Project Summary
Graham + Sibbald were instructed to prepare a portfolio Asset Valuation as at 31st July 2022 for accounts purposes to meet The Financial Reporting Standard (FRS102), FE/HE Statement of Recommended Practice and the Scottish Public Finance Manual (SPFM) requirements.
The portfolio, spread throughout Caithness and Sutherland, in the far north of Scotland, comprised a mix of traditional and modern College Buildings comprising conventional classrooms, lecture theatres and libraries as well as more specialist areas including commercial kitchen/restaurant accommodation, commercial beauty/hairdressing teaching facilities, industrial workshops, and indoor golf facilities.
Graham + Sibbald's expertise in dealing with public sector asset valuations, particularly those valued on a DRC basis and those which are componentised, provides us with an advantage over and above our competitors.
Why G+S
Our network of offices covers the country and we're proud of the fact that we're the first choice of many of Scotland's leading companies, including financial institutions, public sector bodies and residential and commercial property investors and developers.
With over sixty years providing services, and a team made up of some of the most respected names in the business, we pride ourselves on our knowledge of the sectors in which work. This expertise translates in to exceptional service.
Approach
To service the compressed timescales to deliver the valuation project, it was decided that we would deploy a compact specialist valuation team to inspect and value the entire portfolio.
Inspections were undertaken over the duration of a week, with draft reports for each asset being completed within two days of inspection.
The formal valuations were undertaken following the completion of the inspection process. Given the type of assets involved, the process included input from members of the Graham + Sibbald National Valuation Committee as well as our Building Consultancy colleagues (DRC Valuations and Componentisation).
Following submission of the draft Valuation Report, we engaged with the client's external auditors before finalising.
Key Challenges
The diversity of the buildings, their uses and their age, condition and specification were the main challenge although this was swiftly overcome following discussions and input from our Building Consultancy colleagues.
Results
The Portfolio Asset Valuation was carried out and completed on time and to the satisfaction of the client and causing minimum disruption to the day-to-day duties of the client and preparations for their 2022/2023 intake.
The client was fully briefed on all the key valuation inputs and decisions.
Key Message
Productive communication and early engagement with client, their accountancy team and auditors to discuss and agree financial reporting standard and valuation approach to be used.
By deploying a compact and dedicated valuation team from our Inverness and Aberdeen offices with specialist knowledge of valuing public sector assets, as well as componentisation, we were able to meet deadlines and client expectations.
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