CONTRACT NOTICE – NATIONAL

1 Authority Details

1.1

Authority Name and Address

1.2

Address from which documentation may be obtained

1.3

Completed documents must be returned to:

2 Contract Details

2.1

Title

Cytundeb Darparu Gwasanaethau Archwilio Mewnol/Contract for the Provision of Internal Audit Services

2.2

Description of the goods or services required

1. Introduction

1.1 The S4C Authority is responsible for the provision and regulatory compliance of S4C’s services (subject to the regulatory powers vested in Ofcom by the Communications Act 2003). The statutory provisions relating to S4C are set out in the Broadcasting Acts 1990 and 1996 and the Communications Act 2003. S4C operates under Sections 203 to 207 (inclusive) and Schedule 12 to the Communications Act 2003. Section 204 provides that the Authority shall have the function of providing television programme services of high quality with a view to their being available for reception wholly or mainly by members of the public in Wales.

1.2 S4C is a Statutory Corporation which receives funding from the Department for Culture, Media and Sport (DCMS), from its commercial revenue and, since 2013/14 from the Licence Fee through the BBC Trust. This is in accordance with the Framework Agreement of September 2011 between the Secretary of State for Culture, Media and Sport and the BBC Trust and the Operating Agreement between the BBC Trust and the S4C Authority of January 2013. S4C is accountable to the BBC Trust for the use of the licence fee money that comes via the Trust.

1.3 To enable the Secretary of State for Culture, Media and Sport to implement the changes to the funding of S4C, the S4C Authority’s previous funding formula was amended in December 2011 by Section 31 of the Public Bodies Act 2011. Under this amended provision the Secretary of State for Culture, Media and Sport now has a statutory duty to secure that “in 2012 and each subsequent year the S4C Authority is paid an amount which s/he considers sufficient to cover the cost to the Authority during that year of (a) providing the Authority’s public Services; and (b) arranging for the broadcasting or Distribution of those services”.

1.4 S4C has established a limited number of wholly owned subsidiary companies that generate commercial revenue from a range of commercial activities.

1.5 S4C’s finances are divided between the Public Service Fund, (which includes the income received from DCMS and the BBC Trust) and the General Fund (which does not include the income received by DCMS and the BBC Trust but encompasses income from the commercial activities). The audit functions which are the subject of this tender extend across both funds.

1.6 S4C also receives at least 10 hours on average of Welsh programming each week from the BBC for free.

1.7 Since October 2010, following the Comprehensive Spending Review, S4C has seen a significant reduction in its funding. In order to achieve some of the necessary savings the organisation undertook a major restructuring process.

1.8 The BBC’s current Royal Charter runs until 31 December 2016. Due to the way that S4C is now funded the renewal of the BBC’s Charter will have an impact on S4C during the course of this contract.

1.9 S4C has announced its intention to relocate its Headquarters to Carmarthen by January 2018 and to co-locate some staff with BBC Cymru/Wales at a new building to be built in the centre of Cardiff.

2. Scope of the Tender

2.1 The scope of work under the contract for the Internal Auditing Services shall include an audit of the financial records and processes from 2015/16 to 2017/18 in accordance with a work schedule agreed with the S4C Authority’s Audit & Risk Management Committee.

2.2 We estimate that the number of days required to fulfil S4C’s Internal Audit needs would be approximately 35 days per annum (including planning and administration).

2.3 The majority of the documentation relating to the audit services is available in Welsh only. You will therefore need to ensure and demonstrate adequate linguistic abilities in your application.

2.4 S4C has a duty to ensure that there is no direct or indirect subsidy of its commercial activities from the Public Service Fund. It is also required to deal separately with the Public Service Fund and the General Fund Submissions should, therefore, indicate the Applicant’s proposals for reflecting these requirements in the arrangements governing the internal audit function. The successful Applicant will be expected to make an initial risk assessment and to draw up a new three-year audit plan during the first year of the new contract.

2.5 You should explain how you will liaise with the external auditors and confirm that you will grant them unfettered access to your working papers.

2.6 S4C is offering a three-year appointment. S4C will review the contract and the successful Applicant’s performance at the end of the first year and reserves the right to terminate the contract at the end of the first year following such a review. This review will be in addition to any regular reviews set out in the contract.

NOTE: To register your interest in this notice and obtain any additional information please visit the Sell2Wales Web Site at http://www.sell2wales.gov.uk/Search/Search_Switch.aspx?ID=21085.

2.3

Notice Coding and Classification

2.4

Total quantity or scope of tender

Provision of auditing services for three financial years.

3 Conditions for Participation

3.1

Minimum standards and qualification required

4 Administrative Information

4.1

Type of Procedure

Single stage

4.2

Reference number attributed to the notice by the contracting authority

N/a

4.3

Time Limits

4.5

Language or languages in which tenders or requests to participate can be drawn up

Welsh

4.6

Tender Submission Postbox

5 Other Information

5.1

Additional Information

S4C shall not be bound to accept any tender and reserves the right: a) to withdraw from and/or abandon and/or defer this procurement at any time; and/or b) not to award any contract as a result of this procurement.

For further information concerning S4C's requirements and this tender process please refer to the Invitation to Tender, a copy of which can be obtained via the S4C website (www.s4c.co.uk) by clicking on "tenders" and following the link.

Candidates must obtain and complete the standard Invitation to Tender available at www.s4c.co.uk/tendrau/e_index.shtml or on request from the contact point noted in this Contract Notice. Applications not submitted in accordance with the standard application form will not be considered.

S4C reserves the right not to proceed with the award of this contract at any stage of the tendering process and not to accept any tenders submitted.

Freedom of Information

S4C is subject to the provisions of the Freedom of Information Act 2000 ("FOI Act"). Information supplied by any candidate to S4C may be disclosable by S4C under the provisions of the FOI Act. If any candidate considers that any information supplied by it to S4C pursuant to this Contract Notice is commercially sensitive or confidential in nature, this should be highlighted explicitly and the reasons for sensitivity set out in full in the tender. This will enable S4C to take account of such sensitivity or confidentiality in deciding whether to release the information in response to freedom of information requests. However, candidates accept that S4C may disclose such information in response to any request under the FOI Act if S4C determines that it is appropriate to do so.

Data Protection

Candidates authorise S4C to process all information provided as part of their application and confirm that they have obtained all necessary third party consents to enable S4C to do so.

(WA Ref:21085)

5.2

Additional Documentation

5.3

Publication date of this notice