Audit and Financial Advisory Services CUAAFA2018

For audit services (other than for forensics or probity) including internal audits, performance (operational) audits, compliance audits, financial audits, information systems audits and corporate governance reviews.

The Institute of Internal Auditors’ Professional Practice Framework (PPF) defines Internal Audit as “an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”

Treasurers Instruction Part XII outlines the basic requirements for an effective internal audit function and stipulates that audit services shall be carried out in accordance with the most recent Standards for the Professional Practice of Internal Auditing issued by The Institute of Internal Auditors.

Contractors should provide feedback and advice to the customer and/or audit committees on best practice in both the public and private sectors as part of the internal audit reporting function, as this will assist enhancement of the customer’s efficiency and/or effectiveness and its controls.

For investigations through forensic accounting to prevent and resolve commercial disputes, fraud, misconduct, and breaches of rules and regulations.

For independent scrutiny of a process (including activities such as outsourcing, procurement, disposal of assets) to ascertain whether procedures followed are consistent with appropriate regulation, guidelines and best practice principles of openness and transparency. Probity Advisors and Probity Auditors should address:

• best value for money
• impartiality
• dealing with conflicts of interest
• accountability and transparency

For business/business unit, procurement, project, program or initiative risk reviews, assessments and facilitation services including advice and assistance in defining and assessing risk categories and treatments, workshops and training.

Treasurer’s Instruction 825 Risk Management and Security states:

“The accountable officer or authority shall ensure that:

1. there are procedures in place for the periodic identification, assessment and treatment of risks inherent in the operations of the department or statutory authority;
2. suitable risk management policies and practices are developed;
3. an appropriate level of security is maintained over money, public and other property of or under control of the agency, including information held and intellectual property developed and controlled by the agency; and
4. these procedures, policies and practices are documented in the financial management manual or other relevant policy manuals.”

The provision of risk advisory services will be in accordance with AS/NZS ISO 31000:2018 Risk Management – Guidelines which adopt an enterprise-wide risk management approach.

For advice on financial, accounting and taxation matters including:

For procurement advice including:

For the assessment of the financial capacity of organisations including for pre-qualification, pre-contract award and post contract award monitoring of contracts. Financial assessment services provide a due diligence check to assess a contractor has the financial capacity to complete the work or supply the goods and services without becoming insolvent or experiencing financial distress.

The following reports are available:

Click here for the detailed Category G Specifications.

For the appraisal and evaluation of Customer programs. Reviews are for identifying and understanding the results of a program and their impacts, as well as what can be the best alternatives to help in decision-making and lead to improvement in the process.

• Services offered by the Western Australian Treasury Corporation (WATC) do not form part of this CUA; this means that State Agencies can elect to engage the WATC to assist with their requirements.
• Engagement of an Internal Audit Committee (IAC) Chair, who is not a public service officer, is out of scope of this CUA.
• Engagement of Temporary Personnel Services.

   The CUA for Temporary Personnel Services (CUATPS2019) is for Customers that need an appropriately skilled temporary resource. This resource      will be managed by the Customer and is not required to deliver a completed outcome.

           The CUATPS2019 categories are:

                   a) Clerical and Administrative

                   b) Technical & Trades

                   c) Professional

                   d) Information & Communication Technology

State Agencies are also required to comply with the CUA Buying Rules.

It is mandatory for State Agencies in the Perth region to use this CUA to obtain services within scope of Categories A – G.  

Category H (Program Review) services are non-mandatory.

If you require an exemption from using the CUA (Categories A-G) or a waiver of the Buying Rules, you need to seek that approval from the Department of Finance. The  Procurement Practice Guidelines - Common Use Arrangements outlines how to seek a CUA exemption or waiver.

Please note that State Agencies are not required to request advice or approval from the Department of Finance when purchasing from an Australian Disability Enterprise (ADE) or an Aboriginal Business

State agencies should be aware of the following requirements under Western Australian Procurement Rules as they apply to purchases from this CUA. The table below is a summary of the requirements, and State agencies are encouraged to review the WA Procurement Rules.

Procurement planning

Request development and contract formation

Contract management

Exemption from using this CUA

Procurement Frameworks is responsible for processing and approving all requests from State agencies seeking exemption from using a mandatory CUA. Requests for an exemption are considered on a case-by-case basis, and a requesting agency must be able to demonstrate that a business need cannot be adequately met by the relevant CUA.

Exemption requests should be directed to the Assistant Director Procurement Frameworks through an email to the contract manager in the first instance. Requests for exemption may be received by posted letter or email, but must be in writing and provide sufficient explanation and background to enable the request to be considered. The requesting officer should be the Accountable Authority or delegate of the Agency.

For guidelines on what to include in an exemption request, please refer to the Common Use Arrangements Procurement Practice Guideline

The table below lists all contractors on the CUA and the Categories they have been contracted to provide. 

Refer to the Contractor Profiles for more information on their experience, skills and qualifications.

Departures

Contractors marked with an asterisk (*) have negotiated departures to the CUAAFA2018 Request and/or the General Conditions of Contract (Dec 2016). Contact the Contract Manager if you would like a copy of the negotiated departures.

Insurances

The CUAAFA2018 Request (Customer Contract Details) lists the insurance requirements for Customer Contracts.

If your contract is complex and/or high value, consider whether the insurance liability limits in the CUAAFA2018 Request are appropriate.  Please consult with RiskCover and if needed seek additional insurance cover from the Contractor.

Contractors are required to maintain the following insurances: 

** Contractors who are sole traders are not required to maintain workers' compensation insurance

• Buyers should negotiate below the maximum hourly rates provided in the Price Schedule.

• Refer to the Contractor Profiles for more information on their experience, skills and qualifications.
• Ensure your Customer Quote/Order Form is clear, concise, correct and complete. This will ensure contractors can accurately quote and/or deliver as per your requirements.

Pricing

As maximum prices have been agreed with contractors on this CUA, State Agencies are encouraged to negotiate the prices quoted by the selected contractor(s) when purchasing services from this contract.

Payment for services purchased on this CUA can be made either by Purchasing Card, cheque or Electronic Funds Transfer (EFT) and should be made within 30 days of receipt of an invoice from the contractor unless a fee is disputed.

A comparison of prices is provided in the Price Schedule which lists the maximum hourly rates for each Contractor in each category.  The rates are broken down by consultant position level (i.e. Partner/Director, Senior Manager, Manager/Supervisor, Senior, Intermediate, Graduate). These appendices will provide you with a guide to the maximum total cost of the audit services and/or financial advice based on your agency’s requirement.

While the Contractors may not quote a rate for a consultant position level that is higher than the rate listed in the CUAAFA2018 Price Schedule, you may seek to negotiate lower hourly rates or agree to pricing on a fixed lump sum basis.  

CUAAFA2018 Customer Contracts may be priced on an hourly rate or fixed lump sum basis.

• Hourly rate contracts are priced by reference to the total hours for each consultant position level multiplied by the agreed hourly rate for each level, plus Other Charges (if any).  The Contractor and Customer will agree the hourly rates in the CUA Quote Form and the Contractor should provide an estimate of total hours for each consultant position level.  
• Fixed lump sum contracts are priced by reference to an agreed total contract price and are not broken down by reference to consultant position levels and hours recorded

If you have a preferred pricing method, specify that preference in the CUA Quote Form (Part A).  If you don’t have a preference, select the “Either” option in the CUA Quote Form and the Contractor will have discretion to quote on either an hourly rate or fixed lump sum basis.  Contact the Contract Manager if you have queries about the pricing method to use.

The Contractors may charge reasonable disbursements, i.e. out of pocket costs such as travel expenses or accommodation.  The Contractor should specify the type and estimated cost of any anticipated disbursements in the CUA Quote Form (Part B).  The CUA pricing does not includes agreed rates for disbursements.

State Agencies can view hourly rate comparison data for all Contractors and State Agencies in the PowerBI CUAAFA2018 Expenditure Report.  For assistance with accessing or using that report, contact BDA-informandimprove@finance.wa.gov.au

Position titles

As defined in the Price Schedule.

Payment by Purchasing Card

The government Purchasing Card offers a quick and convenient method of payment allowing many goods and services to be efficiently purchased.

Always remember to inform the supplier that you will be paying by government Purchasing Card, at the time of ordering the product or service, and ensure they clearly understand that they must send the tax invoice directly to you, the cardholder.

Step by step buying process

1. Complete and forward Part A: CUAAFA2018 Quote Form Part B – Contractor Offer, and Part C – Acceptance Offer to selected Contractor(s) as per the CUAAFA2018 Buying Rules.  
2. Customer discusses and negotiates with selected Contractor (if applicable). The published rates in the Price Schedule are the maximum rates allowable so State Agencies are encouraged to negotiate a lower rate.
3. If applicable, the Customer notifies unsuccessful Contractors and the justification behind why a particular supplier was selected is documented and available for review.
4. Contractor delivers services.

Whether you seek multiple quotes or you order from a single Contractor, you should use the CUA Quote Form to document the process.

If you seek multiple quotes, please ensure that you let all respondent Contractors know if they have been successful or unsuccessful at the end of the process.

Please ensure compliance with the Premier’s Circular 2019/06 regarding reporting on consultants engaged by government and Premier’s Circular 2018/02 regarding permanent engagement of fixed term contract and casual employees.

Other tips

Engagement Letters

You should use the CUA Quote Form (Parts A, B and C) to document the formation of a Customer Contract under the CUA.  

You are not required to sign a separate Engagement Letter issued by the Contractor and you are advised not to sign a Contractor’s engagement letter that incorporates their standard terms of business. See the Terms and Conditions section below for more information the CUA terms and conditions

Terms and Conditions

The terms and conditions that apply to all CUAAFA2018 Customer Contracts are set out in the CUAAFA2018 Request (Schedule 1, Customer Contract Details & Schedule 2), together with the General Conditions of Contract (Dec 2016).  

If you agree to vary any of the standard CUA terms and conditions, the agreed variation(s) should be documented as a special condition in the CUA Quote Form.  See the Special Conditions section above.

When entering a Customer Contract under the CUA do not sign up to the Contractor’s standard engagement letter incorporating their non-CUA terms of business.

The CUA Contractors have agreed to provide services that comply with the terms and service specifications in the CUAAFA2018 Request, together with those specified in the General Conditions of Contract (Dec 2016)

Special Conditions (Customer Contracts)

Special conditions are negotiated conditions that apply to a specific Customer Contract.  Those conditions may be in addition to the standard CUA terms and conditions, or they may be negotiated changes to the standard CUA terms and conditions.  

For example, you may require Contractor police clearances, or you may need to reference specific confidential information in the Customer Contract or require that the Customer retains ownership of intellectual property rights in new material.

Please ensure that you clearly descript any applicable special conditions in the CUA Quote Form (Parts A & C). 

Conflicts of Interest

A conflict of interest is a situation arising from a conflict between an entity or individual’s public or professional duty and their private or personal interest.  A conflict may be actual, potential or perceived and may relate to either a financial or non-financial benefit.

Both CUA Customers and Contractors have a duty to identify and manage conflicts of interest.  

Your agency’s code of conduct and conflict of interest guidelines will outline your duty to identify, report and manage conflicts.  

You must consider and declare conflicts (actual, potential or perceived) when seeking quotes, evaluating offers, awarding and managing a contract.

CUA Contractors have contractual obligation under the General Conditions of Contract (Dec 2016) to identify conflicts and notify their Customer.  They are also required to complete the declaration that has been added to the CUA Quote Form (Part B) stating that they have done a conflict check and declared any identified conflicts to their Customer. 

If a conflict is identified they are required to notify their Customer and take reasonable steps to remove the conflict.  As the Customer you must determine whether it is possible to manage the conflict before you award the Customer Contract.

Intellectual Property Rights

The CUAAFA2018 Request (Customer Contract Details) specify that:

• intellectual property rights in new materials are owned by the Contractor, and
• the Contractor grants the Customer an irrevocable, perpetual, royalty-free, non-exclusive licence to exercise any or all of the rights of an owner of intellectual property rights in the new material during the remainder of the duration of the intellectual property rights in that new material.

If the circumstances of the your Customer Contract require that your agency retains ownership of the intellectual property rights in the new material created under the contract, please include a special condition in the CUA Quote Form specifying that Part B, Clause 23.1 of the General Conditions of Contract (Dec 2016) applies.

Active contract management pays off

• Check your invoices to ensure the correct price has been charged.
• Manage your contract term – keep an eye on your contract expiry date.
• Monitor contractor performance and deliverables.
• Test the market on a regular basis to see what the other contractors on the CUA are offering.
• Document any issues as they arise even if they are resolved. This will assist in ongoing contractor performance management.
• If you extend a Customer Contract, make sure that you obtain and keep a record of any internal approvals required by your agency.
• If you encounter an issue and you are unable to resolve it directly with the contractor, please contact the contract manager.

Service Issues

The CUA Contractors are required to comply with the service requirements in the CUAAFA2018 Request (Schedule 2), together with the General Conditions of Contract (Dec 2016) and any special conditions specified in the relevant CUA Quote Form.

Detailed guidance on monitoring supplier performance and managing contract problems is available on WA.gov.au.

Notwithstanding the CUA service requirements, you may encounter contract issues that can arise for a variety of reasons. To minimise the chance of a minor problem escalating into a dispute, the issue should be identified, discussed and resolved quickly and efficiently at the lowest practical level. 

If you do experience a service issue with a CUA Contractor that you are unable to resolve directly with the Contractor, you can also seek advice from the Contract Manager.

Supplier Performance

The Department of Finance monitors the CUA Contractors at the Head Agreement level by using KPIs linked to the delivery and accuracy of sales reports, maintenance of insurances and by seeking feedback from Customers via ad hoc queries and customer satisfaction surveys.

Customers are also encouraged to monitor supplier performance under their Customer Contracts.  If your contract is of significant complexity, value, risk and/or duration, consider incorporating contract management requirements in the Customer Contract to facilitate the active monitoring of supplier performance (i.e. meetings, reporting, KPI’s etc.).

Active monitoring of ongoing Customers Contracts (e.g. invoice accuracy, service deliver and contract term), and regularly testing the market to see what other Contractors are offering can help you maintain good supplier performance and value for money.