Top of Page <<Corporate Logo of Name>>
Request for Proposal
for
Financial Audit Services
for
<<Name>>
Issue Date: <<Date>>
Closing Location:
<<Physical Address of Name>>
Attention: <<Contact Person>>
Closing Date And Time:
Proposals must be received
by <<Time>> Pacific Time on <<Date>>
<<Date and Location of Information Meeting:>>
<<Date and Time>>
<<Location>>
<<Attendance at the Information Meeting is/is Not Mandatory>>
Contact Person: <<_____________>>
Fax Number: <<_____________>>
E-mail: <<_____________>>
Summary of Requirements
<<Insert page numbers>>
1. Purpose of the Request for Proposal
2. Term of Contract
3. Type and Scope of Audit
3.1 Financial Statement Audit
3.2 Auditor’s Report and Timing
3.3 Management Letter
3.4 Key Audit Dates
3.5 Access to Information
3.6 Independence
4. Relationship with the Auditor General
4.1 Role of the Auditor General
4.2 Participation of the Auditor General
4.3 Additional Work for the Auditor General
5. Information about <<Name>>
5.1 Description
5.2 Corporate Structure
5.3 Financial Magnitude
5.4 Key Financial Systems
5.5 Financial Management
5.6 Work Done by <<Name>> Staff
5.7 Audit/Finance Committee
5.8 Internal Audit
Administration
<<Insert page numbers>>
6. Request for Proposal Process
6.1 Enquiries
6.2 Information Meeting
6.3 Closing Date
6.4 Late Proposals
7. Proposal Preparation
8. Additional Terms
8.1 Irrevocability of Proposal
8.2 Changes to Proposal Wording
8.3 Proponents’ Expenses
8.4 Acceptance of Proposal
8.5 Liability for Errors
8.6 Modification of Terms
8.7 Ownership of Proposals
8.8 Confidentiality of Information
9. Evaluation of Proposals
9.1 Evaluation and Selection
9.2 Unsuccessful Proposals
9.3 Estimated Time-Frames
10. Basis for Selection
10.1 Mandatory Requirements
10.2 Criteria for Assessment
Schedules
<<Insert page numbers>>
1 Team Mix and Hours
Appendices
<<Insert page numbers>>
A. Organization Chart for <<Name>>
B. <<Name>>’s Board Members and Senior Management
C. <<Name>>’s Financial Statements
D. Transmittal Form
E. Issues for Engagement Letter
SUMMARY OF REQUIREMENTS
1. Purpose of the Request for Proposal
<<Name>> requires an audit of its annual financial statements. The Board of Directors (or equivalent or audit/finance committee) of <<Name>> wishes to engage an Auditor to perform that audit.
2. Term of Contract
The Contract will be for a period of three years, with the possibility of renewal, commencing with the 200X/200X fiscal year. The fiscal year of <<Name>> is Month 1 to Month 31.
3. Type and Scope of Audit
3.1 Financial Statement Audit
The engagement shall be conducted in accordance with Canadian generally accepted auditing standards. As such, the audit report should express an opinion as to whether the financial statements of <<Name>> present fairly the financial position, results of operations, and cash flows of <<Name>> in accordance with Canadian generally accepted accounting principles.
3.2 Auditor’s Report and Timing
The Auditor will:
(a) prepare an audit report addressed to the Board of <<Name>>, with a copy to the Minister responsible for <<Name>>, having format and content consistent with Canadian generally accepted auditing standards;
(b) provide signed copies of the report to the Comptroller General and the Auditor General of British Columbia in sufficient time to enable them to meet the prescribed reporting requirements of the government of British Columbia.
The Board should receive the audit report no later than __________, and Comptroller General and the Auditor General should receive the audit report no later than May 31 of each year (based on current information from the Office of the Comptroller General, although this date is subject to change).
3.3 Management Letter
The Auditor will prepare a management letter addressed to the Board, with a copy to the Auditor General, that identifies areas of concern or weaknesses encountered in the examination of the financial statements of <<Name>>, recommendations for improvement, and management’s response to the concerns raised or that advises the Board that no significant concerns or weaknesses were discovered.
3.4 Key Audit Dates
The key audit dates are as follows (based on current information, although these dates are subject to revision):
- Finalize audit report
____________________
- Provide copies of audit report to Comptroller General and Auditor General
____________________
- Meet with Board
____________________
3.5 Access to Information
The Auditor will have full access to the Board of <<Name>>, and to staff and facilities in order to perform its audit work.
Staff of the Auditor must ensure that confidentiality of information obtained as a result of their involvement with the audit is maintained.
3.6 Independence
The Auditor must provide the Board, annually, with a statement confirming the Auditor’s independence from <<Name>>.
4. Relationship with the Auditor General
4.1 Role of the Auditor General
The Auditor General is the auditor of the Summary Financial Statements of the Province. The Summary Financial Statements are the financial statements of the government reporting entity. The government reporting entity consists of ministries, Crown corporations, and other government organizations such as universities, colleges, school districts, health authorities, and similar organizations that are controlled by the Provincial government.
In order to provide an opinion on the Summary Financial Statements of the Province, the Auditor General intends to rely on the work of the Auditor pursuant to Section 6930 of the CICA Handbook. The Auditor will, as auditor of <<Name>>, communicate with the Auditor General concerning his intended reliance.
In order to provide an opinion on the Summary Financial Statements of the Province, the Auditor General must be assured that the financial statement audit process for government organizations is sufficient to rely on. In order to obtain this assurance, the Auditor General will carry out directly a limited number of audits and will participate, to varying degrees, in some other audits. In some cases, the Auditor General will be extensively involved in the planning, examination and reporting phases of the audit. The involvement of the Auditor General will supplement, not replace, the work of the Auditor and will not relieve nor interfere with the Auditor’s duties to the Board.
The Auditor General will consult with <<Name>> about the level of involvement expected for each year’s financial audit. <<Name>> will advise the Auditor each year about the expected level of involvement of the Auditor General in that year’s financial audit.
4.2 Participation of the Auditor General
Staff of the Auditor General may represent the Auditor General in formal meetings with <<Name>>’s Board.
Staff of the Auditor General may be involved in discussions with the Auditor about the audit plan.
Staff of the Auditor General may participate in the review of the format and content of <<Name>>’s draft financial statements and may be involved in discussions with the Auditor about the audit report before it has been signed by the Auditor.
4.3 Work at the Request of the Auditor General
The Auditor General provides assessments and advice to the Legislative Assembly related to the Legislative Assembly’s role in holding the government accountable for its administration. The Auditor may be asked to perform work to assist the Auditor General to provide such assessment or advice.
The Auditor General expects to pay for any work performed at his request, unless the work requested is, in the opinion of the Auditor General, required to meet Canadian generally accepted auditing standards for financial audits as they relate to an expression of an opinion on <<Name>>’s financial statements or the Auditor General’s opinion on the Summary Financial Statements of the Province.
5. Information about <<Name>>
5.1 Description
e.g. Enabling statute(s)
Mission statement
Programs
Promotional or other material outlining <<Name>>’s services or operations
Corporate plan
Annual plan
Business plan
Unique regulatory or audit requirements
Contentious issues
5.2 Corporate Structure
An organization chart of <<Name>> is attached as Appendix A.
Appendix B lists the current members of the Board and senior management of <<Name>>.
5.3 Financial Magnitude
Appendix C is a copy of the __________ audited financial statements for <<Name>>. In addition to the financial information contained in the statements, the following information will be of interest and consists of estimated activity for the fiscal year ending __________. [For further details, please see the website at www.__________.]
(a) Payroll - full time employees ____________________ - part time employees ____________________ (c) Invoices paid: ____________________ (d) Types of Inventories: ____________________ (e) Other relevant information __________________________________________________
5.4 Key Financial Systems
<<Name>> currently uses computerized systems for the following major administrative areas: ____________________.
5.5 Financial Management
The overall responsibility for financial management of <<Name>> rests with the <<name of staff person>>.
5.6 Work Done by <<Name>> Staff
<<Name>> staff prepare the financial statements as well as the normal reconciliations and analyses identified by the Contractor as necessary for the completion of the financial audit.
5.7 Audit/Finance Committee
<<Name>>’s Board has an <<Audit/Finance Committee>> which is charged with the responsibility of reviewing the annual financial statements of the <<Name>> prior to submission to the Board and with receiving reports from the Auditor. The Committee meets approximately __________ times annually. The senior staff of the Auditor may be requested to attend meetings with the <<Audit/Finance Committee>>.
or
<<Name>> has no <<Audit/Finance Committee>>
5.8 Internal Audit
<<Name>> has an Internal Audit function. Some elements of the Internal Audit annual workplan may be of value to the financial statement auditor. However, the department does not carry out any specific tasks in support of the financial statements audit.
or
<<Name>> does not have an internal auditor.
ADMINISTRATION
The following provisions reflect current best practices for public sector procurement, and will apply to this Request for Proposal and to any subsequent contract. Submission of a proposal in response to this Request for Proposal indicates acceptance of all the following provisions.
6. Request for Proposal Process
6.1 Enquiries
All enquiries related to this Request for Proposal are to be directed, in writing, to the contact person identified on the front page of this Request for Proposal. Information obtained from any other source is not official and should not be relied on. If information additional to that disclosed in the Request for Proposal is supplied, this information will be provided to all persons receiving the Request for Proposal. Enquiries must be communicated to the contact person at least five days prior to the Request for Proposal closing.
6.2 Information Meeting (Optional)
An Information Meeting will be held at the time and in the location specified on the front page of this Request for Proposal. Attendance is mandatory/optional.
Questions will be accepted at the Information Meeting. However, questions of a complex nature, or questions where the questioner wishes anonymity, should be forwarded in writing, prior to the meeting, to the contact person.
A transcript or minutes of the meeting will be distributed to all persons attending the meeting or requesting a copy of the transcript or minutes of the meeting.
6.3 Closing Date
___ complete copies of each proposal must be received by 2:00 pm, Pacific Time, on __________ at:
<<Mailing Address of Name>>
Attention: _________________________________
<<Physical Address of Name>>
Attention: _________________________________
Proposals must not be sent by facsimile or e-mail. Proposals and their envelopes should be clearly marked with the name and address of the proponent, and the words "Proposal for Financial Audit Services for <<Name>>."
6.4 Late Proposals
Late proposals will not be accepted and will be returned unopened to the sender.
7. Proposal Preparation
The following format and sequence should be followed in order to provide consistency in proponents’ responses and to ensure each proposal receives fair consideration. All pages should be consecutively numbered.
- Transmittal form (Appendix D). The Transmittal Form must be signed by a person authorized to sign on behalf of the proponent and to bind the proponent to statements made in response to this Request for Proposal.
- Table of contents for proposal, including page numbers.
- The body of the proposal, including pricing. The proposal should address all factors identified as the selection criteria in the same order as they are described in the criteria. Failure to address all criteria will impair the proposal. The proposal evaluation team is not obligated to seek clarification of vague or incomplete information.
- Prices should be all-inclusive, including all federal and provincial sales taxes, and be firm for the entire period covered by the contract.
- The proponent should include statements:
- Confirming that the proponent is independent from <<Name>>, and any non-audit services performed by the proponent for <<Name>> will neither prejudice that independence nor be in conflict with any governing code of professional ethics; and
- Confirming that the proponent has no conflict of interest related to <<Name>>.
8. Additional Terms
8.1 Irrevocability of Proposal
By submission of a clear and detailed written notice, a proponent may amend, or withdraw, its proposal prior to the closing date and time. At closing time, all proposals become irrevocable.
Proposals must be open for acceptance for at least 90 days after the closing date.
By submission of a proposal, a proponent agrees that should its proposal be successful the proponent will enter into an engagement letter, that includes terms dealing with the issues set out in Appendix E, with <<Name>>.
8.2 Changes to Proposal Wording
A proponent will not be permitted to change the wording of its proposal after closing, and no words or comments may be added to the proposal unless requested by the Board for purposes of clarification.
8.3 Proponents’ Expenses
Proponents are solely responsible for their own expenses in preparing a proposal. If the Board elects to reject all proposals, neither the Board nor <<Name>> will be liable to any proponent for any claims, whether for costs or damages incurred by the proponent in preparing the proposal, loss of anticipated profit in connection with any final agreement, or any other matter whatsoever.
Further to the preceding paragraph, a proponent, by submitting a proposal, agrees that it will not claim damages, for whatever reason, relating to the agreement or in respect of the competitive process, in excess of an amount equivalent to the reasonable costs incurred by the proponent in preparing its proposal and the proponent, by submitting a proposal, waives any claim for loss of profits if no agreement is made with the proponent.
8.4 Acceptance of Proposal
This Request for Proposal should not be construed as an agreement to purchase services. Neither the Board nor <<Name>> is bound to enter into an agreement with any proponent that submits the lowest priced proposal or with any proponent.
No proponent will acquire any legal or equitable rights or privileges relative to the services prior to full execution of a written agreement for the services required.
8.5 Liability for Errors
While the Board and <<Name>> have used considerable effort to ensure an accurate presentation of information in this Request for Proposal, the information contained in this Request for Proposal is supplied solely as a guideline for proponents. The information is not guaranteed, or warranted to be accurate, by <<Name>>, nor is it necessarily comprehensive or exhaustive. Nothing in this Request for Proposal is intended to relieve proponents from forming their own opinions and conclusions with respect to the matters addressed in this Request for Proposal.
8.6 Modification of Terms
<<Name>> reserves the right to modify the terms of this Request for Proposal at any time in it sole discretion. This includes the right to cancel this Request for Proposal at any time prior to entering into an agreement with a successful proponent.
8.7 Ownership of Proposals
All documents, including proposals, submitted to <<Name>> become the property of <<Name>>. They will be received and held in confidence, subject to the provisions of the Freedom of Information and Protection of Privacy Act.
8.8 Confidentiality of Information
This document, or any portion thereof, may not be used for any purpose other than the submission of proposals.
Information pertaining to <<Name>> obtained by a proponent as a result of participation in this process is confidential and must not be disclosed except as required to fulfil the obligations of the Auditor under the Agreement.
9. Evaluation of Proposals
9.1 Evaluation and Selection
The Board will first check proposals against the mandatory requirements. Proposals not meeting all mandatory requirements will be rejected without further consideration. Proposals that meet all the mandatory requirements will be assessed and scored against the criteria for assessment.
Only the information contained in the proposal will be used to evaluate the proposal. There will not be an opportunity to make a presentation to the evaluation committee beyond the information contained in the proposal. (Optional)
9.2 Unsuccessful Proposals
At the conclusion of the Request for Proposal process, all proponents will be notified. Unsuccessful proponents may request a meeting with the Board.
9.3 Estimated Time-Frames
The following timetable outlines the anticipated schedule for the Request for Proposal process and signing an agreement. The timing and the sequence of events resulting from this Request for Proposal may vary and shall ultimately be determined by the Board.
Request for Proposal is issued __________________________ Information meeting is held __________________________ Request for Proposal closes __________________________ Proposal evaluation completed __________________________ Agreement is signed __________________________ Service delivery starts __________________________
10. Basis for Selection
10.1 Mandatory Requirements
The following are mandatory requirements. Proposals not clearly demonstrating that they meet them will receive no further consideration during the evaluation process.
- The proposal must be received at the closing location by the specified closing date and time.
- The proposal must be signed by a person authorized to sign on behalf of the proponent.
- The proposal must be in English and must not be sent by facsimile or e-mail.
- The proponent must provide written confirmation of the proponent’s independence and that the proponent has no conflict of interest related to <<Name>>.
10.2 Criteria for Assessment
Proposals meeting the mandatory requirements will be assessed against the criteria noted below.
- Capability of the proposed audit team,
- Proposed audit strategy, and
- Price.
Suggested Point Range | ||
| Capability of Proponent and Audit Team | 45% | |
| (a) | the location and size of the proponent, the experience and capabilities of its partners, managers and staff in the audit of organizations similar to <<Name>>, as well as that of additional staff required by the firm to carry out the audit. (Please provide resumes of the senior members of the proposed audit team); | 10-15 |
| (b) | the proposed audit team’s experience in the audit of similar organizations and in other government organizations and public bodies, and details of skills or experience which are directly relevant to the capacity of the team to conduct the audit of <<Name>>; | 10-15 |
| (c) | the proponent’s experience related to computerized audits, as well as the availability of other specialized services that may be necessary in the audit; | 4-6 |
| (d) | the availability of resources to ensure deadlines are met in a timely manner; | 3-5 |
| (e) | the proposed audit team’s degree of familiarity with the extensive body of authoritative literature that is unique to the public sector; | 3-5 |
| (f) | information on contributions made by the proponent in improving the financial administration of other public sector entities; | 3-5 |
| (g) | quality assurance, quality control, and peer review programs within the firm; | 3-5 |
| (h) | the proponent’s internal risk management techniques for liability, personnel and business loss exposures as they apply to the proponent’s operations and business practices; | 3-5 |
| (i) | policies on notification to clients of changes in key personnel, and staff continuity on each audit; and | 1-3 |
| Proposed audit strategy | 35% | |
| (j) | general audit strategies and methodology employed, including, but not limited to: – business risks | 10-15 |
| (k) | the depth of the perceived audit needs and understanding of the key issues facing <<Name>>, the implications of those issues for the conduct of the audit, and particular audit strategies and methodology for <<Name>> including, but not limited to: – preliminary audit plan – substantive audit procedures to be undertaken – compliance audit procedures to be undertaken – report deliverables; | 10-15 |
| (l) | a time budget, including estimated total hours for partners and other staff, (use Schedule #1); | 10-15 |
| Price | 20% | |
| (m) | the maximum cost for which the requested work will be performed for each year of the term of the appointment. These amounts should include: (i) professional fees of audit and support staff; (ii) estimated out-of-pocket expenses. | 20 |
| Total | 100% | |
Schedule 1
TEAM MIX AND HOURS
(One calculation should be completed for each year where the hours differ)
HOURS | ||||
Audit Planning | Audit Fieldwork | Review and Reporting | Total | |
| Audit Partner | ||||
| Review Partner | ||||
| Sector Specialists | ||||
| Audit Manager | ||||
| Professionals | ||||
| Students | ||||
| Other Expert or Specialist Assistant (Detailed by category e.g., EDP) | ||||
| Totals | ||||
[The hours to be worked by each member of the team should be clearly identified]
Appendix A
Organization Chart
Appendix B<<Name>>’s Board Members and Senior Management
| Position | Name |
| Chair | <<Type name here>> |
| Members | <<Type name here>> |
| *denotes membership on Finance/Audit Committee | |
| Senior Management | <<Type name and title here>> |
Appendix C
Financial Statements
Appendix D
Transmittal Form
The Proponent has read and agrees to all instructions, and provisions, contained in the Request for Proposal. Acceptance of the instructions and provisions, and agreement to be bound by the statements made in the Proposal, is confirmed.
Proponent’s Full Legal Name: __________________________________________________
Signature of Person Authorized to contract on Behalf of Proponent: ____________________
Name and Title of Authorized Person: ______________________________
Date of Signing: ____________________
Appendix E
Issues for Engagement Letter
The purpose of setting out issues that should be addressed in the engagement letter is to ensure that the parties reach and document their expectations about their relationship, including: roles, responsibilities, rights obligations, deliverables, timing, terms of payment for fees and expenses, communications and dispute resolution.
It is expected that the engagement letter proposed by an audit firm will meet professional standards and will reflect the firm’s experience in properly managing its business relationships with its clients. At the same time, <<Name>> wants to ensure that its expectations are met, and responsibility and accountability are appropriately allocated.
Issues that should be addressed in the engagement letter: