Objectives

The primary objective of this tender is to appoint a qualified and experienced service provider to fully implement the revised GRAP 104 (Expected Credit Loss - ECL) impairment model. The provider will design, develop, and operationalize an automated ECL model that ensures Johannesburg Water’s financial reporting complies with the updated standard. Additionally, the scope includes providing advisory, technical support, training, and ensuring proper integration with existing financial systems.

Scope

The scope of work encompasses:

• Assessment and gap analysis of current accounting policies and processes related to financial instruments and impairments.
• Design and development of an automated ECL impairment model aligned with GRAP 104, incorporating probability-weighted outcomes, forward-looking information, segmentation, historical data, and macroeconomic factors.
• Data analysis, model calibration, and validation using debtor data, payment patterns, and default trends.
• Integration of the model with Johannesburg Water’s SAP ERP system and reporting tools.
• Development of accounting policies, technical documentation, and disclosures compliant with GRAP 104.
• Validation, audit support, and independent testing of the model.
• Training of finance staff and stakeholders on model operation and maintenance.
• Provision of ongoing technical support for 36 months and assistance with refinements and interpretation of standards.

Technical Requirements

The technical requirements include:

• Development of an automated, reliable, and auditable ECL model that considers macroeconomic and behavioral data.
• Compatibility with Johannesburg Water’s existing financial systems (SAP ERP) and reporting tools (BI, Excel).
• Provision of detailed methodology documentation, technical papers, and disclosure frameworks.
• Independent validation and audit support, including documentation for audit reviews.
• Delivery of technical training workshops and knowledge transfer to internal staff.
• Support for model refinements based on operational and audit feedback.

Skills Requirements

The skills and expertise required from the service provider include:

• Proven experience in designing and implementing ECL impairment models aligned with IFRS 9 / GRAP 104 standards, with at least 4 projects in the last 8 years.
• Strong data analysis and calibration skills, including working with debtor data, macroeconomic indicators, and risk matrices.
• Technical proficiency in developing automated models compatible with SAP ERP and reporting tools.
• Expertise in financial reporting, accounting policies, and disclosure requirements under GRAP 104.
• Experience in independent validation, audit support, and technical documentation.
• Capability to deliver training and transfer knowledge to Johannesburg Water’s finance team.
• Qualified professionals with relevant certifications and proven track record in financial modeling and IFRS/GRAP compliance.