DUFFERIN CHILD AND FAMILY SERVICES
REQUEST FOR PROPOSALS
EXTERNAL AUDIT SERVICES
CONTENTS
A. GENERAL INSTRUCTIONS
A.1
A.2
A.3
Invitation
Proposal Documents, Delivery and Deadline
Inquiries
B. BACKGROUND
B.1
B.2
Activities and Structure
Finance Team
C. SCOPE OF SERVICES
D. SUBMISSION REQUIREMENTS
D.1
D.2
D.3
General
Submission Framework & Proposal Content
Required Information for Consultant Proposal Submission
E. EVALUATION PROCESS
E.1
E.2
Proposal Evaluation
Negotiations
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DUFFERIN CHILD AND FAMILY SERVICES
REQUEST FOR PROPOSALS
EXTERNAL AUDIT SERVICES
A. GENERAL INSTRUCTIONS
A.1.
Invitation:
Dufferin Child and Family Services (DCAFS) is soliciting proposals from qualified firms,
including Dufferin Child and Family Services’ current auditor, for the provision of
External Audit Services.
The engagement is for the fiscal period ending March 31st, 2017 and for the subsequent
five years. However, the successful bidder will be appointed on an annual basis and
Dufferin Child and Family Services’ Audit Committee reserves the right not to reappoint.
It is the Society’s policy to review this type of engagement periodically.
A.2.
Proposal Documents, Delivery and Deadline:
Proponents are requested to submit their proposal in a sealed package marked
“Proposal – External Audit Services” to be received at 655 Riddell Road, Orangeville,
Ontario or by email to bonnie.stevenson@dcafs.on.ca before 16:00 hours, December
15, 2015.
The name and location of the Proponent must be clearly indicated on the face of the
sealed package or in the subject line of the email containing the proposal.
The total content of the Proposal, including any appendices and attachments, should be
outlined in a Table of Contents at the front of the Proposal.
Proposals sent by fax will not be accepted.
Proponents may not make modifications to their proposal after the closing date and
time.
Neither Dufferin Child and Family Services’ Audit Committee, nor the Board of Directors
shall be obligated in any way by any Proponent’s response to this Request for Proposal,
nor shall DCAFS be liable for any costs incurred by any Proponent in the preparation of
this Request for Proposal.
All information provided in the Proponent’s proposal will be considered confidential.
A.3.
Inquiries:
All inquiries regarding this Request for Proposal shall be directed by e-mail only to
bonnie.stevenson@dcafs.on.ca. Inquiries must be received by noon December 10,
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DUFFERIN CHILD AND FAMILY SERVICES
REQUEST FOR PROPOSALS
EXTERNAL AUDIT SERVICES
2015. Management’s answers to all inquiries shall be provided to all Proponents no
later than the end of day December 15, 2015.
B. BACKGROUND
B.1.
Activities & Structure
DCAFS is a registered Charity, providing multiple services and programs under the
three main umbrellas of Child Protection, Child and Youth Mental Health and
Developmental Support Services.
Dufferin Child and Family Services’principal funding is provided by the Province of
Ontario as determined by a Funding Model, which is revised from time to time by the
Province. Under the Ministry of Children and Youth Services (MCYS) and the Ministry
of Community and Social Services (MCSS), these Ministries contract with DCAFS as a
transfer payment agency for the delivery of legislated Child Welfare Services and Child
and Youth Mental Health and Developmental Support Services in the County of
Dufferin. DCAFS also operates Headwaters Visit Centre, a program funded by the
Ministry of the Attorney General. As a consequence of the contractual relationship
between DCAFS and the Ministry, the Ministry conducts regular reviews and audits of
the Society in order to determine funding requirements and to exercise due diligence on
behalf of the Government of Ontario.
The organization may also be subject to audits performed by the Auditor General of
Ontario on a schedule determined by the Auditor General.
DCAFS operates at arm’s length from the Ministry and is governed by an independent
volunteer Board of Directors. This structure allows DCAFS to be accountable to the
Ministry, and yet retain a degree of operational autonomy and flexibility.
Dufferin Child and Family Services’ Board of Directors is twelve (12) members strong,
and possesses the multi-disciplined representation necessary for effective governance.
The Board of Directors has established a Finance and Audit Committee of the Board.
The Board meets ten times annually with management. The Audit Committee meets
four times annually.
During its fiscal year ended March 31, 2015 DCAFS received $9,645,257 in transfer
payments from the Ministry transfer payments for the delivery of services. Additional
funding for the fiscal year ended March 31, 2015 was $730,689 “other” and $50,148
“donations”, for total revenue of $10,426,094
From time to time, DCAFS operates other programs or acts as banker for other
programs. This could include, for example, one time programs funded by the Ministry or
others or administering funds for a community project.
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DUFFERIN CHILD AND FAMILY SERVICES
REQUEST FOR PROPOSALS
EXTERNAL AUDIT SERVICES
Please find included with this Request for Proposal a copy of our Financial Statements
for DCAFS for the year ended March 31, 2015.
B.2.
Finance Team
The Finance team consists of two General Accountants and one Accounts Payable
Clerk reporting to the Director of Corporate Services, Bonnie Stevenson, CPA, CGA,
BCom(Hons) who in turn, reports to the Executive Director.
The Finance team’s staff complement and experience have resulted in the
implementation of effective internal controls that DCAFS reviews frequently with the
objective of achieving improvements.
Dufferin Child and Family Services’ financial software is Sage/Accpac. The payroll
system is Ceridian.
Dufferin Child and Family Services’year-end detailed working papers are prepared by
the Finance team in advance of the annual audit.
C. SCOPE OF SERVICES TO BE PROVIDED
Commencing with the fiscal year ending March 31st 2017 and for five (5) subsequent
years, the Auditor shall perform an examination of Dufferin Child and Family Services’
records and financial statements in accordance with Canadian Generally Accepted
Auditing Standards to express an opinion on Dufferin Child and Family Services’
financial statements.
Certain elements of the Financial Statements of particular interest to various users
include:

A schedule, prepared for Ministry reconciliation purposes, of Dufferin Child and
Family Services’ Program Revenues and Expenses indicating the ending surplus
or deficit as at Dufferin Child and Family Services’ March 31st year-end.
The Auditors will draft the financial statement for the Society, along with the preparation
of any required journal entries to ensure that the Society’s financial statements conform
to GAAP. The Society understands that the financial statements and journal entries are
the responsibility of management.
The Auditors shall meet with the Audit Committee in January prior to commencement of
audit work to review the audit approach and confirm their independence.
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REQUEST FOR PROPOSALS
EXTERNAL AUDIT SERVICES
The Auditors should be prepared to complete interim audit work in February prior to
year end, and to commence final audit work starting early to mid May. It is expected
that a draft of the statements and management letter will be ready for presentation to
the Audit Committee by late May.
The Auditors shall prepare and deliver to the Director of Corporate Services a draft
management letter and provide management with an opportunity to discuss the issues
before final content of the management letter is determined. This letter will include
recommendations that may result from findings during the course of the annual audit.
The Auditors shall meet with the Audit Committee as required, but at minimum in
January to discuss audit approach and confirm their independence, and in May to
discuss the audit finalization and draft financial statement. The Auditors shall also
attend the Annual General Meeting held in June.
D. SUBMISSION REQUIREMENTS
D.1
General
Proponents are requested to submit a written proposal that describes how the services
as outlined in Section C will be provided. In order to facilitate the evaluation of
proposals, Proponents are requested to organize their proposal as per the Submission
Framework below.
Proponents will be evaluated based on the following criteria:
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D.2
Capability and experience of the audit team
Proposed audit approach and scheduling
Audit price
Overall Quality
Submission Framework & Proposal Content & Assessment Criteria
Capability and Experience of the Audit Team
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35 points
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
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EXTERNAL AUDIT SERVICES
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Capacity of staff for the size of this engagement
Industry experience
Experience with similar not-for-profit organizations (please include references)
Please provide 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 area, e.g. commodity tax specialist,
human resources, International Financial Reporting Standards
Proposed Audit Approach and Scheduling 30 points
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Your audit approach i.e. use of computer audit specialists, organization of the
audit team
Availability and timely response to discuss complex accounting, tax and reporting
issues
Approach to resolution of accounting and disclosure issues
Approach to post-audit/management letters
Ability to meet our deadlines
Scope, timing and nature and percentage of work you plan to perform on an
interim basis
What, if any special services differentiate your firm from your competitors
Audit Price 30 points
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A firm quotation for fees charged in each of the years (excluding out of pocket
expenses and taxes)
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 your firm. Please provide your policy on billing for routine
telephone consultations and inquiries.
Please provide a detailed schedule of your 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 sales tax, goods and
services tax, employee remuneration and benefits, accounting changes, etc.
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DUFFERIN CHILD AND FAMILY SERVICES
REQUEST FOR PROPOSALS
EXTERNAL AUDIT SERVICES

A focus on reducing overall cost of external audit services to the Society while at
the same time maintaining /enhancing value.
Overall Quality of Submission 5 points
DCAFS reserves the right to meet with Proponents to discuss the Proposal.
D.3
Required Information for Consultant Proposal Submission
1.
2.
3.
4.
Contact information of Project Manager or Partner.
Signed Proposal.
Hourly and per diem rates and disbursement rates.
Provide at least three similar project references. Describe the nature of the project
including budget, schedule and scope and provide the agency name, a contact name
and phone number.
5. The Society may identify a short list of Proponents and arrange a follow-up interview or
negotiation.
E. EVALUATION PROCESS & CONTRACT NEGOTIATIONS
E.1
Evaluation Process
Dufferin Child and Family Services’ Audit Committee shall evaluate the Proposals. A
matrix will be used to compare the scores given to each Proponent by each member of
the Committee, and a consensus will then be reached through discussion internal to the
Committee. Final selection is subject to the Board’s approval. It is expected that
approval from the Board will occur no later than March 2016.
Unsuccessful Proponents will be notified in writing by June 30, 2016.
E.2.
Negotiations & Contract Negotiations
DCAFS reserves the right to:
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Not accept the lowest price or any proposal;
Terminate the request for proposal for any reason, with no liability to DCAFS or
recourse by the bidder, at any time prior to the execution of the written contract;
Conduct negotiations with more than one bidder
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