Objectives

The primary objective of this tender is to appoint a suitable professional service provider (PSP) to deliver internal audit services on a co-sourcing basis for a period of twenty-four (24) months. The internal audit aims to review and enhance the financial, operational, performance, and corporate governance activities of the Vaal Orange Catchment Management Agency (CMA). The service provider will augment the internal audit capacity, undertake specific tasks, develop strategies, and transfer skills to CMA staff to ensure compliance with relevant legislation and standards, notably those set by the Institute of Internal Auditors and the Public Finance Management Act.

Scope

The scope of work includes:

• Development of a three-year rolling strategic internal audit plan and annual operational plans.
• Conducting quarterly performance audits (4 per year).
• Reviewing interim and annual financial statements.
• Auditing supply chain management processes.
• Reviewing financial governance and evaluating corporate governance.
• Conducting compliance audits and operational audits.
• Auditing water resources planning, management, authorization, registration, and enforcement.
• Performing follow-up audits with external auditors and internal audit units.
• Providing skills transfer and guidance to CMA staff, including a detailed skills transfer plan.
• Performing ad-hoc audits as required.
• Monitoring and intervening where necessary to ensure effective controls.

The service provider may be required to travel to three provinces where CMA offices are located.

Technical Requirements

The technical requirements include:

• Development and implementation of a comprehensive internal audit methodology, including a step-by-step process with diagrams and innovative approaches.
• Preparation of a detailed skills transfer plan to empower CMA staff.
• Provision of qualified personnel with specified qualifications and experience:
• Lead Partner: Masters in Auditing/Chartered Accountant with 10-12 years’ experience.
• Senior Manager: Post Graduate Degree in relevant fields with 8-10 years’ experience.
• Manager: Degree in relevant fields with 5-8 years’ experience.
• Senior Auditors: Degree in Auditing with 3-5 years’ experience.
• Compliance with applicable standards such as those of the Institute of Internal Auditors (IIA).
• Adherence to the project timeline of 24 months and the ability to deliver all specified audits and reports within this period.
• Provision of a detailed cost breakdown aligned with the scope of work and rates not exceeding the Auditor-General Rates as determined by SAICA.

Skills Requirements

The skills and qualifications required for key personnel include:

• Lead Partner: Masters in Auditing or Chartered Accountant qualification, with 10-12 years’ experience in similar audits in both public and private sectors.
• Senior Manager: Post Graduate Degree in Business Management, Law, Auditing, Economics, or Accounting, with 8-10 years’ experience.
• Manager: Degree in relevant fields with 5-8 years’ experience in similar audits.
• Senior Auditors: Degree in Auditing with 3-5 years’ experience.

All personnel must meet the minimum experience requirements, and replacements require prior approval, with new resources holding equivalent or higher qualifications and experience.

Additionally, the service provider must demonstrate proven experience in internal audits within the public sector, supported by reference letters and completed project documentation.