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DEPARTMENT OF EDUCATION - EASTERN CAPE PROVINCE

PROJECT: REVIEW OF PFM and ADMINISTRATION STANDARDS AT SCHOOLS

TERMS OF REFERENCE1. INTRODUCTION TO THE PROJECT

The Eastern Cape Department of Education (“DoE”) intends implementing a specific strategy for improving and strengthening the standards of Public Financial Management (“PFM”) throughout the province, inclusive of that at all its’ institutions (public schools). The department already embarked on a few processes in this regard for example standardising SCOA for budget purposes, training interventions and review of the audit reports and annual financial statements presented over the past financial years.

This specific project is regarded as an integral part of implementing the PFM-Improvement Strategy of the department and aims at- Improving the usefulness of the annual financial statements presented by schools Improving the level of assurance provided by those appointed service providers responsible for

reporting on these financial statements. Integrating the various information systems dealing with institutions (EMIS, HR, Finance, IDS & G

etc.) and coordinating activities within the DoE. Promoting monitoring and oversight over financial management at school level, inclusive of

budget control and compliance to departmental directives. Identifying those liabilities where the department could be required to settle debts of a school

so to ensure teaching and learning activities continues

The South African Schools Act, Act 84 of 1996, stipulates as follows i.e.

Section 42 (a): The governing body of a public school must keep records of funds received and spent by the public school and of its assets, liabilities and financial transactions and;Section 42 (b): As soon as practical, but not later than three months after the end of each financial year, draw up annual financial statements in accordance with the guidelines determined by the MEC.Section 43 Audit or examination of financial records and statements.

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RFQ 16/17 0082: database registration - REVIEW PFM AT SCHOOL LEVEL

a. The governing body of a public school must appoint a person registered as an auditor in terms of the Auditing Profession Act, 2005 (Act No. 26 of 2005), to audit the records and financial statements referred to in section 42.

b. If the audit referred to in subsection (1) is not reasonably practicable, the governing body of a public school must appoint a person to examine and report on the records and financial statements referred to in section 42, who

• is qualified to perform the duties of an accounting officer in terms of section 60 of the Close Corporations Act, 1984 (Act No. 69 of 1984); or

• is approved by the Member of the Executive Council for this purpose.

c. No person who has a financial interest in the affairs of the public school may be appointed under this section.

d. If the Member of the Executive Council deems it necessary, he or she may request the Auditor-General to undertake an audit of the records and financial statements of a public school.

e. A governing body must submit to the Head of Department, within six months after the end of each financial year, a copy of the annual financial statements, audited or examined in terms of this section.

At the request of an interested person, the governing body must make the records referred to in section 42, and the audited or examined financial statements referred to in this section, available for inspection.

2. PURPOSE OF THE TERMS OF REFERENCE DOCUMENT

To ensure that service providers are appropriately informed of the objectives and aim of the project as well as the expectations of the DoE the TOR provides specific information and serve as a guideline to interested service providers in order to decide on participation in the project and registering their interests as such.

This is not a Tender but an invitation to register as an approved service provider on the “2016 School PFM Database” of the DoE. Service providers should take note that any Review assignments will only be allocated to those registered on the new 2016 database. Any assignment specific appointment will be done on a quotation basis.

Service Providers are hereby informed that only those duly registered on the new 2016 DoE database will be considered for engagement in the project. Payment to service providers will be centralised and as such all engagements will managed at Head Office level.

Attached to the TOR is also a set of project-specific documents that intends guiding you as service provider on DoE expectations as well as collating information required to enable the DoE to earmark specific service providers for inviting quotations in future. Service providers are reminded that the condition of section 43 of The South African Schools Act, Act 84 of 1996,(“SASA”) still apply.

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3. PROJECT DESCRIPTION

The DoE intends compiling a set of “Agreed-Upon Procedures” (“AUPs”) that service providers must execute as a minimum when visiting the institutions as well as standardising the reporting format and content to be used by service providers. Annual school Reviews will be considered on a rotation basis taking into account various factors i.e. risks, availability of funding within the department and capacity of service providers.

The AUPs will be a combination of Financial Audit and Compliance Audit procedures whilst the DoE considered the following strategic decision i.e.

Table 1Reliance on Internal Controls NoneAudit Risk HighMateriality: Basis Total RevenueMateriality: Calculation of level 1%

The draft set of intended procedures are attached hereto and should be used solely by service providers as a guideline for determining own capacity and skill requirements, refer Annexure IX. PLEASE TAKE NOTE: The prescribed accounting framework has not been finalised and as such there is still a mixture of formats in which annual financial statements are presented. Where the accrual basis has not been adopted or applied in full, service providers must still enquire about the existence of assets and liabilities.

According to 2015 SNAP survey, there are 5 537 public ordinary schools in the Eastern Cape (refer table 2) and 78% of these schools are regarded as small or medium (less than 500 learners) where the DoE subsidies are the main source of revenue. The relative size of the school will serve as guideline to calculate the number of hours to conduct the AUPs and issue the required report. Table 3 analyze schools on a district basis. This project does not provide funds for accounting services!

Table 2 ClassificationCategories – Learner Numbers (“L”)

Primary Secondary Combined Special TOTALS

Very Small: < 135 L 1 060 91 224 12 1 387Small: 136 - 200 L 467 64 292 7 830Medium: 201 – 500 L 789 286 1 005 20 2 100Large: 501 – 750 L 164 189 282 3 638Mega: > 750 L 200 220 162 - 582

TOTALS 2 680 850 1 965 42 5 537

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Table 3

DistrictSCHOOL CATEGORIES PER CLASSIFICATION

Primary Secondary Combined Special TOTALS1 Butterworth 141 46 194 3812 Comvibaba 84 28 132 2443 Cradock 55 19 3 774 Dutywa 134 38 180 3525 East London 203 72 19 6 3006 Engcobo 97 26 114 1 2387 Fort Beaufort 181 56 8 2458 Graaf Reinett 64 13 5 829 Grahamstown 38 10 19 2 69

10 KWT 270 99 35 4 40811 Lady Frere 67 23 71 16112 Libode 120 42 259 42113 Lusikisiki 69 21 135 1 22614 Maluti 132 23 65 1 22115 Mbizana 78 27 108 3 21616 Mount Fletcher 67 19 101 18717 Mount Frere 182 38 155 1 37618 Mthatha 118 56 171 3 34819 Port Elizabeth 161 68 5 13 24720 Queenstown 94 41 24 1 16021 Qumbo 146 30 73 1 25022 Sterkspruit 70 26 68 2 16623 Uitenhage 109 29 21 3 162

TOTALS 2 680 850 1 965 42 5 537

HOSTELS – The list of schools with hostels will be made available to the relevant service providers once appointments are done.

It is expected that the Pilot Project will guide the DoE in finalising the AUPs, format and content of the Report and the average number of hours to be budgeted for per assignment.

4. INSTRUCTIONS TO SERVICE PROVIDERS

4.1 Interested service providers should complete the following Project-Specific schedules for purpose of registration on the database i.e.

4.1.1 Professional Membership Refer Annexure ISections 43(1) – (3) of the South African Schools Act, Act 84 of 1996, defines who can be appointed to audit or review the financial affairs of a school. Service providers must indicate all affiliations and attach certified copies of proof of active membership (“Certificate of Good Standing”). 4.1.2 Physical Location and locations interested in – Refer Annexure II

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Service Providers should indicate in which district(s) do they have existing offices and within which districts can they audit schools that are- Within 50km travelling distance, requiring daily transport only Within 50 -100km travelling distance, requiring daily transport only Within 100 -200km, requiring transport and daily accommodation, subsistence allowances4.1.3 Independence Certificate Refer Annexure III4.1.4 Capacity Refer Annexure IV4.1.5 Indicative Fee Structure Refer Annexure V4.1.6 Indicative Internal Travelling, Accommodation and Subsistence Allowance

Annexure VI4.1.7 List of schools audited over past 3 years Refer Annexure VII

(Provide a Minimum of 3 References)

4.2 The following additional documents must be included in the submission for registration on the department’s database i.e. certified copies of – 4.2.1 Abbreviated CVs in the prescribed format for each staff member intended to be used

once assignments are awarded, inclusive of a general statement on computer literacy levels. Refer Annexure VIII

4.2.2 Identity Documents for each staff member as identified In 4.2.1 4.2.3 Membership certificates4.2.4 Physical Address(s) of each/all Business Office(s)4.2.5 Corporate Profile of not more than 2 pages

4.3 Standard bid documents must be submitted in addition to the “project specific” documents.

All submissions MUST be accompanied by a Valid tax clearance certificate

Submission is only valid when signed by the service provider

Please also sign and submit the attached SBD 4, 8 and 9 forms

All service providers interested to register on our database must be registered and submit

proof of their registration on the Treasury Centralized Supplier Database (CSD) which came

into effect as of 1 April 2016.

In conclusion: If any prescribed document is not completed, signed off or provided as requested, your application will not be accepted.

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5. PROJECT MANAGEMENT

5.1 Project Name: Review of Public Financial Management and Administration Standards at School level

5.2 Project Reference number: RFQ 16/17 - 00825.3 Deadline for submission of documents: Tuesday, 25 November 2016, 11h00. All submissions

must be handed in at the Tender Box, Ground Floor, Eastern Cape Department of Education (ECDoE), Steve Vukile Tshwete Complex, Zwelitsha, KING WILLIAM’S TOWN. No late submissions will be accepted.

6. CERTIFICATE OF SUBMISSION

Each service provider is requested tom complete the prescribed Certificate of Submission and place it on top of all the documents submitted. Please ensure that you record the name of your firm on each page and signing off each individual annexure as provided for.

7. ANNEXURES

Annexures are attached.

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ANNEXURE I

PROFESSIONAL MEMBERSHIPMark with an X

No Affiliation X Date Affiliated Membership No1 The South African Institute of Chartered

Accountants (SAICA)2 Auditors registered in terms of the provisions

of the Auditing Profession Act, 2005(CA)3 The Southern African Institute of Chartered

Secretaries and Administrators (ICSA)4 The Chartered Institute of Management

Accountants (CIMA)5 The South African Institute of Professional

Accountants (SAIPA)6 THE IAC who have obtained the Diploma in

Accountancy (IAC)7 The Association of Chartered Certified

Accountants (ACCA)8 The Chartered Institute of Business

Management (MCIBM)9 The South African Institute of Business

Accountants (SAIBA)10 The South African Institute of Government

Auditors (SAIGA)11 The Institute of Internal Auditors (IIA)

12 Other *

13 Other *

*please provide full details of nature of professional body and full contact details, inclusive of website address.

DETAILS OF SERVICE PROVIDER Signed

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ANNEXURE II

LOCALITYMark with an X

DISTRICT EXISTING OFFICE

LOCATION

FIRST CHOICE OF DISTRICTS –

SCHOOLS WITHIN 50km

SECOND CHOICE OF DISTRICTS –

SCHOOLS WITHIN 50 -100km

THIRD CHOICE OF DISTRICTS –

SCHOOLS WITHIN 100 -200km

1 Butterworth

2 Comvibaba

3 Cradock

4 Dutywa

5 East London

6 Fort Beaufort

7 Graaf Reinett

8 Grahamstown

9 KWT

10

Lady Frere

11

Libode

12

Lusikisiki

13

Maluti

14

Mbizana

15

Mount Fletcher

16

Mount Frere

17

Mthatha

18

Ngcobo

19

Port Elizabeth

20

Queenstown

21

Qumbo

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22

Sterkspruit

23

Uitenhage

TOTALS


ANNEXURE III

INDEPENDENCE CERTIFICATEProvide full details of schools where independence is deemed a challenge

DISTRICT NAME OF SCHOOL NATURE OF CHALLENGE

Please note that assignment specific Independence Certificates will be required prior to the awarding of any assignment.

Signed

ANNEXURE IV

CAPACITY ANALYSISPlease provide a summary of available capacity

NO SURNAME, Initials Relevant Experience (Years)

Highest Qualification Professional Membership Reference

1234

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5678910


ANNEXURE V

INDICATIVE FEE STRUCTUREPlease provide average rate per hour per category. All rates to INCLUDE VAT where applicable

Categories – Learner Numbers (“L”)

Audit Execution

QA and Reporting

Total Average Rate per hour **

Very Small: < 135 Learners

16 8 24

Small: 136 - 200 Learners

24 8 32

Medium: 201 – 500 Learners

40 8 48

Large: 501 – 750 Learners

48 16 64

Mega: > 750 Learners

64 16 80

** Please note: This project does not provide for accounting services i.e. for compiling the annual financial statements. Additional budget for audit of hostels will be made available.

Signed

ANNEXURE VI

INDICATIVE COSTS STRUCTUREPlease indicate prevailing internal arrangements, rates and conditions

ITEM RATE / Km INTERNAL POLICY, CONDITIONSTravelling within 20km per day

Travelling exceeding 20km per day

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Accommodation per day

Daily Subsistence per day

Please note that these rates should be regarded as “indicative rates” and that specific cost structures will be agreed on an assignment specific basis.


ANNEXURE VII

LIST OF SCHOOLS AUDITED PAST 3 YEARSMark with X

No Name of School EMIS Number Province, District Year(s) Reported on

2015 2014 20131

2

3

4

5

6

7

8

9

10

11

12

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13

14

15

Duplicate page if necessary


ANNEXURE VIII

TEMPLATE FOR CV

CURRICULUM VITAE

Proposed role in the project: Manager / Team Leader / Auditor

1. Family name:

2. First names:

3. Date of birth:

4. Nationality:

6. Education:

Date from - date to

Institution: Degree(s) or Diploma(s) obtained:

7. Language skills: Indicate competence on a scale of 1 to 5 (1 - excellent; 5 - basic)

Language Reading Speaking Writing

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Mother Tongue

8. Membership of professional bodies and proof: 9. Other skills: 10. Present position:

11. Months within the firm:

12. Key qualifications:

13. Specific experience (other than accounting and auditing) in the region:

PROVINCE / DISTRICT Date from - Date to

Date from-

Date to

Location Company Position Description

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14. Professional experience:


ANNEXURE IX

DRAFT REVIEW PROCEDURES (“WIP”)The Review focus on three areas i.e. Financial Systems and AFS Disclosure Compliance SASAMS Administration

SECTION A: FINANCIAL SYSTEMS AND AFS DISCLOSURETest for completeness of the most recent audited AFS through review of the contents and confirm that the AFS contains the following information i.e. : NEW = changes to AFS format and content to be considered[a] Index to AFS[b] General Information page[c] Report by the School Governing Body[d] Balance Sheet or Statement of Position[e] Income Statement or Statement on Performance[f] Statement of Accounting Policies[g] Disclosure Notes, Cash Flow Statement subject to Accounting Framework adopted

Test for administrative standards through review of the AFS and confirm that : [a] All pages are duly numbered[b] All pages indicate the school name[c] All pages indicate the school's EMIS number[d] All pages record the correct financial year (reporting period)[e] The Report by the SGB is duly signed and dated.

Test the completeness and accuracy / validity of information on the "General Information" page and confirm

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that it indicates : New Document to be introduced[a] School Contact details[b] SGB Chair Person Contact details[c] Details of Registered Auditor or Independent Examiner[d] Enrollment statistics for the year (First week and Last week of school year)[e] SARS Registration numbers as "Employer" ( (PAYE; UIF; WCF) (if school pays any salaries, wages))[f] Bank Account Details[g] Municipal Account details[h] Department of Labour Registration number[i] The Quintile grading of the school

Review the AFS and confirm that:[a] All statements have comparative figures

[b] That the comparative figures agree to that of prior year, subject to adjustments required for change in Accounting Policies

[c] The format of the statements complies with the Directive issued by the EC Department of Education

[d]The Accounting Policy on Presentation of the AFS indicates that the Modified Cash Basis of Accounting is used as Accounting Framework.

Test the calculations on all pages and statements

Confirm the extent of use- and details of all cheque and saving account(s) through discussion and enquiryConfirm through inspection the existence of at least the following records and that they are available for examination purposes i.e.:[a] Revenue Cashbook[b] Expenditure Cashbook[c] Deposit Books (All used books / slips)[d] Cheque Books (Used and Unused)[e] Receipt Book[f] Petty Cash book[g] Monthly certified (and endorsed)PERSAL Payrolls[h] Salary (and Personnel) files for all employees paid directly by the school as Salaries, Stipends or Wages[i] Asset Register[j] Inventory Register (records)[k] Bank Statements[l] Bank Reconciliation Statements[m] Asset and Inventory Verification reports (year-end confirmation)[n] Loan agreements where applicable[o] Original Expenditure and payment vouchers [p] All monthly Local Authority billing accounts where applicable.[q] The General Ledger[r] The Trial Balance[s] The approved Budget for the year

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[t] The Journal book

Confirm through observation and Inspection that records are duly filed and safe-guarded against unauthorised access, water and fire damages.

REVENUE: Test the completeness of reported Income from the EC Department of Education : Norms and Standards Funding-[a] Against the annual allocation letter, relevant correspondence[b] Against the actual entry in the bank statement and cashbook

Test the completeness of reported Income from the EC Department of Education : National School Nutrition Programme-[a] Against the annual allocation letter, relevant correspondence[b] Against the actual entry in the bank statement and cashbook

Test the completeness and accuracy of reported Interest Received-[a] Against the monthly bank statements and entry in the cashbook

Test the completeness, accuracy and correct classification of any other reported revenue-[a] Against the actual entry in the bank statement and cashbook[b] Against the applicable and relevant correspondence e.g. Letter of Donation[c] Against appropriate records i.e. ticket sales etc. in cases of specific "Fund Raising" events and projects

Test the completeness of reported Income from the EC Department of Education : HIV and other funding (where applicable)[a] Against the annual allocation letter, relevant correspondence[b] Against the actual entry in the bank statement and cashbook

REVENUE: Subsidy received from the DoE – Conduct a Learner Head count and physical verification

EXPENDITURE PAYMENTS: Analyse the number and value of payments by cheque, electronic transfers and cash and obtain and consider the appropriateness of making cash payments.On a sample basis, match payment details to supporting evidence (Invoices)and confirm that :[a] Payment procured as per SCM policies and procedures (quotations)[b] Payment calculations are correct[c] Payment classification is correct, timeously recorded in the accounting records of the school.

[d]Payment is valid in terms of the relevant departmental directive(s) (Norms and Standards Funding, NSNP Funding, Own Revenue, Donations received, Fund Raising)

[e] Payment was duly authorised[f] There is adequate evidence that goods and services were rendered, received by the school[g] Scrutinise the list of remaining payments and identify and follow up on any possible incidents of non- compliance, irregular or invalid payments e.g. Loans, Donations etc.

BANK, CASH and INVESTMENTS: Confirm through inspection that each account is recorded in the general ledger and that all transactions for the year were recorded timeously and accurately.(Refer C1).Count all cash-on-hand and reconcile to the receipt book, Petty-Cash Book and obtain written explanations for

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shortages and surpluses.Confirm that the school is doing monthly Bank Reconciliations and test the December 2012 reconciliation for validity, accuracy. Follow up the reconciling items for clearance after year-end, and if not cleared, document the reason(s).

Make photo copies of the year-end statements and agree the balance to AFS disclosure (reconciliation).Test the cut-off procedures for revenue and expenditure (refer also test on accruals - payments after year-end) ensuring that all issued cheques are accounted for in the cashbook and cheque book (refer counterfoils).

“SCHOOL FUNDED” EMPLOYEE COSTS: Confirm the source(s) of funding as Directive specifically excludes Norms and Standards funding to be utilised.Select a sample of payments and confirm that:[a] Person was duly appointed in writing, setting out period, scale and responsibilities.

[b]Confirm extent of compliance with SARS requirements (School to register as Employer, PAYE, IUF, WCF deductions etc.)

[c] Confirm that there is adequate evidence that the required services were rendered.[d] Test calculations of payment[e] Tests correct classificationIf educator is still employed - confirm existence through physical inspection

FIXED ASSETS: Select a sample of payments (acquisitions) and confirm :[a] The acquisition is substantiated by invoices[b] The acquisition was procured in line with SCM regulations (3 Quotations)[c] The acquisition was duly authorised[d] The acquisition was duly classified and timeously recorded[e] The Asset Register was duly updated.[f] The nature of the asset is in line with the educational and/or administrative operations of the school [g] Confirm existence of the asset and confirm that asset is duly marked for identification purposes.Select a sample of assets and confirm through physical inspection that the asset exists and is accurately recorded in the Asset Register.Through discussion with management and inspection of records, confirm that all losses and disposal of assets were duly and timeously accounted for.Test the calculation in the register and agree to AFS.If a "Prior Year Adjustment" is required, test the completeness, validity and accuracy of the adjustment

INVENTORY: Select a sample of payments (acquisitions) and confirm :[a] The acquisition is substantiated by invoices[b] The acquisition was procured in line with SCM regulations (3 Quotations)[c] The acquisition was duly authorised[d] The acquisition was duly classified and timeously recorded[e] The Inventory Register (Records) was duly updated.[f] The nature of the inventory is in line with the educational and/or administrative operations of the school Select a sample of Inventory items and confirm through physical inspection that the items exists and is accurately recorded in the Inventory Register.Through discussion with management and inspection of records, confirm that all losses and disposal of Inventory were duly and timeously accounted for.

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Test the calculation in the register and agree to AFS.

ACCRUALS: Through discussion with management and inspection of payments after year end - confirm the completeness of disclosure of Accruals.Identify the Top 10 Service providers of the school (inclusive of Municipality and Eskom) and inspect the January 2017 Statements for balances as at end of 2016.Test the calculations of the listing and agree to AFS.

COMMITMENTS: Through discussion with management and your knowledge of payments, identify all projects rolling over/continuing into the next financial year that will require future financial expenditure and payments by the school (e.g. construction and maintenance contracts, rental leases etc.) and confirm the accuracy, validity and completeness of Commitments as disclosed in the AFS

CONTINGENT LIABILITIES: Through discussion with the Principal and SGB representatives, scrutiny of minutes of meetings, confirm if there are any claims against the school and/or department that have not been dealt with as an accrual or commitment e.g. Legal claims, claims for negligent conduct (for example serious medical conditions resulting from participating in a formal school event and confirm that the contingent liability has been duly disclosed in the AFS.

IRREGULAR EXPENDITURE AND LOSSES: Through discussion with management, scrutiny of payments and inspection of the general ledger (trial balance) confirm that the expenditure is classified as Irregular anddisclosed in the following specific categories of non-compliance i.e.[a] Contravention of S 36 (2) of SASA : granting of loans and overdraft agreements.[b] Contravention of Departmental Directive : granting of donations

[c]Contravention of SCM Framework (- correct number of quotations not obtained, acquisition not economical, efficient, effective and transparent)

[d] Payments made without supporting documentation presented for inspection purposes

Scrutinize the Annual Financial statements for the 2 preceding years and identify, calculate as an opening balance for Irregular Expenditure the extent of expenditureand/or losses relating to :[a] Loans granted[b] Donations granted[c] Losses and Theft

Discuss with management the extent to which loans and any other Irregular expenditure (current year and for 4 prior years) have been recovered, if any.Discuss with management and inspect the records and financial statements for all incidents of losses and theft and confirm that all losses were accurately disclosed in the financial statements and to what extent the incidents were investigated, reported to SAPS and the final conclusion of management.Confirm for any recovery relating to Irregular Expenditure and Losses (current year and preceding 4 years) have been deposited back into the accounts of the school or the provincial revenue fund and accounted for correctly in the annual financial statements.

RELATED PARTIES: Through discussion with management (Principal, SGB representatives), confirm and calculate the extent of which the school paid for goods and services acquired from staff members and/or their direct family (spouse, children, parents, brothers or sisters).

Confirm the completeness and accuracy of disclosure of these incidents in the annual financial statements. (By

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Rank with value)Confirm through discussions with management and inspection of supporting evidence the extent of prior disclosure by the staff member and subsequent approval by management to engage in such transactions with related parties.

SECTION B: COMPLIANCEBUDGET PROCESS: Confirm that the school compiled the annual budget and complied with the prescribed process as per SASAPAYROLL CERTIFICATION: Confirm status of pay point, appointment of Payroll Supervisor.

SECTION C: SASAMS ADMINISTRATIONSTATUS OF UPLOADING: Confirm through inspection on SASAMS what the most recent update is. Investigate if it is in arrears.LEARNER ID NUMBER ANOMALIES:

CERTIFICATE OF SUBMISSIONDEPARTMENT OF EDUCATION - EASTERN CAPE PROVINCE

PROJECT: REVIEW OF PFM and ADMINISTRATION STANDARDS AT SCHOOLS

PROJECT REFERENCE: RFI 16/17 - 0082

1. FOR OFFICIAL USE

REVIEW FOR COMPLETENESS OF SUBMISSION CONFIRMED REFERENCESigned Certificate of SubmissionSigned and duly completed Annexures I to VIISigned copy of CV for each person listed in Annexure IV Official’s SignatureCertified copies (4.2) for each person listed in Annexure IVService Provider Qualified i.t.o. SASA section 43

Any issue of non-compliance disqualifies the service provider from being considered for registration on the Database

2. SERVICE PROVIDER: DETAILS

Name of Service Provider

Contact Person - Name

Contact Person – Email Address

Contact Person – Mobile number

SASA section 43 compliance Professional Membership Body:

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HEAD Office - District

Head Office - Town

3. SERVICE PROVIDER: CONFIRMATION OF DOCUMENTS SUBMITTED

It is hereby certified that all required documents have been submitted, duly completed or certified.

Signature on behalf of Service Provider Date

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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 an advertised competitive bid, a limited bid, a proposal or written price quotation). 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 position 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 declaration 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.

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

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

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

2.4 Registration number of company, enterprise, close corporation, partnership agreement or trust: ………………………………………………………………………..………….……………………………….

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

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

2.6.1 The 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

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(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.

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

Presently employed by the state?

2.7.1 If 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:

………………………………………………………………

………………………………………………………………

………………………………………………………………

2.7.2 If you are presently employed by the state, did you obtain YES / NOthe appropriate authority to undertake remunerative

work outside employment in the public sector?

2.7.2.1 If yes, did you attach proof of such authority to the bid YES / NOdocument?

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

applicable, may result in the disqualification of the bid.

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

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…………………………………………………………………….

…………………………………………………………………….

…………………………………………………………………….

2.8 Did you or your spouse, or any of the company’s directors/ YES / NOtrustees / shareholders/ members or their spouses conduct

business with the state in the previous twelve months?

2.8.1 If so, furnish particulars:…………………………………………………………………..

…………………………………………………………………..

…………………………………………………………………...

2.9 Do you, or any person connected with the bidder, have YES / NOany relationship (family, friend, other) with a person

employed by the state 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.

………………………………………………………………

………………………………………………………………

………………………………………………………………

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

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of the company have any interest in any other related companies

whether or not they are bidding for this contract?

2.11.1 If so, furnish particulars:

…………………………………………………………………………….

…………………………………………………………………………….

……………………………………………………………………….

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

4 DECLARATION

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

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Full Name Identity Number Personal Income Tax Reference Number

State Employee Number / Persal Number

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 SHOULD THIS

DECLARATION PROVE TO BE FALSE.

………………………………….. ..……………………………………………

Signature Date

…………………………………. ………………………………………………

Position Name of bidder

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SBD 8

DECLARATION OF BIDDER’S PAST SUPPLY CHAIN MANAGEMENT PRACTICES

1 This Standard Bidding Document must form part of all bids invited.

2 It serves as a declaration to be used by institutions in ensuring that when goods and services are being procured, all reasonable steps are taken to combat the abuse of the supply chain management system.

3 The bid of any bidder may be disregarded if that bidder, or any of its directors have-

a. abused the institution’s supply chain management system;b. committed fraud or any other improper conduct in relation to such system; orc. failed to perform on any previous contract.

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

Item Question Yes No

4.1 Is the bidder or any of its directors listed on the National Treasury’s Database of Restricted Suppliers as companies or persons prohibited from doing business with the public sector?

(Companies or persons who are listed on this Database were informed in writing of this restriction by the Accounting Officer/Authority of the institution that imposed the restriction after the audialterampartem rule was applied).

The Database of Restricted Suppliers now resides on the National Treasury’s website(www.treasury.gov.za) and can be accessed by clicking on its link at the bottom of the home page.

Yes No

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4.1.1

If so, furnish particulars:

4.2 Is the bidder or any of its directors listed on the Register for Tender Defaulters in terms of section 29 of the Prevention and Combating of Corrupt Activities Act (No 12 of 2004)?

The Register for Tender Defaulters can be accessed on the National Treasury’s website (www.treasury.gov.za) by clicking on its link at the bottom of the home page.

Yes No

4.2.1


4.3 Was the bidder or any of its directors convicted by a court of law (including a court outside of the Republic of South Africa) for fraud or corruption during the past five years?

Yes No

4.3.1


4.4 Was any contract between the bidder and any organ of state terminated during the past five years on account of failure to perform on or comply with the contract?

Yes No

4.4.1


SBD 8

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CERTIFICATION

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

CERTIFY THAT THE INFORMATION FURNISHED ON THIS DECLARATION FORM IS TRUE AND CORRECT.

I ACCEPT THAT, IN ADDITION TO CANCELLATION OF A CONTRACT, ACTION MAY BE TAKEN AGAINST ME SHOULD THIS DECLARATION PROVE TO BE FALSE.

………………………………………... …………………………..

Signature Date

………………………………………. …………………………..

Position Name of BidderJs365bW

SBD 9

CERTIFICATE OF INDEPENDENT BID DETERMINATION

I, the undersigned, in submitting the accompanying bid:

________________________________________________________________________

(Bid Number and Description)

in response to the invitation for the bid made by:

______________________________________________________________________________

(Name of Institution)

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do hereby make the following statements that I certify to be true and complete in every respect:

I certify, on behalf of:_______________________________________________________that:

(Name of Bidder)

1. I have read and I understand the contents of this Certificate;

2. I understand that the accompanying bid will be disqualified if this Certificate is found not

to be true and complete in every respect;

3. I am authorized by the bidder to sign this Certificate, and to submit the accompanying

bid, on behalf of the bidder;

4. Each person whose signature appears on the accompanying bid has been authorized by

the bidder to determine the terms of, and to sign the bid, on behalf of the bidder;

5. For the purposes of this Certificate and the accompanying bid, I understand that the

word “competitor” shall include any individual or organization, other than the bidder,

whether or not affiliated with the bidder, who:

(a) Has been requested to submit a bid in response to this bid invitation;

(b) Could potentially submit a bid in response to this bid invitation, based on

their qualifications, abilities or experience; and

(c) Provides the same goods and services as the bidder and/or is in the

same line of business as the bidder

SBD 9

6. The bidder has arrived at the accompanying bid independently from, and without

consultation, communication, agreement or arrangement with any competitor. However

communication between partners in a joint venture or consortium³ will not be construed

as collusive bidding.

7. In particular, without limiting the generality of paragraphs 6 above, there has been no

consultation, communication, agreement or arrangement with any competitor regarding:

(a) prices;

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(b) geographical area where product or service will be rendered (market

allocation)

(c) methods, factors or formulas used to calculate prices;

(d) the intention or decision to submit or not to submit, a bid;

(e) the submission of a bid which does not meet the specifications and

conditions of the bid; or

(f) Bidding with the intention not to win the bid.

8. In addition, there have been no consultations, communications, agreements or

arrangements with any competitor regarding the quality, quantity, specifications and

conditions or delivery particulars of the products or services to which this bid invitation

relates.

9. The terms of the accompanying bid have not been, and will not be, disclosed by the

bidder, directly or indirectly, to any competitor, prior to the date and time of the official

bid opening or of the awarding of the contract.

³ Joint venture or Consortium 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.

SBD 910. I am aware that, in addition and without prejudice to any other remedy provided to

combat any restrictive practices related to bids and contracts, bids that are suspicious

will be reported to the Competition Commission for investigation and possible imposition

of administrative penalties in terms of section 59 of the Competition Act No 89 of 1998

and or may be reported to the National Prosecuting Authority (NPA) for criminal

investigation and or may be restricted from conducting business with the public sector

for a period not exceeding ten (10) years in terms of the Prevention and Combating of

Corrupt Activities Act No 12 of 2004 or any other applicable legislation.

………………………………………………… …………………………………

Signature Date

…………………………………………………. …………………………………

Position Name of Bidder

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