4 Miss. Code. R. 3-1.6

Current through December 10, 2024

Rule 4-3-1.6 - Monitor Project Company Financial Viability (where applicable)

Throughout the life of the project, it is essential to monitor the financial viability of the project company to ensure that the state will know either that the company will be able to fulfill its obligations to remain in business and thus maintain its level of employment in keeping with the MOU or that the company will eventually be forced to discontinue its operations. In order to provide assurance as to the financial viability of the project company the following should be performed, where applicable:

(1) Review of investment and cash flow management and documentation of findings either by an external expert consultant or by a comparably qualified internal employee.

(2) Review of the project company's annual and interim financial statements and documentation of findings either by an external expert consultant or by an comparably qualified internal employee, and

(3) Performance ratio comparisons ("Performance to earning" or PE ratios) within the relevant company industry to be performed by a qualified valuation analyst or by a comparably qualified internal employee.

The results of these reviews should be documented within a report subsequent to the availability of company financial data, if available. If unavailable, at least an annual review of the company's books should be performed and comparisons within the industry made to provide reasonable assurance that the company remains a going concern.

4 Miss. Code. R. 3-1.6

Miss. Code Ann. § 7-7-211.