Award of Contract – Financial Audit Services
Staff recommendation to appoint MNP LLP as external auditors for the Town for a five-year term.
TOWN OF VIEW ROYAL COUNCIL REPORT
TO: Council
DATE: August 27, 2019
FROM: Dawn Christenson, Director of Finance
MEETING DATE: September 3, 2019
Award of Contract – Financial Audit Services
RECOMMENDATION:
THAT Council appoint MNP LLP as external auditors for View Royal for fiscal years 2019 through 2023 (inclusive);
AND THAT staff be authorized to execute a contract with MNP LLP for the provision of financial audit services for a total of $112,875 (exclusive of taxes) for the five-year term of the agreement.
CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:
I concur with the recommendation.
PURPOSE OF REPORT:
To consider the results of a competitive process and award a contract for financial audit services to the proponent that represents the best value to View Royal.
BACKGROUND DISCUSSION:
View Royal’s external auditors, Grant Thornton LLP, took over the Town’s financial audit work from Hayes Stewart Little & Company (HSLC) in 2016 when they acquired that firm. HSLC was awarded the contract for a five-year term (2013-2017), which was extended for an additional year, pending the outcome of a competitive process. Audit fees during this period were:
| Year | Per contract | Actual |
|---|---|---|
| 2013 | $16,500 | 16,500 |
| 2014 | 16,830 | 16,830 |
| 2015 | 17,170 | 17,170 |
| 2016 | 17,510 | 17,510 |
| 2017 | 17,860 | 17,860 |
| 2018 | 24,675 | 24,675 |
A request for proposal was issued on July 8, 2019 that allowed four weeks for proponents to prepare their responses. Two proposals were received before the closing time at 4:00 pm on August 6, 2019. These proposals were evaluated by CAO Kim Anema, Director of Finance Dawn Christenson, and Manager of Accounting Steve Vella, based on the stated criteria. The criteria included qualifications and experience of both the firm and personnel assigned to the work, proposal quality and clarity, knowledge of View Royal, and lowest cost.
After careful consideration, the evaluators found that both proponents offered strong proposals, providing insufficient reason to distinguish either proposal based on the criteria, other than lowest cost. The total five-year cost represented by each proposal was:
| Proponent | Total 5-year cost | Average annual cost |
|---|---|---|
| MNP LLP | $112,875 | $22,575 |
| KPMG LLP | 114,500 | 22,900 |
| Difference | 1,625 | 325 |
All things considered, staff recommends that MNP LLP be awarded the contract for provision of financial audit services and be appointed as auditors for the Town of View Royal, in accordance with the Community Charter Section 169.
RECOMMENDATION:
THAT Council appoint MNP LLP as external auditors for View Royal for fiscal years 2019 through 2023 (inclusive);
AND THAT staff be authorized to execute a contract with MNP LLP for the provision of financial audit services for a total of $112,875 (exclusive of taxes) for the five-year term of the agreement.
SUBMITTED BY:
Steve Vella, Manager of Accounting
SUBMITTED BY:
Dawn Christenson, Director of Finance
REVIEWED BY:
K. Anema, Chief Administrative Officer
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