Certification Of Value In The Country (ICV)
Welcome to Elevate Accounting & Auditing, your first source for everything related to the ICV Auditing Service. We aim to provide you with the ICV Certification Services In Dubai, with an emphasis on professional documents and enhanced professional support/service. As an accounting firm in Dubai, we have a portfolio of over 1000 clients that we serve with external audit services.
ICV Certification In UAE
ADNOC has announced an ICV program to be implemented from April 1, 2018, under which all suppliers of goods or services must obtain ICV certification from the ADNOC ICV Certification Agency and calculate and report their certified ICV score for the previous fiscal year to demonstrate how they contribute to the delivery of ICV. Suppliers who are not ICV certified can participate in ADNOC Group tenders, but their ICV score will be assessed as “zero” when the tender is evaluated and they may therefore be disadvantaged compared to suppliers with a higher ICV score.
A Common ICV Certification Program
In 2019 and 2020, the Ministry of Economic Development, Abu Dhabi Ports and Aldar Properties partnered with ADNOC Group to expand the ICV certification process to different sectors in Abu Dhabi and the UAE. It is likely that more companies will join the ICV certification platform.
ICV Certification In Dubai
AREAS ELIGIBLE FOR UNIFIED ICV CALCULATIONS
(a) Processed goods (only for suppliers with industrial licenses)
(b) Third-party expenses (only for suppliers with a non-industrial license)
(c) Capital expenditures
(d) Emiratization
(e) Contributions from expatriates
(f) Bonus – i) Income from outside the UAE. ii) Emirati employees.
Why Was The ICV Certification Program Introduced In The Eu?
An In-Country Value (ICV) program was announced for the companies of the Abu Dhabi National Oil Company (ADNOC) group with the following objectives:
(a) Emiratization: creating additional employment opportunities for Emiratis in the private sector.
(b) GDP diversification: supporting the diversification of the UAE’s GDP through the purchase of additional goods and services in the UAE; and
(c) Strategic considerations: locating strategically important parts of the value chain for selected categories.
Who Needs A Uniform ICV Certificate?
Enterprises that trade directly as suppliers or indirectly as subcontractors with the following government and semi-government entities must obtain the Uniform ICV Certificate.
Companies Of The ADNOC Group
Ministry of Economic Development of Abu Dhabi
Aldar Real Estate
Ports of Abu Dhabi
Abu Dhabi environmental authority
All other ministries in Abu Dhabi
Companies submitting bids through Musanada (Abu Dhabi General Services Company)
ICV Certification Information
Suppliers must hold an ICV certificate issued by a certification body recognized by the ICV.
Each company’s license is considered a separate legal entity, even if the owners are identical. However, if a company has more than one establishment in an emirate, but conducts similar activities under the same licenses, a combined ICV certificate for the company in that emirate may be accepted.
All figures in the ICV certificate template should be consistent with the supplier’s most recent audited financial statements. The audited financial statements must be in accordance with International Financial Reporting Standards (IFRS) and not older than two years from the year of certification.
For newly established companies (less than 10 months old) that do not have audited accounts, management accounts for a period not exceeding 9 months may be used for the calculation of the ICV. An audit is required for all management accounts older than 9 months.
The ICV certificate is valid for a period of 14 months from the date of issue of the audited accounts. The supplier may apply for a new certification during the period of validity of the ICV certificate, if it chooses to do so, using the same audited accounts, but the validity period of 14 months from the date of first issue remains the same.
Following the designation of a contracted certification body, the supplier may not change the contracted certification body for that year’s LCI certificate without adequate justification.
The declaration submitted by the supplier shall take into account all costs incurred and income received by the supplier during the financial year.
LCI Improvement Plan
If required by the tender conditions, suppliers must submit an LCI improvement plan together with their commercial offer.
The LCI Improvement Plan will be a contractual commitment related to payment for LCI achieved against the LCI committed under the LCI Improvement Plan.
Types of LCI improvement plans
Business-based improvement plans
Agreement-based improvement plans
The weighted average of the percentage of LCI planned under the LCI improvement plan is taken into account together with the LCI certificate score to determine the bidder’s LCI ranking during the business evaluation. To verify the actual LCI achieved against the LCI planned under the LCI improvement plan, the supplier submits the supplier’s most recent LCI certificate at the end of each year of the agreement.
A milestone for the realized LCI of 5% of the value of the agreement is included in the contract and this amount is released at the end of each year from the start date of the agreement in proportion to the actual LCI achieved on the last LCI certificate.
As your trusted LCI advisor, ELEVATE will provide you with the following services
The client’s financial statements will be verified and signed.
Our team will help you understand your ICV and the determining factors affecting your ICV score.
We recommend how to improve your ICV score and include the incremental effect of each step in our impact analysis report. This includes, among other things, recommendations for restructuring organizational processes to improve LCI scores.
Prepare ICV templates based on the fiscal year report from the certification, which can be submitted to the ICV certification body to ensure that the ICV score is achieved based on the prepared templates.
Prepare an ICV improvement plan for submission to ADNOC for tender.
Elevate First Accounting & Auditing works exclusively with Bestaxca Management Consulting, an ICV accreditation body.
