Further to minute 22 (28 September 2011), the Deputy Chief Executive/Director of Finance presented further information on the subject of fixed assets, also known as non-current assets,  shown in the Statement of Accounts. The term was used for assets and property that the Council owned and/or used in the provision of services, in contrast to current assets such as cash held in bank accounts. Fixed assets usually included items such as land and buildings, vehicles, plant, machinery and equipment and he provided further details on the main group of fixed assets, Property, Plant and Equipment (PPE). However, he indicated that other groups of assets such as Investment Property and Property, Plant and Equipment classified as assets held for sale were not used in the provision of services and were not covered in his report.

Information on the Council’s Asset Register was essential to supporting the Statement of Accounts and whilst the Accounts were prepared by the Finance Department, the contribution of all other departments was critical in identifying any changes to the asset records. In respect of land and buildings many fell within the scope of the Department of Law, HR and Asset Management including property records and lease agreements which was reliant upon close working with departments. Similarly, investment via the capital programme would also impact upon the identification and valuation of assets. Vehicle fleet records and contracts, now under the Children & Young People Department, and the insurance records offered support to identifying any changes to, and confirmation of, the vehicle holdings.

He commented that for each asset, the register and accounting records held a range of information to substantiate the values shown in the Balance Sheet. In response to questions from Members in relation to the accuracy of the register, the Director confirmed that the register was compared to the insurance records. He referred to future changes to asset information and specifically to the ongoing valuation of heritage assets being undertaken by the Museums Service. In response to further questions with regard to the valuation of assets in the asset register and the valuation for insurance purposes, the Director proposed to circulate a detailed explanation directly to Members.

Resolved – That the accounting arrangements for the Council’s assets be noted.