RFP REFERENCE: RFP/FIN/IAS/2017/16
PROVISION OF INTERNAL AUDIT SERVICES
PERISHABLE PRODUCTS EXPORT CONTROL BOARD (PPECB) OFFICES
Closing Date: 16 January 2018
Closing Time: 15H00
ISSUED BY: / PREPARED BY:PERISHABLE PRODUCTS EXPORT CONTROL BOARD
45 Silwerboom Avenue
Plattekloof
Cape Town
Tell No: 021930 1134
Contact person:
Procurement Officer
/ PERISHABLE PRODUCTS EXPORT CONTROL BOARD
45 Silwerboom Avenue
Plattekloof
Cape Town
Registered Name of Bidder:
Trading Name of Bidder:
Registration No. of Entity:
Contact Person: / Position:
Tel. No: / E-Mail Address:
Cell No: / Fax No:
THE PERISHABLE PRODUCTS EXPORT CONTROL BOARD RFP: RFP/FIN/IAS/2017/16
PROVISION OF INTERNAL AUDIT SERVICES
PERISHABLE PRODUCTS EXPORT CONTROL BOARD (PPECB) OFFICES
TABLE OF CONTENTS
NO. / DESCRIPTION / PAGE NUMBERInvitation to tender / 3
1. / Tender information and instructions / 3
2. / Closing time / 4
3. / PPECB background / 4
4. / Objective of the internal audit function / 5
5. / Scope of internal audit / 5
6. / Fraud and Irregularities / 6
7. / Quality assurance reviews of the work / 6
8. / Monitoring the progress of assignments / 6
9. / Independence and objectivity of staff / 6
10. / Duration of the contract / 6
11. / Requirements for tender submission / 6
12. / Tender evaluation specifications and process / 7
13. / Financial proposal / 10
14. / Special conditions / 11
15. / Form of contract / 11
16. / Further information / 11
INVITATION TO TENDER
Tenderers are invited to tender for the provision of internal audit services for the Perishable Products Export Control Board (PPECB).
Tenderers must comply with the instructions to Bidders and all other requirements of this Invitation to Tender. Non-compliance may lead to a tender not being considered by the PPECB.
The bid and accompanying documents must be carefully parcelled, sealed and delivered to the Procurement tender box in the reception area of PPECB Head Office by no later than the 16th of January 2018 at 15:00.
1. TENDER INFORMATION AND INSTRUCTIONS
The following terms shall have the following meanings:
Invitation to Tender: Provision of Internal Audit Services
Contact Person: The Procurement Officer
PPECB
45 Silwerboom Avenue
Plattekloof
Public Entity: Perishable Products Export Control Board (PPECB)
Tenderer: The person / organisation submitting to a tender bid to the PPECB under this tender.
The PPECB invites Tenderers to submit a fixed price for providing the services outlined under Scope of Audit Services. Tenders are invited in accordance with the information in this pack.
Tenderers are required to submit detailed proposals to demonstrate its ability to provide the services they will deliver on this contract. A detailed specification of the services required by PPECB is contained herein. The legal obligations of the PPECB and the Tenderer will be contained in the contract entered between PPECB and the successful Tenderer.
The tender shall be submitted on the Forms of Tender incorporated herein. The form shall be signed by each Tenderer and submitted in the manner and by the date and time stated below together with the documents listed duly completed.
All of the following documents (Part 1 to VI) must be submitted as part of the response to this bid request. Failure to do so will invalidate a response.
Form No / Document Description1. SBD 1 / Invitation to Bid
2. SBD 2 / Tax Clearance Certificate Requirements
3. SBD 3.3 / Pricing Schedule
4. SBD 4 / Declaration of Interest
5. SBD 6.1 / Preference Point Claim Form
6. SBD 7.2 / Contract Form: Rendering of Services
7. SBD 8 / Declaration of Bidder’s past SCM Practices
8. SBD 9 / Certificate of Independent Bid Determination
Each Tenderer should ensure that it is thoroughly familiar with the Tender Documents and understands the obligations that will apply if the Tender is accepted by the PPECB.
The tender submission and assessment process will be conducted in compliance with the Public Finance Management Act of 1999, Supply Chain Regulation and PPECB’s Procurement Policy. PPECB is committed to support and grow Black Economic Empowerment and Small Medium Enterprises in South Africa, emphasis being placed on procurement from historically disadvantaged South Africans.
Tenderers shall highlight where a conflict of interest exists or may exist between parties under the proposed contract. In the event that a conflict of interest exists between the most advantageous Tenderer and the PPECB, the said Tenderer’s bid will not be accepted. The next most advantageous Tenderer will be awarded the contract.
The award of the tender is subject to receiving approval from the Board of Directors of the PPECB.
It is the responsibility of each Tenderer to obtain for itself at its own expense any additional information necessary for the preparation of the tender. All information supplied by the PPECB in connection to this invitation to tender shall be treated as confidential. Should Tenderers believe that they require further information, they are invited to contact the Procurement Officer. Any queries relating to the Tender Documents should be sent in writing to the Procurement Officer to arrive no later than five days before the date for submission of the tender. The Procurement Officer may if necessary issue written circulars to Tenderers amending or clarifying the Tender Documents and Tenderers shall comply with these.
All proposals are to be submitted in PDF format on the envelopes to the designated Tender Box.
Proposals must consist of two parts, each of which is submitted in a separate PDF package clearly marked:
· Envelope 1: Technical Proposal: RFP No. RFP/FIN/IAS/2017/16 (No Pricing in this envelope)
· Envelope 2: Pricing Proposal, B-BBEE and other Mandatory Documentation: RFP No. RFP/FIN/IAS/2017/16
A Soft Copy should be submitted on a USB in word document sealed in a small envelope.
Proposals submitted by companies must be signed by a person or persons duly authorised thereto.
The PPECB will award the contract to qualified bidder (s) whose proposal is determined to be the most advantageous to the PPECB, taking into consideration the technical (functionality) solution, price and B-BBEE.
2. CLOSING TIME
The closing time for submission of Tender Offers is: 15H00 on 16th January 2018.
The PPECB business hours are between 08:15 – 16:45. Where a proposal is not received by the PPECB by the due date and at the correct location, it will be regarded as a late bid. Late proposals will not be considered.
Telephonic, telegraphic, telex, electronic or e-mailed tenders will not be accepted.
3. PPECB BACKGROUND
PPECB is a Schedule 3A Public Entity that is constituted and mandated in terms of the PPEC Act, No 9, of 1983 to perform cold chain services. PPECB also delivers inspection and food safety services as mandated by the Department of Agriculture, Forestry and Fisheries under the APS Act, No.119 of 1990.
PPECB’s executive Authority is the Minister of Agriculture, Forestry and Fisheries who appoints the Board of Directors. The Board comprises of representatives from the perishable product industries.
PPECB, mandated by the Department of Agriculture, Forestry and Fisheries, has been delivering end-point inspection services on perishable products destined for export since 1991. PPECB employs more than 500 people, who deal with more than 200 products and 500 varieties. There are 50 service types, over 30 offices in 11 production regions, at more than 1,500 locations.
PPECB is responsible for South Africa's cold chain management and ensures that products for export are handled, stored and transported at specific temperatures and optimum conditions.
Please visit PPECB’s website on www.PPECB.com for more info on PPECB.
4. OBJECTIVE OF THE INTERNAL AUDIT FUNCTION
These terms of reference are intended to provide a scope of work and deliverables to Internal Auditors in terms of section 38 (1) (a) (i) and (ii) of the PFMA (Public Finance Management Act) and in terms of section 3.2 of the Treasury Regulations for the provision of Internal Audit Services to PPECB.
The objective of this bid is to appoint a suitable, independent service provider that can provide an appropriate internal audit service for the Accounting Authority and management of the PPECB. In terms of the Public Finance Management Act (PFMA), the PPECB should have an effective internal audit function, which should also comply with the Institute of Internal Auditors’ (IIA) standards.
The internal audit function should assist the PPECB to accomplish its objectives by bringing a systematic and disciplined approach to evaluating and improving the effectiveness of risk management control and governance processes. The risk management strategy, including the Fraud Prevention Plan, must be used to direct the internal effort. One of the objectives of the internal audit function is to assist the Audit Committee and Risk Committee, and through it the Accounting Authority and management, in the effective discharge of their responsibilities. This must be done through furnishing them with analyses, appraisals, recommendations, counsel and information concerning the activities that have been reviewed as well as regular follow-ups.
Other objectives/standards/controls of the audit function, which are subject to an evaluation, are to review the following:
- Internal control processes;
- The information systems environment;
- The reliability and integrity of financial and operational information;
- The effectiveness of operations of PPECB;
- Compliance with laws, regulations, policies, contracts and controls;
- The safeguarding of assets;
- The economical and efficient use of resources;
- The achievement of established operational goals and objectives; and
5. SCOPE OF INTERNAL AUDIT
These terms of reference are intended to provide a scope of work and deliverables to Internal Auditors in terms of section 38 (1) (a) (i) and (ii) of the PFMA (Public Finance Management Act) and in terms of section 3.2 of the Treasury Regulations for the provision of Internal Audit Services to PPECB.
The scope of the internal audit function includes the points listed below. However, should any other function be regarded as imperative by the tenderer, it should be added and clearly defined.
The internal audit function must, in consultation with PPECB Management, prepare:
a) A rolling three-year strategic Internal Audit Plan based on its assessment of key areas of risk for the PPECB, having taken into consideration the current operations, the operations proposed in its corporate or strategic plan and its risk management strategy.
b) An annual Internal Audit Plan.
- Plans indicating the scope, cost and timelines of each audit in the annual internal audit.
- Audit reports directed to Management and RISCO detailing its performance against the plan to allow effective monitoring and intervention, when necessary.
- It must co-ordinate with other internal and external providers of assurance to ensure proper coverage and minimal duplication of effort.
- The internal audit function must assist the Accounting Authority in maintaining effective controls by evaluating those controls and developing recommendations for enhancement or improvement.
c) It must assist the Accounting Authority in achieving the objectives of the PPECB by evaluating and developing recommendations for the enhancement or improvement of the processes through which:
- Objectives and values are established and communicated;
- The accomplishment of objectives is monitored;
- Accountability is ensured;
- Corporate values are preserved;
- The adequacy and effectiveness of the system of internal control are reviewed and appraised;
- The relevance, reliability and integrity of management, financial and operating data and reports are appraised;
- Systems established to ensure compliance with policies, plans, procedures, statutory requirements and regulations, which could have a significant impact on operations, are reviewed;
- The means of safeguarding assets are reviewed and deemed as appropriate in verifying the existence of such assets;
- The economy, efficiency and effectiveness with which resources are employed are appraised;
- The results of operations or programmes are reviewed to ascertain whether they are consistent with the PPECB’s established objectives and goals and whether the operations or programmes are being carried out as planned; and
- The adequacy of established systems and procedures are assessed.
d) The audits that will need to be taken into account at the PPECB are, among others:
- IT security and systems processes audit.
- Conducting special assignments and investigations, on behalf of management or the CEO, into any matter or activity affecting the probity, interest and operating efficiency of the PPECB.
- Audit designed to detect fraud.
e) The firm will be required to perform annual risk workshops throughout the duration of the contract.
f) The IT auditor assigned by the firm will be required to attend steering committee meetings for the ERP project
6. FRAUD AND IRREGULARITIES
In planning and conducting its work, the internal auditor should seek to identify serious defects in internal controls, which might result in possible malpractices. Any such defects must be reported immediately to the CEO and/or Audit Committee without disclosing these to any other staff. This also applies to instances where serious fraud and irregularities have been uncovered.
7. QUALITY ASSURANCE REVIEWS OF THE WORK
The auditor shall ensure that all work conforms to the IIA Standards for Professional Practice. Such work may further be subjected to external quality assurance, as may be considered necessary.
8. MONITORING THE PROGRESS OF ASSIGNMENTS
On completion of each assignment, the auditor shall distribute the reports to Management, RISCO and the CFO. On a quarterly basis, a report on progress against the plan, significant findings and administrative matters will have to be presented to the Audit Committee.
The Engagement Partner and/or Senior Manager must attend all Audit Committee meetings.
9. INDEPENDENCE AND OBJECTIVITY OF STAFF
In carrying out the work, the auditor must ensure that their staff members maintain objectivity by remaining independent of the activities they audit.
10. DURATION OF CONTRACT
The contract is expected to run for five years, commencing on the date of signing the Service Level Agreement. It will, however, be renewable annually and this will be subject to a review of the previous year’s performance against the Internal Audit Plan. The successful tenderer should be able to start from April 2018.
11. REQUIREMENTS FOR TENDER SUBMISSION