Procurement Notice 

External Audit Services for FY2025–27

The purpose of this Request for Proposals (RFP) is to invite qualified independent audit firms to submit proposals for auditing the Asian Productivity Organization’s (APO’s) financial statements prepared in accordance with International Financial Reporting Standards (IFRS) for the fiscal years ending 31 December 2025, 2026, and 2027. Annual audit fees are subject to approval of the APO Governing Body. The APO Annual Reports including the annual financial statements and independent auditor’s report for the years prior to 2024 are available on the APO website at https://www.apo-tokyo.org/annual_reports/.

The APO is an intergovernmental organization established in 1961 with the mission of contributing to the socioeconomic development of the Asia-Pacific region through productivity promotion. The APO Secretariat is located in Tokyo, Japan. Onsite and remote audits may be combined to complete the audit for each fiscal year. A fully remote audit will not be accepted.

All information and data provided by the APO Secretariat to applicant vendors and all other documents to which vendors’ employees have access during the preparation and submission of proposals shall be treated as confidential. Any oral or written disclosure to unauthorized individuals is prohibited

The independent external auditor shall be a public accounting firm employing certified public accountants and other employees qualified to perform an audit of financial statements prepared in accordance with the IFRS and must have proven experience in financial audits of nonprofit public entities, such as governmental/nongovernmental organizations, intergovernmental, and/or international organizations. The auditor will conduct the audit in accordance with the International Standards on Auditing (ISA), prepare management letters, and issue an independent audit report.

In addition to the above, the auditor should possess the following qualifications:

1. Ability to provide audit services in business-level English and Japanese, performing audit procedures on financial information in English and/or Japanese.

2. Knowledge of financial systems in Japan.

3. Experience in supporting public entities to improve internal controls.

4. Highly skilled in executing professional communications on the audit as necessary with the Secretary-General of the APO and selected staff members.

5. Facilitate effective communication with client employees for purposes of the audit.

6. Experience in financial audits at entities using SAP.

7. Capability to sustain audit service delivery over multiple years.

8. Able to accommodate audit entry and audit exit meetings with the Secretary-General of the APO and selected staff members.

9. Ability to complete and issue an audit opinion by mid-March of the year after the end of each fiscal year (the APO’s annual financial statements must be submitted to its Governing Body at least 60 days before its annual meeting, which is normally held between May and June).

10. Online attendance at a Governing Body Meeting if requested by the APO Secretariat.

1. Language of the proposal and other documents

The proposals prepared by applicants and all correspondence and documents relating to the proposals exchanged between the firm and the APO Secretariat shall be in English.

2. Cost of proposals

Applicants are responsible for all costs incurred in the preparation and submission of their proposals. This includes costs related to discussions with the APO Secretariat, presentations, contract negotiations, and related travel. The APO Secretariat will not be responsible for these costs, regardless of the selection process outcome.

3. Proposal content

Proposals should contain the following:

1) Profile of the firm

a. Size of the firm, organizational structure, and list of audit clients.

b. Professional qualifications and standards of the quality for audit.

c. Expertise and experience in IFRS.

2) Names and biographies of the lead auditor and audit team members, including:

a. Professional qualifications, as well as any specialized skills and training.

b. Proficiency levels in both English and Japanese languages.

c. Prior experience in auditing similar organizations and programs.

3) Audit approach and plan

A description of the audit approach and work plans to ensure adequate auditing coverage of the APO’s annual accounts and financial statements, including consideration for the appropriateness of the organization’s financial procedures, accounting system, and internal controls.

4) Financial proposal

a. Audit fee in Japanese yen or US dollars, stating the amounts for each fiscal year.

b. A breakdown of the fee should be included (e.g., professional fees, travel costs, etc.). Travel costs should include all travel-related expenses, including transportation costs from the auditor’s office to the APO Secretariat office in Tokyo. Out-of-pocket expenses should be indicated and how these are calculated.

c. An estimate of the total time, in hours by category of staff, that will be required to perform the audit annually and over the term of appointment. Justifications for the proposed fee, including linkages to the working hours and audit approach, should be explained. Circumstances in which additional fees may be required, if applicable, should be clearly specified.

d. Description of billing rates and procedures for technical questions that may come up during the year, or whether these occasional services are covered in the proposed fee structure.

Proposals signed by authorized representatives must be submitted via email no later than the deadline of 17:30 (Japan Standard Time), 27 November, 2024 to the APO Secretariat.

The subject line of the email message should be: Proposal for Audit FY2025–27 [Name of Audit Firm].

The selected firm will be awarded a contract with the APO to conduct the audit based on the following selection criteria:

a. Technical Qualifications

1) Proven experience in the field: Demonstrated expertise in performing audits in similar organizations.

2) Relevant qualifications: Official recognition or certification relevant to performing the audit.

b. Additional Qualifications

1) Ability to manage and execute audits effectively in a multicultural environment.

2) Availability of sufficient, appropriate audit resources.

3) Proficiency in English and Japanese.

4) Flexibility and responsiveness to client communications.

5) Reputational standing in the audit industry.

The selected applicant will be informed by the Secretariat via e-mail.

The APO reserves the right to annul the RFP or the selection process, or to accept or reject any or all proposals in whole or part at any time, without stating any reason and without incurring any liability to the affected applicants.

The APO is not obligated to respond to any objections or to inform the affected agencies/companies/firms of the grounds for such decisions.

The APO will not bear any costs related to research, planning, design, or any other such activity related to the preparation of proposals in response to this RFP by applicants for sending proposals to the APO.

The APO may, at its own discretion, extend the submission deadline by notifying all applicants of the extension in writing. Any proposal received after the deadline will be rejected.

Applicants requiring any clarification of the document or the process itself should submit queries in writing only to the following email address by the deadline of 27 November 2024.

Asian Productivity Organization (APO Secretariat)
1-24-1 Hongo, Bunkyo, Tokyo 113-0033, Japan
Email: finance@apo-tokyo.org

Research on Raising Informal-sector Productivity (Extended)

Study the effects of the informal sector on productivity in APO member economies, identify trends in and determinants of informal-sector productivity and impacts on national economies, and examine policy interventions to manage the informal sector to improve productivity growth and achieve better socioeconomic outcomes.

For more details, PN and Implementation Procedures.

Informal-sector employment shares range from over 80% in some developing APO members, including numerous women, to 26% in the ROK (ILO data). Informal-sector enterprises suffer from low economies of scale and lack of access to finance, undermining their productivity. Countries with larger informal sectors fare less well in inclusive development with lower productivity, fiscal resources, financial deepening, capital accumulation, institutional quality, empowerment of women, and social security coverage. However, informal sectors encourage entrepreneurship and digital technology use, providing secondary jobs in times of high inflation.

While the APO publication “Issues and Challenges on the Productivity Performance of the Informal Sector in Selected APO Members” (2023) provides descriptive case studies of informal sectors in developing members, the objective of this research is integrated multicountry analysis to test, measure, and provide insights on inclusive growth.

· Cover letter of interest (Annex 1)

· Basic organizational details (Annex 2)

· Profile of institution (maximum 1 A4-sized page)

· Experience in conducting research in similar areas (Annex 3)

· Financial proposal to indicate the cost of services.

· Total costs and breakdowns for conducting the research should be given only in US dollar amounts.

· All national taxes and levies applicable should be stated and included in the total costs. The APO will consider the inclusive costs as the final quoted prices when evaluating proposals.

· All rates and costs quoted in financial proposals should be written in both numeric and alphabetic forms, e.g., USD2,500 (two thousand five hundred US dollars).

Download: Annexes.

Proposals with all required information specified should only be sent via email in password-protected PDF file attachments signed by authorized representatives no later than 16:00 (Japan Standard Time),  22 November 2024 to ssetiawati@apo-tokyo.org and asato@apo-tokyo.org.

The subject line of the email message should be: Proposal for Conducting Research on Raising Informal-sector Productivity <Institution name>.

· The selected institution will be awarded a research contract with the APO for conducting the research, based on the following selection criteria:

· Methodology of research

· Prior experience in conducting similar research

· Quality of prior publications

· Research quotation

· Only the selected institution will be notified via email within 1 month of the submission deadline of the acceptance of its proposal.

· The APO reserves the right to annul the RFP or the vendor selection process, or to accept or reject any or all proposals in whole or part, at any time, without stating any reason and without incurring any liability to the affected institution.

· The APO is not obligated to respond to any objections or to inform the affected institution of the grounds for such decisions.

· The APO also reserves the right to change the scope of work in case of need or depending upon changes in requirements before or during the implementation phase. However, if changes are made during the implementation phase, the APO will negotiate the costs for the additional work separately with the institution.

· The APO will not bear any costs related to research, planning, design, or any other such activity related to the preparation of proposals in response to this RFP by institutions for sending proposals to the APO.

· The APO may, at its own discretion, extend the submission deadline by notifying all bidders of the extension in writing. Any proposal received after the deadline will be rejected.

A prospective institution requiring any clarification of this document, or the process itself, should submit its queries in writing only to the following email address by the deadline of 22 November 2024:

Multicountry Program Division 2
Asian Productivity Organization (APO Secretariat)
1-24-1 Hongo, Bunkyo, Tokyo 113-0033, Japan
Email: ssetiawati@apo-tokyo.org, asato@apo-tokyo.org