Internal Auditors for Craigowen Housing Association Period: 2 Years with an option to extend for 2 further periods of 12 months BACKGROUND Craigowen Housing Association (CHA) requires a comprehensive and efficient internal audit service which will assist the Board and Management of the organisation to meet their roles and responsibilities. This document constitutes a formal invitation to tender for the supply of internal audit services to the Association. Craigowen was registered as a Housing Association in 1977. It is a small organisation employing three members of staff, with total income of around 800,000 per annum and expenditure of around 700,000. It was set up to provide accommodation for adults with learning difficulties and their carers. CHA has twentyfive properties which were built or acquired by Housing Association Grant and leases a further sixteen properties from Camphill Communities Trust. Properties are located on three Camphill estates; Glencraig in Holywood, Mourne Grange in Kilkeel and Clanabogan in Omagh. QUOTATION BRIEF In line with best procurement practice, the Association s Board of Management has decided to put the provision of internal audit services out to tender. The appointment will initially be for a period of two years, with an option to extend for 2 further periods of 12 months. 1
Tenderers are invited to provide details of appropriate internal audit services, based on the requirements outlined below. Tenderers should note that costs should include VAT. Two hard copy tenders should be provided along with an electronic copy on either CD or USB REQUIREMENTS The Association is seeking proposals from suitably qualified professional firms on what they believe to be appropriate internal audit services for this organisation. Proposals should address the following:- 1. the relevant experience of your firm, and in particular the experience of the staff that will be responsible for providing the audit services; 2. an outline of a three-year audit programme considered appropriate for a Housing Association of CHA s size and complexity; 3. your requirements from the Association s Board of Management and staff; 4. an example of an audit report; 5. details of other services you can offer to the Association; 6. the basis of charging for internal audit services; 7. the basis of charges for additional services; 8. a list of the housing sector clients to which you currently provide internal audit services; 9. the names and contact details of three housing sector clients who the Association can contact for a reference; 2
10. details of your firm s Professional Indemnity Insurance; 11. Tenderers are asked to keep their responses and submissions succinct; The tender should be based on 10 days per annum for audit work. It is recognised, however, that this figure may vary in practice following completion of an audit needs assessment. Your response should outline how you would undertake an audit needs assessment. The Association would require a representative of its Internal Auditors to attend a Board Meeting to present their annual report and annual plan for the coming year. You should confirm that you are able to meet these requirements and that the costs are contained within the proposed audit fee. 3
ASSESSMENT CRITERIA Tender assessment Tender assessment will be undertaken by a panel consisting of at least two CHA Board members. All tenders will be assessed through a two stage process: Stage 1 Selection Criteria Tendering companies that fail to meet any of the following criteria will not be considered for Stage 2: Criteria Mandatory Exclusion Economic and Financial Standing Insurances Organisational Experience of providing Internal Audit Organisational Experience of providing Internal Audit for Housing Associations Experience of lead consultant who will be the main contact with Craigowen Housing Association inc details of qualifications and Accreditations Qualify PASS/FAIL PASS/FAIL PASS/FAIL Selection Criteria Evaluation In the Qualification Envelope Tenderers must answer all Selection Criteria Questions and sub sections. These questions and sub sections will be scored Pass or Fail. Tenderers must pass all Selection Criteria Questions, otherwise their tender will fail and their tender will not be considered any further in the evaluation process. Only Tenderers who have achieved a full pass rate in all of the Selection Criteria Questions will progress to the Award Criteria Evaluation. 4
Please see Selection Criteria Marking Scheme below. SELECTION CRITERIA MARKING SCHEME Selection Criteria Questions - Information Requested Scores Available Mandatory Exclusion EU Legislation/UK Procurement Legislation Economic and Financial Standing Previous Relevant Experience Regulation 23 of the Public Contracts Regulations 2006 Meet the minimum Financial and Insurance requirements of 1m of professional indemnity coverage. Demonstrate through previous contract examples carried out within the last Two years relevant and substantial experience Tenderers should outline their compliance with regulation 23 of the Public Contracts Regulations 2006 If no attachment(s)/evidence provided or if not completed Fail. Pass or Fail. If no attachment provided or if not completed Fail. If insufficient experience is demonstrated Fail. If sufficient experience is demonstrated Pass. 5
Stage 2 Award Criteria All tenderers that qualify from Stage 1 will then be evaluated using the following criteria and associated weightings: CRITERIA WEIGHTING Audit approach 30% Understanding of the sector 30% Sample audit report 10% Quantitative Requirements Cost 30% Total 100% Award Criteria Questions - Information Requested Score Methodology Audit approach Outlined Audit Methodology Including but not limited to: Understanding and analysing the business Determining the risk areas Analysing the processes and assessing controls Communicating results and monitoring followup actions Number of hours allocated to the assignment. Number of visits for the audit. Full marks will be award with a methodical approach to the audit of Craigowen Housing Association. 6
Understanding of the Sector Sample Audit Report Including but not limited to: Demonstrates comprehensive understanding and knowledge of the requirements of the Sector Demonstrates knowledge and understanding of the challenges faced when working with a diverse range of funders, clients and stakeholders. Demonstrates knowledge and understanding of the need to balance the demands of increased legislation with the current funding climate. Demonstrates understanding of the role of our funders, regulators and the Charity Commission for Northern Ireland. Tenders should provide a sample of an audit report with relevance to similar contract. Reports should consider the sector, the audience and be clearly formatted to act as a tool for the management of Craigowen going forward. Full marks will be awarded to tenders that present a detailed understanding of the Social Housing Sector in Northern Ireland, complete with information on current issues. Full marks will be awarded with a sample report that outlines the approach to an audit of this nature. 7
Cost Tenders are asked to provide a daily rate to undertake this audit. For evaluation purposes an estimate of 10 days per year will be used to compare costs. All expenses and costs associated with providing the service must be included in the daily rate. Cost evaluation as detailed below 8
Definition of Scoring: To ensure consistency and equity the evaluation panel will assign scores for quality of response to the Stage 2 requirements based on the indicative scoring definitions below: SCORING SYSTEM 5 4 3 2 1 0 INDICATOR Indicates an excellent response to the criteria with no weaknesses Detailed supporting evidence is provided with thorough analysis, tailored specifically to the challenges of the brief. No areas of weakness Indicates a good response to the criteria with few weaknesses Supporting evidence and analysis have been provided to demonstrate the competence required Indicates a compliant response to the criteria, but lacks specific information or analysis on some aspects to award a higher mark Strengths outweigh weaknesses Indicates that the response to the criteria is limited in detail with some reservations Understanding of the requirement and ability to deliver not fully demonstrated. Medium risk that the proposed approach will not be successful Weaknesses and/or risks outweigh strengths Indicates evaluation panel have major reservations about response to the criteria and there is insufficient detail to award a higher mark. Weaknesses far outweigh the strengths Indicates the response fails to provide sufficient detail to allow the panel to assess the response against the criteria An unacceptable response with serious deficiencies. High risk that the proposed approach will not be successful Very limited evidence provided against the criteria 9
Cost Score Information The weighting for the cost is 30% the following formula applied. Award Criteria COST (30%) The following formula will be used to evaluate Cost. 1. Lowest cost tendered will be awarded the maximum score available [30%]. 2. To calculate cost scores for the remaining tender offers, the following formula will be applied. The lowest tendered price divided by the tenderers price multiplied by [30%]. 3. Where a zero cost or no cost offer is made this offer will be assigned a nominal penny value for assessment purposes only. If it is considered necessary by the selection panel, tenderers will be invited for interview. Interviews will be an opportunity for the assessment panel to clarify elements of the tender response and not an opportunity to present new information. Clarifications Should tenderers require further information, they should contact: billy@craigowenha.org.uk To be kept informed of Clarification notifications suppliers in the first instance should email the Procurement Officer detailed with their request to be updated on all clarification questions and responses. 10
Quotations should be returned in a sealed envelope clearly marked: Tender Internal Audit Services do not open before 12:00 Noon Friday 7/11/14 and returned to: Private and Confidential Craigowen Housing Association First Floor, Studio 1 Strand Studios 150 Holywood Road Belfast BT4 1NY Quotations to be received no later than 12 Noon on Friday 7 November 2014. Quotations received after this date and time will not be accepted. Quotations should include 2 hard copies and an electronic submission on either CD or USB Craigowen Housing Association is not bound to accept the lowest or any quotation nor will the Association be responsible for expenses incurred in the preparation of the quotation. 11