Objectives

The primary objectives of this tender are to:

• Compile Annual Financial Statements for the financial years 2025/26, 2026/27, and 2027/28 that fully comply with Generally Recognised Accounting Practice (GRAP) standards.
• Prepare a GRAP, CIDMS, and MSCOA compliant Asset Register for the same period.
• Ensure improved audit opinions for 2025/26 and 2026/27, and a clean audit opinion for 2027/28.
• Transfer skills to municipal officials, particularly within the Chief Financial Officer’s office.
• Demonstrate proven experience in municipal financial reporting, asset register compilation, and related audit support.

Scope

The scope of work includes:

1. Asset Register Compilation

• Physical verification and labeling of all municipal assets.
• Provision or procurement of barcodes for assets.
• Assigning unique asset identification numbers and updating asset records.
• Reconciliation of asset register with the general ledger and posting of necessary journals.
• Re-assessment of useful lives, residual values, and depreciation methods.
• Investigation and correction of prior year errors related to PPE.
• Updating Fixed Asset Management Policy to be GRAP17 compliant.
• GPS coordinate collection for immovable assets.
• Unbundling infrastructure assets and componentization where applicable.
• Spatial linking of assets into GIS systems.
• Updating land and investment property registers, including deeds.
• Assessment and disclosure of Heritage Assets and impairment losses.
• Support during the audit process, including accompanying auditors and resolving queries.
• Skills transfer to municipal officials.

2. Financial Statement Preparation

• Review of financial records and transaction reconciliations.
• Control and review of financial system modules (e.g., creditors, bank, income, expenditure).
• Alignment of financial statements with asset register and general ledger.
• Preparation of interim and final annual financial statements for each year, with submission deadlines aligned with legislative requirements.
• Reconciliation of general ledger and addressing prior year audit findings.
• Preparation of supporting documentation, audit files, and disclosures, including provisions for landfill rehabilitation and actuarial valuations.
• Skills transfer and capacity building for municipal staff.

Technical Requirements

• Compliance with GRAP standards, MFMA, and MSCOA regulations.
• Use of CaseWare software for financial statements (preferred).
• Physical asset verification, labeling, and GIS integration.
• Reconciliation and adjustment journals for asset and financial records.
• Preparation of audit files and supporting documentation in line with National Treasury guidelines.
• Provision of detailed methodology, implementation plan, and skills transfer program.
• Experience in municipal asset management, financial reporting, and audit support.
• Provision of accurate, timely, and compliant financial statements and asset registers.

Skills Requirements

• Proven track record in compiling municipal financial statements and asset registers.
• Experience with GRAP, CIDMS, and MSCOA standards and regulations.
• Qualified personnel with relevant certifications (e.g., CA(SA), CSAM, property valuation qualifications).
• Experience in asset management, GIS integration, and infrastructure unbundling.
• Ability to transfer skills and provide capacity building to municipal officials.
• Demonstrated experience in audit support, including addressing AGSA and internal audit queries.
• Proficiency in CaseWare or similar financial reporting software.
• Strong understanding of municipal financial systems, policies, and legislative frameworks.