Objectives

The primary objective of this tender is to procure services from qualified service providers to assist the Molemole Local Municipality in the review, adjustment, and preparation of the Provision for Doubtful Debts in compliance with GRAP 104 standards. The scope includes reviewing the methodology for doubtful debt provisioning, analyzing debtor groupings, assessing historical data accuracy, reviewing payment profiles, and calculating forward-looking information and expected credit losses. Additionally, the service provider will assist with updating relevant accounting policies and preparing disclosure requirements for the municipality’s financial statements.

Scope

The scope of work encompasses:

• Review and adjustment of the methodology for provisioning doubtful debts.
• Analysis and grouping of debtor categories.
• Assessment of historical data accuracy and completeness.
• Review of payment profiles.
• Calculation and adjustment of forward-looking information and expected credit loss.
• Updating and reviewing GRAP 104 accounting policies related to financial instruments and impairment.
• Preparation and review of GRAP 104 disclosure requirements for the Annual Financial Statements.

Technical Requirements

Proposals must include:

• Detailed methodology for reviewing and adjusting doubtful debt provisioning.
• Experience in financial instruments valuation, IFRS 9 / GRAP 104 standards, and Expected Credit Loss (ECL) modelling.
• Preparation of relevant accounting policies and disclosures in accordance with GRAP 104.
• Compliance with all relevant accounting standards and regulations.
• Attachment of necessary documentation such as CSD registration, tax compliance status, and signed declarations.

Skills Requirements

The successful bidder must demonstrate:

• Experience in financial statement preparation, specifically in the context of GRAP 104 and IFRS 9 standards.
• Minimum of 10 years' experience for the project manager in preparing annual financial statements.
• Experience of at least 5 years in Expected Credit Loss modelling, credit risk assessment, and financial instruments valuation.
• Qualified personnel with relevant certifications, including NQF Level 7 in Accounting for the project manager and Actuarial Sciences for the actuary.
• Membership of relevant professional bodies such as SAICA and the Actuarial Society of South Africa.
• Ability to provide skills transfer and capacity building as part of the service delivery.