Objectives

The primary objective of this tender is to support Khai-Ma Municipality in producing credible, high-quality, and GRAP-compliant Annual Financial Statements (AFS) for a period of three years (2025/26 – 2027/28). The service provider is expected to assist in addressing audit findings from previous years, review financial records, prepare reconciliations, and ensure the accuracy and completeness of financial data to facilitate successful audits and submissions to the Auditor General of South Africa.

Scope

The scope of work includes:

• Preparation of Annual Financial Statements for the financial years 2025/26, 2026/27, and 2027/28, ensuring compliance with GRAP standards.
• Review and reconciliation of financial records, including the Trial Balance, General Ledger, and Asset Register.
• Addressing audit queries raised by the Auditor General and Internal Auditor for the specified years, including prior years (2023/24 and 2024/25).
• Assisting in the correction of discrepancies and adjustment journals to ensure accurate financial reporting.
• Providing skills transfer to municipal officials involved in financial reporting and audit processes.
• Drafting and finalizing financial statements to be submitted by 31 August each year, with draft statements ready by 31 July for review.

Technical Requirements

• Adherence to all applicable National and International Standards, including GRAP.
• Provision of detailed methodologies outlining the approach to financial statement preparation and review.
• Implementation of a comprehensive skills transfer program for municipal officials.
• Preparation of supporting schedules, notes, and disclosures as per GRAP standards.
• Addressing audit queries promptly and effectively during the contract period.
• Use of the municipality’s financial systems, with a responsibility to transfer skills and knowledge.
• Compliance with all relevant legal, regulatory, and municipal requirements, including submission deadlines.

Skills Requirements

The successful service provider must demonstrate:

• Proven experience in preparing and reviewing GRAP-compliant financial statements within the municipal sector.
• Strong understanding of MsCOA environment and municipal financial systems.
• Qualified personnel with relevant accounting degrees (e.g., CA(SA)), experience in financial statement compilation, and familiarity with audit processes.
• Capability to review and reconcile financial records, asset registers, and control accounts.
• Ability to address audit findings and implement corrective actions effectively.
• Skills transfer expertise to ensure municipal officials are equipped with necessary knowledge and skills.
• Capacity to meet strict deadlines for draft and final financial statements.