[CANUFNET] Tangible Capital Asset Registry - Reporting Trees and Urban Forest Assets

[Ward, Greg]

Hi Russell,
    The City of Surrey is (or has) built their TCAR, and trees are not included in the registry.  
 
    Our Parks Division rep to the initiative made such a case to include trees, however, it was deemed that trees do not fit the accounting criteria at this time.  See the attached for some background, or google 'capital asset inventory trees' and there is explanation from the Municipal Finance Officer's Association of Canada in a newsletter.
 
    Interestingly, in the newsletter  they do state that where trees are planted as a barrier, to serve a similar benefit or service as a masonry wall or fence, that they would aggregately be considered a capital asset.   The discussion in the newsletter also seems to reveal there is room for discussion on the point of including or excluding trees.  It seems that the decision-makers, accountants, don't fully understand the services and benefits that individual trees provide.  
 
    I think that if it is important to have trees included (perhaps a question that first needs addressing) there needs to be collaborative advocacy from urban foresters.  Perhaps a resolution at the upcoming Canadian Urban Forest conference would be appropriate?
    
 
Greg Ward 
Manager, Urban Forestry and Environmental Programs 
City of Surrey, B.C. 
604 501 5170 

'Nature matters, 
protect, enhance, enjoy' 

-----Original Message-----
From: canufnet-bounces at list.web.net [mailto:canufnet-bounces at list.web.net]On Behalf Of Friesen, Russell
Sent: March 14, 2008 3:41 PM
To: Canadian Urban Forest Network
Subject: [CANUFNET] Tangible Capital Asset Registry - Reporting Trees andUrban Forest Assets


Tangible Capital Asset Registries are topic that has great implications for municipal forestry operations across the country, but I am pretty sure most CANUFNET subscribers have probably never even heard of it.  Around 2005, the Public Sector Accounting Board (PSAB) recommended that governments including municipalities report "Tangible Capital Assets" (TCA) on their balance sheets. In Alberta, this recommendation became law and is now a legislative requirement commencing Jan. 1 2009. The Province of Ontario also appears to have similar requirements, and many municipalities in that jurisdiction are well on their way to reporting TCA. 
  
Unfortunately, there does not appear to be a standard practice or consensus on how to report trees.  The advice given by the PSAB isn't specific and opinion from other sources is contradictory, ranging from don't report the value of trees, to report the value of trees that were planted with a purpose (like visual screening), to report the value trees as if they were converted to pulp wood.
 
Most municipalities involved in building TCA registries have hired consultants to aid with the developing the reporting process. In some cases the same consultants have been hired by several municipalities, but for ethical reasons the consultants can't share what one municipality is doing with another municipality.  All this results in a dearth of guidance and information about how to report trees and the urban forest in a Tangible Capital Asset Registry.  
 
Therefore, I think that it is important for municipal foresters to share with each other what they know about TCA registries, what their TCA will report, how their reporting policy is worded and how they are going to track, collect and manage their asset reporting in subsequent years. . 
 
So now for my questions. 
 
Which other municipalities are in the process of building their TCA?
How are you planning on reporting trees? 
Have you tried to make the case that tree appreciate in value rather than depreciate? ... and how did that go?    
Are you using historic costs of acquisition (planting) for your starting point and depreciating from there? 
Are you reporting individual trees or lumping trees into a general average land improvement value?  
What is your useful lifespan for a tree? 
How are you taking into account vintages?    
And my final question, does anybody - anywhere, understand this? 
 
Thank You 
Russell Friesen
Urban Forestry Coordinator 
City of Calgary Parks  
 
 
 
 
 
 


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