What is it?
Best practice is to engage an independent expert professional to review in detail financial models, ensuring they are robust, fit for purpose and accurately reflect project performance and documents.
What we do
Based on our experience, a typical model audit would involve:
- A detailed review of the model to ensure it is logically constructed, internally consistent with best practice, accurately reflects the project and is fit for purpose
- Ensuring key assumptions and project and financing documents are reflected in the model, as well as evaluating the model’s suitability as an ongoing monitoring tool for covenant compliance
- Checking the model’s consistency with current tax legislation
- Checking the model’s consistency with International Financial Reporting Standards / Generally Accepted Accounting Practice, utilising PKF’s national and international networks
- An evaluation of agreed ratio and key calculation definitions and restrictions
- Testing sensitivity and various scenarios.
The benefits to you
Our approach is to work closely with all relevant parties. We believe this close liaison is the only effective way of ensuring that we have a comprehensive understanding of the model, its inherent assumptions and that any modifications to the model are clearly understood.
Whatever your business or organisation, PKF will:
- Bring commercial awareness to your review. Our dedicated team of chartered accountants and tax specialists use their considerable experience to evaluate the appropriateness of models in particular sectors, through benchmarking techniques
- Use specialised software, helping us to focus on the key unique formulae and independently identify changes to a model minimising the time required to audit such changes and their impact
- Use our well proven model review methodology. A top-down approach allows us to focus on key risk areas, using analytical procedures, supported by a bottom-up approach evaluating the model’s structure, data flows and logic. Our methodology incorporates a full detailed review of the actual model.
Why PKF?
Over the last 20 years, PKF has built up considerable expertise with financial and business models for project financing, PFI / PPP, other types of financing and operational planning. Our track record is multi-sector, covering projects in infrastructure, accommodation, health, education, training, law and order, oil and gas, transport, power and energy (including renewable energy), mining, water and waste, both nationally and internationally.
PKF will provide a pragmatic and flexible approach to the audit of a business model, identifying and examining areas of high risk, utilising national and international network resources to undertake assignments worldwide and offer competitive and cost effective services, including flexible pricing options.
We have provided support to many major project sponsors, banks, investment and advisory firms and other financial institutions, including:
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- 3i Infrastructure plc
- ABN AMRO Bank
- AES
- Allied Irish Bank
- ACWA Power
- Atos Origin
- AVIVA
- Babcock and Brown
- Balfour Beatty
- Barclays Bank
- Barclays Capital
- Bank of America
- Bank of Ireland
- Bank of Scotland
- Bayerische Landesbank
- Bilfinger Berger
- EDF Energy
- BNP Paribas
- Calyon
- Carillion
- CIBC
- CIT
- Citi
- COOP
- Commerzbank
- DEPFA Bank
- Deutsche Bank
- Dexia Public Finance Bank
- Development Bank of South Africa
- EIB
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- ING Bank
- GPFC
- Fortis Bank
- KBC Finance
- EBRD
- HypoVereinsbank
- HSBC
- Innisfree
- Land Securities Trillium
- Lloyds TSB Bank
- Laing Investments
- OFGEM
- Macquarie Bank
- National Australia Bank
- NED Railways
- Nordlb
- Platina Partners LLP
- Prudential M&G
- RBC
- The Royal Bank of Scotland
- Secondary Market Infrastructure Fund
- Semperiun
- Serco Investments
- SMBC
- Societe Generale
- Standard Bank
- Tubelines
- Unicredit
- West LB
- Veolia
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A number of recent high profile projects we have been involved in include:
- RasGas II & III LNG Expansion Project - Second largest global project finance deal in 2006
- London Underground PPP - Largest UK PPP Transport Project
- Barts & the London NHS Trust - Largest UK PFI Health Project
- Forth Valley Acute Hospital PFI Project - Largest Scottish PFI Healthcare Project
- Arsenal’s Emirates Stadium and the Ascot Grandstand
- The Lancashire Waste PFI Project.
For further information about any of the services offered please contact either Brian Tash or Kirit Mistry.
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