Objectives

The primary objective of this tender is to engage a suitable professional service provider to review the Annual Financial Statements (AFS), provide accounting support, and maintain and verify the Asset Register for a period of 36 months (three years). The aim is to ensure compliance with relevant standards, improve financial management, address audit findings, and support the municipality’s asset management and financial reporting processes.

Scope

Scope of Work - Assets

• Physical verification and labelling of all municipal assets to confirm existence and completeness.
• Assigning and effecting unique asset identification numbers via barcoding.
• Verification using an asset verification tool, including staff training.
• Updating the Fixed Asset Register (FAR) based on verification outcomes, including re-assessment of useful lives, residual values, and impairment losses.
• Reconciling capital work-in-progress (WIP) and unbundling completed projects.
• Calculating journal entries for asset re-assessments.
• Investigating and correcting prior year errors to address audit findings.
• Reviewing and updating the Fixed Asset Management Policy to ensure GRAP 17 compliance.
• Obtaining GPS coordinates for immovable assets and updating GIS systems.
• Assessing and recording impairment losses, preparing audit files, and maintaining asset management plans.
• Providing support during audits, including on-site visits and query resolution.
• Transferring skills to municipal officials and preparing close-out reports.

Scope of Work - Annual Financial Statements (AFS)

• Ensuring AFS compliance with MFMA, mSCOA, and GRAP standards.
• Reviewing prior year audited AFS and general ledger for consistency.
• Addressing previous audit findings and ensuring correct casting and cross-casting of financial data.
• Proper numbering and linking of notes, ensuring accuracy and completeness.
• Reviewing audit files for accuracy, consistency, and alignment with accounting policies.
• Preparing accounting policy documents aligned with current GRAP amendments.
• Verifying the accuracy of fixed assets, debtor’s age analysis, and supporting documentation.
• Reconciling balances with trial balances and general ledger, and ensuring financial performance items are correctly reported.
• Performing quality checks to enhance the overall quality of the financial statements prior to submission.

Additional Scope of Work

• Measurement of costs for landfill site rehabilitation, including physical verification of landfill sites.
• Provision of actuarial services for valuations of post-employment medical aid liabilities and long service awards.

Technical Requirements

• Compliance with GRAP, MFMA, and mSCOA standards.
• Use of asset verification tools, GPS technology, and GIS systems.
• Provision of detailed methodologies for asset assessment, impairment, and financial statement review.
• Demonstrated successful track record in public sector asset management and financial statement review.
• Qualified and registered professionals, including CA(SA), Pr.Eng, Pr.Tech. Eng, GISc practitioners, and asset management specialists.
• Minimum experience requirements for key team members (e.g., 10-15 years in relevant roles).
• Capacity to transfer skills and provide comprehensive support during audits.

Skills Requirements

• Professional registration with SAICA, ECSA, SAGC, or relevant bodies.
• Extensive experience in public sector asset management, financial statement preparation, and audit support.
• Proven track record with reference letters from public sector clients demonstrating successful audit outcomes.
• Ability to develop and implement asset management policies and procedures.
• Strong analytical, reporting, and communication skills.
• Capacity for skills transfer and capacity building within the municipality.
• Experience with GIS and GPS technologies for asset identification and mapping.