REQUEST FOR PROPOSAL FOR EXTERNAL AUDIT SERVICES THE CHILDREN S AID SOCIETY OF OTTAWA (CASO) Issue Date: August 11, 2017 Closing Deadline: 16:00 hours, Friday September 1st, 2017 Delivery Method: Proponents are requested to deliver two (2) sealed Proposals in packages marked Proposal External Audit Services to be received at: The Children s Aid Society of Ottawa 1602 Telesat Court Ottawa, Ontario K1B 1B1 Attention: Neal Reevie The name and address of the Proponent must be clearly indicated on the face of the sealed package containing the Proposal. Proposals sent by fax or e-mail will not be accepted.
Contents Overview... 2 Nature of Assignment... 3 The Children s Aid Society of Ottawa Support to be Provided... 4 Reporting... 4 Term... 4 Fees and Pricing Requirement... 4 Closing Date and Time... 5 Inquiries and Instructions to Proponents... 5 Proposal Content, Selection and Evaluation Process... 6 Assessment Criteria Weight (refer to Schedule 1 for more detail)... 6 Timelines... 7 Confidentiality... 7 Proprietary Information... 7 Proprietary Rights... 7 Proposal Costs... 8 Indemnification... 8 Proponents Statement of Understanding... 8 Conflict of Interest: No Use or Inclusion of Restricted Parties... 8 Schedule 1: Content & Assessment Criteria... 10 Overall Quality of Submission (5%)... 10 Audit Approach and Scheduling (30%)... 10 Firm and Audit Team Capability and Experience (30%)... 10 Audit Cost (35%)... 11 1
Overview The Children s Aid Society of Ottawa (CASO) is a non-profit charitable organization operating with the direction of a volunteer Board of Directors. The Province of Ontario, through the Ministry of Children and Youth Services, provides operational funding as determined by a provincial funding framework based on community demographics and service volumes. This structure allows CASO to be accountable to the Ministry, and yet retain a degree of operational autonomy and flexibility. CASO s Board of Directors is 15 members strong, and possesses the multi-disciplined representation necessary for effective governance. The Board and the Finance Committee each meet monthly with management. CASO is held accountable in the form of both external and internal compliance monitoring to ensure provincial standards, regulations, and directives from the Ministry of Children and Youth Services are met, in addition to fulfilling CASO s Vision, Mission, and Strategic Priorities. The CASO is a mandated service under the Child and Family Services Act charged with the responsibility for protecting children and acting as the parent for children in its care. In 16/17, Ministry transfer payments to the Society for the delivery of Child Welfare services amounted to $70,516,419. Additional 16/17 funding is summarized as follows: Expenditure Recoveries and Other Revenue $2,744,871. This mainly includes payments made to CASO while a child is in care and HST rebates. Provincial funding for other programs closely associated with Child Welfare $1,960,485, including funding received through the City of Ottawa to operate a Headstart Nursery School. The Children s Aid Foundation of Ottawa contributes funding for activities of CASO or its clients. However, the Foundation is incorporated as a separate entity, and maintains separate books and auditors. Currently, CASO s financial statements are not included within its Annual General Report, and are prepared in English only. The Society currently employs approximately 460 full and part-time staff. Payroll is performed in-house using Empath software, a Human Resources Management System, and interfaces to provincially provided and maintained Oracle accounting software which is an integral part of the Province s Child Protection Information Network (CPIN) software, designed for use by Children s Aid Societies across the province. 2
A copy of the previous CASO audited financial statements is attached. Other useful information may be obtained from our website at www.casott.on.ca Nature of Assignment 1. Perform an examination of CASO s records and financial statements in accordance with Canadian Generally Accepted Auditing Standards to express an audit opinion on CASO s financial statements and provide an auditor s report for same, for approval by the Board at the regular board meeting (held in early July) prior to the Annual General Meeting held in September each year. Certain elements of the financial Statements of particular interest to various users include: A separate Statement of Revenue and Expenses for CASO s Headstart Nursery School based on the program s December 31 st year end A schedule of CASO s various Program Revenues and Expenses indicating the ending surplus or deficit as at CASO s March 31 st year end 2. Prepare a draft management letter of findings during the course of the audit and provide management with an opportunity to discuss the issues before final content of the management letter is determined. 3. Perform a review of the agency s performance with regard to the Broader Public Sector Attestation of Compliance. 4. Ensure CASO is advised of any changes in legislation and Canadian generally accepted auditing standards that may affect required accounting and/or reporting practices. 5. Be available for consultation on accounting issues as they arise. 6. Attend two scheduled meetings of the Finance, Human Resources and Audit Committee, including a pre-audit meeting, and a post-audit meeting to present the Audited Financial Statements and Audit Findings Report. 7. Attend the Annual General Meeting of CASO. 3
The Children s Aid Society of Ottawa Support to be Provided 1. CASO s finance staff will prepare the financial statements and all related notes to the statements. 2. All submissions and any reconciliations required for the Ministry of Child and Youth Services will be completed by CASO. 3. CASO s finance team will prepare working paper file schedules together with all supporting documentation, a copy of which will be made available to the auditors for their files. 4. CASO s staff will be available to respond to questions and to complete any additional reconciliations required by the auditors during the course of the audit, as agreed to before the commencement of the audit. 5. Space within CASO s premises will be provided for the audit firm s staff for the duration of all required field work. Reporting The successful audit firm will report to the CASO Board of Directors through the Finance, Human Resources, and Audit Committee. Term The Proposal provided is to cover the audit firm fees for three fiscal years. 2017-18 2018-19 2019-20 The first term commences September 12, 2017 for the first fiscal year ending March 31, 2018. Fees and Pricing Requirement The audit fees are to be specified by fiscal year together with a schedule of hourly rates for each of the audit staff participating in the audit. 4
Rates for any additional services available are to be provided in the quotation. All prices bid shall include applicable taxes, insurance and all other charges of every kind attributable to the work. This is intended to be a fixed price contract with no extras unless specifically provided for otherwise in this RFP. All work required or desired under the terms of this RFP is to be included in the price and the price is not to be subject to adjustment, including due to unknown or undisclosed conditions, increases in costs and taxes, cost of labour, unavailability of labour or materials, increases in cost of materials other than the changes in HST. Closing Date and Time Proposals must be received by the Society, not later than Friday September 1st, 2017 by 4:00 p.m. CASO will not accept submission of any Proposals after the Closing Time on the Closing Date. CASO is not responsible for delays caused by any delivery service, including Canada Post. Inquiries and Instructions to Proponents Proponents must complete the registration form accessible from our website. It is the Proponent s responsibility to understand all aspects of the RFP and to obtain clarification if necessary before submitting their Proposal. All inquiries regarding this Request for Proposal shall be directed by e-mail only to neal.reevie@casott.on.ca with copies to charris@casott.on.ca. Inquiries must be received by noon August 23rd. Management s answers to all inquiries shall be provided to all registered Proponents no later than the end of day Monday August 28 th. The Society reserves the right to revise this RFP up to the Proposal submission date and will forward any amendments to all Registered Proponents as soon as practicable. No statement, whether oral or written, made by the Society, shall be deemed or construed to add to, subtract from, or otherwise amend the Proposal documents unless issued as an Addendum in accordance with this item. Proponents may not make modifications to their Proposals after the closing date and time except as may be allowed by the Society. The Society may reproduce any of the Proponent s Proposal and supporting documents for internal use. The Society will not be obligated in any way by the Proponent s Proposal. The Society will not return any of the Proponent s Proposal or supporting documents. Proposals that do not comply strictly with the terms and conditions hereof may be declared informal and/or disqualified. Proposals that are incomplete, conditional, or obscure will be rejected. Submissions not meeting mandatory requirements will be disqualified. The signed Proposal submission shall be taken as a statement of understanding the requirements and agreement to comply with the requirements and any supplementary terms 5
and conditions, or addenda stated in the Proposal documents. The signed Proposal submission confirms pricing and by signing the Proposal submission forms, agreement is made to no omission of any items from the Proposal and will be bound by law to supply the services as specified at the prices proposed. Proposal Content, Selection and Evaluation Process In order to facilitate the evaluation process, the following general format is preferred for the RFP submission: Executive Summary Understanding of Scope and Objectives Approach and Timelines Experience and Qualifications of firm and the proposed audit team (including references) Cost per each year CASO bases any decision to award a contract on the Proposals submitted. Proponents should include all requirements, terms and conditions it may have in their Proposal, and should not assume that any opportunity will exist to add such matters after the Proposal is submitted. The CASO reserves the right, at its sole discretion, to negotiate with any Proponent as it sees fit, singularly or concurrently. The Society reserves the right to: seek clarification deemed necessary to evaluate the responses received; and conduct reference checks submitted with each Proponent s Proposal. The Society will evaluate the submitted Proposals based on a combination of qualifications and price. Proposals will be evaluated based on all information provided by the Proponent at the time of submission as well as any additional clarification information requested. Each Proposal will be reviewed to determine if the Proposal is responsive to the submission requirements outlined in the RFP. Following the evaluation, the Society reserves the right to accept or reject any and all Proposals. Final selection is subject to the Board s approval. It is expected that approval from the Board will occur no later than September 12 th, 2017. Unsuccessful Proponents will be notified in writing by September 22 nd, 2017. Assessment Criteria Weight (refer to Schedule 1 for more detail) Overall submission, quality and completeness 5% 6
Audit approach and scheduling 30% Relevant firm experience and references 15% Capability and experience of the audit team 15% Cost 35% TOTAL 100% Timelines Although every attempt will be made to meet all dates, the Society reserves the right to modify or alter any or all dates at its sole discretion. All Registered Proponents will be notified in writing, by facsimile or e-mail, to the address provided by the Proponent any dates subjected to change. Confidentiality The contents of this RFP, information divulged by the Society during the performance of the services and any resulting deliverables are strictly confidential and may not be divulged or disclosed to anyone without the prior written consent of the Society. The Proponent shall not issue any publicity or news release pertaining to this RFP, or any selection or contract, without obtaining the prior written approval of the Society. Proprietary Information Materials submitted in response to this competitive procurement shall become the property of the Society. Any information in the Proposal that the Proponent desires to claim as proprietary and exempt from disclosure under the provisions of applicable law shall be clearly designated. Each page claimed to be exempt from disclosure must be clearly identified by the word Confidential printed on it. Marking the entire Proposal exempt from disclosure will not be honored. Proprietary Rights Except as required in the performance of the work or as authorized in writing by the owner, or as required by applicable law (including the Freedom of Information and Protection of Privacy Act (Ontario) and the Personal Information Protection and Electronic Documents Act (Canada)), each party will keep confidential all proprietary information of the other, including, without limitation, all unpublished business and technical information, papers, or records, however produced. 7
Proposal Costs The Proponent has the sole responsibility for any costs associated with preparing its Proposal in response to this Request for Proposals. In no event will CASO be liable for the costs of preparation or submission of any Proposal, whether accepted or rejected. Indemnification The successful Proponent agrees to indemnify and hold harmless the Society, its members, Directors, Officers, Employees and Agents from and against all suits, judgments, claims, demands, expenses, actions, causes of action and losses for any and all liability for damages to property and injury to persons (including death), and for any incidental, indirect, special or consequential damages or any loss of use, revenue or profit as a result of or arising out of or in relation to the performance by the Proponent Audit firm under or any breach of the terms of the Agreement by the Proponent or arising from or relating to the RFP including the Proponent s own default, negligence or misconduct, or those of its employees, agents and contractors. Proponents Statement of Understanding It is understood that the Proponent has carefully examined the RFP and all of the Proposal documents. The Proponent also understands and accepts the said RFP and Proposal documents, and for the prices set forth in the Proposal, hereby offers to furnish all tools, apparatus and other means of implementation, and materials to complete the terms and conditions and requirements in strict accordance with the RFP. There is no representation, express or implied, made as to the accuracy or completeness of any information supplied by CASO or any others to any of the Proponents including whether the information is suitable for the purposes of any Proponent and CASO expressly disclaims any and all liability for any errors or omissions in such information or which may be contained in any oral or written communication transmitted or made available to any Proponent and all risk with respect to unknown, undisclosed conditions shall rest with and remain with the Proponent. The contract shall be governed and interpreted in accordance with the laws of the Province of Ontario and Government Procurement Directives. Conflict of Interest: No Use or Inclusion of Restricted Parties a) Restricted Parties are not eligible to advise any Proponent in the RFP selection process and must not participate as an employer, advisor, Audit firm, investor, member or any other capacity whatsoever with any Proponent. The Society may, in its sole and absolute discretion, disqualify a Proponent who uses any matter including in its Proposal or preparation thereof a Restricted Party. The onus is on the Proponent to ensure it does not use or include any Restricted Party. b) Restricted Parties include any person who would be defined to be in conflict of interest under the provisions of the Municipal Act and any parties, because of their direct, recent or current involvement in the selection process or with any of the parties to the selection 8
process, including the RFP evaluation team, the Society, its employees, its officers and directors. c) Proposals may be disqualified at the sole and absolute discretion of the Society if: a) the Restricted Party is acting as an advisor or member of the Proponent s team; b) the Proponent makes contact with any person who the Proponent is prohibited by the RFP from contacting; c) they include a false or misleading statement, claim, warranty or representation. 9
Schedule 1: Content & Assessment Criteria Recommended details of interest to CASO in the assessment process: Overall Quality of Submission (5%) Audit Approach and Scheduling (30%) Description of audit approach, i.e. organization of audit team, use of computer audit specialists Availability and timely response to discuss complex accounting, tax, and reporting issues Approach to post-audit/management letters Approach to resolution of accounting and disclosure issues Ability to meet our deadlines Availability to attend Annual General Meeting and Finance, Human Resources and Audit Committee meetings as required Scope, timing and nature and percentage of work you plan to perform on an interim basis Special services that may differentiate your firm from your competitors Firm and Audit Team Capability and Experience (30%) Information as to the location of the office which would be responsible for the audit, the names of the partner(s), and senior staff who will be assigned Ability to meet independence requirements Capacity to staff for the size and scheduling requirements of this engagement Industry experience Experience with similar not-for-profit organizations, include references Experience with organizations operating in the Broader Public Sector Provides specific examples of audits performed within the public sector of similar scope and complexity completed within the last two years, including references Details of team skills or experience i.e. with fund accounting which are directly relevant to the team s capacity to conduct the audit Experience and continuity of audit personnel Availability of local computer assurance specialists Capacity to provide assistance in other areas e.g. commodity tax, human resources, payroll issues, etc. 10
Audit Cost (35%) A firm quotation for fees as specified under Fees and Pricing Requirement The firm s Out of Pocket Expense policy (i.e. Actual expenses incurred based on receipts, a flat fee, percentage, other) An estimate of hours and rates per hour broken down between various staff required to carry out the audit Periodically, it may be necessary for Management to discuss accounting and reporting matters with the successful proponent, please provide policy on billing for routine telephone consultations and inquiries. A schedule of hourly rates by position level for advisory work outside the scope of the audit. Information regarding any advisory services that may be available to the organization free of charge on routine matters. These services may include staff assistance, seminars, and/or publications relating to tax, employee remuneration and benefits, accounting changes, etc. A focus on reducing overall cost of external audit services to CASO while at the same time maintaining/enhancing value CASO reserves the right to meet with Proponents to discuss the Proposal 11