Nottingham City Council has approved a £500,000 budget for the upcoming Asset Revaluation Programme for 2024–25.
The programme, which is a statutory requirement, aims to ensure that the city’s property assets are accurately revalued in compliance with the Code of Practice on Local Authority Accounting and International Financial Reporting Standards (IFRS).
The Council is required by law to carry out a comprehensive revaluation of its operational and non-operational property assets, including investment properties, council dwellings, and specialised high-value equipment. The statutory deadline for these valuations is 31st March 2025, and the goal is to ensure that the financial statements accurately reflect the value of these assets, as required under IFRS.
Loxley House
The programme is expected to cover approximately 300 assets, including a range of properties such as investment properties, surplus assets, assets held for sale, and council dwellings. These valuations are essential not only for financial transparency but also for compliance with accounting standards, which are reviewed by external auditors, currently led by Grant Thornton.
Need for External Expertise and Procurement Plan
Given the specialised nature of some of the assets, the Council has decided to outsource the valuation process. While the in-house Strategic Assets & Property team will be involved, they lack the capacity and expertise needed for all the tasks associated with the programme, particularly in valuing certain specialised properties through methods like Depreciated Replacement Cost. Consequently, Nottingham City Council will seek external contractors through a compliant procurement process to provide property valuation services under a framework agreement.
According to the decision documents, Nottingham City Council’s Strategic Assets & Property team has stated that it does not have the in-house resources necessary to maintain a satisfactory focus on revenue generation from managing the Investment Portfolio, Property Trading Account, and the Capital Receipt/Disposals programme while also undertaking these additional valuations. A key reason for outsourcing is to ensure that the Council can still focus on revenue-generating activities, alongside meeting statutory requirements.
Approval and Procurement Process
The decision authorises the procurement of external suppliers to undertake the work, following a process in line with the Public Contracts Regulations 2015 and the Council’s Contract Procedure Rules. Nottingham City Council’s Corporate Director for Growth and City Development has been delegated the authority to award these contracts. Additionally, approval from the Spend Control Board will be sought once specific quotes have been obtained from potential suppliers.
The Council aims to ensure compliance not only with accounting standards but also with value-for-money objectives. Procurement colleagues will support the tendering process for choosing a suitable supplier or suppliers.
Financial Implications
The programme’s approved budget of £500,000 will be funded from the existing revenue budget allocated to Property Services. This cost includes employing RICS-qualified valuation specialists whose work will ensure the Council’s financial statements comply with statutory requirements. These valuations are crucial for providing assurance to the Council’s external auditors that the financial figures represent an accurate and up-to-date value of the assets.
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