The UAE has been encouraging organizations to source their products locally. The program, named In-Country Value addition will help boost the national economy and improve local employment. Various agencies and organizations now ask their suppliers to provide an ICV certificate as proof. The ICV certification process helps to enhance the credibility of the supplier’s ICV score. In this article, we will take a look at the need for an ADNOC ICV approved auditors list, and for the ICV Certificate.
ICV Certificate Sample Improvement Plan
ADNOC is one of the organisations that has committed to putting the ICV project into action and ensuring that it is enforced. As a consequence of this, they have made it mandatory for all of their group tenders to include a listing of the suppliers’ ICV scores. By going through the ICV certification procedure, the business may rest certain that the ICV score that is being reported is genuine and accurate.
As a result, the entire system functions as an improvement plan, allowing the business to improve its buying from local suppliers. The ICV score helps the ADNOC select which tender quotation to consider. In addition, they are focusing on implementing an Improvement Plan, which will improve both the system’s reputation and security.
What is the process of ICV Certification?
- First and foremost, the company must duly fill the Supplier Submission form provided by the ADNOC.
- Next, they will have to add all the details regarding their latest audited financial records and statements.
- Next, they must go through the agreed-upon procedures to calculate their ICV score.
- Once that is complete, companies may approach any ADNOC ICV certification agencies to review the application and score.
- After going through your internal processes and control, the agency will deliver a Factual Finding Report. In case everything is clear and the ICV score reported is accurate, the ADNOC ICV certification agencies will issue the certificate.
What are the responsibilities of an ADNOC ICV Certification Agency?
- Initiate engagement with a stakeholder meeting.
- Mobilize all the required staff and determine a timeline for the completion of the certification.
- Analyze and understand the information provided
- Review current practices and identify gaps
- Make a detailed report regarding the organization’s activities and financial position
- Review the Supplier submission form
- Conduct a sample test if required
- Flag-off potential errors and risk
- Discuss findings with the higher management, and suggest changes if needed
- Lastly, provide the ICV Certificate if everything is in place.
ADNOC In-country Value Program
All suppliers and service providers of ADNOC must submit annual ICV certificates. Since the ICV certificate validity lasts one year, the suppliers will have to undergo audits continually to keep their certificates relevant. Suppliers must also try to increase their ICV score from year to year, making the certificate an integral part of the ADNOC’s tendering process.
From 2018 onwards, all suppliers were instructed to consult ADNOC Certification bodies and complete an ICV audit. However, the program will help boost ADNOC’s ICV contribution. It plans to achieve this by focusing on local suppliers, localizing the value chain and creating more employment opportunities for Emiratis. As a result, the ICV program will help boost the UAE’s economy significantly.
Things to Keep in Mind About ICV Certification
- All the details provided in the ICV certificate must match the supplier’s latest financial statements. These statements must be audited and authorized by a competent Chartered Accountant.
- The financial statements provided as evidence must comply with the International Financial Reporting Standards, followed by the UAE.
- All the documents and financial statements provided must be less than two years old.
- Companies which are less than ten months old may use their management accounts(of last nine months) for ICV calculations.
- The ICV certificate validity lasts for fourteen months from the date of issuance.
- Once they appoint an ADNOC approved Certifying Body, suppliers cannot change the body without providing sufficient justification.
- Supplier’s submission must consider all costs incurred and revenue earned during the last assessment year.
Why KGRN?
At KGRN, we provide all of our clients with highly effective, efficient, personalised, and secure accounting and auditing services. Furthermore, we have been recognised as one of Dubai’s top audit firms year after year due to our excellent service, timely delivery, and competitive pricing. We provide high-quality, customizable, and dependable service to all of our customers, ensuring that you never have to worry about your records again. As a result, join forces with KGRN and take your company to new heights!
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