Isn’t the financing of correctional facilities similar to other governmental projects? No, correctional facilities are unique projects with very different risk profiles. In order to achieve the most efficiently structured transaction, an independent expert with the experience and understanding of these highly specialized projects should be an integral part of your financing team. What particular factors need to be evaluated when determining the viability of a correction’s project for our municipality? The most important factor to review is the potential annual “cost” to the municipality. Often operating expenses are underestimated and outside revenues are overstated. This could cause an unexpected and severe cash flow shortage. A third party review of the facility budget and assumptions is an essential part in a municipality’s decision with regard to the viability of a project. What role does Correctional Finance & Consulting Solutions play in the process? CFCS can play any one of a number of roles in the process of financing a correctional facility. From reviewing a project’s assumptions to putting together an experienced transaction team, CFCS’s only goal is getting its client the most cost effective solution possible. What specific evaluation and monitoring services does the firm provide? CFCS offers various evaluation and monitoring packages. CFCS can help in the initial risk assessment of a project by providing a thorough report on all critical assumptions including an evaluation of potential achievement. On an annual basis, CFCS can monitor the performance of the project by tracking key performance criteria and trends. CFCS’s specific knowledge and experience can prove very valuable in anticipating problems that could impact performance. |
