Objectives

The primary objective of this tender is to appoint a qualified and experienced service provider to perform quality assurance and compliance review of the draft Annual Financial Statements (AFS) for the 2025/2026 period of ERWAT. The review aims to ensure that the AFS are prepared and presented in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), relevant laws including the Municipal Finance Management Act, and fairly reflect ERWAT’s financial position and results. The service provider will perform procedures to obtain limited assurance, focusing on areas with heightened risks of misstatement.

Scope

The scope involves evaluating the draft AFS prepared by ERWAT management for the year ending 30 June 2026. The review includes:

• Assessing compliance with GRAP and applicable legislation.
• Proposing adjustments for errors, inconsistencies, or non-compliance.
• Reviewing policies, governance structures, and relevant financial elements such as VAT implications, interest/impairment, related party debtors, and revenue recognition.
• Providing a detailed methodology, project plan, and phased reporting (status, progress, and closure reports).
• Ensuring the draft statements are complete, accurate, and compliant before final submission.

Technical Requirements

The technical requirements include:

• Development of a detailed project plan and methodology for the review process.
• Conducting a comprehensive review of the draft AFS, including supporting documentation and schedules.
• Updating comparatives, verifying prior period adjustments, and assessing variances.
• Reviewing accounting policies for specificity and relevance.
• Proposing adjustments on identified errors and non-compliance issues.
• Preparing phased reports: initial project plan, progress/status reports, and a final closure report signed off by a Chartered Accountant.
• On-site presence of staff during the review process, with timesheets and work hours documented.
• Adherence to project timelines, with final submission of the reviewed and approved statements by 31 August 2026.

Skills Requirements

The successful service provider must possess:

• Qualified Chartered Accountant (CA(SA)) with at least 5 years of experience in financial audits and assurance, specifically in the public or municipal sector.
• Experience in reviewing financial statements prepared under GRAP and compliance with relevant legislation.
• Registered with the South African Institute of Chartered Accountants (SAICA) and the Independent Regulatory Board for Auditors (IRBA) for at least 2 years.
• Proven expertise in municipal financial reporting, policy review, and error detection.
• Capability to develop and implement review methodologies, project plans, and phased reporting structures.
• Ability to work on-site for the duration of the review, with qualified personnel including semi-professional and junior professionals with relevant accounting qualifications and experience.
• Strong understanding of legislative frameworks such as the Municipal Finance Management Act, GRAP standards, VAT regulations, and related financial implications.
• Excellent communication and reporting skills to produce clear, comprehensive, and timely reports at each project phase.