAGE: The Orkney Islands Council crest and wordmark appear at the top of the report.
1. Overview
1.1
This report presents the summary position of expenditure incurred as at 30 September 2026 in respect of the approved corporate asset maintenance programmes for 2026/27, for scrutiny.
1.2
To demonstrate a focus on maintaining existing assets of the Council and ensuring that our buildings and infrastructure are maintained at levels expected by the Orkney public and that our IT, plant and vehicles achieve modern standards of security, safety and emissions, annual capital improvement and replacement programmes of work are agreed by the relevant service Committee or Sub-committee.
1.3
Delivery of these planned programmes of work are thereafter monitored throughout the financial year by the relevant service Committee or Sub-committee.
1.4
The annual revenue repairs and maintenance programmes for financial year 2026/27 were approved by the Asset Management Sub-committee on 24 March 2026.
1.5
The table below provides an overview of the expenditure incurred as at 30 September 2026.
| Description | Actual Expenditure at 30 September 2026 (£000) | Approved Budget 2026/27 (£000) | Probable Out-turn 2026/27 (£000) | Overspend/(Underspend) (£000) |
|---|---|---|---|---|
| General Fund | 791.5 | 1,918.4 | 1,947.5 | 29.1 |
| Strategic Reserve Fund | 154.0 | 137.8 | 209.1 | 71.3 |
| Total | 945.5 | 2,056.2 | 2,156.6 | 100.4 |
1.6
The projected outturn is currently showing an overspend against budget, so the planned works will have to be reviewed and adjusted, to ensure the programme comes in on budget by 31 March 2027.
1.7
A detailed breakdown of the approved programmes of work for financial year 2026/27, including individual project updates, is attached as Appendix 1.
2. Recommendations
2.1
It is recommended that members of the Sub-committee:
Note the summary position of expenditure incurred, as at 30 September 2026, against the approved corporate asset maintenance programmes for 2026/27, as detailed in section 1.5 of this report.
Note the detailed analysis of expenditure figures and programme updates in respect of the approved corporate asset maintenance programmes for 2026/27, attached as Appendix 1 to this report.
For Further Information please contact:
Pat Robinson, Service Manager (Accounting), extension 2621, Email: pat.robinson@orkney.gov.uk.
Implications of Report
Financial — The Financial Regulations state that Directors can incur expenditure within approved revenue and capital budgets. Such expenditure must be in accordance with the Council’s policies and objectives and subject to compliance with the Financial Regulations.
Legal — Regular financial monitoring and reporting helps the Council meet its statutory obligation to secure best value.
Corporate Governance — In terms of the Scheme of Administration, monitoring the levels of expenditure incurred against approved annual corporate asset maintenance programmes, funded through the approved revenue budget, is referred to the Asset Management Sub-committee.
Human Resources — N/A.
Equalities — An Equality Impact Assessment is not required for financial monitoring.
Island Communities Impact — An Island Communities Impact Assessment is not required for financial monitoring.
Links to Council Plan — The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Council Plan strategic priorities:
- ☐ Growing our economy.
- ☐ Strengthening our communities.
- ☐ Developing our Infrastructure.
- ☐ Transforming our Council.
Links to Local Outcomes Improvement Plan — The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Local Outcomes Improvement Plan priorities:
- ☐ Cost of Living.
- ☐ Sustainable Development.
- ☐ Local Equality.
- ☐ Improving Population Health.
Environmental and Climate Risk — Where resources allow, improvement works can include ‘greener’ solutions.
Risk — Improvement of existing assets can help reduce risks associated with these assets.
Procurement — Any contractual arrangements require to comply with the Financial Regulations and Contract Standing Orders.
Health and Safety — Well-maintained assets will assist the Council in complying with relevant Health and Safety requirements for both staff and the public.
Property and Assets — Included throughout the report and detailed in the Appendix.
Information Technology — Up to date IT systems should help reduce risk to the Council.
Cost of Living — N/A.
List of Background Papers
Asset Management Sub-committee, 24 March 2026, Corporate Asset Maintenance and Improvement Programmes
Appendix
Appendix 1 – Corporate Asset Maintenance Programmes as at 30 September 2026.
Appendix 1
Summary
General Fund Revenue Maintenance
| Asset Name | Actual Expenditure (£) | Approved Budget 2026/27 (£) | Probable Outturn 2026/27 (£) | Estimated Over/(Under) spend 2026/27 (£) |
|---|---|---|---|---|
| Planned works | 0 | 0 | 0 | 0 |
| Statutory / non statutory testing | 185,783 | 546,250 | 517,591 | (28,659) |
| Cyclical works | 50,447 | 76,500 | 78,328 | 1,828 |
| Large scale repairs (budgeted within Reactive works) | 181,011 | 0 | 181,011 | 181,011 |
| Reactive works | 374,211 | 975,000 | 850,000 | (125,000) |
| Contingency | 0 | 0 | 0 | 0 |
| Apportioned Costs | 0 | 320,650 | 320,650 | 0 |
| Total | 791,452 | 1,918,400 | 1,947,580 | 29,180 |
Detailed Programme
General Fund Revenue Maintenance
| Asset Name | Description | Actual Expenditure (£) | Approved Budget 2026/27 (£) |
|---|---|---|---|
| Planned works | |||
| No planned works | 0 | 0 | |
| Statutory Testing | The following budget figures cover only the planned tests and servicing, with all reactive / remedial works funded from the reactive budget. | ||
| Asbestos register / surveys | Control of Asbestos Regulations 2012 - Budget relates to ongoing surveys across the entire OIC property estate. Procurement for a 3 year contract has concluded and surveys have commenced. | 4,143 | 130,000 |
| Duct hygiene (air conditioning , plenum heating) | Workplace (Health, Safety and Welfare Regulations 1992) and Control of Substances Hazardous to Health (COSHH) and Local Exhaust Ventilation (LEV) Testing. Annual inspection and test - thorough cleaning routine determined from testing / inspection. Works programmed to be carried out in Q3 every year. | 0 | 7,000 |
| Electrical Installation Condition Report (EICR) | Electricity at Work Regulations 1989 and BS 7671 IET Wiring Regulations (Institute of Engineering and Technology). Frequency varies according to property type, varies from 1-10 years. | 39,084 | 90,000 |
| Emergency lighting testing | Electricity at Work Regulations 1989 and Regulatory Reform (Fire Safety) Order 2005. Annual inspection and test. Bulk of tests taken place in Q2 and Q3 with a number also to be delivered in Q4. | 4,958 | 11,300 |
| Fixed appliance testing (FAT) | Annual test and inspection. Further works to be delivered in Q3 and Q4. | 7,024 | 15,000 |
| Gas Appliances testing / servicing | The Gas Safety (Installations and Use) Regulations 1998. Annual servicing to include check on ventilation, adequate flues, heat input combustion conformance, appliance is stable and safety devices working. Covers commercial kitchens, technical areas, science rooms, home economic areas within schools. Works substantially complete. Awaiting invoices from contractor. | 5,188 | 5,800 |
| Passenger / Goods lifts testing and servicing | Lift Operations and Lifting Equipment Regulations 1998 (LOLER). Inspection, test undertaken on a quarterly basis, minor works will be undertaken at the same time as site inspection, with quotations provided for larger scale works. Awaiting invoices from Contractor for Q2 works with further works to be delivered in Q3 and Q4. Note that larger refurbishment works are planned between 2026 and 2028 which will be capital in nature and form part of the annual capital improvement programme of works. | 1,350 | 10,000 |
| Portable Appliance Testing (PAT) | The Provision and Use of Work Equipment Regulations 1998 (PUWER). PATs to OIC run or managed properties only. Undertaken every 2 years. Covers testing only, repairs and replacement costs covered by departments' own budgets Further works to be delivered in Q3 and Q4. | 4,901 | 10,000 |
| Retractable seating | Annual inspection and reporting on condition and remedials required at Stromness Academy and Pickaquoy Centre. Inspections complete. | 5,228 | 5,000 |
| Water Services management and Thermostatic Mixer Valve (TMV) testing / servicing | Water Services - Undertaking and updating Risk Assessments, provision of training to building users, undertaking audits of water systems and reporting issues for actioning. TMV - Testing and servicing works. Both services are undertaken annually. Further works to be delivered in Q3 and Q4. | 17,578 | 30,000 |
| Working at Height - Roof Anchor and Wire Rope System and single point anchorage testing / servicing | Lift Operations and Lifting Equipment Regulations 1998. Annual test and inspection. Covers only the testing. Testing complete. | 3,745 | 4,000 |
| Non Statutory (best practice) | |||
| Non-Statutory Testing works with budgets under £5K | Arjo baths; Equipment monitoring (lifts, fire alarms, intruder alarms etc); Evac chairs; Generator Servicing, Lightning systems testing; Septic tank and sewerage treatment plant cleaning; Vermin; Window cleaning. | 6,097 | 11,850 |
| Automatic door servicing | 6 monthly test / inspection. Next servicing programmed for Q3. | 6,461 | 12,000 |
| Fire alarm testing | Fire Safety (Scotland) Act 2005 as amended and Fire Safety (Scotland) Regulations 2006. 6 monthly test / inspection. Awaiting invoicing for testing in Q1 and Q2 with further tests to be delivered in Q3 and Q4. | 0 | 12,000 |
| Fire Fighting Equipment Servicing / testing | Fire Safety (Scotland) Act 2005 as amended and Fire Safety (Scotland) Regulations 2006. Annual test / inspection. Includes testing, servicing, repairs and replacement. Works substantually completed. | 31,024 | 40,000 |
| Fixed Gym Equipment Testing (fixed equipment only, loose equipment paid for by building users) | Annual test and inspection. Includes inspection and servicing to fixed equipment such as wall bars and moveable PE equipment, with repairs to moveable PE equipment funded by each establishment. Contract includes for inspection and servicing to fitness room equipment which is also funded by each establishment along with any repairs. Testing completed awaiting contractor invoices. | 0 | 8,000 |
| Grease filter cleaning | Undertaken on a monthly basis in accordance with insurers requirements. Ongoing dialog with insurer and frequencies has resulted in a reduction of cleaning requirements that will be felt in Q3 and Q4. | 16,824 | 35,000 |
| Heat pump servicing | Annual service. Annual servicing and maintenance of heat pumps, Mechanical Ventilation Heat Recovery (MVHR) systems, including reactive repairs and works required to keep systems operating. Awaiting invoices from contractor for Q1 and Q2, further works to be delivered in Q3 and Q4. | 331 | 5,000 |
| Lightning systems testing | Annual inspection and test undertaken June / July, followed by reporting and quotation for remedial works. Works complete. | 4,455 | 5,000 |
| Oil Boiler Servicing | Annual service. Further works to be delivered in Q3 and Q4. | 12,100 | 25,000 |
| Swimming pool and library heat recovery / air con servicing | Health and Safety at Work Act 1974. Annual service - inspect, service and undertake remedial works on refrigeration equipment. Awaiting invoices from contractor. | 0 | 11,500 |
| Swimming pool, sauna, steam and spa bath servicing of equipment | Health and Safety at Work Act 1974. Annual inspection and low costs remedial works undertaken, followed by quotations for larger scale works. Servicing completed awaiting invoices from Contractor. Note North Walls pool is out of service and not to be serviced financial year 26/27. | 10,023 | 9,000 |
| Radon | Ionising Radiation Regulations 1999. Procurement to be undertaken to allow testing on a 10 year frequency, but to also to check that old RADON measures are still operating effectively. Procurement has been completed, and anticipate that test kits are issued November 26, will remain in place for 3 months and then returned for analysis and reporting. | 0 | 33,700 |
| Petrol interceptors and grease traps servicing | Annual clean out. Involves emptying petrol interceptors, works programmed for Q4. | 0 | 14,200 |
| Sprinkler / fire suppression systems | Annual test and inspection. Includes testing and servicing. Works completed. | 5,269 | 5,900 |
| Cyclical works | |||
| External decoration including steelwork painting | 5-year re-decoration plan. Budget reduced from previous years due to a lack of contractors and budgetary pressures elsewhere within this account. Works complete. | 10,336 | 10,000 |
| St Magnus Cathedral | Architects' inspection fee - Annual fee for inspection and supervision of maintenance of fabric at Cathedral. To be charged later in the year. | 0 | 3,500 |
| St Magnus Cathedral | Organ tuning - quarterly inspection and tune. 2 inspections undertaken and paid. | 3,846 | 6,000 |
| St Magnus Cathedral | Crack monitoring to the south transept. Detailed assessment, 3D modelling, structural assessment / advice on the repairs to the turnpike stair. Progressing and interim invoices provided. | 14,969 | 25,000 |
| Ness Battery | Conservation plan to guide long-term care, maintenance and development. Site visit undertaken September and awaiting report. | 0 | 2,000 |
| Swimming pools - generally | Minor upgrading works to be agreed, but generally comprises of pool cover replacement, chlorine dosing upgrades, preventative maintenance. 1st visit has occurred and Stromness / Westray pools have been repaired, and works are complete. | 13,360 | 10,000 |
| Timber floor treatments | Floors to be identified (See below). | 0 | 20,000 |
| Hoy Centre - Dining hall | Timber floor refurbishment. Works complete. | 5,268 | 0 |
| North Walls School and swimming pool - Community room | Timber floor refurbishment. Works complete. | 2,668 | 0 |
| Papdale School - Dining hall | Timber floor refurbishment - quote of £10,196 accepted, works complete, awaiting invoice. | 0 | 0 |
Large scale reactive works (Over £5,000) added during the year (Excluding fees)
| Asset Name | Description | Actual Expenditure (£) | Approved Budget (£) |
|---|---|---|---|
| Pickaquoy Centre | Costs incurred during 25/26 which should have been recharged to the Pickaquoy Trust. A recharge will be undertaken by the next AMSC, zeroing out this cost. | 51,666 | 0 |
| Sanday and Stronsay Schools | Repairs to Dantherm air handling units. | 14,708 | |
| Pickaquoy Centre | Supply and fit new oven. | 12,925 | |
| Orkney Islands Council | Various areas - repairs to water damaged walls. | 10,757 | |
| St Magnus Cathedral | Supply of 90 lights. | 9,853 | |
| Hamnavoe House | Supply and install new Rational Icombie pro and stand. | 9,751 | |
| Stromness Academy | Heating / ventilation review of systems, and report on potential options for upgrading the systems. | 8,675 | |
| Dounby Primary School | Repairs following Electrical Installation Condition Report. | 8,168 | |
| The Orkney Library and Archive | Lift repairs. | 7,372 | |
| Council Offices | Lift repairs. | 7,327 | |
| Pickaquoy Centre | New break tank for swimming pool. Works are out with the GTFM agreement. | 6,434 | |
| Stenness Primary School | Patio door replacement. | 5,865 | |
| Garson Re-cycling Centre | Repair chain link fence. | 5,852 | |
| Sanday Junior High School | Pipework repairs above water meter in the plantroom. | 5,470 | |
| Rousay Primary School | Replace the twin coil unvented hot water calorifier. | 5,415 | |
| Stromness Academy | Ceiling repairs following storm damage. | 5,395 | |
| 2 Vasa | Void property upgrade. | 5,377 |
Reactive works
| Asset Name | Description | Actual Expenditure (£) | Approved Budget (£) |
|---|---|---|---|
| Reactive works | Ad-hoc repairs to replace broken, failed components. Budget figure based upon anticipated expenditure following analysis of historical data. This budget also funds works which have been identified following statutory or non-statutory testing works. | 374,211 | 975,000 |
Contingency
| Asset Name | Description | Actual Expenditure (£) | Approved Budget (£) |
|---|---|---|---|
| Contingency | To be utilised across the programme as required. | 0 | 0 |
Apportioned Costs
| Asset Name | Description | Actual Expenditure (£) | Approved Budget (£) |
|---|---|---|---|
| Apportioned Costs | To be charged at year-end. | 0 | 320,650 |
| Total | 791,452 | 1,918,400 |
Appendix 2
Summary
Strategic Reserve Fund Revenue Maintenance
| Asset Name | Actual Expenditure (£) | Approved Budget 2026/27 (£) | Probable Outturn 2026/27 (£) | Estimated Over/(Under) spend 2026/27 (£) |
|---|---|---|---|---|
| One-off planned repairs | 0 | 0 | 0 | 0 |
| Statutory / non statutory testing | 4,385 | 22,580 | 21,409 | (1,171) |
| Cyclical works | 0 | 500 | 0 | (500) |
| Large scale repairs (budgeted within Reactive works) | 132,729 | 0 | 132,729 | 132,729 |
| Reactive Works | 16,925 | 70,000 | 35,000 | (35,000) |
| Contingency | 0 | 24,720 | 0 | (24,720) |
| Apportioned Costs | 0 | 20,000 | 20,000 | 0 |
| Total | 154,039 | 137,800 | 209,138 | 71,338 |
Detailed Programme
Strategic Reserve Fund Revenue Maintenance
| Asset Name | Description | Actual Expenditure (£) | Approved Budget 2026/27 (£) |
|---|---|---|---|
| One-off planned repairs | No planned works. | ||
| Statutory Testing | The following budget figures cover only the planned tests and servicing, with all reactive works funded from the reactive budget. | ||
| Asbestos register / surveys | Control of Asbestos Regulations 2012 - Budget relates to ongoing surveys across the entire OIC property estate. Procurement for a 3 year contract has concluded, surveys have commenced. | 0 | 5,000 |
| Statutory Testing works with budgets under £5k | Duct hygiene (air conditioning, plenum heating); Emergency lighting testing; Fixed appliance testing; Gas appliances testing / servicing; Passenger / good lifts testing and servicing; Portable appliance testing; Water services management and Thermostatic Mixer Valve (TMV) testing / servicing. | 889 | 2,530 |
| Electrical Installation Condition Report (EICR) | Electricity at Work Regulations 1989 and BS 7671 IET Wiring Regulations (Institute of Engineering and Technology). Frequency varies according to property type, varies from 1-10 years. Works progressing. | 0 | 5,000 |
| Non Statutory Testing | |||
| Non-Statutory Testing works with budgets under £5k | Automatic door servicing; Fire alarm testing, Fire fighting equipment servicing / testing; Lightning systems testing; Oil boiler servicing; Vermin. | 3,496 | 4,450 |
| Radon | Ionising Radiation Regulations 1999. Procurement to be undertaken to allow testing on a 10 year frequency, but to also to check that old RADON measures are still operating effectively. Procurement has been completed, and anticipate that test kits are issued November 26, will remain in place for 3 months and then returned for analysis and reporting. | 0 | 5,600 |
| Cyclical Works | |||
| External decoration | 5-year re-decoration plan. Budget reduced from previous years due to a lack of contractors and budgetary pressures elsewhere within this account. No redecoration works carried out to date. | 0 | 500 |
Large scale reactive works (Over £5,000) added during the year.
| Asset Name | Description | Actual Expenditure (£) | Approved Budget (£) |
|---|---|---|---|
| Flotta Water Terminal | Repairs following storm damage. Unable to recover cost via insurance as deemed to be fair wear and tear. Works complete. | 58,006 | 0 |
| Buoy Store, Stromness | Repairs following fire damage. To be recovered via insurance claim minus the excess. Works substantially complete, and income will be reflected in this report once received. | 57,910 | 0 |
| G10 Workshop, Garson Industrial Estate | Re-sheet section of wall at the roller door | 16,812 | 0 |
Reactive Works
| Asset Name | Description | Actual Expenditure (£) | Approved Budget (£) |
|---|---|---|---|
| Reactive works | Ad-hoc repairs to replace broken, failed components. Budget figure based upon anticipated expenditure following analysis of historical data. This budget also funds works which have been identified following statutory or non-statutory testing works. | 16,925 | 70,000 |
Contingency
| Asset Name | Description | Actual Expenditure (£) | Approved Budget (£) |
|---|---|---|---|
| Contingency | To be utilised across the programme as required. | 0 | 24,720 |
Apportioned Costs
| Asset Name | Description | Actual Expenditure (£) | Approved Budget (£) |
|---|---|---|---|
| Apportioned costs | To be charged at year-end. | 0 | 20,000 |
| Total | 154,039 | 137,800 |