Infrastructure assets to remain in PPE rather than HNA


We are currently analysing our Infrastructure asset to determine how much will be transferred to the HNA and how much will be retained in PPE. So far, the only examples we can find of infrastructure assets that do not fit under the HNA components are 'coastal defences, water supply and drainage systems' from paragraph of the 2016-17 Code of Practice.

Does any one have any further examples of infrastructure assets they are retaining in PPE?

Thanks in advance for any help.
  • We have some small assets that will remain in Infrastructure e.g. alley gates.
  • In addition to the categories that you mention we have reclamation/landscaping schemes (former colliery pit heaps) that will remain under Infrastructure.
  • We have about £6m worth of infrastructure assets left. Its mostly parking controls/parking enforcement/infrastructure within parks etc.

    Has anyone liaised with their highways engineer to determine whether, the enhancement undertaken in year is actually "additions" or "replacement expenditure"?
  • Mostly coast protection works and inland flood defences and some harbour, quay and beach works. Not sure if promenades come under the footways sub-category yet either (pedestrian areas?).
  • We have multiple infrastructure assets which are the land below the highway, i.e. we own the land and a road runs over it. The Highway Authority is responsible for the road but I'm advised that we still own the land so we include the land in our infrastructure assets. Do other authorities declare such land on their asset registers as infrastructure assets or as another class of asset or do they not record the land on the AR at all?
  • We are a Highways Authority but have not previously included a value for land as part of our Infrastructure assets. From 16/17 onwards we will be including a DRC land value within our HNA as per the valuation toolkit, even without ownership, as we control the economic benefit.
  • Hi T
    If you follow the guidelines for the WGA valuation of the HNA you will be including a value for highway land whether you hold title or are the beneficial owner of the land. If you use this valuation of the HNA for your balance sheet and retain the value of land in PPE you will be double counting.

    Cheers, Neil
  • I'm a little confused here - can someone help? Apart from roads managed by a separate Highway Authority, my Council's area does not have any other highway assets which constitute a network and therefore, as the roads are the responsibility of the Highway Authority, we do not declare any HNA on our balance sheet.
    We do however include in the BS the value of the land beneath the highway roads in our infrastructure assets as I am told the Highway Authority only controls the road, surface and underlayers, but we still own the land it lays on.
    From other advice it now sounds that the Highway Authority will also be declaring a value for the land under the highway in their balance sheet? So whilst a road is still used (i.e. not 'stopped up') who should be declaring the value of the land under the road, the owner or the respective highway authority?
  • T - presumably the value of the land under the highway is currently fairly minimal in your balance sheet though, being at historic cost?
    The HNA guidance notes indicate that where a highways authority doesn't own the land under the highway, it still needs to recognise it in the Balance Sheet while it is being used for the highways network asset, as it is the beneficial occupier and controls access to the economic benefits and service potential of the land.
    So having said that presumably the land would not classify as an asset for your balance sheet as you don't control the economic benefits / service potential etc?
  • Hi AS,
    The assets we are leaving in our infrastructure are what our engineers refer to as "off-highways". In our case this is park & ride sites, bus stations and interchanges at airports and train stations. Hope that helps!