Invitation to Quote: Provision of INTERREG (IVB) NWE First Level Control FLC Services To audit the LAMILO project
1. Background to Institute for Sustainability The Institute for Sustainability, hereafter referred to as 'the Institute', is an independent charity established in 2009 to support cross sector collaboration and innovation. Its mission is to significantly accelerate the delivery of economically, environmentally and socially sustainable cities and communities. It is focused on practical and affordable solutions to address today's environmental challenges, in a way that provides commercially viable solutions that deliver sustainable development and support significant economic growth. Europe plays an important role in the strategy and activities of the Institute. The Institute participates in various EU-funded projects. This includes international projects funded from the INTERREG IVB North West Europe Region programme. The Institute seeks to appoint a First Level Controller at Partner level to verify that the expenditure declared by the INTERREG IVB North West Europe Region project LAMILO to the Programme Secretariat is in line with the requirements of Article 15 of the (EC) Regulation 1080/2006 and Article 20 of the (EC) Regulation 1080/2006. The Institute s appointed FLC will be required to undertake a review of the Institute s own claim, including the claims of its three sub-partners: Transport for London (TfL), The Stobart Group PLC and the UK Rail Freight Group (RFG). In addition, the appointed FLC will be required to provide a Second Level Control audit on all of the other fourteen partner s project claims. Three of the five claims have already been submitted, and a Request for Change has been submitted which may result in one additional claim and the introduction of one new full partner. We are seeking alternative services as the existing FLC may not be able to continue to provide the current FLC services due to a significant shift in their business workflow planning. 2. Background and aim One of the fundamental necessities of INTERREG projects is a sound financial management enabling the lead partner to carry out its duty of budget control and auditing to the European Commission. Due to the Partner s legal duties and financial responsibilities in running these projects, it is absolutely essential to seek a First Level Controller (FLC) who checks and signs off the claims for payment to the lead Partner. All FLCs must be independent and designated by the national authorities in each beneficiary country. The appointed FLC will be required to service the LAMILO project from September 2014 to September 2015. LAMILO FLC ITT July 2014 Page 2
3. Background to project The project involves a transnational partnership within the INTERREG North West Europe Programme area and includes partners from several countries (the UK, Belgium, France, Netherlands, Germany and Luxembourg). Project Aim Start date Completion date LAMILO Lamilo aims to create a step change in freight deliveries by ensuring that the last mile is fully considered in freight logistics. The project aims to make deliveries to streets, towns and cities more efficient and less polluting by planning, testing and delivering new strategies and demonstrators. December 2012 June 2015 (with a possible extension to September 2015) 4. Background to Process In order to apply for an instalment of ERDF funding, an audited Project Financial report (a payment claim accompanied by Verification of Expenditure Sheets) must be submitted to the INTERREG IVB Joint Technical Secretariat (JTS) by the Lead Beneficiary, the Institute. Financial and project activity reports will be requested by the Programme Secretariat twice a year - normally end of February and end of August throughout the lifetime of the project. Together with the Activity Report (which is prepared by the Project Manager), Payment Claims form the basis of the monitoring and assessment of the progress of the Lamilo project. The additional purpose of these documents is to foresee and overcome potential difficulties and delays in the implementation process. They also allow the Joint Technical Secretariat to monitor expenditure and to ensure that regular payments are made to the project via the Lead Partner. An independent audit of each Payment Claim, both at partner and lead partner level, has to take place before the lead Partner claim can be submitted to the JTS. This is to be carried out by the First Level Controller. The FLC is expected to hold a current practising certificate, or equivalent, issued by one of the bodies listed below: LAMILO FLC ITT July 2014 Page 3
(1) The institute of Chartered Accountants in England and Wales (2) The Institute of Chartered Accountants of Scotland (3) The Association of Chartered Certified Accountants (4) The Chartered Institute of Public Finance and Accountancy (5) The Institute of Chartered Accountants in Ireland (6) The Association of Authorised Public Accountants (7) The Association of International Accountants 5. Requirement It is essential that the FLC will is able to ensure full compliance with the INTERREG IVB NWE guidance note regarding FLCs. A copy of this is available via the N.W.E website via the following link: http://www.nweurope.eu/index.php?act=page&page_on=documents&id=397 The FLC will be required specifically, to verify the following during the control: If the project report is correct, i.e. no essential errors or elements missing If the conditions for receiving the grant are all fulfilled; If the grant is used for the purpose as mentioned in the contract; If the information given by the final beneficiaries is correct and properly documented. In principle, the control would be carried out on the spot and cover 100% of expenditure. It would, however, be possible to apply sample checks, if these provide reasonable assurance regarding the entire amount of expenditure. If the sample checks raise doubt about the overall eligibility of expenditure, the sample would have to be expanded until an opinion can be made without reasonable doubt. 6. Project Management, Reporting and Timing The project is managed by dedicated resources from the Institute. The successfully appointed FLC is expected to support the Institute in the fulfilment of the requirement as detailed in section 5. The Institute is based at: 49-51 East Road, London, N1 6AH, and the core management teams will also be located at this address. LAMILO FLC ITT July 2014 Page 4
Whilst remote working is deemed acceptable, it will also be important for the FLC to attend meetings at the Institute s offices as required. This is likely to be around two days per claim for each of the five project claims. The working language will be English and all reporting has to be done in English. The contract will be between the successfully appointed FLC and the Institute as the lead partner organisation. The contract manager will be the Project Director for the project. The day-to-day client contact for the FLC during the project will be the Project Manager / Project Co-ordinator and the Institute s designated finance officer. Timing Advertisement of ITT 25 July 2014 Last day queries can be submitted 6 August 2014 Deadline for receipt of quotes 8 August 2014 Assessment of quotes and selection of FLC 15 August 2014 Referral to CLG for approval 22 August 2014 Anticipated Formal Contract Commencement (pending DCLG approval) 1 September 2014 (TBC) *timescales apply for future claims until project completion. 7. Response The appointed FLC needs to display familiarity and experience not only with European funding but also with the generality of funding and finance related legal issues imposed by JTS. The lead partner will insist upon named persons that will be the interface between the FLC and the client. One single responsible, senior manager within the appointed organisation will need to be named and assigned to the contract. His or her replacement will need to be discussed with the client and the replacement approved by the client and the core executive of the project (as necessary). The total cost of the audit service for all claims must be provided in UK Pounds Sterling. In the cost breakdown, costs should be itemized against named staff resources and identified as day rates, commensurate with the INTERREG NWE Programme FLC range of fees. Costs should identify VAT separately. Please provide in your quote: LAMILO FLC ITT July 2014 Page 5
1. A short profile of the company (maximum one side A4); 2. An overview to each activity required within FLC audit, the number of days envisaged to complete each activity and the overall time required to complete each FLC audit (one side A4); 3. The day rate for the FLC and the total charge per audit including travel and disbursements. Each audit will include the Institute s own claim, the claims from its three sub partners and also the second level control audit of the other fourteen partners claims. 4. A capability and capacity statement of the Company, with particular focus on ERDF and INTERREG financial management expertise (one side A4); 5. Proposed named consultants including their CVs and a summary statement of their capacity and experience to meet the relevant requirements (one side A4); 6. Three references of other clients, preferably one reference at European Union, INTERREG or National Government level. Organisations must state if any of their proposed services require the use of sub-contractors. The Institute reserves the right to reject the use of any particular sub-contractor. The appointment of the successful FLC is subject to a formal approval by the Department for Communities and Local Government (DCLG), the UK body designated for the approval of FLCs. 8. Contract Award The Institute considers that this contract may be suitable for small or medium enterprises (SMEs) economic operators The contract will be awarded on the basis of the most economically advantageous proposal and price; approach to the requirement and quality of the proposed team (to include CVs detailing relevant experience of the key personnel and a named contact with biographical details). The award of the contract to the successful tender is subject to final approval of the revised Lamilo application form and the receipt of the subsidy contract from the Interreg Joint Technical Secretariat (N.W.E). The Institute reserves the right not to proceed with awarding this contract. Please return your tender submission to info@instituteforsustainability.org.uk by 4pm on Friday, 8 August 2014 with TENDER FLC SERVICES FOR LAMILO in the subject line LAMILO FLC ITT July 2014 Page 6
9. Terms and Conditions The contract will be awarded on the basis of the Institute s standard Terms & Conditions of contract and a copy of this can be found via the following web link: http://www.instituteforsustainability.co.uk/uploads/file/consultanttc.pdf 10. Further information Any requests for further information regarding this tender should be made in writing or email to: Lali Virdee Institute for Sustainability 49-51 East Lane London, N1 6AH Tel: (020) 7517 1834 E: lali.virdee@instituteforsustainability.org.uk LAMILO FLC ITT July 2014 Page 7