11 January 2008
Councils in Scotland are to be required to establish registers of assets held under the Common Good, an ancient system of safeguarding property and land that was administered by the former burghs on behalf of local people.
The move follows guidance from the influential Local Authority (Scotland) Accounts Advisory Committee, which has reviewed accounting methods for the Common Good.
Apart from formally requiring councils to establish registers for the first time, the guidance also proposes modernising the financial arrangements, which date back to the fifteenth century. It stresses the need for more 'transparent and consistent reporting' on the use of Common Good funds, which must be used for the benefit of the inhabitants of an area. The funds are now held by unitary councils, which cover larger areas than the former burghs.
Latest figures put the value of Common Good reserves at almost £180m. The registers will be required by March 2009.
Lasaac's recommendation supports CIPFA's view that the development and maintenance of comprehensive asset registers is the best professional practice across the public sector.
A petition calling on the Scottish Parliament to urge the Scottish government to introduce legislation to provide better protection for Common Good assets is due to be considered soon.
The guidance followed wide consultation, which resulted in a healthy response from local authorities, stakeholder organisations and individuals, Lasaac chair Grant Macrae said in a foreword.
Its aim was to introduce consistency and 'clarity for practitioners on reporting, group accounts and the accounting relationship between the Common Good and the local authority,' Macrae added.
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