Accounting standards support to English college finance staff

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1 Accounting standards support to English college finance staff Invitation to Tender for Consultant Contract for Accounting Standards Support to further education (FE) College and Sixth Form College finance staff issued on Friday 4 December The Association of Colleges (AoC) wishes to provide advice to college finance staff on the interpretation of UK accounting standards set out in FRS102, FE/HE SORP and a model set of financial statements designed to produce consistent and comparable information for their own purposes as well as to meet the needs of their many regulators and stakeholders including the SFA and EFA. The successful contract will run for one year from January 2016 to December 2016 but with the possibility of renewal. Completed applications must be received by midday on Friday 8 January 2016

2 Introduction Further education colleges and sixth form colleges were incorporated in 1993 and have produced financial statements in line with UK accounting standards as interpreted by the Further and Higher Education SORP for the last 20 years. Colleges are also required to comply with an Accounts Direction prepared by their regulator. For the last few years, Education Funding Agency (EFA) and Skills Funding Agency (SFA) have prepared a joint accounts direction. We expect this to continue for the financial year. For the last seven years, AoC has arranged the provision of financial reporting spreadsheets and accounting documents for colleges on behalf of the funding agencies as a result of an agreement made with the College Finance Director s Group (CFDG). These arrangements have remained in place since then with various changes but (with the agreement of funding agency staff and CFDG); AoC wishes to retender this work on new terms for The scope of the work that we wish the contractor to carry out is: Preparation of a model set of financial statements for FE colleges and sixth form colleges which are compliant with the new FE/HE SORP, which meets the reasonable requirements of regulators, funders and stakeholders and which is available in Word and Excel format. The financial statements need to be available three weeks after the agreement of the contract. We plan to select a contractor by Friday 22 January and agree a contract by Friday 29 January so our target date for this part of the work is Friday 26 February Preparation of a more detailed handbook for college finance staff to be available by Friday 8 April Unlike the existing contract, we do not require the contractor to produce the financial plan, finance record spreadsheets or enhanced pension provision spreadsheet. This will be commissioned separately. This invitation does not comprise an agreement between AoC and any bidder. AoC will not be responsible for any costs incurred by bidders or potential bidders in consideration of this invitation to tender. 1

3 Definitions AoC The Association of Colleges (AoC), a company limited by guarantee with registered number , is a not-forprofit membership organisation set up in 1996 by colleges to act as their collective voice. Today, AoC represents and promotes the interests of more than 320 further education, sixth form, tertiary and specialist colleges across the UK over 95% of the sector. Further details of AoC s work and staff can be found at Bidder Contractor Contract A company which has been invited to tender against this specification. A company which is appointed by AoC to provide IT support services as a result of this Invitation to Tender. The contract to be agreed between AoC and the Contractor for delivery of these services. AoC s Named Representative AoC s nominee for liaison with the Contractor over the management of the contract. 2

4 1. The requirement 1.1 The core requirement is for a Contractor to: Prepare a model set of financial statements for further education colleges and sixth form colleges which is compliant with the new FE/HE SORP, which meets the reasonable requirements of regulators, funders and stakeholders and which is available in Word and Excel format. Prepare a detailed handbook for college finance staff. 1.2 AoC is seeking a Contractor with the following capabilities: Detailed understanding of the requirements of UK accounting standards and EFA/SFA funding and audit rules as they apply to further education colleges and sixth form colleges in England. Understanding of the needs of finance and accounting staff in colleges for accessible and useable information. The contractor will need to liaise with a new college accounting group. Ability to complete this work to high standards of accuracy, judgement and care. 1.3 AoC is seeking a Contractor able to meet the following requirements: The financial statements need to be available three weeks after the agreement of the contract. We plan to select a contractor and agree a contract by Friday 22 January so our target date for this part of the work is Friday 26 February The new handbook for college accounting staff needs to be available by Friday 8 April Structure of tenders. Bidders should complete the application form provided in Appendix 2 and include information about: 2.1 Their full contact details, the names of the proposed dedicated account manager and lead technical consultant and details of their proven track 3

5 record and experience in supporting similar contracts. 2.2 A description : 2.21 How they will deliver the requirements 2.22 Capability and experience 2.23 Timescales. 2.3 A fixed price for the work. 2.4 Evidence of their financial capacity. 2.5 Contact details of two organisations, for example colleges, which they have supplied similar services to in the last two years. Confirmation that AoC may approach these contacts for references. 2.6 Confirmation that Bidders will conform to individual legal terms and conditions as described in Section A declaration that they have not colluded with any other Bidder in preparation of their tender and that their prices are fixed for one year. 3. Legal terms and conditions 3.1 AoC are seeking to agree a Contract which covers all the services listed in section 1 for a fixed annual charge. 3.2 Bidders should confirm that they will not sublet any element of the contract without prior consent. 4. Price. 4.1 The price for the contract of work will be based on the tender plus VAT and will be provided in tranches outlined below: First Payment 50% within 30 days of completion of the model financial statement Second Payment 50% within 30 days of completion of handbook 4

6 5. Procurement process Timetable: Invitation to Tender launched Friday 4 December 2015 Deadline for questions to be submitted Deadline for submissions Notification to be sent to all Bidders Thursday 17 December 2015, midday Friday 8 January 2016, midday Friday 22 January 2016 Start date of contract Friday 29 January Tenders to be submitted electronically, to: Julian Gravatt Assistant Chief Executive Association of Colleges 5.2 Tenders to be evaluated by an internal AoC panel on the advice of the College Finance Directors Group. 5.3 Feedback to unsuccessful Bidders will not be given. 5.4 Any questions in respect of clarification of this tender should be submitted in writing by to Julian Gravatt c/o by Thursday 17 December 2015, midday. All questions submitted via will be included in the frequently asked question document. This document will be updated each Friday, up until, and including 18 December and uploaded to AoC s accounting web pages. After this date no more questions can be asked. This is to aid a fair and transparent process for all Bidders. 5.5 Tenders will be evaluated against the following criteria: Evidence that the Bidder understands the accounting requirements of colleges including UK accounting standards and EFA/SFA funding and audit rules as they apply to further education colleges and sixth form colleges in England. Understanding of the needs of finance and accounting staff in colleges for accessible and useable information. Ability to complete this work to high standards of accuracy, judgement and care within the specified timeframe. 5

7 Demonstrable experience of supporting not-for-profit organisations, member funded associations and their associated commercial subsidiaries. The demonstrated capability of the Bidder to work in partnership with AoC to deliver the requirements. The extent to which the tender meets the requirements of the specification as described in this document. Value for money. Appendix 1 AoC Financial Planning Please use the link below to view previous information provided from the financial planning project as well as the most recent version of questions and answers related to this tender: 6

8 Appendix 2 Application form: Accounting standards support to English college finance staff Completed applications must be ed to by Friday 8 January 216, midday. A word version of this application form can be found on our website. Organisation name: Contact details Main contact name: Direct telephone number: N.B. To be contacted if further information is required and to be updated on status of application. Account manager details Main contact name: Direct telephone number: Proven track record and experience in supporting similar contracts: Lead technical consultant Main contact name: Direct telephone number: Proven track record and experience in supporting similar contracts: 7

9 Description of work How will you deliver the requirements? Capability and experience: Timescales: Cost Fixed price for work: * * Please state if cost includes VAT Financial capacity Evidence of financial capacity: References Please provide details of two organisations that you have supplied similar services to in the last two years. Name of organisation: Main contact name: Direct telephone number: Nature of work: Dates of work: Name of organisation: Main contact name: Direct telephone number: Nature of work: Dates of work: * Please note AoC may contact these references during and after shortlisting. 8

10 Please add in any additional information that we should consider when assessing your application Declaration: I declare that in submitting this proposal: 1. I agree that any information submitted in this document is true and has been approved at senior level if required internally. 2. I agree that we have not colluded with any other Bidder in preparation of this application. 3. I agree that the fixed price stated within this application form are fixed for one year and cover all services listed in section 1 of the tender. 4. I agree I will not sublet any element of the contract without prior consent. 5. I agree that our organisation will conform to individual legal terms and conditions as described in section 4 of the tender. 6. I agree that we can deliver the full specification within your dictated timeframe. 7. I understand that applicants are not entitled to claim any costs or expenses that may be incurred in preparing this application whether or not your proposal is successful. 8. I confirm that the organisation is financially viable and agree, if required, to provide a copy of our most recently audited account (including cash flow). Name: Organisation: Signature (scanned): Date: 9

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