During each of these delivery events the model will undergo a whole raft of ongoing tests during the build and also pre-delivery tests. It is also important that the client carries out end-user acceptance testing after Update delivery. The topic of testing will be dealt with in greater detail in a future eBook.
1. Shadow delivery (V1)
The user requires a model that re-performs the results from financial close (FC). This is an important milestone in the audit trail from the FC model to the operating (OP) model.
2. Update delivery (V2)
The objective is to deliver a model with a new forecast based upon the latest actuals and the new forecast inputs.
3. Final delivery (V3)
The model will have been audited by a reputable firm of model auditors. The objective is to deliver an audited model with the latest actuals and best forecast assumptions.
Non-project finance delivery events
The equivalent three delivery events for a non-project finance model are:
1 Shadow delivery is all modelling prior to a new actual update
2 Update delivery is all modelling after a new actual update
3 Final delivery is after a possible model audit and after final changes driven by client acceptance testing.
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