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Accounting and Auditing for PPP/PFI Projects
10 November - 11 November 2004
Accounting and Auditing for PPP/PFI Projects

Following extensive talks with leading industry players, SAE Media Group has identified the need to provide a forum where critical issues and opportunities in Accounting & Auditing are addressed. It is often accounting problems that have sounded the death knell for PFI schemes. It is the aim of this conference to offer guidance to the potential pitfalls that public and private sector accountants should steer clear of. This two-day Conference will keep all those involved in PFI up to date with the current standards and recommendations regarding accounting in PFI. Accounting appraisals and auditing for PPP/PFI projects are undergoing huge changes. This event will be a unique opportunity to learn from leading industry experts including the Public Accounts Committee, NAO, MoD, OGC, Contractors, Bankers, and Advisors whom are all actively involved in the delivery and appraisals of PFI/PPP schemes. A mention of some topics up for discussion will include:

Programme Highlights:

  • Hear the keynote address from the Public Accounts Committee – The guardian of taxpayer value
  • Raise awareness of the latest accountancy and auditing regulations in respect to PPP/PFI projects
  • Understand the bidders and bankers current viewpoint and the effect on PPP/PFI bidding of the latest treasury guidance and policies
  • Gain insight from the PAC, NAO, Audit Commission, OGC and MoD with regards to creating value for money in PFI and understand the key requirements to successful accounting practices
  • Assess the implications of refinancing, taxation, public sector accounting and the various issues which surround successful PFI/PPP accounting
  • Opportunity to meet with some of the leading experts in this field

Benefit from industry presentations by:

KEYNOTE ADDRESS - Richard Bacon,
Member of Parliament (MP), House of Commons
David Finlay,
Head of PFI Development, National Audit Office
Peter Morgan,
Head of Accountancy Development, National Audit Office
Stephen Warren,
District Auditor - Technical Unit, Audit Commission
Paul Martin,
PPP Advisor, Defence Logistics Organisation, Ministry of Defense
Ian Glenday,
Executive Director, Gateways, Office of Government Office
Mikko Ramstedt,
Project Advisor, Financial Partnerships Unit, Scottish Executive
Andrew Mason,
Associate Director, Infrasttructure Finance, Bank of Scotland
Tony Bickerstaff,
Finance Director, Taylor Woodrow Construction
Jon Chester,
Finance Director, Carillion Private Finance

PLUS A HALF DAY PRE-CONFERENCE EXECUITIVE BRIEFING
Turning Theory into Practice
9th November 2004
The Hatton, London
In Association with Ash Corporate Finance

Conference agenda

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8:30

Registration & Coffee

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9:00

Chairman's Opening Remarks

Catherine Burke

Catherine Burke, Partner, Martineau Johnson Solicitors

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9:10

PFI ACCOUNTING IN THE PUBLIC SECTOR

Peter Morgan

Peter Morgan, Manager, Accounting Advice, National Audit Office

  • Concerns regarding the inconsistent accounting practice
  • Affordability and value for money
  • Changes to Treasury and departments’ guidance
  • The role of the financial auditor
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    9:50

    OGC GATEWAYS

    Ian Glenday

    Ian Glenday, Executive Director, Gateways, Office of Government Commerce

  • How the Gateway programme can provide assurance and progression to the next phase of the procurement life cycle
  • Current Government policy regarding Gateway Process Reviews
  • Proving techniques leading to effective delivery, predicting costs and outcomes
  • The application of Gateway to delivery and procurement projects, including services property/construction/IT related business change
  • The accounting implications of Gateway – any causes for concern
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    10:30

    Morning Coffee

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    11:00

    PANEL DISCUSSION – ON/OFF BALANCE SHEET

    Ian Glenday

    Ian Glenday, Executive Director, Gateways, Office of Government Commerce

    Peter Morgan

    Peter Morgan, Manager, Accounting Advice, National Audit Office

    Paul Martin

    Paul Martin, Internal Advisor, Defence Logistics Organisation, Ministry of Defence

    Paul Mountain

    Paul Mountain, Partner, Martineau and Johnson

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    11:40

    PPP/PFI ON-BALANCE SHEET ACCOUNTING

    Paul Martin

    Paul Martin, Internal Advisor, Defence Logistics Organisation, Ministry of Defence

  • Impact of “on balance sheet” outcomes to MoD
  • Affordability constraints
  • Accounting for PFI in MoD
  • Managing financial risk
  • Latest HM proposals
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    12:20

    Networking Lunch

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    13:50

    THE BIDDERS CURRENT VIEWPOINT

    Tony Bickerstaff

    Tony Bickerstaff, Finance Director, Taylor Woodrow Construction

  • How the accounting impacts on the business drivers for PFI/PPP
  • How has changing guidance impacted bidders?
  • Working in collaboration – fact or fiction?
  • How is bidders attitude changing?
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    14:30

    THE BANKING PERSPECTIVE

  • Is accounting important to a funder?
  • The bank as a lender
  • The bank as an investor
  • Current issues: IAS, transfer pricing, bid costs and others
  • Future developments: CGF and others
  • Andrew Mason

    Andrew Mason, Associate Director, Infrastructure Finance, Bank of Scotland

    Leslie Tennant

    Leslie Tennant, Senior Director, Infrastructure Finance, Bank Of Scotland

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    15:10

    Afternoon Tea

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    15:40

    THE TAXATION OF PFI/PPP PROJECTS

    Paul Bartlett

    Paul Bartlett, PFI Director, Deloitte & Touche

  • Review of the traditional tax structure for PFI projects
  • Contract Debtor tax treatment for PFI projects
  • Latest developments in PPP/PFI taxation:
    • PIFs
    • Reform of corporate taxation
    • VAT, Customs latest approach
    • SDL, Inland Revenue view of PFI one year on
    • Transfer pricing and thin capitalisation
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    17:00

    Chairman’s Closing Remarks and Close of Day One

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    8:30

    Registration & Coffee

    clock

    9:00

    Chairman's Opening Remarks

    Brian Madden

    Brian Madden, Director, Strata Business Development

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    9:10

    NATIONAL AUDIT OFFICE

    Richard Wade

    Richard Wade, Senior Manager PPP Projects, National Audit Office

  • The methods by which value for money should be assessed
  • The balance between quantitative and qualitative factors
  • Particular issues relating to the operational phase
  • Using evaluation to reduce future risk
  • clock

    9:50

    AUDIT COMMISSION

    Stephen Warren

    Stephen Warren, District Auditor – Legal and Technical Unit, The Audit Commission

  • FRS 5 vs TTFTN1 – is there a real difference? If so, which takes priority?
  • ‘Not quite’ PFI – the accounting treatment of complex contracts which are not PFI deals
  • What happens next? – reviewing accounting treatment during the life of the contract
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    10:30

    Morning Coffee

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    11:00

    NON PROFIT DISTRIBUTING ORGANISATION

    Mikko Ramstedt

    Mikko Ramstedt, Project Advisor, Financial Partnerships Unit, Scottish Executive

  • The model, background and key features
  • Corporate governance
  • Tax treatment
  • Balance sheet position
  • clock

    11:40

    PANEL DISCUSSION – AUDITING ISSUES ON HOW REFINANCING IS SHARED

    Stephen Warren

    Stephen Warren, District Auditor – Legal and Technical Unit, The Audit Commission

    Edward Yescombe

    Edward Yescombe, Director, Yescombe Consulting

    Brian Madden

    Brian Madden, Director, Strata Business Development

    Richard Wade

    Richard Wade, Senior Manager PPP Projects, National Audit Office

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    12:20

    Networking Lunch

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    13:50

    ACCOUNTING IMPLICATIONS OF A PFI FINANCIAL MODEL

    Jon Chester

    Jon Chester, Finance Director, Carillion Private Finance

  • Financial models are cash driven solutions and accounting is a secondary consideration
  • The proper application of accounting standards impacts on profit, tax and dividend
  • What are the most common areas of conflict and flexibility?
  • Fixed asset vs finance debtor accounting
  • Treatment of major maintenance as smoothed or as incurred
  • FRS 5 Application Note G and the implications for revenue recognition
  • The incorporation of actual accounting results in financial model updates
  • clock

    14:30

    ACCOUNTING SYMMETRY – FOCUS ON PRIVATE SECTOR ACCOUNTING

    Mark Williams

    Mark Williams, Director of PFI Accounting, Deloitte

  • Public sector PPP/PFI accounting: sectors, types of schemes and future direction
  • Private sector PPP/PFI accounting overview, including linkages with taxation of PPP/PFI projects
  • Relevant accounting standard supporting assessment
  • Contract Debtor accounting and Composite Trader Taxation
  • A few project experiences
  • PPP is changing – new accounting challenges
  • Accounting is changing – impact of international accounting
  • clock

    15:10

    Afternoon Tea

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    15:40

    REFINANCING OF PFI CONTRACTS

  • What is refinancing?
  • Reasons for refinansings
  • Sharing the gain
  • 'Rescue' refinancings
  • Consent to be refinansing
  • Edward Yescombe

    Edward Yescombe, Director, Yescombe Consulting

    clock

    16:20

    ISSUES FOR PPP/PFI AUDITORS

  • Revenue and profit recognition
  • Lifecycle expenditure
  • Long term contingent liabilities
  • Meeting client needs
  • Future developments
  • Investing for competitive advantage
  • Richard Kelly

    Richard Kelly, Partner, Property and Constructor Sector Leader, RSM Robson Rhodes LLP

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    17:00

    Chairman’s Closing Remarks and Close of Conference

    The Hatton, at etc. venues

    51/53 Hatton Garden
    London EC1N 8HN
    United Kingdom

    The Hatton, at etc. venues

    HOTEL BOOKING FORM

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    WHAT IS CPD?

    CPD stands for Continuing Professional Development’. It is essentially a philosophy, which maintains that in order to be effective, learning should be organised and structured. The most common definition is:

    ‘A commitment to structured skills and knowledge enhancement for Personal or Professional competence’

    CPD is a common requirement of individual membership with professional bodies and Institutes. Increasingly, employers also expect their staff to undertake regular CPD activities.

    Undertaken over a period of time, CPD ensures that educational qualifications do not become obsolete, and allows for best practice and professional standards to be upheld.

    CPD can be undertaken through a variety of learning activities including instructor led training courses, seminars and conferences, e:learning modules or structured reading.

    CPD AND PROFESSIONAL INSTITUTES

    There are approximately 470 institutes in the UK across all industry sectors, with a collective membership of circa 4 million professionals, and they all expect their members to undertake CPD.

    For some institutes undertaking CPD is mandatory e.g. accountancy and law, and linked to a licence to practice, for others it’s obligatory. By ensuring that their members undertake CPD, the professional bodies seek to ensure that professional standards, legislative awareness and ethical practices are maintained.

    CPD Schemes often run over the period of a year and the institutes generally provide online tools for their members to record and reflect on their CPD activities.

    TYPICAL CPD SCHEMES AND RECORDING OF CPD (CPD points and hours)

    Professional bodies and Institutes CPD schemes are either structured as ‘Input’ or ‘Output’ based.

    ‘Input’ based schemes list a precise number of CPD hours that individuals must achieve within a given time period. These schemes can also use different ‘currencies’ such as points, merits, units or credits, where an individual must accumulate the number required. These currencies are usually based on time i.e. 1 CPD point = 1 hour of learning.

    ‘Output’ based schemes are learner centred. They require individuals to set learning goals that align to professional competencies, or personal development objectives. These schemes also list different ways to achieve the learning goals e.g. training courses, seminars or e:learning, which enables an individual to complete their CPD through their preferred mode of learning.

    The majority of Input and Output based schemes actively encourage individuals to seek appropriate CPD activities independently.

    As a formal provider of CPD certified activities, SAE Media Group can provide an indication of the learning benefit gained and the typical completion. However, it is ultimately the responsibility of the delegate to evaluate their learning, and record it correctly in line with their professional body’s or employers requirements.

    GLOBAL CPD

    Increasingly, international and emerging markets are ‘professionalising’ their workforces and looking to the UK to benchmark educational standards. The undertaking of CPD is now increasingly expected of any individual employed within today’s global marketplace.

    CPD Certificates

    We can provide a certificate for all our accredited events. To request a CPD certificate for a conference , workshop, master classes you have attended please email events@saemediagroup.com

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