modelling services for professionals F1 F9 transparent collaborative

PFI Operational Model Service

op er a tion al _ mo del \ [op-uh-rey-shuh-nl] _ [mod-l] \ noun 1. a model that is easily updated for actuals data generated by accounting software. 2. a model that converts historical financials to a format consistent with the ongoing forecast. 3. a model with a high resolution timeline aligned to all key reporting dates. 4. an efficient monitoring tool for shareholders and banks.

to update
PFI Operational Model 03m

easy &

understand
January 2009

1/4

modelling services for professionals F1 F9 transparent collaborative

Changing modelling requirements As your project enters operations the modelling needs change; updating for actuals, re-forecasting from these, reporting regularly to banks, and securing timely distributions to shareholders becomes paramount. Doing this with ease and peace of mind should be a base requirement. However, your existing model was built purely to achieve financial close, so a new model is normally the right solution. Our re-performance based approach From the next forecast period onwards your new model will initially exactly reproduce the results of the old model. Taking this forward-looking approach we eliminate all the historically and commercially redundant functionality of the old model. We then update the new model for your latest management account actuals and generate a revised forecast. Benefits of the re-performance approach Requires minimal upfront specification time. The old model provides us with most of the information needed to build the new model. The old model is a known and trusted reference point, giving all parties comfort when the new model re-produces its results. The re-performed version is the best possible starting point for specifying commercial level logic changes relating to ongoing business developments. The new model easily and precisely measures all changes from the old model. Customised modelling While we start the new model from our UK PFI operational skeleton model, the finished model is completely tailored to your project. We would never force fit your business to a template model. Transparent and maintainable We use the uniquely transparent FAST Method, previously known as the F1F9 Standard, to build our models. This makes them easy to understand and easy to maintain; for details see www.fast-modeling.net. Everyone from your CEO down will be able to follow the calculations and, with a little bit of training, a competent Excel user will safely be able to maintain the model. Our models are built to last.
PFI Operational Model 03m

Six months inclusive Update & Maintenance policy Your new model comes with a six months Update & Maintenance policy during which we, at no extra cost, will update the model for actuals and, under your instruction, refine and amend the model to reflect ongoing changes to the commercial reality facing your project. In our experience a good operating model should be considered a living, evolving tool. One month from agreed specification Simply email us the old model along with the latest set of management accounts, both the input and output formats. Based on this we discuss and agree the new model specification with you. Three weeks later we deliver the first draft for your review, and ten days after that the re-performed version that aligns to the old model and is ready to be updated for actuals. All we need to agree before we start work is the time line (start, periodicity and end) and how to map the accounting actuals to the financial statements. Note: we only build single periodicity models and recommend quarterly resolution. Pricing 15,000 fixed price, invoiced on delivery of the re-performed model, one month after agreeing the specification with you. This price also covers the subsequent six months Update & Maintenance service. At the end of this period we offer you an ongoing update and maintenance service for 500 per month (terms and conditions apply). Our team, our experience The work is performed by our team of 19 modellers based in New Delhi, and overseen by Morten Siersted. Since pioneering the operational model concept, we have delivered over thirty operational models and now service nearly 10% of the UK PFI market. This is our core business.
January 2009

2/4

modelling services for professionals F1 F9 transparent collaborative

Enter the management accounts easily in one place.

Update other actuals such as tax losses balances, still on the same sheet.

Check the financial statements re-categorisation logic further down the sheet.

Actuals and re-forecast figures are presented sideby-side in the financial statements.

PFI Operational Model 03m

January 2009

3/4

modelling services for professionals F1 F9 transparent collaborative

View and print the reports. Your model comes with three detailed reports as standard.

From the table of contents navigate and interrogate the model as necessary.

Independent model audit Where an independent model audit is required, we will work with your chosen auditor to ensure a prompt sign off. If you choose an auditor who positively supports the FAST modelling method it will ensure that your combined model build and audit cost is extremely competitive. If falling within the six months inclusive Update & Maintenance period, our participation in the audit process is included within the 15,000 fixed price.

Contact us If you would like more details about our operational model service: please do not hesitate to call Morten Siersted on +44 20 3239 9698 or email him at msiersted@f1f9.com

to update
PFI Operational Model 03m

easy &

understand
January 2009

4/4