SUWASA Nigeria - Bauchi Request for Proposal RFP-007. Accounting Training, QuickBooks Software Implementation

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1 USAID Contract No.: EPP I , Task Order No. 4 A USAID program implemented by Tetra Tech SUWASA Nigeria - Bauchi Request for Proposal RFP-007 Accounting Training, QuickBooks Software Implementation Sustainable Water and Sanitation in Africa (SUWASA) is a six year regional initiative launched in October 2009 and financed by the US Agency for International Development (USAID). SUWASA is implemented by Tetra Tech (a company based in the USA) and coordinated from the regional office in Nairobi, Kenya. SUWASA promotes water sector reforms that should lead to efficient and sustainable provision of urban water services. It is also designed to encourage long-term financial sustainability of water and sanitation service delivery in Sub-Saharan Africa through the application of market-based principles and engagement of the private sector within a conducive policy and regulatory framework. SUWASA is implementing a three-year water sector reform project that is aimed at facilitating the creation of an enabling environment and; provide direct technical assistance to Bauchi State Water and Sewerage Corporation (BSWSC). The SUWASA project in Bauchi, Nigeria is being implemented on two levels to: Facilitate the creation of an enabling environment for the urban water sector in Bauchi State; Provide technical assistance to Bauchi State Water and Sewerage Corporation (BSWSC) to improve on its technical, financial and general performance. A critical area of providing technical assistance to the BSWSC to improve on its performance is the improvement of the financial management system through development of the capacity of the BSWSC accounting staff in international accounting best practices supported by a computerized financial package. The SUWASA Nigeria Bauchi project is soliciting proposals from qualified firms to provide training for staff of the BSWSC Finance Department on computer aided double entry accounting methods and train employees on its use. Details for the services required listed components are outlined in the Request for Proposal (RFP). Firms interested in submitting an offer in response to this RFP solicitation can obtain the complete RFP document at the SUWASA program website Working With Us: Short- Term Opportunities. SUWASA Africa Regional Office, P.O. Box , Nairobi, Kenya, Telephone: +254 (0) /17; [email protected],

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3 SUWASA Nigeria - Bauchi - RFP-007 Table of Contents Section 1 Request for Proposal (RFP) Purpose Instructions to Bidders Proposal Submission Deadline Inquiries RFP Changes And Addendum Eligibility Conflict of Interest Registration Status in Nigeria One Proposal Per Bidder Budget Validity Delivery and Completion of Statement of Work Tetra Tech Not Bound To Accept Any Proposal Preparation of Proposal Language Technical Proposal Financial Proposal Currency, Taxes, Duties and Prices Tetra Tech Provision Proposal Preparation Cost Submission of Proposals Modification of Proposal Withdrawal of Proposal Rejection Opening and Evaluation of Proposal Opening of Proposals Process To Be Confidential Evaluation Examination of Proposals and Responsiveness Technical Proposal Evaluation Financial Proposal Evaluation Technical Proposal Evaluation Criteria Final Ranking Clarification of Proposals and Contacting Tetra Tech Negotiations Contract Award Contract Award Type Right to Accept or Reject Any or All Proposals Start Date of Services Marking and Branding Payment Terms iii

4 SUWASA Nigeria - Bauchi - RFP-007 Section 2 Format for Technical Proposal Cover Letter References Proposed Methodology for Performing the Assignment Comments/Suggestions Curriculum Vitae (CV) for Proposed Key Staff Statement of Exclusivity and Availability Technical Personnel, Assigned Tasks, Level of Effort Work Plan Timeline Section 3 Format for Financial Proposal Cover Letter Financial Proposal Summary Financial Proposal Pricing Detail Section 4 Statement of Work Exhibit 1 Phase 1 Accounting System Exhibit 2 QuickBooks Users Annex 1 BSWB Accounting Classroom Exercise iv

5 SUWASA Nigeria - Bauchi - RFP-007 Section 1 Request for Proposal (RFP) 1. Purpose The SUWASA Nigeria Bauchi project is soliciting proposals from qualified firms to supply and install Quick books accounting software, develop a chart of accounts and provide training for staff of the BSWSC Finance Department as outlined below: Double entry accounting as evidence by completion of both theoretical and practical trainings and classroom exercises that include the preparation of journal entries, posting entries to a general ledger, preparation of a trial balance and financial statements for a typical small business Recording cash receipts and cash disbursement transactions in QuickBooks Recording monthly accrual entries (accounts receivable, accounts payable, accrued liabilities, inventory etc.) in the QuickBooks general journal. Financial statement presentations for water companies based on International Financial Reporting Standards Financial statement ratios and other measures used to evaluate the performance of a water company Develop a chart of accounts Supply, installation and user training QuickBooks accounting software. See Section 4 - Statement of Work for comprehensive details of services to be provided. 2. Instructions to Bidders 2.1 Proposal Submission Deadline Technical and financial proposals in four (4) hard copies (plus the original) should be received no later than 16:00 hours Nigeria local time on 22 July, The proposal should be delivered both in electronic and hard copy. The hard copies of the proposal should be delivered to the address given below: Team Leader SUWASA Nigeria - Bauchi Office Bauchi State Water Board Headquarters No. 15 Gombe Road Re-insurance Building, First Bank Link Road Bauchi Town, Bauchi State, Nigeria Electronic copies should be delivered to the address: [email protected] and [email protected]. Electronic copies should only be sent after delivery of the hard copies. 2.2 Inquiries All inquiries concerning the contents of this RFP must be addressed in writing by to: [email protected]. Subject line on the shall state: SUWASA Nigeria Bauchi RFP All required clarifications of the RFP must be submitted in writing not later than 10 days before the proposal submission date. Page 5 of 40

6 SUWASA Nigeria - Bauchi - RFP RFP Changes and Addendum At any time prior to the deadline for submission of proposals Tetra Tech may, for any reason, whether at its own initiative or in response to a clarification requested by a bidder, modify the RFP documents by issuing an addendum. Any addendum issued shall be part of the RFP documents and shall be communicated by e- mail to all bidders. To afford prospective bidders reasonable time in which to take an addendum into account in preparing their proposals, Tetra Tech may extend the deadline for submission of proposals, in accordance with Clause Eligibility This Request for Proposal (RFP) is open to all the short-listed bidders. However it is necessary to note that any bidder from any of the following countries Cuba, Iran, Libya, North Korea, and Syria is ineligible. Evidence of Eligibility Bidders shall provide such evidence of their eligibility satisfactory to Tetra Tech, as Tetra Tech shall reasonably request. Declaration of Ineligibility Bidders shall not be under a declaration of ineligibility for award of a contract or for corrupt or fraudulent practices issued by the U.S. Government or USAID. 2.5 Conflict of Interest Bidders must not have a conflict of interest. Any bidder found to be in a conflict of interest will be disqualified. A bidder may be considered to have a conflict of interest with one or more parties in the proposal process if they: Have controlling shareholders in common; Receive or have received any direct or indirect subsidy from any of them; Have the same legal representative for purposes of a proposal; Have a relationship with each other, directly or through common third parties, that puts them in a position to have access to information about or influence on a proposal of another bidder, or influence the decisions of Tetra Tech regarding the RFP process; Participated as a subcontractor or otherwise in preparing the design or technical specifications of the goods and related services or Projects that is subject of this RFP. 2.6 Registration Status in Nigeria Bidders shall, as part of their proposal, submit a copy of the organization s registration in Nigeria, or other documentation acceptable to Tetra Tech. Should there be a joint venture then the principle firm should show its registration status in Nigeria. 2.7 One Proposal per Bidder Each bidder shall submit only one proposal in this RFP process, either as a sole bidder or as a partner in a joint venture. No firm can be a subcontractor while submitting a proposal individually or as a partner of a joint venture in this RFP process. A bidder who submits or Page 6 of 40

7 SUWASA Nigeria - Bauchi - RFP-007 participates in more than one proposal will cause all the proposals in which the bidder has participated to be disqualified. An individual or firm, if acting in the capacity of subcontractor, a specialized agency or supplier in any proposal, may participate in more than one proposal, but only in that capacity. Subcontracting costs may not exceed 40 percent of the total proposed contract price. Sub-subcontractors shall satisfy the conditions of eligibility required by USAID. 2.8 Budget The proposal budget must be submitted in the format outlined in Section 3 Format for Financial Proposal. Subcontractors are encouraged to be cost effective. The budget ceiling for the proposal is local currency equivalent to US$15,000 (Estimated Nigerian Naira 2,430,000 at current exchange rate Nigerian Naira 162 per USD). 2.9 Validity Bidders must indicate that the proposals shall remain valid for 90 days (ninety days) from the due date for receipt of proposals as indicated on page 1 of this RFP. In exceptional circumstances, prior to expiry of the original offer validity period, the project may request that the bidder extend the period of validity for a specified additional period. The bidder agreeing to the request will not be required to modify its proposal. During this period, you shall keep available the key technical staff proposed for the assignment. The Tetra Tech shall on its part, make its best effort to complete negotiations at the location stated in the Data Sheet within this period Delivery and Completion of Statement of Work The winning bidder must complete all work and handover all required deliverables by no later than 02 October 2014 or other date agreed upon during negotiations Tetra Tech Not Bound to Accept Any Proposal The Tetra Tech is not bound to accept any of the proposals submitted. 3. Preparation of Proposal The bidder is requested to submit a technical and a financial proposal. 3.1 Language The proposal, as well as all correspondence and documents relating to the offer, shall be in English. Supporting documents and printed literature furnished by the bidder must be presented in the English language. If any documents are presented in another language, then they must also be translated into English. In all cases, for purposes of interpretation of the proposal, the English language text shall prevail. 3.2 Technical Proposal In preparing the technical proposal, you are expected to examine all terms and instructions included in this RFP. Failure to provide all requested information shall be at your own risk and may result in rejection of your proposal. During preparation of the technical proposal, the bidder must give particular attention to the following: Page 7 of 40

8 SUWASA Nigeria - Bauchi - RFP-007 The estimated number of key technical staff-days required for the assignment is clearly listed. The key technical staff proposed for the assignment should be listed by name, position. Proposed international staff must have experience outside their own country, preferably under conditions similar to those prevailing in Nigeria. No alternative to key technical staff may be proposed. Format of the Technical Proposal The technical proposal shall provide the following and any additional information, using the format outlined in Section 2 Format for Technical Proposal A brief description of the Subcontractor s organization and an outline of recent experience on assignments of a similar nature. For each assignment, the outline should indicate, inter alia, the profiles of the staff provided, duration, contract amount and firm involvement. Any comments or suggestions on the SOW, and a description of the methodology (work plan) that the Subcontractors propose to execute the services, illustrated with bar charts of activities. CVs recently signed by the proposed key technical staff or an authorized manager in the home office. The composition of the proposed staff team, the tasks to be assigned to each, and level of effort (days to be worked and charged to the subcontract to complete the task). Estimate of total days required by all technical staff for the completion of each listed deliverable. The Subcontractor s comments, if any, on the data, services and facilities to be provided by the Tetra Tech and indicated in the SOW. Site Visit This is left to the discretion of the bidders. However it is not a requirement to undertake a site visit. No Financial Information The technical proposal shall not include any financial information. 3.3 Financial Proposal The financial proposal should list the costs associated with the assignment. These normally cover remuneration for staff (foreign and local, in the field and at headquarters), travel meals, lodging, local and international transportation as applicable; communications, printing of reports, etc. The financial proposal should be presented in formats outlined in Section 3 Format for Financial Proposal. 3.4 Currency, Taxes, Duties and Prices Prices for products and services offered shall be quoted in Nigerian Naira currency excluded from any Sales Tax, Value Added Tax, Government Taxes, custom tax or any other levy taxes. The Project will work with the winning bidder to secure tax exemption letter or establish VAT reporting procedures, as appropriate. The bidder shall be entirely responsible for all duties, license fees, etc., incurred until delivery of the Products and Services to the Project. Page 8 of 40

9 SUWASA Nigeria - Bauchi - RFP Tetra Tech Provision SUWASA Nigeria Bauchi office work space for key technical personnel; SUWASA Nigeria - Bauchi office internet access; Organize and fund workshops and key meetings associated with the activity as determined by SUWASA Nigeria - Bauchi. 3.6 Proposal Preparation Cost The bidder shall bear all costs associated with the preparation, submission of its Proposal as well as negotiations for the contract. In no case shall the Project be responsible or liable for those costs, regardless of the conduct or outcome of this bidding process. Bidders shall submit proposals which comply with these documents. Alternatives will not be considered. The Proposal shall contain no alterations, omissions or additions, except those to comply with instructions issued by Tetra Tech, or as necessary to correct errors made by the bidder, in which case such corrections shall be initialed by the person or persons signing the Proposal. 4. Submission of Proposals Bidders shall submit one original technical proposal and one original financial proposal and the 5 copies of each. An authorized representative of the bidder shall sign both the technical and financial proposals and initial all the pages of both. The authorization shall be in the form of a written power of attorney attached to the proposal, or any other means proving that the representative was authorized to sign. The signed technical and financial proposals shall be marked original. In the event of any discrepancy between the copies of the proposals, the original shall govern. The proposal shall contain no interlineations or overwriting except as necessary to correct errors made by the bidders themselves. Any such corrections shall be initialed by the person or persons signing the proposal. Each technical and financial proposal shall be in a separate envelope indicating ORIGINAL or «COPY, as appropriate. The original and all copies of technical proposals shall be placed in a sealed envelope clearly marked Technical Proposal Similarly, the original and all copies of financial proposals shall be placed in a sealed envelope marked Financial Proposal. These two envelopes, in turn, shall be sealed in an outer envelope bearing the address and information indicated in the Data Sheet. The envelope shall be clearly marked: Do Not Open except in the Presence of the Evaluation Committee. As stated above, bidders shall submit five copies of the bids of which one shall be original and clearly marked as original Bid by courier to: Team Leader SUWASA Nigeria BauchiRFP-007 SUWASA Nigeria - Bauchi Office Bauchi State Water Board Headquarters No. 15 Gombe Road Re-insurance Building, First Bank Link Road Bauchi Town, Bauchi State, Nigeria Page 9 of 40

10 SUWASA Nigeria - Bauchi - RFP-007 Tetra Tech may, at its discretion, extend the deadline for submission of proposals by issuing an addendum in accordance with Clause 2.1, in which case all rights and obligations of Tetra Tech and the bidders previously subject to the original deadline will thereafter be subject to the new deadline as extended. Any proposal received by Tetra Tech after the deadline for submission of proposals prescribed in Clause 2.1 may be rejected and returned unopened to the bidder. 4.1 Modification of Proposal Except as otherwise decided by Tetra Tech, modifications to proposals must be received not later than the closing date and time specified for receipt of proposals made in response to the request for proposals. Modifications must be made by written notice signed by the authorized representative who clearly identifies the proposals being modified, the nature of the modification, the reference of the request for proposals as well as the closing date and time for receipt of proposals. Modifications must be delivered in writing to the office designated for receipt of proposals with the reason(s) for the modifications. Modifications may be delivered by . No proposal may be modified by the bidder after the proposal submission deadline. If an emergency or unanticipated event interrupts normal Tetra Tech processes so that proposals cannot be received at Tetra Tech office designated for receipt of proposals by the exact time specified in the RFP and urgent Tetra Tech requirements preclude amendment of the RFP, the time specified for receipt of proposals will be deemed to be extended to the same time of day specified in the RFP on the first work day on which normal Tetra Tech processes resume. 4.2 Withdrawal of Proposal Proposals may be withdrawn by written notice duly signed by the authorized representative at any time prior to award. Proposals may be withdrawn in person by a proposer or his authorized representative, provided his identity is made known and he signs a receipt for the withdrawal of the offer prior to award. 4.3 Rejection The Tetra Tech reserves the right to accept or reject any part of any proposal, and to accept or reject any or all proposals without penalty. 5. Opening and Evaluation of Proposal A two-stage procedure shall be adopted in evaluating the proposals. The technical evaluation shall be carried out first, followed by the financial evaluation. Only those firms that score more than 70% in the technical proposals will have their financial proposals opened. The final score shall be a combined technical/financial score, as indicated below. 5.1 Opening of Proposals Tetra Tech will open the technical proposals, including withdrawals shortly after the deadline for submissions of proposals as noted under clause 2.1. Bidders or their representatives that may be interested may witness the opening of the bids. Page 10 of 40

11 SUWASA Nigeria - Bauchi - RFP Process to be Confidential Information relating to the examination, clarification, evaluation and comparison of proposals and recommendations for the award of a contract shall not be disclosed to bidders or any other persons not officially concerned with such process. Any effort by a bidder to influence Tetra Tech s processing of proposals or award decisions will result in the rejection of the bidder s proposal. 5.3 Evaluation Best offer proposals are requested. Award will be made to the most responsive bid. Tetra Tech reserves the right not to accept the proposal with the lowest cost. Award will be made based on the criteria below. Tetra Tech reserves the right to conduct negotiations and/or request clarifications prior to award. Technical offer will be allocated 80% of the total score. Financial offer will be allocated 20% of the total score. Overall proposal score will be equal to the sum of technical and financial score. The contract will be award to the highest bid score. 5.4 Examination of Proposals and Responsiveness Prior to the detailed evaluation of the proposals, Tetra Tech will determine whether each proposal (a) meets the eligibility criteria; (b) is substantially responsive to the requirements of the Statement of Work; and (c) provides any clarification and/or substantiation that Tetra Tech may require to determine responsiveness pursuant to the RFP. A substantially responsive proposal is one that conforms to all the terms, conditions, and specifications of the RFP documents without material deviation or reservation. A material deviation or reservation is one (a) that affects in any substantial way the scope, quality, or performance of the services; (b) that limits in any substantial way, inconsistent with the RFP documents, Tetra Tech s rights or the bidder s obligations under the contract; or (c) whose rectification would affect unfairly the competitive position of other bidders presenting substantially responsive proposals. If a proposal is not substantially responsive, it will be rejected by Tetra Tech and may not subsequently be made responsive by correction or withdrawal of the non-conforming deviation or reservation. Tetra Tech is not obliged to make any award by virtue of having issued this RFP. The Tetra Tech can only make an award if the proposal fully complies with the technical specifications mentioned in this RFP. 5.5 Technical Proposal Evaluation The Tetra Tech evaluation committee shall carry out its evaluation, applying the evaluation criteria and point system specified below. Each responsive proposal shall be attributed a technical score (St). Firms scoring less than 70% of the technical score shall be rejected and their financial proposals returned unopened. After the technical evaluation is completed Tetra Tech shall inform the bidders who have submitted proposals of their technical points or score. Tetra Tech shall simultaneously (a) notify those bidders whose proposals did not meet the minimum qualifying technical score or were considered non-responsive to the RFP and SOW, that their financial proposals will be returned Page 11 of 40

12 SUWASA Nigeria - Bauchi - RFP-007 unopened after completing the selection process and (b) notify, in writing, the bidders that have secured the minimum overall technical score and inform them about the date, time and location for the opening of the financial proposals. The financial proposals opening date will be set to allow bidders sufficient time to make arrangements for attending the opening. Bidders attendance at the opening of financial proposals is optional and is at subcontractor s option. 5.6 Financial Proposal Evaluation The presence of representatives of subcontractors whose proposals have passed the minimum technical score at the opening of the financial proposals shall be optional. In the case where at least one of the representatives of the bidders whose technical proposals passed the minimum technical score, the overall technical scores, including the break-down by criterion shall be read aloud. The financial proposals will then be inspected to confirm that they have remained sealed and unopened. These financial proposals shall then be opened, and the total prices read aloud and recorded. A copy of the record shall be kept by Tetra Tech for any future inspections. The lowest financial proposal (Fm) shall be given a financial score (Sf) of 100 points. The financial scores of the proposals shall be computed as follows: Sf = 100 Fm F (F = amount of financial proposal in local currency) 5.7 Technical Proposal Evaluation Criteria The points given to evaluation criteria are: Item Points Bidder s specific experience relevant to the assignment 10 The quality of the methodology proposed 30 The qualifications of the key staff proposed for the assignment 50 The extent of participation by nationals among key staff in the performance of the assignment 10 Total 100 Points given to evaluation sub-criteria for qualifications of key staff General qualifications: Education and training length of experience, positions held, time with the 10 consulting firm as staff, experience in developing countries Adequacy for the assignment: Education, training and experience of the project manager in accounting and 60 QuickBooks or comparable software products implementation Experience in the region: Knowledge of the local language, culture, administrative system, government 10 organization Quality of Reference checks 20 Total Final Ranking Proposals shall finally be ranked according to their combined technical (St) and financial (Sf) scores using the weights (T = the weight given to the technical proposal which is 80%; P = the weight given to the financial proposal which is 20%). S = St T % + Sf P% Page 12 of 40

13 SUWASA Nigeria - Bauchi - RFP Clarification of Proposals and Contacting Tetra Tech To assist in the examination, evaluation, and comparison of proposals, Tetra Tech may, at its discretion, ask any bidder for clarification of its proposal, including breakdowns of prices and clarification of its proposed design(s). The request for clarification and the response may be in writing or by , or in a meeting with the bidder. From the time of proposal opening to the time of contract award, if any bidder wishes to contact Tetra Tech on any matter related to the proposal, it should do so in writing or in a meeting arranged by Tetra Tech. 6. Negotiations Prior to the expiration of the validity of the proposal, Tetra Tech shall notify in writing or by the successful bidder that submitted the proposal with the highest combined technical and financial score, that its proposal had been retained, and invite it to negotiate the contract. Sufficient time shall be allotted to the negotiation process. The aim is to reach agreement on all points and initial a draft contract by the conclusion of negotiations. Negotiations shall commence with a discussion of the technical proposal, the proposed methodology (work plan), staffing and any suggestions that have been made to improve the SOW. Agreement shall then be reached on the final SOW, the staffing, and the bar charts, which shall indicate activities, staff, periods in the field and in the home office, staff days, logistics and reporting. Special attention shall be paid to optimizing the required outputs from the bidders within the available budget and to defining clearly the inputs required from Tetra Tech to ensure satisfactory implementation of the assignment. Changes agreed upon shall then be reflected in the financial proposal, using proposed unit rates (no negotiation of the staff month rates). Having selected the bidders on the basis of, among other things, an evaluation of proposed key technical staff, Tetra Tech expects to negotiate a contract on the basis of the staff named in the proposal. Prior to contract negotiations, Tetra Tech shall require assurances that the staff members mentioned in the proposal will be actually available. Tetra Tech shall not consider substitutions during contract negotiations except in cases of unexpected delays in the starting date, incapacity of key technical staff for reasons of health or non-availability of the staff as a result of the person no longer in employment with the bidder (in any case proof of reasons for non-availability shall be requested). The negotiations shall be concluded with a review of the draft form of the contract. Tetra Tech and the successful bidder shall finalize the contract to conclude the negotiations. If negotiations fail, Tetra Tech shall invite the bidder that received the second highest score to contract negotiations. 7. Contract Award After completing negotiations, Tetra Tech shall award the contract to the selected bidder. Simultaneously, Tetra Tech will also notify all bidders who submitted proposals. After contract signature, Tetra Tech shall return the unopened financial proposals to the unsuccessful bidders. Tetra Tech will award the contract, subject to Tetra Tech and/or USAID approval, to the bidder(s) who s Proposal has been determined to be substantially responsive to the RFP. The selected bidder is expected to commence the assignment on or about 04 August Page 13 of 40

14 SUWASA Nigeria - Bauchi - RFP Contract Award Type The contract to be signed will be Firm Fixed Price. 7.2 Right to Accept or Reject Any or All Proposals Tetra Tech reserves the right to accept or reject any Proposal and to annul the RFP process and reject all Proposals at any time prior to award of a contract without thereby incurring any liability to the affected bidder (s) or any obligation to inform the affected bidder (s) of the grounds for the action. 7.3 Start Date of Services The signing of the subcontract for this RFP is anticipated to be on or around 30 July This date is tentative and will depend upon required contracting approvals from Tetra Tech home office and USAID where applicable. 8. Marking and Branding The winning bidder shall comply with the requirements of the USAID Graphic Standard Manual available at or any successor branding policy. 9. Payment Terms Payment will be tied to defined deliverables as follows: 40% after the development of the chart of accounts, conclusion of Accounting training and submission of training report; 40% after the supply and successful installation of the Quick Books Software and phase 1 training; 20% after the conclusion of phase 2 training and acceptance of final report Page 14 of 40

15 SUWASA Nigeria - Bauchi - RFP-007 Section 2 Format for Technical Proposal 10. Cover Letter Date From: [Firm representative] [Firm name] [Firm complete address] To: Team Leader SUWASA Nigeria - Bauchi Office Bauchi State Water Board Headquarters No. 15 Gombe Road Re-insurance Building, First Bank Link Road Bauchi Town, Bauchi State, Nigeria Subject: Re: SUWASA Nigeria - BauchiRFP-007: Accounting Training, QuickBooks Software Implementation Technical Proposal Sir: [Name of firm] herewith encloses a Technical Proposal for selection of our firm to undertake the subject task on behalf of the SUWASA project. Sincerely Signature [Authorized Representative] [Full Name] [Title/Position] [Complete Address] Page 15 of 40

16 SUWASA Nigeria - Bauchi - RFP References Relevant services carried out in the last five years which best illustrate qualifications of the firm. Using the format below, provide information on each reference assignment for which your firm, either individually as a corporate entity or as one of the major companies within a joint venture, was legally contracted. Duplicate tables for completion as required. Name of Client Address Brief Description of Services Provided Start Date (Month/Year) Completion Date (Month/Year) U.S. Dollar Value of Services Name, Position for Client Reference Contact Telephone Name of Client Address Brief Description of Services Provided Start Date (Month/Year) Completion Date (Month/Year) U.S. Dollar Value of Services Name, Position for Client Reference Contact Telephone Page 16 of 40

17 SUWASA Nigeria - Bauchi - RFP Proposed Methodology for Performing the Assignment [Provide narrative] 13. Comments/Suggestions On the Scope of Work (SOW) (List as many points as required): On the data, services, and facilities to be provided by Tetra Tech ARD indicated above (List as many points as required): Page 17 of 40

18 SUWASA Nigeria - Bauchi - RFP Curriculum Vitae (CV) for Proposed Key Staff Proposed Position: Name of Firm: Name of Staff: Profession: Years with Firm: Nationality: Membership in Professional Societies: Detailed Tasks Assigned: Key Qualifications: [Provide an outline of staff member s experience and training most pertinent to tasks on assignment. Describe degree of responsibility held by staff member on relevant previous assignments and give dates and locations. Use up to half a page.] Education: [Summarize college/university and other specialized education of staff member, giving names of schools, dates attended and degrees obtained, not to exceed one-quarter page.] Employment History: [Starting with current position, list in reverse chronological order, previous employment held. List all positions held by staff member since graduation, giving dates, names of employing organization, title of positions held and location of assignments. For experience in last ten years, also give types of activities performed and client references, where appropriate. Use up to three-quarters of a page.] Languages: [Indicate proficiency in speaking, reading and writing of each language: excellent, good, fair, or poor.] Certification: I, the undersigned, certify that to the best of my knowledge and belief, the information provided above correctly describes me, my qualifications, and my experience. Signature of Staff Member (or authorized official from the firm) Date: Page 18 of 40

19 SUWASA Nigeria - Bauchi - RFP Statement of Exclusivity and Availability I, the undersigned, hereby declare that I agree to participate exclusively with the bidder [Insert bidder s name] in the above-mentioned tender procedure. I further declare that I am able and willing to work for the period(s) foreseen for the position for which my CV has been included in the event that this tender is successful, namely: From To 04 August October 2014 I confirm that I am not engaged in another project in a position for which my services are required during the above periods. By making this declaration, I understand that I am not allowed to present myself as a candidate to any other tenderer submitting a tender to this tender procedure. I am fully aware that if I do so, I will be excluded from this tender procedure, the tenders may be rejected, and I may also be subject to exclusion from other tender procedures and contracts funded by the USAID. Furthermore, should this tender be successful, I am fully aware that if I am not available at the expected start date of my services for reasons other than ill-health or force majeure, that the notification of award of contract to the bidder may be rendered null and void. Name Signature of Proposed Staff (or person authorized to sign on behalf of the bidder) Date: Page 19 of 40

20 Tetra Tech SUWASA Nigeria Bauchi - RFP Technical Personnel, Assigned Tasks, Level of Effort (Days Billed) (Add additional positions as deemed appropriate) Name Position Principal Tasks, Duties, Responsibilities Days Page 20 of 40

21 Tetra Tech SUWASA Nigeria Bauchi - RFP Work Plan Timeline Deliverable Period of Execution to Complete Task (Weeks) Total Weeks Submission Date Inception Report (Review BSWSC background information) Develop training material Conduct Accounting Training Develop a Chart of Accounts Installation of QuickBooks on BSWSC computers Provide training and quality control review to ensure proper implementation of Check register, general journal, budget and reporting functions in QuickBooks Provide training and quality control review to ensure proper implementation of inventory and fixed assets functions in QuickBooks. Page 21 of 40

22 Tetra Tech SUWASA Nigeria RFP-007 Section 3 Format for Financial Proposal 18. Cover Letter Date From: [Firm representative] [Firm name] [Firm complete address] To: Team Leader SUWASA Nigeria - Bauchi Office Bauchi State Water Board Headquarters No. 15 Gombe Road Re-insurance Building, First Bank Link Road Bauchi Town, Bauchi State, Nigeria Subject: Re: SUWASA Nigeria - Bauchi RFP-007: Accounting Training, QuickBooks Software Implementation Financial Proposal Sir: [Name of firm] herewith encloses a Financial Proposal for selection of our firm to undertake the subject task on behalf of the SUWASA project. Sincerely, Signature [Authorized Representative] [Full Name] [Title/Position] [Complete Address] Page 22 of 40

23 Tetra Tech SUWASA Nigeria RFP Financial Proposal Summary (Total number of activities to be determined by the bidder) No. Activity Cost 1 Review BSWSC background information 2 Develop training material 3 Conduct accounting training 4 Install QuickBooks on BSWSC computers 5 6 Providing training and quality control review to ensure proper implementation of check register, general journal, budget and reporting functions in QuickBooks Provide training and quality control review to ensure proper implementation of inventory and fixed assets functions in QuickBooks 7 Develop a chart of accounts 8 9 Total Page 23 of 40

24 Tetra Tech SUWASA Nigeria Bauchi RFP Financial Proposal Pricing Detail To be completed for each activity listed in the summary (Add additional activity detail as required) Activity No.: 01 Activity Description: No. Item: Include names of staff persons to be assigned and other direct cost items Unit Qty Unit Cost Total Cost Subtotal Activity 01 Activity No.: 02 Activity Description: No. Item Unit Qty Unit Cost Total Cost Subtotal Activity 02 Activity No.: 03 Activity Description: No. Item Unit Qty Unit Cost Total Cost Subtotal Activity 03 Page 24 of 40

25 Tetra Tech SUWASA Nigeria Bauchi RFP-007 Financial Proposal Pricing Detail To be completed for each activity listed in the summary (Add additional activity detail as required) Activity No.: 04 Activity Description: No. Item Unit Qty Unit Cost Total Cost Subtotal Activity 04 Activity No.: 05 Activity Description: No. Item Unit Qty Unit Cost Total Cost Subtotal Activity 05 Activity No.: 06 Activity Description: No. Item Unit Qty Unit Cost Total Cost Subtotal Activity 06 Page 25 of 40

26 Tetra Tech SUWASA Nigeria Bauchi RFP-007 Financial Proposal Pricing Detail To be completed for each activity listed in the summary (Add additional activity detail as required) Activity No.: 07 Activity Description: No. Item Unit Qty Unit Cost Total Cost Subtotal Activity 07 Activity No.: 08 Activity Description: No. Item Unit Qty Unit Cost Total Cost Subtotal Activity 08 Activity No.: 09 Activity Description: No. Item Unit Qty Unit Cost Total Cost Subtotal Activity 09 Page 26 of 40

27 Tetra Tech SUWASA Nigeria Bauchi RFP-007 Section 4 Statement of Work Bauchi State Water and Sewerage Corporation (BSWSC) Personnel Accounting Training, QuickBooks Software Implementation Background The Sustainable Water and Sanitation in Africa (SUWASA) is a regional initiative to foster the transformation of water and sanitation services delivery in Sub-Saharan Africa to achieve long-term financial sustainability through the application of market-based principles and engagement of the private sector within a conducive policy and regulatory framework. The objective of the task order under which SUWASA is being implemented is focused on catalyzing change among African decision-makers in how they address water supply and sanitation sector challenges, in addition to identifying, qualifying, and supporting reform initiatives that engage regional organizations, USAID mission, privates sector entities, and the international donor community. Under this task order, SUWASA activities are to foster a sustainable knowledge management network using regional and international platforms to showcase successful reform and stimulate the mainstreaming of sustainable, business-oriented operation. As a regional program, SUWASA will demonstrate successful interventions for water and sanitation, improved African organizations capacity to implement such, and complement national efforts through a regional platform in support of at least twelve reform activities in sub-saharan Africa in at least five countries. Priority countries include Angola, Benin, Burundi, Djibouti, Democratic Republic of Congo, Ethiopia, Eritrea, Ghana, Guinea, Kenya, Liberia, Madagascar, Malawi, Mali, Mozambique, Namibia, Nigeria, Rwanda, Senegal, Sierra Leone, South Africa, Sudan, Tanzania, Uganda, Zambia, and Zimbabwe. SUWASA is implementing a three year reform project in Bauchi State. The main objective of the Bauchi water sector reform project is to support the creation of an enabling environment for the Bauchi State Water and Sewerage Corporation (BSWSC) to have full operational and financial autonomy, accountability and efficiency in its operations. This should lead to increased accessibility of water by the residents of the urban areas in Bauchi State. Scope of the Assignment BSWSC currently maintains a series of manual double entry accounting records. The current method of accounting has prevented BSWSC from producing standardized periodic financial reports including balance sheets, income statements and cash flow statements. The BSWSC intends to improve the current situation by (1) Training employees in the Finance Department on double entry accounting methods and financial reporting principles (2) Procurement, installation and implementing QuickBooks Accounting Software and (3) Development of a chart of accounts for easy coding and identification of items. A Nigerian consulting firm will be contracted to provide accounting training, QuickBooks implementation assistance and also develop a chart of accounts as further described below. Accounting Training The BSWSC employees have no practical experience with computer aided double entry accounting systems. The selected consulting firm is expected to provide training in order to promote a smooth transition from the manual double entry systems used by BSWSC to a double entry system on Page 27 of 40

28 Tetra Tech SUWASA Nigeria Bauchi RFP-007 QuickBooks. Upon the conclusion of the training program, the BSWSC employees are expected to have a better understanding of and be familiar with: Double entry accounting as evidence by completion of both theoretical and practical trainings and classroom exercises that include the preparation of journal entries, posting entries to a general ledger, preparation of a trial balance and financial statements for a typical small business. Recording cash receipts and cash disbursement transactions in QuickBooks Recording monthly accrual entries (accounts receivable, accounts payable, accrued liabilities, inventory etc.) in the QuickBooks general journal. Financial statement presentations for water companies based on International Financial Reporting Standards Financial statement ratios and other measures used to evaluate the performance of a water company The training is to be provided over a period of one week in the premises of the BSWSC through five one - half day sessions. Prior to commencement of the training sessions the consulting firm should spend a few days on site at the BSWSC to meet with the managers in the Finance Department and obtain a general understanding of the existing record keeping systems. The consulting firm is expected to coordinate overall training activities with the SUWASA Team Leader or his representative. Textual study material is to be provided to trainees that explain accounting theory and process and illustrates accounting entries, records and reports. These are to be augmented with textual material and classroom lectures, illustrations and practical exercises in reference to the BSWSC, including but not limited to question and answer sessions. At the conclusion of the training program the majority of the participants should be able to complete the suggested classroom exercise included in Annex 1 to this RFP which is representative of the situation at the BSWSC. The selected consulting firm should have prior experience in providing basic accounting training in Nigeria with organizations the size of BSWSC. The consulting firm should have access to previously prepared training material including lecture slides, classroom exercises, quizzes and test that can be adapted to BSWSC needs. QuickBooks Implementation Assistance Current Situation The current accounting system is 100% manual. It essentially consists of several manual check books, petty cashbook, subsidiary ledgers and a cash imprest fund. A manual general ledger is maintained. Cash receipts / cash disbursement report is prepared on request from the management. Transaction volume is currently very low but expected to increase in the future. Current transaction volume is summarized in the table below: Transaction Type Daily cash receipts Checks written Petty cash/imprest Fund currency Approximate Monthly Volume Each day s bank deposit is recorded as a transaction in the existing accounting system broken down by revenue categories. This is handled by the cashier in the commercial department. Several checks per month are made payable to cash and used to fund an Imprest Fund. Another 5 to 10 checks are written to vendors each month depending on the availability of funds. All checks issued are recorded in a check book issue register and on manual spreadsheets that detail the classification of the check payment. Petty cash amount is reimbursed to the cashier and Page 28 of 40

29 Tetra Tech SUWASA Nigeria Bauchi RFP-007 disbursements Payroll to temporary employees recorded in the petty cashbook that details the classification of the payments and the end of the day currency balance. About 140 currency payments are made to temporary employees; all made on one day of the month. The Bauchi State Government pays all permanent BSWSC employees (about 400). The State also pays for electricity and chemicals needed by BSWSC and approved capital project expenditures. A manual general ledger is maintained and there are fixed asset records but no financial values. Objective QuickBooks has been selected as an appropriate accounting software package for BSWSC. The implementation of QuickBooks is intended to achieve the following objectives: Enable BSWSC to more easily prepare monthly cash receipts and cash disbursement statements Provide managers with timely access to detailed cash receipts and cash disbursement information Enable the company to prepare balance sheets, income statements and cash flow statements that include payments made by the Bauchi State Government on behalf of the BSWSC Track and monitor inventory activity and individual commodity and part balances on a daily basis Maintain records that detail the value and condition of fixed assets Support more detailed budget to actual reporting and cost control Improve internal accounting control BSWSC wishes to implement QuickBooks in a two phased approach. The first phase should allow BSWSC to enter its daily cash deposit and all checks and currency payments into QuickBooks using the Check Register functions of QuickBooks. All Bauchi State Government payments made on behalf of BSWSC will also be recorded in QuickBooks using the General Journal function. Periodic closing entries will also be recorded using the General Journal function to record changes in accounts receivable, inventory and fixed assets. Exhibit 1 includes additional information that describes what the accounting systems should look like after Phase 1 is implemented. Exhibit 2 includes Phase 1 and Phase 2 network plans for QuickBooks. Phase 2 will include implementation of the inventory and fixed assets modules. Phase 2 assistance will be requested immediately after Phase 1 is fully implemented. Implementation Assistance Phase 1, implementation assistance may, at the selected firm s choice, commence concurrently with the accounting training. At a minimum the Phase 1 implementation assistance should include the following activities: Conduct a workshop session with BSWSC Finance Department managers and employees designated as key QuickBooks users (total of 5 including managers) to discuss and agree on the consulting firms implementation plan. Supplement the QuickBooks training provided in the Accounting Training Program to ensure key users are fully conversant with the Phase 1 needs (adding / changing accounts, check register, journal entries, and financial reports). Review source documents and worksheets that will be used as the basis for entry to QuickBooks to ensure they are complete and include necessary account and list names and numbers. Page 29 of 40

30 Tetra Tech SUWASA Nigeria Bauchi RFP-007 Configure the computer network and all required cabling (See Exhibit 2) and install QuickBooks on the network with necessary password protections, user authorizations and other security features needed. Provide training to the BSWSC employee designated as the network Administrator on backup and other security features. Provide daily oversight of BSWSC employees data entry of historical data into QuickBooks from January 1, 2014 to present date. Provide hands-on training on QuickBooks report selection and methods to download QuickBooks data to Excel. Customize reports to meet BSWSC reporting needs and review the first month of reports prepared using QuickBooks for completeness and accuracy. Develop a chart of accounts that will be used for proper coding. Be available for questions and trouble shooting for a period of two months as needed. Working Arrangements and Schedule Except for preparatory time, all of the consulting firm s work efforts should occur at the premises of the BSWSC. The consulting firm must coordinate all efforts with the SUWASA Team Leader or his representative. Lecture session, training material and all written deliverables shall be written in English. SUWASA will be responsible for acquiring computers needed to implement QuickBooks. The consulting firm will be responsible for purchasing QuickBooks. The consulting firm will provide its own computers, projectors and any other equipment needed to provide the requested services and install the needed computer network. Additional Information Attached Exhibits 1 2 and Annex 1 provide additional information about the projections and the emerging structure of the BSWSC financial management system. Page 30 of 40

31 Tetra Tech SUWASA Nigeria Bauchi RFP-007 Exhibit 1 - Phase 1 Accounting System As shown below the proposed accounting system will include a combination recurring cash based entries and month end entries to record State payments made on behalf of BSWSC for operating expenses and capital project expenditures. Additional closing entries will be needed to prepare IFRS compliant financial statements. Recurring Entries Cash Receipts Check Disbursements Imprest Fund # 1 Temporary Payrolls Quickbooks General Ledger Month End Entries State Payroll Electricity / Chemicals CAPEX Closing Entries Accounts Receivable Fixed Assets Inventory Cash Receipts Cashiers in the Finance Department will accept payments from customers at a payment window and provide the customer with a payment receipt. The Cashier will enter the customer payment into the CIS 1. At the end of the day the Cashier will print a Daily Cash Receipts Report from the CIS that will detail receipts by customer and a summary of receipts by revenue codes. The Cashier will balance the day s receipts to the Daily Cash Receipts Report and send the cash and Daily Cash Receipts Report to the Chief Accountant (Garba Bawa). The Chief Accountant or designee will deposit the cash into one of BSWSC s bank accounts and record the days receipt into QuickBooks using the Check Register function. Check Disbursements At the beginning of each day the AGM for Finance will review the updated Check Register that shows the previous day s activity in each of BSWSC s banks accounts including the ending cash balances. The AGM for Finance will initiate and sign checks needed during day. The GM will also sign the checks. The checks will be sent to the Accounting Manager/Chief Accountant for distribution to vendors. If the check is for cash the Chief Accountant will go to the bank to cash the check and give the cash to the Imprest Fund Accountant. The Chief Accountant or his designee will assign an account code to each check written and enter the check number, payee, amount and account code into QuickBooks using the Check Register function. Imprest / Petty Cash Fund The Petty Cash Fund is currently held by a cashier and used to make currency payments to vendors. The Petty Cash Fund is currently replenished each day. The Cashier will make currency disbursement to vendors and record the payee, amount and account code for each payment into QuickBooks using the Check Register function. At the end of each day the Cashier will balance the remaining currency to the balance shown in QuickBooks. Temporary Payrolls Temporary employees are generally involved in maintenance activities. They are paid monthly and paid in currency. The amount of the temporary payroll will be calculated by 1 CIS (Customer Information System) includes computers and software to bill customers, collect customer payments and maintain a detail subsidiary record of accounts receivable by customer. Page 31 of 40

32 Tetra Tech SUWASA Nigeria Bauchi RFP-007 employee on an Excel worksheet. The AGM for Finance will review the Excel worksheet and the Chief Accountant will write a check to cash for the total amount of the monthly temporary employee payroll. Temporary employees will come to the Finance Department to collect their earnings. Each employee will sign the Excel worksheet to acknowledge that they have received payment. Month End Entries At the end of each month the Chief Accountant or his designee will compile information obtained from the State concerning cash payments made by the State on behalf of BSWSC. These payments include salaries and benefits of permanent employees, electricity, and capital project expenditures. The Chief Accountant or his designee will record the total amount of these State Payments into QuickBooks using the General Journal function. Closing Entries -Closing entries are needed to prepare IFRS compliant financial statements. The closing entries are needed to (1) record the change in accounts receivable balances from the previous closing balance, (2) reclassify project cost recorded as construction work in progress to a fixed asset account, (3) record depreciation expense and (4) record the change in inventory balances from the previous closing balance. All of the closing entries will be entered into QuickBooks using the General Journal. The accounting processes and entries to QuickBooks will be further detailed in an accounting manual. Page 32 of 40

33 Tetra Tech SUWASA Nigeria Bauchi RFP-007 Exhibit 2 QuickBooks Users Inventory Specialist AGM Finance Fixed Assets Accountant Petty Cash Accountant QuickBooks Accounting Manager General Ledger Accountant Daily Cash Deposit From Cashier QuickBooks Users 1. Phase 1 Accounting Manager/Chief Accountant, GL Accountant and Petty Cash Accountant are only users. GL and Petty Cash Accountant s enter data into QuickBooks using the Check Register function. All others continue with existing pen and paper worksheets and provide summary data to Accounting Manager who enters data into QuickBooks using the General Journal. 2. Phase 2 Will proceed immediately after Phase 1 is implemented and include implementation of the inventory and fixed asset modules of QuickBooks. Page 33 of 40

34 Tetra Tech SUWASA Nigeria Bauchi RFP-007 Annex 1 - BSWSC Accounting Classroom Exercise This classroom exercise is intended to provide attendees with a basic understanding of double entry bookkeeping, accounting policies and financial statement presentation for a hypothetical water company. The hypothetical water company is called the Perfect Water Company. The Perfect Water Company keeps its books on the cash basis and converts the books to be IFRS compliant at the end of the year. The classroom exercise requires attendees to make a series of annual journal entries, post the journal entries to general ledger accounts, prepare a trial balance and prepare an annual balance sheet and income statement. The classroom exercise uses manual general ledger accounts to allow attendees to make and post a series of financial transactions. When a double entry accounting software package (QuickBooks) is installed many of the financial transactions will be posted to the general ledger accounts automatically based on the Check Register function in QuickBooks. However, it is important for attendees to first understand the concept of double entry accounting before a double entry based accounting software package is implemented. These concepts will be illustrated and discussed as part of the classroom exercise. The classroom exercise will also include discussion of the accounting policies applicable to water companies that are needed to comply with International Financial Reporting Standards (IFRS). Opening Balances The Perfect Water Company s general ledger account balances at January 1, 2013 are shown below. All amounts in a make believe world currency. Debit Credit Cash in Bank 700,000 Petty Cash 300,000 Accounts Receivable 2,000,000 Allowance for Doubtful Accounts 600,000 Inventory 1,000,000 Prepaid Expense 0 Fixed Assets 26,000,000 Accumulated Depreciation 19,000,000 Accounts Payable 200,000 Contributed Capital 10,000,000 Retained Earnings 200,000 Totals 30,000,000 30,000,000 The Perfect Water Company also has the following revenue and expense accounts included in the general ledger as of January 1, 2013: Service to Customers State Operating Transfers All Other Revenues Salaries, Wages and Benefits Chemicals, Electricity & Maintenance Other Operating Expenses Depreciation Expense Bad Debt Expense Debit Credit During the year the Perfect Water Company had the following financial transactions that need to be recorded in the general ledger. Page 34 of 40

35 Tetra Tech SUWASA Nigeria Bauchi RFP-007 Revenue Transaction 1. During the year the Company collected 6,000,000 from bills sent to customers 2. During the year the Company collected 50,000 from other revenue sources Expense Transactions 3. During the year the State paid the payroll for permanent employees in the amount of 4,500, During the year the State paid invoices from the electricity company and chemical vendors in the amount of 3,000, During the year the Company wrote checks to vendors in the amount of 2,900,000 for other operating expenses 6. During the year the Company wrote checks to the Petty Cash Fund in the amount of 1,000, During the year the Company made petty cash payments for other operating expenses in the amount of 900, On December 15, 2013, the Company made a pre-payment to a maintenance contractor for 500,000. The contractor will not start work until after January 1, Fixed Asset Transactions 9. During the year the Company purchased equipment for 100, On July 1, 2013, the State transferred ownership of a new water treatment plant to the Company. The water treatment plant cost 30,000, The Company s fixed asset register indicates that annual depreciation on all fixed assets is equal to 2,000,000. Of this amount 1,900,000 is applicable to assets that were contributed by the State and 100,000 is applicable to assets paid for by the Company. Page 35 of 40

36 Tetra Tech SUWASA Nigeria Bauchi RFP-007 Close-out Revenue and Expense Accounts 12. At year end unpaid customer bills per the billing system totaled $2,500, At year end management estimated that 700,000 of the unpaid customer bills cannot be collected 14. At year end the inventory of chemicals and pipe material totaled 1,200, At year end unpaid invoices to vendors for other operating expenses totaled 200, Management reviewed the revenue and expense accounts and directed the Finance Department close the books for the year. Classroom exercise A. Prepare journal entries for each of the above financial transactions and discuss the accounting principles related to each journal entry. B. Post the journal entries to the general ledger accounts and prepare a trial balance C. Based on the trial balance amounts prepare a balance sheet and income statement for the Perfect Water Company as of December 31, Journal Entries (Solution in grey 1. Record collections from customers Debit Credit Cash in Bank 6,000,000 Service to customers 6,000, Record other revenue collection Cash in Bank 500,000 Other revenues 500, Record State payments for employee payrolls Salaries, Wages & Benefits 4,500,000 State Operating Transfers 4,500, Record State payments for electricity & chemicals Chemicals, Electricity& Maintenance 3,000,000 State Operating Transfers 3,000, Record check payments to vendors Other Operating Expenses 2,900,000 Cash in Bank 2,900, Record check to Petty Cash Petty Cash 1,000,000 Cash in Bank 1,000, Record Petty Cash payments to vendors Other Operating Expenses 1,200,000 Petty Cash 1,200, Record prepayment to maintenance contractor Prepaid Expenses 500,000 Page 36 of 40

37 Tetra Tech SUWASA Nigeria Bauchi RFP-007 Cash in Bank 500, Record purchase of equipment Fixed Assets 100,000 Cash in Bank 100, Record transfer of water plant from State to Company Fixed Assets 30,000,000 Capital Contributions 30,000, Record annual depreciation Depreciation Expense 100,000 Capital Contributions 1,900,000 Accumulated Depreciation 2,000, Record change in accounts receivable Accounts Receivable 500,000 Service to Customers 500, Record bad debt expense for the year Bad Debt Expense 100,000 Allowance for Doubtful Accounts 100, Record change in inventory Inventory 200,000 Chemicals, Electricity & Maintenance 200, Record year end accounts payable Other Operating Expenses 200,000 Accounts Payable 200, Close revenue expense accounts to retained earnings Service to Customers 6,500,000 Other Revenues 500,000 State Operating Transfers 7,500,000 Salaries, Wages & Benefits 4,500,000 Chemicals, Electricity & Maintenance 2,800,000 Depreciation Expense 100,000 Bad Debt Expense 100,000 Other Operating Expenses 4,300,000 Retained Earnings 700,000 GENERAL LEDGER (Solution in grey Operating Cash Date Trans. Description Debit Credit Balance # 1/1/2013 Beginning balance 700,000 1 Collections from customers 6,000,000 2 Other revenue collections 500,000 5 Check payments to vendors 2,900,000 6 Check to Petty Cash 1,000,000 Page 37 of 40

38 Tetra Tech SUWASA Nigeria Bauchi RFP Prepayment to maintenance contractor 500,000 9 Purchase of equipment 100,000 2,700,000 Petty Cash Fund Date Trans. # Description Debit Credit Balance 1/1/2013 Beginning balance 300,000 6 Check to Petty Cash 1,000,000 7 Petty Cash payments to vendors 1,200, ,000 Accounts Receivable Date Trans. # Description Debit Credit Balance 1/1/2013 Beginning balance 2,000, Record change in accounts receivables 500,000 2,500,000 Allowance for Doubtful Accounts Date Trans. # Description Debit Credit Balance 1/1/2013 Beginning balance (600,000) 13 Record bad debt expense for the year 100,000 (700,000) Inventory Date Trans. # Description Debit Credit Balance 1/1/2013 Beginning balance 1,000, Record change in inventory 200,000 1,200,000 Prepaid Expenses Date Trans. # Description Debit Credit Balance 1/1/2013 Beginning balance 0 8 Prepayment to maintenance contractor 500, ,000 Fixed Assets Date Trans. # Description Debit Credit Balance 1/1/2013 Beginning balance 26,000,000 9 Purchase of equipment 100, Transfer of water plant from State to Co. 30,000,000 56,100,000 Accumulated Depreciation Date Trans. # Description Debit Credit Balance 1/1/2013 Beginning balance (19,000,000) 11 Annual depreciation 2,000,000 (21,000,000) Accounts Payable Date Trans. # Description Debit Credit Balance 1/1/2013 Beginning balance (200,000) 15 Record year end accounts payable 200,000 (400,000) Contributed Capital Date Trans. # Description Debit Credit Balance 1/1/2013 Beginning balance (10,000,000) 10 Transfer of water plant from State to Co. 30,000, Annual depreciation 1,900,000 (38,100,000) Retained Earnings Date Trans. # Description Debit Credit Balance 1/1/2013 Beginning balance (200,000) Page 38 of 40

39 Tetra Tech SUWASA Nigeria Bauchi RFP Net profit for the year 2,700,000 (2,900,000) Service to Customers Date Trans. # Description Debit Credit Balance 1 Collections from customers 6,000, Record change in accounts receivable 500,000 6,500,000 Other Revenues Date Trans. # Description Debit Credit Balance 2 Other revenue collections 500, ,000 Salaries, Wages & Benefits Date Trans. # Description Debit Credit Balance 3 State payments for employee payrolls 4,500,000 4,500,000 Chemicals, Electricity& Maintenance Date Trans. # Description Debit Credit Balance 4 State payments for elect. & chemicals 3,000, Record change in inventory 200,000 2,800,000 Depreciation Expense Date Trans. # Description Debit Credit Balance 11 Annual depreciation 100, ,000 Bad Debt Expense Date Trans. # Description Debit Credit Balance 13 Record bad debt expense for the year 100, ,000 Other Operating Expenses Date Trans. # Description Debit Credit Balance 5 Check payments to vendors 2,900,000 7 Petty Cash payments to vendors 1,200, Record year end accounts payable 200,000 4,300,000 State Operating Transfers Date Trans. # Description Debit Credit Balance 3 State payments for employee payroll 4,500,000 4 State payments for elec. & chemicals 3,000,000 7,500,000 TRIAL 12/31/2013 (Solution in grey) Debit Credit Cash in bank 2,700,000 Petty cash 100,000 Accounts receivable 2,500,000 Allowance for doubtful accounts 700,000 Inventory 1,200,000 Prepaid expense 500,000 Fixed assets 56,100,000 Accumulated depreciation 21,000,000 Accounts payable 400,000 Contributed capital 38,100,000 Retained earnings 2,900,000 Totals 63,100,000 63,100,000 Page 39 of 40

40 Tetra Tech SUWASA Nigeria Bauchi RFP-007 Perfect Water Company Balance Sheet As of December 31, 2013 (Solution in Grey) Assets Cash in bank 2,700,000 Petty cash 100,000 Accounts receivable, net 1,800,000 Inventory 1,200,000 Fixed assets, net 35,100,000 Prepaid expenses 500,000 Total assets 41,400,000 Liabilities Accounts payable 400,000 Total liabilities 400,000 Equity Contributed capital 38,100,000 Retained Earnings 2,900,000 Total equity 41,000,000 Total liabilities & equity 41,400,000 Perfect Water Company Income Statement For the year ended December 31, 2013 Revenues Service to customers 6,500,000 Other revenues 500,000 Total revenues 7,000,000 Operating Expenses Salaries, wages & benefits 4,500,000 Chemicals, electricity& maintenance 2,800,000 Depreciation expense 100,000 Bad debt expense 100,000 Other operating expenses 4,300,000 Total operating expenses 11,800,000 Operating loss (4,800,000) State Operating Transfers 7,500,000 Net Income 2,700,000 Beginning Retained Earnings 200,000 Ending Retained Earnings 2,900,000 Page 40 of 40