2011/2012 audited annual accounts - Falkirk Council

16. Other Capital Notes
FALKIRK COUNCIL
NOTES TO THE CORE FINANCIAL STATEMENTS
(a) The following depreciation methods have been used for Property, Plant and Equipment:
Council Dwellings. There has been no depreciation charged on Council Dwellings. The District Valuer has confirmed that
the 'Existing Use Value' (Social Housing) valuation method adopted in terms of the 2011 Code of Practice results in a
particularly high residual value, which in turn renders depreciation immaterial.
Land and Buildings – Land is not depreciated. Buildings are depreciated on a straight line basis over the estimated life of
the asset.
Vehicles, Plant and Equipment - these are depreciated on a straight line basis over the estimated life of the asset.
Infrastructure Assets - these are depreciated on a straight line basis over the estimated life of the asset.
Community Assets - these are depreciated on a straight line basis over the estimated life of the asset.
Non-Operational - these are depreciated on a straight line basis over the estimated life of the asset.
Assets Under Construction - these are not depreciated.
Surplus Assets – these all relate to land and are therefore not depreciated.
(b) Assets owned by the Council include: Estimated Life
(Buildings)
2010/11 2011/12
16,103 Council Dwellings 16,152 30 years
20 Other Land & Buildings Surface Car Parks 32 n/a years
10 Depots 10 12-22 years
2 Strategic Business Parks 2 13-28 years
11 Nursery Schools/Day Nurseries 11 17-27 years
49 Primary Schools 49 13-44 years
8 Secondary Schools 8 37-39 years
4 Special Schools 4 20-40 years
6 Homes for the Elderly 6 25-40 years
11 Sports Centres 11 11-41 years
8 Libraries 8 11-47 years
3 Museums 3 16-96 years
3 Town Halls 3 16-26 years
35 Community Halls/Social Halls 35 11-36 years
1 Crematorium 1 16 years
171 183
279 Community Assets 76
751 Non-Operational Properties 693 23-37 years
(c) Valuation Disclosure
All of the Council’s land and buildings are subject to a rolling programme of revaluation. This effectively means
that each Service has to be revalued at least once within a five year period, always as at 1 April of the year. The
revaluations are performed externally by the District Valuer or internally by the Council’s own Property Services
Surveyors.
The Housing Stock was re-valued as at 1 April 2010 by the District Valuer of the Scotland South East Valuation
Office, using the ‘Existing Use Value’ (Social Housing) method.
Land and Buildings owned by Community Services have been valued as at 1 April 2007. Other feuhold and
leasehold properties which comprise the Council’s property portfolio, have been valued as at 1 April 2008. Land
and Buildings which were revalued either as at 1 April 2007 or 1 April 2008, were valued on the basis of open
market value for existing use, or where this could not be assessed, because there was no market for the subject asset,
depreciated replacement cost. Plant and Machinery within buildings is included in the valuation of those buildings.
The Council’s Property portfolio of retail and industrial units have been valued on the basis of Existing Use Value.
This valuation was carried out as at 1 April 2010 by the Council’s own Property Services Surveyor and thereafter
ratified by the District Valuer of the Scotland South East Valuation Office.
Land and Buildings owned by Social Work have been valued as at 1 April 2011 and were valued on the basis of
open market value for existing use. A small number of Land & Buildings assets which were completed in 2010/11
have been revalued at 1 April 2011 and were valued on the basis of depreciated replacement cost. These assets are
owned by Education Services & Community Services.
77