Triangle Housing Association Ltd

TRIANGLE HOUSING ASSOCIATION LTD

INTERNAL AUDIT TENDER

Tenders must be received at 60 Eastermeade Gardens, Ballymoney no later than 12 noon on Friday 5th June 2015 CONTENTS

Section Description

Section A Background

Section B Statement of Requirements

Section C Documents to be Submitted

Section D Additional Information

2 Section A

Background

Triangle Housing Association Limited (“Triangle” or “The Association”) wishes to engage a service provider to provide internal audit services to the Association. Triangle’s mission is to deliver quality housing and appropriate support to people in need, promoting equality and opportunity for all. Triangle develop, manage and maintain social rented accommodation for people with special needs and also general needs housing. Triangle also provide housing floating support services and progression to employment services. It has a turnover of over £10million and employs approximately 350 staff. The association uses specialist housing association integrated accounting software and prepares monthly and quarterly management accounts for each area of the business.

Triangle have over 700 units of accommodation, some of which are managed by joint management agents, who provide a wide range of care and support services.

The Association is required to work within the regulatory framework for Northern Ireland Housing Associations which is the responsibility of the Department for Social Development (DSD). More details can be found from their website www.dsdni.gov.uk

Internal Audit is required to provide assurance to the Board of Management on the entire system of internal control. The work of the firm must fully adhere to the standards and guidelines for the professional practice of internal audit as set out by the Institute of Internal Auditors and the auditor must be suitably qualified.

An important element of this tender process is that the selected firm must be able to review the entire operations of the Association and that they comply with the DSD guides. Also IT, efficiency, risk management and governance issues are as important to the Association as general assurance work. Tenderers should therefore ensure that their proposal clearly sets out how their service will assist the Association in these areas.

Section B

Statement of Requirements

SECTION C outlines the information that must be included in tender submissions. Failure to provide all or part of the information may result in your submission being excluded from the evaluation process.

The contract shall cover the internal audit service for the three financial years 2015/2016 to 2017/2018.

The contract will be for a period of 36 months, with the possibility of an extension of a further 24 months, subject to satisfactory performance.

The auditor will be expected to provide an estimated twenty five days per annum conducting the internal audit including reporting and attending two, one hour evening audit and risk committees.

Firms may be required to provide additional days at an agreed rate.

3 The Internal Auditor will report to the Audit and Risk Committee and to Triangle senior management.

The scope of the Internal Audit work extends to all operations and records, financial and operational, of the Association and on a sample basis some tenants finance where Triangle staff assist supported tenants.

The scope of the work to be delivered is as follows:

 The development of an internal audit needs assessment and strategic audit plan;  The plan must report on compliance with DSD requirements;  The delivery of internal audit services as specified by the agreed plan;  The provision of other special reports such as investigations into specific control breaches, as required; and  Advice and support to the Association in its implementation of a risk management strategy.

The internal audit firm may also be invited to provide certain management consultancy services as agreed. Applicable daily rates for specialist consultancy staff should be provided.

To avoid potential conflicts of interest, the Association may wish to specifically exclude the successful Internal Audit firm from undertaking certain consultancy assignments on their behalf.

There will be performance indicators set down for the measurement of the quality and efficiency of service delivery.

 Timely issue of draft report on completion of fieldwork.  Quality of report.  Performance against agreed plan.  Proportion of manager input on individual audit assignments.  Cost/Value for money of the report.

Three hard copies of the proposal should be submitted by 12 noon on 6th June 2015, to 60 Eastermeade Gardens, Ballymoney, Co Antrim, BT53 6BD. All applications will be acknowledged. When returning your proposal you are required to place and seal it in an inner envelope endorsing the work description and your company name. This envelope should then be placed in an outer envelope addressed to the association. Late submissions will not be accepted under any circumstances.

Firms will be judged on the following evaluation criteria;

 The firm’s internal audit methodology, particularly in the areas of risk assessment and quality assurance;  The ability of the firm to “add value” by providing useful business advice. The Association requires more than purely a compliance audit;  The quality and depth of experience and qualifications of the proposed internal audit team;

 A detailed understanding of the Housing Association sector and of auditing complex not-for-profit organisations;

4  The firm’s capacity and adequacy of resources to offer consultancy services; and  The cost/value for money of the internal audit service.

Triangle will not be liable to re-imburse any costs incurred by the firm during this tender process.

Tender assessment will be carried out by a panel representing the board of management. The panel will be comprised of board members and senior staff. Triangle wishes to maximise the value obtained from the internal audit service and does not bind itself or is obliged to accept the lowest tender.

Firms should identify any work they are currently carrying out or competing for which could cause a conflict of interest, and indicate how such a conflict would be avoided.

Section C

Documentation to be submitted

To facilitate the needs of the Tender Committee in the evaluation process, all proposals submitted must follow the following format. Failure to supply all or any part of the requested information in the required format may result in a proposal being excluded from the evaluation process.

Section 1 Qualifications and experience of internal audit and within the housing association/not for profit sector. Specifically those staff working on the proposed audit.

Section 2 Organisation chart for your firm, stating the proposed total number of staff working on the internal audit assignment. Please state which office will be responsible for managing the contract.

Section 3 Details of previous experience of providing internal audit services to, the voluntary sector and the Registered Social Landlord/Housing Association sector and awareness of the DSD requirements. Trinagle is seeking a firm that is fully familiar with the operating environment and regulatory issues faced by Housing Associations.

Please provide details of Registered Social Landlords/Housing Associations that your firm currently acts for. State what type of service is provided, when the contract commenced and the number of days internal audit service provided per annum.

Triangle will want to take up references from two of your current clients. Please include the names of the individuals we should contact.

5 Section 4 The firms approach to the proposed internal audit.

 Methodology

 Assessment of audit needs

The successful firm will be expected to undertake an assessment of audit needs and present its findings, along with a strategic plan for internal audit, to the Association for consideration and approval.

Please provide details of your approach to the assessment of audit needs, including the key stages of the process and whom this would involve.

 Audit fieldwork

Please outline your approach to audit fieldwork, including the level of input that you would expect from Association staff

 Audit reporting

Please outline how you report

Section 5  Price

Please outline your fees (including expenses) for the following activities. Tenderers should note that the Association expects these rates to remain constant[1] for the duration of the contract:

Daily Rate (£) Additional Daily Costs (£) Assessment of For each daily rate Audit Needs you should specify if the level of input will differ from the table set out on page 6 of this invitation to tender Internal Audit Other (please specify)

Section 6

Quality is a key concern to the Association. Tenderers should set out the arrangements within their firm for ensuring that quality exists throughout the internal audit process. Reference should be made to the relevant Institute of Internal Auditor – UK and Ireland standards.

Section 7

6 Please provide the following additional information with your proposal:

• A copy of your Health & Safety Policy Statement;

• A copy of your Equal Opportunities policy;

• Details of any rulings against your firm in respect of equality legislation; and

• Details of your firm’s Professional Indemnity Insurance.

Section D

ADDITIONAL INFORMATION Anyone requiring additional information should contact:

Alan Crilly Director of Finance Triangle Housing Association Ltd 60 Eastermeade Gardens Ballymoney BT53 6BD

Tel 028 2766 1760 E Mail [email protected]