Obtaining an In-Country Value certificate from the Ministry of Industry and Advanced Technology (MoIAT) acknowledges a company’s contribution to the UAE’s economy. However, it is imperative that suppliers ensure their ICV template is accurate and complete before submission for certification. This article outlines the final checks suppliers must perform on their ICV template based on MoIAT’s ICV Supplier Certification Guidelines. Performing these checks can help smooth the certification process.
Verify Figures’ Alignment with Audited Financial Statements
One of the primary requirements for ICV certification is that all figures entered in the ICV template must align with the supplier’s latest audited financial statements. This includes costs, revenues, assets, investments, payroll details, and more. Suppliers must carefully review each section of the template against the corresponding line items and notes in the audited statements. Any discrepancies need to be corrected or clearly explained. This verification ensures the accuracy of the data.
Review Account Codes and Trial Balance
It is recommended that suppliers appropriately modify their existing account codes and trial balance to separately capture ICV-specific costs like local procurement spend, training expenses, and Emirati payroll. This facilitates an accurate population of template sections in future certification cycles. Suppliers must review these customized accounts to ensure all relevant costs are identified and accounted for in the template. Any missing figures need to be sourced from financial records.
Reconcile Total Costs
The total costs entered in the manufacturing, third-party spends, Emiratization, and expat contribution sections of the template must be reconciled to the total cost of sales or total operating expenses in the financial statements, after excluding ineligible items like taxes, fines, charity, etc. Suppliers should perform a three-way match between sections, overall totals, and statements. Variances must be justified or corrected.
Validate Supporting Documents
Suppliers need to retain all documents substantiating the information provided in the ICV template. This includes purchase orders, payment vouchers, contracts, WPS records, training invoices and more. They should verify that supporting proof is readily available for the certifying body to scrutinize during the certification process. Any missing documents must be obtained or figures revised accordingly to ensure a smooth audit.
Validate Vendor ICV Ratings
Vendor ICV percentages used for cost allocations must be validated against the actual ICV certificates issued to those suppliers by an authorized certifying body. Default percentages apply only where valid certificates are unavailable. Suppliers should contact their vendors to retrieve the latest certificates, if not already obtained. Outdated or incorrect vendor ratings negatively impact the template calculations.
Perform Sample Check Calculations
It is prudent for suppliers to perform sample calculations across different sections of the filled ICV template to test if the formulas are accurately picking up the entered figures and allocation logic. Spot checks on individual vendor costs, emiratization benefits, asset allocation, etc. can help detect any errors in cell linkages or formulas before final submission. Time spent on such testing saves time and effort during the certification process.
Validate Contact and Company Details
The company name, license number, financial year, contact details, and other basic information captured in the template introduction section should be validated for accuracy against official records. This avoids delays due to a mismatch of supplier identity during the certification review stage.
Obtain Required Sign-Offs
The final page of the completed ICV template containing the summary results requires authorized sign-offs from the supplier as well as the assigned certifying body representative after mutual review and agreement. Suppliers should coordinate with their certifying body to schedule this joint sign-off meeting upon completion of all the previous checks. The signed soft copy becomes the ready “Submit for Certification” version.
Seek Certifying Body Guidance
For any challenges faced during the above validation steps, suppliers must promptly reach out to their assigned certifying body for guidance. Common issues like classification of marginal cases, interpretation of guidelines, availability of old records, etc. are best clarified directly by certifying bodies that are fully conversant with MoIAT requirements. This ensures consistent application of policies across all certified suppliers.
Table 2: ICV Template Final Checklist
| CHECK ITEM | ACTION | STATUS | |
| 1. | Verify figures against Audited Financials |
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| 2. | Review account codes and trial balance |
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| 3. | Reconcile total costs |
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| 4. | Validate supporting documents |
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| 5. | Verify vendor ICV ratings |
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| 6. | Perform sample calculations |
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| 7. | Validate contact and company details |
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| 8. | Obtain final sign-offs |
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| 9. | Seek certifying body guidance |
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FAQs:
Q1. What is the timeline for obtaining an ICV Certificate?
A: There is no fixed timeline. It depends on how quickly a supplier is able to complete the ICV template, have it reviewed by the certifying body, and then approved on the MoIAT portal. On average, the entire process takes 4-6 weeks.
Q2: How long is an ICV Certificate valid for?
A: An ICV Certificate issued by MoIAT through an authorized certifying body is valid for 14 months from the date of issuance of the audited financial statements used for certification calculations.
Q3: Can old financial statements be used for ICV certification?
A: No, as per MoIAT guidelines the audited financial statements used as the basis for ICV certification calculations must not be older than 2 years from the year of certification application. Statements older than this cannot be considered.
Conclusion
Thorough due diligence on the ICV template before final certification submission, as outlined above, helps suppliers deliver accurate information and secure a smooth audit experience. The checks save time by resolving queries upfront with certifying bodies. With the right level of diligence, suppliers can achieve ICV certification in the first attempt itself, reaping its intended economic and business benefits. Consistent efforts are key to maintaining certification standards over the long run as well.
