CCAB Audited Financial Statement – Auditor
Request for Proposals
Issued by: Canadian Council for Aboriginal Business (CCAB)
Request for Proposals Issued on: March 29, 2018
Proposal Submission Deadline: 5:00 pm EST on April 12, 2018
CCAB shall not be obligated in any manner to any Proponent whatsoever until a written agreement has
been duly executed with a Supplier.
- Statement of Purpose
The Canadian Council for Aboriginal Business (“CCAB”) is seeking bids from qualified accounting firms (“Audit Firm and/or The Auditor”) who have demonstrated professional competence and experience in annual financial audits (“Services”) outlined in this Request for Proposal (“RFP”). Audits must be planned and executed in accordance with Canadian generally accepted auditing standards. Audits will result in an opinion to the fairness of the annual consolidated financial statements and related schedules of the organization.
- Background Information
2.1 Company Overview
Since 1984, CCAB has been bridging the gap between the mainstream corporate sector and the Aboriginal community. CCAB works to improve economic self-reliance of Aboriginal communities while assisting corporate businesses. It is a non-partisan/non-profit organization. It is largely supported through corporate funding, event sponsorship and membership dues with some support from Government for Research and Program development.
CCAB was founded in 1984 by a small group of visionary business and community leaders committed to the full participation of Aboriginal Peoples in Canada’s economy. CCAB offers knowledge, resources, and programs to both Aboriginal and non-Aboriginal member companies that fosters mutual economic opportunities with Aboriginal Peoples and business across Canada.
After 32 years working to improve economic self-reliance of Aboriginal communities and assisting corporate businesses, CCAB has grown to over 550 member companies across Canada and the majority are Aboriginal businesses. As we continue to grow our membership, programs, research, and event offerings, CCAB invites you to join us in bridging the gap between Canada’s Aboriginal and business communities.
2.2 Organization Chart
An organization chart is attached.
2.3 Financial Statements
CCAB’s audited financial statements for the year ended December 31, 2016 are attached.
2.4 Key Financial Systems
CCAB utilizes the Quick Books financial system.
2.5 Audit Responsibility
The overall responsibility for the audit rests with the President/CEO and Director, Finance.
2.6 Audit and Finance Committee
The Audit and Finance committee has been established by the Board of Directors and meets regularly throughout the year. The individuals in charge of the audit will be expected to meet with the Finance and Audit committee.
2.7 Internal Audit
CCAB does not have an internal auditor.
Audited Financial Statement – Auditor RFP
- Scope of Services Required
The Auditor will be required to examine the financial records, systems and controls of the CCAB in accordance with Canadian generally accepted auditing standards and to then provide written audit reports with an audit opinion on the financial statements. The Auditor will be required to attend a meeting of the Board to present and explain as necessary the audit reports.
In addition, the Auditor is expected to provide a management letter(s), addressed to the Treasurer, for the year outlining the results of the audit with any noted significant discrepancies, areas of concern or weaknesses encountered in the examination of the financial statements and provide recommendations for improvement.
CCAB does have an audit and finance committee. The Auditor will report audit findings to the Audit and Finance Committee and the Director of Finance, Financial Reporting during the course of the audit engagement.
The Auditor will ensure all new or changed reporting requirements and auditing standards are communicated to CCAB, in writing, to ensure that financial statements and notes prepared by management are in compliance with current reporting requirements and auditing standards.
The Auditor will respond to and discuss with the CCAB’s staff any accounting, auditing, tax and other issues arising throughout the year. Inquiries, if any, would be infrequent, usually brief and specific in nature, and may require a written confirmation. It is expected that such inquiries would be included in the fee schedule provided and would not incur additional billing or that CCAB staff would be advised of any additional charges prior to services being provided.
Annual Audit Schedule
The following audit schedule will be required for the year of the agreement:
- Pre audit meeting with staff – mid February
- Audit plan and schedule – 3rd to last week of February
- Reconciliations and working papers completed by CCAB staff – 1st to 2nd week of March
- Year-end audit – 3rd to last week of March
- Audit completed & Audit Report letters – 3rd week of April
- Management letter(s) – on or before May 30th
CCAB staff will be responsible for the year- end close and financial statement preparation. Staff will assist the external auditors by preparing a full set of working papers, schedules, a trial balance and supporting documentation on a timely basis.
- Terms and Conditions
4.1 Commencement of Services
Notice in writing to the successful Bidder of the approval of its Proposal and the appointment of auditors by the CCAB Board of Directors and the subsequent execution of an engagement letter and contract shall constitute the making of the Contract for Services.
Audited Financial Statement – Auditor RFP
4.2 Termination of Contract
CCAB may terminate this agreement at any time for:
1. Inadequate or non-performance; or
Breach of any term agreed to; or
If the Audit Firm is adjudged bankrupt or makes general assignment for the benefit of credits, or a receiver, or trustee in bankruptcy or similar officer is appointed to take charge of all or part of its property; and such conditions are not cured within thirty (30) days of notice thereof from CCAB to the Audit Firm; or
- Upon thirty (30) days’ notice.
With reference to remuneration:
- In no case will the total remuneration for the fiscal year exceed the all-inclusive maximum cost as agreed to in the engagement letter as amended by any approved changes; and
- Any changes to the purpose of the audit or inclusion of additional work shall be agreed to in writing by the auditor and CCAB as to remuneration before any such work is commenced.
The Audit Firm will indemnify and save harmless CCAB, it’s employees and agents from and against all claims, demands, losses, damages, costs and expenses made against or incurred, suffered or sustained by CCAB at any time or times (either before or after the expiration or sooner termination of the audit term) where the same or any of them are based upon or arise out of or from anything done or omitted to be done by the Audit Firm or by any servant, employee, officer, director or sub-contractor of the Audit Firm.
4.5 Work Performance
Performance of the work will be conducted both on and offsite – the successful Audit Firm needs to carry out work in CCAB offices as well as their office location and communications will be via email, telephone and in-person.
The Auditor shall maintain professional liability insurance with a limit of not less than $2,000,000 per occurrence, insuring the Audit Firm’s liability resulting from error and omission in the performance of the Services during the audit.
4.7 Experience and Qualifications
The Auditor must meet the following minimum requirements to be considered for evaluation pursuant to this RFP:
- The assigned staff must hold a valid accounting designation and have previous experience in performing a non-profit organization audit engagement.
- Completed an audit of similar size and scope within the last three years.
- Audited Financial Statement – Auditor RFP
- Demonstrate an understanding of legislation relevant to the non-profit environment.
- Have sufficient staffing, facilities, financial resources and expertise to address the scope of the audit services.
- Demonstrate a commitment to providing reasonable annual continuity of experienced and qualified personnel.
- Submission Deadline
All proposals are due by 5:00pm EST on Friday, October 13, 2017. Any proposal received after the required time and date specified for receipt shall be considered late and non-responsive. Any late proposal will not be evaluated for reward.
5.1 Expenses of Audit Firm
The Audit Firm has the sole responsibility for any costs associated with preparing its proposal in response to this RFP. In no event will CCAB be responsible for costs of preparation or submission of any proposal. Furthermore, the Audit Firm, by submitting a proposal, agrees that it will not claim damages for any reasons, relating to the Agreement or in respect of the competitive process. The Audit Firm, by submitting a proposal, waives any claim for loss of profits if no agreement is made with the Audit Firm.
| 1. RFP distribution to Audit Firm
|| Thursday, March 29, 2018
| 2. Proposal submission due
|| Thursday, April 12, 2018
| 3. Final Audit Firm selection
|| Thursday, May 31, 2018
| 4. Announcement of successful bidder(s)
|| Monday, June 4, 2018
| Pre audit meeting with staff
||Commences 2nd to 3rd week of
| Audit plan and schedule
||Commences 3rd to last week of
| Reconciliations and working papers completed by CCAB staff
||End of February to 1st week of
| Year-end audit
|| 2nd to 3rd week of March 2019
| Audit completed & Audit Report letters
|| 3rd of April 2019
| Management letter
|| Before May 15th , 2019
| Presentation at Annual General Meeting
|| TBD – first week of June
- Guidelines for Proposal Preparation
6.1 Required Bid Submission Documents
The submitted proposals are to include each of the following sections:
A. Appendix A – Submission Form;
B. Appendix B – Value Added Bid Enhancements;
C. Appendix C – CCAB Participation Points.
Audited Financial Statement – Auditor RFP
- Evaluation and Selection Process
7.1 Selection Criteria
CCAB is aware of the benefits that can arise from a good quality audit. Accordingly, attributes concerning quality of the firm and audit team, and proposed audit strategy, are emphasized below. The following criteria must be specifically addressed in the proposal submission.
Submissions must include resumes of the senior members of the proposed audit team and outline the capability of the Audit Firm and Audit Team. This shall include:
a. The location and overall size of the Audit Firm, the experience and capabilities of its partners, managers and staff in the audit of organizations similar to CCAB;
b. Information on contributions made by the Audit Firm in improving the financial administration of other First Nations enterprises;
c. The Audit Firm’s availability of resources to ensure deadlines are met in a timely manner;
d. Policies on notification to clients of changes in key personnel, and staff continuity on each audit; and
e. Other services that are available from the Audit Firm;
Proposed audit strategy:
General audit strategies and methodology employed, including but not limited to:
a. Business risks
b. Internal control
c. Computer use
Awareness of the perceived audit needs and understanding of the key issues facing CCAB, the implications of these issues for the conduct of the audit and particular audit strategies and methodology for CCAB including, but not limited to:
- Preliminary audit plan
- Substantive audit procedures to be performed
- Compliance audit procedures to be performed
- Report deliverables; and
- Time budget including total estimated hours for partners, managers and staff.
The resulting all-inclusive maximum cost for which the requested work will be performed. These amounts should be contained in the proposal submission and should clearly establish the basis for remuneration, separating professional fees from other expenses.
All bids submitted will be graded based on the following criteria:
- Cost (25)
- Work Plan (25)
- Work Samples (25)
- Experience in Similar Projects (15)
Audited Financial Statement – Auditor RFP
- References (5)
- Value Added Bid Enhancements (5) – Appendix B
- TOTAL: 100 points (converted to a percent)
- CCAB Participation Points (6) – Appendix C
The proposals will be evaluated by the Treasurer and Executive Committee and those with a vested interest and involvement in the selection.
All proposals will be subject to a comprehensive analysis and evaluation, based upon the best overall value to CCAB.
CCAB intends to retain the successful Audit Firm pursuant to a “Best Value” basis, not a “Low Bid” basis. In order for CCAB to properly evaluate the proposals received, all proposals submitted in response to this RFP must be formatted in accordance with the sequence noted above.
The successful Audit Firm will be required to sign a service agreement with the CCAB for services provided.
7.2 Proposal Submission
a. The proposal submission should address all factors identified as the evaluation criteria in the same order as above. Failure to address all factors will impair the proposal and CCAB will not be obliged to seek clarification or inclusion of vague or incomplete information in making its selection.
b. The Audit Firm should include two statements concerning independence as follows:
- Confirming that any non-audit services performed by the Audit Firm for CCAB will neither prejudice the independence implicit in an audit engagement nor be in conflict of interest under any governing code of professional ethics;
- Confirming that the Audit Firm is not economically dependent on the revenues derived from the audit.
c . The Audit Firm should disclose information where they believe there may be a conflict of interest (or state that there is no conflict of interest) including:
- Information on the Audit Firm’s partners, managers and members of their immediate family who are members of CCAB Board of Directors or in a senior management capacity with the CCAB
- Any other information that might influence the consideration of the Audit Firm’s proposal.
7.3 Proposal Administration
The following procedures will be followed:
1. The proposals received will be reviewed and CCAB reserves the right to seek clarification with respect to proposal content;
2. CCAB will conduct interviews of select Audit Firms responding to this Request for Proposal during the month of April/May 2018;
3. CCAB will confirm the appointment with the selected Audit Firm on or about June 4, 2018.
8. Contact Person
Please submit clearly marked proposals to:
Chief Operating Officer
Canadian Council for Aboriginal Business
2 Berkeley Street, Suite 310
Toronto, ON M5A 4J5
Phone: 416-961-8663 x228
Hard copy proposals may be submitted in person, or by mail. Soft copy proposals are to be submitted via e-mail, in PDF format to the e-mail address: firstname.lastname@example.org and cc: email@example.com.
Attention: David Abbott. Proposals will not be accepted after the deadline.
All materials submitted in response to the RFP become the property of CCAB and will not be returned. Proposals will be submitted at the sole expense of the sender. It is the applicant’s responsibility to secure proof that his/her proposal has been received by the CCAB within the prescribed time limit.
Any questions concerning requirements, contractual terms and conditions or proposal format must be directed to the contact person listed above.