Request for Proposal (RFP) External Audit Services. RFP Finance 16-03

Transcription

1 (RFP) RFP s will be received not later than: Thursday, September 1, :00 a.m. Local Time Addressed to: Attn: Kimberley Pope, Director of Finance/Treasurer RFP, 988 County Rd 10, Millbrook, ON L0A 1G0 For providing for the Township of Cavan Monaghan Page 1 of 18

2 Table of Contents Section Page 1.0 General Background The Project Scope of Work General Auditing Requirements Other Information for Consideration Respondent Information Required in this Request Insurance and Indemnification Schedule of Events Ownership and Delivery of Materials Pre-Submission and Other Information Evaluation Criteria General Information for Respondents Response Forms A D Page 2 of 18

3 1.0 General Background The Township is a lower tier municipality located in the County of Peterborough. The Township of Cavan Monaghan includes three ward areas; Cavan, Millbrook and North Monaghan. The Township has a five member Council that typically meets on the first and third Monday of each month. The Senior Staff consisting of the Chief Administrative Officer and Senior Management Team oversees a staff compliment of approximately 30, plus volunteer fire fighters. The Township has appointed boards and committees along with various volunteers who work on behalf of the municipality at various functions. The Township operates generally under the authority of the Municipal Act of Ontario, as well as other legislation as appropriate and is governed under the Council/Chief Administrative Officer and municipal government. A Council by-law has established the control of appointed administration with the Chief Administrative Officer responsible for implementation of Council policies and initiatives through the various municipal departments. The projected outcome of this is the procurement of auditing services for the years ending December 31, 2016, 2017 and The Township reserves the right to further extend this contract for the years ending December 31, 2019 to December 31, 2020 providing the following applies: The supplier s performance in supplying the goods or services is considered to have met the requirements of the contract. The Director of Finance / Treasurer has determined that the exercise of this option is in the best interest of the Township. Funds are available in appropriate accounts within the Township s Council approved budget including authorized revisions to meet the proposed expenditure. The Township reserves the right not to accept any proposal and to select individual items specified in the scope of work. All proposals must be on Township forms which are available by download from by upon request, or at the Township Municipal Office, 988 County Road 10, Millbrook, ON L0A 1G0. Should the documents be downloaded from the website, please send a confirmation to kpope@cavanmonaghan.net to be registered on the potential proponents list. Failure to register may result in your proposal being disqualified. All proposals must include the original RFP document as reference in the submitted proposal, inclusive of any addendum. The original RFP is available by download from or at the Township Municipal Office, 988 County Road 10, Millbrook, ON, L0A 1G0. Page 3 of 18

4 2.0 The Project Scope of Work The audit services shall include all duties as required under the Ontario Municipal Act and Generally Accepted Auditing Standards, and other applicable acts. Services shall include the examination of the records and financial statements of the Township of Cavan Monaghan and the Cavan Monaghan Libraries. The successful firm will be responsible for completion of the Non-Consolidated and Consolidated Financial Statements, including revenue, capital, reserve and trust funds, for the following: Corporation of the Township of Cavan Monaghan, Cavan Monaghan Libraries, and Millbrook Business Improvement Area (BIA) Board The successful firm will prepare the annual Financial Information Return for the Township of Cavan Monaghan, with the assistance of the Director of Finance / Treasurer, and be responsible for review of the FIR prior to filing with the Ministry of Municipal Affairs & Housing. Expectations of the Appointed Auditor will include: Audit Trust Fund statements for the Township of Cavan Monaghan. Complete the annual audit questionnaire required by the Ministry of Municipal Affairs & Housing. Provide assistance with the preparation of the notes to the financial statements. Print and Issue financial statements in the firm s standard format. Issue a management letter for the Township and each of the entities. Attend the necessary meetings of Council and if requested, attend a Library Board meeting. Conduct other special audit engagements as required (i.e. Infrastructure Stimulus Funding) or provide professional advice. Conduct Annual PSAB 3150 audit requirements. Provide all working Lead Sheets to Director of Finance/Treasurer upon completion of audit. Review financial processes to ensure all internal controls, accounting policies and accounting estimates are appropriate and reasonable. The Auditors will also provide the following non-consolidated information to the Cavan Monaghan Libraries: Provide all working Lead Sheets to the CEO/Librarian and copy the Director of Finance/Treasurer upon completion of audit. Review financial processes to ensure all internal controls, accounting policies and accounting estimates are appropriate and reasonable. All information provided in response to this RFP, must contain sufficient detail to support the services that are being proposed. The Cavan Monaghan Library audit/review must Page 4 of 18

5 comply with the municipal legislative requirements and broken out separately. Incomplete submissions will not be considered. It is expected that the successful firm will be auditors of the Township of Cavan Monaghan for a period of three years; however, it is understood that either party may cancel this contract with two months notice prior to the annual letter of engagement. An annual letter of engagement outlining the terms of the audit should be submitted for the review and approval of all parties. 3.0 General Auditing Requirements 3.1 Planning the Audit: In accordance with generally accepted auditing standards and the Municipal Act, the work should be adequately planned and properly executed; a) Before October 1st of each year, the auditors shall meet with the Director of Finance / Treasurer for the purpose of defining a schedule of responsibilities which will lead to an orderly and timely assembly, audit, and submission of the annual financial statements and information returns. These responsibilities will include the preparation of working papers to be prepared by the Director of Finance / Treasurer, any photocopies of documents required, and any other work that can be performed by the Director of Finance / Treasurer prior to the commencement of the audit. b) The above-mentioned schedule shall be finalized before November 30th and shall set out the following: i. The dates by which information will be prepared and submitted to the auditors; and ii. A list of required schedules, working papers, analyses and other information specifying the persons who will be responsible for their iii. preparation and completion. The critical dates outlined in this schedule will be embodied in the annual engagement letter. Included in the annual engagement letter also will be the specific responsibilities to be discharged by each of the parties, and a requirement that the Director of Finance / Treasurer be consulted prior to any change. c) On-site audits must be scheduled for completion by March 15th of each year. Onsite auditing shall be between the hours of 8:30 a.m. and 4:30 p.m. with a senior auditor present. d) The Financial Information Return must be provided to the Director of Finance / Treasurer of the Township of Cavan Monaghan Council no later than two weeks prior to the annual MMAH filing deadline in May. e) The audited financial statements must be presented to the Township of Cavan Monaghan Council no later than June 30th each fiscal year. Page 5 of 18

6 3.2 Cavan Monaghan Libraries Requirements a) In support of the timelines in 3.1, the Auditor shall meet with the CEO/Librarian and the Director of Finance/Treasurer for the purpose of defining a schedule specific to the Library, including the working papers and critical dates with the date of delivery of draft financial statements to the Library. b) All working papers are to be provided by the CEO/Librarian. c) The financial statements for the Libraries must be provided to the CEO/Librarian no later than two weeks before the filing deadline for the Annual Charitable Tax return on June 30 th each fiscal year. d) Cavan Monaghan Library costs are to be documented separately. 3.3 Systems and Procedures Review: In accordance with generally accepted auditing standards, there should be an appropriate organized study and evaluation of those internal controls on which the auditor subsequently relies determining the nature, extent and timing of auditing procedures. a) The internal control systems and accounting procedures shall be evaluated at least annually. b) In accordance with generally accepted auditing standards, the purpose of this evaluation will be to determine whether the auditors can rely on the internal controls, subject to their compliance testing, and to determine appropriate substantive audit procedures necessitated by identified weaknesses or absence of internal controls. c) Accordingly, where weaknesses or absence of internal controls are identified, they should be reported in writing to the appropriate contacts. Where weaknesses are reported, it would be appropriate to suggest or recommend ways in which the weaknesses can be corrected or compensated for. d) Similarly, upon discovery of information or conditions, which might otherwise lead to a qualified opinion on the financial statements, or a denial of opinion, the auditors shall immediately communicate these matters in writing to the appropriate contacts. 3.4 Compiling Audit Evidence In accordance with generally accepted auditing standards, sufficient appropriate audit evidence should be obtained by such means as inspection, observation, inquiry, confirmation, computation and analysis, to afford a reasonable basis to support the content of the report. It should be noted that the matters to be considered and procedures to be followed should not be limited to those outlined in the paragraph above. Where the respondents audit objectives and procedures would not include all of the example objectives and procedures, or would include other considerations, the respondents are asked to explain these differences. Page 6 of 18

7 3.5 Completing the Engagement a) The auditors shall attend such meetings as are required to discuss the draft audited financial statements with Council and the appropriate contacts. b) The auditors shall deliver the finalized financial statements to the Township and the Cavan Monaghan Library Board by no later than June 10th of each year. c) No later than thirty (30) days following delivery of the audited statements, the auditors shall deliver a Post-Audit Management Letter to the appropriate contacts outlining, but not limited to, the following: Concerns relative to internal controls and systems determined during the audit; A report on the progress or lack of progress made on implementing suggested improvements in systems and controls recommended in prior years; and Any other comments which may assist the appropriate contacts with their day-to-day management of the affairs of the Township. 3.6 Possible Additional Services The responsibilities of the auditors are normally geared to performing sufficient work to enable them to express an opinion on the financial statements, although occasionally it may be necessary to provide additional audit and/or non-audit services. Outlined below are the types of additional services which have arisen in the past and which may or may not occur in the future. The list is not intended to be all-inclusive of the items that may be encountered. These items should be considered in your fee proposal as requested and highlighted as additional items. i. Changes in financial statement format and presentation as required by the various supporting Ministries requiring regrouping and restatement of the previous year s comparative figures. ii. iii. iv. Restating previous year s comparative figures as a result of changes in the application of accounting principles as required by the amendments of the CICA Handbook or Ministries. Special audits arising from the introduction of new programs as requested by the various Ministries. Attendance at the Council meetings other than to present the year-end audited financial statements. v. Review of year end auditor entries with appropriate contacts. vi. Advisory Services: Information regarding any advisory services which may be available to the Township at no additional charge, including but not limited to, publications dealing with matters such as HST, pension reform, income tax, employee benefit plans, internal audit, financial systems development, computer system s and programs, and cash management. Page 7 of 18

8 4.0 Other Information For Consideration The Township of Cavan Monaghan is committed to the accessibility principles of preventing and removing barriers in accessing goods and services for people with disabilities and is bound by the Standards under the Accessibility for Ontarians with Disabilities Act, 2005 as may be amended from time to time. Regulations enacted under the Act apply to every designated public sector organization and other third parties that provide goods and services to the members of the public. The professionals engaged by the Township in the completion of work, will meet or exceed compliance with all applicable regulations under the Accessibility for Ontarians with Disabilities Act, 2005 as may be amended from time to time. It is the responsibility of the professionals to ensure they are fully aware of, and meet all requirements under the Act. A Declaration of Accessibility Compliance will be required by the successful proponent. Consolidated Financial Statements: Visit our website for review of our Audited Financial Statements. Population: Approximately 8,600 Annual Operating Budget: Approximately $6 Million Number of Employees: Approx. 100 (incl. Council members, Part-time and Fulltime staff/managers, Library staff & volunteer Fire Fighters) Cheques Issued Yearly: Approximately 1800 plus payroll direct deposit payments and online payments. Gross Payroll: Approximately $2.2 Million Books & Records: Fully computerized accounting system (Keystone & CityWide) and payroll software (EasyPay). Active Bank Accounts: 3 Cavan Monaghan Library Annual Operating Budget: Approximately $300,000 with about 85% of revenue subsidized by the Township Levy and 15% from grants and other revenues. Number of Employees: Approx. 7 (including part-time and full time librarians and support staff. Board members are volunteers.) Cheques Issued Yearly: Approximately 200, with payroll direct deposit payments and approximately sixty online payments per year. Gross Payroll: Approximately $180,000 Books & Records: Fully computerized accounting system (Keystone) with separate server installation at the Library, plus payroll processing provided by the municipality. Other Information may be available upon request. Page 8 of 18

9 5.0 Respondent Information Required in this Request Each Respondent must respond to each of the following areas in a clear and comprehensive manner. a) Indicate expected payment schedule. b) Specifically identify any additional work or services that exceed the services requested herein and the associated costs thereof. c) Provide references for a minimum of two (2) equivalent size and scope projects. d) Clearly indicate the respondent s confidentiality practices. 5.1 Submission Format The proposal should, as a minimum, cover the following items: i. A profile of your firm, including breadth of other audit assignments, resources and support services available, and a description of the firm s philosophy with regard to municipalities. ii. The names and contacts of other municipalities with which the firm s staff has had experience. iii. The names of the partners and staff of the firm who will be engaged on this municipal audit. iv. The office which would be responsible for the audit and the name of the partner in charge of the audit should be specified. v. Where it is proposed that audit technicians would be employed on this engagement, a description should be provided to support their technical ability and their understanding of generally accepting auditing standards as they apply in particular to municipalities. vi. A Fee proposal indicating the following (Cavan Monaghan Libraries fees are to be separated): The firm s understanding of the work to be done, having regard to the responsibilities and other matters set out in these proposal documents; A total Fee proposal for regular audit services, in Canadian Dollars, for each of the fiscal years ending: A) December 31, 2016 to December 31, 2018; And B) December 31, 2019 to December 31, 2020; Other fees for any additional work/service, not included in the total contract fee for the completion of the. A schedule outlining the tentative dates when the work for the audit would be performed given the deadline dates. It is expected that the audit should also be considered as a local audit and the Township would not be responsible for disbursements incurred by the firm which are caused by sending staff from outside locations. Harmonized Sales Tax (HST) to be shown separately. Page 9 of 18

10 6.0 Insurance and Indemnification The successful bidder shall, at its own expense, obtain and maintain required insurance until the termination of the contract, and provide the Township with evidence of: 6.1 Commercial General Liability Comprehensive general liability insurance on an occurrence basis for an amount not less than Five Million ($5,000,000) dollars for any negligent acts or omissions by the bidder relating to its obligations under this Agreement. Such insurance shall include, but is not limited to Bodily Injury and Property Damage including loss of use; personal injury; contractual liability; premises, property & operations; non-owned automobile liability, broad form property damage, owners and contractors protective, products and completed operations, employees as additional Insured, occurrence property damage, contingent employers liability, cross liability and severability of interest clauses; Such insurance shall add the Corporation of the Township of Cavan Monaghan as an Additional Insured subject to a waiver of subrogation in favour of the Township with respect to the operations of the bidder. This insurance shall be non-contributing with and apply as primary and not as excess of any insurance available to the Township. The successful bidder shall indemnify and hold the Corporation of the Township of Cavan Monaghan harmless from and against any liability, loss, claims, demands, costs and expenses, including reasonable legal fees, occasioned wholly or in part by any negligence act or omission whether willful or otherwise by the bidder, its agents, officers, employees or other persons for whom the bidder is legally responsible. 6.2 Professional Liability Insurance Professional liability (errors and omissions) insurance coverage shall be obtained to a limit of not less than Five Million ($5,000,000) on claims made basis. Such coverage shall be maintained for a period of two years subsequent to conclusion of services provided under this Agreement. The successful bidder shall at their own expense obtain and maintain insurance as stipulated in the contract for the duration of the contract. The bidder shall provide the Township with a letter from their insurance broker confirming their ability to meet the insurance requirement as set out in the contract and that if they are successful they will provide the Township with a certified copy of a liability insurance policy covering public liability and property damage for no less than the minimum amounts within 10 days of notification of acceptance of the contract award. The policy must contain: A cross liability clause or endorsement: An endorsement certifying that the Corporation of the Township of Cavan Monaghan and the successful bidder are included as an additional named insured: An endorsement to the effect that the policy or policies will not be altered, cancelled or allowed to lapse without thirty days prior written notice to the Township of Cavan Monaghan. Page 10 of 18

11 7.0 Schedule of Events Item Date issued August 6, 2016 Proposals submitted (deadline) 11:00 a.m. September 1, 2016 Proposal opening 11:10 a.m. September 1, 2016 Completion of evaluation, scoring and interviews September 9, 2016 Report to Council to Award RFP September 19, 2016 Commencement of services October 1, 2016 Each Respondent must submit three (3) bound copies of the RFP no later than 11:00 a.m. Thursday, September 1, 2016, and will be opened at 11:10 a.m. Thursday, September 1, 2016, addressed to the Township of Cavan Monaghan as follows: Township of Cavan Monaghan 988 County Rd 10 Millbrook, ON L0A 1G0 Attention: Kimberley Pope, Director of Finance/Treasurer The outside of the shipping carton/envelope must be clearly marked Finance together with the Respondent`s name and address. Any Proposals received after the above deadline will be returned unopened to the Respondent. 8.0 Ownership and Delivery of Materials The successful proponent agrees that all information and material that constitutes any part of this project, acquired or prepared by or for successful proponent pursuant to this contract shall, both during and following the termination of the contract, be the sole property of the Township, including all information and material provided by the Township to the proponent for the purposes of this contract. Upon the request of the Township, the successful proponent agrees to deliver forthwith to the Township all materials and information specified in the request that is the property of the Township and in the possession or under the control of the successful proponent. No copy or duplicate of any such material or information delivered to the Township shall be retained by the successful proponent and/or supplier team without the prior written approval of the Township. The successful proponent further agrees not to destroy any material or information which is the property of the Township without the Township s prior written approval. This provision survives the expiration or termination of the contract. Page 11 of 18

12 9.0 Pre-Submission and Other Information If any Respondent has questions concerning the request, finds discrepancies or omissions in the solicitation document, or requires clarifications, such matters should be submitted in writing to: Kimberley Pope Telephone Director of Finance/Treasurer Fax County Rd 10 Millbrook, ON L0A 1G0 Contact with Council members is prohibited and can be considered as grounds for disqualification from the selection process. The Township reserves the right to request additional data or information after the Proposal date if, in the Township s sole view, such data or information is considered pertinent to aid the review and evaluation process. The Township reserves the right to supplement, add to, delete from and change this solicitation document. Respondents will be advised by fax or of any changes that are made. The Township reserves the right to reject any portion of any Proposal and/or reject all Proposals, to waive any informalities or irregularities in the Proposals, or to re-invite or to re-advertise. Any amendments and/or questions will be circulated to all registered on the potential bidders list. Page 12 of 18

13 10.0 Evaluation Criteria The following criteria, which are not in any particular order, will be used to determine the ranking of the respondent and proposed system: Direct company & principal staff experience with relevant experience. Experience of the project team members that will be assigned to this project. References for past performance with other municipalities preferably in the Ontario marketplace, in providing similar services within the last three years. Work plan and Schedule/Timetable Quality and Completeness of RFP response including identifying work methodology Cost of consultant services with fee structure details including the method and basis of compensation including a breakdown of overall cost including all fees and other charges Interviews may be conducted if deemed necessary by the evaluation committee Evaluation Committee The evaluation committee will be comprised of the Director of Finance / Treasurer and CAO, with confirmation of reasonable costing for library audit fees from the CEO/Librarian. The committee will evaluate the submissions based only on the established criteria as presented in the original bid documentation. A copy of the completed evaluation forms along with committee recommendation will be kept in the care and control of the Director of Finance / Treasurer to be kept in a confidential file and utilized for dispute resolution if necessary. The Director of Finance / Treasurer shall prepare a recommendation to Council. Page 13 of 18

14 11.0 General Information for Respondents Sub-Contracting The selected respondent, who has been approved by the Council of the Township, shall be considered to be the prime contractor and shall keep the operation totally under their control and shall not assign, transfer or sub-contract any portion without the written approval of the Township. The consent of the Township for such assignment or subcontracting shall not relieve the prime contractor from completion of the project in accordance with the terms of the contract. Where a respondent submits a joint proposal or proposes a partnership arrangement, the respondent must assume the lead or prime contractor position. As such, the respondent will have the overall responsibility for completing the project as proposed. Contract Amendments and Revisions i. No amendment or revision to a contract shall be made unless the amendment is in the best interest of the Township. ii. No amendment that changes the price of a contract shall be agreed to without a corresponding change order describing the change in requirement or scope of work. iii. Amendments to a contract are subject to the identification and availability of sufficient funds in appropriate accounts within Township council approved budget including authorized revisions. Access to Information The disclosure of information received relevant to the issue of a bid solicitation or the award of contracts emanating from bid solicitations shall be made by the appropriate offices in accordance with the provisions of the Municipal Freedom of Information and Protection of Privacy Act, R.S.O. 1990, as amended. All records and information pertaining to tenders, proposals and other sealed bids, which reveal a trade secret or scientific, technical, commercial, financial, legal or other human resources information supplied in confidence implicitly or explicitly, shall remain confidential if the disclosure could reasonably be expected to: i. Prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organizations; ii. Result in similar information no longer being supplied to the Township where it is in the public interest that similar information continues to be so supplied; iii. Result in undue loss or gain to any person, group, committee or financial institution or agency; or iv. Result in information whose disclosure could reasonably be expected to be injurious to the financial interests of the Township. Page 14 of 18

15 Response Form - A Identification of Respondent Name of Audit Firm Address City Province Postal Code Telephone No. Fax No. Name of Person Signing For Firm Position of Person Signing For Firm Signature Person signing must be authorized to sign on behalf of the Company/Individual represented, and to bind the Company/Individual to statements made in response to this contract. Do not remove any page from this quotation document. Failure to return all pages with your bid may invalidate your bid. Page 15 of 18

16 Response Form - B RE: Contract for Audit Services The undersigned has examined the scope of the project described herein and is fully informed as to the nature of the work and the conditions related to its performance. I/WE declare that I/WE have carefully examined addenda no.* to no. * and hereby acknowledge the same to be part and parcel of any contract to be let for all work therein described. I/We hereby propose to furnish all necessary machinery, tools, apparatus and other mean required to do all the work, furnish all materials and to complete the work herein described in strict accordance with the plans, therefore, and in conformity with the requirements of the specifications and supplemented specifications as may be provided by the Owner for the performance of said Work. This tender submission constitutes a valid and irrevocable offer which will remain open for acceptance by the Township for no less than sixty (60) days following the closing date. All amounts are in Canadian funds. To be completed by respondent. Signature Date Person signing must be authorized to sign on behalf of the Company/Individual represented, and to bind the Company/Individual to statements made in response to this contract. Page 16 of 18

17 Response Form - C References References Must be completed and returned with submission References: State names, addresses and telephone numbers and addresses of clients for whom your company has performed similar services: 1. Name: Address: Telephone: 2. Name: Address: Telephone: 3. Name: Address: Telephone: References will be used as part of the evaluation process Page 17 of 18

18 Response Form - D Fee Proposal Audit costs within scope described in RFP, : Audit Year 2016 Township (excluding HST) Library (excluding HST) Consolidated Total (excluding HST) Consolidated Total (including HST) Total Hourly rate for additional services considered out of scope: Name of Person Signing Position of Person Signing Signature Person signing must be authorized to sign on behalf of the Company/Individual represented, and to bind the Company/Individual to statements made in response to this contract and must have a full understanding of the responsibilities and work to be completed in RFP, documents. Page 18 of 18