Extended Title: Appointment of a service provider to provide outsourced internal audit services.
Appointment of a service provider to provide outsourced internal audit services.
Tender number: CS/SCM/CFO/R19-20/13
Closing date and time: 28 June 2019 @ 12:00pm
Erratum: As per email send from issuer: No compulsory briefing - please confirm
RFP TO BE SUBMITTED IN HARD COPY TO: Corner Miriam Makeba & Helen Joseph Street, Newtown, Johannesburg, 2017
RFP VALIDITY PERIOD: 90 Days
2. ABOUT SCi-BONO DISCOVERY CENTRE
2.1 Sci-Bono Discovery Centre is the national flagship science centre in South Africa and the largest and most visited science centre in Southern Africa. Located in the historic, century-old Electric Workshop in the cultural precinct of Newtown Johannesburg, Sci-Bono annually receives hundreds of thousands of visitors to its large collection of interactive science and technology exhibits and exhibitions.
2.2 Sci-Bono started in 2004 as a partnership between the Gauteng Department of Education (GDE) and various private sector partners. Its supports mathematics, science and technology education in order to help build South Africa’s science engineering, mathematics and technology capacity.
2.3 It also works with the Department of Science and Technology (DST) and the South African Agency for Science and Technology Advancement (SAASTA), to promote interest and awareness in the fields of science, technology, engineering and mathematics and is a core member of the Southern African Association of Science and Technology Centres.
2.4 The activities and exhibitions we run and host at Sci-Bono are guided by its Vision: Sci-Bono envisions a society with the capacity to compete in the global world of science and technology and that is equipped with the skills, attitudes and values needed to improve the quality of life of all South Africans.
2.5 The Centre supports Science, Technology, Mathematics and related subjects to help build South Africa’s Science, Engineering and Technology capacity. The Sci-Bono Discovery Centre, where visitors can engage with the NPO’s collection of interactive Science and technology exhibits and exhibits also offers a broad programme of Science and Technology events, activities and programmes for schools, and the public at large.
2.6 Sci-Bono’s mission is to support and enhance the delivery of effective Mathematics, Science, Technology and Career Education in Gauteng schools and to improve awareness of, interest in and engagement with all aspects of science, engineering and technology in youth and the public.
2.7 Sci-Bono is one of the most popular leisure and educational destinations in Gauteng. The science centre endeavors to remain relevant to its patrons by bringing them once and again intriguing scientific content through internationally renowned travelling exhibitions and exhibits. In 2013 and 2016, Sci-Bono hosted the Body Worlds Travelling International Exhibition, which was well received and saw Sci-Bono receive record setting footfall through the science centre doors.
2.8 Sci-Bono through its goats, works towards achieving this mission by:
2.8.1 Improving the teaching and learning of Mathematics, Science and Technology in Gauteng
2.8.2 Providing Career Education to learners and youth in Gauteng
2.8.3 Providing skills development opportunities for young people
2.8.4 Promoting and improving public awareness of and engagement with Science, Engineering and Technology.
2.9 To achieve these goals, Sci-Bono implements a wide range of activities and offers exhibitions, for learners, teachers and the public at its centre in Newtown and through an extensive outreach programme to schools throughout Gauteng.
3. OBJECTIVES OF THE INTERNAL AUDIT FUNCTION
The objective of this bid is to appoint a suitable, independent service provider that can provide an appropriate internal audit service for the Board of Directors and management of Sci-Bono. In terms of the Memorandum of Incorporation, Sci-Bono 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 Sci-Bono 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 and Risk Committee (ARC), and through it the Board of Directors and management, in the effective discharge of their responsibilities. This has to 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;
- Compliance with policies, regulations and contracts;
- The safeguarding of assets;
- The economical and efficient use of resources;
- The achievement of established operational goals and objectives; and
- Compliance with laws, regulations and controls.
- Background information on the structure of the organisation can be found in the latest Annual Report, which is available on our website (www.sci-bono.co.za).
4. SCOPE OF WORK
The scope of the internal audit function includes the points listed below. However, should any other function be regarded as imperative by the bidder, it should be added and clearly defined.
The internal audit function must, in consultation with ARC, prepare:
- A rolling three-year strategic Internal Audit Plan based on its assessment of key areas of risk for the Sci-Bono, having taken into consideration the regulator’s current operations, the operations proposed in its corporate or strategic plan and its risk management strategy.
- An annual Internal Audit Plan.
- Plans indicating the scope, cost and timelines of each audit in the annual internal audit.
- Audit reports directed to ARC 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 Board of Directors in maintaining effective controls by evaluating those controls and developing recommendations for enhancement or improvement.
- It must assist the Board of Directors in achieving the objectives of the organisation by evaluating and developing recommendations for the enhancement or improvement of the processes through which:
(i) Objectives and values are established and communicated;
(ii) The accomplishment of objectives is monitored;
(iii) Accountability is ensured;
(iv) Corporate values are preserved;
(v) The adequacy and effectiveness of the system of internal control are reviewed and appraised;
(vi) The relevance, reliability and integrity of management, financial and operating data and reports are appraised;
(vii) Systems established to ensure compliance with policies, plans, procedures, statutory requirements and regulations, which could have a significant impact on operations, are reviewed;
(viii) The means of safeguarding assets are reviewed and deemed as appropriate in verifying the existence of such assets;
(ix) The economy, efficiency and effectiveness with which resources are employed are appraised;
(x) The results of operations or programmes are reviewed to ascertain whether they are consistent with the organisation’s established objectives and goals and whether the operations or programmes are being carried out as planned; and
(xi) The adequacy of established systems and procedures are assessed.
- The audits that will need to be taken into account at Sci-Bono are, among others:
(i) IT security and systems processes audit.
(ii) Conducting special assignments and investigations, on behalf of ARC or the CEO, into any matter or activity affecting the probity, interest and operating efficiency of Sci-Bono.
(iii) Audit designed to detect fraud and irregularities.
- 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 ARC without disclosing these to any other staff. This also applies to instances where serious fraud and irregularities have been uncovered.
5. EXPECTED OUTCOMES AND DELIVERABLES
- Performing Audit Assignments
Each assignment should at least consist of the following:
- A pre-audit survey;
- An audit planning memorandum;
- Minutes of the entrance meeting;
- A risk assessment document;
- System descriptions;
- Audit programmes;
- Sampling methodology;
- Mechanisms for follow-up on matters previously reported and feedback to ARMCO;
- Mechanisms to ensure that working papers are reviewed at the appropriate level;
- A record of work performed;
- A review of work performed;
- Audit findings and recommendations;
- Reporting (a draft internal audit report and a final internal audit report); and
- Follow-up on previous audit findings.
- Reporting Requirements
The structure of the report is to be as follows:
- Audit objective and scope;
- Executive summary, highlighting significant findings;
- Findings, recommendations and management response (including implementation dates);
- All audits as carried out according to the Internal Audit Plan and as approved by ARC; and
NB: The auditor is to deliver an electronic copy and one signed copy of the final report to the chairman of ARC and the Sci-Bono CEO.
6. 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.
7. MONITORING THE PROGRESS OF ASSIGNMENTS
- On completion of each assignment, the auditor shall distribute the reports to ARC, the CFO and the CEO.
- On a quarterly basis, a report on progress against the plan, significant findings and administrative matters will have to be presented to ARC.
8. DURATION OF CONTRACT
- The contract is expected to run for three 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 bidder should be able to start from 01 August 2019.
9. TERMS AND CONDITIONS/ INSTRUCTION FOR THE PROPOSAL
9.1 Sci-Bono can request further information from any service provider (s) after the closing date.
9.2 Sci-Bono reserves the right to cancel the bid or not to appoint any service provider(s).
9.3 Sci-Bono reserves the right to perform audits on the quality of processes/intervention methodology or approach utilized by the service provider, after the awarding of the service provider.
9.4 The service provider will always be appointed on the premise of a supplier- delivering-a-service relationship and not of an employer-employee relationship.
10. MINIMUM REQUIREMENTS
Bidders must supply Sci-Bono with the below-mentioned minimum requirements. Failing to provide these requirements may constitute automatic disqualification:
Suppliers must submit the following (Submit two envelops as follows):
10.1.1 A Form a! Written Quotation (clear & unambiguous; with VAT implications).
10.1.2 Quotation form downloadable from the Sci-Bono website.
10.1.3 Comprehensive proposal (including the project plan)
10.1.4 Proof of Company Registration
10.1.5 A valid Tax Clearance Certificate
10.1.6 B-BBEE certificate (IRBA or SANAS) or Sworn Affidavit
10.1.7 Fully completed SBD forms (SBD 4, SBD 8, SBD 9) downloadable from the Sci-Bono website
10.1.8 An over the counter Stamped Letter Confirming Bank Details of the bidding entity
10.1.9 Proof of Business Address
10.2 Bidders must further supply Sci-Bono Discovery Centre with at least two (2) contactable references where the bidder has delivered similar services. Reference letters demonstrating skills and expertise to undertake the contract; and
10.3 Contactable references by simply stating the following:
- Name of client
- Contact telephone numbers
- Dates and work performed
- Rand value of worked performed
10.4 The failure to provide the above may constitute a disqualification as it shall be deemed that the bidder does not have the required experience.
10.5 Bidders are reminded that the Sci-Bono will award the bid based on a bidder’s total project cost and not hourly or daily rates. The bidder must ensure delivery of the project within the required timeframes stipulated in the terms of reference.
11. PRICING SCHEDULE AND DELIVERY
11.1 General Pricing Fee
11.1.1 The bidder must provide a clear and unambiguous price schedule (quotation).
11.1.2 All disbursements and related costs shall be provided separately, if any, and may be negotiated during the project implementation period.
11.1.3 Only unconditional discounts shall be accepted. All discounts granted must be specified on the Quotation Form.
11.1.4 Note that the price must be fixed and will not be subjected to change based on foreign exchange fluctuations.
11.2.1 The delivery/provision of services shall be done at primarily at Sci-Bono Discovery Centre, Newtown, Johannesburg, Gauteng Province.
12. CONDITIONS FOR SHORT LISTING
12.1 Proposals submitted will be evaluated using a system Method 4 (Financial Offer, Quality and Preference) in line with Section 6.3 (Table 6.3.1: Standard Tender Evaluation Method) prescribed by Sci-Bono’s Supply Chain Management Policy.
12.2 All bids shall be subjected to the preliminary evaluation process. Bidders who do not meet the minimum requirements (item 10) set by this RFP may automatically be disqualified and shall not be evaluated for functionality, price and preference.
12.3 Service providers are required to submit all documents specified on item 9.1 and 9.2 of this RFP, otherwise failure to submit all documents may constitute disqualification.
13. TECHNICAL EVALUATION (COMPULSORY PRESENTATION)
13.1 All proposals / bids that will qualify (accepted) during the preliminary evaluation stage shall be evaluated for functionality or technicality. The functionality evaluation criteria shall be as follows:
13.1.1 The evaluation process to determine the successful bidder (s) will involve both qualitative and quantitative elements.
13.1.2 As a general framework, all proposals presented by bidders will be evaluated in the context of the overall value that it brings to the initiative.
13.1.3 While cost is a significant part of the evaluation criteria, it will not be the sole determinant.
13.1.4 Each criterion below may be considered for each requirement listed in section 5, bidders must ensure they review the criteria when they develop each aspect of their proposal Proposals will be reviewed and ranked on the following criteria and scored out of a 100 point total as follows: (see document for table)
13.2 Shortlisted service providers may be required to submit and present their proposal on a specified date.
14. PRICE EVALUATION
14.1 The proposals / bids shall be evaluated using the 80/20 preference point scoring system.
PS = 80
Ps = Point scored for comparative price of bid under consideration;
Pt = Comparative price of bid under consideration; and
Pmin = Comparative price of the lowest acceptable bid.
15. POINTS FOR B-BBEE
15.1 An 80/20 preference points scoring system (B-BBEE points) shall apply and shall be awarded as follows: (see document for table)
16. AWARD CRITERIA
16.1 The bidder with the total highest number of points for price and B-BBEE contribution shall be awarded the contract, unless objective criteria applied leads to an award to an alternative bidder.
16.2 In the event of two or more bids scoring equal points, the bid will be awarded to the bidder scoring the highest points on B-BBEE or preference.
16.3 However, in the event the two or more bids have equal B-BBEE points, the tender will be awarded to the bidder with the highest points for functionality, if applicable.
16.4 Qualifying proposals will be evaluated according to the following criteria:
- Price: - 80%
- PDI / BEE rating - 20%
17. CLOSING DATE AND TIME
17.1 Compulsory briefing will be held on 18 June 2019, 12:00; at Sci-Bono Discovery Centre.
17.2 Submissions should be delivered by hand (hardcopy) on or before 28 June 2019 at 12:00pm, deposited into the tender box marked “PROVISION OF OUTSOURCED INTERNAL AUDIT SERVICES”; “NO LATE PROPOSALS” shall be accepted. Late proposals / bids shall be immediately returned to the bidders.
17.3 Shortlisted bidders will be invited to present their submissions to the Bid Evaluation Committee (BEC) on a date that will be communicated via email after the closing date.
17.4 All correspondences shall be done by e-mail email@example.com; no telephonic correspondences shall be done before and after the closing of bid. Consultants may be informed in writing of the outcome of the bid adjudication process.
18.1 Sci-Bono reserves the right to accept or reject any variation, deviation, tender offer or alternative offer and may cancel the tender process and reject all tender offers at any time before the formation of a contract.
18.2 Sci-Bono reserves the right to award a contract to multiple service provider(s) should it be deemed necessary.
18.3 Sci-Bono reserves the right not to appoint a provider, to accept and/or award the whole or any portion of the tender, and is also not obliged to provide reasons for the rejection of any tender.
18.4 Sci-Bono will not incur any liability to a tenderer for such cancellation and rejection, but will give written reason for action upon request to do so.