In-Country Value Verification (ICV)
Welcome to Elevate Accounting & Auditing, the premier source for all ICV audit services. We are committed to providing you with the best ICV audit results with a focus on professional documentation, support, and comprehensive professional services. As a Dubai-based accounting firm, we have a portfolio of over 1,000 clients for whom we provide external audit services.
ICV CERTIFICATION IN THE UNITED ARAB EMIRATES
ADNOC has announced an ICV program, introduced on 1 April 2018, where all suppliers of goods or services must obtain ICV Certification Services In Dubai from ADNOC’s ICV Certification Office and calculate and publish their certified ICV score for the previous financial year to demonstrate how much they contribute to the ICV offering. Suppliers without ICV certification may participate in an ADNOC group tender, but their ICV score will be considered “zero” when evaluating bids.
which may put them at a disadvantage compared to suppliers with a higher ICV score.
JOINT ICV CERTIFICATION PROGRAMME
In 2019 and 2020, the Ministry of Economic Development, Abu Dhabi Ports, and Aldar Properties are working with ADNOC Group to expand the ICV certification process to different sectors in Abu Dhabi and the UAE. More organizations are likely to join the ICV certification platform.
ICV Certification in Dubai|ICV Auditor|ICV Auditor
AREAS ELIGIBLE FOR ICV SINGLE AUDITS
(a) industrial products (only for suppliers holding an industrial license)
(b) Third-party expenses (only for suppliers who do not hold an industrial license)
(e) Expatriate contributions
(i) Non-UAE income
(ii) UAE employees
WHY WAS THE ICV CERTIFICATION PROGRAMME INTRODUCED IN THE EU?
An In-Country Valuation (ICV) program has been announced for Abu Dhabi National Oil Company (ADNOC) group companies with the following objectives:
(a) Emiratization: creating more 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: strategically positioning critical parts of the value chain for individual categories.
WHO NEEDS A SINGLE ICV CERTIFICATE?
Companies working directly as suppliers or indirectly as subcontractors with the following ministries and parastatals must obtain a single ICV certificate.
Companies in the ADNOC group
Abu Dhabi Ministry of Economic Development
Abu Dhabi Ports
Abu Dhabi Environmental Protection Authority
All other public bodies in Abu Dhabi
Companies bidding through Musanada (Abu Dhabi General Services Company)
ICV CERTIFICATION INFORMATION
Contractors must hold an ICV certificate issued by an ICV-recognized certification body.
Each company license is considered a separate legal entity, even if it has the same owner. However, if a company has several branches in the same emirate but carries out similar activities under the same licenses, only one ICV certificate is allowed for the company in that emirate.
All information on the ICV certificate form must be consistent with the supplier’s latest audited financial statements. The audited financial statements must comply with International Financial Reporting Standards (IFRS) and must not be older than 2 years from the year of certification.
For newly established companies (less than 10 months old) without audited financial statements, management reports up to 9 months old may be used to calculate the IIP. Management accounts older than 9 months must be audited.
The ICV certificate is valid for 14 months from the date of issue of the audited financial statements. During the validity period of the LCI certificate.
the supplier may, if it wishes, apply for recertification using the same audited financial statements, but the 14-month validity period from the date of issue of the first certificate remains the same.
Once a Designated Certifying Authority has been designated, the supplier shall not change the Designated Certifying Authority for that year’s LCI certificate without adequate justification.
The supplier shall include in its declaration all costs incurred and revenues generated during the year.
ICV DEVELOPMENT PLAN
If required by the terms of the tender.
suppliers must submit a labor cost index improvement plan with the commercial tender.
The labor cost index improvement plan is a contractual commitment to pay a fee based on the actual labor cost index achieved compared to the labor cost index assumed in the labor cost index improvement plan.
Types of LCI improvement plans
Company development plan
Agreed development plan
The commercial assessment shall take into account the weighted average LCI percentage and the LCI certificate score given in the LCI development plan to determine the LCI rating of the bidder. In order to monitor the CPI actually achieved against the CPI projected in the CPI Improvement Plan, the supplier shall submit the supplier’s last CPI certificate at the end of each contract year.
The contract will include milestones equal to 5% of the contract value to achieve the THI and these payments will be paid at the end of each year from the start of the contract in proportion to the actual achieved THI according to the last THI certificate.
ELEVATE, as your trusted LCI advisor, offers you the following services
Audited and signed customer financial statements.
Our team will help you understand your LCI and the factors that affect your LCI score.
We will recommend ways to improve your LCI score and include the additional impact of each step in our impact analysis report. This will include, among other things, recommendations for changes in organizational processes to improve your LCI score.
Develop an LCI model based on the current financial year data that can be submitted to the LCI certification organization to ensure that LCI scores are achieved according to the model developed.
Develop an LCI development plan to be submitted to ADNOC for application.
Elevate First Accounting & Auditing has an exclusive relationship with Al Raqamiya Management Consulting, an ICV certification body.