What Is A Facility Management Audit? A Complete Overview

As buildings age over time, they inevitably undergo changes that can impact how they are managed. 

From wear and tear to evolving regulatory requirements, Facility Managers and those involved in the different aspects of Facility Management Audits need to constantly stay on guard.  

Conducting a Facility Management Audit (FMA) can be a lengthy and intricate operation. So, our industry experts here at SFG20, the industry standard for building maintenance specification, have summarised everything you need to know including what a FMA entails, its objectives and benefits as well as the differences between a Soft FM Audit and a Hard FM Audit. 

What Is A Facility Management Audit (FMA)?  

A Facility Management Audit (FMA) is an extensive evaluation of an organisation's assets, systems, processes and technology related to the maintenance and management of a facility, regardless of whether it’s a new building or has been in operation for a long time. 

Audits cover various areas of FM including (but not limited to) health and safety, compliance with regulations and standards, asset management, energy use, maintenance strategies, and the overall performance of FM services.  

For example, an audit may focus on the effectiveness of the management system by reviewing the maintenance strategy, resourcing, finances, and processes, while more operationally-focused would focus on the day-to-day activities and procedures that ensure maintenance is completed on time, to the right standard and within budget.  

What Are The Objectives Of A Facility Management Audit?

The fundamental purpose of a Facility Management Audit is to assess the effectiveness of risk management within the organisation and whether the appropriate controls are in place to address risk exposure.   

This is achieved by looking at the condition, management efficiency, compliance and sustainability of a facility’s physical assets, equipment and operations.  

An FMA involves documenting and evaluating the condition, performance and costs associated with the various components and systems that make up a facility’s operations to understand its current state as well as identify problem areas and uncover cost savings.  

FMAs are also conducted to set benchmarks (i.e., a standard) for future assessment, develop proactive measures and maintain the longevity and performance of buildings. 

The Three Lines Of Defence Model (2013) 

Facilities Management invariably carries much of the responsibility for managing physical risks associated with the built environment and the provision of a safe workplace. 

As such, most audits are initiated as part of the governance around risk management.  

They are most commonly used within the Three Lines of Defence model which was published by the Institute of Internal Auditors in 2013.  

This model aims to provide a comprehensive framework to consider the overall arrangements for managing risk and exercising control within an organisation.  

The Three Lines of Defence are:  

• First

  The functions that own and manage risks and provide operational management and control of organisational risks. 
   

• Second

  The functions that oversee or specialise in compliance or the management of risk reporting to senior management. 
   

• Third

  The functions that provide independent assurance. This is normally performed internally within the organisation and is independent of management with a direct reporting line to the Governing body/Audit Committee. Internal audits assure the effectiveness of governance, risk management and internal controls, including first and second-line controls.
  
  

What Is Included In A Hard Facility Management Audit?

Condition Survey 

A Condition Survey is conducted to assess the remaining life of the asset against the estimated service life to identify when the end of its economic life will be and when replacement should be scheduled.    

Each asset has an estimated service life based on its reference service life (RSL) that is adjusted for the specific in-use condition.  

The RSL is the service life that a building, other built asset, part of a building, maintainable asset type or component would expect (or is predicted) to have in a certain (reference) set of in-use conditions.  

The end of service occurs at the period after installation when a building or its parts no longer meet performance requirements and when physical failure is possible and/or when it is no longer practical or economical for maintenance to continue. 

A Condition Survey should be a recurring periodic activity, as many internal and external factors can affect the condition. This time period will depend on the size of the property portfolio in question, with larger portfolios typically using a rolling programme over several years with a proportion of assets being assessed annually.  

One common pitfall to watch out for with Condition Surveys is only looking at either the fabric or Building Services. The Property Team are usually only interested in the fabric while the Engineering Team are usually only interested in the Building Services, which won’t provide a holistic picture and a prioritised investment plan.  

Asset Capture/Reconciliation  

Over time, buildings are refurbished and assets get replaced or become obsolete and are removed, so understanding exactly which assets are present is key to managing risk and ensuring compliance.   

Similar to Condition Surveys, Asset capture/Reconciliation should also be performed periodically.  

Where a third-party supplier is providing FM services, it’s important to formalise this activity as it’s likely to constitute a contractual variation to ensure both parties are protected.   

This requires firstly to establish an agreed-upon asset list at the start of the contract. This can either be part of the contract documentation within the Invite to Tender (ITT) pack, or equivalent initial issue of information.  

Alternatively, part of the contract mobilisation stage is for the third-party supplier to undertake an assessment of the quantity and condition of the assets. This would become the agreed asset list that needs to be operated and maintained within the contract.  

It is then good practice to provide a mechanism for both parties to add or omit assets that were not present in the original list periodically. This could be a monthly, quarterly, biennially or an annual exercise, with the timing dependent on how much change is likely to happen across the estate. This should be done for commercial reasons, as both parties will want to ensure they are only paying/being paid for what they do and what is needed. 

Review Of Policies, Processes, And Procedures  

Industry best practice is to move away from manual paper-based processes and have an operational FM management system in place such as a CMMS, CAFM or IWMS.  

Automating repetitive processes reduces the burden on staff, mitigates the risk of human error, allows for more accurate tracking of actions and incidents and enables organisations to easily measure performance and keep records. It also allows people to focus on issues and develop solutions to address them. 

The ISO 41000 suite of documents provides guidance on what this involves and how to implement this.  

A fundamental part of any management system that is underpinned by an ISO 9001 Quality Management System approach is the need for continual improvement.   

At a minimum, continual improvement should address: 

• The improvement of internal efficiency and the creation of greater effectiveness. 

• Individual customer requirements. 

• The level of performance against internal performance indicators or sector benchmarks. 

What Is Included In A Soft Facility Management Audit? 

Soft FM audits focus on evaluating the services and conditions that contribute to the overall comfort, appearance and well-being of a facility's occupants and visitors. This can cover: 

Visual Audit

Assesses the cleanliness and overall visual appearance of a facility, evaluating the quality of cleaning and maintenance services. 

Hygiene Audit

Examines hygiene levels, testing surfaces for bacterial contamination, checking sanitation procedures and ensuring compliance with health and safety regulations. 

Green Cleaning Audit

 Evaluates environmental sustainability practices such as the use of eco-friendly cleaning products, waste management and energy efficiency measures. 

Who Is Responsible For Facility Management Audits? 

Depending on your organisation's needs and preferences, the responsibility of a Facility Management Audit can fall on either internal staff or external auditors.  

The individuals or teams who undertake elements of the audit will be dependent on their competence which is defined as the combination of skills, knowledge, training and experience by the Health and Safety Executive (HSE).  

Internal Staff 

A FMA can be conducted by internal staff members such as Facility Managers or people within the facilities management department. This approach is suited to organisations with advanced knowledge and experienced staff who are familiar with the facility's operations, assets and relevant codes and standards. 

Third-party Auditors 

Organisations may choose to hire third-party Facility Management Auditors (FM auditors) to bring a more objective and independent perspective. 

These would be described as the third line of defence and would undertake an internal audit function. This means that they are being employed by the organisation for the benefit of independent assurance.  

In regulated environments, there may be a requirement to engage or host what is known as external auditors. These differ from internal auditors as they are not controlled by the organisation and their report is issued to the Regulatory Body. External FM auditors are typically well-versed in industry best practices, codes and standards that may be specific to the organisation's industry.

Alternatively, organisations may choose to engage Management Accountants as generic Internal Auditors to provide assurance across all aspects of the organisation. 

However, while they may be accredited by the Chartered Institute of Internal Auditors (CIIA), they are only likely to be generalists and may lack knowledge and experience specific to facilities management. 

They may only be able to assess the broader aspects of risk management, governance and internal control processes and provide a more generalised view on whether they are operating effectively.  

Therefore, it’s recommended that the advantages and disadvantages of this approach are discussed with the risk and governance team within the organisation before any audit begins. 

Should I Conduct An Audit Using Internal Or External Resource?  

Undertaking audits internally can be more cost-effective and leverage the organisation's existing knowledge and expertise. On the other hand, audits provided by third parties provide an unbiased, independent assessment and can identify potential obstacles or areas for improvement that internal staff may overlook.  

What Is The Process Of Conducting A Facility Management Audit?  

The Facility Management Audit process is divided into the following four steps:  

Establish Audit Parameters 

The initial step to conducting a FMA involves aligning on quality expectations by defining the scoring criteria and thresholds. This will provide a clear understanding of the audit's objectives and the standards against which the facility will be evaluated.   

For instance, when looking to undertake a Condition Survey, it's important to establish a Data Schema and Risk Assessment which outlines the classification and codification of all the assets and their condition.

For further details, download our free-to-download Condition Survey Data Schema and Risk Assessment Template below. 

Free Condition Survey Data Schema and Risk Assessment Template  

Conduct The Baseline Audit 

The second stage of the Facility Management Audit process is to perform the audit at the facility, also called a "baseline audit." This involves a thorough assessment of the building's systems, processes, and operations, gathering data and documenting findings to uncover problem areas. This is especially important if you are moving between an in-house to an outsourced model or are changing suppliers. 

Analyse Audit Findings 

Once the audit has been completed, all data collected is then ordered and analysed to identify areas of non-compliance, inefficiencies and potential risks, as well as to benchmark the facility's performance against industry standards and best practices. 

Develop And Implement An Action Plan 

The fourth and final step involves developing an action plan to address the areas that failed to meet the established criteria. This includes outlining specific corrective measures, timelines and responsible parties to ensure that any issues are promptly addressed and resolved. This final stage also includes scheduling further audits to revisit your action plan, monitor progress and ensure continuous improvement. 

What Are The Benefits Of A Facility Management Audit, And Why Are They So Important?  

Conducting regular Facility Management Audits is an essential practice for organisations to maintain the longevity, efficiency and compliance of their built environments. Here are all of the benefits of conducting a Facility Management Audit in more detail: 

Supports Compliance  

Audits identify non-compliance issues and subsequent corrective actions, helping to mitigate risks of safety hazards, fines and liabilities while demonstrating responsible facility management.  

Proactive Maintenance and Capital Planning 

By identifying potential issues early on, this allows for proactive maintenance strategies and planned repairs before breakdowns occur, helping to extend equipment lifespan and cut down costs.

Operational Efficiency and Cost Savings

FMAs benchmark operations against best practices to streamline processes, eliminate inefficiencies, and reduce costs, for example by introducing energy-saving measures such as upgrading lighting or optimising HVAC controls.

Alignment With Business Objectives 

Regular audits ensure that your facility management practices align with your core business objectives, leading to enhanced productivity and improved employee satisfaction while supporting your sustainability initiatives. 

Data-Driven Decision Making 

Audits provide a comprehensive asset inventory and condition data to support informed decisions on improving processes, staffing and vendor contracts.  

How Long Does A Facility Management Audit Take To Complete? 

A Facility Management Audit can take anywhere from 3-5 days to complete for each different component and will vary depending on the size of your facility.  

How Often Should A Facility Management Audit Be Conducted? 

For many organisations, not all components of an FMA need to be undertaken at the same time. 

For instance, if an organisation has instigated a quadrennial Condition Survey approach, they will only assess 25% of their portfolio each year and will take 4 years to complete a full Condition Survey, with the Surveyors coming to the site for 3-5 days every year.   

It may be decided that there will be a biannual asset reconciliation process through an outsourced FM contract. This means that after every 6 months, the Client and Supplier will agree on which assets have been added or can now be omitted from the asset register. 

The individual frequency for your organisation can be determined based on factors such as the criticality of processes, risk assessment, and the organisation's specific needs and objectives. 

Stay Clued Up On Compliance  

To summarise, Facility Management Audits play a crucial role in identifying and mitigating risks, ensuring compliance as well as maintaining the longevity and efficiency of built environments.

As the UK’s industry standard for building maintenance specification, it’s our mission at SFG20 to make buildings safer for everyone.

If you’re interested in learning more about compliance in Facilities Management, including what your responsibilities are and what it means for individuals and organisations, head on over to our absolute Ultimate Guide To Compliance by clicking down below.