RFP AUTHOR:Yellow is to be filled-in or changed by you—blue are alternate choices/options—red are instructions to be deleted before finalizing.

Logo of Organization

Request for ProposalS

for the Audit of

<Organization Name

Issue date:Date>

Delivery of Proposals:

Electronic proposals must be sent by email to:Contact Name

(Electronic proposals must be a single PDF document)

or

By hand or courier:

Organization Name>

<Address>

Attention: <Contact Person>

(<Quantity complete copies of each proposal must be received)

Closing date and time:

<Date>at<Time> Pacific Time

Location and Date of Information Meeting:

<Location >

<Date and time>

Proponents are advised to fill out and return the Receipt Confirmation Form (Appendix A) to the Contact Person before date of information meeting

Contact Person:

Contact Name>, email:<Contact Email

Note to RFP Author: This template is prepared for government organizations included in the government reporting entity of the Province of British Columbia

Date of Last Revision: July2013

RFP AUTHOR:Yellow is to be filled-in or changed by you—blue are alternate choices/options—red are instructions to be deleted before finalizing.

BACKGROUNDRFP Author: update all fields prior to completing

1.Purpose of the Request for Proposals

2.Period of Service Agreement

3.Type and Scope of Audit

3.1.Timing of the Auditor’s Reports

3.2.Other Reporting Requirements

3.3.Key Audit Dates

3.4.Management Letter

4.Determination and Payment of Fees

5.Information about <Organization Name>

5.1.Description

5.2.Key Information Systems

5.3.Audit Responsibility

5.4.Work Done by <Organization Name> Staff

5.5.Audit / Finance Committee

5.6.Internal Audit

REQUEST FOR PROPOSALS ADMINISTRATION

6.Definitions

7.Request for Proposals Process

7.1.Enquiries

7.2.Information Meeting

7.3.Closing Date and Time

7.4.Late Proposals

8.Proposal Format

9.Additional Terms

9.1.Eligibility

9.2.Irrevocability of Proposal

9.3.Definition of a Contract

9.4.Negotiation Delay

9.5.Changes to Proposal

9.6.Proponents’ Expenses

9.7.Acceptance of Proposal

9.8.Liability for Errors

9.9.Modification of Terms

9.10.Ownership of Proposals

9.11.Confidentiality of Information

9.12.Collection and Use of Personal Information

9.13.No Lobbying

9.14.Reciprocity

10.Evaluation

10.1.Unsuccessful Proposals

10.2.Timetable

10.3.Basis for Selection

APPENDICES

  1. Receipt Confirmation Form
  2. Proposal Transmittal Form
  3. Audit Team Composition and Budgeted Audit Hours
  4. Draft Service Agreement

Attachments to the Draft Service Agreement:

  1. Request for Proposals
  2. Auditor’s Proposal

RFP AUTHOR:Yellow is to be filled-in or changed by you—blue are alternate choices/options—red are instructions to be deleted before finalizing.

BACKGROUND

1.Purpose of the Request for Proposals

This Request for Proposals (RFP) invites audit firms to submit proposals for the performance of audit services with respect to the financial statements of <Organization Name>.

2.Period of Service Agreement

The selected Proponentwill perform the audit services as described abovefor one year, commencing with the <Year>reporting year. The<Organization Name> will retain the option to extend the Service Agreement for up to <Quantity> additional years, in one-year increments, provided both parties agree to the renewal. The fiscal year of the <Organization Name> is <Fiscal period>.

3.Type and Scope of Audit

The audit of the Financial Statements of <Organization Name> (the financial audit) must be conducted in accordance with Canadian Auditing Standards (CAS).

The audit report should express an opinion as to whether the financial statements present fairly, in all material respects, the financial position of the entity, and the results of its operations, change in its net liabilities, and its cash flows for the year in accordance with Canadian Generally Accepted Accounting Principles (GAAP).

Note to RFP Author: If the financial statements are prepared on a compliance basis and not in accordance with GAAP, the wording of the second paragraph in this section should be amended as follows:

The audit report should express an opinion as to whether the financial statements are prepared, in all material respects, in accordance with section 23.1 of the Budget Transparency and Accountability Act of the Province of British Columbia. Note that because this accounting framework is not in accordance with GAAP, there are additional reporting requirements to the Office of the Auditor General as described in section 3.2.4.

3.1.Timing of the Auditor’s Reports

The Auditor will:

  1. provide the financial statement auditor’s report, addressed to<Organization Name>and the Minister of<Ministry Responsible>[1], having format and content consistent with Canadian Auditing Standards;
  2. providethe Audit / Finance Committee of <Organization Name> with the auditor’sreports in sufficient time to enable<Organization Name> to meet any statutory reporting requirements such as timing and distribution where the report is needed for inclusion in the Public Accounts of the Province, or must be submitted to the responsible minister. The timing for the report is <Date>. This dateis based on current information and is subject to change. See Section 3.3 for other Key Dates.

3.2.Other Reporting Requirements

Notes to RFP Author:

  • Paragraphs3.2.2 and 3.2.3 should only be included if your organization is classified by the Office of the Auditor General as a significant component[2] of the government reporting entity. The organization should contact the Office of the Auditor General if they are unsure whether they are classified as significant or non-significant.
  • Paragraph 3.2.2 should not be included if your organization is a government business enterprise type of organization.
  • Paragraph 3.2.4 should only be included if your organization prepares its financial statements on a compliance basis and not in accordance with GAAP.
3.2.1.Role of the Auditor General

The Auditor General is the auditor of the Summary Financial Statements of the Province of British Columbia. 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 Canadian Auditing Standards. The Auditor will, as auditor of <Organization Name>, communicate with the Auditor General concerning his or her 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 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<Organization Name> about the level of involvement expected for each year’s financial audit. <Organization Name> will advise the Auditor each year about the expected level of involvement of the Auditor General in that year’s financial audit.

3.2.2.Group Audit Reliance Procedures

Reporting requirements to the Auditor General regarding the financial audit of the organization will also include providing audit documentation such as risk assessments, key planning documents, corrected and uncorrected audit differences, audit results for significant risks and reports to management and those charged with governance of the organization. The Auditor is required to notify the Auditor General of any concerns regarding the honesty and integrity of management; suspected or detected fraud; material weaknesses in internal control over financial reporting; and related party transactions that are not in the normal course of operations. Auditors are also required to report issues that should be brought to the attention of the Auditor General in relation to the responsibilities of his or her legislated mandate.

3.2.3.Subsequent Events Assurance

With respect to the audit of the financial statements of <Organization Name>, the Auditor will also be required to perform additional subsequent event procedures as the Auditor General’s audit of the Province’s Summary Financial Statements is nearing completion. These procedures are typically completed up to the second Friday of June each year (“Subsequent Events Date”); however, this date may be subject to revision. Subsequent events assurance procedures would likely include:

  1. Obtaining an understanding of any procedures that management of<Organization Name>has established to ensure that subsequent events are identified.
  2. Making inquiries of management (and those charged with governance) as to:
  3. Whether subsequent events that have occurred during the period from the client’s year end date to the Subsequent Events Date might affect the financial statements;
  4. Management or board decisions taken at meetings where the minutes are not yet available; and
  5. Current status of items that were accounted for on the basis of preliminary or inconclusive data.
  6. Reading relevant documents such as financial reports prepared by the client subsequent to the client’s year end date and minutes of meetings of governing Boards and important committees for the period from the client’s year end date to the Subsequent Events Date.
  7. Obtaining a letter of management representation from the organization’s officials and a letter regarding any outstanding legal matters from its lawyers as of the Subsequent Events Date.
  8. Making inquiries of management regarding specific matters that might require adjustment to and / or disclosure in the financial statements such as changes in contractual obligations, sale or acquisition of assets, changes or proposed changes to long-term debt, etc.
3.2.4.Reporting Impact of not applying Public Sector Accounting Standards (PSAS)

As <Organization Name>prepares its financial statements in compliance with section 23.1 of the Budget Transparency and Accountability Act of the Province of British Columbia, there are additional reporting requirements to the Auditor General. The Auditor General is required by legislation to report on the fair presentation of the summary financial statements of the Province in accordance with PSAS. Therefore, the Auditor General will require the Auditor to report on how the accounts would differ had they been reported in accordance with PSAS. Note that this requirement does not apply to balances and transactions between <Organization Name> and the Province, as these amounts are eliminated when consolidated into the Province’s summary financial statements.

3.3.Key Audit Dates

The key audit datesfor the financialaudit are as follows:

Event / Key Audit Date for each Fiscal Year
Presentation of Audit Planning Report to the Audit / FinanceCommittee of the Board / <Date>
First draft of financial statements sent to Auditor / <Date>
Near final draft of financial statements sent to Auditor / <Date>
Final unsigned financial statements sent to Auditor / <Date>
Presentation of Final Report to the Audit / FinanceCommittee / <Date>
Financial statements and annual report approved by the Board / <Date>
Entity reporting deadline for OCG / <Date>
Auditor reports to the Office of the Auditor General / <Date>

3.4.Management Letter

The Auditor will prepare a management letter for the financial audit that highlights observations and recommendations related to internal control, accounting issues, or other matters identified during the audit. A request for a copy of the management letter will be included in the annual reliance letter sent by the Auditor General to all government organization auditors.

While performing the audit, the Auditormust be mindful that the publicand legislators expect <Organization Name>to conduct business in a proper and prudent manner, giving every regard to spending employers’money wisely. The Auditorshould remain alert while carrying out the audit for significant instances or patterns of behaviour that give rise to concerns about:

  1. accountability in the use and management of employers’monies;
  2. waste or misuse of <Organization Name>resources;
  3. probity in behaviour; or
  4. compliance with financial and other legislation.

A request for a copy of the management letter will be included in the annual reliance letter sent by the Auditor General to all government organization auditors.

4.Determination and Payment of Fees

The Auditor will invoice <Organization Name> for the audit fees for services completed as contemplated under this Request for Proposals. Amounts billed will be according to the tendered amounts set out in the Service Agreement with the Auditor.

After completion of the <Number of Years>year under theService Agreement, either the Auditor or <Organization Name>may call for a meeting to determine whether the audit fees for the remaining <Number of Years>years should be revised. Such a meeting may only be convened if:

  1. There has been or will be a significant change in the size and scope of<Organization Name>’s operations that has resulted, or will result, in changes to the nature and extent of the audit work and that could not have been anticipated at the closing date of the RFP;
  2. There have been significant changes to professional standards for carrying out an audit in accordance withCanadian Auditing Standards, where such changes were not known and could not have been anticipated at the closing date of the RFP;
  3. There have been significant changes to accounting standards or the accounting framework adopted by <Organization Name> that has resulted, or will result, in changes to the nature and extent of the audit work and that could not have been anticipated at the closing date of the RFP; or

In the event that additional workneeds to be performed in any particular year to meet Canadian Auditing Standards due to issues outside of the control of the Auditor, the Auditor will discuss with <Organization Name>whether an additional fee may be charged for such work. The Auditor will provide <Organization Name> with full details of such additional audit work and the reasons for it.

5.Information about <Organization Name>

5.1.Description

RFP Author: this section provides any proponents for the RFP with details of the organization. Some examples of key information to include here or as appendices are:

  • Enabling legislation
  • Mission and vision statements
  • Details of normal operating activities
  • Promotional or other materials outlining the organization’s operations
  • Corporate plan
  • Annual plan
  • Business plan
  • Details of unique regulatory or audit requirements
  • A discussion regarding any contentious issues
  • Details of the financial reporting framework applicable to the organization
  • A copy of an updated organization chart

5.2.Key Information Systems

The key financial statement components or processes are tabulated below.

RFP Author: this table should disclose all major information systems that the organization relies on for financial reporting.

Financial Statement Component orKey Business Process / Key Application Name

5.3.Audit Responsibility

The overall responsibility for the audit rests with <Name>,<Title>.

5.4.Work Done by <Organization Name> Staff

A major objective of <Organization Name> is to ensure quality audits and services at a reasonable cost. Accordingly, Organization Name>staff are prepared to assist the Auditor by providing information, documentation and explanations as required. Assistance would include the following:

  1. Preparation of financial statements, including notes and schedules;
  2. Preparation of year-end working papers and lead sheets;
  3. Preparation of accounting schedules and reconciliations;
  4. Comparative analysis of current and prior results;
  5. Location of documentation supporting transactions selected for testing;
  6. Typing of confirmations and other related correspondence;
  7. Other reasonable assistance as required by the Auditor.

The above would include meetings with audit staff during the planning and field work stage of the audit. All <Organization Name> staff involved with the audit process are located at <Address>.

5.5.Audit / FinanceCommittee

<Organization Name> has an Audit / Finance Committee, which assists the Board in fulfilling its oversight responsibilities by reviewing:

  1. the financial and performance information that will be provided to the Province and the public;
  2. the systems of internal controls, that Management and the Board have approved;
  3. all audit processes;
  4. compliance with laws, regulations and policies that may apply to <Organization Name>
  5. RFP Author: Include any other relevant responsibilities of the Audit or Finance Committee

5.6.Internal Audit

RFP Author: amend this section as appropriate for your circumstances.

<Organization Name> has an Internal Audit department which carries out both financial and value for money audits. Although some elements of the department’s annual work-plan may be of value to the Auditor, the department does not carry out any specific tasks in support of the financial statements audit.

OR

<Organization Name> does not have an Internal Audit Department.

REQUEST FOR PROPOSALS ADMINISTRATION

The following terms and conditions apply to this RFP and to the subsequent Service Agreement. Submission of a proposal in response to this RFP indicates acceptance of all the terms and conditions that follow and that are included in any addenda issued by <Organization Name>. Provisions in proposals that contradict any of the terms of this RFP will be as if not written and do not exist.

6.Definitions

Throughout this Request for Proposals, the following definitions apply:

  • “Contract” or “Service Agreement” means the written agreement resulting from this Request for Proposals executed by <Organization Name> and the Auditor;
  • “Auditor” means the successful Proponent to this Request for Proposals who enters into a written Contract with<Organization Name>;

RFP Author: if the organization uses an acronym or short form for the organization name, then include the following bullet point

  • “<Organization Acronym / Short form of name>” means <Full Organization Name>;
  • “must”, or “mandatory” means a requirement that must be met in order for a proposal to receive consideration;
  • “Proponent” means an individual or a company that submits, or intends to submit, a proposal in response to this Request for Proposals;
  • “Province” means Her Majesty the Queen in Right of the Province of British Columbia and includes <Organization Name>;
  • “Request for Proposals” or “RFP” means the process described in this document; and
  • “should” or “desirable” means a requirement having a significant degree of importance to the objectives of the Request for Proposals.

7.Request for Proposals Process

Proponents are advised to fill out and return the Receipt Confirmation Form (Appendix A)