{"id":736,"date":"2020-12-14T19:01:09","date_gmt":"2020-12-14T16:01:09","guid":{"rendered":"https:\/\/scale.co.ke\/blog\/?p=736"},"modified":"2023-04-12T17:59:19","modified_gmt":"2023-04-12T14:59:19","slug":"tendering-keep-your-audited-accounts-on-track","status":"publish","type":"post","link":"https:\/\/scale.co.ke\/blog\/tendering-keep-your-audited-accounts-on-track\/","title":{"rendered":"Tendering? Keep your Audited Accounts on track"},"content":{"rendered":"

Once a business entity is registered by the Business Registrar Services, they are expected to engage the services of the certified auditor in developing their annual financial report. When it comes to tendering, the purpose of the audited accounts is to present an independent opinion on the financial statements of your business and helps outside parties (such as procuring entities) to be sure of the financial standing of your business.<\/p>\n

Audited financial statements as a legal requirement<\/h4>\n

When creating a checklist for the mandatory requirements for a tender, it is not uncommon to come across a line similar to this:<\/p>\n

Provide Audited accounts for 3 years (2017, 2018 and 2019) signed by certified accountants. Firms with audited accounts for the Financial Year 2020 will also be considered. The accounts must provide the certified accountants practising number.<\/em><\/p>\n

Basically, the auditors are expected to establish whether financial statements are presented in accordance with accepted accounting principles. This is a one-off annual process that\u2019s done at the end of the calendar year and the statements provided are valid for as long as required (hence the variations in the number of years requested in each RFP).<\/p>\n

Going through a number of government Tender Evaluation reports, we were able to establish the examples of some businesses that submitted their tender proposals without attaching the required number of audited accounts.<\/p>\n

\"accounts
Evaluation of Tender No. EUR\/RT\/1\/2018-2021: Provision of Garbage Collection Services<\/figcaption><\/figure>\n

This shows a good number of them getting evaluated as being\u00a0Non-Compliant (NC)<\/strong> to the tender requirements:<\/p>\n

\"non-compliant
Tender Evaluation Report for Tender No: MOICT\/SDICTI005\/2018-2021 Supply and Delivery of Laptop Computers \u2013 Type 1<\/figcaption><\/figure>\n

Below is the detailed explanation of those that were marked as \u2018NC\u2019 in the above to indicate \u2018Non-Compliance\u2019:<\/p>\n

\"audited<\/p>\n

As seen, the bidders lost out on crucial points because they failed to attach the requested number (as well as years) of audited financial statements.<\/p>\n

\"\"<\/p>\n

A lot has changed since the Access to Government Procurement Programme<\/a> came into place. Traditionally, this has been one of the main requirements that locked out youthful businesses from accessing government tenders. For AGPO specific tenders, the requirements can, at times be eased, by not making Audited Accounts mandatory – but this does not mean that the document has become less important for any business that’s serious enough about winning more tenders.<\/p>\n

Not just for points, your proposal also gets to stand out!<\/h4>\n

Whether you are bidding for a government tender or a private sector tender, you definitely want to do everything in your power to win it. This means that you have to ensure you have all the necessary documentation that is requested for.<\/p>\n

Having your financial audit documents ready through an independent party can make your bid more compelling and improve your chances of winning the tender by:<\/p>\n