(RFP) for External Audit Services - First Nations Health Council

Request for Proposals for External Audit ServicesTABLE OF CONTENTS1. Summary of the Requirement ............................................................................................. 32. Overview of the FNHA ........................................................................................................ 33. Specific Requirements ....................................................................................................... 43.1 Financial Statement Audit ................................................................................................ 43.2 Scope of Audit ............................................................................................................... 53.3 Reports and Timing ........................................................................................................ 53.4 Management Letter ........................................................................................................ 53.5 Other Reporting Requirements ......................................................................................... 54. Information about the FNHA ............................................................................................. 64.1 Description .................................................................................................................... 64.2 Financial Magnitude ........................................................................................................ 64.3 Accounting Principles ...................................................................................................... 74.4 Key Financial Systems .................................................................................................... 74.5 Responsibility and Work Performed by FNHA Staff .............................................................. 74.6 Finance and Audit Committee .......................................................................................... 74.7 Internal Audit ................................................................................................................ 75. Evaluation ......................................................................................................................... 85.1 Mandatory Criteria .......................................................................................................... 85.2 Desirable Criteria ........................................................................................................... 95.3 Interviews ................................................................................................................... 106. Proposal Format ...............................................................................................................10Appendix A - Definitions and Administrative Requirements.......................................................................11Appendix B - Receipt Confirmation Form ............................................................................................14Appendix C - Contract Form ...........................................................................................................15Appendix D - Team Mix and Hours ...................................................................................................16Appendix E - Statement of Independence ...........................................................................................172013RFP-02 FNHA – RFP – External Audit Services 2

Request for Proposals for External Audit Services1. Summary of the RequirementThe purpose of this RFP is to invite audit firms to submit proposals to provide for auditing of the First NationsHealth Authority (FNHA) financial statements.The successful Proponent will be invited to negotiate a contract for audit services with the FNHA. The term ofthe contract will be for a period of one (1) year, commencing with the 2013/2014 fiscal year, with four (4) oneyearoptions for renewal. The renewal is subject to the agreement of both parties.The terms and conditions applicable to this RFP are identified in Appendix A – Definitions and AdministrativeRequirements. Submission of a proposal in response to this RFP indicates acceptance of all terms andconditions that are included in Appendix A, and any addenda subsequently issued by the FNHA. Provisions inproposals that contradict any of the terms of this RFP will be as if not written and do not exist.2. Overview of the FNHAThe first and only provincial First Nations Health Authority in Canada. Transforming health services for FirstNations and Aboriginal people in BC.Why a First Nations Health Authority?Statistically significant health disparities exist for First Nations people in BC and across Canada with healthoutcomes that consistently lag behind those of other Canadians. The First Nations Health Authority aims toreform the way health care is delivered to BC First Nations to close these gaps and improve health andwellbeing.A New Relationship with our PartnersBC First Nations, the Province of BC, and the Government of Canada have all determined that First Nationshealth disparities are no longer acceptable. A New Relationship between these Tripartite Partners was forgedand a series of precedent-setting agreements led to the creation of a First Nations Health Authority. The FNHAis mandated by two health agreements (the Transformative Change Accord: First Nations Health Plan [2006],and the Tripartite First Nations Health Plan [2007] – collectively “the Health Plans”), the BC TripartiteFramework Agreement on First Nation Health Governance [2011] and resolutions at the annual GatheringWisdom events and the Framework Agreement.This new health authority is poised to take over the administration of federal health programs and servicescurrently delivered by Health Canada’s First Nations Inuit Health Branch – Pacific Region, and address servicegaps through new partnerships, closer collaboration, and health systems innovation.Making History Today and TomorrowAs the First Nations Health Authority prepares for the historic transfer of programs, resources, assets, staff, andresponsibilities, we are developing an organization that reflects First Nations culture and philosophy.Establishing a strong foundation prepares us to innovate, transform, and redesign health service delivery withguidance from BC First Nations in the coming years.Responsive, Visionary, TransformativeThe First Nations Health Authority is part of a unique health governance structure that includes politicalrepresentation and advocacy through the First Nations Health Council, and technical support and capacitydevelopment through the First Nations Health Directors Association. Collectively, this First Nations healthgoverning structure works in partnership with BC First Nations to achieve our shared vision.2013RFP-02 FNHA – RFP – External Audit Services 3

Request for Proposals for External Audit ServicesThe mandate of the FNHA is to:• Plan, design, manage, deliver and fund the delivery of First Nations Health Programs in BritishColumbia;• Receive federal, provincial and other health funding for or to support the planning, design,management and delivery of First Nations Health Programs and to carry out other health and wellnessrelated functions;• Collaborate with the BC Ministry of Health and BC Health Authorities to coordinate and integrate theirrespective health programs and services to achieve better health outcomes for First Nations in BritishColumbia;• Incorporate and promote First Nations knowledge, beliefs, values, practices, medicines and models ofhealth and healing into the First Nations Health Programs, recognizing that these may be reflecteddifferently in different regions of BC;• Be constituted with good governance, accountability, transparency and openness standards;• Establish standards for First Nations Health Programs that meet or exceed generally acceptedstandards;• Collect and maintain clinical information and patient records and develop protocols with the BC Ministryof Health and the BC Health Authorities for sharing of patient records and patient information,consistent with law;• Over time, modify and redesign health programs and services that replace Federal Health Programsthrough a collaborative and transparent process with BC First Nations to better meet health andwellness needs;• Design and implement mechanisms to engage BC First Nations with regard to community interests andhealth care needs;• Enhance collaboration among First Nations Health Providers and other health providers to addresseconomies of scale service delivery issues to improve efficiencies and access to health care;• Carry out research and policy development in the area of First Nations health and wellness;• The FNHA may undertake other functions, roles and responsibilities connected to health and wellness ofFirst Nations and other aboriginal people in BC.The FNHA is governed by a Board of Directors comprised of seven members who collectively combine years ofexperience in First Nations health, community development, financial management and political expertise at alllevels of government. The Board provides leadership and oversight for all corporate activities of the FNHAThe FNHA was created in conjunction with the First Nations Health Council, providing support services while thepolitical consensus was being built among BC First Nations. As a result, the FNHA website – http://www.fnhc.causes the FNHC name. For more information please visit the website or contact us at: info@fnhc.ca.3. Specific Requirements3.1 Financial Statement AuditThe successful proponent (“Auditor”) will conduct an attest audit of the FNHA’s financial statements, books andrecords and financial circumstances for the 2013/14 fiscal year and prepare an auditor’s report in respectthereof in accordance with generally accepted auditing standards.Subject to the approval of the FNHA, and the Auditor each year, the Auditor will perform Financial Statementattest audits of the FNHA for each of the four (4) fiscal years subsequent to 2013/14.The audit report should express an opinion as to whether the financial statements of the FNHA present fairly, inall material respects, the financial position, results of operations and changes in cash flows in accordance withthe applicable generally accepted accounting principles.2013RFP-02 FNHA – RFP – External Audit Services 4

3.2 Scope of AuditRequest for Proposals for External Audit ServicesThe FNHA is a not-for-profit Society that receives and disburses public funds. Generally, the public andlegislators have high expectations that organizations acting on behalf of the public will conduct business in aproper and prudent manner, disbursing public funds wisely and with probity. The Auditor should remain alertduring the engagement for:lack of accountability in the use and management of FNHA funds;instances of waste or misuse of FNHA resources;lack of probity in behaviour; orlack of compliance with financial and other relevant legislation and standards.Any such instances should be reported in the management letter.3.3 Reports and TimingThe Auditors will:a) Prepare an auditor’s report and management letters having a format and content consistent withgenerally accepted auditing standards;b) Discuss the auditor’s report and management letters with the FNHA’s management and Finance andAudit Committee prior to their distribution; andc) Meet any audit or reporting requirement dates as set out by the Description of Events table below.The expected key dates relating to the audit are as follows. These dates should be considered as indicativeonly:Description of EventsKey Audit DatesEntrance conference November 25, 2013FNHA fiscal year end March 31, 2014Completion of interim audit work March 07, 2014Completion of year-end field work May 9, 2014Finance and Audit Committee review of Financial Statements May 14, 2014Board Meeting to review Financial Statements May 23, 2014Members AGM – Approval of Financial Statements August 20143.4 Management LetterThe Auditor is expected to provide a management letter that identifies areas of concern or weaknessesencountered in the examination of the FNHA’s financial statements, recommendations for improvement, andmanagement’s response to any such concerns raised.The auditor’s report should include the management letter and management’s response.3.5 Other Reporting Requirements3.5.1 Subsequent Events AssuranceThe Auditor will also be required to perform subsequent event procedures to the date of the auditor’sreport. Subsequent events assurance procedures would likely include:a) Reviewing any publically-disclosed financial reports prepared by the FNHA subsequent to its year-enddate and agree and/or reconcile them to the accounting records where appropriate, ensuring that theaccounting principles used were consistent with those in the FNHA’s most recent audited financialstatements;2013RFP-02 FNHA – RFP – External Audit Services 5

Request for Proposals for External Audit Servicesb) Making enquiries as to any material transactions, including related party transactions, occurring duringthe period from the FNHA’s year-end date to the date of the auditor’s report and reporting details that(no such/the following) transactions occurred;c) Reviewing minutes of meetings of the FNHA Board of Directors and its committees for the period fromthe FNHA’s year-end date to the date of the auditor’s report;d) Making enquiries as to whether there have been any events during the period from the FNHA’s year-enddate to the date of the auditor’s report, which would have a material effect upon the financial positionor the results of operations of the FNHA; ande) Obtaining a letter of management representation from the FNHA and a letter regarding any outstandinglegal matters from the FNHA’s lawyers as of the date of the auditor’s report.4. Information about the FNHA4.1 DescriptionThe FNHA provides funding and services to First Nation’s communities through contribution agreements withFirst Nation’s organizations and contracts with federal and provincial agencies and independent serviceproviders/vendors. Information about the FNHA can be found on its website at www.fnhc.ca.4.2 Financial MagnitudePursuant to the Canada Funding Agreement, the Government of Canada provides block funding to the FNHA inorder to deliver its mandate. The agreement will provide funding for a (10) year period as identified below.Fiscal YearFunding Amount2013/14 $229 million2014/15 $399 million2015/16 $421 million2016/17 $444 million2017/18 $468 million2018/19 $468 million2019/20 $468 million2021/22 $468 million2022/23 $468 millionDuring Fiscal 2013/14, FNHA will assume responsibilities for First Nation’s health care planning and delivery ofservices that were formerly administered by Health Canada. Health programs, agreements, systems and staffwill be transferred from Health Canada to the FNHA in two phases during the 2013/14 fiscal year, together withthe increased levels of funding. For prior years, both funding and the FNHA’s activities have focussed onestablishing the existence and administration of the authority.2013RFP-02 FNHA – RFP – External Audit Services 6

Request for Proposals for External Audit ServicesThe 2012/13 audited financial statements for the FNHA can be found athttp://www.fnhc.ca/index.php/iFNHA/ifnha_annual_reports/ . In addition to the financial information containedin the financial statements, the following information will be of interest, and consists of estimated activity withrespect to fiscal years ending March 31 st 2013 and 2014.Function/ActivityEst. volume/$2013Est. volume /$2014*# of full/part time employees 100 373Payroll EFT’s/cheques 2,600 9,698Accounts Payable cheques issued (annual volume/$ value) 2,481 TBDAccounts Payable Electronic fund transfers (annual volume/$ value) 1,364 TBD# of vendors 1,900 TBD# of contracts /contribution agreements relating to funding or servicedelivery158 458*Note: certain metrics are difficult to attain as the processing is done by central federal government agencies.4.3 Accounting PrinciplesFor fiscal 2013/14, the FNHA will present its financial statements in accordance with the Canadian GenerallyAccepted Accounting Principles as set out in the Canadian Institute of Chartered Accountants (CICA) Handbookfor private sector organizations including the sections applicable to not-for-profit organizations.4.4 Key Financial SystemsThe FNHA currently uses Sage Accpac as its software solution for General Ledger and Accounts Payable. Thepayroll is processed through Automated Data Processing.The FNHA has recently entered into a contract to replace its current financial and human resources systemswith the PeopleSoft software application. This application will also bring the payroll function in-house. It isexpected that this application will be implemented during phased releases in fiscal 2013/14.4.5 Responsibility and Work Performed by FNHA StaffThe Chief Financial Officer is responsible for the preparation of the financial statements and co-ordination withthe Auditors.The FNHA staff prepare the financial statements, as well as the normal reconciliations and analyses identified bythe Auditor, as necessary for the completion of the external financial audit.4.6 Finance and Audit CommitteeThe FNHA’s Finance and Audit Committee is charged with the responsibility of reviewing the annual financialstatements of the FNHA prior to submission to the Board of Directors, and with receiving reports from theAuditor. The Committee meets approximately 12 times annually. The Auditor will be required to meet with theFinance and Audit Committee.4.7 Internal AuditThe FNHA is in the process of establishing an internal audit function.2013RFP-02 FNHA – RFP – External Audit Services 7

Request for Proposals for External Audit Services5. EvaluationAn evaluation committee will be formed by the FNHA and may include Board members, employees andcontractors of the FNHA. All personnel will be bound by the same standards of confidentiality.The mandatory and desirable criteria against which proposals will be evaluated are identified below.Proponents should ensure that they fully respond to all criteria in order to be comprehensively evaluated.The FNHA may request and receive clarification from any Proponent when evaluating a proposal. The evaluationcommittee may invite some or all of the Proponents to appear before the committee in order to clarify theirproposals. In such event, the evaluation committee may consider such clarifications in evaluating proposals.5.1 Mandatory CriteriaProponent responses must clearly demonstrate that they meet the following mandatory criteria or they will beexcluded from further consideration during the evaluation process:a) The Proponents proposal must be received at the closing location before the specified closing time;b) The Proponents proposal must be in English and MUST NOT be sent by mail, facsimile or email;c) Proponents must submit four (4) hard copies and one (1) electronic copy (saved on a CD in a Microsoftcompatible format) of their proposal to the following address:First Nations Health Authority, Attention: Contracts501-100 Park Royal South, West Vancouver, BC, V7T 1A2d) Proponents must submit one (1) Request for Proposals cover page, with the Proponent Section in itsoriginal form, unaltered, fully completed and signed;e) Proponents must meet the qualifications under Part 5 of the Society Act of British Columbia in respect ofthe audit of a reporting society and be authorized to provide financial statement audit services in BritishColumbia;f) Proponents must have at least five (5) years’ experience in carrying out financial statement audits ofpublic and private sector organizations consisting of over 300 employees, and with revenues exceeding$50,000,000;g) Members of the Proponents audit staff must not be or have been a member, director, officer oremployee of the FNHA, the Interim Financial Health Authority (iFNHA), the First Nations Health Society(FNHS), or the First Nations Health Council (FNHC), or any other corporation, organization or groupaffiliated with or related to these organizations in the previous two (2) years, and is not under contractto, or in negotiations to take on such a position, other than acting as auditor to any of theseorganizations;h) Proponents have not provided any significant non-audit accounting services (including but not limited tobusiness or strategic consulting services, information systems design; or appraisal or valuation service)to the FNHA, the iFNHA, the FNHS or the FNHC in the previous two (2) years and is not under contractto, or in negotiations to do so; and,i) Proponents must be able to comply with applicable codes of professional ethics concerning auditorindependence.2013RFP-02 FNHA – RFP – External Audit Services 8

Request for Proposals for External Audit Services5.2 Desirable CriteriaProposals meeting all of the mandatory criteria will be further evaluated against the desirable criteria identifiedbelow, using the score weightings indicated. Proposals that do not meet or exceed the minimum score for eachSummary Criterion will be excluded from further consideration.Desirable CriteriaSummary Criterion Maximum Score Minimum Scorea) Capability of Audit Firm and Audit Team 45 27b) The Audit Firm’s Proposed Audit Strategy 35 21c) The Audit Firm’s Price 20 12TOTAL 100 60In order to receive full consideration during evaluation, proposals should include a detailed response to thefollowing:1) Capability of Audit Firm and Audit Team Weightinga) The location and overall size of the firm, the experience and current capabilities of itspartners, managers and staff in the audit of organizations similar to the FNHA, as well as 10that of additional staff who may be required by the firm to carry out this audit.b) How the firm invests in the development of staff and methods for undertaking audits oforganizations that receive and disburse public funds on behalf of federal and provincial 2government organizations.c) The proposed audit team’s degree of familiarity and knowledge with the funding anddelivery of health services to First Nations communities in British Columbia.4d) The proposed audit team’s experience in the audit of organizations similar to the FNHA,and comprehensive details of those skills and experiences which are directly relevant to 15the audit of the FNHA.e) The firm’s experience in performing value-for-money audits in the public health sector. 2f) The firm’s availability of resources to ensure that deadlines are met in a timely manner. 5g) Quality control/peer review programs within the firm. 3h) The firm’s experience related to computerized audits, as well as the availability of otherspecialized services that may be necessary in the audit.3i) Policies on notification to clients of changes in key personnel and staff continuity onaudits.1Total Weighting 452) The Audit Firm’s Proposed Audit Strategy Weightinga) General audit strategies and methodology to be employed, considering, but not limited8to: (i) business risks, (ii) internal controls, and (iii) systems used.b) The perceived audit needs of the FNHA and understanding of the key issues it faces, andthe implications of those issues for the conduct of the audit. In addition, the particularaudit strategies and methodology for the FNHA including, but not limited to: (i) 15preliminary audit plan, (ii) substantive audit procedures to be undertaken, (iii)compliance audit procedures to be undertaken, and (iv) report deliverables.c) An appropriate time budget, including estimated total hours for partners and other staff,12(use Appendix D)Total Weighting 352013RFP-02 FNHA – RFP – External Audit Services 9

Request for Proposals for External Audit Services3) The Audit Firm’s Price Weightinga) The all-inclusive maximum prices for which the proposed audit work will be performedfor the first fiscal year (2013/14) and, should the contract be renewed, for each of thesubsequent four (4) years. These prices must be identified in the proposal and shouldclearly establish the basis for remuneration identifying both hours of work and hourlyrates for appropriate categories of audit staff and, appropriately detailed out-of-pocketcosts.Prices for fiscal years 2 through 5 are to be quoted exclusive of the impact of inflation onwage-related costs. Prices quoted for subsequent years will be adjusted using theStatistics Canada indicator for Canada-wide Average Weekly Earnings (excluding farmworkers) taking December 2012 as a base. For greater clarity, the proposed price forfiscal 2014/15 that is relevant to audit staff remuneration will be adjusted based on thepercentage change in the indicator from December 2012 to December 2013.5.3 Interviews20Total Weighting 20After evaluating the mandatory and desirable criteria, the FNHA will conduct interviews with short-listedProponents. The short-list will comprise the three highest-ranked Proponents based on the weightings for thedesirable criteria. If the FNHA conducts interviews, the process will be as follows:6. Proposal Formata) Short-listed Proponents will be requested to meet with the evaluation committee. Short-listedProponents selected for such meetings will be advised by the end of business day Monday June 10,2013;b) The evaluation criteria for the interview (“interview criteria”) will be forwarded to the short-listedProponents selected for interview when the notice of the interview is provided;c) Interview criteria will be evaluated and weighted as additional desirable criteria worth up to twenty-five(25) additional points, such that the interviewed Proponent’s total evaluation score will be the sum ofpoints achieved in the desirable and interview criteria; andd) For those Proponents which have not been contacted for an interview; this will serve as notice that theirproposal submission was unsuccessful.The following format, sequence, and instructions should be followed in order to provide consistency inProponent response and to ensure that each proposal receives full consideration. All pages should beconsecutively numbered.a) One (1) unaltered and completed Request for Proposals cover page, including Proponent Sectioncompleted in original form as per instructions;b) Table of contents including page numbers;c) A short (one or two page) summary of the key features of the proposal;d) The body of the proposal, including pricing, i.e. the “Proponent Response”;e) Team Mix and Hours in a format substantially similar to Appendix D;f) A statement confirming that the Proponent and/or the lead and review partners is/are authorized toprovide financial statement audit services in British Columbia; andg) A statement concerning independence, as required by Appendix E, identifying any potential conflictsand proposed safeguards in accordance with any applicable code of professional ethics.2013RFP-02 FNHA – RFP – External Audit Services 10

Request for Proposals for External Audit ServicesAppendix A - Definitions and Administrative Requirements1. DefinitionsThroughout this Request for Proposals, the following definitions apply:a) “Contract” means the written agreement resulting from this Request for Proposals executed by the FNHA and the Contractor;b) “Contractor” means the successful proponent to this Request for Proposals who enters into a written Contract with the FNHA;c) “the FNHA” means the First Nations Health Authority;d) “must” or “mandatory” means a requirement that must be met in order for a proposal to receive consideration;e) “Proponent” means an individual or a company that submits, or intends to submit, a proposal in response to this Request for Proposals;f) “Request for Proposals” or “RFP” means the process described in this document; andg) “should” or “desirable” means a requirement having a significant degree of importance to the objectives of the Request for Proposals.2. Terms and ConditionsThe following terms and conditions will apply to this RFP. Submission of a proposal in response to this RFP indicates acceptance of all terms thatfollow and that are included in any addenda issued by the FNHA. Provisions in proposals that contradict any of the terms of this RFP will be as if notwritten and do not exist.3. Additional Information Regarding the RFPProponents are advised to fill out and return the attached Receipt Confirmation Form. All subsequent information regarding this RFP includingchanges made to this document will be posted on the following websites: BC Bid at www.bcbid.gov.bc.ca; MERX at www.merx.com; and FNHA atwww.fnhc.ca. It is the sole responsibility of the Proponent to check for amendments on these websites.4. Late ProposalsProposals will be marked with their receipt time at the closing location. Only complete proposals received and marked before closing time will beconsidered to have been received on time. Late proposals will not be accepted and will be returned to the Proponent. In the event of a dispute, theproposal receipt time as recorded at the closing location shall prevail.5. EligibilityProposals may not be evaluated if the current or past activities or interests of the Proponent, or any sub-contractors proposed by the Proponent,may, in the FNHA’s opinion, give rise to an unresolved conflict of interest in connection with the project described in this RFP. This includes but isnot limited to, involvement by a Proponent or any proposed sub-contractors in the preparation of this RFP. If a Proponent is in doubt as to whetherthere might be a conflict of interest, the Proponent should consult with the FNHA Contact Person identified in this RFP.Proposals from not-for-profit agencies will be evaluated against the same criteria as those received from any other Proponents.6. EvaluationEvaluation of proposals will be by a committee formed by the FNHA and may include employees and contractors of the FNHA. All personnel will bebound by the same standards of confidentiality. The FNHA’s intent is to enter into a Contract with the Proponent who has the highest overall rankingbased upon such an evaluation.7. Negotiation DelayIf a written Contract cannot be negotiated within thirty days of notification of the successful Proponent, the FNHA may at its sole discretion at anytime thereafter, terminate negotiations with that Proponent and either negotiate a Contract with the next qualified Proponent or choose to terminatethe RFP process and not enter into a Contract with any of the Proponents.8. DebriefingAt the conclusion of the RFP process, all Proponents will be notified. Unsuccessful Proponents may request a debriefing meeting with the FNHA.9. Alternative SolutionsIf alternative solutions are offered, please submit the information in the same format, as a separate proposal.10. Changes to ProposalsBy submission of a clear and detailed written notice, the Proponent may amend or withdraw its proposal prior to the closing date and time. Uponclosing time, all proposals become irrevocable. The Proponent will not change the wording of its proposal after closing and no words or commentswill be added to the proposal unless requested by the FNHA for purposes of clarification.11. Proponents’ ExpensesProponents are solely responsible for their own expenses in preparing a proposal and for subsequent negotiations with the FNHA, if any. If the FNHAelects to reject all proposals, the FNHA will not be liable to any Proponent for any claims, whether for costs or damages incurred by the Proponent inpreparing its proposal, loss of anticipated profit in connection with any final Contract, or any other matter whatsoever.12. Limitation of DamagesFurther to the preceding paragraph, by submitting a proposal, the Proponent agrees that it will not claim damages for whatever reason relating tothe Contract or in respect of the competitive process, in excess of an amount equivalent to the reasonable costs incurred by the Proponent inpreparing its proposal. Furthermore, by submitting a proposal the Proponent waives any claim for loss of profits if no Contract is made with theProponent.2013RFP-02 FNHA – RFP – External Audit Services 11

Request for Proposals for External Audit Services13. Proposal ValidityProposals will be open for acceptance for at least 120 days after the closing date.14. Firm PricingPrices will be firm for the entire Contract period unless this RFP specifically states otherwise.15. Currency and TaxesPrices quoted are to be in Canadian dollars, inclusive of duties where applicable; FOB destination with delivery charges included where applicable,and exclusive of the Goods and Services Tax (GST).16. Completeness of ProposalBy submitting a proposal, the Proponent warrants that if this RFP is to design, create or provide a system or manage a program, all componentsrequired to run the system or manage the program have been identified in the proposal or will be provided by the Contractor at no charge.17. Sub-ContractingThe use of a sub-contractor must be clearly defined in the proposal. This includes a joint submission by two Proponents having no formal corporatelinks. In such a case, one of the Proponents must be prepared to take overall responsibility for successful performance of the Contract and this mustbe clearly defined in the proposal.Where applicable, the names of approved sub-contractors listed in the proposal will be included in the Contract. No additional sub-contractors will beadded nor other changes made, to this list in the Contract without the written consent of the FNHA.18. Acceptance of ProposalsThis RFP should not be construed as an agreement to purchase goods or services. The FNHA is not bound to enter into a Contract with theProponent who submits the lowest priced proposal, or with any Proponent. Proposals will be assessed in light of the evaluation criteria. The FNHAwill be under no obligation to receive further information, whether written or oral, from any Proponent.Neither acceptance of a proposal nor execution of a Contract will constitute approval by the FNHA of any activity contemplated in any proposal thatrequires any approval, permit, or license pursuant to any federal, provincial, regional district or municipal statute, regulation or by-law.19. Definition of ContractNotice in writing to a Proponent that it has been identified as the successful Proponent and the subsequent full execution of a written Contract willconstitute a Contract for the goods or services. No Proponent will acquire any legal or equitable rights or privileges relative to the goods or servicesuntil the occurrence of both such events.20. ContractBy submission of a proposal, the Proponent agrees that should its proposal be successful, the Proponent will enter into a Contract with the FNHA onthe terms set out in Appendix C.21. Contract Negotiation and AwardFollowing the evaluation and recommendation of the Evaluation Committee, the First Nations Health Authority may select one or more Proponents toenter into negotiations for a Contract or Contracts as follows:(a) The First Nations Health Authority may elect to divide the Services into more than one Contract, and enter into negotiations with a Proponentwith respect to a portion of the Services, and award more than one Contract with respect to the Services;(b) If negotiations with any Proponent are not successful within such time period as the First Nations Health Authority may require, the FirstNations Health Authority may at any time after the expiry of such time period discontinue further negotiation with that Proponent by writtennotice to the Proponent, and the First Nations Health Authority may at any time thereafter commence negotiations with another Proponent tofinalize a Contract in accordance with the foregoing process with another Proponent. The foregoing process may be undertaken and/orrepeated until either a Contract or Contracts are awarded by the First Nations Health Authority or until negotiations have been terminated bythe First Nations Health Authority; and(c) FNHA reserves the right to negotiate additional services of a similar functional or technological nature from the successful Proponent withoutfurther competitive procurements.22. Liability for ErrorsWhile the FNHA has used considerable efforts to ensure information in this RFP is accurate, the information contained in this RFP is supplied solely asa guideline for Proponents. The information is not guaranteed or warranted to be accurate by the FNHA, nor is it necessarily comprehensive orexhaustive. Nothing in this RFP is intended to relieve Proponents from forming their own opinions and conclusions with respect to the mattersaddressed in this RFP.23. Modification of TermsThe FNHA reserves the right to modify the terms of this RFP at any time in its sole discretion. This includes the right to cancel this RFP at any timeprior to entering into a Contract with the successful Proponent.24. Ownership of ProposalsProposals submitted to the FNHA become the property of the FNHA. They will be received and held in confidence by the FNHA.25. Use of RFPAny portion of this document or any information supplied by the FNHA in relation to this RFP may not be used or disclosed for any purpose otherthan for the submission of proposals. Without limiting the generality of the foregoing, by submitting a proposal, the Proponent agrees to hold inconfidence all information supplied by the FNHA in relation to this RFP.2013RFP-02 FNHA – RFP – External Audit Services 12

Request for Proposals for External Audit Services26. No LobbyingProponents must not attempt to communicate directly or indirectly with any employee, contractor or representative of the FNHA, including theevaluation committee and any officials of the FNHA, or with members of the public or the media, about the project described in this RFP or otherwisein respect of the RFP, other than as expressly directed or permitted by the FNHA.27. Collection and Use of Personal InformationProponents are solely responsible for familiarizing themselves, and ensuring that they comply, with the laws applicable to the collection anddissemination of information, including resumes and other personal information concerning employees and employees of any sub-contractors. If thisRFP requires Proponents to provide the FNHA with personal information of employees who have been included as resources in response to this RFP,Proponents will ensure that they have obtained written consent from each of those employees before forwarding such personal information to theFNHA.2013RFP-02 FNHA – RFP – External Audit Services 13

Request for ProposalsAppendix B - Receipt Confirmation FormRFP for External Audit Services for the First Nations Health AuthorityRequest for Proposals # 2013RFP-02This form MUST be completed in order to participate in the Proponent’s Meeting. If you do not wish to participate inthis meeting, you may fill out this form in order to advise the FNHA that you intend to submit a proposal for this RFP.RECEIPT CONFIRMATION DEADLINE: No later than 16.00 hours (4:00 pm) Pacific Time on May 10, 2013 by fax to: (604)913-2081QUESTIONS FOR MEETING DEADLINE: No later than 16.00 hours (4:00 pm) Pacific Time on May 14, 2013 tofnhacontracts@fnhc.caTO PARTICIPATE IN MEETING:Complete and return this Receipt Confirmation Form by fax to 604-913-2081, no laterthan 16.00 hours (4:00 pm) Pacific Time on May 10, 2013CALL-IN INFORMATION FOR MEETING: Proponents who have indicated their intention to participate in the Proponent’sMeeting on May 14, 2013 will be provided with the dial-in information, and agenda,via email, from fnhcontracts@fnhc.caOTHER INFORMATION:Attendance at this meeting is optional. Time permitting, and at the discretion of theFNHA, additional questions may be accepted during the meeting. Minutes from theProponent’s Meeting will be posted on the following websites: BC Bid atwww.bcbid.gov.bc.ca; MERX at www.merx.com; and FNHA at www.fnhc.ca within 3business days of the Proponent’s Meeting.PLEASE PROVIDE THE FOLLOWING INFORMATION ABOUT YOUR FIRM AND FAX TO (604) 913-2081:Company:Street Address:____________________________________________________________________________________________________________________________City: __________________________ Postal/ZIP Code: _______________Province/State: __________________________ Country: ______________________Mailing Address, if different: ___________________________________________________________Phone Number: (___)___________________ Fax Number: (___)______________Contact Person:Title:Email Address:_____________________________________________________________________________________________________________________________________________________________________________________________Proponents’ Meeting Response:We intend to attend the proponents’ meeting and the names of the planned attendees are:____________________________________________________________________________________________________________________________We will not be attending the proponents’ meeting.2013RFP-02 FNHA – RFP – External Audit Services 14

Request for ProposalsAppendix C - Contract FormBy submission of a proposal, the Proponent agrees that should its proposal be successful, the Proponent will negotiate aContract with the FNHA substantially in accordance with the terms and conditions of the FNHA’s standard contract form.A copy of the contract template can be found on BC Bid, MERX, and the FNHC website.The Proponent should identify any requested variations to the terms and conditions of the standard FNHA contract aspart of its proposal response. At its sole discretion, the FNHA may elect to decline any request to vary the terms andconditions of the FNHA contract.2013RFP-02 FNHA – RFP – External Audit Services 15

Request for ProposalsAppendix D - Team Mix and Hours(Separate analyses should be completed for each of years 1 to 4)Year___________HOURSAuditPlanningAuditFieldworkReview andReportingTotalAudit PartnerReview PartnerSector SpecialistsAudit ManagerOther StaffStaff not yetqualifiedOther Expert orSpecialist Assistant(Detailed bycategory e.g., EDP)Totals[The hours to be worked by each member of the team should be clearly identified]2013RFP-02 FNHA – RFP – External Audit Services 16

Request for ProposalsAppendix E - Statement of IndependenceThe Proponent must provide a written statement concerning the Proponent’s independence considering anddocumenting whether any non-audit services performed by the firm for the FNHA or any related organizationwill prejudice the independence implicit in an audit engagement or be in conflict with any applicable code ofprofessional ethics concerning auditor independence; and either:Confirming that the audit firm is not economically dependent on the revenues derived from this audit;orConsidering and documenting the effect on independence when the combined revenues from this auditand the audit of other related organizations or Federal or Provincial government agencies exceed fifteenpercent (15%) of the gross fees of the audit firm.The Proponent must disclose information where they think there may be a conflict of interest (or state thatthere is no conflict of interest), including:Information on the audit firm’s partners, managers and members of their immediate family who are onthe Board of the FNHA or in a current or past senior management position with the FNHA or whoreceive services from the FNHA. (“Immediate family” is defined as an individual’s spouse and thosedependent on the individual or the individual’s spouse, whether related or not).Clients of the audit firm who engage in significant activity with the FNHA.Clients or agents of the audit firm who are members of the Board or hold senior management positionswith the FNHA.Any other information that should be provided to the FNHA’s Finance and Audit Committee that mayinfluence the consideration of the audit firm’s proposal.Where there are potential threats to the audit firm’s independence, the Proponent should outline proposedsafeguards and mitigating strategies.2013RFP-02 FNHA – RFP – External Audit Services 17