2021-04-06 Services and Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA    6 APRIL 2021




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SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                            6 APRIL 2021

      POLICY GUIDELINE - TENDERER FINANCIAL CAPACITY AS BSE 8 SMENT
      Criteria / Indicator     |            CO efinition            |S Tarmet___| Weighting |
       EBIT (earnings before     Operating revenue less operating     } posite | 4.55% |
       interest and tax)         expenditure exc. interest               positive       .aae
       EBIT Growth               Annual growth in EBIT                                  4.55%
       Profit Margin             EBIT divided by operating revenue                      4.55%
       Dividend Payout Ratio     dividends                                <= 100%       4.55%
      Sustainable Growth         Retained earnings divided by equity                    4.55%

      Working CapitaliLiquidity |                                                  id,
      Working Capital Ratio      Current assets divided by current         2415         4.55%
                                 liabilities
       Net Debt to Equity      Debt | less cash holdings, divided by                    4.55%
                                 EBIT divided by interest expense                       4.55%
                                     Credit Review (30% of Total)
       ProfitabilityiSustainability|                                 |                50.00%
                                 Level of risk for the company as
      Credit Appraisal           assessed by a credit risk assessment                  17.50%
                                 agency
                                 Relative credit risk based on financial

                     .           Relative risk based on late account

                                 the entity

      The calculsted overall scores per tenderer will be provided to the tender evalustion panel for
      inclusion 35 part of the financial capability weighting included im the overall tenderer scoring
      assessment

      ROLES AND RESPONSIBILITIES

      The Financial Services branch will provide support in undertaking financial capacity assessments
      and making sppropriste recommendations.
      The Director Corporate Services will oversee the financial capacity assessment process.
      The CEO and Directors sre responsible for ensuring compliance with this policy and ensuring
      accurste and reliable information is provided to Council for effective decision making.
      The Procurement branch will ensure thst sppropriste information is imcluded in tender
      documentation to sllow Council (or 8 third party engaged by Council) to undertake financial capacity
      assessments. Additionally, the Procurement Branch will provide sdvice in regards to how the
      outcomes of the financial sssessment is included as part of the overall tender evaluation.
      Project managers will undertake the necessary due diligence checks throughout the delivery of 6
      project (particularly where sub-contractors sre engaged) to manage any unforeseen financial
      capacity risk that may eventuate.

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