Department of Finance, Services and Innovation

Transcript:Department of Finance, Services and Innovation:
Department of Finance, Services and Innovation “Comprehensive” Financial Capacity Assessment Template [Contracting party] March 2016 ABN [xxx xxx xxx] Executive Summary 2 Recommendations and Conclusions Recommendations: [Contractor] Pty Ltd to be [accepted/rejected] for the proposed tender, with tender value limited to $[X]m dependent on the department assessment criteria (AND major factors influencing the recommendation). Financial Assessment Matrix The criteria for report level selection is based on both the contract size and the annual revenue of the contractor shown above. The proposed contract value totals $[X]. The proposed contractor had revenues in FY12 of $[X]m. Therefore a “Medium Assessment” has been undertaken. Note: Any other work with the department currently being tendered for needs to be considered in aggregate. 3 Contract summary & assessment criteria Contract Summary DFSI Assessment Criteria The following rule should be followed by the financial assessor: If the most recent year-end financial accounts are < 6 months old, the revenue from these accounts should be compared to the thresholds of the financial assessment matrix. If the most recent year-end financial accounts are > 6 months old, the revenue recorded in the current year to date should be annualised and compared to the thresholds of the financial assessment matrix. (e.g. if 7 months of revenue data is available, this can be annualised by multiplying by 12/7). Unless the review is performed shortly following year end, the annual financial statement may not be an accurate reflection of the current financial position of the contractor. The DFSI criteria should be applied to the most recent month end balance sheet available which in some cases will be sourced from recent management accounts as opposed to annual financial statements. NB - the reviewer will need to consider any significant adjustments necessary most notably classification of related party receivables between long term and short term, which can significantly impact the working capital criteria. Executive Summary 4 Understanding the contractor’s ownership and structure [The executive summary is to be used to summarise key findings and risks identified in the main body, and to assign risk weightings for each category. Commentary should be of sufficient detail to justify the risk weighting assigned. On completion we would expect it to be no more than 5 slides in length] Executive Summary 5 Understanding the contractor’s ownership and structure Risk Definitions: Low Risk Medium Risk High Risk Executive Summary 6 Understanding the contractor’s business Risk Definitions: Low Risk