AUDITING

At Russell Bedford, we provide Auditing and Assurance services, with the commitment to quality, knowledge, rigour and methodological efficiency in accordance with generally accepted auditing standards and legal provisions in force. Moreover, we provide a personal approach to clients, while maintaining confidentiality, independence and objectivity in our analyses and opinions to help our clients and their stakeholders develop their businesses.

As a member of Russell Bedford International and a member of “The Forum Of Firms”, Russell Bedford in Spain applies an auditing methodology that is standardized and adapted to the needs of companies of varying sizes and activity at the international level, thereby seeking our objective of maximum quality and providing clients with added value.

Auditing of annual accounts and financial statements

Auditing of annual accounts according to IFRS and US GAAP principles and other frameworks of financial reporting: Transparency in the financial statements of a company is an indicator of quality and of the commitment to citizens, and it represents an advantage over competitors.

Conducting audits contributes significantly to transparency in the information provided to the users of our reports and allows our clients to obtain the highest level of knowledge about their business and the efficacy of their internal control systems.

Auditing of the public sector and of administrative concessions

Auditing of the Public Sector

With respect to public auditing, our mission is to cooperate with both external and internal control bodies in areas for which legislation provides for the support of external professionals when performing audit and financial control functions. The following are highlights of our services for public bodies and entities:

• Financial auditing
• Project auditing
• Analysis and control of public contracting processes
• Cost reduction and austerity plans
• Rationalization and shared services
• Operational and financial restructuring
• Tax advising

Administrative concessions: auditing and advising

The current economic juncture of the public sector means that entities are forced to design strategies and mechanisms for their financial sustainability through rationalization and public expense containment policies. To do so, we offer advising on the development of invitations to tender, comprehensive advising on project financing, project modelling and the valuation of concession assets.

As Russell Bedford, we offer our collaboration on designing these internal control mechanisms in the following areas:

• Optimum assignment of resources
• Sustainability and containment of the cost structure
• Debt refinancing plans
• Viability and write-off plans
• Short- and long-term cash flow plans
• Analytical information about indicators to facilitate government decision-making

Concession review and auditing services

Our services in the area of concession reviews and auditing are targeted at public entities, and they include advising in the following contexts:

At the end of concessions:

• Analysing the correct rate allocation of a concessionaire’s costs and correct compliance with other contractual obligations
• Identifying the weaknesses of a concession and of control by a public entity with respect to implementing improvements in a future new concession
• Assessing the current state of a concession

During a concession:

• Preparing expert reports within the framework of a conflict between a public entity and a concessionaire
• Leading negotiations with a concessionaire
• Auditing price review dossiers submitted by concessionaires

We have experience mainly with concessions for water and sewer management cycles, trash and roadway cleaning, cemetery and mortuary services, recycling centres, ports, blue zones, sports facilities, mobility zones and others.

Advising services on the preparation of new concessions

Our advising services on the preparation of new concessions include the following points:

• Analysis of concession viability: preparation of economic-financial models that consider the investment needs of a concessionaire, the initial and annual royalty to be paid to the public entity and the remuneration for the concessionaire

• Assessment of the concession in order to estimate the amount of the initial royalty to be received by the public entity

• Analysis of the suitability of providing the public service through direct or indirect management or a combination thereof (mixed capital company: public entity and concessionaire)

• Collaboration on drafting General Conditions

• Preparation of the Establishment Project

• Advising on the committees in charge of a concession project (with political figures and technicians of the public entity) and presence during decision-making at city council meetings

Benefits for public entities

Our services provide public entities with various benefits, in both the short and long term:

Short-term benefits

• Improvement of control over administrative concessions
• Support on renegotiating with concessionaires
• Reduction of the debt with concessionaires through negotiation based on compliance with the contract and the general conditions
• Reduction of rates charged to citizens
• Identification of the weaknesses of a concession

Medium-to long-term benefits

• Reduction of budget items
• Improvements in the profitability of public services for public entities
• By conducting a historical analysis of the concession, improvements in the remuneration for the municipality can be achieved by setting the initial and annual royalties of new concessions