FEDERAL CANDIDATE'S CAMPAIGN - AUDITOR ENGAGEMENT

When do you Need an Auditor?

Currently, Elections Canada requires that an Auditor of the candidate's campaign be registered and on file with Elections Canada (whether audit services are used or not). The candidate's campaign is required to file a Candidate's Campaign Return to Elections Canada. This return must be audited if contributions totaling $10,000 or more are accepted and/or campaign expenses totaling $10,000 or more are incurred.

It is important to distinguish between expense and non-expense transactions in your determination of the $10,000 expense threshold for requiring an audit of the campaign. Non-Expense transaction include; monetary transfers to campaign bank accounts, payments for prior year payables, payments for pre-paid expenses that are then invoiced to the candidate's campaign. These non-expense transactions should not be included in your determination of the $10,000 threshold for requiring the return Audit. Expense transactions include (but not limited to); campaign fundraising costs, campaign advertising during the non-campaign period, office supplies, office rent during the non-campaign period etc. These are costs that can be included in the determination of the $10,000 threshold.

Our Audit Services (for new potential clients)

If you are a Federal Candidate, and looking to obtain Political Finances Audit services your campaign must meet some documentation and record keeping requirements (Engagement Requirements).

Some of these general requirements are;

  • The campaign has opened an campaign bank account, according to requirements as set out in the Canada Elections Act, which provides the following services;
    1. Monthly bank statements.
    2. Bank statements include images of cancelled cheques (cancelled cheques are those cheques that are issued to make payment and clear your bank account).
    3. Online account access.
    4. Detailed disbursement e-transfer reports and records that identify date of transaction, amount of disbursement, payee name and payee email address for each
      transaction.
    5. Account transaction download files in *.csv format.
    6. Merchant bank transaction reports.  If contributions are received electronically, online (Paypal, Square, Moneris etc.) or intermediate service provider (Stripe, Nationbuilder etc.) to process and manage electronic contributions, the financial agent of the campaign is able to provide detailed transaction reports (transaction dates; deposit, fees, transfer amounts, corrections, etc.)
  • The Official Agent has used Elections Canada EFR software to issue official receipts and the would be able to provide a copy of the EFR Software database file from which official receipts were issued.  The process for this can be explained later if not understood currently.

 

  • The Official Agent would agree to use and completed MS Excel Spreadsheets (templates provided by us) which record details of;
    1. Bank account transactions (deposits and disbursements with income and expense allocations).
    2. Fundraising Events.
    3. Sign Inventory (old from previous election) sent from the EDA to to campaign (non-monetary transfer (if any)) and used by the campaign (in a general election year or if a by-election occurred).
    4. Sign Inventory remaining at the end of the a candidates campaign transferred to the EDA (in a general election year or if a by-election occurred).
    5. Any EDA pre-paid campaign expenses not invoiced to and paid for by the campaign but used by the candidates campaign (in a general election year or if a by-election occurred).
    6. campaign payables as at the end of the campaign period.

 

  • The Official Agent would have organized expense documentation (invoices / purchases receipts / contracts / agreements) according to a voucher system. Generally explained, expense documentation (invoices) etc. are organized according to the order of disbursement transactions as reported on the bank statements. A voucher page, which summarizes the expense(s) that occurred on a specific date is stapled on top of all supporting expense documentation (invoices etc.).

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  • The Official Agent would have photocopies ( or scanned electronic files ) of all cheques deposited into the campaign bank account. For combined deposits, where more than one cheque is deposited at one time, all cheque photocopies or scanned images are grouped together.

If the Official Agent and campaign is able to meet the requirements noted above and is interested in auditor engagement please select the button below to complete our online EDA client intake form.  After completion and submission of this form we will be in touch with you within 24 hours to discuss suitability and the next steps with finalizing auditor engagement.

Info Form for New Candidate Requests for Audit