Recruitment of an External Auditor for the Pan African Postal Union (PAPU)

Terms of Reference

I. Background

The Pan African Postal Union (PAPU), a specialized agency of the African Union, is responsible for fostering postal cooperation and development in Africa. It has a membership of forty-five (45) states with its headquarters in Arusha, United Republic of Tanzania. PAPU is seeking to engage a suitably qualified and experienced external auditor to audit its financial statements for the financial year 2024/2025, renewable annually pursuant to its principles of good governance and transparency.

II. Audit Scope

The audit shall be conducted in accordance with the International Public Sector Accounting Standards (IPSAS) and the PAPU Financial Regulations. It shall entail auditing the PAPU Financial Statements for the period from 1st June 2024 to 31st May 2025. The prime objective is for the auditor to give a fair and independent opinion on all accounting transactions carried out during the audited period. These shall include:

• Income statement
• Statement of financial position
• Statement of cash flows
• Statement of changes in equity
• Bank reconciliation statements
• Cash books
• Ledgers
• PAPU staff pension fund

III. Objectives

Auditing the PAPU Financial Statements shall serve an overall objective and specific objectives.

III.1 Overall Objective

The objective of the audit is to enable the auditor, in accordance with the International Public Sector Accounting Standards (IPSAS) and the financial regulations of the PAPU, to express an independent professional opinion on the Union’s financial statements for the 2024/2025 financial year, which would have ended on 31st May 2025.

III.2 Specific Objectives

More specifically, the audit shall seek to inter alia:

• Ensure that the resources allocated to PAPU are used for the intended purposes, with a view to achieving the outlined objectives, and also used in accordance with the Union’s procedures.
• Ensure that income and expenditure, as well as services, goods, or works acquired, are actual and lawful.
• Ensure that accounting transactions are properly recorded in accordance with accounting principles.
• Ensure that the financial statements are presented accurately.
• Verify that all expenses have supporting documents and assess the financial, accounting, and organizational risks.
• Make relevant comments on the effectiveness of procedures, the accounting system, internal financial controls, and the overall administration and management of the Union.

IV. Audit Period and Duration

The audit of the PAPU financial statements for the financial year 2024/2025 must be carried out over a period of seven working days between the months of August and November of every year.

V. Deliverables

The expected deliverables shall be separate audit reports on the following:

• The PAPU financial statements.
• The PAPU pension fund.

Each of the audit reports shall specify inter alia:

• The audit standards applied.
• The methodology.
• Clearly specified objectives and scope of the audit.
• A summary of the main findings of the audit (comments and recommendations if any).
• An independent opinion on the financial statements for the audited period, specifying:
  • Whether they present fairly the financial position as at the end of the financial year and the result of operations.
  • Whether the statements were prepared in accordance with IPSAS.
  • Whether the accounting principles were applied consistently with the preceding financial year.
  • Whether the transactions were in accordance with the financial regulations.
• An assessment of the Union’s internal control system.
• Challenges encountered (if any).
• Observations and recommendations contained in the management letter addressed to the Secretary General.

The interim reports shall be presented during an exit briefing session between the auditor and the management of the PAPU General Secretariat. The final report shall reflect any comments and amendments made to the interim report. The financial statements and the auditors’ reports countersigned by the Secretary General shall be submitted to the Administrative Council for approval via its Chairperson. The PAPU Secretary General shall be presented with five copies of each report and the management letter.

VI. Other Obligations of the Auditor

In addition to the obligations to audit the financial statements, the auditor shall also attend the deliberations of the PAPU Finance and Administration Committee to be held during the 43rd Ordinary Session of the Administrative Council. The auditor must also present the final report to the Administrative Council Plenary during its 44th Ordinary Session to be held in 2026. Furthermore, the auditor is required to treat as privileged and confidential all classified information provided for the purposes of the audit and may not use it for any purposes not directly related to the audit exercise.

VII. Obligations of PAPU

PAPU shall designate a focal point and provide the auditor with the following:

• Working space within the PAPU General Secretariat for the period of the audit assignment.
• All documents and/or information deemed necessary for the smooth conduct of the audit.
• Notify the exact meeting dates for the Finance and Administration Committee and the Administrative Council Plenary.
• Provide transport ticket to the venue of the PAPU Administrative Council meeting and pay per diem for the number of nights spent by the representative of the auditor in line with AU rates for the host city.

VIII. Key Personnel

The key personnel for the audit assignment must include at least:

• An audit director with a postgraduate certificate (five years’ higher education) in auditing and at least ten (10) years’ experience in auditing international organizations plus Fellowship of a recognized institute.
• An engagement manager with at least a postgraduate certificate (five years’ higher education) in auditing and accounting or equivalent, plus at least Associate Membership of a Professional Institute, and at least seven (7) years’ experience in financial auditing.
• An audit senior with a graduate certificate (four years higher education) and five (5) years’ experience in financial auditing.
• An assistant auditor with at least a graduate certificate (four years’ higher education) and at least three (3) years’ experience in financial auditing.

IX. Required Experience

The audit firm must:

• Be an independent audit and accounting firm, duly registered with a nationally and/or internationally recognized association of Chartered/Certified Accountants.
• Be qualified to conduct audits in accordance with the requirements of the International Public Sector Accounting Standards (IPSAS).
• Have carried out at least three (3) financial audit assignments in international organizations.

X. Bids Assessment

This shall be a two-step process, and only technically compliant bids shall be financially assessed. Only an eligible bidder offering the best “value for money” shall be selected to carry out the audit of the PAPU financial statements.

XI. Interpersonal Skills and Language Proficiency

The bidder must be proficient in at least one of PAPU’s current working languages, namely English and French. The audit firm’s auditors must also demonstrate thoroughness, integrity, a high sense of ethics and objectivity. Its auditors must be able to work in a multicultural environment and interact with persons from various backgrounds.

XII. Bidding Documents

The bidding documents, which must be written in English and/or French, shall contain both a technical proposal and a financial proposal (enclosed separately).

XII.1 Technical Proposal

The technical proposal must not contain any financial information. The technical proposal shall include the firm’s organization chart, a description of its previous experience in auditing international organizations (certificates of satisfactory completion, certificate of registration with the Institute of Chartered/Certified Accountants), a description of the proposed methodology and work plan for carrying out the assignment, and a list of key personnel with their duly signed curriculum vitae (CVs).

XII.2 Financial Proposal

The financial proposal must cover the audit services, performance of all activities and presentation of audit reports, the purchase of consumables, travel and subsistence expenses, and the printing of the five (5) booklets of the final report that shall be submitted to the PAPU Administrative Council.

XIII. Deadline

Only expressions of interest received at the PAPU General Secretariat not later than 17:30 hours (EAT) on 31st March 2025 shall be considered. The technical proposal and the financial proposal should be enclosed in separate sealed envelopes. Both envelopes should be enclosed in a larger envelope bearing the firm’s address, contact phone numbers, email, and fax number (if any) at the back of the envelope which should be addressed to:

The Secretary General
Pan African Postal Union (PAPU)
13th Floor, PAPU Tower, Sekei
P.O. Box 6026 – Arusha 23190
United Republic of Tanzania

For any queries on this advertisement, please contact: Mr. Yonna Singogo (+255787079832)

For further information regarding our organization and external auditing requirements, please visit the following website:

Dr. Sifundo Chief Moyo
Secretary General, PAPU

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