Description of the contract
Cwmpas, formerly known as the Wales Co-operative Centre, is Wales’ national body for co-operatives, mutuals, social enterprises and employee owned businesses. It applies its co-operative values to supporting social businesses, strengthening communities, tackling poverty and promoting inclusion.
It delivers major programmes on behalf of the EU (via the Welsh European Funding Office) and Welsh Government. Other funders include the Big Lottery and the Nationwide Foundation. It also delivers consultancy services to a wide range of clients.
It employs just over 100 members of staff who are based across Wales. It is a co-operative, with an active community of members who shape the strategic direction of Cwmpas and democratically elect a Management Board each year.
This document invites quotes for the provision of audit and accountancy services for Cwmpas.
Background
Cwmpas is registered with the Financial Conduct Authority under the Co-operative and Community Benefit Societies Act 2014.
It prepares Financial Statements annually to the 31st March. The previous audited accounts for the year to 31st March 2021 resulted in a turnover of £6.1million, a surplus of £92k and a balance sheet total of £965k. Turnover for the year to 31st March 2022 is forecast at £6.5million. Following recent funding awards we are anticipating the turnover for the coming financial year (March 2023) to be circa £7.2million.
A copy of our latest audited accounts is attached with this request for quote. The organisation currently uses Sage Line 50 and Sage Payroll to manage its finances.
The organisation delivers major programmes and activities funded via the Welsh European Funding Office (WEFO), the Welsh Government (WG) and other funding bodies. Project and contract values range from £150k to £15million in total with delivery timescales ranging from one to 5 years. Current major projects are as follows:
Social Business Wales. This project supports the development and growth of social enterprises and co-operatives across Wales. It aims to increase the number, sustainability and growth of emerging and established social enterprises. The project operates in both the West Wales and the Valleys and the East Wales areas. Europeon funding comes to an end in June 2023. Replacement funding is expected, but at a lower value.
Digital Communities Wales. Cwmpas delivers a Welsh Government project, Digital Communities Wales, which provides support to organisations that are working with digitally excluded groups, particularly older people, people with disabilities, unemployed people, social housing tenants and families in poverty.
Co-operative Housing. Cwmpas offers business support and advice to new and existing organisations looking to develop Co-operative Housing schemes in Wales. With funding from Welsh Government and the Nationwide Foundation, our goal is to develop and stimulate demand for the Co-operative Housing approach throughout Wales.
Other. The organisation has recently been awarded funding from the Community Renewal Fund. It also receives income from other funders such as the Lottery.
Further details about the role and work of Cwmpas can be found at www.cwmpas.coop
3. Audit and Accountancy Services Requirements
The organisation requires the service of an organisation to provide professional audit and accountancy services. The principal outputs of the contract will be to provide annual audit reports for all public funded contracts/projects and to prepare and audit the statutory accounts derived from a Final Trial Balance provided by Cwmpas.
The successful organisation will be formally appointed at the Annual General Meeting in September 2022 and will be expected to deliver all external audit services from that date. These services will include:
• Independent statutory annual audit;
• Individual annual audits for some public funded projects;
• Occasional advice and support regarding taxation and Industrial and Provident reporting requirements;
• Attendance at the Annual General Meeting;
• Attendance at Risk and Audit committee meetings as required.
Contract duration
Organisations are invited to quote for the provision of the external audit services for the period September 2022 to September 2025 including the statutory audit of the accounts for the financial year ending 31 March 2023. Subject to satisfactory performance and adherence to the schedule of fees set out in the quote submission, the contract will be awarded for an initial period of three years with an option to extend for any period up to a maximum period of two years.
4. SPECIFICATION
You are required to provide the following information as part of your quote submission. The selection criteria will involve consideration of all of this information.
Relevant experience: A statement of your firm's experience of Community benefit Societies regulated by the FCA and commitment to the sector.
Audit references: The provision of a list of three audit clients for which audit services are currently undertaken and from which references may be sought.
Partners, Staff and Quality Assurance: A list of proposed audit staff including job titles, qualifications and relevant experience. An indication of the training provided to partners and staff to enable them to maintain professional knowledge of changes within the sector. An indication of the process adopted to ensure continuity of audit staff and of your internal quality assurance measures.
Audit Structure and Fees: An outline of the audit approach and timetable for an organisation of the size and operation of Cwmpas. A detailed breakdown of the total costs for audit services provided for the financial year ending 31 March 2023 to include time, charge and disbursement costs at partner, senior and junior levels to support identified requirements.
You are invited to submit either a fixed fee quotation for all audit services for the financial year ending 31 March 2023 or an estimate of the fees to be charged for the individual audit services to be provided.
For both options, a full schedule of hourly rates for the staff involved in the audit and assumptions made should be provided.
An acknowledgement that fees for subsequent years will be by negotiation but will be expected to be based on the fees charged for the financial year ending 31 March 2023 with an indexation component.
It is expected that audit services will be re-tendered in three or five years time but Cwmpas reserves the right to vary this on the basis of a review of services and fees.
Other Services: A statement of your ability to provide other services to Cwmpas (assuming these are allowable under audit independence requirements) beyond the basic audit should they be required with an indication of your price structure.
Indemnity: The successful Contractor is required to hold Cwmpas indemnified against any claims arising whether caused by negligence or default of the Contractor. All bidders should provide evidence of adequate levels of professional indemnity insurance to a minimum sum of £1million.
Social responsibility: Fairness, diversity and protecting the environment are key priorities being addressed by Cwmpas and its funders. All bidders should therefore confirm in their submission that they are committed to supporting a fair wage, equal opportunities and diversity, environmental sustainability and the Welsh Language.
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