Objectives

The primary objective of this tender is to appoint a service provider to conduct a comprehensive quality review of the Annual Financial Statements (AFS) for the year ending 30 June 2026, prior to submission to the Auditor-General South Africa (AGSA). The review aims to ensure compliance with applicable standards, verify accuracy, and identify and correct material misstatements or disclosure deficiencies.

Scope

The scope of work includes:

• Reviewing the integrity of the CaseWare AFS file.
• Performing detailed quality reviews of the Interim Financial Statements (IFS) and Annual Financial Statements.
• Verifying compliance with GRAP standards, MFMA requirements, National Treasury Circulars, Guidelines, and AGSA reporting standards.
• Assessing accounting policies for appropriateness, consistency, and compliance.
• Verifying mathematical accuracy, cross-casting, and integrity of disclosures.
• Reviewing the structure, numbering, and referencing of disclosure notes.
• Ensuring notes support balances disclosed in financial statements.
• Reviewing comparative information, prior year adjustments, and supporting documentation such as trial balances, general ledger, fixed asset register, debtor age analysis, and supporting schedules.
• Assessing the adequacy of audit file documentation and material disclosures.
• Performing analytical procedures to identify anomalies and reviewing previous AGSA findings and management responses.
• Identifying and correcting material misstatements and disclosure deficiencies before submission to the AGSA.

Technical Requirements

The technical requirements include:

• Verification of compliance with applicable accounting standards and regulations.
• Assessment of the integrity and accuracy of financial data and supporting documentation.
• Review of accounting policies and disclosures for appropriateness and consistency.
• Implementation of analytics to support the revised GRAP 104 (Financial Instruments) Standard.
• Review of prior audit findings and management actions.
• Preparation of a detailed report highlighting material misstatements, disclosure issues, and technical accounting concerns.

Skills Requirements

The successful service provider must demonstrate:

• Recent experience in reviewing GRAP-compliant AFS for municipalities, with evidence such as appointment and reference letters (post-2017 mSCOA implementation).
• Registration with SAICA or an equivalent reputable accounting professional body, with valid certification and practice number.
• Qualified personnel, including a Project Leader who is a Chartered Accountant (CA (SA)) with membership confirmation from SAICA not older than 6 months and a recent good standing letter.
• Key personnel with relevant experience and qualifications, including a Team Leader with CA (SA) or equivalent qualification and relevant experience.
• Adequate capacity and expertise to perform detailed financial reviews, analytical procedures, and compliance assessments.