Anbesabank.com



TERMS OF REFERENCE FOR UNDERTAKING EXAMINATION OF THE BANK’S BOOKS OF ACCOUNTS FOR THE FISCAL YEARS FROM 2018/19 TO 2020/21.PART- IBACKGROUND INFORMATIONLion international Bank S.C is a privately owned Commercial Bank established on October 2006 in accordance with the Proclamation No. 84/1994 and the commercial code of Ethiopia. It started operation on January 6th 2007 and is now one of the sixteen private banks that have emerged in Ethiopia since 1994. At present, the Bank owns more than 200 branches (including Head Office, IBD & Regional Office) of which 62 are in the Capital City and the remaining ones in different cities and towns of the country. The Head Office is located at Lex Plaza Building on Haile Gebreselassie Avenue. Lion International Bank offers domestic and international banking services such as mobilizing deposits, providing varieties of credit facilities, letters of credit services (LC and LG), foreign exchange facilities, local and international money transfers, card payments, mobile & agent banking services etc. The Bank implemented integrated core banking system (CBS) starting from February 16, 2009 and the Bank is continuing its tremendous move in different technologies and systems in relation to the banking operations. Vision and Mission The Bank’s vision is “To be the Leading Bank in Ethiopia by 2035”. The Bank’s Mission statement is “In as much as we are committed for the shareholders’ value, we care for the satisfaction of the public’s, customers’, and employees’ needs through service excellence, innovation, passionately focused team, sustainable practice, and providing diversified banking services to our patrons globally.”It’s Motto is “LIB KEY TO SUCCESS”The Bank has always taken the extra step to attain its goal of becoming one of the top performing banks in the country in terms of quality service, market share and long-term profitability. It wants to achieve this through effective and persistent control mechanism. In this dynamic world of today, changes are taking place constantly and rigorously. What matters most is to adjust to these changes or adapt oneself to the new conditions. In order to cope up with to the prevailing competition on the ground and to like up to the best interest of its shareholders and customers, the external audit firm is expected to examine the financial statements of the Bank based on its merits and strategies. ValuesIntegrityTeamworkDiversitySocial ResponsibilityInnovation & Learning OrganizationCustomer satisfaction Employee SatisfactionObjective of AuditThe objective of the audit of LIB’s financial statements is to enable the auditors to express an independent professional opinion on the financial position of LIB and to ensure that the LIB’s activities have been used for their intended purposes. The books of accounts of LIB provide the basis for preparation of the LIB’s Financial Statements. Proper books of accounts as required by law have been maintained by LIB and also maintain adequate internal controls and supporting documentation for the transactions. Scope of the AuditThe audit will be carried out in accordance with the International Auditing Standards, International Financial Reporting Standards /IFRS/ & the existing Practice including the Commercial Code of Ethiopian & the GAAP ,and will include tests and verification procedures as the auditors deem necessary. Verify all resources have been used in accordance with the established rules and regulations of LIB. Goods, works and services financed have been procured in accordance with the LIB established rules and procedures. Appropriate supporting documents, records and books of accounts relating to all activities have been kept. Clear linkages should exist between the books of accounts and the financial statements presented to. The financial statements have been prepared by LIB management in accordance with applicable accounting standards and give a true and fair view of the financial position of LIB and of its receipts and expenditures for the period ended on that date. Comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions. Express an opinion as to reasonableness of the financial statements in all material respects. Include in their reports opinion on compliance with procedures designed to provide reasonable assurance of detecting misstatements due to errors or fraud that are material in the financial statements. Conduct entry and exit meeting with the CEO of LIB. In addition to the audit report, the auditors will prepare a Management Letter on the following: Give comments and observations on the accounting records, procedures, systems and controls that were examined during the course of the audit. Identify specific deficiencies and areas of weakness in systems and controls and make recommendations for improvement. Report on the implementation status of recommendations pertaining to previous period audit reports. Communicate matters that have come to their attention during the audit which might have a significant impact on the sustainability of the organization.Bring to the Executive Director’s attention any other matters that the auditors consider pertinent. Audit DurationThe audit work shall be completed within 3-4 (Four) months from the date of commencement of the audit. Deliverables The Auditors on completion of the audit work will submit 5 (five) original copies of the Audit Report appended to the Financial Statements along with the reports to the attention of the CEO. Namely,General Financial Statements as per IFRSFinancial Statements as per existing practice (the “Ethiopian GAAP”)Tax ReturnsManagement letter in accordance with the scope of work described here before. PART-IITERMS OF REFERENCE2.1. Duties and responsibilities of the Audit FirmThe indigenous external auditing firm is expected to perform at least the following specific duties by means of going through test and substantive tests as per IFRS and the existing accounting practice, commercial code and other laws prevailing in our country , but not limited to;Operations/AccountsCredit OperationsLoan and Advances Non-Performing Loans /NPL/ Management GuaranteesMargin facilitiesProvisions on Loans and AdvancesUnearned Revenue on LGs and LCsDomestic Banking Operations Cash operationsCustomer DepositsCurrent or Checking AccountsResidentsNon-ResidentsSavings account operation Individual saving accountProvident fundMinor accountsSpecial Saving AccountsTime deposits accountsCertificates of DepositsAccrued Interest PayableLocal transfers Automated Fund Transfers Manual TransfersOthers Operations/AccountsReceivablesPayablesIncomeExpensesForeign Banking operationsImport transactionsLetter of Credit [LC]Inward Bills for collection (IBC)Foreign Guarantees Export transactionsAdvance on export bills Outward documentary bills purchased (ODBP)Outward documentary bills for collection (ODBC)FCY Customer AccountsNR – Foreign currency A/CDiaspora FCY A/CRetention – A & B FCY A/CFixed Time Deposit A/CEnterprise A/CTransfers Incoming telegram transfers (ITT)Outgoing telegram transfers (OTT)International money transfers (MTOs)Foreign cash notes purchased & soldDeposits and Withdrawals to/from FCY accountsIssuance of travelers’ chequesCorrespondent bank accountsInvestmentsLocalForeignShare Administration operationShare TransfersShare salesDividendsTangible and Intangible AssetsProperty, plant and equipmentIntangible assetsAcquired propertiesDepreciationAmortizationDisposalDe-recognitionTaxesProfit Tax-CurrentProfit Tax-DeferredOff-balance sheet items Contingent LiabilitiesContingent AssetsLegal CasesMemorandum accountsApplicable Financial standardsFinancial Instruments Standards: IAS 32, IAS 39, IFRS 7 & IFRS 9Financial AssetsFinancial LiabilitiesEquity InstrumentsValuation/re-measurementImpairmentsRecognition, De-recognition, Measurement, Presentation and Disclosure Revenue from contract with customers Standards: IAS 18 & IFRS 15Revenues recognition in line with the ERCA Revenue Commissions related to LG and LCCost of Loans vs Revenue OCI in contrast with revenue recognition Recognition, De-recognition, Measurement, Presentation and Disclosure Valuation/re-measurementThe effects of change in Foreign Currency Standards: IAS 21Currencies: Functional, Presentation Currency and Reporting Currencies Exchange Rate: spot, closing, buying, selling and mid-rateGain/Loss on RevaluationConversion gains and losses Recognition of exchange difference Profit/Loss (PL) vs Other Comprehensive Income (OCI)Recognition, De-recognition, Measurement, Presentation and Disclosure Presentation of Financial statements Standards: IAS 1The changes comes with the required international standards in Title, Naming, layout, and formatsThe challenges to comply with the standards The timeline to present the draft and the final reportA statement of financial position as at the end of the period.A statement of profit and loss and other comprehensive income for the period. Other Comprehensive Income (OCI)Combined statement of P&L and OCI or two separate statements.A statement of changes in equity for the period.A statement of cash flows for the period.Notes, comprising a summary of significant accounting policies and other explanatory information like professional judgments, cost-benefit and materiality and so on.Recognition, De-recognition, Measurement, Presentation and Disclosure Income Tax Standards: IAS 12Deferred tax recognitionThe Tax Returns/report for ERCA The new tax laws Accounting Profit Taxable Profit (Tax loss)Tax Expense (Tax income)Current Tax and Deferred TaxRecognition, De-recognition, Measurement, Presentation and Disclosure Leases Standards: IAS 17 & IFRS 16Finance and Operating Leases treatment Recognition, De-recognition, Measurement, Presentation and Disclosure Lease hold property recognition and reporting Lease hold Land treatments Existing finance leases: continue to be treated as finance leases.Existing operating leases: option for full or limited retrospective restatement to reflect the requirements of IFRS 16.Employee’s Benefits Standards: IAS 19 Actuarial valuation on the following items (if applicable):Short term employee’s benefits Other long term employee’s benefits Post-employment benefitsTermination benefits Defined contribution planDefined Benefit PlanRecognition of a liability when an employee has serve in exchange for employees benefits to be paid in the future; andRecognition of an expense when the entity consumes the economic benefit arising from the service provided by an employee in exchange for employee benefits.Recognition, De-recognition, Measurement, Presentation and Disclosure Intangible Assets Standards: IAS 38External vs Internally Developed SoftwareMeasurement of Cost of asset Useful lifeAmortization RatesResidual ValueRecognition, De-recognition, Measurement, Presentation and Disclosure Investment Property Standards; IAS 40Land or a building or part of a building or bothOwner Occupied Property Constructed Property Recognition, De-recognition, Measurement, Presentation and Disclosure Property Plant and Equipment Standards: IAS 16Asset categorization and class, like Plant, Property, Equipment, stock, acquired property and so onRecognition in related to useful life or DeprecationDeprecation start onUseful lifeDepreciation RatesResidual ValueImpairment of PPE Disclosure and reporting format Effects of both reports for ERCA and IFRS requirements About assets held on stock and moved to PPE Defining Cost, Residual Value, Entity specific Value ,etcRecognition, De-recognition, Measurement, Presentation and DisclosureNon-current Assets held for sale or Discontinued operations Standards: IFRS 5Segregation method to be followed Valuation Challenges with Audit validation Disposal Group and Cash-generating Unit classification Process to be followed for selling those assets Measurement of assets held for sale; cost of disposal, Fair value, Recoverable amount and value in useThird party asset (consignment) Recognition Recognition, De-recognition, Measurement, Presentation and Disclosure Impairments of Non-current assets Standards: IAS 36Impairment computation challenges Identifying Potential Impaired Asset Internal source of Information External source of information Recognition, De-recognition, Measurement, Presentation and Disclosure Inventories Standards: IAS 2Cost vs Market Value Net realizable value Fixed Asset in Stock Fixed Assets in stock (ready and/or available for use)Other stock items Recognition, De-recognition, Measurement, Presentation and Disclosure Share Based Payments Standards: IFRS 2Share based payment compared with Law of the LandModifications, cancellations, and settlementsRecognition, De-recognition, Measurement, Presentation and Disclosure Provisions ,Contingent Assets and Liability’s Standards: IAS 37Provision rate validation Legal case provisions Recognition, De-recognition, Measurement, Presentation and Disclosure Change in Provisions Related Party Standards: IAS 24 An entity is related to a reporting entityA person or a close member of that person's family is related to a reporting entityRelationships between parents and subsidiariesInvestee companies Related party transactionsManagement compensationExecutive and Non-Executive ManagersShareholders as per NBE Directives Recognition, De-recognition, Measurement, Presentation and Disclosure Event after the Reporting PeriodStandards: IAS 10Adjusting EventsEvents not requiring adjustmentGoing concern issues arising after end of the reporting periodRecognition, De-recognition, Measurement, Presentation and Disclosure Accounting Policies, Changes in Accounting Estimates and ErrorsStandards: IAS 8Accounting policiesA change in accounting estimateInternational Financial Reporting StandardsMaterialityPrior period errorsRecognition, De-recognition, Measurement, Presentation and Disclosure Interim Financial ReportingStandards: IAS 34Interim Period Interim financial ReportMatters left to local regulatorsMinimum Contents of an interim financial ReportDisclosures Focus AreasThe Audit examination should focus as of June 2019, 2020 and 2021 end quantitative performance indicators such as,Adequacy of Capital Quality of Bank’s AssetsQuality of EarningsPosition of Liquidity Qualitative review of banking operating policies and procedures, activities of management information, internal control and human resources To assess collectability of the Bank’s loans and advances portfolio and other receivables including adequacy of collateral security,Confirmation of all significant cash and bank balances and verification of physical existence against fixed asset records, Review risk assessment work on fraud and error, and compliance with regulations, Review of the accounting and reporting responsibilities and compliance with proclamations, national bank of Ethiopia (NBE) directives and various manuals of the bank which are to be used as basic guidelines in addition to others, Review of the system of internal and accounting controls, and evaluation thereof, Conduct assessment using internal questionnaires to identify key areas of control,Substantive test vouching of transactions involving landing, deposits, treasury, settlement of money transfer, trade finance, fiduciary and overheads, Checking of provisions and reserves and dividends to be paid.Analytical review of accounts, Confirmation of significant debtor and creditor balances, A thorough checking of foreign transactions (export, import) where applicable, The above is not an exhaustive list and therefore the firm is expected to cover other functions that deem necessary.Qualification & Experience of the Audit firmThe Audit firm should present at least from five (5) credential indicating experience in audit of banking or similar financial institutions. The Audit firm is required to assign well-qualified, experienced, and competent experts in the field of auditing, accounting, banking, and finance in order to undertake the auditing function in accordance with technical proposal for the provision of audit services to the bank.Bid Specification Interested Audit firms, who desire to take part in the tender for audit engagement, need to: Provide an evidence for their eligibility from the Ethiopian Accounting and Auditing Board (EAAB),Incorporate as partner by at least two certified Auditors and have experience in auditing Public entities especially banks, Have a wide range of experiences of auditing financial institutions especially, commercial banks,(>= 5 credentials) Have qualified audit team, Indicate the time span required to complete the job of auditing the accounts of the bank, Quote the amount of their audit fee,State the kind and extent of pre- and post-audit consultancy service they are willing to provide to the Bank,Declare the manner, the Methodologies and the work plan to following auditing the Book of accounts of the Bank,Submit the profile of their respective audit firms,Produce certificate from the Federal general Auditors Office Auditing Board of Ethiopia about the registration they were given by the auditor General. Submit evidences of payment of all current government taxes Assignment of the Team The firm should ensure that members of the audit team to be assigned to the Bank do not participate in other similar mission/activities simultaneously during the period of examination. Commencement date The audit task should commence in a reasonable time.Duration of the Appointment The appointment is expected to be for a period of three consecutive years (from 2018/2019 to 2020/2021).Duty Station The duty station will be in Addis Ababa and in selective outlying branches of the Bank, where the Bank branches/offices are located.Language All reports and correspondences are expected to be in the English Language and in Amharic (if required).Expected ResultsThe final audited financial statements shall be submitted in hard copies and in soft copies.Report Submission Date The draft and final reports should be submitted not later than August 15 to August 30 of the respective fiscal year respectively.License The audit firm is expected to submit a copy of renewed license valid for the respective budget year of the audit engagement.ContactsFor the purposes of this proposal Director-Finance Department or Manager-Property & General Service of the Bank (at the 4th floor of the Head Quarter) could be contacted. Bid ProposalsTechnical and financial proposals are required. Each should be sealed separately and four copies (original & copy) shall be deposited in the tender box at the Head Office. PART - IIIBID DOCUMENTGeneralLion International Bank S.C hereinafter referred to as the “Bank”, will select a consultant hereinafter referred to as the “Bidder”, from among those responding to this TOR.Bidders are invited to submit Technical and Financial proposal in separate envelopes on the basis of respective formats and information specified in this document. The proposals will be the basis required for contract negotiations and ultimately for signing the contract with the selected Bidder.The Bank reserves the right to accept or reject any bid, and to amend the bidding process and reject all bids at any time prior to award of contract without thereby incurring any liability to the affected Bidders on the grounds of the Bank’s action.The Bank’s policy requires that Bidders provide professional, objective and impartial study while holding the interest of the stakeholders, the Bank and that of the employees.The Bank will reject a proposal for award if it determines that the Bidder recommended for award has engaged in corrupt or fraudulent practice in competing for the contract in question.The Bidder is expected to examine carefully all instructions, conditions, forms, terms etc. in the bidding document. Failure to furnish all information required or submission of a bid not substantially responsible to the requirements of the bidding documents will be at the Bidder’s risk and may result in the rejection of its bid. For the purpose of these clauses, a substantially responsive bid is one that conforms to all terms and conditions set in all of the bidding documents without material deviations.The time allowed to complete the assignment is three (3-4) months.Eligible BiddersThis invitation for bid is open to all local Auditors, which are registered by the responsible government organ and have appropriate, professional and business license currently renewed.Cost of BiddingThe Bidder shall bear all costs associated with the preparation and submission of its bid, and the Bank will in no case be responsible or liable for those costs, regardless of the outcome of the bidding process.Clarification of Bidding DocumentProspective Bidders requiring any clarification of the bidding documents may request a clarification on any of the TOR up to 7 days before the dead-line for submission of the proposal. Any request for clarification must be sent in writing, by mail or fax. The Bank shall respond in writing to any request for clarification of the bidding documents, which it receives not later than 2 days prior to the deadline for the submission of the bids. Written copies of the response (including explanation of the inquiry but without identifying the source of inquiry) will be sent to all Bidders who purchased the bid documents.Amendment of Bidding DocumentAt any time before the deadline for the submission of the proposal, the Bank may, for any reason, whether on its own initiative or in response to the clarification requested by a Bidder, modify the bidding documents by amendments.Any amendment shall be issued in writing through addenda to all prospective Bidders. Addenda shall be sent by mail, or fax to all Bidders who have purchased the bidding document.In order to provide prospective Bidders reasonable time in which to take the amendment into account in preparing their bids, the Bank may, at its discretion, extend the deadline for the submission of bids.Language of the BidThe bid to be prepared by the Bidder and all correspondences and documents relating to the bid to be exchanged by the Bidder and the Bank shall be written in the English Language.Documents Comprising the BidThe bid to be submitted by the Bidder shall comprise the following components:Documentary evidence attesting that the Bidder is eligible to the bid and is qualified to perform the contract if the bid is accepted.Technical Proposal using the Standard Submission FormatFinancial Proposal using the Standard Submission FormatBid Bond;Preparation of Technical ProposalIn preparing the Technical Proposal, Bidders are expected to examine the documents constituting the TOR in detail and abide by the requirements there of.Material deficiencies in providing the information requested may result in rejection of the proposal.While preparing the proposal Bidders must give attention to the following: It is desirable that the majority of the key audit team members proposed are permanent employees of the Bidder’s organization or should have an extended and stable working relationship with it.The proposed study team members must, at minimum, be B.A. holders in relevant field and have adequate experience. Attachment of all supportive documents and certification from employees is a requirement. Alternative personnel shall not be proposed.The Technical Proposal shall, at a minimum provide the following information:Provide a description of the Bidder’s organization including an outline of the organization’s recent experience on assignments of work of similar nature.Provide the profile of each of the Audit team members including an outline of the members recent experience indicating the duration of involvement on assignment of work of similar natureComments or suggestions on the TORProvide a detailed description of the methodology and work plan by which the Bidder will provide an outline for the TORProvide CV’S recently signed by each of the proposed audit team members and the authorized representative submitting the proposal. Key information should include number of years working for the Bidder/firm and degree of responsibility held in various position of the audit team and the task to be assigned to each member with the duration of stay of each member.Provide copy of registration certificate by the responsible government organ and currently renewed business license.The Technical proposal should not include financial information.Preparation on Financial ProposalIn preparing the financial proposal, Bidders are expected to take into account the requirements and conditions outlined in the Bidding Document. The financial proposal expressed in “Birr” should list all costs associated with the study.Documents Establishing Bidders Eligibility and QualificationThe Bidder shall furnish, as part of its bid, documents establishing the Bidder’s eligibility to bid and its qualifications to perform the contract if the bid is accepted. Bidders should provide statements outlining the reasons that they feel they have the technical capability to carry out the contract and details of the qualifications and names of the members that they will employ if they are awarded the contract.Bidders should provide certificates or references of successful performance of assignment of similar nature and magnitude from at least their five previous clients.Bid SecurityThe Bidder shall furnish, as part of its bid, bid bond guarantee of Birr 50,000.00 in favor of the Bank.The bid bond is required to protect the Bank against the risk of Bidder’s conduct which would warrant the bond’s forfeiture.Form of the bid bond shall be in one of the following forms.A bank guaranty valid for 120 days (30 days beyond the validity date of the bid); or Cashier payment Order (CPO)Any bid not secured in accordance with 3.11.1 and the Bank as non-responsive will reject. Unsuccessful Bidder’s bid bond will be discharged/returned as promptly as possible but not later than 30 days after the expiration of the period of bid validity prescribed by the Bank.The successful Bidder’s bid bond will be discharged upon the Bidders signing the contract and furnishing the performance bond.The bid bond may be forfeited:If a Bidder withdraws its bid during the period of bid validity specified by the Bidder on the bid form orIn the case of successful Bidder, if the Bidder fails:To sign the contract; orTo furnish performance bondPeriod of Validity of BidsBids shall remain valid for period of 90 days after the bid opening date prescribed by the Bank. A bid valid for a shorter period shall be rejected by the Bank as non-responsive.In exceptional circumstances, the Bank may solicit the Bidder’s consent to the extension of the period of validity. The request and the response there-to shall be made in writing. A Bidder may refuse the request without forfeiting its bid bond. A Bidder granting the request will not be required nor permitted to modify its bid but will be required to extend the validity of its bid bond correspondingly. The provisions regarding discharge and forfeiture of bid bond shall continue to apply during the extended period of bid validity.Format and Signing of BidsThe Bidder shall prepare one original and one copy of the Bid/proposal clearly marked as appropriate “ORIGINAL BID AND COPY OF BID”. In the event of any discrepancy between the original shall govern.The ORIGINAL and the COPIES of the bid shall be typed or written in indelible ink and shall be signed and sealed by the Bidder. The latter’s authorization shall be indicated by a written power-of attorney accompanying the bid. The Bidder or persons signing the bid shall initial all pages of the bid, except the un-amended printed literature. Failure of which will result in an automatic rejection of the bid.Any erasures or overwriting shall be valid only if the person signing the bid initials them. Sealing and Marking of BidsThe Bidder shall seal and place the original and copy of the bid marked ‘ORIGINAL’ and ‘COPY’ in separate envelopes. The original and copies of the Technical Proposal’, and the original and cop of the Financial Proposal in a separate envelopes and put in one sealed envelope clearly marked ‘Financial Proposal’ and warning: ‘DO NOT OPEN THE TECHNICAL PROPOSAL’ BEFOR August 22,2018. The Bid Bond is separately placed in separately sealed envelope clearly marked Bid security.All the envelopes shall be placed into an outer envelope and sealed. This outer envelope shall bear the submission address and clearly marked ‘DO NOT OPEN, EXCEPT on the Bid opening time.’The inner and the outer envelopes shall:Be addressed to the Bank at the following address:Property and General Service Division P.O.Box 27026 code 1000Addis Ababa, EthiopiaBear ‘TENDER DOCUMENT FOR UNDERTAKING EXAMINATION OF THE BANK’S BOOKS OF ACCOUNTS OF LION INTERNATIONAL BANK S.C FOR THE FISCAL YEARS, FROM 2018/19 TO 2020/21’ Tender ref. No. LIB/NCB/003/2018-19 and the words’ ”DO NOT OPEN before: August 22, 2018.” In addition, the inner envelope shall indicate the name and address of the Bidder to enable the bid to be returned unopened in case it is declared ‘late’.If the outer envelope is not sealed and marked as mentioned above, the Bank shall have no responsibility for the bid’s misplacement.The Bidder is required to deliver the sealed envelope to the office of Property & General Service Division.Deadline for Submission of BidsBids must be submitted by the Bidder at the address specified above no later than August 22, 2018 at 10:00 AM. The Bank may, at its discretion, extend this deadline for submission of bids by amending the Bidding Documents in which case all rights and obligations of the Bank and the Bidder previously subject to the deadline as extended, and the period of validity of bid date shall be adjusted accordingly.Late BidsAny bid received by the Bank after the deadline for submission of bids, prescribed by the Bank, will be rejected and/or returned unopened to the Bidder.Modifications and Withdrawal of BidsThe Bidder may modify or withdraw its bid after the bid’s submission, provided that written notice of the modification or withdrawal is received by the Bank prior to the deadline prescribed for the submission of bids. The Bidder’s modification or withdrawal notice shall be prepared, sealed, marked and dispatched. A withdrawal notice may be sent in writing through fax but followed by signed confirmation copy, post marked not later than the deadline for the submission of bids. No bid may be withdrawn in the interval between the deadline for the submission of the bid and the expiration of the period of bid validity specified by the Bidder. Withdrawal of the bid during the interval may result in the forfeiture of its bid bond.Opening of BidThe Bid Evaluation Committee will open the technical proposal bids August 22, 2018 at 10:30 AM. At the Conference Room of the Bank located at its Head Office and to be signed by committee members.The opening date of the financial Proposal shall be announced in due course for Bidders who will be successful in the technical evaluation. Thus, the financial proposals shall remain sealed and deposited with the Bank until they are opened publicly.The Bidders or their representatives who are present shall sign a register evidencing their attendance.The minutes of the bid opening will be prepared and signed by Committee members.Clarification of BidsDuring the evaluation of the bids the Bank may, at its discretion, ask the Bidders for clarification of its bids. The request for clarification and the response shall be in writing and no change in the price or substance of the bid offered is permitted.Preliminary Evaluation The Bank will examine the bids in terms of whether they are complete, the documents are properly signed and stamped, and the bids are generally in order as per the TOR. The Bank may waive any minor non -conformity or irregularity in a bid that does not constitute a material deviation, provided such waiver does not prejudice or affect the relative ranking of any Bidder.Evaluation Criteria and Selection DecisionEvaluation committee appointed by the Bank evaluates the proposals on the basis of their responsiveness to the TOR, applying the evaluation criteria and sub criteria.Two stage procedures will be followed in evaluating the Bids, i.e. technical and financial evaluations.Evaluators of Technical Proposals shall not have access to the financial proposal until the Technical evaluation is concluded and accepted by the Policy Committee of the Bank.The points to be given to the technical proposal and to the financial proposals will be:Evaluation factorPointsTechnical Proposal70 pointsFinancial Proposal30 pointsTotal100 pointsThe Evaluation of the proposal will be conducted on the basis of its responsiveness to the RFP, applying the evaluation criteria, and points system specified in the data sheet.The evaluation of the proposal will be conducted on the basis of its responsiveness to the TOR.The minimum required technical score to qualify as a successful bidder is 80% (56 point) out of the technical weight (70). Criteria for Technical Proposal EvaluationAll responsive proposals will be evaluated in accordance with the criteria set herein. The main criteria to be used for evaluating the Technical Proposal are the following:The criteria established is given as per below table:S.N.CategoryCriteria for markingMarks1Professional team assignmentTotal no. of Professional staffs (10 Mark)Nature and extent of partners and managers participation>= One manager is demanded and the manager should be the partner (5 Mark)The Audit Partner/Manager – should have greater than 5 years experience as a manager in audit service (5 Mark)Bidder offer greater total number of regular staff score the allocated (5 Mark) Others: will score proportional Mark.20Bidder full fill the minimum requirement should score 5 Marks bidder who have not full fill the minimum requirement score 0 5-10 years = 3 Mark11-15 years = 4 MarkGreater than 15 years = 5 MarkBelow 5 year = score 0 2Number of partners or Team member experience( accompanied by brief CV's) (20 MarksSpecialized auditor assignment in the interim and final phase >=5 ACCA qualified with at least 3 years experience (10 Mark)Total number of audit team planned to participate in the audit task members without partners at least 5 members of the team have BA and 2 years related experience (10 Mark)Bidder offer above the required staff and experience, proportional Mark will be given. Bidder who offer below the minimum requirement score (0 Mark) 203Proposed MethodologyTime allocation Expected time allocation 3-4 monthsAudit planning phase and other planed activities i.e. encompass on audit methodology and audit programAreas covered by audit firm is demanded at least 40% branches while excluding IBD and Head Office It is Mandatory and also bidders should state clearly.54Advice on the internal control process (10 Mark)Related to fraud elimination, efficiency of operations, risk reduction. Compliance IFRS, management policies and tax requirements. It is Mandatory and also bidders should state clearly.55Experience of audits and related services of similar assignments (20 Mark)Audit of Experience on related assignment: (>= 5 Bank and financial institutions ) at least one Bank in last 3 yearsBidders who offer above the minimum criteria will score proportional point/Mark Bidder who offer below the minimum criteria will score 0 mark20Total 70Opening and Evaluation of Financial ProposalThe Bank shall reject the Bidder who would not comply with technical evaluation requirement. Their financial proposal will be retuned unopened. The Bank shall notify those Bidders that have met the minimum technical requirements indicating the date and time set for the opening of Financial Proposal. The Bank shall send the notification by registered letter of fax. The financial proposals shall be opened publicly in the presence of the Bidders or duly authorized representative who would choose to attend. The name of the Bidder and the representative, the scores of the technical evaluation obtained and the proposed prices shall be read loudly and recorded when the financial proposal is opened. The Evaluation Committee of the Bank shall take the minutes of the public opening.The evaluation committee will then review the Financial Proposal and allocate points:The Formula for determining the financial score is the following:Fs= 100 x Fm/F, in whichFs- The financial score;Fm- The minimum financial proposal;F- The price of the proposal of the Bidder under consideration.Declaring the Winner of the BidThe Bidder who has scored the highest total score (Technical + Financial) will be declared a winner.Prior to the expiration of the period of bid validity, the Bank will notify the successful Bidder in writing by registered mail that its bid has been accepted.Negotiations The Bank shall invite the winner of the Bid for negotiations, which will be held at the address indicated in this document. Negotiations shall include discussions on items of the Technical Proposals and any suggestion made by the Bidder. The Bank and the Bidder will then work out a final TOR and work plan. The agreed work plan and the final TOR will then be incorporated in the ‘description of the service’ as part of the contract. The Bank will require assurance that the experts will be actually available. The Bank will not consider substitution unless both parties agree that events beyond the control of Bidder and the Bank make such substitution unavoidable or that such substitutions are critical to meet the objectives of the assignment. If that is not the case, and if it is established that key study members were offered without confirming their availability, the Bidder may be disqualified. The key staff proposed for substitution shall have the qualification/experience equal or better than those to be substituted. To complete negotiations the Bank and the Bidder initial the agreed contract. If negotiations fail, the Bank may invite the Bidder whose proposal received the second highest score to negotiate a contract.Award of Contract The contract shall be awarded following the contract negotiation. After contract negotiations the Bank will notify other Bidders that are not selected. The Bidder is expected to commence the assignment on the 7th day after signing of contract. Information related to the evaluation of the proposal and recommendations concerning awards shall not be disclosed to the Bidders who submitted the proposals or to other persons not officially concerned with process until the successful Bidder has been notified that it has been awarded the contract.Performance BondWithin 7 days of the receipt of notification of award from the Bank, the successful Bidder shall furnish performance bond of 10% of its offer in a performance bond form.Failure of the successful Bidder to comply with the requirement of article 3.26 or 3.27.1 above shall constitute sufficient grounds for the annulment of the award and forfeiture of the bid bond in which event the Bank may make the award to the next lowest evaluated Bidder or call for new bids.PART - IVBID FORMATS4.1. Technical Proposal FormatTechnical Proposal Submission Form(Location, date)To: LION INTERNATIONAL BANK S.C, P. O. Box 27026 code 1000 Addis Ababa, EthiopiaWe, the undersigned, offer to provide the Auditing service for the examination of the books of accounts of lion international bank s.c and forward proposal in accordance with the request for proposal dated September 02/, 2015 issued by the Bank. We are hereby submitting our proposal, which includes this Technical Proposal and the Financial Proposal sealed under separate envelopes.If negotiations are held during the period of validity of the proposal, i.e. before -------- (date) we undertake the negotiation on the basis of the proposed staff. Our proposal is binding upon us.We understand you are not bound to accept any proposal you receive.Yours sincerely,Authorized signature:Name and Title of Signatory,Name of the Bidder:Address:Bidders ExperienceThe Bidder is required to provide a detailed description including but not limited to the following along with their relevant supportive evidences for the most recent five studies undertaken.Audit (Assignment) NameNarrative Description of the Study:Country:Location within Country:Name of Senior Accountants Provided by Your Firm/Entity (Profile):Audit (Assignment) NameNarrative Description of the Service:Name of Client Served:Name of Associate Auditor If any:Address of the Client Served: Comments and suggestions by the Bidder on the terms of reference if any:________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Methodology of the ExaminationThe Audit firms are expected to employ professionally acceptable methodologies for the examination of the books of accounts of lion international bank s.c that best serve the purpose of the service.Format of curriculum vitae (C.V) for proposed audit teamStart Date of the Service Month____ Year______Completion Date of the Service Month______ Year_____Approximate value of the Service in Birr.IdentificationProposed Position: Name of Bidder: Name of Staff: Position & Profession:Date of Birth: Years with the Firm/Entity:Membership in Professional Societies: Nationality: Detailed Tasks Assigned: Tin NumberKey QualificationsGive an outline of the Audit team experience and training most pertinent to the tasks on the assignment. Describe degree of responsibility held by the member on relevant previous assignments and give dates.EducationSummarize College/University and other specialized education of the team member, giving name of school (s), date attended and degree obtained.Employment RecordStarting with present position, list in reverse order every employment held. List all positions held by the proposed member since graduation, giving dates, name of employing organizations, titles or positions held and location of assignments. CertificationI, the undersigned, certify that to the best of my knowledge and belief, this data correctly describes my qualifications and my experience. (Signature of the study member and authorized representative of the firm)Full name of the member: Full name of authorized representative:Date Detailed Plan of the serviceThe Bidder is required to submit, a detailed work plan based on the Terms of Reference, objectives, scope and deliverables for each one of the key areas that must be addressed in the Bidders work plan. The work plans should be supported with Gant Charts with anticipated milestones clearly listed and described.Work Plan/Time ScheduleKey Areas of StudyComponentsAchievement Milestones (Weeks)123456789101112Completion and Submission of ReportsReportsDate1. Inception Report2. Preliminary draft findings for each area of the Audit service3. Draft Final Report4. Final ReportTeam Compositions and Task Assignment (5 is the Minimum Number)Name Position in the OrganizationEducational QualificationYears of ExperiencePosition in the AssignmentFinancial Proposal Format Financial Proposal Submission FormTo: __________________Ladies/Gentlemen:We, the undersigned, offer to provide the Auditing services for the examination of the books of accounts of Lion International Bank S.C. and propose recommendations for improvement in accordance with your tender No LIB/NCB/003/2018/19 dated August 22, 2018 requesting for proposed (Technical and Financial Proposals). Our attached Financial Proposal is for the sum of ------------- (amount in words and figures).Our Financial Proposal shall be binding upon us subject to the modifications resulting from contract negotiation, up to expiration of the 90 days validity period of the proposal.We understand you are not bound to accept any proposal you receive.We remain,Yours sincerely,Authorized signature:Name and title of signatory:Name of Bidder:Address: Summary of Financial ProposalName of ActivitiesAmount (in Birr)In WordsIn FiguresTotal AmountBidders are required to present the summary of the cost proposals using the standard format belowSchedule of Financial Proposal ................
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