RFP – To interested Audit Firms
Karma Co-operative is a member-owned, democratically run co-operative food store specializing in organic, local, non-GMO and fair trade products. It is incorporated in Ontario under the Co-operative Corporations Act and is a non-profit under CRA rules. We are seeking a new outside auditor and are presently inviting submissions from several local firms with experience conducting co-operative and/or non-profit audits. Last year’s financial statements can be found here (pdf).
The store does about $1.5 million of business a year. We maintain accounts for membership separately from those for store operations, requiring two budgets and income statements, and one balance sheet. There are different member fee categories, and the store also sells to non-members who pay a different price than members. The member budget includes revenues from fees and supports the democratic functioning side of the organization.
The co-operative’s books are kept at the store, and we have a professional part-time bookkeeper using QuickBooks Pro. The co-op’s year-end is May 31, with the Annual General Meeting held in October.
Our expectations of this engagement include the examination of our financial statements and provision of an audit opinion, with a management letter as required. As well, we would expect you to prepare the Co-op’s CRA non-profit filing return. Attendance at our Annual General Meeting is required. As well, meetings with our staff and Finance Committee to review findings are required.
Please provide a profile of your firm, its experience with small retail operations, voluntary associations, and similar audits, as well as the staff proposed for the engagement. We would like to see an outline of your audit approach and the proposed estimated hours, rates, and overall fees for the next three years. A list of at least three current clients for reference purposes is required.
Our selection of an auditor will be based on applicants’ experience with similar organizations, cost estimate, and reputation. Please submit your proposal to our Auditor Search Committee to email@example.com by 6:00 pm March 15, 2017. Any questions should be directed to that same e-mail address. We plan to interview a shortlist of interested firms and make a recommendation to the Board of Directors in April.