Govt. invites ExxonMobil’s 2018 -2020 cost audit proposals
– Says locals to apply
Kaieteur News – The Guyana Government has issued an Invitation to Interest Expression (EOI) from companies, interested in conducting an audit of the costs incurred by the Stabroek Block Operator, ExxonMobil, for the period 2018 to 2020. The consultation work will also include and validate a share Government of oil proceeds from the Liza Phase One Project.
Kaieteur News understands that the expression of interest relates specifically to the consultancy for Cost Audit under Sub-Component B.1 Guyana Petroleum Resource Governance and Management Project funded by a $ 20M World Bank loan UD.
The cost audit assignment will also require the provision of on-the-job training for staff of the Guyana Revenue Authority (GRA), the Auditor General’s Office (OAG) and the Ministry of Natural Resources (MNR) and other agencies. in accordance with the guidance of the Government of Guyana on the audit process.
Under the current Terms of Reference, Kaieteur News understands that the Consultant is invited to audit, audit and validate all available documents and records necessary for activity-related payments and credits’ r Contractor for the period January 2018 to December 2020. This includes all books of account, accounting records, material records and inventories, vouchers, payrolls, invoices and any other relevant documents. More specifically, the consultant will be responsible for conducting a pre-audit analysis; devising an effective Audit Plan including appropriate methodology; to conduct the Audit in accordance with the provisions of the Production Agreement, applicable laws, regulations and procedures, as well as International Good Practice and Standards.
This is expected to be done to ensure that costs are legal and that they comply with the terms of the Production Agreement. The successful applicant will also be required to check whether costs have been correctly assigned to the cost category and classified / categorized in accordance with the terms of the agreement; verifying and confirming costs, including a comprehensive evaluation of expenditure, expenditure processes and cost allocation, and determining whether costs are eligible for cost recovery; provide a valid basis and finding of a complete written examination to justify exclusion / exclusion of costs; determine whether transactions have been made between related parties at arm’s length and prices established in accordance with the principle of arm’s length; determine whether costs were competitive for transactions between unrelated parties; bring costs into line with industry norms, including those related to cost control and optimization; and find out if the Government of Guyana received value for money and risk assessment of government revenue.
In addition, the selected company would be expected to assess the impact of the audit on future Profit Oil revenue. The duration of this assignment is expected to be four months, beginning June 2021. The Adviser’s physical presence, as agreed by the Client, would be required for at least 30 days out of the four months and as set out in the Operating arrangements.
Importantly, local companies with the required skills, qualifications and experience are encouraged to apply for this consultancy. Whenever necessary, the government said that the competent partnership that exists between a local and a multinational company that can perform these tasks should be expressed in an application.
Kaieteur News understands that the Adviser is required to disclose any potential conflicts of interest arising from other assignments.