DWA Rules and Standards

Transcription

1 GERMAN DWA Rules and Standards Standard DWA-A 133E Valuation of Wastewater Systems - Systematic Recording, Assessment and Updating August 2005 Wertermittlung von Abwasseranlagen - Systematische Erfassung, Bewertung und Fortschreibung

2 GERMAN DWA Rules and Standards Standard DWA-A 133E Valuation of Wastewater Systems - Systematic Recording, Assessment and Updating August 2005 Wertermittlung von Abwasseranlagen - Systematische Erfassung, Bewertung und Fortschreibung Publisher/Marketing: Deutsche Vereinigung für Wasserwirtschaft, Abwasser und Abfall e. V. German Association for Water, Wastewater and Waste Theodor-Heuss-Allee Hennef Germany Tel.: Fax: kundenzentrum@dwa.de Internet:

3 The German Association for Water, Wastewater and Waste (DWA) is intensively involved with the development of reliable and sustainable water management. Being a politically and economically independent organisation it operates specifically in the areas of water management, wastewater, waste and soil protection. In Europe the DWA is the association in this field with the greatest number of members and, due to its specialist competence it holds a special position with regard to standardisation, professional training and information of the public. The approximately 14,000 members, represent specialists and managers from municipalities, universities, consulting engineers, authorities and businesses. Imprint Published and sold by: DWA German Association for Water, Wastewater and Waste Theodor-Heuss-Allee Hennef, Germany Tel.: Fax: Internet: kundenzentrum@dwa.de Translation: RICHARD BROWN, Wachtberg Printing (English version): DWA ISBN: Printed on 100 % recycled paper DWA Deutsche Vereinigung für Wasserwirtschaft, Abwasser und Abfall e. V., Hennef 2010 German Association for Water, Wastewater and Waste All rights, in particular those of translation into other languages, are reserved. No part of this Standard may be reproduced in any form by photocopy, digitalisation or any other process - or transferred into a language usable in machines, in particular data processing machines, without the written approval of the publisher. 2 August 2005

4 Foreword The Municipal Charges Law of the German Federal States require, inter alia, the raising of cost-covering payments for the public wastewater disposal. For this the payments are to be determined in accordance with economical principles. With this, the total revenue from payments is, as a rule, to cover the costs for public wastewater disposal. Essential components of the payment requirement are the calculated costs: appropriate depreciation and a commensurate interest rate for the investment capital. Also the [German] Municipal Budget Ordinances (GemHVO) foresee the assessment of costs for the cost accounting facilities. Fixed asset inventories, which are also prescribed, serve as basis for this. Prerequisite is the precise knowledge of the assets. The DWA-Working Group WI-3.1 has therefore elaborated this Standard for the recording, assessment and updating of the assets including the depreciation calculation of public wastewater facilities. Due to the capital intensity, the bases of the valuation of wastewater facilities must be sufficiently conclusive, but it also must be economically justifiable. This Standard replaces Standard ATV-A 133 Recording, Assessment and Updating of the Assets of Municipal Drainage Facilities [not available in English] in the version of September The Standard has been revised in particular with regard to the assessment of wastewater treatment facilities and structures. The tables of rates of depreciation and index series contained in the Annex have been expanded and brought up-to-date. The Standard is aimed at all specialists who are involved with the valuation of wastewater facilities. Note: The amendments to the statutory bases resulting in the individual [German] Federal States, in particular the commercial accounting, arising from the introduction of the new budget law, are still not taken into account in this version. Cross references to legal regulations, ordinances, administrative instructions and technical rules relate to the status as at the end of Authors This Standard has been elaborated by the DWA-Working Group WI-3.1 Fixed assets recording and updating. The following have collaborated within the Working Group: ALTHAUS, J. ( ) BELLEFONTAINE, Klemens BREITENBACH, Harald DEWENTER-STEENBOCK, Marlies DUDEY, Joachim FLERUS, Rolf FLICK, Karl-Heinz HEINEMANN, Uwe HÖRDEMANN, Karl-Wilhelm SCHILP, Hans Peter TAVCER, Zeljko VORHOLT, Hubert Dr.-Ing., Monheim Dipl.-Volksw., Koblenz Dipl.-Math. oec., Koblenz Reinbek Dipl.-Betriebsw., Erkrath Werkleiter, Niederzissen Dipl.-Ing., Köln Dipl.-Ing., Esslingen (Guest) Dipl.-Ing., Aachen (Spokesperson) Prof. Dipl.-Ing., Stuttgart Dipl.-Ing., Duisburg Dipl.-Volksw., Wiesbaden Project organiser within the DWA Head Office WILLMS, Michael Dipl.-Wirtschaftsing. Department Wastewater and Water Protection August

5 Contents Foreword... 3 Authors... 3 List of Tables... 5 User Notes Scope Terms Definitions Fixed Assets Capital Assets Purchase Costs Manufacturing Costs (Cost Price) Replacement Costs Current Market Value Residual Value Depreciation Abbreviations Legal Bases for the Valuation Initial Value for the Calculation of the Imputed Costs Target Value with Initial Assessment Valuation of Net Assets Bases of the Assessment General Notes Reason and Objectives Asset Breakdown and Grouping Plan Fees and Similar Payments Road Drainage Recording of the Capital Assets Requirements on Inventory Certificates Independent Assets and Liabilities Cadastre for Sections of Sewers and Manholes Cadastre for Structures Cadastre for Wastewater Treatment Facilities Directory of Other Assets Initial Assessment Assessment Procedure Quantity Method (Sewers) General Principles Excavation Delivery and Laying of Pipes Manholes and Structures Index Method Distribution Procedure (Structures and Wastewater Facilities) August 2005

6 4.3.5 Application of the Assessment Method Updating Recording of Additions and Retirements in the Fixed Asset Card File Production of the Fixed Asset Register Regular Reassessment Depreciation Design Life Expectancy Depreciation Methods Possibilities for Simplification Accumulated Depreciation Adjustment of the Depreciation Rates/Design Life Expectancies Residual Value Rate of Interest for the Investment Capital Annex A Municipal Charges Laws/Municipal Budget Ordinances Annex B Model Breakdown of the Fixed Asset Inventory of the Wastewater Disposal Operation of the Disposal Company B.1 Intangible Assets B.2 Tangible Assets B.3. Financial Assets Annex C Grouping Plan Primarily Oriented to Cost Accounting Aspects System Based on Advisory Leaflet ATV-DVWK-M 803 (as at March 2002) Appendices 1 and Annex D Depreciation Tables Annex E Price Indices for Local Sewers E.1 Sources E.2 Examples and Notes for the Application of Index Series with Sewers Literature List of Tables Table E.1: Index series for local sewers on the basis of the index series of the German Federal Office of Statistics, Wiesbaden August

7 User Notes This Advisory Leaflet is the result of honorary, technical-scientific/economic collaboration which has been achieved in accordance with the principles applicable therefore (statutes, rules of procedure of the ATV-DVWK and the Standard ATV-DVWK-A 400). For this, according to precedents, there exists an actual presumption that it is textually and technically correct. The application of this Advisory Leaflet is open to everyone. However, an obligation for application can arise from legal or administrative regulations, a contract or other legal reason. This Advisory Leaflet is an important, however, not the sole source of information for correct solutions. With its application no one avoids responsibility for his own action or for the correct application in specific cases; this applies in particular for the correct handling of the margins described in the Advisory leaflet. 1 Scope This DWA Standard summarises the principles for the recording, assessment and updating of the asset values including the depreciation of public wastewater facilities. Through compliance with these principles the commensurate depreciation of an interest rate for the investment capital within the sense of the payments determined according to economic aspects are, in particular, guaranteed. Supplementally, Advisory Leaflet ATV- DVWK-M 807E is to be drawn upon for the limitation of production costs and maintenance expenditure. Modifications of the statutory bases, which result from the introduction of business accounting in the individual German Federal States, are not taken into account in this version. 2 Terms 2.1 Definitions Fixed Assets Within the sense of the [German] Municipal Budget Ordinances, the following belong to fixed assets: Tangible assets (property, plant and equipment) a) property incl. buildings and external facilities, b) movable items (with the exception of low value items within the sense of the [German] Income Tax Law (EStG), in particular operational facilities such as, for example, sewer system, pumping stations, stormwater tanks, wastewater treatment facilities, c) rights in rem, e. g. pipeline rights. Financial assets a) investments as well as securities which the municipality has purchased for the purpose of investment, b) accounts receivable from loans which the municipality has granted from budget means to meet the task wastewater disposal, c) capital contributions of the municipality to special purpose associations and other municipal mergers for wastewater disposal, d) own capital of the municipality invested in its special assets using special accounting (owneroperated municipal enterprises). 6 August 2005