Terms of Reference FOR APPOINTMENT OF A SERVICE PROVIDER TO DRAFT AN AUDIT RECOVERY PLAN AND TO ASSIST WITH PREPARATION OF 2018 ANNUAL FINANCIAL STATEMENTS Tender number ARP/20/2018 South West Gauteng Technical and Vocational Education and Training College (SWGC)] is a public TVET College registered under the Continuing Education and Training Act of 2006 (Act 16 of 2006), and as such falls under the auspices and control of the Department of Higher Education and Training. As such, the College was audited by the Auditor-General of South Africa (AGSA) for the year ended 31 December 2017 and the College obtained a Disclaimer of opinion on the College s 2017 Annual Financial Statements submitted for audit. In order for the findings to be corrected, the College is required to prepare an audit recovery plan and to resolve all issues raised by the Auditor General during the 2017 audit. The College hereby invites prospective bidders to submit proposals as set in the terms of reference and the scope of work. The scope of the work is as follows: South West Gauteng TVET College requires: A service provider to prepare and project manage the Audit recovery plan based on the 31 December 2017 financial years s Auditor General s (South Africa) audit report. The service provider to produce financial statements which are in accordance with Standards of Generally Recognised Accounting Practice (GRAP Standards) and the Continuing Education and Training (CET) Act 16 of 2006. The service provider to produce financial statements which are free from material adjustments. The service provider to assist with the consolidation of the individual trial balances and assist with correcting the imbalances (if applicable). The service provider to reconcile the control accounts and clear all the suspense accounts. The service provider to assist with the preparation of correcting journal entries and supporting documents. SWGTVETC-Financial Consultants Recommendation-CFO 1
The service provider to assist with the updating of the 2017 and 2018 Asset Register (including prior period if applicable). This would include physical asset verification. The service provider to assist with the reconciliation of the Asset Register to the Property Plant and Equipment general ledger accounts and ensure that the balances are correct. The service provider to assist with the preparation of audit files for audit readiness purposes. The service provider to assist with the clearance of audit findings relating to their deliverables in the engagement. The service provider to recommend improvements in the form of a report to South West Gauteng TVET College. The service provider to ensure skills transfer to all staff in the finance, supply chain and infrastructure units. Other considerations that need to be considered regarding the Terms of Reference are as follows: Timeframes linked to the various tasks (including frequency of monitoring the deliverables). The evaluation criteria (which would include): o Experience of service provider relevant to assignment o Quality of the methodology o Qualifications of key personnel o Transfer of knowledge The preference point system used for the above (which would include): o Ratio of percentage between functionality and price o Goals to be achieved and the relevant points for each goal o Transfer of knowledge should be accompanied by number of staff to be trained for service provider to estimate the required resources. o The cost estimate should be based on the resources needed to carry out the assignment such as staff time; logistical support and physical inputs. A retainer will be withheld and payable on completion of the external Audit by the Auditor General (South African) expected to be by the 30 th June 2019. SOUTH WEST GAUTENG TVET COLLEGE APPLIES THE PROVISIONS OF THE PREFERENTIAL PROCUREMENT POLICY FRAMEWORK ACT, NO 5 OF 2000 and Preferential Procurement Regulations, 2011 as incorporated in it s Supply Chain Management Policy. The evaluation of this bid shall include functionality whereby the bids will be evaluated in terms of the evaluation criteria embodied in the bid documents. SWGTVETC-Financial Consultants Recommendation-CFO 2
The minimum qualifying score for functionality will be 70 points and submissions that fail to achieve the minimum qualifying score will be disqualified. Only submissions that achieve the minimum qualifying score for functionality will be evaluated further in accordance with the 80/20 or 90/10 preference point systems prescribed in Preferential Procurement Regulations 5 and 6 as adopted by the College. The evaluation criteria for functionality will be as below: No Qualifying Criteria for Short Listing 1 Proof of similar projects and references to be provided. A minimum of three contactable references is required not older than 3 years in similar GRAP environments. 2 The delivery of these services are time sensitive. As such the successful bidder will be required to have all resources available within 14 days after the award of the bid, and furthermore ensure that these resources are available to the College until the end of the 2018 audit by the AG[SA] Points 20 70 The service provider must be able to provide a team that: have been involved in the preparation of GRAP AFS where an unqualified opinion was obtained (similar environment: educational or related institute). (20 points) previously been involved in the preparation of GRAP annual financial statements and have intimate knowledge of the accounting reporting framework. (20 points) Must be fully conversant with GRAP and demonstrate a high level technical understanding and approach. (20 points) work experience with the office of the AG. (10 points) 3 Proof of capacity to perform the required service(s) Registered Chartered Accountants (CA(SA)) must lead the team (proof to be provided). (5 points) The team must be comprised of individuals appropriately qualified in the following: B Com in Accounting/Auditing (5 years relevant experience). (5 points) 10 Bidders must provide sufficient proof/documents to justify awarding the above points, and such proof should include details of contactable references. Points will be awarded on a sliding scale, depending on the evidence provided. SWGTVETC-Financial Consultants Recommendation-CFO 3
NOTE: Along with each submission, a list of projects involving the compilation of GRAP compliant AFS completed within the past 3 years must be provided. Furthermore, for each of these projects, the audit opinion needs to be clearly stated. South West Gauteng TVET College will use this information along with the evaluation criteria listed above to secure a service provider that has the capacity to assist with an improved audit opinion from that of previous years. Exposure in the Education sector will be advantageous. The 80/20 or 90 / 10 preference point system shall be applicable as followings: Functionality and Price 80 or 90 B-BBEE status level of contributor 20 or 10 In order to facilitate a transparent selection process that allows equal opportunity to all service providers, South West Gauteng TVET College will adhere to its policy on the appointment of service providers. 1. Bid Conditions The South West Gauteng TVET College Supply Chain Management Policy will apply. 1. South West Gauteng TVET College does not bind itself to accept the lowest bid or any other bid and reserves the right to accept the whole or part of the bid. 2. Quotations which are late, incomplete, unsigned or submitted by facsimile or electronically, will not be accepted. 3. Bidders must submit proof of registration on the Centralised Supplier Database (CSD) of treasury 4. Companies who bid as a joint venture must submit a consolidated B-BBEE Verification certificate prepared for this bid only, from SANAS Accredited Verification Agency or Registered Auditor approved by Independent Regulatory Board of Auditors (IRBA) in order to be eligible for empowerment points. Companies who form part of this joint venture MUST be accredited. SWGTVETC-Financial Consultants Recommendation-CFO 4
5. Failure of a bidder to submit fully completed and signed Standard Bidding Document may result in the bidder not qualifying for claiming preferential points. 6. Quotations submitted are to hold good for a period of 90 days. 7. No subcontracting will be allowed for this bid. 8. Deregistered and blacklisted companies including directors/owners/individuals linked to the company will not be considered. Due diligence will be conducted with successful bidders to validate submitted information. 9. Counter offers by service providers shall not be considered and shall therefore nullify the offer to the company. 10. South West Gauteng TVET College reserves the right to amend the terms of reference before the closing date of the bid or to award whole or part of the bid to one or more service providers or to cancel the bid in whole, as well as to adjust the quantities before the final award is made. Approval Signatures for the Advert and Terms of Reference Ms N Tsokolibane - Council Chairperson Mr RJ Motlogelwa - Audit and Risk Sub-committee Chairperson Mr T Matabane Audit and Risk Sub-Committee Mr V Zwane Finco Advocate M Kganedi Council member Mr D Nkosi - Accounting Officer - Mr P Makaula - Chief Financial Officer Mr A Schlemmer Deputy Principal : Corporate Affairs SWGTVETC-Financial Consultants Recommendation-CFO 5
Mr V Suping Procurement SWGTVETC-Financial Consultants Recommendation-CFO 6