Cumulative List of Q&As In Relation To The Invitation to Tender For:

Appointment of a Fund Manager to Deliver the Finance for Business North East Microloan Fund – Tender Reference: OJEU 2014/S 078-136653

Question 1, Received 12 May 2014. Response Published 13 May 2014:

Could you clarify the arrangements for the accounting for the fund, in particular the preparation and audit of the year end accounts.

Since the fund is a subsidiary of NEF, as opposed to being a limited partnership, is it the fund manager or NEF who prepares the annual accounts and engages the auditors for the fund?

Similarly is the payment of the year end audit fees to be paid from the returns of the fund or directly by NEF?

Answer: NEF prepares the annual accounts for the Microloan Fund, based on the information which the fund manager reports on a quarterly and monthly basis to NEF, supplemented as required with additional information requests from NEF to the fund manager. NEF engages the auditors for the fund and pays the audit fees direct to the auditors.

Question 2, Received 16 May, Response Published 19 May 2014:

Section 8.9 of the call for tender document refers to the existing Micro Loan Fund “Team Members” who may be eligible for TUPE transfer to a winning bidder. In order to clarify the TUPE position can you please state the job titles and short job description of the staff involved

Answer: NEF understands that one of the four Entrust team members engaged in delivering the Microloan Fund has recently resigned to take up a job elsewhere. The remaining team members are:

Job Title / Short Description
Head of Funds / Responsible for overall management of funds, including loan and equity portfolios. Manage performance of funds having regard to targets, lending criteria, default targets, collection targets and exit strategies. Provide line management support to staff. Ensure appropriate systems and processes for management of funds are in place. Report to CEO. Maintain relationship with and report to funders, clients and all external stakeholders.
Lending Executive / Assess loan applications, to the decision stage. Deal with enquiries from prospective applicants to the fund and support to them to help enable them to submit applications. Assess eligibility of applicants and interview them and interrogate plans to prove viability of businesses. Liaise with customers and develop relationship with them. Prepare reports with lending recommendation for presentation to lending panel. Complete loan agreements and associated documentation for loan drawdowns. Maintain databases and documentation in accordance with procedures.
Portfolio Manager / Lead the portfolio team to ensure timely collection of repayments from clients; maintaining relationships with clients, funders and all stakeholders. Support the Head of Funds in the administration of funds under management, producing reports on fund performance for funders and stakeholders. Deputise for the Head of Funds. Provide line manager support to the portfolio team. Assist with the preparation of detailed information in relation to fund performance and an early warning system that alerts any potential non payment. Liaise with customers. Maintain internal databases and accurate audit trails.

Question 3, Received 16 May, Response Published 19 May 2014:

Please can you also identify the salaries of each person individual?

Answer: to respect the confidentiality of the individuals concerned, we will not provide the individual salaries. Full details will be made available to the successful bidder. Following the departure of the individual referred to in the reply to question 2, the aggregate annual salary entitlement of the three remaining team members is £100,000. As stated in the Invitation to Tender, the application of TUPE is a matter for each bidder to clarify with their legal advisers. Bidders may consider providing different fee proposals which are based on different assumptions, as appropriate.

Question 4, Received 16 May, Response Published 19 May 2014:

Are any of the existing “Team Members” either now or would they be expected to be named as “Key Persons” in the contract.

The position is as set out in paragraph 8.8 of the Invitation to Tender: the Head of Funds is a Key Person. He is the only person identified as a Key Person in the fund management agreement who remains employed by the incumbent fund manager.

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