Request for Proposals (RFP) for Audit Services
The Mamawetan Churchill River Regional Health Authority (MCRRHA) is soliciting
proposals from qualified audit firms and/or individuals to audit the financial
statements of the Mamawetan Churchill River Health Region (MCRHR) for the fiscal
year ending March 31, 2013, with the option of auditing MCRHR's financial
statements for the three subsequent fiscal years.
Your proposal should contain, but not be limited to, the following considerations:
1.
2.
3.
4.
Eligibility - authorization by the Provincial Accounting Body (ies) to conduct audits.
Experience of your firm in relation to the scope of audits for the Region.
A list of similar organization or pertinent accounts served by your firm.
Your staff assignments and availability to complete the audit on a timely basis.
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Participation of senior audit personnel assigned to the engagement.
Frequency of contact with fiscal personnel.
Availability of staff to respond to questions within the scope of the engagement and the hourly
charge, if any, for services outside the scope of the audit.
5. Audit firm staff stability history - what assurances can you provide the Regional Health Authority
regarding the assignment of your permanent personnel to the engagement.
6. Describe capability to audit computerized accounts receivable systems and to audit during the
development of a completely computerized bookkeeping system.
7. Procedures used to transmit audit adjustments and the reasons for them along with management
recommendations to the responsible personnel within the Health Region structure.
8. Detailed audit plan.
9. Your fee proposal to conduct the basic audit function, along with your fee schedule for additional
services that may be required beyond the scope of the audit engagement. The proposal should also
state that any increase in the audit fee will be immediately disclosed to the Director of Finance. This
disclosure should include an estimation of the increased fees and the reason for the increase.
10. Estimated number of hours to complete the audit by classification of your employees, i.e. partners,
senior, junior.
11. Detail of expenses expected to be incurred, i.e. mileage, per diem, telephone, etc.
12. Audit firm to produce statements and to print annual report.
Enclosed is a copy of the audit proposal information to provide you with information about the Health
Region’s financial records. The audited financial report of the previous fiscal period can be accessed
through our website at www.mcrhealth.ca.
The final decision of the selection of the firm to conduct the audit will be made by the Board of
Directors. The final agreement will be in the form of a written contract following the standard
agreement form used by accounting firms conducting audits.
All questions and correspondence should be directed to Sulav N. Pant in writing at the above address or
via email at [email protected] or by calling 306-425-4834. Contact with Health Region personnel
other than Sulav N. Pant regarding this RFP may be grounds for elimination from the selection process.
We will look forward to receiving your proposals on or before 5:00 p.m., Friday, October 19, 2012.
Audit Proposal Information
Sealed audit proposals will be accepted by the Mamawetan Churchill River Regional Health Authority
(MCRRHA) until 5:00 p.m. on October 19, 2012. Please direct proposals to the attention of the Director
of Finance. All proposals become the property of MCRRHA.
All proposals will become part of the requester’s files without obligation.
Nature of Services Required
1.
Audit period will be April 1, 2012 to March 31, 2013. (One year and the option to renew for
additional three years.)
2.
Special reports, exhibits, and schedules required:
a.
Audit Report on the annual Financial Statements.
i.
ii.
iii.
iv.
b.
Audit Report on the Internal Control System.
i.
ii.
iii.
iv.
c.
Purpose of the audit report - To express an opinion of the fairness of presentation of the
financial statements.
Scope of the audit - Annual Financial Statements, which include the financial results of
all health agencies under the control of the health authority.
Auditing Standards - Recommendations of the Canadian Institute of Chartered
Accountants Handbook (CICA Handbook).
Audit criteria – Canadian Public Sector Accounting Standards beginning with the March
31, 2013 year end.
Purpose of the audit report - To express an opinion on whether the health authority’s
control systems are adequate to safeguard and control its assets.
Audit Scope - Internal control system as a whole.
Auditing Standards. CICA Handbook.
Audit criteria - The criteria for the examination of the system of internal control consists
of the control environment and control systems described in the Canadian Public Sector
Accounting Standards. The criteria do not include certain aspects of internal control
concerning the effectiveness, economy, and efficiency of certain management decision
making processes.
Audit Report on Compliance with Legislative and Related authorities.
i.
ii.
iii.
iv.
Purpose of the audit report - To express an opinion on the authority’s compliance with
legislative and related authorities. Such authorities include legislation, regulations,
orders-in-council, corporate bylaws and significant agreements such as service
agreements with Saskatchewan Health.
Audit Scope - legislative and related authorities should be examined as they relate to
the authority’s spending, revenue raising, borrowing and investing activities.
Auditing Standards - CICA Handbook, and CICA Public Sector auditing Statement-3,
Auditing for Compliance with Legislative and Related Authorities, May 1986.
Audit Criteria - Specific provisions of the legislative and related authorities.
3.
Conferences:
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4.
Exit conference with the Provincial Auditors.
Exit conference with Audit Committee Chair and Chief Executive Officer.
Exit conference with office personnel.
Description of Entity and Records to be audited:
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General ledger, fixed assets ledger, accounts receivable, general journal, accounts payable,
inventory.
5. Available Manuals and Information Sources:
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Minutes of the board meetings of the Regional Health Authority.
Accounting function work description of General Ledger Bookkeeper.
By-laws.
MCRHR will make available the financial report guidelines upon receipt from the Provincial
Auditors and/or the Health Ministry.
6.
Details of fixed assets are maintained. Fixed assets are based on cost when available otherwise on
estimates authorized by the Board of the Regional Health Authority. The fixed assets ledger was
constructed with historical information by the Director of Finance during an audit period.
7.
A budget is maintained and is available for examination.
8.
Staff members will be available to pull and reproduce documents. Legal counsel will be made
available with prior staff approval.
9.
Work areas will be provided by the Region in close proximity with the financial records on the
premises.
10. Report requirements and time frames:
 The report will be addressed to the Board of the Regional Health Authority and will contain
items listed in item #2.
 To meet the legislated reporting deadlines to the Minister of Health, the audit report and the
financial statement must be prepared by May 14th and the audit reports on internal controls and
legislative compliance must be prepared by June 15th.
 The Health Region is responsible for preparing the financial statements and all supporting
schedules. Our significant internal cutoff deadlines are as follows:
Item
Approximate G/L
Cutoff Date
Accounts Receivable
Accounts Payable
Inventory
Property, Plant and equipment
G/L Trial Balance
Draft Financial Statements including notes
April 15
April 15
March 31
April 25
April 20
April 30
Completion of
Supporting Schedules
April 30
April 30
April 30
April 30
April 30
 State the scope of the examination and that the audits was performed with Canadian Public
Sector Accounting Standards and include a statement of opinion as to whether the statements
conform to generally accepted accounting principles as set forth in the Canadian Institute of
Chartered Accountants Handbook (CICA Handbook).
 Reports of compliance examinations must include a statement that the audit was conducted in
accordance with applicable standards. The audit report must state where the examination
disclosed instances of significant non-compliance with laws and generally accepted accounting
principles. Findings of non-compliance and ineligible expenditures must be presented in enough
detail for management to be able to understand them.
 A management letter will be required. It should contain a statement of audit findings and
recommendations affecting financial systems and statements, internal control, legality of
actions, other instances of non-compliance with laws and generally accepted accounting
principles, and any other material matters.
11. Time Requirements
 Proposals will be delivered to the MCRHR office at 227 Backlund Street, La Ronge, SK not later
than 5:00 p.m. on October 19, 2012, or via email to [email protected].
 If presentations of possible finalists are necessary, no one with personal bias will interview
proposers.
 The Board of the Regional Health Authority has made no decision as to the date of the award of
the audit. All proposers will be notified of the Board action in a timely manner.
 Once a contract has been signed, work may begin immediately in accordance with the original
agreement.
 Preliminary work to close accounts can begin on the date as mutually agreed upon.
12. Report Review Timing and Number of Copies.
 Prior to the submission of the completed audit report, the audit firm will be required to deliver
and review the draft and the proposed management letter with the Authority Board.
 Copies required
a. Audit report, four (4) copies.
b. Management letter, four (4) copies.
c. Working papers, four (4) copies.
13. Proposal Requirement
All audit proposals must be submitted:
By:
5:00 p.m., October 19, 2012
To:
Sulav N. Pant,
Director of Finance
Mamawetan Churchill River Health Region
Box 6000
La Ronge, SK S0J 1L0
or
emailed to:
[email protected]
The following must be included in all proposals:
i.
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v.
An overview of staff levels and experience of the key personnel who will be involved in the
audit;
A background of your firm’s expertise regarding the health region’s type of business;
Time frames for completing the interim and year-end audit work;
An estimate of the cost of the audit indicating fixed and variable costs;
An estimate of audit conversion/start-up costs (if appropriate).
Audit proposals will be evaluated on the above factors.
14. Response content guidelines
In order to receive a uniform format of responses, the following guidelines for proposals are outlined:
i.
ii.
iii.
A letter of transmittal by an officer with authority to make the commitments contained in
the proposal.
An executive summary.
Proposal contents described above.
15. Terms and Conditions:
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vii.
viii.
Any information contained in the response, including inquiries will be regarded as
confidential and becomes the property of the Mamawetan Churchill River Regional Health
Authority (MCRRHA).
Information pertaining to the MCRRHA or MCRHR, obtained by the supplier as a result of
responding to the Request for Proposal, is confidential and must not be disclosed by the
supplier except as authorized by the MCRRHA.
MCRRHA reserves the right to reject any or all proposals.
MCRRHA has no responsibility for the cost of preparing proposals or making presentations.
Proposals submitted shall be final and may not be altered by subsequent offerings,
discussions, or commitments unless the supplier is requested to do so by the MCRRHA.
Proposals shall be firm for a period of 60 days following the closing date of the RFP.
There will not be a public opening.
MCRRHA may, at its discretion, make certain changes and exceptions to the terms and
conditions as outlined in this document.