Board of Governors - APPENDIX III - March 30, 2000



Appointment of Auditors

At its meeting of February 3, 2000, the Audit Committee appointed Ernst and Young as auditors for The University of Western Ontario's fiscal year end audits of April 30, 2000 to April 30, 2002.

While recognizing that the three-year fee quotation (below) provides an element of cost containment, the Committee discussed the merits of a one-year versus a three-year appointment contract. Members were informed that the three-year contract includes the following "out clause" [sec. 5.1]:

Either the University of Ernst and Young may, without cause, effect cancellation of the agreement at any time prior to the expiry by giving at least thirty (30) days prior written notice to the other and no financial compensation will be exercised by either party as a result of such cancellation.

In light of this provision, the Committee concluded that a three-year contract was not inappropriate.


Audit Fees

Recommended: That the Board of Governors approve the following audit fees for fiscal year audits of April 30, 2000 - April 30, 2002:

2000 2001 2002
Combined Financial Statements 76,065 76,065 76,065
Employee Post-Retirement Benefit 3,680 2,455 2,455

Total Corporate




Government Required
Audit of Enrolment 5,500 5,500 5,500
ATOP 3,250 3,250 3,250
ATOP Enrolment Audit (estimated) 6,500 3,900 3,900
OSOTF 3,900 3,900 3,900
CSP - per project 500 500 500
OSAP (estimated) 19,500

Total Government Required




TOTAL FEES 118,895 95,570 95,570
NB: Fees are exclusive of Ernst & Young's 8% administrative charge and GST.


The University and Ernst & Young has had an ongoing relationship which has resulted in cost effective and quality services. In accordance with the Purchase of Goods and Services Policy, prior to the proposal, a discussion was held with individuals using the services of Ernst & Young to determine their satisfaction level. The conclusion was individuals continue to be satisfied with the service provided.

The University then sent a Request for Proposal to Ernst & Young asking them to respond to our objectives of maintaining fees at a reasonable level while receiving a quality audit. Other objectives included:

In response to our request, Ernst & Young:

After evaluating and discussing the proposal internally and with Ernst & Young, the conclusion is that the University supports this proposal.