Compensation modelling

Setting up the entrustment structure allows the municipal company to carry out in a more effective way. It’s not a secret anymore. An element that raises many doubts and emotions are, however, the costs of performing the tasks entrusted by the municipal company. The answer to these needs is the preparation of a financial model allowing for the determination and monitoring of the compensation value.

What can you do?

Preparation of an interactive financial model allows you to determine the value of compensation, monitor its level and, what is vital, obtaining external financing. The solution to the doubts related to the management of the compensation value risk is to base the decisions made on objective factors building the financial model. On this basis, it is possible to determine the amount of compensation that the entrustment contractor will be able to receive from the public service provider.

What is the threat?

Monitoring the financial burden allows for stabilization of budgetary expenditure and thus for safeguarding the financial stability of the local government. If it is not possible to monitor the level of expenditure that will cover the obligation to provide the costs of the services entrusted, one cannot talk about a stable budget. As a consequence, you may find that the budget burden will be in different values than those provided for in the budget.

What COMPER can do for you:

• Develop a financial model,
• Verify the existing financial model,
• Prepare a compensation projection,
• Prepare a compensation projection by adopting investment assumptions, and,
• Correlate the compensation projection with budgetary considerations.

In this respect, Piotr Kulczycki and his team can support you and prepare an appropriate Entrustments of Public Services Obligations for you.