Life Sciences Hub Wales Ltd Internal Audit Services Tender

Descriptions

INVITATION TO TENDER FOR THE PROVISION OF INTERNAL AUDIT SERVICES FOR LIFE SCIENCES HUB WALES LIMITEDClosing Date: 25 February 2015 at 12.00 middayContact officer: Chief Operating Officer Ian BarwickTel: 02920 467030E-mail: ian.barwick@lifescienceshubwales.comCONTENTSSection 1Information for TenderersSection 2 The Tender SpecificationSection 3 General InformationAppendix Declaration by TendererSECTION 1: INFORMATION FOR TENDERERSLife Sciences Hub Wales, based in Cardiff Bay, is the focal point for the sector in Wales – stimulating interaction, innovation, networking and collaboration.A nerve centre for the whole of the Life Sciences sector, including academic and healthcare organisations, business, expert advisers, clinical and funding organisations, it helps bring about investment, commercialisation and ongoing business success.Further information can be found on our website:www.lifescienceshubwales.comThe Life Sciences Hub Wales (known as “the Hub”) was incorporated on 7 October 2013. It commenced activity on 6 June 2014.The Hub is a subsidiary of Welsh Government and is a “Teckal” Company. Whilst it is operated as a commercial entity, it operates under a Remit Letter from Welsh Government and in accordance with a detailed management agreement which sets the broad framework within which the company operates and details terms and conditions under which the Welsh Government provide funding. It also outlines the financial governance required by the Hub as a result of being a subsidiary of the Welsh Government.The Hub’s operations were initially set up by Welsh Government (the Economy Science and Technology team) and Welsh Government procured certain contracts (such as Facilities management and accounting services) novating to the Hub on handover. Certain assets procured by Welsh Government are in the process of transfer to the Hub (IT).Financial Information, IT and GovernanceThe Hub is financed by annual funding from Welsh Government and derives additional income through membership and room hire/ facilities hire income.The Hub operates from rented premises and has acquired own additional IT assets and office fixtures and fittings since June 2014.The Hub’s Board were appointed by Welsh Government and the Hub has an Audit and Remuneration Committee.Day to day operations are under the control of the Chief Executive (who is a Board member) and the Chief Operating Officer.The day to day accounting functions are outsourced to KTS Owens Thomas Limited, who prepare management, and statutory accounts and ensure that the financial records are up to date. Financial Regulations have been developed in the period. The accounting software used is SAGE line 50.The period to 31 March 2015 represents the first period of operation of the Hub and audited statutory accounts are as yet not available.Summarised financial information is presented below for the 6 month trading period ended 31 December 2014:Income StatementIncome from Welsh Govt £1,400,000Other Income£29,000Total Income£1,429,000Expenditure(£624,000)Net Result£805,000Balance SheetFixed Assets£312,000Current Assets£1,381,000Current liabilities(£438,000)Liabilities due in more than one year (£450,000)Total Net Assets£805,000The Hub has to date received no Internal Audit services and is pending the first External Audit of period end statutory financial statements as at 31 March 2015 by the Wales Audit Office.On site internal audit fieldwork would be undertaken at our offices in Cardiff Bay.The total number of auditing days anticipated in all is expected to be in the region of 10 – 15 days per annum inclusive of report preparation and audit committee attendance.SECTION 2: THE TENDER SPECIFICATIONThe Hub wishes to appoint an external company to provide Internal Auditing services from 1 April 2015 to 1 April 2017.Tender Requirements:General1.The Hub requires the delivery of a focussed, quality internal audit function. The audit should follow a risk based approach in consultation with the senior management team; and will need to retain sufficient flexibility to respond to areas of audit need as the programme progresses.2.To ensure added value is inherent in the provision of service, the Hub seeks an internal Audit function that provides, alongside compliance testing, added value by identifying best practice and includes suggestions where systems may be enhanced or improved.3.The successful applicant will, as a minimum be required to:• Perform audits in accordance with Public Sector Internal Audit Standards• Identify, test and evaluate key systems and controls• Confirm controls in place are appropriate and effective• Where weaknesses are identified propose ways of improving the Hub’s systems procedures and controls in a manner that is economic efficient and effective• Liaise effectively with Hub management to ensure efficient and effective service delivery• Offer advice and other services as required to assure that the Hub processes remain compliant and effective and• Provide an annual assurance opinion to the Audit Committee which can be relied upon by the Board.4.In delivering points 1-3 above, the Hub envisages that the successful applicant will ensure that the staff appointed are appropriately experienced and hold the requisite qualifications. As a minimum all auditors would be required to have at least one years’ experience.5. As well as the internal audits themselves, the successful applicant will be expected to attend Audit and Remuneration committee meetings held at the Hub in Cardiff (normally 4 a year) and the named representative will present audit findings and report on progress made against the annual internal audit plan.6.The successful applicant will be expected to cooperate fully with the Hub’s external auditors, Wales Audit Office, and show examples of such co-operation such as sharing the audit plan and working papers with the aim of minimising duplication in the audit process.PricingPlease provide the basis for the proposed fee for the period of appointment.In particular please state the fixed daily rate and the annual cost to the hub that you propose to charge based on the following:• Standard working day of 7.5 hours• Daily rate (inclusive of all expenses such as travel, parking etc.) exclusive of VAT for each level of staff working on the contract• Daily rate should include the cost for the time required to attend Audit and Remuneration committee• Total cost of contract including annual costs (itemised by grade and number of staff and the likely split of time between the grades)Your price should be quoted exclusive of VAT. Additional costs (such as administration, travel and subsistence etc) should be itemised where appropriate.QualityPlease ensure your tender addresses the following:• Relevant Experience of working in the public sectorThe quality assurance and monitoring programmes that you propose to put in place for the contract and how you will ensure that the internal audit service is compliant with eh Public Sector Internal Audit Standards.The procedures in place for the handling of any complaints received by you concerning the conduct of your staff or service quality.How the service will be managed.• Details of staff proposed to work on the tender, in particular:Name of, and experiences and qualifications of the individual proposed to be in charge of the Internal Audit ServiceDetails of the proposed team - Staff Names, qualifications, experience and gradeRelevant internal audit and public sector experienceSpecialist skills that may be relevant to the contract.Procedures to ensure continuity of staffDetails of own firm professional standards, procedures in regards management of quality of serviceDetails of access to technical support servicesKey performance measures that you utilise to ensure quality of contract and to ensure deliveryAudit ApproachPlease provide a detailed description of the methodologies employed in meeting the tender requirements, including those undertaken in the development of an audit strategy, audit plan and audit programs, audit sampling, analytical techniques and benchmarking.You should detail your understanding of the Hub, including your understanding of the key risks and emerging issues that are faced by the Hub.Please provide sample reports as follows:• Internal Audit Plan• Annual Internal Audit Report• Individual Audit Reports• Any other documentation you consider relevant to your submissionPlease provide an indicative Internal Audit Plan sufficient to meet the requirements of the tender indicating the number of days that you would allocate to each area.Value AddedYou should also give examples where your work for existing or previous clients has added value and outline how that was achieved.Given financial constraints in the public sector, please describe the initiatives you would propose to provide effective internal audit reports that meet the assurance needs and that also add value for management. Describe how you propose to add value in this particular contract.Additional MattersPlease declare any perceived conflicts of interest.Please set out any other factors in your submission that you feel are not included above or that demonstrates your ability to provide effective Internal Audit Services to the Hub.Your tender should include a list of three current/relevant client referees including contract staff for Hub management to contact to obtain references in due course.Please provide audited financial statements for the last three years.SECTION 3: GENERAL INFORMATIONTenders submitted shall be in accordance with and subject to the terms of these instructions and other documents comprising the Invitation to Tender.Any queries about the tender documents which may affect the preparation of the tender shall be raised without delay (preferably in writing) with the Contact. If the Hub considers that a query may have a material effect on the tendering process, all tenderers will be notified without delay in writing.The invitation to tender does not constitute an offer and the Hub does not undertake to accept any tender. The Hub reserves the right to accept any part of any tender.The Hub will not reimburse any tendering costs.The contact for this procurement is Ian Barwick, Chief Operating Officer.Tenderers shall not discuss the bid they intend to make other than with professional advisors or joint bidders who need to be consulted. Bids shall not be canvassed for acceptance or discussed with the media or any other tenderer, officer or employee of the Hub.Tender Award CriteriaThe contract will be awarded to the organisation that offers the most economically advantageous terms that best meets the Hub’s tender specification criteria.Tenderer Informing SelvesThe tenderer shall be deemed to have:• Carefully examined the tender documents referred to and any other information made available in writing by the Hub to the tenderer for the purpose of tendering• Made its own interpretations, deductions and conclusions as to the difficulties and cost of complying with all the obligations of the tender documents and all of the matters and things necessary for the due and proper performance of the contract described.• Sought and examined all further information relevant to the risks contingencies and other circumstances having an effect on its tenders and;• Satisfied itself as to the correctness and sufficiency of its tender including the tender price.Tender ProcessThe following information is an indication of how this tender process will be addressed:3 February 2015:Issue of tenders to suppliers25 February 2015:12.00 Midday Deadline for Tenders Received19 March 2015:Tender interviews26 March 2015:Notify Tenderers of decision1 April 2015:Contract CommencementTenders will be assessed by a Tender evaluation panel comprising of the Chief Operating Officer, Chair of Audit Committee and a senior member of our finance team, KTS Owens Thomas. Tenders will be ranked and the top three submissions will be invited to interview, following which a decision to appoint will be made.Date for and method of submission of TendersTenders should be submitted to Dr Ian Barwick, Chief Operating Officer by hand or post, in a plain envelope marked INTERNAL AUDIT TENDER DO NOT OPEN UNTIL 12.00 midday 25 February 2015 to the following address:Life Sciences Hub Wales3 Assembly SquareCardiff BayCF10 4PLDate for submission 12.00 midday on 25 February 2015Tenders submitted in any other way will not be accepted.Three hard copies and one electronic copy of the tender is required.The Declaration by Tenderer in Appendix 1 should be signed and delivered with your tender.NOTE: To register your interest in this notice and obtain any additional information please visit the Sell2Wales Web Site at http://www.sell2wales.gov.uk/Search/Search_Switch.aspx?ID=22240.