Govt. invites bids to audit ExxonMobil’s 2018 -2020 costs

Apr 02, 2021 News

– Says locals can apply

Kaieteur News – The Government of Guyana has issued an invitation for Expression of Interest (EOI) from firms, which are interested in conducting an audit of the costs incurred by Stabroek Block Operator, ExxonMobil, for the period 2018 to 2020. The consultancy work will also include a validation of the Government’s share of profit oil 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 of the Guyana Petroleum Resources Governance and Management Project that is funded by a US$20M World Bank loan.
The assignment for cost audit will also require the provision of on-the-job training to the staff of the Guyana Revenue Authority (GRA), the Office of the Auditor General (OAG) and the Ministry of Natural Resources (MNR) and other agencies as directed by the Government of Guyana on the audit process.
Under the present Terms of Reference, Kaieteur News understands that the Consultant is invited to audit, examine and verify all available documentation and records necessary for charges and credits relating to the Contractor’s activities for the period January 2018 to December 2020. This includes all books of accounts, accounting entries, 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 inclusive of an appropriate methodology; executing the Audit in adherence to the provisions of the Production Agreement, applicable laws, regulations, and procedures, as well as International Good practices and Standards.
This is expected to be done to ensure that costs are legitimate and are in compliance with the terms of the Production Agreement. The successful applicant will also be required to verify whether costs have been accurately assigned to the cost category and classified/categorised in compliance with the terms of the agreement; authenticate and substantiate costs, including a comprehensive evaluation of expenditure, expenditure processes and cost allocation, and determine if costs are eligible for cost recovery; provide valid basis and a complete written audit finding to justify the disqualification/disallowance of costs; determine whether transactions between related parties were done at arm’s length and prices were established in accordance with arm’s length principle; determine whether costs were competitive for transactions between unrelated parties; ensure that costs were aligned with industry norms, including those related to cost control and optimization; and ascertain whether the Government of Guyana received value for money and assess risk to government revenue.
Furthermore, the company selected would be expected to assess the impact of the audit on future Profit Oil revenues. The duration of this assignment is expected to be four months, commencing June 2021. The Consultant’s physical presence would be required, as agreed by the Client, for at least 30 days of the four months and as set out in the Implementation arrangements.
Importantly, local firms with the required skills, qualifications and experience are encouraged to apply for this consultancy. Wherever necessary, the government said that the eligible partnership that exists between a local and international firm that can perform these tasks should be expressed in an application.
Kaieteur News understands that the Consultant is required to disclose any potential conflicts of interest arising out of other assignments.

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