PROVINCIAL CONSTITUENCY ASSOCIATIONS (PCA) - AUDITOR ENGAGEMENT

When do you Need an Auditor?

The PCA is required to file an Annual Return (AR-1) to Elections Ontario. The annual AR-1 must be audited if contributions totaling $10,000 or more are accepted and/or association expenses totaling $10,000 or more are incurred.

Additionally, during an election year, there is a financial return (CR-3) for the PCA that reports PCA campaign period transactions that must be filed with Elections Ontario.  The same rules, as above, apply to the CR-3 with respect to whether an audit is required or not.

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 AR-1 (or CR-3). 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 AR-1 (or CR-3) Audit. Expense transactions include (but not limited to); PCA fundraising costs, PCA 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 PCA, and looking to obtain Political Finances Audit services your PCA must meet some documentation and record keeping requirements (Engagement Requirements).

Some of these general requirements are;

  • The PCA has opened an PCA bank account, according to requirements as set out in the Election Finances 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.
  • 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 Chief Financial Officer of the PCA is able to provide detailed transaction reports (transaction dates; deposit, fees, transfer amounts, corrections, etc.)
  • The Chief Financial Officer would provide copies of manual official receipts issued for contributions received OR if the registered party is registered with Elections Ontario as having a tax receipt database, provide a tax receipt summary report provided by the registered party included schedule 2 part 2 of the AR-1 (again, provided by the registered party).
  • The Chief Financial Officer 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 to (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 PCA (in a general election year or if a by-election occurred).
    5. Any 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. PCA payables as at year end (December 31).
  • The Chief Financial Officer 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.).
  • The Chief Financial Officer 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.
  • The Chief Financial Officer would be able to provide all required documentation for audit by March 31 of the year subsequent to the year of the audit (for example, for an audit of the 2025 AR-1 the documentation must be received by March 31, 2026), in order to guarantee meeting the filing deadline.

If the Chief Financial Officer and PCA are 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 PCA Requests for Audit