Objective and Scope
You, as Chief Financial Officer, have requested that we audit and report under the Ontario Election Finances Act (Act) on the annual financial statements of the registered constituency noted above, which comprise the statement of assets and liabilities as at December 31, 2025, the statement of income and expenses for the year then ended, the financial information set out in the Schedules, and a summary of significant accounting policies and other explanatory information. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter. Our audit will be conducted with the objective of expressing an opinion on the financial statements.
In the event an election is called during the year, the Act requires that financial statements be prepared for the campaign period. This would form the basis of a separate engagement, covered by a separate engagement letter.
Our Responsibilities
We will conduct our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
Because of the inherent limitations of an audit, together with the inherent limitations of internal control, there is an unavoidable risk that some material misstatements may not be detected, even though the audit is properly planned and performed in accordance with Canadian generally accepted auditing standards.
In making our risk assessments, we will consider the registered constituency association's (as noted above) relevant internal controls in order to design the nature, timing and extent of audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness the entity’s internal controls. However, we will communicate to you in writing concerning any significant deficiencies in internal control relevant to the audit of the financial statements that we have identified during the audit.
Canadian generally accepted auditing standards require us to comply with ethical requirements, including a duty of confidentiality with respect to client affairs. Accordingly, we will not provide any third party with confidential information concerning the affairs of the registered constituency association (as noted above) without the registered constituency association’s (as noted above) prior consent, unless required to do so by legal authority, or the rules of professional conduct of the Ontario Chartered Professional Accountants.
Content of Audit Reports
Our reports, which will be addressed to your Chief Financial Officer (as noted above) and the Chief Electoral Officer of Ontario, will have two components:
- For the financial statements prepared under the fair presentation financial reporting framework, we will state, whether in our opinion, the statement of assets and liabilities and statement of income and expenses referred to above present fairly, in all material respects, the financial position of the registered constituency association (as noted above) as at December 31, 2025 and its income and expenses for the year then ended in accordance with the financial reporting provisions of Section 41 of the Act and the guidelines issued by the Chief Electoral
- For the financial information set out in the Schedules prepared under the compliance financial reporting framework, we will express an opinion on whether the financial information contained in the Schedules is prepared, in all material respects, in accordance with the financial reporting provisions of Section 41 of the Act and the guidelines issued by the Chief Electoral Officer.
It should be noted that the Act prescribes limitations on the amount and sources of contributions. However, it is not practicable for us to verify, from sources outside the accounting records, that all contributions are in accordance with the requirements of the Act, nor does the Act require us to do so. It is also not practicable for us to determine that all financial transactions relating to the registered constituency association (as noted above) have been included in the accounting records. In our reports we shall state these facts.
As required by the Act, in our reports we shall make such statements as we consider necessary in any case where, in our opinion:
- We have not received from the chief financial officer all of the information and explanations that we required; or
- Proper accounting records do not appear to have been kept by the chief financial officer based on our examination.
Unless unanticipated difficulties are encountered, our reports will be substantially in the form presented in Appendix A (for financial statements), Appendix B (for Schedules) and Appendix C (notes to financial statement and schedules).
If we conclude that a modification of our opinion on the financial statements is necessary, we will discuss the reasons with you in advance.
Our responsibility as auditor does not extend beyond the reporting function outlined above, and accordingly does not include ensuring that your registered constituency association and its officers, including your chief financial officer, comply with all the requirements of the Act.
Use and Distribution of our Reports
The examination of the financial statements and the issuance of our audit opinions is solely for the use of the registered constituency association (as noted above) and those to whom our reports are specifically addressed by us. We make no representation of any kind or to any third party in respect to these financial statements and we accept no responsibility for their use by any third party.
We ask that our name be used only with our consent and that any information to which we have attached a communication be issued with that communication unless otherwise agreed to us.
Reproduction of Audit Reports
If reproduction or publication of our audit reports are planned in an annual report or other document, including electronic filings or posting of the report on the website, a copy of the entire document should be submitted to us in sufficient time for our review before the publication or posting process begins.
Management is responsible for the accurate reproduction of the financial statements, the auditor’s report and other related information contained in an annual report or other public document (electronic or paper-based). This includes any incorporation by reference to either full or summarized financial statements that we have audited.
We are not required to read the information contained in your website, or to consider the consistency of other information on the electronic site with the original document.
Communication Waiver
In connection with this engagement, we may communicate with you or others via telephone, facsimile, post, courier and email transmission. As all communications can be intercepted or otherwise used or communicated by an unintended third party, or may not be delivered to each of the parties to whom they are directed and only to such parties, We cannot guarantee or warrant that communications from us will be properly delivered only to the addressee. Therefore, we specifically disclaim and waive any liability or responsibility whatsoever for interception or unintentional disclosure of communications transmitted by us in connection with the performance of this engagement. In that regard, you agree that we shall have no liability for any loss or damage to any person or entity resulting from the communications, including any consequential, incidental, direct, indirect, or special damages, such as loss of revenues or anticipated profits, or disclosure or communication of confidential or proprietary information.
Chief Financial Officer’s responsibilities
Our audit will be conducted on the basis that the Chief Financial Officer acknowledges and understands that he/she has the responsibility for the following:
- The preparation of registered constituency association's (as noted above) financial statements under the fair presentation financial reporting framework for the statement of assets and liabilities and the statement of income and expenses and the compliance financial reporting framework for the Schedules and in accordance with the Act and the Chief Electoral Officer’s guidelines.
- For such internal controls as the chief financial officer determines are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and
- To provide us with:
- Access to all information of which the chief financial officer is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters;
- Additional information that we may request from the chief financial officer for the purpose of the audit; including required documentation and MS Excel spreadsheet reporting tools as explained and provided on a provided Audit Support Website Page;
- Unrestricted access to person(s) within the organization from whom we determine is/are necessary to obtain audit related information;
- Written confirmation concerning representations made to us in connection with the audit. As part of our audit process, we will request this from the chief financial officer [and, where appropriate, those charged with governance] .
Preparation of Schedules
The Act requires filing of the annual financial statements by May 31 of each year. We anticipate that we will be able to report in time to permit a filing of your financial statements by the date required by the Act if financial statements are completed and available for audit on or before March 15 of each year or by an alternate date provided by us to you in writing. You have agreed that you will provide us with the completed financial statements by the date indicated above or alternate date as specified by us in writing.
You have also agreed that you will make various invoices and other documents available to our staff and will arrange with suppliers that they will certify as to the commercial value of goods and services provided.
Working Papers
The working papers, files, other materials, report and work created, developed or performed by us during the course of the engagement are the property of our firm, constitute confidential information and will be retained by us in accordance with our firm’s policies and procedures.
File Inspections
In accordance with professional regulations our client files may periodically be reviewed by practice inspectors, and by other file quality reviewers to ensure that we are adhering to our professional and our firm’s standards. File reviewers are required to maintain confidentiality of client information.
Governing Legislation
This engagement letter is subject to and governed by the laws of the Province of Ontario. The Province of Ontario will have exclusive jurisdiction in relation to any claim, dispute or difference concerning this engagement letter and any matter arising from it. Each party irrevocably waives any right it may have to object to any action being brought in those courts, to claim that the action has been brought in an inappropriate forum, or to claim that those courts do not have jurisdiction.
Dispute Resolution
You agree that:
- Any dispute that may arise regarding the meaning, performance or enforcement of this engagement will, prior to resorting to litigation, be submitted to mediation; and
- You will engage in the mediation process in good faith once a written request to mediate has been given by any party to the engagement.
We will also engage in the mediation process in good faith once a written request to mediate has been given by any party to the engagement. Any mediation initiated as a result of this engagement shall be administrated within the Province of Ontario by a mediator to be appointed that is acceptable to both parties according to mediation rules, and any ensuing litigation shall be conducted within such province, according to provincial law. The results of any such mediation shall be binding only upon agreement of each party to be bound. The cost of any mediation proceeding shall be shared equally by the participating parties.
Indemnity
The registered constituency association (as noted above) hereby agrees to indemnify, defend (by counsel retained and instructed by us) and hold harmless our firm and its partners, agents or employees, from and against any and all losses, cost (including solicitors’ fees), damages, expenses, claims, demands, or liabilities arising out of or in consequence of:
- The breach by the registered constituency association (as noted above), or its directors, officers, agents or employees, of any of the covenants made by the registered constituency association (as noted above) herein, including, without restricting the generality of the foregoing, the misuse, or the unauthorized dissemination of, our engagement report or the financial statements in reference to which the engagement report is issued, or any other work product made available to you by our firm; and
- The services performed by us pursuant to this engagement, unless, and to the extent that, such losses, costs, damages and expenses are found by a court of competent jurisdiction to have been due to the negligence of our firm. In the event that the matter is settled out of court, we will mutually agree on the extent of the indemnification to be provided by the registered constituency association (as noted above).
Time Frames
We will use all reasonable efforts to complete the engagement as described in this letter within the agreed upon time frame. However, we will not be liable for failures or delays in performance that arise from causes beyond our control, including the untimely performance by the registered constituency association (as noted above) of its obligations.
Use of Contractors
To facilitate the performance of this audit engagement, we reserve the right to subcontract all or any portion of the work required. All subcontracted work will remain under our direct supervision and will be carried out in accordance with the professional standards applicable to this engagement.
Fees
Fees will be determined on the basis of time spent on this engagement at our standard rates plus direct out-of-pocket expenses and applicable HST. As Elections Ontario provides a subsidy for the audit fee, the registered constituency association (as noted above) is responsible for all fees in excess of the subsidy, if any.
Costs of Responding to Government or Legal Processes
In the event we are required to respond to a subpoena, court order, government agency or other legal process for the production of documents and/or testimony relative to information we obtained and/or prepared during the course of this engagement, you agree to compensate us at our normal hourly rates for the time we expend in connection with such response, and to reimburse us for all of our out-of-pocket costs (including applicable HST) incurred.
Use of Information
It is acknowledged that we will have access to all personal information in your custody that we require to complete our engagement. Our services are provided on the basis that:
- You represent to us that management has obtained any required consents for collection, use and disclosure to us of personal information required under the applicable privacy legislation; and
- We will hold all personal information in compliance with our firm’s privacy statement.
The above terms of the engagement will be effective from year to year until amended or terminated in writing.
If you have any questions about the content of this letter, please raise them with us. If the above terms are acceptable to you, please sign this elecronic copy of the engagement letter, per below, to acknowledge that you as Chief Financial Officer understands the terms.
Yours truly,
Melo LLP
Licensed Public Accountants