FINANCE GUIDANCE NOTE 2008/02
ACQUISITION AND DISPOSAL OF PROPERTY
Purpose
The purpose of this note is to draw the attention of Accountable Officers to Recommendation 4 in the Asset Management Review Report to the Cabinet Secretary for Finance and Sustainable Growth. The recommendation seeks to promote compliance with the guidance in the Scottish Public Finance Manual (SPFM) regarding the acquisition and disposal of property. Relevant key points in the guidance are as follows:
Acquisition of Property
- A decision must not be taken on a particular solution before a range of options has been fully considered and appraised in accordance with the Green Book. The costs of the options, the results of the sensitivity testing and the ranking of options in terms of their outputs and policy considerations should be considered together to determine which option gives the best value for money.
- It is essential to check if there is suitable surplus property available within the wider public sector and the Scottish Government's Property Advice Division should be advised of any property requirement in order that they may assist in identifying suitable properties. Where appropriate and possible, property acquisitions should be made using the Guidelines for the Transfer of Property within the Scottish Public Sector. Details of surplus properties are circulated electronically to participating organisations by the Scottish Government's Property Advice Division. Surplus and available public sector properties are listed on the web at www.scotland-property.gov.uk
Disposal of Property
- Surplus land and buildings should usually be disposed of within 3 years of being identified as surplus, and surplus residential properties should usually be sold within six months of becoming empty.
- All relevant business areas within the Scottish Administration, sponsored bodies and other bodies to which the SPFM is directly applicable must ensure that the Scottish Government's Property Advice Division is notified of relevant proposed disposals of property at the earliest opportunity and at least 3 months prior to them being advertised on the open market. Particulars should be sent to: e-mail space@scottishproperty.co.uk
Applicability
The guidance contained in the SPFM is directly applicable to the constituent parts of the Scottish Administration (the core Scottish Government, Executive Agencies and non-ministerial Agencies / Departments), other relevant bodies funded direct from the Scottish Consolidated Fund (including the Scottish Parliament Corporate Body and the statutory officeholders that it sponsors) and bodies sponsored by the Scottish Government.
Further Information
For further information and assistance, contact Property Advice Division.
Scottish Government Finance Directorate
March 2008