Auditing Services Bid Document: Government Employees Pension Fund(Gepf 27/2015)

AUDITING SERVICES BID DOCUMENT: GOVERNMENT EMPLOYEES PENSION FUND(GEPF 27/2015)

Confidential

Government Employees

Pension Fund

(GEPF)

Request for proposal (RFP) to render auditing services toGEPF

INDEX

Section Topic Page

Terms of Reference 03 of 41 to 05 of 41

Evaluation Criteria 06 of 41 to 06 of 41

Guide to Responses 07 of 41 to 07 of 41

SBD Forms 08of 41 to 25 of 41

Special Conditions of Contract 26 of 41 to 29 of 41

General Conditions of Contract 30 of 41 to 41 of 41

Index to Administrative Annexure

Annexure Topic

ASBD Forms

B Special Conditions of Contract

C General Conditions of Contract

Terms of Reference

1.1.Overview

The Government Employees Pension Fund (GEPF) manages approximately 1,3 million active members and 406 000 pensioners and their beneficiaries. As at 31 March 2015, GEPF’s assets were R1.6 trillion. This document outlines the scope of work and terms of reference for the appointment of anindependent external audit service provider (auditor) for the Government Employees Pension Fund (GEPF).

1.2.Purpose

The Board of Trustees of GEPF seeks to enlist an auditor to carry out an independent annual statutory audit and express an audit opinion on the annual financial statements of GEPF. The annual financial statements and the audit opinion will be contained in the annual report of GEPF. The audit opinion indicates whether the annual financial statements fairly present, in all material respects, the financial position and performance of GEPF for the year under review.In terms of the Government Employees Pension Law (GEP Law), the auditors shall, within a period of six months after the end of the financial year in question, prepare a report on the annual financial statements of the Fund.

GEPF seeks to appoint a single legal contracting entity for the provision of audit services and encourages the inclusion of an emerging blackaudit firm as a partner in the bid to promote skills transfer.

1.3.Scope of Work

The appointed external auditor is to perform the audit in accordance with the International Standards on Auditing (ISAs). These standards require that the auditors comply with ethical requirements and plan and perform the audit to obtain reasonable assurance on whether the annual financial statements are free from material misstatement.

An audit involves performing procedures to obtain evidence about the amounts and disclosures in the annual financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the annual financial statements, whether due to fraud or error.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

The auditor must consider the internal control relevant to the entity’s preparation of the annual financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal controls.

1.4.Deliverables

The key deliverables and outputs expected from the auditor are as follows:

At the end of the audit the auditor will express an opinion as to whether the annual financial statements fairly present the net assets of the Fund and the results of its activities and cash flows in accordance with the Fund’s stated accounting policies, the provisions of the Government Employees Pension Law, 21 of 1996 (GEP Law), and the financial policies of the Fund.
At the end of the audit the auditor will also express an opinion as to whether the information furnished in the annual report is fair and correct as per the GEP Law.
The auditor must provide a separate document containing any material weaknesses in the design or implementation of internal control over financial reporting that comes to the auditor’s attention during the audit of the annual financial statements.

1.5.Required Competencies

The auditor shoulddeliver the audit with the requisite level of skill, integrity and professional competence at all times. The auditor must at all times, where relevant, demonstrate:

Knowledge and understanding of the pension fund industry.Experience auditing defined benefit funds will be an advantage;
Technical proficiency in applicable accounting standards; and
Other skills, knowledge and understanding that is necessary to perform the audit.

1.6.Duration of Appointment

The appointment of the auditor will be for a period of three years, with the appointment confirmed annually during the three years by the Board as per Section 11 of the Government Employees Pension Law, 1996 (Proclamation 21 of 1996) subject to satisfactory performance of key responsibilities.

1.7.Audit fees

GEPF and the auditor will agree on the audit fee before commencement of the audit. The agreement will consider (but may not be limited to):

The standard rates for audit fees;
The recovery of audit fees plus expenses;
Billing of those audit fees and expenses; and
Out of pocket expenses including travelling, accommodation and/ or overheads
Audit fees quoted must include VAT.

Contractual Obligations

The service provider's contract will be entered into between GEPF and the auditor, and reporting on the progress and completion of the audit will be made to the Board of Trustees of GEPF.
Payment will be made within 30 days on presentation of billing documents as agreed and based on meeting all deliverables and outputs as contained in this Terms of Reference and as per the contractual agreement entered into by the parties.

Evaluation Criteria

2.1.Evaluation Criteria

Item No. / Evaluation Criteria Item – Stage One : / Weight

A

/ Functionality / 100
Extent of appropriate experience of the organisation in the undertaking pension fund audits. Proof of appointment and reference letters from pension fundsand related clients(a minimum of three letters from different clients where similar services were provided) / 20
General approach, planned methodology and proposed activities towards undertaking the audit. / 45
Qualifications and CVs of the proposed audit team leaders including theirs team members. / 25
Timeframe for completion of the audit, including audit plan. / 10
NB Minimum qualification of 70% on functionality
Item No. / Evaluation Criteria Item – Stage Two : / Weight
70/30 Principle

B

/ Price / 70
C / Socia BBBEE status level / 30
Total / 100

2.2.Enquiries

Enquiries must be submitted by 20 October 2015and responses will be sent to all bidders by the 22 October 2015by the close of the business day.

Technical enquiries:

Musa Mabesa

Finance Manager

Email:

General enquiries:

William Ramoroka

Supply Chain Management Manager

E-mail:

Guide to Responses

Fully completed tender documents with following technical responses:

COMPANY PROFILE

Extent of appropriate experience of the organisation in the undertaking pension fund audits. Proof of appointment and reference letters from pension fundsand related clients(a minimum of three letters from different clients where similar services were provided).

TECHNICAL PROPOSAL

General approach, planned methodology and proposed activities towards undertaking the audit.

QUALIFICATIONS AND CVs

Qualifications and CVs of the proposed audit team leaders including their team members. (Team leaders being partners and senior managers; team members being managers and assistant managers)

TIMEFRAME FOR COMPLETION OF THE AUDIT

Timeframe for completion of the audit, including audit plan (in line with 2 above).

Annexure A

(GEPF)

SCM

Standard Bid Document

SBD1

INVITATION TO BID

YOU ARE HEREBY INVITED TO BID FOR REQUIREMENTS OF GOVERNMENT EMPLOYEE PENSION FUND (GEPF)

BID NUMBER: GEPF27/2015CLOSING DATE:2November 2015

CLOSING TIME: 12:00 pm

DESCRIPTIONRender auditing services for a period of three years.

THE SUCCESSFUL BIDDER WILL BE REQUIRED TO FILL IN AND SIGN A WRITTEN CONTRACT

BID DOCUMENTS MUST BE DEPOSITED IN THE BID BOX SITUATED AT GEPF ADDRESSED TO:

The Principal Executive Officer

Government Employees Pension Fund

34 Hamilton Street

Arcadia

Pretoria

Bidders should ensure that bids are delivered timorously to the correct address. If the bid is late, it will not be accepted for consideration.The bid box is generally open 8 hours a day between 08:00 to 16:30, Mondays to Fridays.

ALL BIDS MUST BE SUBMITTED WITH THE STANDARD FORMS – (NOT TO BE RE-TYPED)

THIS BID IS SUBJECT TO THE GENERAL CONDITIONS OF CONTRACT (GCC) AND, IF APPLICABLE, ANY OTHER SPECIAL CONDITIONS OF CONTRACT

THE FOLLOWING PARTICULARS MUST BE FURNISHED (FAILURE TO DO SO MAY RESULT IN THE BID BEING DISQUALIFIED) ALL STANADARD BIDDING DOCUMENT AS ATTACHED

NAMEOF BIDDER……………………………………………………………………………………………….....

POSTAL ADDRESS…………………………………………………………………………………………………………....

STREET ADDRESS…………………………………………………………………………………………………………....

TELEPHONE NUMBER CODE……………NUMBER……………………………………………......

CELLPHONE NUMBER…………………………………………………………………………………………

FACSIMILE NUMBERCODE ………… NUMBER…………………………………......

VAT REGISTRATION NUMBER …………………………………………………………………………......

HAS A TAX CLEARANCE CERTIFICATE BEEN SUBMITTED (SBD2)?

YES/NO

SIGNATURE OF BIDDER ……………………………………………………......

DATE……………………………………………………......

CAPACITY UNDER WHICH THIS BID IS SIGNED……………………………………………......

SBD3.1

PRICING SCHEDULE – FIRM PRICES

NOTE:ONLY FIRM PRICES WILL BE ACCEPTED. NON-FIRM PRICES (INCLUDING PRICES SUBJECT TO RATES OF EXCHANGE VARIATIONS) WILL NOT BE CONSIDERED

IN CASES WHERE DIFFERENT DELIVERY POINTS INFLUENCE THE PRICING, A SEPARATE PRICING SCHEDULE MUST BE SUBMITTED FOR EACH DELIVERY POINT

Name of bidder…...... Bid number:GEPF27/2015
Closing Time 12:00 pm onMonday, 2November 2015.

OFFER TO BE VALID FOR120DAYS FROM THE CLOSING DATE OF BID.

ITEMNO / QUANTITY / DESCRIPTION / BID PRICE IN RSA CURRENCY
(INCLUDING VAT)
1 / 1 / Audit feesfor year 1(VAT inclusive) / R
2 / 1 / Audit feesfor year 2 including escalation(VAT inclusive) / R
3 / 1 / Audit fees for year 3including escalation (VAT inclusive) / R
Total for the three years(VAT inclusive) / R

Further details of the proposed fee structure can be attached over and above the information given in the above table.

All prices must be in South African Rands (ZAR) including VAT.

Required by:GEPF

At:34 Hamilton Street

Arcadia

Pretoria

SBD 4

DECLARATION OF INTEREST

1.Any legal person, including persons employed by the state¹, or persons having a kinship with persons employed by the state, including a blood relationship, may make an offer or offers in terms of this invitation to bid (includes a price quotation, advertised competitive bid, limited bid or proposal). In view of possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to persons employed by the state, or to persons connected with or related to them, it is required that the bidder or his/her authorised representative declare his/her positionin relation to the evaluating/adjudicating authority where-

-the bidder is employed by the state; and/or

-the legal person on whose behalf the bidding document is signed, has a relationship with persons/a person who are/is involved in the evaluation and or adjudication of the bid(s), or where it is known that such a relationship exists between the person or persons for or on whose behalf the declarant acts and persons who are involved with the evaluation and or adjudication of the bid.

2.In order to give effect to the above, the following questionnaire must be completed and submitted with the bid.

2.1Full Name of bidder or his or her representative: …………………………………………………

2.2Identity Number: ………………………………………………………………………………………

2.3Position occupied in the Company (director, trustee, shareholder²): ……………………………

2.4Company Registration Number: ………………………………………………………………………

2.5Tax Reference Number: ………………………………………………………………………………

2.6VAT Registration Number: ……………………………………………………………………………

2.6.1The names of all directors / trustees / shareholders / members, their individual identity numbers, tax reference numbers and, if applicable, employee / persal numbers must be indicated in paragraph 3 below.

¹“State” means –

(a)any national or provincial department, national or provincial public entity or constitutional institution within the meaning of the Public Finance Management Act, 1999 (Act No. 1 of 1999);

(b)any municipality or municipal entity;

(c)provincial legislature;

(d)national Assembly or the national Council of provinces; or

(e)Parliament.

²”Shareholder” means a person who owns shares in the company and is actively involved in the management of the enterprise or business and exercises control over the enterprise.

2.7Are you or any person connected with the bidder YES / NO

presently employed by the state?

2.7.1If so, furnish the following particulars:

Name of person / director / trustee / shareholder/ member: ……....………………………

Name of state institution at which you or the person

connected to the bidder is employed : ………………………………………

Position occupied in the state institution: ……………………………

Any other particulars:

………………………………………………………………

2.7.2If you are presently employed by the state, did you obtainYES / NO

the appropriate authority to undertake remunerative

work outside employment in the public sector?

2.7.2.1If yes, did you attach proof of such authority to the bidYES / NO

document?

(Note: Failure to submit proof of such authority, where

applicable, may result in the disqualification of the bid.

2.7.2.2If no, furnish reasons for non-submission of such proof:

…………………………………………………………………….

2.8Did you or your spouse, or any of the company’s directors/ YES / NO

trustees / shareholders/ members or their spouses conduct

businesswith the state in the previous twelve months?

2.8.1If so, furnish particulars:

…………………………………………………………………..

…………………………………………………………………...

2.9Do you, or any person connected with the bidder, haveYES / NO

any relationship (family, friend, other) with a person

employed by thestate and who may be involved with

the evaluation and or adjudication of this bid?

2.9.1 If so, furnish particulars.

……………………………………………………………...

…………………………………………………………..….

………………………………………………………………

2.10 Are you, or any person connected with the bidder,YES/NO

aware of any relationship (family, friend, other) between

any other bidder and any person employed by the state

who may be involved with the evaluation and or adjudication

of this bid?

2.10.1 If so, furnish particulars.

………………………………………………………………

2.11Do you or any of the directors / trustees /shareholders / members YES/NO

of the company have any interest in any other related companies

whether or not they are bidding for this contract?

2.11.1If so, furnish particulars:

…………………………………………………………………………….

3. Full details of directors / trustees / members / shareholders.

Full Name / Identity Number / Personal Tax Reference Number / State Employee Number / Persal Number

4DECLARATION

I, THE UNDERSIGNED (NAME)………………………………………………………………………

CERTIFY THAT THE INFORMATION FURNISHED IN PARAGRAPHS 2 and 3 ABOVE IS CORRECT.

I ACCEPT THAT THE STATEMAY REJECT THE BID OR ACT AGAINST ME IN TERMS OF PARAGRAPH 23 OF THE GENERAL CONDITIONS OF CONTRACT SHOULD THIS DECLARATION PROVE TO BE FALSE.

………………………………….. ..……………………………………………

Signature Date

………………………………….………………………………………………

Position Name of bidder

SBD 6.1

PREFERENCE POINTS CLAIM FORM

This preference form must form part of all bids invited. It contains general information and serves as a claim form for preference points for Broad-Based Black Economic Empowerment (B-BBEE) Status Level of Contribution

NB:BEFORE COMPLETING THIS FORM, BIDDERS MUST STUDY THE GENERAL CONDITIONS, DEFINITIONS AND DIRECTIVES APPLICABLE IN RESPECT OF B-BBEE

GENERAL CONDITIONS

1.1The following preference point systems are applicable to all bids:

-the 70/30 system for all requirements irrespective of Rand value (all applicable taxes included); and

1.2The value of this bid is estimated to exceed/not exceed R1 000 000 (all applicable taxes included) and therefore the……………………system shall be applicable.

1.3Preference points for this bid shall be awarded for:

(a)Price; and

(b)B-BBEE Status Level of Contribution.

1.3.1The maximum points for this bid are allocated as follows:

POINTS

1.3.1.1PRICE…70………..

1.3.1.2B-BBEE STATUS LEVEL OF CONTRIBUTION…30………...

Total points for Price and B-BBEE must not exceed100

1.4Failure on the part of a bidder to fill in and/or to sign this form and submit a B-BBEE Verification Certificate from a Verification Agency accredited by the South African Accreditation System (SANAS) or a Registered Auditor approved by the Independent Regulatory Board of Auditors (IRBA) or an Accounting Officer as contemplated in the Close Corporation Act (CCA) together with the bid, will be interpreted to mean that preference points for B-BBEE status level of contribution are not claimed.

1.5.The purchaser reserves the right to require of a bidder, either before a bid is adjudicated or at any time subsequently, to substantiate any claim in regard to preferences, in any manner required by the purchaser.

2.DEFINITIONS

2..1 “all applicable taxes” includes value-added tax, pay as you earn, income tax, unemployment insurance fund contributions and skills development levies;

2.2“B-BBEE” means broad-based black economic empowerment as defined in section 1 of the Broad-Based Black Economic Empowerment Act;

2.3 “B-BBEE status level of contributor” means the B-BBEE status received by a measured entity based on its overall performance using the relevant scorecard contained in the Codes of Good Practice on Black Economic Empowerment, issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act;

2.4“bid” means a written offer in a prescribed or stipulated form in response to an invitation by an

organ of state for the provision of services, works or goods, through price quotations, advertised competitive bidding processes or proposals;

2.5“Broad-Based Black Economic Empowerment Act” means the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003);

2.6“comparative price” means the price after the factors of a non-firm price and all unconditional discounts that can be utilized have been taken into consideration;

2.7“consortium or joint venture” means an association of persons for the purpose of combining their expertise, property, capital, efforts, skill and knowledge in an activity for the execution of a contract;

2.8“contract” means the agreement that results from the acceptance of a bid by an organ of state;

2.9“EME” means any enterprise with an annual total revenue of R5 million or less.

2.10“Firm price” means the price that is only subject to adjustments in accordance with the actual increase or decrease resulting from the change, imposition, or abolition of customs or excise duty and any other duty, levy, or tax, which, in terms of the law or regulation, is binding on the contractor and demonstrably has an influence on the price of any supplies, or the rendering costs of any service, for the execution of the contract;

2.11“functionality” means the measurement according to predetermined norms, as set out in the bid documents, of a service or commodity that is designed to be practical and useful, working or operating, taking into account, among other factors, the quality, reliability, viability and durability of a service and the technical capacity and ability of a bidder;

2.12“non-firm prices” means all prices other than “firm” prices;

2.13“person” includes a juristic person;

2.14“rand value” means the total estimated value of a contract in South African currency, calculated at the time of bid invitations, and includes all applicable taxes and excise duties;