2. Main findings of audits

In cooperation with Grant Thornton & Associados, SROC, Lda.¹, AXON conducted an audit to CLSU estimates presented by MEO for 2014, and prepared a preliminary audit report after concluding the fieldwork.

Findings of the audit work were discussed between MEO and auditors, and on 27.01.2016 MEO presented new calculations in order to implement recommendations made by auditors. Following the determination of recast CAS values for 2014, in view of the audit to which the CAS had been subject, MEO submitted on 06.05.2015 new CLSU estimates for 2014. These 2014 CLSU values resubmitted by MEO thus take into consideration recast and audited values of the 2014 CAS, and implement recommendations presented by auditors, except for those which concern the reconciliation with CAS.

Resubmitted values were audited by AXON, which sent its draft final audit report to ANACOM in early June. This report was conveyed to MEO, on 08.06.2016, for comments.

MEO sent its comments to the audit report on 07.07.2016, stressing that 2014 CLSU estimates show a high degree of reliability, a fact which it deems to be evidenced by the audit which only detected some inaccuracies and inconsistencies in calculations and models updates, the impact of which is referred to be minor compared to the total value of CLSU.

In the final audit report, AXON refers that “(...) except for reconciliation limitations indicated above, which may result in underestimated CLSU, results and calculations resubmitted by MEO are in compliance with principles, criteria and conditions laid down in ANACOM determinations, and data, assumptions and calculations used are adequate enough.”

Auditors identify throughout the referred report reconciliation problems between the CLSU model and sources of information (CAS), and detected some discrepancies in calculations or data used, situations which are described in detail in the audit report and analysed herein.

The table below presents CLSU results for the 2014 period during which MEO provided the US under the concession contract, including results initially presented on 30.10.2015 and values resubmitted by MEO on 06.05.2016, further to the implementation of recommendations made by auditors to initial results, as well as recast CAS results for 2014, which were again audited and which correspond to final values.

Source: MEO.
* FTS between 1 January and 31 May 2014 and PPP between 1 January and 8 April 2014

It may be observed form the table above that resubmitted results entailed a reduction by €143,674 in the final value of CLSU compared to the value submitted initially by MEO.

The following chapters analyse in greater detail audit results and main findings, as well as ANACOM’s views thereon. An analysis to 2014 CLSU values is also conducted.