financial viability assessment: voluntary product...

[Applicant Name]

[Address]

ABN: [Insert applicant ABN number]

[Insert Applicant Logo]

Prepared by:

[Name of Independent Assessor]

[Membership No.]

[Insert Date]

Prepared for:

Department of Sustainability, Environment, Water, Population and Communities

Financial Viability Assessment:

Voluntary Product Stewardship

[Applicant Name]

Commercial-In-Confidence

Commercial in Confidence 2

Contents

1. Executive Summary ......................................................................................................................................4

2. Scope of Report ............................................................................................................................................6

3. Background ...................................................................................................................................................9

3.1 Overview ...........................................................................................................................................9

3.2 Proposed Arrangement ....................................................................................................................9

3.3 Stakeholder Chart .............................................................................................................................9

3.4 Key Stakeholders and Counterparties ..............................................................................................9

4. Funding and Capital ................................................................................................................................... 11

4.1 Summary of Funding ...................................................................................................................... 11

4.2 Funding Analysis ............................................................................................................................ 12

4.3 Key Issues and Considerations....................................................................................................... 12

4.4 Assessment of Funding and Capital ............................................................................................... 12

5. Applicant Viability ...................................................................................................................................... 14

5.1 Applicant Viability .......................................................................................................................... 14

5.2 Financial Metrics ............................................................................................................................ 15


5.4 Applicant Viability Assessment ...................................................................................................... 16

6. Underlying Assumptions ............................................................................................................................ 18

6.1 Overview of Key Assumptions ....................................................................................................... 18

6.2 Additional Costs and Contingencies .............................................................................................. 19


6.4 Assessment of Underlying Assumptions ....................................................................................... 19

7. Arrangement Viability................................................................................................................................ 21

7.1 Commercial Review ....................................................................................................................... 21

7.2 Projected membership .................................................................................................................. 21

7.3 Cash flow Analysis ......................................................................................................................... 22

7.4 Scenario Analysis ........................................................................................................................... 23

7.5 Break-Even Analysis ....................................................................................................................... 24


7.7 Arrangement Viability Assessment ................................................................................................ 24

8. Adaptive Management Framework ........................................................................................................... 26

8.1 Adaptive Management Framework ............................................................................................... 26


8.3 Assessment of Adaptive Management Framework ...................................................................... 26



9. Risk Management and Corporate Governance ......................................................................................... 28

9.1 Applicant Risk Management .......................................................................................................... 28

9.2 Arrangement Risk Management.................................................................................................... 29

9.3 Summary of Key Risk Management Items ..................................................................................... 29

9.4 Corporate Governance .................................................................................................................. 30


9.6 Assessment of Risk Management and Corporate Governance ..................................................... 31

10. Information Sources and Supporting Documentation .......................................................................... 32

10.1 Information Sources ....................................................................................................................... 32

10.2 Request for Additional Information / Clarification ........................................................................ 33

11. Appendices ............................................................................................................................................ 34



1. Executive Summary

[Applicant Name]

[General background of applicant and the arrangement they are proposing.]

Key Findings and Considerations

[Basis of applicant’s revenue assumptions]

[Basis of applicant’s cost assumptions]

[Key risks to the proposed arrangement]

[Applicant viability]

[Arrangement funding, viability and break-even level]

[Adequacy of adaptive management framework]

[Adequacy of risk management and corporate governance frameworks]

The proposed arrangement includes an expected cost budget of [$xxx/metric unit] after including additional costs and the realisation of this budget is dependent upon the following:

Achieving [xxx metric units] per annum

Professional Opinion

In our professional opinion, [Applicant Name]’s application [appears / does not appear] to demonstrate the proposed arrangement will have adequate financial arrangements and funding to achieve the outcomes and requirements of the Product Stewardship 2011 (the Act), the Product Stewardship Regulation 2012 (the Regulation) and the Product Stewardship (Voluntary Arrangements) Instrument 2012 (the Instrument).

Our assessment of each respective risk category would indicate a Risk Effect, Risk Likelihood and overall Risk Magnitude as summarised in the table below:

Risk Category Risk Effect Risk Likelihood Overall Risk Magnitude

Funding and Capital [Colour code]

Applicant Viability [Colour code]

Underlying Assumptions [Colour code]

Arrangement Viability [Colour code]

Adaptive Management Framework [Colour code]

Risk Management and Governance [Colour code]

The Risk Effect, Risk Likelihood and Risk Magnitude have been assigned in accordance with the classification matrices outlined within the Section “V. Risk Allocation Guidelines” of the Department Financial Viability Assessment Guide.

Funding and Capital



The applicant’s funding and capital was reviewed and in our opinion [the applicant has demonstrated adequate funding and capital to achieve the outcomes and requirements of the Act, the Regulation and the Instrument / the applicant does not appear to have demonstrated adequate funding given that total funding facilities amount to [x] which are inadequate in meeting total projected costs (less projected revenues) / although the applicant appears to have demonstrated an appropriate level of funding, the ability to secure adequate funds is contingent upon the following factors: ….. ] Applicant Viability We have undertaken a qualitative and a quantitative review of [Applicant Name]’s financial viability and in our opinion, the applicant will [be / not be / is likely to be] financially viable, [however is dependent upon…]. On the basis of [management’s financial projections for the year ending 30 June 2013 / financial statements for the year ended 30 June 2012], in our opinion, the entity has an [indicative conditional] rating of [x], with a credit quality classification of [x] and a [x] level of risk Underlying Assumptions We have reviewed the underlying assumptions that underpin the financial projections provided and from our assessment of the supporting evidence, references and rationale, [our opinion is that the underlying assumptions appear reasonable / our opinion is that the underlying assumptions do not appear reasonable / although some of the assumptions appear reasonable, we are unable to determine the reasonableness of a number of underlying assumptions due to there being limited evidence provided]. [Revenue and cost assumptions were all well supported with documentary evidence / No evidence was provided as to support revenue and cost assumptions / Some but not all evidence was provided to substantiate revenue and cost assumptions / Limited evidence was provided to support many of these assumptions, the applicant’s experience is acknowledged]. Arrangement Viability We have undertaken a qualitative commercial review of the arrangement and a quantitative review of the financial projections provided, and [it would appear the arrangement will be viable / it would appear that the arrangement will not be viable] on the basis of the assumptions provided by the applicant [/ although the arrangement appears viable on the basis on underlying assumptions, there are a number of contingencies with a high risk likelihood that would materially impair the overall viability of the arrangement]. Adaptive Management Framework We have reviewed the applicant’s Adaptive Management Framework and in our opinion the arrangement [has in place adequate processes, procedures and plans to address and accommodate for deviations from target levels and has addressed the issues of undersupply and oversupply / does not appear to have adequate processes, procedures and plans to address and does not accommodate for deviations from target levels and/or addressed the issues of undersupply and oversupply / has in place some processes, procedures and plans to address and accommodate for deviations from target levels and the issues of undersupply and oversupply, but has inadequate processes, procedures and plans in the following areas… ]. Risk Management and Corporate Governance We have also undertaken a review of the applicant’s Risk Management and Corporate Governance frameworks and from our review of the documentation submitted the applicant appears to [have adequate risk management, contingency planning and corporate governance frameworks / does not appear to have an established risk management framework and has not demonstrated the adoption of any principles of good corporate governance / have basic frameworks in place with limited processes and protocols to address a limited number of identified risks].

Recommendations Following our review of the application and information provided, we recommend the following:



2. Scope of Report

The purpose of this Investigation is to provide an assessment as to whether the application and proposed Voluntary Product Stewardship Arrangement (“the arrangement”) submitted by [Applicant Name], sufficiently demonstrates that the proposed arrangement will have adequate financial arrangements and funding to achieve the outcomes and requirements of the Act, the Regulation and the Instrument.

We have conducted this assessment on the basis of the information provided to us by [Applicant Name] and from our own enquiries. The key scope considerations are outlined below:

Scope

Applicant Participation [Statement outlining applicant’s level of participation]

Conflict of Interest

[Summary of all actual, potential or perceived conflicts of interest which may have arisen at any stage throughout the engagement]

This Report and the information contained herewith is for the exclusive and internal use of Department of Sustainability, Environment, Water, Population and Communities (the department) and shall not be disclosed to any other person or entity without written consent from [Assessor Name]. The report should be taken as a whole and cannot be abridged or excerpted for any reason. This report should be read within the context of the department’s Financial Viability Assessment Guide.



Financial Assessor’s Declaration

Assessor Eligibility

As the Independent Assessor appointed for this engagement, [Assessor Name] confirms that all eligibility criteria and requirements specified in “II. Independent Assessor Eligibility Criteria” were met and continued to be met throughout the course of this assessment. We confirm there have been no subsequent matters that would otherwise impair our actual or perceived objectivity or capability in providing an independent professional opinion in relation to the applicant’s proposed arrangement and submission.

Detailed Review

On the basis of the information provided by [Applicant Name], we confirm we have completed a detailed review in determining whether the applicant has sufficiently demonstrated that the proposed arrangement will have adequate financial arrangements and funding to achieve the outcomes and requirements of the Act, the Regulation and the Instrument. We confirm we have conducted this assessment in accordance with the prescribed guidelines outlined within the “Financial Viability Assessment Guide for Voluntary Product Stewardship Arrangements”.

Analytical Procedures

We confirm we have applied appropriate audit and verification procedures, evidence-based analysis and accounting expertise in the collection, classification and assessment of the proposed arrangement. While we have not conducted an audit, and no such assurance is expressed, we have applied analytical, verification, validation and other procedures as outlined within the department’s guidelines.

Prospective Information

Prospective financial information relates to events and actions that have not yet occurred and may not occur. While evidence may be available to support underlying data and assumptions upon which prospective financial information is predicated, forward looking projections are subject to market changes and are less certain in nature. While [Assessor Name] have taken reasonable steps to verify the reliability of the information and have applied professional judgement in assessing the proposed arrangement, we make no assertion as to whether the projections and outcomes will be achieved.

Professional Conduct

In conducting the review, to the best of our knowledge and belief, [Assessor Name], its staff and delegates have complied with all applicable independence requirements of the Australian accounting profession and applicable code of professional conduct. Throughout the course of the engagement, we collected evidence to obtain reasonable assurance that the information appeared free of material misstatement. Where the information was based on significant assumptions and estimates, we confirm we have applied the principles of materiality and conservatism. We have sought to apply our professional judgement in a way that neither overstates nor understates the affairs of the arrangement. We confirm that an engagement letter was duly signed prior to accepting the engagement, and that all assessment fees were paid in full and in advance prior to the commencement of this assessment.

[Financial Assessor Name]

[Address]

Signed ............................

[Name of Representative]

....... / ....... / 2013



Applicant’s Undertaking

Applicant Responsibility

[Applicant Name] confirms that it has taken reasonable steps to ensure the accuracy, integrity and completeness of the information provided to the department and the assessor in support of its application. This includes verifying the underlying estimates, projections and assumptions relating to the arrangement. The applicant acknowledges the department and the assessor will rely upon the information provided for the purposes of conducting the commercial and financial viability assessment. [Applicant Name] also confirms it has obtained its own legal and commercial advice to ensure the proposed financial arrangements and affairs are appropriate for the purposes of achieving the outcomes and requirements of the Act, the Regulation and the Instrument.

Applicant Participation

The applicant confirms it has duly authorised the Department and the assessor to carry out any and all investigations as required to assess the financial arrangements and funding are appropriate for achieving the outcomes and requirements of the Act. The applicant confirms the department and the assessor may make enquiries of any person or persons regarding the information provided by the applicant, information from any source relating to the applicant, and/or the performance and financial standing of the applicant. This may include company searches, mercantile credit references, bank references, trade references and other referee reports.

The department reserves the right to conduct its own investigations and to examine the resources of the arrangement and any related party. The applicant acknowledges the department may seek additional information in respect of any aspect of the submission at any time, including a request for the department or its own advisors to visit the offices and/or facilities of the applicant and related parties to clarify and/or verify attributes of the proposed arrangement. The applicant agrees to facilitate such meetings as required. The applicant confirms it has made and will continue to make available to the department and the assessor all necessary information and documentation in relation to its application. The applicant confirms that it maintains adequate commercial and financial records and that it will provide such records promptly to the department and assessor as required.

Information Updates

The applicant acknowledges they have a duty and obligation to advise the department of any change in any circumstance that may be material to the commercial and financial viability of the proposed arrangement. This includes but is not limited to: changes in ownership of the applicant and key stakeholders; changes of management, financial or operational control (such as directors and key technical personnel); any convictions for breaches of legislation or statutory obligations; changes in financial status including administration and insolvency.

The director and/or an appropriate representative of the applicant must sign the following declaration, confirming they have read, understood and duly agreed to these terms for the purposes of the application.

[Applicant Name]

[Address]

Signed ............................

[Name of Representative]

....... / ....... / 2013



3. Background

3.1 Overview

Subject Name [Applicant Name]

ABN [ABN number]

Type of Entity [Public company / Private company / Not-for-profit entity / Unit trust /

Discretionary trust]

Head Office Address [Entity address]

Contact Details [Key contact]

Tel:

Fax:

Email:

History [Applicant’s history]

Board of Directors

Director Name 1, Title, [Short paragraph outlining director profile]



3.2 Proposed Arrangement

[Overview of the applicant’s proposed arrangement]

3.3 Stakeholder Chart

[Insert relationship chart of all key stakeholders and counterparties to the arrangement]

3.4 Key Stakeholders and Counterparties

The key arrangements in place together with the relevant stakeholders and other counterparties were identified are as follows:



Stakeholder Arrangement Status and references

Stakeholder #1

[Description of arrangement]

[Description of current status of arrangement]

Supporting evidence and/or references:

[List supporting evidence and/or references]

Stakeholder #2





Counterparty #1





Counterparty #2







4. Funding and Capital

4.1 Summary of Funding

Summary of Funding

2011/12 2012/13 2013/14 Total

Initial Capital

Applicant contribution (cash)

Applicant contribution (in-kind)

Other contributions

Contributor Name 1 (cash)

Contributor Name 2 (cash)

Contributor Name 1 (in-kind)

Contributor Name 2 (in-kind)

Other Commonwealth Funding

Total Initial Capital

External Funding Facilities

Type of Facility 1 ($ Limit)



Total External Funding

Committed Ongoing Funding

Related party #1

Related party #2

Equity Investor #1

Equity Investor #2

Total Committed Funding

Conditional Funding

Related party #1

Related party #2

External financier

Equity Investor

Total Conditional Funding



4.2 Funding Analysis

Funding Analysis

Initial Funding [Commentary on initial funding and seed capital]

External Funding Facilities [Commentary on initial funding and seed capital]

Committed Ongoing Funding [Commentary on ongoing funding]

Conditional Funding [Commentary on external funding facilities]

4.3 Key Issues and Considerations

4.4 Assessment of Funding and Capital

Assessment of Funding and Capital

Risk Effect Description

[Assessed Risk Effect classification]

[Risk Effect Description that corresponds to the assessed Risk Effect classification as per the Risk Effect table]

Risk Likelihood Description

[Assessed Risk Likelihood classification]

[Risk Likelihood Description that corresponds to the assessed Risk Likelihood classification as per the Risk Likelihood table]


Funding and Capital



[Derived Overall Risk Magnitude]

*To be colour coded as per the defined traffic light reporting system



The applicant’s funding and capital was reviewed and in our opinion [the applicant has demonstrated adequate funding and capital to achieve the outcomes and requirements of the Act, the Regulation and the Instrument / the applicant does not appear to have demonstrated adequate funding given that total funding facilities amount to [x] which are inadequate in meeting total projected costs (less projected revenues) / although the applicant appears to have demonstrated an appropriate level of funding, the ability to secure adequate funds is contingent upon the following factors: ….. ]

Recommendations:



5. Applicant Viability

5.1 Applicant Viability

Applicant Viability

Applicant History [Commentary on applicant history]

Management Capabilities [Commentary on management capabilities]

Financial & Management Policies [Commentary on financial and management policies]

Financial Statements [Commentary on financial statements]

Trading Performance [Commentary on trading performance]

Capitalisation [Commentary on capitalisation]

Liquidity [Commentary on liquidity]

Financial Structure [Commentary on financial structure]

Operational Dependencies [Commentary on operation dependencies]

Future Outlook [Commentary on future outlook]

Assessed Credit Quality and

Credit Rating [Commentary on credit quality and credit rating]



5.2 Financial Metrics

Financial Metrics

Jun 2011 '000

Jun 2012 '000

Nov 2012 '000

Profitability

Gross Profit Margin %

Net Profit Margin %

Profitability %

Reinvestment %

Return on Assets %

Return on Equity %

Liquidity

Working Capital $ ,000

Working Capital to Sales %

Cash Flow Coverage %

Cash Ratio %

Current Ratio x

Quick Ratio x

Capital Adequacy %

Gearing

Net Tangible Worth $ ,000

Net Asset Backing %

Gearing %

Debt to Equity x

Interest Coverage x

Repayment Capability %

Financial Leverage x

Short Ratio %

Operating

Operating Leverage x

Creditor Exposure %

Creditor Days days

Inventory Days days

Debtor Days days

Cash Conversion Cycle days



Other Indicators

Sales (Annualised) $ ,000

Activity x

Sales Growth %

Sustainable Growth %

Dividend Payout %

Related Party Loans Receivable %

Related Party Loans Payable %

Related Party Loans Dependency %

Quick Asset Composition %

Current Asset Composition %

Current Liability Composition %

Z-Score Risk Measure


5.4 Applicant Viability Assessment

Assessment of Applicant Viability








Applicant Viability







We have undertaken a qualitative and a quantitative review of [Applicant Name]’s financial viability and in our opinion, the applicant will [be / not be / is likely to be] financially viable, [however is dependent upon…]. On the basis of [management’s financial projections for the year ending 30 June 2013 / financial statements for the year ended 30 June 2012], in our opinion, the entity has an [indicative conditional] rating of [x], with a credit quality classification of [x] and a [x] level of risk.

Recommendations:



6. Underlying Assumptions

6.1 Overview of Key Assumptions

Key Assumption Description / Approach Supporting Evidence and/or References Provided

Revenue

(i) Revenue Source #1

$xx/ unit metric

Calculated by:

[Description / approach] [Supporting evidence and/or references]

(ii) Revenue Source #2

$xx/ unit metric

Calculated by:

[Description / approach]

Cost Assumptions

(i) Cost Item 1 of

$xx/ unit metric


(ii) Cost Item 1 of

$xx/ unit metric


(iii) Cost Item 3 of

$xx/ unit metric


(iv) Cost Item 1 of

$xx/ unit metric


(v) Overheads / Operating expenses

[Include detailed listing] 000’s

Overhead Item 1 $

Overhead Item 2 $

Overhead Item 3 $

…. $

… $

.. $

. $_______



Total $

Commentary on Underlying Assumptions

[Commentary on underlying assumptions]

6.2 Additional Costs and Contingencies

Item Description / Approach

(i) Additional / Unaccounted costs


(ii) Contingencies [Description / approach]

Commentary on Additional Costs and Contingencies

[Commentary on additional costs and contingencies]


6.4 Assessment of Underlying Assumptions

Assessment of Underlying Assumptions








Underlying Assumptions




*To be colour coded as



per the defined traffic light reporting system

We have reviewed the underlying assumptions that underpin the financial projections provided and from our assessment of the supporting evidence, references and rationale, [our opinion is that the underlying assumptions appear reasonable / our opinion is that the underlying assumptions do not appear reasonable / although some of the assumptions appear reasonable, we are unable to determine the reasonableness of a number of underlying assumptions due to there being limited evidence provided]. [Revenue and cost assumptions were all well supported with documentary evidence / No evidence was provided as to support revenue and cost assumptions / Some but not all evidence was provided to substantiate revenue and cost assumptions / Limited evidence was provided to support many of these assumptions, the applicant’s experience is acknowledged]

Recommendations:



7. Arrangement Viability

7.1 Commercial Review

Commercial Review

Capability and Competency [Commentary on capability and competency]

Key Contractual Arrangements

and Documentation [Commentary on key contractual arrangements and documentation]

Performance Requirements,

Milestones and Service Level

Agreements

[Commentary on performance requirements, milestones and service level agreements]

Termination Clauses and

Liquidated Damages [Commentary on termination clauses and liquidated damages]

7.2 Projected membership

Member Name ABN Product Type Volume Estimates

Sign-up Status

[Name of member] [ABN number] [Product type] [x metric unit] [Commentary on current status]


[Reference supporting evidence and/or

references sighted]

Commentary on Projected Membership

[Commentary on Projected Membership]



7.3 Cash flow Analysis

Cash flow Analysis

2013 2014 2015 2016 2017 Total

Cash Revenues

Revenue Source #1

Revenue Source #2

Cash Disbursements

Cost item #1

Cost item #2

Cost item #3

Cost item #4

Cost item #5

Cost item #6

Cost item #7

Cost item #8

Cost item #9

Cost item #10

Overheads

Net Operating Cash flow

Net Investing Cash flow

Net Financing Cash flow

Op Cash bal.

Cl. Cash bal

Commentary on Cash Flow Analysis

[Commentary on cash flow analysis]



7.4 Scenario Analysis

Scenario Assumptions / Penetration

Type Volume

Scenario 1 [Key assumption(s)]

[Context] [xxx metric unit]







Financial Impact of Modelled Scenarios

Type

Assumption

2013 (f) 2013 (f) 2013 (f) 2013 (f)

Scenario 1

X% Segment A X% Segment B

Scenario 2


Scenario 3


Scenario 4


Revenue Assumptions

Revenue Source #1

Revenue Source #2

Total Revenue

Cost Assumptions

Key Cost Item #1

Key Cost Item #2

Key Cost Item #3

Key Cost Item #4

Overheads

Total Cost

Cost/metric unit

Operating Profit

(f): Forecast

Note. The above table is to be repeated for each forward looking year of the applicant’s financial

projections.



Commentary on Scenario Analysis

[Commentary on scenario analysis]

7.5 Break-Even Analysis

Determined Break-Even level

Break-Even Cost Break-Even Volume Break-Even Price

Commentary on Break-Even Analysis

[Commentary on Break-Even Analysis]


7.7 Arrangement Viability Assessment

Assessment of Arrangement Viability








Arrangement Viability







We have undertaken a qualitative commercial review of the arrangement and a quantitative review of the financial projections provided, and [it would appear the arrangement will be viable / it would appear that the arrangement will not be viable] on the basis of the assumptions provided by the applicant [/ although the arrangement appears viable on the basis on underlying assumptions, there are a number of contingencies with a high risk likelihood that would materially impair the overall viability of the arrangement].

Recommendations:



8. Adaptive Management Framework

8.1 Adaptive Management Framework

Adaptive Management Framework

Demand Management [Commentary on demand management]

Contingency Planning [Commentary on contingency planning]

Exit Protocols [Commentary on exit protocols]


8.3 Assessment of Adaptive Management Framework

Assessment of Adaptive Management Framework















We have reviewed the applicant’s Adaptive Management Framework and in our opinion the arrangement [has in place adequate processes, procedures and plans to address and accommodate for deviations from target levels and has addressed the issues of undersupply and oversupply / does not appear to have adequate processes, procedures and plans to address and does not accommodate for deviations from target levels and/or addressed the issues of undersupply and oversupply / has in place some processes, procedures and plans to address and accommodate for deviations from target levels and the issues of undersupply and oversupply, but has inadequate processes, procedures and plans in the following areas… ].

Recommendations:



9. Risk Management and Corporate Governance

9.1 Applicant Risk Management

Applicant Risk Management

Risk Management Framework

Risk Management Plan

Processes

Risk Matrices

Risk Register

Internal Controls

Risk Management Strategies



9.2 Arrangement Risk Management

Arrangement Risk Management

Risk Management Framework

Risk Management Plan

Processes

Risk Matrices

Risk Register

Internal Controls

Risk Management Strategies

9.3 Summary of Key Risk Management Items

Risks associated with the Product Stewardship operations have been covered in [Applicant Attachment X] and a risk assessment matrix provided in [Applicant Attachment X, Page X]. In reviewing the applicant’s risk management framework with a particular focus on financial risk, we have identified the following items that were provided by [Applicant Name] that are of specific importance to the viability of the arrangement:

Risk Register Item No.

Event Consequence Likelihood Internal Controls /

Mitigation Strategy



Key Considerations and Identified Gaps

9.4 Corporate Governance

Corporate Governance

Governance framework

Governance and risk committees

Dedicated person assigned to risk and compliance

Assessment of documentation provided

Key Considerations and Identified Gaps




9.6 Assessment of Risk Management and Corporate Governance

Assessment of Risk Management and Governance








Risk Management and Corporate Governance





We have also undertaken a review of the applicant’s Risk Management and Corporate Governance frameworks and from our review of the documentation submitted the applicant appears to [have adequate risk management, contingency planning and corporate governance frameworks / does not appear to have an established risk management framework and has not demonstrated the adoption of any principles of good corporate governance / have basic frameworks in place with limited processes and protocols to address a limited number of identified risks].

Recommendations:



10. Information Sources and Supporting Documentation

10.1 Information Sources

Information Sources

Information Sources

Summary of Identified Gaps The following items did not contain adequate detail:

[Comment on the potential impact of the gaps]

Discrepancies in the Information Provided

The following discrepancies were noted:

[Comment on the potential impact of the discrepancies]

Other Matters for Attention The following matters were identified for further review:



10.2 Request for Additional Information / Clarification

Following our review we would recommend the following information be obtained and/or clarified with the applicant where appropriate.

Risk Category Request for Additional Information / Clarification

Funding and Capital

Applicant Viability

Underlying Assumptions

Arrangement Viability


Risk Management and Corporate Governance



11. Appendices

[Insert appendices and attachments]

financial viability assessment: voluntary product...

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