Objectives

The primary objectives of this tender are:

• To compile a GRAP-compliant Annual Financial Statements (AFS).
• To review and ensure the accuracy, completeness, and compliance of the financial statements with South African Standards of Generally Recognised Accounting Practice (GRAP) and relevant regulations.
• To develop a credible asset register aligned with GRAP standards.
• To assist in preparing for the annual audit and support during the audit process.
• To enhance financial reporting processes and internal controls within the municipality.

Scope

1. Preparation and Review of Annual Financial Statements

• Review of the annual financial statements for inaccuracies, non-compliance, and completeness.
• Provision of recommendations for corrections and adjustments.
• Assistance with documentation, schedules, and audit support.
• Reconciliation, compilation of working papers, and disclosures such as segment reporting and prior period errors.
• Training and skills transfer to municipal staff.

2. Asset Management Services

• Review and update of asset management policies (movable & immovable).
• Revaluation of land and infrastructure assets.
• Physical verification of assets, condition assessments, and recognition of assets.
• Identification of impairments, updating of the Fixed Asset Register (FAR), and reconciliation with the General Ledger.
• Verification and management of movable and immovable assets, including GIS data capture and asset tagging.
• Provision of an Asset Management Software System that integrates with the municipality’s financial system (SOLAR).
• Preparation of Asset Management Plans and training for personnel.

Technical Requirements

• Provision of GRAP-compliant financial statements and asset register.
• Physical verification of assets with detailed inventory lists.
• Revaluation and recognition of assets per GRAP standards.
• Use of a web-based Asset Management Software System supporting both movable and immovable assets, with functionalities including:
  • Asset identification, barcoding, and lifecycle management.
  • Linking assets to locations and end-users.
  • Mobile device integration for physical verification and GIS data import.
  • Dashboards and reporting features.
• Submission of comprehensive technical reports signed off by qualified professionals (ECSA-registered engineer, SAICA-registered CA, SACPVP-registered valuer).
• Assistance during audits, including site visits and documentation support.

Skills and Experience Requirements

• Experience in reviewing and compiling financial statements for the public sector, especially municipalities in South Africa.
• Extensive knowledge of asset management standards (GRAP 17, 21, 26, 31, etc.) and asset verification.
• Qualified professionals including:
  • Chartered Accountants (CA (SA)) registered with SAICA.
  • Professional Valuers registered with SACPVP.
  • Engineers registered with ECSA.
• Demonstrated experience in municipal asset management projects and financial statement audits.
• Proven track record with references and appointment letters for similar projects.
• Capability to deliver a comprehensive methodology, asset management plans, and training programs.
• Minimum functionality score of 75 points in the evaluation process to qualify for further consideration.