Engagement	Since 2004, a broadcaster funded by DBCDE has been developing a financial model to assist them in their capital planning strategy. The model calculates the level of capital expenditure required over a ten year period by identifying which existing assets will need to be replaced over the period and estimating the level expenditure required for new projects. Our modelling team was engaged by the Department of Broadband, Communications and the Digital Economy (DBDCE) to review the broadcaster’s capital expenditure model and provide an opinion on the accuracy of the model.
Challenges	We were required to explore and communicate complex financial accounting and financial modelling issues
Approach	We provided advice to the Department detailing the adequacy of the current and future capital asset funding model and the degree of risk associated with the broadcaster’s capital plans. Stage One of the engagement involved interrogation of the model to ensure that the model was constructed in accordance with workbook construction standards.  This included checking all formulae for accuracy. Stage Two of the engagement involved the analysis of all assumptions used within the model to determine whether they appeared reasonable.  We undertook extensive consultation with staff at the broadcaster.
Outcomes	Our report to the DBCDE assisted the Department and central agencies understand the broadcaster’s funding request and assisted to determine funding as part of the 2009-10 budget process.