Objectives

The primary objective of this tender is to engage a qualified service provider to assist the Molemole Local Municipality in reviewing and adjusting the Provision for Doubtful Debts in compliance with GRAP 104 for the current and previous financial years (2024-2025/2025-2026). The scope includes reviewing debt categories, ensuring data accuracy, calculating forward-looking information, and determining historical loss rates and expected credit losses.

Scope

The scope of work encompasses:

• Assisting with the review and adjustment of the Provision for Doubtful Debts calculation methodology.
• Reviewing debtor categories and groupings.
• Verifying the accuracy and completeness of relevant information.
• Reviewing calculations and adjustments related to forward-looking information.
• Calculating the historical loss rate.
• Calculating the expected credit loss.

Technical Requirements

The service provider must:

• Complete Annex A with relevant previous work experience.
• Provide quotations on official company letterhead.
• Ensure quotations are valid for at least 14 days from submission.
• Submit all quotations by the specified deadline, clearly marked.
• Ensure skills transfer during the engagement.
• Adhere to the evaluation criteria based on 80/20 preference points system (price and specific goals).
• Be prepared for evaluation based on previous relevant experience and project delivery capabilities.

Skills Requirements

The successful bidder must demonstrate:

• Expertise in financial analysis and provisioning for doubtful debts in accordance with GRAP 104.
• Experience in debt categorization and data review.
• Ability to perform complex calculations related to loss rates and credit risk.
• Capacity to transfer skills and knowledge to municipal staff.
• Proven track record with similar projects, supported by references and previous work details.