ABSTRACT
It is not an exaggeration to say that the investment grade audit (IGA) and the project’s financing are, or should be, inextricably linked. The client, and the means for financing the project, dictate the investment grade audit’s parameters and procedures. Money issues surround energy efficiency projects and impact the IGA process. The measures to be recommended, for example, are typically constrained by the established aggregate payback. And payback, of course, is a function of price. Most auditors are aware of life-cycle costing procedures and the concept’s relevance to a more accurate calculation of return on investment. Life-cycle costing presents the net benefit of all major costs and savings for the life of the equipment discounted to present value. The cost of money, even its availability, depends upon the risks associated with a given project. A strong IGA that clearly has addressed potential risks is reassuring to financiers.
