1 EXTERNAL AUDITING SERVICES SPECIFICATION This is trial version www.adultpdf.com BURWOOD COUNCIL – External Audit Tender 1 TABLE OF CONTENTS 1 PROJECT REQUIREMENT 2 1.1 I NTRODUCTION 2 1.2 C OUNCIL S TRUCTURE 2 1.3 A UDITOR 3 1.4 C OMPUTER S YSTEMS 3 1.5 F UNDS 3 1.6 I NTEGRATED P LANNING AND R EPORTING 3 1.7 E XPENDITURE 3 1.8 C OUNCIL ’ S I NSURANCES 3 1.9 I NTERNAL AUDIT 4 1.10 G OVERNMENT G RANTS 4 1.11 P ENSIONER R EBATE OF R ATES 4 1.12 S CHEDULE OF P RICES AND P AYMENT 4 1.13 D UTIES OF THE A UDITOR 4 1.14 O UTCOME OF A UDITING S ERVICES 5 2 TENDER FORMS 5 3 GENERAL CONDITIONS OF CONTRACT 5 This is trial version www.adultpdf.com BURWOOD COUNCIL – External Audit Tender 2 1 Project Requirement 1.1 Introduction Council is inviting tenders from suitably qualified persons or firms for the provision of financial audit services for a period of six years commencing 1 July 2011 and ending 30 June 2017. The Burwood Council Area (population 30,000 including 11,500 rate assessments in 2011/12) is an established historic residential and vibrant commercial part of Sydney’s Inner West, located approximately half way between Sydney CBD and Parramatta and only four kilometers from the Sydney Olympic Park. 1.2 Council Structure The senior officer of the council is the General Manager, Michael McMahon, who is responsible for the overall operations of the Council. As of September 2011 the Mayor is Councilor John Faker and the other six Councilors are: • Cr E. Wong (Deputy Mayor) • Cr S.Deans • Cr C. Donayre • Cr L. Furneaux-Cook • Cr H. Liang • Cr J. Sidoti In addition Council operates or participates on fourteen Committees; 1. Building & Development Committee 2. Burwood Access Committee 3. Burwood Anzac Commemorative Service Committee 4. Burwood Local Traffic Committee 5. Environment & Sustainability Committee 6. Burwood Community Safety Committee 7. General Manager’s Contract Review Panel 8. Internal Audit Committee 9. National Servicemen’s Association 10. Multicultural & Community Relations Committee 11. Sandakan Community Educational Committee 12. Southern Sydney Regional Organisation of Councils – Full Committee 13. Southern Sydney Regional Organisation of Councils – Sustainability Committee 14. Southern Sydney Regional Organisation of Councils – Program Delivery Council staff operates under the General Manager Mr. Michael McMahon in the following two divisions each of which has a Deputy General Manager as its head who is responsible to the General Manager - Corporate, Governance and Community V. Lee Land, Infrastructure and Environment B. Macdonnell Under the Deputy General Manager Corporate, Governance and Community, the following people perform the finance and accounting functions: Chief Finance Officer Vacant Finance Team Leader W. Armitage Revenue Team Leader T. Cowan This is trial version www.adultpdf.com BURWOOD COUNCIL – External Audit Tender 3 Management Accountant A. Hagonoy Assistant Accountant H. Lunnon Accounts Payable Officer C. Yu Assistant Accounts Payable Officer P. Mihailuk Revenue Officer L. Nicholls 1.3 Auditor Council’s Auditor for the contract period ending 30 June 2011 was: Pitcher Partners Accountants Auditors & Advisors Level 22 MLC Centre 19 Martin Place Sydney NSW 2000 1.4 Computer Systems Council operates a Technology One Package (Finance One and Human Resources/Payroll) with interfacing to Civica Software for Property, Rating and Receipting. In addition Trim is used for records management . The applications both Tech one and Civica currently in use are - General Ledger Plant Account Payable Accounts Receivable Rates Payroll Stores Animals On-line receipting Records Building Applications Development Applications Licensing In addition to the above, Council also operates a word processing system, leases and legal documents register. 1.5 Funds Council has only one fund - General Fund 1.6 Integrated Planning and Reporting In 2010, following extensive community consultation, Burwood Council adopted its Burwood2030 Community Strategic Plan, a 20 year blueprint of all residents’ and stakeholders’ aspirations for the area. Cascading from the long term community plan is the four year Delivery Program, listing the strategic actions identified as necessary to achieve the community’s priorities. The Delivery Program is then supported by an annual Operational Plan, which details Council’s budget and identifies the specific initiatives that are able to be funded each year. Council reports to the community on the progress of these plans on a quarterly basis, followed by an Annual Report at the end of each financial year. 1.7 Expenditure The estimated expenditure of the Consolidated Fund of Council for the year 2011/2012 is approximately - $36M. 1.8 Council’s Insurances Council’s workers compensation, liability and general classes of insurance are currently procured through Statewide Mutual as stand alone policies. Burwood Council’s insurances are administered by This is trial version www.adultpdf.com BURWOOD COUNCIL – External Audit Tender 4 Jardine Lloyd Thompson Pty Ltd. 1.9 Internal audit Council has engaged through SSROC a contracted Internal Auditor who currently undertakes the function on a two day per week basis. Council also has an Internal Audit Committee with membership as follows: Chair Person: Independent Member: Independent Councilors: Two Councilors Non Voting Officers: Deputy General Manager – Corporate, Governance and Community Executive Manager Chief Financial Officer The Internal Audit Committee meets four/five times a year. At one of these meetings the Auditor will be required to attend the Committee meeting at which time the annual financial reports will be presented and an opinion on the Financial Statements made. 1.10 Government Grants The successful auditor will be required to provide a separate report on:- • Pensioner Rebate Subsidy • Total Permissible General Income Roads to Recovery Grants, RTA Funded Grants, Community Service Programs and Environmental Subsidy audits will be considered as part of the Auditor's normal duties. From time to time Council may require Audits of other Government Grants. Council would negotiate, with the successful auditor a fee for these individual services. 1.11 Pensioner Rebate of Rates For the year 2011/12 it is estimated that Council’s eligible pensioner rate assessments will be 1803 totaling $438,000 in rebates. 1.12 Schedule of Prices and Payment You are required to outline your fee proposals in total dollars for your services in respect of this tender. The response should also include the fee structure and details of required progress payments for the work and the basis of any annual incremental fee increase for the duration of the tender. The quoted amount should allow for all costs and disbursements. All fee proposals shall remain good until the completion of the required work to the satisfaction of the Council and in accordance with this brief. Any fees for additional audit services should reflect a standard hourly rate and listed in the tender proposal. The scale of fees applicable to any additional audit service is to be agreed in writing by the client prior to the commencement of any project. 1.13 Duties of the Auditor The auditor shall provide the auditing services and carry out the auditing services with all reasonable skill and care. The auditor has discretion as to the manner in which the auditing services are to be performed but shall have regard to: This is trial version www.adultpdf.com BURWOOD COUNCIL – External Audit Tender 5 a) Auditing practice and standard statements issued jointly from time to time by the Institute of Chartered Accountants and the Australian Society of Certified Practicing Accountants b) The Local Government Act and Regulations c) The Code of Accounting Practice issued by the Division of Local Government d) The Asset Account Manual issued by the Division of Local Government e) Any other relevant legislative provisions. The auditor shall ensure that all relevant time deadlines are met to enable the audited financial statements to be available within the specified statutory time. 1.14 Outcome of Auditing Services The outcome of Auditing Services shall be: a) The provision of an audit opinion on the General Purpose Financial Statements. b) The provision of a report to the Council and the Minister on the audit as required by the Local Act (1993). c) The provision of appropriate additional reports on the items detailed in (a) above. d) The provision of a Management Letter, detailing any matters arising during the course of the audit and not otherwise reported. This letter should include any suggestions for improvement in efficiency of resources detected during the course of the audit. e) The meeting of all agreed deadlines, to ensure that reports are available within the statutory time required. f) The provision of advice via telephone, email or fax, to the General Manager, Deputy GM Corporate, Governance & Community and Chief Finance Officer when required. g) The Auditor will be required to present their reports to a full meeting of Council and to address Council on the audit outcomes and the financial position of Burwood Council and attend the Internal Audit Committee when required. 2 Tender Forms See Appendix 1 3 General Conditions of Contract See Appendix 2 This is trial version www.adultpdf.com 6 APPENDIX 1 TENDER FORMS The following tender forms must be completed as part of this request for tender. The omission of any of the forms or required information listed below may, at the absolute discretion of Council result in a non conforming Tender which could be subject to rejection. Part 1 Execution by Tenderer Part 2 Schedule of Prices Part 3 Statement of Conformance Part 4 Acknowledgement of Addenda & Notices Part 5 Company Profile Part 6 References Part 7 Tenderer’s Insurance Details Part 8 Tenderer’s Current Commitments Part 9 Specified Personnel Part 10 Proposed Sub-contractors & Suppliers Part 11 Audit Time And Visits To Council Part 12 Quality Management Systems This is trial version www.adultpdf.com BURWOOD COUNCIL – External Audit Tender 7 PART 1 EXECUTION BY TENDERER I/We have read, understood and fully informed myself/ourselves of the contents, requirements and obligations of the request for tender and accordingly submit this tender for the performance by myself/ourselves of External Auditing Services for Burwood Council. I/We hereby offer to supply the services described in the tender for the total price of $ ……………………… excluding GST at the prices offered as laid out in the Schedule of Prices (Part 2) and upon and subject to the key and standard conditions of tender and general conditions of contract set out in the request for tender. Name of Tenderer Subsidiary Company (if applicable) Address of Tenderer Postal Address Refer enquiries to: (name, telephone number and email address) Phone Number Fax Number Legal Entity ABN Signature and Date Official Position Held Signature of Witness Address of Witness This is trial version www.adultpdf.com BURWOOD COUNCIL – External Audit Tender 8 PART 2 SCHEDULE OF PRICES The tendered fee should include details of the fee proposed for the initial year. The fee is to be inclusive of all costs for the provision of Auditing Services as per Specifications. It is also to be fixed for the first year. Auditing Services $________________ ex GST The Tenderer should state the formula for changes to their cost over the course of the agreement Please also indicate your standard hourly rate for additional audit services: Senior Audit Partner: $______________ex GST Senior Audit Manager: $__________ ex GST All other personnel involved: $______________ex GST This is trial version www.adultpdf.com BURWOOD COUNCIL – External Audit Tender 9 PART 3 STATEMENT OF CONFORMANCE [Delete whichever is not applicable:] • The tender does conform with the request for tender; or • The tender does not conform with the request for tender. The areas in which the tender does not conform and the reasons for this non-conformance are as follows: This is trial version www.adultpdf.com [...]... ACKNOWLEDGEMENT OF ADDENDA & NOTICES I / We, [insert full name of Tenderer], acknowledge receipt of the following: [Tenderers must fully describe all documents including addenda, and any notices, which are issued by Council] This is trial version www.adultpdf.com BURWOOD COUNCIL – External Audit Tender 10 PART 5 COMPANY PROFILE Tenderers must provide the following information: • Details of the size of your... COMPANY PROFILE Tenderers must provide the following information: • Details of the size of your organisation • Details of your corporate structure • Brief history of your organisation • Experience in Local Government (if any) This is trial version www.adultpdf.com BURWOOD COUNCIL – External Audit Tender 11 . the Schedule of Prices (Part 2) and upon and subject to the key and standard conditions of tender and general conditions of contract set out in the request for tender. Name of Tenderer . Community and Chief Finance Officer when required. g) The Auditor will be required to present their reports to a full meeting of Council and to address Council on the audit outcomes and the financial. senior officer of the council is the General Manager, Michael McMahon, who is responsible for the overall operations of the Council. As of September 2011 the Mayor is Councilor John Faker and