Invitation to Tender External Audit Services

Transcription

1 Invitation to Tender External Audit Services Tender Reference: AUDEX June 2016, 2017 and 2018 Page 1 of 5

2 1. Introduction Tonga Power Limited (TPL) is wholly owned by the Government of Tonga, duly registered under the Tonga Companies Act. The principal activity of the Company is the generation and distribution of electricity in Tonga. TPL requires external audit services to be in place for financial year ending 30 June 2016, 2017 and 2018 covering a three year term initially and invites suitably experienced firms to tender for the provision of these services to the Company. The Company is controlled by the Board of Directors. TPL adheres to the principles of Corporate Governance and has a separate Audit & Finance Committee to promote financial discipline and control. Further details can be found on our website: 2. Requirements Tonga Power Limited is inviting tenders for the provision of external audit services for the financial year ending 30 June 2016, 2017 and TPL s objectives for this tender process are to: The planning, management and execution of the annual external audit for the Company. Reporting on external audit progress to Management and the Audit & Finance Committee, including attendance at Audit & Finance Committee meetings and Board meetings as appropriate. Ensure the appointed auditor is in place in readiness for the review of the financial statements for the year ending 30 June Agreement with the Directors on the nature and scope of the audit before the commencement of each audit, Reporting to Directors of any problems, reservations or issues arising from the audit, Recommending any changes to management and accounting policies and practices that would reduce business risk and/or improve business performance including controls, and Advising management on internal control procedures. Appoint an auditor who will provide excellent value for money including providing diagnostic report on issues important to TPL. Page 2 of 5

3 2. Requirements (continued) Must show evidence of experience on auditing of power utilities and benchmark of power utilities around the pacific island countries. Work with an audit partner that will add value to our services. Must show evidence of sound financial backing of audit work to a tune no less than $1m. The technical requirements are those elements of the contract that relate directly to the delivery of external audit services. The primary role of the external auditors will be to report on the financial statements and to carry out whatever examination of the statements and underlying records and control systems is necessary to reach their opinion on the statements in accordance with the International Auditing Standards. The audit of the financial statements is generally undertaken between July and August annually. The draft financial statements are required for review by the end of August each year. 3. Proposed contract The contract will be for an initial three year period commencing on 1 July 2016 and will be subject to annual appointment by the Board of Directors dependent upon satisfactory performance during the previous year s visit. 4. Tender Requirement Tenders should include the following information: The fee for the first year of the contract period specifying what is included in the charges. The fee should cover the audit of the Company, the preparation of the final accounts in accordance with International Financial Reporting Standards (IFRS) and fixed out of pocket expenses. Costs should be provided on a per hour basis for any additional advice or services that may be required from time to time. The draft deferred tax calculation and the lodgement of tax returns will be the responsibility of Tonga Power Limited but the successful auditor must issue the final deferred tax calculation. Costs of travel and accommodation to be invoiced to Tonga Power Limited based on the actual costs incurred at the time of the audit; An indication of the level of fees that would be charged in the subsequent periods of the contract; A schedule of hourly rates for each level of fee earning staff; Page 3 of 5

4 CVs of senior staff such as the Audit Partner and Manager and supporting personnel who would conduct the external audit; An explanation of the external audit approach that would be used including the firm s policy in relation to maintenance of continuity of staff involved in the audit. Details of relevant experience within the sector and the business activities and issues addressed; Details of the areas of technical expertise within the firm that can be called on to support the audit team and to provide advice to the Board and management of TPL as required; and Details of any relevant services that may be appropriate to the needs of the Company. Shortlisted firms may be invited to deliver a presentation to members of the Audit & Finance Committee and representatives from Senior Management. 4. Process and timelines Date Stage 20 th April 2016 TPL issue invitation of tender. 15 th April th April 2016 Q&A access to Management. 16 th May 2016 Deadline for Tender submission. The Selected auditor will be notified after the selection process is completed. The selection process will include approval from the Board of Directors and approval by the Minister of Public Enterprises according to the Public Enterprises Act For further information or clarification please contact Steven Esau, preferably by in the first instance at sesau@tongapower.to.... Page 4 of 5

5 6. Tender response The deadline for responses to this tender is 5pm on 16 th May The Tender Reference should be clearly identifiable on all correspondence (including envelopes and s) to ensure that no tenders are opened prior to the deadline and should be sent to: Electronic responses Address for hard copy Steven Esau Tonga Power Limited Corner Taufa ahau and Mateialona Roads P O Box 429 Nuku alofa External Audit Services Attention Steven Esau 7. Assessment of Tenders Tenders will be assessed on the following criteria: Experience of providing comprehensive external audit services to the industry sector and demonstrable technical expertise in accounting. The quality and experience of the proposed external audit team. The suitability of the audit approach. The ability to provide the full range of services required including audit and specialist technical accounting advice. The firm s approach to customer service, quality assurance and environmental considerations. Value for money, particularly the added value that the audit process will bring to the organisation. Evidence of sufficient financial backing should the auditor fail in its duty Page 5 of 5