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2018-05-22 Special Meeting Agenda
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AGENDA
Special Meeting
Tuesday, 22 May 2018
commencing at 9.00am
Council Chambers, 9 Pelican Street, Tewantin
Committee: Crs Tony Wellington (Chair), Frank Wilkie, Jess Glasgow, Ingrid
Jackson, Joe Jurisevic, Frank Pardon and Brian Stockwell
“Noosa Shire – different by nature”
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Section 2
SPECIAL MEETING AGENDA 22 MAY 2018
TABLE OF CONTENTS
ITEM PAGE
ATTENDANCE & APOLOGIES -
REPORTS 3
1 PEREGIAN BEACH DIGITAL HUB – BUILDING TENANCY AND TENDER 1718T127 3
MEETING CLOSURE -
Page 2 of 16
Section 3
SPECIAL MEETING REPORT 22 MAY 2018
REPORTS
1 PEREGIAN BEACH DIGITAL HUB – BUILDING TENANCY AND TENDER 1718T127
Author Manager Economic Development, Anthony Dow
Environment and Sustainable Development Department
Index ECM/ Subject/ Economic Development
Attachments 1. Crowe Horwath Probity Letter
2. Tender Assessment Detailed Information Sheet – Confidential
(This attachment was considered in closed session in accordance with Section 275 (1) of the Local
Government Regulation 2012, which permits the meeting to be closed to the public for
business relating to the following:
(e) contracts proposed to be made by it
(h) other business for which a public discussion would be likely to prejudice the interests
of the local government or someone else, or enable a person to gain a financial
advantage
EXECUTIVE SUMMARY
In December 2017, the Peregian Beach Digital Hub (Digital Hub) Establishment Phase
Implementation Plan was adopted by Council.
In early March 2018, Council approved a revised tenancy process for the Digital Hub and Chris
Boden joined Noosa Council as Digital Hub Director. Chris is now managing the implementation
plan, based at the Digital Hub.
Following the report outlining the tender process presented to Council in March, a tender for private
office tenancies and a registration of interest for co-workers was completed.
In aggregate, the responses validate the market need for a technology-focused Digital Hub. The
targeted marketing campaign successfully attracted interest from 58 technology businesses and
entrepreneurs (5 via tender and 53 via registration of interest) employing around 50 people, with
forecasted growth to 75 jobs within a 12-18 month period.
Based on the response, the tenancy mix is expected to comprise private office tenancies for one
‘Established’ and three ‘Emerging’ technology enterprises on the upper floor and approximately
twenty co-work memberships for individual entrepreneurs on the ground floor.
Factoring this proposed tenancy mix into the Hub’s financial projections indicates that the net
position forecast for the 2018/19 year is anticipated to be within the range outlined in the December
2017 Council report (refer to Finance Section).
The loss of prospective tenants to other hubs through the tender process and the rental rates
proposed in the responses are indicative of a highly competitive environment where a small
number of promising technology companies are in demand both for their tenancy and job creation
potential.
The key risk for this project is losing the qualified respondents due to delays or alternative location
competitive offers. The recommendation to award this tender and delegate final lease negotiations
on terms and rental offer will assist in mitigating this risk.
Page 3 of 16
Section 4
SPECIAL MEETING REPORT 22 MAY 2018
RECOMMENDATION
That Council note the report by the Economic Development Manager to the Special Council
Meeting dated 22 May 2018 and:
A. Award the Tender Number 1718T127 for the tenancy of the Digital Hub to the following
tenderers and delegate authority to the CEO to finalise lease negotiations with each:
1. Atmail Pty Ltd;
2. Alkira Software Pty Ltd;
3. Commtract Communication Services Pty Ltd;
4. PB Research and Development Pty Ltd;
B. Agree to proceed to an Invitation to Quote for Property Management Services via Council’s
Vendor Panel Marketplace; and
C. Approve the Co-working tenancy process and tenancy mix as noted in this Report.
REPORT
1. Background
The Digital Hub offers a significant opportunity for Council to strengthen and diversify its economy
as articulated in the Local Economic Plan and Corporate Plan. In mid-December 2017,
the Implementation Plan for the Establishment phase of the Peregian Beach Digital Hub was
presented to Council with the following recommendations:
Engage a resource to facilitate the implementation plan;
Undertake an EOI process for tenancy of the Hub;
Present a revised financial model and the intended tenancy mix following the EOI process.
In early March, Council approved a revised tenancy process for the Digital Hub and Chris
Boden joined Noosa Council as Digital Hub Director and is now managing the implementation
plan, based at the Hub.
A public tender was released on 22 March 2018 for technology enterprises to apply for office
tenancies at the Hub. This was accompanied by a registration of interest process for technology
co-workers.
2. Tender Overview
To tenant the Hub’s private office spaces, a robust tender process was designed. Crowe Horwath
were appointed as Probity Advisors and a copy of the post-engagement letter is provided at
Attachment 1.
A website for promoting the Hub was created at peregianhub.com.au, along with comprehensive
multimedia content detailing the Hub facility and service proposition. In addition, the tender was
advertised in the Noosa News on Friday 23 March 2018 and Sunshine Coast Daily on Saturday
24 March 2018.
The tender website was promoted through a range of online, social media and print channels,
which primarily targeted local and regional technology businesses with secondary promotion in the
major metros.
That promotion resulted in over 50,000 video views and 850 visits to the website to view the
tenancy information, with 60 companies registering for the tender. Industry briefings were then held
in late March with 14 attendees. This level of engagement has contributed to raising the profile of
Noosa and its digital economy.
Page 4 of 16
Section 5
SPECIAL MEETING REPORT 22 MAY 2018
Ultimately, the tender process solicited five tender applications: One Established
enterprise (Atmail) and four Emerging enterprises (Alkira, Commtract, PB Research &
Development and GrowOnline).
Tenderer Business Name Description (200 word pitch extracted from Tender document)
Atmail We’ve help solve email hosting headaches for telecommunications and
hosting service providers across every continent, thanks to our ability to
provide trusted and customised solutions, either hosted on our cloud or
by providing software to power the provider’s cloud platforms. Today, we
power over 40 million mailboxes worldwide and offer global support
coverage with the help of our team members in Australia, the United
States, India and Europe. If you’re looking for a trusted email hosting
partner, so you can get back to core business, we can help.
Alkira Akira Software is a business changing the lives of blind people with a
novel intelligent, talking web browser. The Alkira solution solves a
significant problem where blind and low vision people (BVI) cannot
access web portals delivering life-essential services. Large local
councils, corporate entities and advocacy groups are the first target
customers. In the next iteration the software will, using AI and machine
learning will allow the addition of voice services to navigation and
transact with websites without requiring website changes. It can be used
with Google home, Amazon Alexa or Apple Siri. The tool will allow
millions of small & medium enterprises utilise the new medium without
the additional infrastructure cost.
Commtract Commtract is Australia’s first marketplace and support network for
communications professionals. Our mission is to connect organisations
from large corporations to local councils, with the world’s best
communications talent. We help our clients by allowing them to access
flexible, high quality professionals to quickly meet their communications
needs. We help our consultants by finding them exciting work
opportunities and simplifying the business of consulting. Commtract is
owned and operated by former communications professionals. We
understand the industry and the issues.
PB Research & Our product, heypiggybank.com, is a consumer savings product for
Development (Trading as people to invest and own cryptocurrencies. With the intention for users
PiggyBank) to subscribe to a monthly plan (e.g $30) to buy & transfer
cryptocurrencies to their PiggyBank. And when the time comes, users
can “break their PiggyBank” to withdraw funds to a nominated bank-
account. The product is targeted towards the “average Joe” who would
like to own crypto-currencies, however due to the technical and security
barriers, hesitates to make the leap. PiggyBank makes it easy for
consumers to own and hold crypto’s with a few clicks - Made for mobile,
a simple on-boarding process, and designed with security in mind.
GrowOnline GrowOnline provide a complete, end-to-end, integrated, inbound digital
marketing solution for small businesses at low cost.
3. Tender Assessment
Four of the five applications successfully met the tender criteria that assessed the applicants’
financial capacity, business and individual talent, technology fit and cultural fit. One applicant,
GrowOnline, has withdrawn from the tender process and are in discussions with Council regarding
co-work options at the Hub.
Due to the commercial in confidence nature of the tender submissions, and the fact that commercial
negotiations over lease terms and rental payments has yet to be finalised, a confidential tender
assessment information document is provided at Attachment 2.
Based on the preferred floorspace configuration detailed in the tender responses, and subject to
awarding of tender, the successful tender submitters could all be accommodated in the upper
floor area with minimal space available for additional private office tenants when factoring-in
forecasted head-count growth.
Page 5 of 16
Section 6
SPECIAL MEETING REPORT 22 MAY 2018
Any future tenants would be sourced via a commercial real estate partner as part of their
obligations under a property management service agreement. That partner will source potential
tenants on an as-needs basis and assess them based on the criteria from the tender. Refer
section 6 of this report for further detail on this process.
4. Co-working Tenancy Process
In parallel with the tender for private office spaces, a co-work registration of interest process was
conducted to assess the market appetite for individuals wanting to work in a shared environment
at the Hub.
Thus far, 53 applications have been received for co-work. An initial assessment suggests that
around half of those would fit Councils preferred criteria:
Entrepreneur working in technology;
Building a tech business, looking to grow and planning to hire locally;
Currently working from home or similar environment (i.e. not from a local co-working space);
Benefit from entrepreneurial support.
The full application process for co-work membership is underway offering an initial 6 month
membership for technology entrepreneurs at a cost of $450 per month. This rate is comparable to
local co-work offers. The Digital Hub Director will apply the preferred criteria outlined above to
finalise selection of co-work tenants. Current demand suggests that, subject to fitout completion,
20 co-workers will be in place by 31 July 2018.
5. Recommended Tenancy Mix
We are optimising the tenancy mix for digital jobs growth and ratepayer return. Based on the market
learnings from the response thus far, the mix is likely to have a larger proportion of tenants in the
co-work category than first projected. This reflects the maturity of the local digital sector and the
potential to graduate Technology Co-workers to leased office space locally. As a result, the
following tenancy mix is recommended:
Upper Floor – 5 private office spaces, accommodating approximately 30-40 jobs
Ground Floor – 20 co-work desk rentals plus co-work, common spaces for specific program
delivery.
6. Property Management Services
The Property Branch will undertake an ‘Invitation to Quote’ for property management services via
Council’s Vendor Panel Marketplace that includes:
managing leases;
collection of rentals, outgoings & arrears;
management of external services & utilities;
securing tenants & re-tenanting for vacant office space .
Previous Council Consideration
Council Workshops:
12 May 2017
26 October 2017
17 November 2017
7 December 2017
Council Briefing:
11 May 2018
Page 6 of 16
Section 7
SPECIAL MEETING REPORT 22 MAY 2018
Meetings:
Ordinary Meeting, 21 September 2017, Item 7, Page 18
That Council note the report by the Economic Development Manager to the General Committee
Meeting dated 18 September 2017 regarding tender 1617T130 for the provision of Management
Services – Peregian Beach Digital Hub and:
A. Notify tender submitters that a decision on tender 1617T130 is on hold while Noosa Council
further considers the business case of the Peregian Digital Hub project; and
B. Request the CEO to arrange for advice to be provided to Council on strategies to meet
Council’s broad intentions for the Peregian Digital Hub.
Special Meeting, 13 October 2017, Item 2, Page 3
That Council note the report by the Director Community Services to the Special Council meeting
dated 13 October, 2017 and;
A. Not award tender 1617T130 in accordance with Section 228 (8) of the Local Government
Regulation 2012 and Conditions of Tender clause 14.1; and
B. Request the Chief Executive Officer to inform all tenderers of Council’s decision.
Ordinary Meeting, 21 December 2017, Item 6, Page 12
That Council note the report by the Economic Development Manager to the General Committee
Meeting dated 18 December 2017 and;
A. Adopt the Peregian Beach Digital Hub Establishment Phase Implementation Plan –
December 2017 provided at Attachment 1;
B. Approve the engagement of a project resource to facilitate the implementation plan;
C. Approve the undertaking of an Expression of Interest process for tenancy of the Digital Hub;
D. Note that, following the EOI process, a further report will be provided to Council, presenting
a revised financial model and the intended tenancy mix.
Special Meeting, 1 March 2018, Section 2 - Item 1, Page 2
That Council note the report by the Economic Development Manager to the Special Council
Meeting dated 1 March 2018 and;
A. Approve the Digital Hub tenancy process and associated assessment criteria and weightings
as detailed in the report with the following addition to the Tender Assessment Criteria in all
categories under “Alignment with the vision”:
The second sentence is to read:
“Evidence of intended contribution to building the Digital Hub community including
demonstrated contribution based on past and present actions”; and
B. Agree to proceed to the public tenancy process for tenancy of the Peregian Beach Digital
Hub.
Finance
The table below summarises the five-year financial forecast for the Hub as outlined in the
December 2017 report.
Page 7 of 16
Section 8
SPECIAL MEETING REPORT 22 MAY 2018
Overall, while the factors outlined below will drive a shift in the revenue and tenancy mix, it is not
anticipated to impact total annual revenue for the Hub during the 2018/19 year
An evaluation of the proposed tenancy mix compared to the December 2017 forecast reveals the
following changes in assumptions underlying the Hub’s operating revenues:
Total permanent lease space is anticipated to be lower under the proposed tenancy mix
compared to the December 2017 forecast.
However, the December 2017 forecast assumed a low occupancy rate for permanent rental
in the first year (50%). The timing of lease negotiations and proposed annual lease terms
means that the let space will actually be occupied for the entire financial year.
Demand for co-work space is higher than anticipated compared to the December 2017
forecast.
The permanent lease rate charge per square metre under the proposed tenancy mix will be
lower than the December 2017 forecast. While the fee for co-work space is anticipated to be
higher than the December 2017 forecast.
In respect of cost estimates, the following is noted:
A Digital Hub Director has been employed to manage the facility. Provision of funding for
salaries and wages had been allowed for under the December 2017 forecast. Once the
Certified Agreement is finalised, the financial projections will be updated to reflect 2018/19
budget forecasts for salaries and wages.
All other operating and maintenance cost forecasts remain aligned to previous forecasts.
The fitout requirements for the facility were presented to Capital Works Executive on 24 April
2018, where funding for some immediate work for fitout scope and design of $60k was
endorsed.
Once the tenancy mix has been adopted, the second stage of the fitout can be undertaken
to accommodate all permanent lease and co-work space needs. Further funding
requirements for the second stage to complete the fitout will be also addressed through the
Capital Works Executive for inclusion in the budget.
Budget Implications
2017/18 Budget
Nil.
2018/19 Budget
The final mix of permanent lease tenancy and co-work revenues will inform 2018/19 budget for
adoption in June 2018.
7. Risks and Mitigations
Risk Mitigation
Loss of potential tenants through delays Expedite the awarding of the tender to the four
qualifying respondents and proceed to lease
negotiations.
Unable to reach agreement on lease terms Ensure all options have been exhausted.
Compliance with LGA Regulations for fair Valuation and market research report indicates a
market price highly competitive marketplace for the attraction of
commercial tenants
Unoccupied Building due to delay in reaching Responsive Council with robust parameters that
agreement with prospective tenants supports fair and commercially viable decision for
all parties. Delegated CEO authority
Page 8 of 16
Section 9
SPECIAL MEETING REPORT 22 MAY 2018
Risk Mitigation
Unoccupied Building due to delay in Expedite initial fitout for co-work space and finalise
completing fitout all fitout matters as part of lease negotiations
Not being able to apply an entrepreneurial, Governance framework that enables agility,
agile approach to achieve KPIs due to flexibility & entrepreneurialism
constraints and regulatory requirements of
local government.
Consultation
External Consultation - Community & Stakeholder
Crowe Horwath - Appointed as probity advisors
Herron Todd White Commercial - Market Rental Research Report
Internal Consultation
The operational project team meets weekly and consists of representatives from economic
development, property, finance and procurement.
Departments/Sections Consulted:
x Chief Executive Officer x Community Services x Corporate Services
Executive Officer Community Development Financial Services
Executive Support Community Facilities ICT
Libraries & Galleries Procurement & Fleet
Local Laws Property
Waste & Environmental Health Revenue Services
x Executive Services x Environment & Sustainable Development x Infrastructure Services
Community Engagement Building & Plumbing Services Asset Management
Customer Service Development Assessment Buildings and Facilities
Governance Economic Development Civil Operations
People and Culture Environmental Services Disaster Management
Strategic Land Use Planning Infrastructure Planning,
Design and Delivery
Page 9 of 16
Section 10
SPECIAL MEETING REPORT 22 MAY 2018
Attachment 1
Page 10 of 16
SPECIAL MEETING REPORT 22 MAY 2018
Attachment 1
J). Crowe Horwath. ee
PART OF FINDEX eee com \nmmmantona
Level 16 120 Edward Street
Srsbane QLD 4000
14 May 2018 Austraila
Tel +61 7 3233 3555
Fax +61 7 3233 3567
Noosa Shire Council www_crowenorwath.com.au
Mr Anthony Dow
Economic Development Manager
PO Box 141
Tewantin QLD 4565
Dear Anthony,
Probity Advisory Services — Peregian Beach Digital Hub Tenancy
Crowe Horwath was engaged by Noosa Council (Council) to perform Probity Advisory Services over the
Council Peregian Beach Digital Hub Tenancy tender processes. This letter outlines the processes
undertaken and documents the findings identified from performing the Probity Advisory Services at
Council during the period 12 March to 3 May 2018.
The Crowe Horwath team appreciate the opportunity to have assisted Council in performing the Probity
Advisory Services. We would like to acknowledge the assistance provided by Council personne! during
the engagement. Council Management and staff were receptive of any feedback provided throughout
the engagement.
As Probity Advisor, the objectives requested by Council for the Digital Hub Tenancy tender was to:
= Ensure Council conforms with processes designed to achieve value for money;
»* Check there was accountability and oversight of the assessment pane! deliberations:
* Ensure all bids were assessed and evaluated using the same criteria and in accordance with the
Local Government Regulation Contracting Principles:
« Preserve public and bidder confidence in Council's processes:
= Improve defensibility of decisions to potential legal challenges or other external scrutiny; and
= Provide an advisory report to accompany the engagement recommendation to the Council
Committee Meeting.
Current Status of the Tender
At the conclusion of the Probity Advisory Services, the Digital Hub Tenancy tender had proceeded to
the stage of a briefing paper to Council being prepared detailing the evaluation team’s recommended
outcomes. We understand this briefing paper is due to be presented to Council in the Special Council
meeting planned for 22 May 2018.
Overall Probity Assessment
Our overall assessment of the Digital Hub Tenancy tender processes identified the following:
= The tender was undertaken in a manner that complies with Council's procurement policy and the
established Probity Plan:
Crowe Horwath (Aust) Ply Lids a member of Crowe Horwath international, 2 Swiss verein. Each member of Crowe Honwath Is a separate and
Independent legal entity. Lisdilty limited by a scheme approved under Professional Standards Legisiation. Liability limited other than for the acts or
omissions of financial services Ncensees.
Page 10 of 16Section 11
SPECIAL MEETING REPORT 22 MAY 2018
Page 11 of 16
SPECIAL MEETING REPORT 22 MAY 2018
Jr Crowe Horwath.
PART OF FINDE
» Alltenderers were given equal opportunity and were treated fairly and consistently: and
«= The tender evaluation process was undertaken in a manner free of bias and the ranking is a tue
representation of the tenderers’ offers.
Scope of the Engagement
We provided Probity Advisory Services over the Digital Hub Tenancy and check Council's approach to
market is in accordance with the Local Government Framework. A summary of the activities / procedures
performed are included in Appendix 1.
Summary of Observations
Two (2) observations, summarised below, were identified during the performance of the Probity Advisory
Services. In each case, recommendations raised were actioned by Council Management in a timely
manner and to the satisfaction of the Probity Advisor:
= Observation 1 -— Approach to Social Media and promotion of tender: The Probity Advisor
provided recommendations to Council on how to promote the tender to potential applicants through
social media channels without creating bias (perceived or actual) towards potential applicants and
ensuring the integrity of the Evaluation Panel members was not compromised. These
recommendations were accepted by Council.
* Observation 2- Approach to manage potential Conflicts of Interest: The Probity Advisor
provided recommendations to Council on how to manage conflicts of interest during the tender
process. These recommendations were accepted and implemented by Council.
A detailed listing of all procedures performed is included in Appendix 1 to this letter. These procedures
were undertaken and no further observations were identified.
Basis and Use of this Letter
This letter has been prepared in accordance with the objectives, scope and approach set out in the
Proposal Letter dated 12 March 2018 and subject to the limitations set out in Appendix 2 (Basis and
Use of the Report).
Yours sincerely
ROBYN COOPER
Lead Partner Risk Consulting
Page 11 of 16Section 12
SPECIAL MEETING REPORT 22 MAY 2018
Page 12 of 16
SPECIAL MEETING REPORT 22 MAY 2018
/). Crowe Horwath.
PART OF FINDE
Appendix 1 — Scope and Procedures
Detailed below are the procedures performed as part of the Probity Advisory Services.
1. Planning Activities
« We obtained copies of relevant documentation for the Peregian Beach Digital Hub to obtain an
understand of activities undertaken to date by Council for the Digital Hub Tenancy.
2. Physical Security and Risk Management
« We checked that Council has physical security procedures in place (e.g. document register, data
room, electronic file lock-down / restriction, etc.); and
« Checked that Council has established a risk register for the procurement and overall contract
management of the project / tender.
3. Confidentiality and Conflicts of Interest
« We checked that Council has processes in place to observe that confidential and commercially
sensitive information is protected and only accessible by appropriate personnel. We checked that
all Council staff associated with the tender have been briefed regarding confidentiality and that
all Council employees involved with the tender process have signed and returned to Management
a8 copy of the Confidentiality and Conflicts Declaration;
« We supported the process to review and assess complaints or notified conflicts of interest,
including performing additional investigation when required; and
« For any identified Conflicts of Interest, we checked that Management have taken appropriate
action to disclose the conflict and minimise the impact on the tender evaluation process.
4. Timeframes and briefing sessions
« We provided probity briefings to Council staff prior to Industry Briefings:
« We attended and observed two (2) Industry Briefings held on 28 March and 6 April 2018; and
« We checked that Council has processes in place to:
o Notify / advertise the supplier briefing sessions to all interested parties (in accordance with
Council policies):
eo Record minutes from the Supplier Briefing sessions and make this information available to
all interested parties: and
o Notify all interested parties # there is any change made to the tender information.
5. Evaluation Criteria
« We checked that each tender meets the mandatory conditions of a conforming tender response,
outlined in the tender documents (e.g. delivered on time);
« We checked that all suppliers have access to information about any change, and have equal
opportunity to change their bids / submissions;
» We checked that Council has performed due diligence of short listed tenderers (including
Ownership, litigation, Director profiles, financial viability / security and past history, etc.);
« We attended and observed evaluation panel meetings: and
« We checked that the evaluation criteria has been applied uniformly and that the evaluation panel's
recommendations are justifiable (e.g. documented reasoning for the preferred tenderers that is
clear and defensible).
Page 12 of 16Section 13
SPECIAL MEETING REPORT 22 MAY 2018
Page 13 of 16
SPECIAL MEETING REPORT 22 MAY 2018
/). Crowe Horwath.
PART OF FINDEX
Appendix 2 — Basis and Use of this Letter
We were engaged by Noosa Council (the client) to provide Probity Advisory Services and the scope of our
This letter has been prepared in accordance with the objectives and approach agreed in the Proposal Letter
dated 12 March 2018 and subject to the following limitations:
© This letter provides limited assurance which recognises that absolute assurance is rarely attainable, due
to such factors as the use of judgment in gathering and evaluating evidence and forming conclusions, and
the use of selective testing, and because much of the evidence available for review is persuasive rather
than conclusive in nature;
« Because of the inherent limitations of any internal control structure, it is possible that errors or irregularities
may occur and not be detected. Our procedures were not designed to detect all weaknesses in contro!
procedures as they were not performed continuously throughout a specified period and any tests
performed were on a sample basis;
« Any projection of the evaluation of the control procedures to future periods is subject to the risk that the
systems may become inadequate because of changes in conditions, or that the degree of compliance with
them may deteriorate;
« The matters raised in this letter are only those which came to our attention during the course of performing
our procedures and are not necessarily a comprehensive statement of all the weaknesses that exist or
improvements that might need to be made. We cannot, in practice, examine every activity and procedure,
nor can we be a substitute for management's responsibility to maintain adequate controls over all levels
of operations and their responsibility to prevent and detect irmegularities, including fraud. Accordingly.
Management should not rely on our letter to identify all weaknesses that may exist in the systems and
procedures under examination, or potential instances of non-compliance that may exist;
« We believe thatthe statements made in this letter are accurate, but no warranty of completeness, accuracy
or reliability is given in relation to statements and representations made by, and the information and
documentation provided by, the client Management and personnel. We have indicated within this letter
the sources of the information provided. We have not sought to independently verify those sources unless
otherwise noted within the letter. We are under no obligation in any circumstance to update this letter, in
either oral or written form, for events occurring after the letter has been issued in final form unless
specifically agreed with the client. The internal audit findings expressed in this letter have been formed on
the above basis;
« Recommendations for improvement should be checked by Management for their full commercial impact,
before they are implemented;
« This letter is not to be used by any other party for any purpose nor should any other party seek to rely on
the opinions, advice or any information contained within this letter. In this regard, we recommend that
panies seek their own independent advice. Crowe Horwath disclaims all liability to any party other than
the client for which it was prepared in respect of or in consequence of anything done, or omitted to be
done, by any party in reliance, whether whole or partial, upon any information contained in this letter. Any
party, other than the client for which it was prepared, who chooses to rely in any way on the contents of
this letter, does it so at their own risk; and
* The information in this Letter and in any related oral presentation made by Crowe Horwath is confidential
between Crowe Horwath and the client for which it was prepared and should not be disclosed, used or
duplicated in whole or in part for any purpose except with the prior wntten consent of Crowe Horwath. An
electronic copy or print of this document is an UNCONTROLLED COPY
Page 13 of 16Section 14
SPECIAL MEETING REPORT 22 MAY 2018
Page 14 of 16
SPECIAL MEETING REPORT 22 MAY 2018
Crowe Horwath.
Crowe Horwath (Aust) Pty Ltd
ABN 84 006 466 351
Member Crowe Horwath Intemational
Level 16 120 Edward Street
Brisbane QLD 4000
Australia
Tel +61 7 3233 3555
Fax +61 7 3233 3567
www.crowehorwath.com.au
Disclaimer
Liability limited by a scheme approved under Professional Standards Legislation (other than for the
acts or omissions of financial services licensees) in each State or Territory other than Tasmania.
Ole Bale eee ee em EB le me eee Bale Fea ale ae ed
member of Crowe Horwath is a separate and independent legal entity. Crowe Horwath (Aust) Pty Ltd
and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath or any other
ile mee Oe alee le peel ete ee eee ee iy eg lel ele el
omissions of Crowe Horwath or any other Crowe Horwath member.
BU ad eee ee ee le
among the group of persons who hold an equity interest (shareholder) in its parent entity, Findex Group
Limited. The only professional service offering which is conducted by a partnership is the Crowe Horwath
ea OM el mee a le Bo a gle ge Te il) eee gle lhe cs)
by a privately owned organisation and/or its subsidiaries.
Crowe Horwath (Aust) Pty Ltd ABN 84 006 466 351
Page 14 of 16Section 15
SPECIAL MEETING REPORT 22 MAY 2018
ATTACHMENT 2
Page 15 of 16
SPECIAL MEETING REPORT 22 MAY 2018
ATTACHMENT 2
Page 15 of 16Section 16
SPECIAL MEETING REPORT 22 MAY 2018
Page 16 of 16
SPECIAL MEETING REPORT 22 MAY 2018
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