CIPO Year-End Financial Audit FY 2018-2019

NOTICE OF PROPOSED PROCUREMENT (NPP) For Professional Audit Support Services Supply Arrangement (PASS-SA) GSIN: R010A External Audit Service Reference Number: N/A Solicitation Number: CIPO190192 Organization Name: Innovation, Science and Economic Development Canada – Canadian Intellectual Property Office Solicitation Date: 2018-11-08 Closing Date: 2018-11-22 2:00 p.m. Eastern Standard Time (EST) Anticipated Start Date: December 2018 Estimated Delivery Date: N/A Estimate Level of Effort:  Determinate by the bidder Contract Duration: The initial contract period will be from date of contract award and ends one (1) year after with for (4) irrevocable options to extend it for one (1) year. Solicitation Method: Competitive/Selective Applicable Trade Agreements: CFTA, NAFTA, AIT, Canada-Chile, Canada-Colombia, Canada-Panama, Canada-Honduras Canada-Korea Comprehensive Land Claim Agreement Applies: No Number of Contracts: 1 Requirement Details Tendering Procedure: Selective Tendering This requirement is open only to those Professional Audit Support Services Supply Arrangement holders who qualified under Stream 5 for services in the National Capital Region for the following category: Stream 5 – External Audit Services The following SA Holders have been invited to submit a proposal:

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TITLE Canadian Intellectual Property Office (CIPO) Year-end Financial Statements Audit 2.0 OBJECTIVE Examine CIPO’s financial statements and to express an opinion as to whether they fairly represent CIPO’s financial position at year-end BACKGROUND

As a special operating agency within Industry Canada, with a revolving fund authority, CIPO finances its operations entirely from revenues generated by fees received from the provision of IP services. The financial statements of CIPO’s revolving fund (the “Fund”) are prepared in accordance with the reporting requirements for revolving funds as described by the Receiver General of Canada. The Receiver General highly recommends hiring external auditors to examine CIPO’s financial statements and to express an opinion as to whether they fairly represent CIPO’s financial position at year-end.

DESCRIPTION OF RESOURCE CATEGORIES Note: Bidders must propose the appropriate resource category levels and the level of effort estimated to complete the project. 4.1 Partner/Managing Director May be an owner of the firm. The resource exercises project sign-off authority on behalf of the Contractor, and oversees and assures the quality of work of Project Managers/Leaders responsible for individual projects. Negotiates the final agreement for the Work on behalf of the firm. Supervises the creation, development and implementation of significantly new or modified audit approaches to solve problems and obtains approval from the Project Authority for their application. Reports progress of the project on an as needed basis and at key milestones in the life cycle. Meets with senior level auditees, as required, to outline audit objectives and approaches, to gather key perspectives, and to present audit observations and recommendations. 4.2 Project Manager/Leader Manages the project team during the planning, implementation and reporting phases of the audit Work. Ensures that resources are made available and that the project is developed and is fully implemented within agreed time, cost and performance parameters of the Contract. Determines budgetary requirements, the composition, roles and responsibilities and deadlines for the project team. Defines and documents the objectives and scope for the project. Identifies problems impeding successful completion of the project and proposes, develops and implements significantly new or modified audit approaches to solve them. Reports progress of the project to the Project Authority on an ongoing basis and at scheduled points in the life cycle. Meets with auditee management to outline audit objectives and approaches, to gather key perspectives, and to present audit observations and recommendations. Prepares plans, charts, tables and diagrams to assist in presenting or displaying observations and recommendations. 4.3 Senior Auditor Develops and designs approaches and programs for significant segments of projects. Participates in the development of the overall plan and strategy for specific projects. Carries-out, or supervises auditors and junior auditors in the performance of project tasks according to approved programs or plans. Prepares and presents project observations and recommendations to the Project Manager/Leader for approval. Presents observations and findings from work completed to the Project Authority and to auditees. Drafts and revises audit reports. 4.4 Auditor Participates in the planning, conduct and reporting phases of projects. Organizes and conducts project tasks according to approved programs or plans. Drafts portions of, or content leading to, drafts and final reports, including audit observations, conclusions and recommendations. Presents oral briefings and debriefings to auditees on assigned segments of projects. 4.5 Junior Auditor Conducts assigned tasks. Normally supports resources provided by the Contractor where there is a justified requirement for audit tests or other support activities not requiring the level of qualification or expertise associated with the other resource categories.

SCOPE OF SERVICES Note: When applicable, each individual proposed with a university degree or college diploma, must possess, at a minimum, a certificate from a recognized Canadian university or college, or the equivalent as established by a recognized Canadian academic credentials assessment service, if obtained outside Canada. Additional information can be found under the Canadian Information Centre for International Credentials website, at the following internet link: http://www.cicic.ca/ The experience of the proposed resources must be clearly identified by providing a summary/description of the previous projects/work experience and indicating when the work was carried out. In the case where the timelines of two or more projects or experience overlap, the duration of time common to each project/experience will not be counted more than once. Stream 5: External Audit Services The range of activities under this Stream could include: Financial statement audit readiness assessment; Financial statement audit; and Minimum Mandatory Qualifications and Experience for the Resource Categories: The following are the minimum mandatory requirements that must be met by the Contractor's personnel identified under each applicable resource category for work to be performed under this Stream. User departments cannot reduce these minimum requirements but, if necessary, user departments may increase these requirements at the Request for Proposal (RFP) stage: Partner/Managing Director Education/Professional Qualifications: Professional Designation in any one of the following: CPA, CA, CMA or CGA; AND Experience: Must have a minimum of eight (8) cumulative years of experience in external audit of financial statements and related services within the past ten (10) years. Project Manager/Leader Education/Professional Qualifications: Professional Designation in any one of the following: CPA, CA, CMA, or CGA; AND Experience: Must have a minimum of six (6) cumulative years of experience in external audit of financial statements and related services within the past ten (10) years. Senior Auditor Education/Professional Qualifications: Professional Designation in any one of the following: CPA, CA, CMA or CGA; AND Experience: Must have a minimum of three (3) cumulative years of experience in external audit of financial statements and related services within the past ten (10) years. Auditor Education/Professional Qualifications: Professional designation in any one of the following: CPA, CA, CMA or CGA; OR a degree/diploma from a recognized university or college (see note above), with a specialization relevant to the Stream and/or the Statement of Work; AND Experience: Must have a minimum of two (2) cumulative years of experience in external audit of financial statements and related services within the past ten (10) years. Junior Auditor Education/Professional Qualifications: Must be in the process of obtaining a degree/diploma from a recognized university or college (see note above) which is relevant to the Stream and/or the Statement of Work; OR in the process of completing an apprentice program that is relevant to the Stream and/or the Statement of Work.

TASKS An external financial audit is required to examine CIPO’s financial statements and to express an opinion as to whether they present fairly CIPO’s financial position as at March 31, 2019. CIPO’s financial statements are prepared to comply in accordance with Section 8.1 of the Receiver General of Canada Public Accounts Instructions. Note that the basic of accounting used in these financial statements differs from Canadian generally accepted accounting principles because services received without charge from other government departments are not reported as expenses; vacation pay and employee termination benefits liability are based on management’s estimates rather than based on actuarial valuations; and contingent liabilities are disclosed rather than recorded. The financial statements to be audited as at March 31, 2019 are: • Statement of financial position; • Statements of operations and net assets (liabilities); and • Statement of cash flow. The financial audits must be completed by mid-May so that CIPO can meet the deadlines established by central agencies. Dates have not yet been published; however as an indication, for fiscal year 2017-18, the final trial balance was due by mid-May and final copies of the financial statements and the auditors’ report was due to the Receiver General of Canada on May 30th, 2018. Auditors will have to meet with the management of the Fund prior and after the audits to plan the audits and address subject matters required by professional standards such as any misstatements resulting from errors, other than trivial errors, any fraud and any information obtained that indicates that a fraud may exist; any evidence obtained that indicates an illegal act or possibility illegal act or /and any material weaknesses in CIPO’s internal control. Interviews with management and employees will be conducted in the language of their choice.

CLIENT SUPPORT CIPO will provide work space and all relevant documentation to the Contractor, but the contractor is responsible to provide its own equipment such as phone, laptop, internet connection etc. .

DELIVERABLES and ASSOCIATED SCHEDULE - Pre-audit meeting; - List of required working papers for the audit; - Sign off on trial balance; - Final copy of the Statement of financial position; - Final copy of the Statements of operations and net assets (liabilities); - Final copy of the Statement of cash flow; - Auditor’s report; - Report and present to management, including the Deputy Minister, on observations during the audit and recommendations. The due dates of the above deliverables are to be confirmed at the Contract award stage as dates have not yet been published. However as an indication, for fiscal year 2017-18, the final trial balance was due by mid-May and final copies of the financial statements and the auditors’ report was due to the Receiver General of Canada on May 30th, 2018.

OFFICIAL LANGUAGES The Contractor must be capable of providing resources with the ability of conducting work in both Official Languages (French and English). The Contractor’s project team member(s) who will be interviewing, attending meetings and presenting information must be capable of delivering these services in both official languages at an Advanced level in both oral interaction and comprehension. At least one member of the following project team members, who are on site during the audit, must be fully bilingual in both official languages.

Oral Comprehension Written Advanced A person speaking at this level can: support opinions; and understand and express hypothetical and conditional ideas A person reading at this level can:

understand most complex details, inferences and fine points of meaning; and have a good comprehension of specialized or less familiar material.

A person writing at this level can: write texts where ideas are developed and presented in a coherent manner. 10.0 WORK LOCATION The work will be performed at the Canadian Intellectual Property Office, Place du Portage Phase 1, 50 Victoria Street, 5th Floor, Gatineau, Quebec and on the Contractor’s site. TRAVEL Any travel, accommodation, and incidental expenses related to the conduct of the Work are the sole responsibility of the Contractor. No travel, accommodation, or incidental expenses will be reimbursed under the resulting Contract. Contract Authority: Name: Eric Blouin Phone Number: 819-994-7648 Email Address: ic.cipocontractingunitopicunitecontrats.ic@canada.ca Any resulting Questions and Answers (Q&A) related to this RFP will be posted on GETS as they are issued. No Q&A will be emailed directly to any suppliers. This list will not be updated if additional suppliers request copies of the bid solicitation. Inquiries Inquiries regarding this RFP requirement must be submitted to the Contracting Authority named above. Request for Proposal (RFP) documents will be e-mailed directly from the Contracting Authority to the Qualified Supply Arrangement Holders who are being invited to bid on this requirement. BIDDERS ARE ADVISED THAT “BUYANDSELL.GC.CA” IS NOT RESPONSIBLE FOR THE DISTRIBUTION OF SOLICITATION DOCUMENTS. The Crown retains the right to negotiate with any supplier on any procurement. Documents may be submitted in either official language. NOTE: Task-Based Informatics Professional Services (TBIPS) Method of Supply is refreshed three (3) times per year. If you wish to find out how you can be a “Qualified SA Holder”, please contact RCNMDAI.-NCRIMOS@pwgsc.gc.ca ANNEX A List of suppliers Only SA Holders under Stream 5 – External Audit services; listed below are eligible to submit a proposal in response to RFP # CIPO190192. The following 10 suppliers are eligible as they were listed as pre-qualified as per the search done on November 2nd, 2018, based on the following search criteria: Professional Services: PASS Supply Arrangement Services Stream: 5. External Audit Services Number of Resources and Level of Effort: To be determinate by the bidder Supplier Security Clearance: Reliability Status Document Safeguarding: None required Region/Metropolitan: NCR Estimated Requirement Dollar Value Range: Greater than NAFTA to $2 Million

BDO Canada LLP Collins Barrow Ottawa LLP Deloitte LLP Ernst & Young LLP KPMG LLP MNP LLP Pricewaterhouse Coopers LLP Raymond Chabot Grant Thornton Consulting Inc. Samson & Associés CPA/Consultation Inc Welch LLP