BRANDON AND AREA PLANNING DISTRICT Request for Proposals Audit Services

Transcription

1 BRANDON AND AREA PLANNING DISTRICT Request for Proposals Audit Services Sealed proposals, clearly marked RFP Audit Services will be received by the undersigned until 4:00 pm., local time, May 27, Allison Bardsley Executive Director/ Secretary Treasurer Phone: (204) Brandon and Area Planning District 638 Princess Ave Brandon, MB R7A 0P3

2 SCOPE OF WORK TO BE COMPLETED: Brandon and Area Planning District ( BAPD ) requests sealed proposals from qualified firms to provide professional audit services for the District. The proposal will cover the fiscal period from January 1, 2016 to December 31, 2018 inclusive and is subject to the approval of the Board. The awarded contract may be extended for an additional three-year term. The District requires attest audit services to be performed on the District s general purpose financial statements, for the purpose of expressing an opinion on the fair presentation of the District s financial position, in accordance with generally accepted accounting standards. Subsequent to completion of the year end audit, the auditor will be expected to provide an internal control memorandum advising of any issues related to internal control, accounting systems, and legality of actions, which in the auditor s opinion should be brought to management s attention. Prior to submission of the audited financial statements and supplementary report, the audit firm s staff is required to review the proposed audit opinion report and supplementary report with the Executive Director. The auditor will be required to present the annual audited financial statements to the Board no later than March 30 in the year following the year for which the audit is prepared. The District will not reimburse responding firms for any expenses incurred in preparing proposals in response to this request. Proposals received become the property of Brandon and Area Planning District and will not be returned to the bidder. The Request for Proposal must be in the format outlined in Schedule A, which is attached. Submissions will not be accepted by facsimile or electronic transmission. BACKGROUND INFORMATION: Brandon and Area Planning District is a partnership between The City of Brandon, the Rural Municipality of Cornwallis and The Rural Municipality of Elton. The major purpose of the District is to provide for an increased level of co-operation and co-ordination among the participating municipalities, primarily with regard to land use and land development issues. Each member municipality appoints three members of Council to the District Board. The District office is located at 638 Princess Ave, Brandon Manitoba. Page 2 of 5

3 The District employs an Executive Director and a Secretary Treasurer (combined equivalent of 1 FTE) who oversees the financial administration of the Board and the revenues and expenses of the rural members. City of Brandon staff oversee the financial administration for City of Brandon Planning and Building Safety Department and is not included in the District audit. The District has a December 31 st year-end. A copy of the 2015 Audited Financial Statements is attached. Evaluation Procedure: The Budget and Finance Committee will evaluate the proposals received. Any one or all firms may be requested to make an oral presentation, which will provide an opportunity to answer any questions concerning their proposal. The District Board has sole authority to make the appointment. The District Board reserves the right to reject any or all proposals submitted. For more information relating to the request for proposal, please contact Allison Bardsley, Executive Director for Brandon and Area Planning District. Telephone (204) a.bardsley@brandon.ca Page 3 of 5

4 Schedule A for Audit Request for Proposal The following represents the format in which all proposals must be submitted: 1. Title Page A page showing the request for proposal subject, the name of the auditor s firm, its local address, the name and number of a contact person, the date and the name of the District. 2. Table of Contents The table of contents should clearly identify what is included in the proposal, by section and by page number. 3. Letter of Introduction A letter of introduction containing the name, address and telephone number of the individual authorized to represent and bind the firm to all commitments made in the firm s proposal and an understanding of the work to be performed. The letter should include an affirmative statement indicating that the firm and all assigned key professional staff are properly registered to practice in Manitoba and meet the qualifications set out in subsection 184(5) of The Municipal Act. 4. Profile of the Firm Give the location of the office from which the work is to be done, and the number of partners, managers, supervisors, seniors and other professional staff employed at that office. Describe the range of activities performed by the office such as audit, accounting or management service and similar engagements with other government entities. Describe the local office s computer capability, including the number and experience of personnel skilled in computer science and computer audit techniques, who will work on the audit. 5. Partner, Supervisory Staff Qualifications and Experience List the staff to be involved with the audit, specifying each individual s role and experience/qualifications. (Brief resumes for each senior person assigned to the audit should be included in an appendix). 6. Audit Approach Provide a description of the firm s approach to the performance of the attest audit, including the extent to which a systems oriented approach is used, and the computer used. This description should also encompass the extent and timing of the planned use of municipal accounting, internal audit and data processing personnel where it is applicable. State how data processing will be used in the examination and estimate the data processing resources the District will need to supply, in terms of computer time and operator time. Page 4 of 5

5 7. Compensation Estimate the total hours, out-of-pocket costs and the resulting all-inclusive maximum fee for which the requested work will be done for the audit of the District. 8. Additional Data Since data not specifically requested is not to be included in the foregoing sections, give any additional information considered essential to the proposal in this section. If there is no additional information to present, state in this section, There is no additional information we wish to present. 9. Annual Audit Completion Date The final completed audited financial statements must be received by the District on or before March 30 th of the year following the year being audited, and all fieldwork must be completed on or before March 1 st of that year. Page 5 of 5

6 Financial Statements December 31, 2015

7 Management's Responsibility To the Directors of : Management is responsible for the preparation and presentation of the accompanying financial statements, including responsibility for significant accounting judgments and estimates in accordance with Canadian accounting standards for not-for-profit organizations. This responsibility includes selecting appropriate accounting principles and methods, and making decisions affecting the measurement of transactions in which objective judgment is required. In discharging its responsibilities for the integrity and fairness of the financial statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safeguarded and financial records are properly maintained to provide reliable information for the preparation of financial statements. The Board of Directors is composed primarily of Directors who are neither management nor employees of the Organization. The Board is responsible for overseeing management in the performance of its financial reporting responsibilities, and for approving the financial information included in the annual report. The Board fulfils these responsibilities by reviewing the financial information prepared by management and discussing relevant matters with management and external auditors. The Board is also responsible for recommending the appointment of the Organization's external auditors. MNP LLP is appointed by the Directors to audit the financial statements and report directly to them; their report follows. The external auditors have full and free access to, and meet periodically and separately with, both the Board and management to discuss their audit findings. April 7, 2016 Executive Director

8 Independent Auditors Report To the Members of : We have audited the accompanying financial statements of, which comprise the statement of financial position as at December 31, 2015, and the statements of operations, changes in net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of as at December 31, 2015 and the results of its operations, changes in net assets and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Brandon, Manitoba April 7, 2016 Chartered Professional Accountants 1401 Princess Avenue, Brandon, Manitoba, R7A 7L7, Phone: (204) , 1 (800)

9 Statement of Financial Position As at December 31, Restated Assets Current Cash (Note 3) 476, ,166 Accounts receivable 14,585 23,804 Goods and services tax receivable 189 1,749 Prepaid expenses and deposits , ,001 Capital assets (Note 4) 1,009 45, , ,074 Liabilities Current Accounts payable and accruals 16, ,186 Customer deposits (Note 5) 3, , ,784 Net Assets Unrestricted 36,116 98,720 Invested in capital assets 1,009 45,073 Restricted for capital purposes 44,317 44,317 Restricted for development plan 200,728 24,180 Restricted for members 190, , , , ,074 Approved on behalf of the Board Director Director The accompanying notes are an integral part of these financial statements 1

10 Statement of Operations Restated Revenue Government Contributions City of Brandon 87,520 12,156 Rural Municipality of Cornwallis 57,074 64,824 Rural Municipality of Elton 35,295 23, , ,692 Permits Building 43,144 66,574 Plumbing 5,080 7,774 48,224 74,348 Fees Conditional use applications 1,665 4,795 Development plan amendments 11,250 2,100 Rezoning amendments 3,800 - Subdivision applications 9,190 5,790 Subdivision lot fees 900 6,075 Variation orders 1,505 3,615 28,310 22,375 Other Interest 3,291 2,022 Other income 163 2,404 Zoning memorandums Gain on sale of capital assets 303, ,860 5,051 Total revenue 563, ,466 Continued on next page The accompanying notes are an integral part of these financial statements 2

11 Statement of Operations Restated Total revenue (Continued from previous page) 563, ,466 Office (Schedule 1) 17,727 36,729 Administrative (Schedule 2) 69,780 29,485 Development/Planning/Rural Services (Schedule 3) 202, ,407 Board of Directors (Schedule 4) 12,805 11,015 Total expenses 302, ,636 Excess (deficiency) of revenue over expenses 260,817 (65,170) The accompanying notes are an integral part of these financial statements 3

12 Statement of Changes in Net Assets Unrestricted Invested in Restricted for Restricted for Restricted for capital assets capital development members Restated purposes plan Net assets, beginning of year, as previously reported 93,509 45,073 44,317 24, , ,460 Correction of error 5, ,211 - Net assets, beginning of year, as restated 98,720 45,073 44,317 24, , ,460 Excess (deficiency) of revenue over expenses 261,069 (252) ,817 (65,170) Investment in capital assets 43,812 (43,812) Internal transfers (367,485) , , Balance, end of year 36,116 1,009 44, , , , ,290 The accompanying notes are an integral part of these financial statements 4

13 Statement of Cash Flows Restated Cash provided by (used for) the following activities Operating Cash received from customers 90,523 81,621 Cash received from Municipal governments 179,889 92,922 Cash paid to suppliers (258,178) (42,781) Cash paid to employees (148,973) (81,219) Interest received 3,291 2,022 Interest paid (5) (34) (133,453) 52,531 Investing Purchase of capital assets - (1,512) Proceeds on disposal of capital assets 347, ,018 (1,512) Increase in cash resources 213,565 51,019 Cash resources, beginning of year 263, ,147 Cash resources, end of year 476, ,166 The accompanying notes are an integral part of these financial statements 5

14 Notes to the Financial Statements 1. Purpose of the organization The was formed under the Planning Act of Manitoba, and created by an Order-In-Council on January 23, The purpose of the is to efficiently deliver a quality, customeroriented service while encouraging community planning, building integrity and life safety. The Organization is a not-for-profit organization exempt from income taxes. 2. Significant accounting policies The financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations set out in Part III of the CPA Canada Handbook - Accounting, as issued by the Accounting Standards Board in Canada and include the following significant accounting policies: Cash and cash equivalents Cash and cash equivalents include balances with banks and short-term investments with maturities of three months or less. Cash subject to restrictions that prevent its use for current purposes is included in restricted cash. Capital assets Purchased capital assets are recorded at cost. Contributed capital assets are recorded at fair value at the date of contribution if fair value can be reasonably determined. Amortization is provided using the straight-line method at rates intended to amortize the cost of assets over their estimated useful lives. Method Rate Buildings straight-line 5 % Computer equipment straight-line 33 1/3 % Furniture and fixtures straight-line 20 % Long-lived assets Long-lived assets consist of capital assets. Long-lived assets held for use are measured and amortized as described in the applicable accounting policies. When the Organization determines that a long-lived asset no longer has any long-term service potential to the organization, the excess of its net carrying amount over any residual value is recognized as an expense in the statement of operations. Write-downs are not reversed. Revenue recognition The Organization follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Restricted net assets Net assets restricted for capital purposes were established for the purpose of acquiring capital assets by the District. Net assets restricted for development plan were established for the purpose of funding development plan reviews. Net assets restricted for members were established for the purpose of paying for District expenses. Measurement uncertainty The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accounts receivable are stated after evaluation as to their collectability and an appropriate allowance for doubtful accounts is provided where considered necessary. These estimates and assumptions are reviewed periodically and, as adjustments become necessary they are reported in excess of revenues and expenses in the periods in which they become known. 6

15 Notes to the Financial Statements 2. Significant accounting policies (Continued from previous page) 3. Cash Financial instruments The Organization recognizes its financial instruments when the Organization becomes party to the contractual provisions of the financial instrument. All financial instruments are initially recorded at their fair value, including financial assets and liabilities originated and issued in a related party transaction with management. Financial assets and liabilities originated and issued in all other related party transactions are initially measured at their carrying or exchange amount in accordance with Section 3840 Related Party Transactions. At initial recognition, the Organization may irrevocably elect to subsequently measure any financial instrument at fair value. All financial assets and liabilities are subsequently measured at amortized cost. Transaction costs and financing fees directly attributable to the origination, acquisition, issuance or assumption of financial instruments subsequently measured at fair value are immediately recognized in the statement of operations for the current period. Conversely, transaction costs and financing fees are added to the carrying amount for those financial instruments subsequently measured at cost or amortized cost. Financial asset impairment The Organization assesses impairment of all of its financial assets measured at cost or amortized cost. The Organization groups assets for impairment testing when available information is not sufficient to permit identification of each individually impaired financial asset in the group; there are numerous assets affected by the same factors; no asset is individually significant. Management considers whether the issuer is having significant financial difficulty; whether there has been a breach in contract, such as a default or delinquency in interest or principal payments in determining whether objective evidence of impairment exists. When there is an indication of impairment, the Organization determines whether it has resulted in a significant adverse change in the expected timing or amount of future cash flows during the year. If so, the Organization reduces the carrying amount of any impaired financial assets to the highest of: the present value of cash flows expected to be generated by holding the assets; the amount that could be realized by selling the assets; and the amount expected to be realized by exercising any rights to collateral held against those assets. Any impairment, which is not considered temporary, is included in current year statement of operations. The Organization reverses impairment losses on financial assets when there is a decrease in impairment and the decrease can be objectively related to an event occurring after the impairment loss was recognized. The amount of the reversal is recognized in the statement of operations in the year the reversal occurs. The Planning District has designated $434,349 ( ,216) to reserves for development plan payments, contract inspection services and members' District expenditures. 4. Capital assets Accumulated Net book Net book Cost amortization value value Buildings ,812 Computer equipment 30,204 29,195 1,009 1,261 Furniture and fixtures 72,526 72, , ,721 1,009 45,073 The accompanying notes are an integral part of these financial statements 7

16 Notes to the Financial Statements 5. Customer deposits Restated Advertising deposits 3, Financial instruments The Organization, as part of its operations, carries a number of financial instruments. It is management's opinion that the Organization is not exposed to significant interest, currency, credit, liquidity or other price risks arising from these financial instruments except as otherwise disclosed. 7. Economic dependence The Organization's primary source of revenue is grants from the municipalities of Cornwallis, Elton and the City of Brandon. The grant funding can be cancelled if the Organization does not observe certain established guidelines. As at the date of these financial statements the Organization believes that it is in compliance with the guidelines. 8. Correction of an error During the year the Organization determined that accounts receivable from the City of Brandon was understated by $2,807 and customer deposits were overstated by $2,404. For 2014 the impact of this correction has resulted in an increase in permit revenue of $2,807, an increase in other revenue of $2,404 and an increase in unrestricted net assets of $5,211. The accompanying notes are an integral part of these financial statements 8

17 Schedule 1 - Schedule of Office Expenses Expenses - - Office Advertising Amortization ,546 Audit 6,215 12,430 Bank charges and interest 5 34 Canada pension plan 2,480 1,621 Cellular telephone - 1,558 Employment insurance 1, General Legal 1,701 3,105 Miscellaneous Office maintenance Office supplies Payroll processing fees Printing, postage and stationery 1, Rent Technology 3,000 2,160 Telephone - (35) Workers compensation ,727 36,729 9

18 Schedule 2 - Schedule of Administrative Expenses Expenses Administrative Benefits 12,485 4,083 Salaries 56,801 20,402 Service contracts 494 5,000 69,780 29,485 10

19 Schedule 3 - Schedule of Development/Planning/Rural Services Expenses Expenses Development/Planning/Rural Services Cellular telephone Consulting fees - 9,550 Mileage 94 - Other 87 - Salaries and benefits 66,579 68,623 Service contracts 134, , , ,407 11

20 Schedule 4 - Schedule of Board of Directors Expenses Expenses Board of Directors Indemnities 10,629 9,135 Mileage 2,138 1,880 Workers compensation 38-12,805 11,015 12