Submit Proposals to Perform Asset Verifications - National Health

Returnable Documents:

Confidential of 70 RFB162/25/26 The (NHLS) invites suitably qualified bidders to submit proposals to perform asset verifications at all NHLS locations, review the useful lives, perform impairment tests, update the Fixed Asset Register (FAR) and assist in addressing audit findings from the 2023/24 & 2024/25 financial years as well as audit support during the 2025/26 financial year for a period of SIX (6) months. ✓ Physical verification of all assets across all NHLS and SAVP locations ✓ Reconciliation of the FAR and the General Ledger for 2022/23, 2023/24, 2024/25 and 2025/26 financial years. ✓ Review the appropriateness of the Property, Plant and Equipment (PPE) accounting policy in accordance with the Standard of Generally Recognised Accounting Practice – Property Plant and Equipment (GRAP) and ensure that they have been applied accordingly and consistently. ✓ Review the useful lives and residual values of all assets and provide appropriate journal entries and associated disclosures in accordance with GRAP ✓ Identify and assess assets for impairment and provide relevant journals in accordance with GRAP ✓ Identify R1/NIL value assets and assign appropriate values to them in accordance with GRAP ✓ Scrutinize the general ledger (GL) accounts, with special focus on accounts in which assets may have been inappropriately expensed, e.g. repairs and maintenance accounts, and ensure that all PPE purchases were correctly accounted and capitalized in the GL. ✓ Propose required journals and disclosures for any prior period error adjustments that may be required based on the work performed in line with GRAP 3. The comparatives are currently misstated as there was a qualification on PPE for the 2023/24 and 2024/25 financial years. ✓ Review the PPE Disclosure Note in the Annual Financial Statements (AFS) in accordance with GRAP and advise on any amendments required based on the outcomes of the work performed ✓ Be readily available to provide audit assistance for any asset-related audit findings related where required. ✓ Submit complete and auditable files for all work carried out as part of the handover. (Prepare an Audit File for Property Plant & Equipment for submission to the Auditors.) ✓ Skills Transfer on Assets Management Note ➢ The scope of work excludes property valuation of land and buildings 8 TIMEFRAMES The FAR is one of the key supporting schedules to the Annual Financial Statements (AFS). In order to meet the legislated timeframes for submission of the 2025/26 AFS to external auditors on 31 May 2025 the below timeframes are applicable to this project. No Deliverable Timeline 1 Assets verifications (across all NHLS and SAVP locations) 31 March 2026 2 A complete FAR and supporting documentation 24 April 2026 3 All journals for processing in the General Ledger 24 April 2026 4 Auditable file of all work carried out 24 April 2026 5 Review of PPE note 30 April 2026 6 Skills Transfer Throughout the project 7 Ad hoc technical assistance with audit findings 2025/26 Throughout the audit 9 EXPECTED DATE OF COMMENCEMENT The successful bidder will be expected to commence with the project on the estimated date of 2 February 2026. 10 MANDATORY REQUIREMENTS Bidder must submit a matrix of contactable clients (Annexure A provided) and for each client indicate the following- ✓ Entity where services were provided ✓ Name and position of the contact person of the entity where services were rendered Confidential of 70 RFB162/25/26 The (NHLS) invites suitably qualified bidders to submit proposals to perform asset verifications at all NHLS locations, review the useful lives, perform impairment tests, update the Fixed Asset Register (FAR) and assist in addressing audit findings from the 2023/24 & 2024/25 financial years as well as audit support during the 2025/26 financial year for a period of SIX (6) months. ✓ Telephone/cell phone number, email address of the contact person for verification ✓ Financial year when the assets-related services were rendered ✓ Nature of PPE-related services were rendered ✓ No of assets in the asset register under review by the bidder ✓ Total Cost of the assets under review ✓ Indicate the whether the accounting framework utilised where services were provided was GRAP or not [GRAP Yes/No] ✓ Indicate if your services improved the external audit outcomes for Property, plant and equipment. ✓ Explain the nature of the turnaround ✓ Attach the relevant reference letter The NHLS is a national public entity established in terms of the National Health Laboratory Service Act, No. , governed by a Board to provide quality, affordable, and sustainable health laboratory services, training, and research. It was established in 2001, by amalgamating the former South African Institute for Medical Research (SAIMR), the National Institute for Virology and the National Centre for Occupational Health. It is managed according to the provisions of the National Health Laboratory Service Act, the NHLS Rules, and the Public Finance Management Act (PFMA), No. (as amended). Through its countrywide network of quality-assured diagnostic laboratories, the NHLS is the sole provider of diagnostic pathology services to over 80 percent of the South African population. It also provides surveillance support for communicable diseases, occupational health and cancer. Our specialised institutes include the National Institute for Communicable Diseases (NICD) incorporating National Cancer Registry(NCR), the National Institute for Occupational Health (NIOH), Forensic Chemistry Laboratories (FCL) and the South African Vaccine Producers (SAVP), as our subsidiary. The NHLS has laboratories in all nine provinces, employing over 8000 people. Assets are geographically spread across about 233 laboratories and various other locations across the country. 11 MANDATORY REQUIREMENTS If a bidder does not comply fully with each of the mandatory requirements, it Shall be regarded as mandatory non-performance/non-compliance and the bid Shall be disqualified. No “unanswered” questions will be allowed. If a response to a question has been indicated as comply but not elaborated upon or substantiated it shall be regarded as mandatory non- performance/non-compliance and the bid shall be disqualified. Bidders shall provide full and accurate answers to the mandatory questions posed in this document, and, where required, explicitly state either “Comply/Accept (with a “Yes”)” or “Do not comply/do not accept (with a “No”)” regarding compliance to the requirements. Bidders must substantiate their responses to all mandatory questions. PLEASE NOTE: If the response does not substantiate any of the points or requirements in the body of the tender, it will be deemed to not comply, even if the ‘Comply’ field has been marked. Please note: All documentation to substantiate the mandatory requirements has to be supplied. Confidential of 70 RFB162/25/26 The (NHLS) invites suitably qualified bidders to submit proposals to perform asset verifications at all NHLS locations, review the useful lives, perform impairment tests, update the Fixed Asset Register (FAR) and assist in addressing audit findings from the 2023/24 & 2024/25 financial years as well as audit support during the 2025/26 financial year for a period of SIX (6) months. 12 TECHNICAL MANDATORY REQUIREMENTS: (Note: The bidder who fails to comply with the Mandatory Requirement WILL be disqualified). 12.1 Technical Suitability: Mandatory Requirements w Bidder must submit a matrix of contactable clients (Please complete Comply Do Not Comply Annexure 1) and for each client indicate the following- ✓ Entity where services were provided ✓ Name and position of the contact person of the entity where services were rendered ✓ Telephone/cell phone number, email address of the contact person for verification ✓ Financial year when the assets-related services were rendered ✓ Nature of PPE-related services were rendered ✓ No of assets in the asset register under review by the bidder ✓ Total Cost of the assets under review ✓ Indicate the whether the accounting framework utilised where services were provided was GRAP or not [GRAP Yes/No] ✓ Indicate if your services improved the external audit outcomes for Property, plant and equipment, where there were prior year external audit qualification paragraph/s in the audit report. ✓ Explain the nature of the turnaround where there were prior year external audit qualification paragraph/s in the audit report. ✓ Attach the relevant reference letter Substantiate: Bidders will be disqualified in the following instances i. The matrix (Annexure A) is not submitted ii. The matrix utilised ((Annexure A) differs from the matrix provided in the RFB iii. The matrix is not fully completed The bidder must demonstrate all following on the matrix that for at least two of Comply Do Not Comply the entities where services were rendered [In addition to the matrix, supporting reference letters for these two entities must be attached]. The bidder will be disqualified if it does not meet the criteria for at least two entities where services were rendered. Substantiate: i. No of assets in the asset register under review by the bidder are at least 20 000 AND the total cost of the assets under review by the bidder were R1 billion or more ii. There was improvement in external audit outcomes for Property, Plant and equipment as a result of services rendered by the bidder where there were prior year external audit qualification paragraph/s in the audit Confidential of 70 RFB162/25/26 The (NHLS) invites suitably qualified bidders to submit proposals to perform asset verifications at all NHLS locations, review the useful lives, perform impairment tests, update the Fixed Asset Register (FAR) and assist in addressing audit findings from the 2023/24 & 2024/25 financial years as well as audit support during the 2025/26 financial year for a period of SIX (6) months. report. iii. Accounting framework where services rendered was GRAP/IFRS iv. The nature of the services related to the following or similar work: a. Compilation of Fixed Asset Registers in the public sector using GRAP/IFRSb. Reviewing/Reconfiguring and or/updating of Fixed Asset Registers in the public sector using GRAP/IFRS c. Physical verification of assets For purposes of similar work, note that where the scope of work at the qualifying entity was limited to immovable assets only, it will NOT be considered. .v. Supporting contactable reference letters for these two entities 12.2 TECHNICAL/FUNCTIONALITY EVALUATION CRITERIA A minimum threshold of 80% need to be achieved to be considered for further evaluation. No. EVALUATION CRITERIA - (PROVIDE PROOF BY MEANS OF SCORE % Substantiate Reference BROCHURE/SUBSTATIATIVE EVIDENCE FOR EACH LINE ITEM UNLESS OTHERWISE SPECIFIED) 1. Company Experience 25% Submit a company profile which must include number of years experience with Fixed Assets Related services in the public sector.- Please complete Annexure 2 A company profile clearly indicating the number of years’ experience with Fixed asset related services in the public sector and a list of clients must be submitted as evidence. • • <1 year experience – 0%1 year -3 years – 10% • > 3- 5 years’ experience – 15% • >5 years – 25% Substantiate: Bidders will be allocated 0% in the following instances i. The matrix (Annexure B) is not submitted, or ii. The matrix utilised (Annexure B) differs from the matrix provided in the RFB, or iii. The matrix is not fully completed 2. Reference letters and contactable references 20% Reference letters with contactable references where similar work was performed in line with Standards of GRAP/IFRS in the public sector. Contactable references must relate to work performed in the past five (5) recent financial years. Any reference letters that relate to work performed in the period older than five (5) previous financial years will NOT be considered. Confidential of 70 RFB162/25/26 The (NHLS) invites suitably qualified bidders to submit proposals to perform asset verifications at all NHLS locations, review the useful lives, perform impairment tests, update the Fixed Asset Register (FAR) and assist in addressing audit findings from the 2023/24 & 2024/25 financial years as well as audit support during the 2025/26 financial year for a period of SIX (6) months.

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