What to take into your next appraisal
- Audit the assumptions and formulas that can change the investment decision first.
- A sources-and-uses balance does not prove that cash is available when required.
- Record the evidence for every check and retest corrections in the release version.
Use the 25-check audit sheet
The downloadable CSV contains 25 checks grouped around inputs, revenue, costs, timing, funding, returns and release controls. It is an editorial starting point, not a certification standard. Import it into your spreadsheet and record pass, fail, not tested or not applicable with a reason. A tick without a cell reference, reconciliation or source is weak evidence.
Start with the decision that could change: acquisition price, equity commitment or permission to draw debt. Test the assumptions and formulas capable of changing that decision first. A reviewer independent of the model builder should reproduce the material calculations; familiarity with the workbook does not establish correctness.
Sources: UK Government: The AQuA Book; ICAEW: 20 principles for good spreadsheet practice, 2024 edition
Find three deliberately seeded errors
The following fictional examples can be reproduced without a proprietary workbook. Test each error separately in a disposable copy. Restore the control version before moving to the next case, so one wrong formula cannot conceal another.
| Test | Seeded result | Correct result | Why it fails |
|---|---|---|---|
| Receipt double count | 100 units × 200,000 plus 10% deposits = 22m | 20m including deposits | Deposits are part of price, not additional revenue. |
| Interest timing | 6m closing debt × 10% = 600,000 | 4m opening debt × 10% + 2m midyear draw × 10% × 0.5 = 500,000 | The new draw is outstanding for half a year. |
| Restricted cash | 800,000 cash less 600,000 bills = 200,000 surplus | 800,000 less 500,000 restricted less 600,000 bills = 300,000 shortfall | Restricted cash cannot pay these bills. |
Trace one period through the whole model
Follow a representative payment from the source budget to the cost schedule, tax treatment, draw request, bank balance and equity cashflow. Recalculate the debt roll-forward: opening debt plus principal advances plus capitalised interest less repayment equals closing debt. Check interest does not appear both inside a facility draw and again as additional debt.
Reconcile sources and uses over the whole project, then repeat by period. A model can balance in total while requiring an unapproved temporary facility. Test a delayed receipt and a facility limit breach, and confirm that the model reports a funding gap rather than silently allowing negative cash.
Write a finding someone can close
For the restricted-cash fixture, record the expected 300,000 contribution, the reported 200,000 surplus and the missing 500,000 restriction. Attach the affected period and cell references. The owner must correct the cash-availability logic and show that the extra contribution reaches peak equity and equity returns.
Classify findings by decision impact. A missing funding source that prevents completion is more urgent than an inconsistent label. Do not average away an unresolved funding failure in an overall score. Record the correction, reviewer, test result and version in the findings log.
Release the evidence with the model
Freeze the reviewed file and preserve its inputs, output tables and test log. State the checks not performed, external data not confirmed and scenarios not covered. Independent review can reduce risk; it cannot establish that planning consent, lender approval or future sales will occur.
Repeat affected checks after any material assumption or formula change. A review of last week's workbook is not evidence for a new funding decision if the loan terms or sales programme changed.
Sources: UK Government: The AQuA Book; ICAEW: 20 principles for good spreadsheet practice, 2024 edition
Sources and further reading
- The AQuA Book UK Government
- 20 principles for good spreadsheet practice, 2024 edition ICAEW
Published by Feasly. How we prepare our guides. Suggest a correction.
