Request for Proposal External Audit Services

Transcription

1 Request for Proposal External Audit Services Closing Date and Time: Proposals must be received by October 9, 2018, 1200 Hours and shall be addressed to: Collette Sunday Band Administrator, MEDes, CAPA Village Road Douglas Lake, BC Inquiries: Dianne Bastedo CPA, CGA, CAFM Chief Financial Officer

2 Purpose Upper Nicola Band (UNB) is seeking proposals from interested and qualified accounting firms for the provision of external audit services of the band s annual financial statements in accordance with generally accepted auditing standards for the fiscal years inclusive. Subject to satisfactory performance of the external audit services by the successful firm, the term may be extended, if mutually agreeable to both parties. Background UNB is a First Nation of the Okanagan Nation, with a membership of approximately 979 members. Upper Nicola is located 45 km east of Merritt and 90 km south of Kamloops, British Columbia, Canada. Upper Nicola has eight reserves located near Nicola Lake and Douglas Lake. Upper Nicola s two main residential communities are located on Nicola Lake (IR #1), and at the west end of Douglas Lake (IR #3). These communities are known locally as Spaxomn (Douglas Lake) and Quilchena (Nicola Lake). The reserves comprise approximately 30,848 acres that span a range of 50 kilometers along Highway 5A and the Douglas Lake Road. UNB has passed their UNB Finance Administration Law (FAL) in Currently, the UNB FAL is replacing the UNB FAL 2014 as we seek financial management system certification from the First Nations Financial Management Board. UNB is working to be eligible to receive the New Fiscal Relationship 10 Year Grant from Indigenous Services Canada. In 2016, Upper Nicola Band passed Property Tax Laws, under the requirements of the First Nations Tax Commission. UNB has interest in the following entities: Stuwix Resources Joint Venture, Stuwix Resources Limited, Nicola Valley Indian Services Association, Spayum Development Corporation, All Nations Trust Company and Upper Nicola Holdings Limited Partnership, Accounting Structure As a First Nation Band, UNB is required to prepare its financial statements in compliance with the Upper Nicola Band Financial Administration Law and the First Nations Fiscal Management Act. Additionally, UNB is subject to further reporting requirements, as outlined in Indigenous Services Canada s (ISC) Year End Reporting Handbook. UNB receives funding for programs, services and band support from various funding agencies including ISC, First Nations Health Authority, and Canada Mortgage and Housing Corporation. Upper Nicola Band also has own source revenue streams resulting from forestry business activities. UNB has an investment account. Accounting for each program activity is maintained separately using Xyntax Accounting System.

3 Services Required The responsibility of the external auditors is to examine the financial statements prepared by UNB staff and to express an audit opinion thereon. The financial statements will include the operations of all programs within the band reporting entity, as well as additional reporting requirements outlined in the Year End Reporting Handbook and/ or the 10 Year Grant requirements. The audit report will be addressed to the UNB Finance Audit Committee and then Members of Council of the Upper Nicola Band; it must disclose the scope of the examination and state that the audit was performed in accordance with generally accepted auditing standards. The report will also include an opinion as to whether the financial statements conform to Generally Accepted Accounting Principles. UNB s financial statements for the year ending March 31, 2018 can be requested from UNB s CFO, Dianne Bastedo. The selected audit firm must be knowledgeable of Canadian Public Sector Accounting Board standards and advise the UNB on amendments to the Standards. The firm will also be required to attend UNB Finance Audit Committee and or Council meetings, upon request, to make presentations and discuss the audit and related financial issues. Audit Timetable (from UNB Financial Administration Law) Event Pre-audit meeting/detailed audit plan and schedule Audit field work Draft financial statements Audited financial statements to Band Council/Finance Committee Final Audit Report and Management Letter Mid-year Audit Review Timetable Beginning of May June First week of July Mid-July End of July December Additional Services Ancillary studies, audits or examinations of other accounts, records and transactions may be required from time to time. Contractual agreements for such other examinations will be negotiated separately at the time of the request. Proponents are encouraged to include information relevant to the scope of engagements that their firm can provide. Client Assistance Provided to Auditor UNB staff will be available to assist the auditors by providing information, working papers, schedules, and funding agreements. UNB staff is responsible for the year-end close and will prepare the financial statements. Supporting documents will be provided to the auditors on a timely basis. The preparation of all confirmations will be the responsibility of the Audit firm. UNB s solicitors will provide representation letters regarding the status of suits, threatened litigation and other contingent liabilities.

4 Proposal Response Format I. Confirm Independence from the Upper Nicola Band, its related bodies, Councillors and officers and members; II. Confirm that your company is in good standing with regulatory bodies (Chartered Professional Accountants of Canada, Canadian Institute of Chartered Accountants, Certified General Accountants Association of Canada, or the Society of Management Accountants of Canada) and/or their respective counterparts in the BC. III. State the location and overall size of the firm performing the service. Describe the range of activities performed by the firm such as auditing, tax service, and accounting or management services. Identify the accounting firm s experience with Public Sector Accounting Board standards and First Nation engagements. IV. State the proposed audit team s qualifications and experience with Public Sector Accounting Board standards and First Nation engagements. Detail skills or experience which are directly relevant to the capacity of the team who would be assigned to conduct the audit of UNB. V. Outline the firm s fee structure for the delivery of audit services. Rates must be provided in Canadian funds and exclusive of GST (as a First Nation Band, UNB does not pay tax on services for band management). Proposal Evaluation and Selection Process i. Proposals received by closing time will be screened for compliance with the requirements stated in this Request for Proposal. UNB reserves the right to (at its sole discretion) determine whether or not any proposal is compliant. ii. iii. iv. After a proposal response has been determined to have met the requirements, all proposals will be evaluated to determine the best value to UNB. All proponents will be contacted to notify them of the status of the proposal within a reasonable period of time after award. In accordance with UNB policy, an award will be made to the successful Proponent only upon formal approval by Band Council. v. UNB does not bind itself to the lowest or any bidder.

5 Addendum to Request for Proposal for Audit Services The agreement for audit services between Upper Nicola Band (UNB) and the selected accounting firm will also include an agreement for the audit of the following related entity: UNB CMHC Housing; Also, for the audit or review, and corporate taxes of the following entities: Upper Nicola Band Development Corporation Upper Nicola Holding Limited Partnership Bids must include costs for the audit of these financial statements. Financial statements for each of these entities are available by contacting: Dianne Bastedo, CPA, CGA, CAFM Chief Financial Officer