Question 40

Does the Executive’s Budget Proposal or any supporting budget documentation present information on nonfinancial assets held by the government? (The core information must include a listing of the assets by category.)
 * a. Yes, information beyond the core elements is presented for all nonfinancial assets.
 * b. Yes, the core information is presented for all nonfinancial assets.
 * c. Yes, information is presented, but it excludes some nonfinancial assets.
 * d. No, information related to nonfinancial assets is not presented.
 * e. Not applicable/other (please comment).

Guidelines
Question 40 focuses on nonfinancial assets held by the government, asking whether “core” information related to these assets is presented. The core information is a listing of nonfinancial assets, grouped by the type (or category) of asset.

Nonfinancial assets are things of value that the government owns or controls (excluding financial assets) such as land, buildings, and machinery. The valuation of public nonfinancial assets can be problematic, particularly in cases where the asset is not typically available on the open market (such as a government monument). In these cases, it is considered acceptable to provide summary information in budget documents from a country’s register of assets. But, in some cases, governments are able to value their nonfinancial assets; some present a summary of nonfinancial assets as part of their balance sheets. For an example of how nonfinancial assets are presented in one of the many supporting documents to the New Zealand Executive’s Budget Proposal, see the Forecast Financial Statement 2011, Notes to the Financial Statements (Continued), Note 14.

To answer “a,” the Executive’s Budget Proposal or supporting documentation must present for at least the budget year a listing by category of all nonfinancial assets held by the government as well as some additional information beyond the core elements. To answer “b,” the Executive’s Budget Proposal or supporting documentation must present all of the core components noted above. A “c” answer applies if some information related to nonfinancial assets is presented, but some nonfinancial assets are not included. Answer “d” applies if no information is presented on nonfinancial assets held by the government, or if only information on the acquisition of non-financial assets is presented.

1) Are maritime waters and the wildlife in them considered nonfinancial assets?
UNRESOLVED. On one hand, it doesn’t seem like it would be radically different than assessing the value of land and subsoil wealth (such as oil, gas, minerals, etc.) On the other hand, there did not seem to be an example of maritime waters and the wildlife resources inside them being included with nonfinancial assets. If you run across a circumstance like this, please bring it to the team.

2) We are looking for stocks and not flows
We do not award a “c” for the sale or acquisition of non-financial assets. Information on the flow rather than stock should be assessed with a “d” response.

3) Can BY-1 information count towards a "c" response here?
No. In OBS 2021, Turkey presented a decent amount of detail on nonfinancial assets held by the government in its EBP, but all for the year preceding the budget year. We did not give credit for this information here and scored this question “’’’d’’’”.

4) Can this question score a "b" or a "c" even if the valuation of the nonfinancial assets is not presented?
Yes, it can, as the valuation is not one of the core elements we are looking for in this question.