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EXPRESSION OF INTEREST(EOI) APPOINTMENT OF EXTERNAL AUDITOR Financial Year Ending 30 June 2027 EOI Reference No.: PAT/EOI/FIN/2026

EXPRESSION OF INTEREST (EOI)

APPOINTMENT OF EXTERNAL AUDITOR

Financial Year Ending 30 June 2027

EOI Reference No.: PAT/EOI/FIN/2026

 

Item

Details

Procuring Entity

Ports Authority Tonga (PAT)

Date of Issue

4th November 2026

Closing Date

Friday, 4th December 2026

Closing Time

4:30 p.m. Tonga Time

INVITATION

Ports Authority Tonga (“PAT”) invites Expressions of Interest from suitably qualified, licensed, independent and experienced audit firms interested in providing external audit services for the financial year ending 30 June 2027 (FY2026/27).

The purpose of this EOI is to identify and shortlist firms that possess the professional qualifications, independence, experience, resources and organisational capacity necessary to undertake the statutory external audit of PAT. This EOI constitutes the first stage of the procurement process. Firms shortlisted through this process may subsequently be invited to participate in a formal Request for Proposal (RFP) process.

No financial or fee proposal is required at the EOI stage.

BACKGROUND

Ports Authority Tonga is a statutory authority established under the Ports Authority Act 1998 and operates as a public enterprise of the Government of Tonga. PAT is responsible for the management, operation and development of port facilities and associated services within its statutory jurisdiction. PAT is committed to maintaining high standards of financial management, accountability, transparency, corporate governance and stewardship of public assets. PAT therefore intends to appoint an appropriately qualified and independent external auditor to undertake the audit of its annual financial statements for the year ending 30 June 2027.

The appointment of the external auditor will be undertaken in accordance with the Ports Authority Act 1998, the Public Enterprises Act 2002 as amended (including section 24), and the applicable qualification requirements under section 208 of the Companies Act. The appointment is subject to the approval of the Minister responsible for Public Enterprises (“the Minister”) and any other approvals or procedural requirements imposed by applicable law. In this EOI, “the Board” means the Board of Directors of PAT.

Shortlisting under this EOI does not constitute appointment. No firm will be regarded as appointed until all required approvals have been obtained and the engagement has been formally confirmed in writing.

OBJECTIVE OF THE ENGAGEMENT

The principal objective of the engagement is to obtain an independent professional audit opinion on PAT's annual financial statements and to provide assurance to the Board, the shareholder, the Minister and other stakeholders regarding the reliability and integrity of PAT's financial reporting.

The appointed auditor will also be expected to identify significant weaknesses in financial reporting processes, internal controls and related governance arrangements encountered during the audit and provide practical recommendations for improvement.

The engagement is for the independent audit of PAT's financial statements. It does not include internal audit, performance audit or any separate compliance-audit engagement, which, if required, would be procured and engaged separately.

INDICATIVE SCOPE OF SERVICES

The detailed Terms of Reference will be provided to shortlisted firms as part of the RFP. The anticipated scope will include, but may not be limited to:

4.1 Financial Statement Audit

Conduct an independent audit of PAT's financial statements for the year ending 30 June 2027 in accordance with generally accepted auditing principles as required by the Ports Authority Act 1998 and the applicable International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB), to the extent applicable and consistent with Tongan law, and issue an independent auditor's report.

The auditor and engagement team must comply with applicable professional ethical and independence requirements, including the IESBA International Code of Ethics for Professional Accountants, and must maintain an appropriate system of quality management in accordance with applicable professional requirements, including International Standards on Quality Management (ISQM 1 and, where an engagement quality review is required, ISQM 2). Compliance is required with the versions of the standards effective for the audit period, subject to Tongan law.

Without limiting the standards that apply, the standards relevant to this engagement are expected to include ISA 200, 210, 220 (Revised), 230, 240, 250, 260 (Revised), 265, 315 (Revised 2019), 330, 500, 540 (Revised), 550, 570 (Revised), 700, 705 and 706. The RFP will require the successful auditor to identify and apply all standards relevant to the engagement, including any effective amendments.

4.2 Financial Reporting Framework

Assess whether the financial statements have been prepared, in all material respects, in accordance with the financial reporting framework adopted by PAT, being International Financial Reporting Standards (IFRS).

4.3 Internal Controls

Obtain an understanding of internal controls relevant to the audit and communicate significant deficiencies in internal control, and other matters required to be communicated, identified during the audit to management and those charged with governance, in accordance with the applicable ISAs.

4.4 Legal and Regulatory Compliance

Consider, to the extent required for the financial statement audit, compliance with applicable laws, regulations, policies and other requirements relevant to PAT's financial reporting. Relevant matters of non-compliance identified during the audit are to be communicated in accordance with the applicable ISAs.

4.5 Management Letter

Prepare a comprehensive Management Letter setting out significant audit findings, internal control weaknesses, financial reporting issues and recommendations for corrective action and improvement. The Management Letter should, where appropriate:

  • classify findings according to their level of significance or risk;
  • identify the underlying issue and associated risk;
  • provide practical recommendations;
  • incorporate management responses; and
  • provide an appropriate mechanism for following up significant prior-year audit findings.

4.6 Governance Communication

Communicate significant audit findings and other matters arising from the audit to management and those charged with governance in a timely manner, and present them to the Board and/or relevant Board Committee if requested by PAT.

4.7 Audit Deliverables

The anticipated deliverables will include:

  1. an audit strategy and audit plan, including the fieldwork schedule and reporting timetable agreed with PAT;
  2. timely communication of significant audit and accounting matters identified during the engagement to management and those charged with governance;
  3. follow-up of significant prior-year audit findings and a report on their status;
  4. draft independent auditor's report;
  5. final signed independent auditor's report;
  6. final Management Letter; and
  7. presentation of significant audit findings to the Board or relevant Board Committee, where required.

Detailed deliverables and reporting deadlines, which will be set by working back from PAT's statutory reporting deadlines, will be specified in the RFP.

The successful auditor will be required to agree with PAT a detailed audit plan, fieldwork schedule and reporting timetable immediately following appointment. The timetable must enable PAT to meet the statutory requirements for the preparation, audit and submission of its financial statements and audit report, including those of the Ports Authority Act 1998.

The audit plan is expected to include arrangements for interim audit work where appropriate, year-end fieldwork, timely identification and resolution of audit issues, submission of draft financial statements and audit reports, presentation of significant findings to the Board or relevant Board Committee, delivery of the final signed audit report and Management Letter, and submission to the Office of the Auditor General and the Minister, as applicable.

Any anticipated delay that may affect statutory reporting deadlines must be notified promptly to PAT, together with the reasons, the corrective action proposed and any approval or extension required under applicable law.

 

PROPOSED TERM OF APPOINTMENT

The initial appointment is intended to cover the audit of the financial year ending 30 June 2027.

The appointment is conditional on all required approvals, including the approval of the Minister, and on the execution of an engagement letter between PAT and the successful firm. The engagement letter will set out, among other matters, the scope of the engagement, the responsibilities of the auditor and PAT, access to records, fees, reporting requirements and termination provisions.

Any continuation, extension or subsequent appointment will be subject to applicable legislation, satisfactory performance, continued independence, PAT's procurement requirements and all necessary Board, Ministerial or other statutory approvals.

Nothing in this EOI creates an entitlement or expectation of renewal.

 

ELIGIBILITY AND MANDATORY REQUIREMENTS

EOIs may be submitted by suitably qualified firms established in Tonga or overseas. To be eligible for consideration, a firm must demonstrate that it: Firms established outside Tonga are subject to the same requirements and must also describe their local delivery arrangements, including how fieldwork in Tonga, access to PAT's records and personnel, and the availability of the Engagement Partner in Tonga will be managed.

6.1 Professional Standing and Statutory Qualification

Is qualified to act as auditor of PAT under section 208 of the Companies Act, as required by section 24(1) of the Public Enterprises Act 2002 (as amended), and holds all other licences, registrations, practising certificates and professional authorisations required to perform the proposed audit under applicable law.

6.2 Professional Membership

Is registered with, or appropriately recognised by, a reputable professional accounting and auditing body.

6.3 Relevant Experience

Has demonstrated experience during the preceding five years in auditing one or more of the following:

  • state-owned or public enterprises;
  • statutory authorities;
  • public sector entities;
  • infrastructure, transport, maritime or port organisations; or
  • corporations of comparable size and complexity.

6.4 Technical Capability

Demonstrates appropriate knowledge and experience in:

  • International Standards on Auditing and International Standards on Quality Management;
  • International Financial Reporting Standards;
  • audit of significant property, plant and equipment and infrastructure assets;
  • revenue and receivables;
  • procurement and expenditure controls;
  • information technology systems relevant to financial reporting; and
  • governance and internal control environments.

6.5 Independence

Is independent of PAT and is able to comply with all applicable professional ethical and independence requirements throughout the engagement, and has documented an assessment of its independence in relation to PAT, including that of its network firms and the proposed engagement team.

6.6 Conflicts of Interest

Discloses all actual, potential or perceived conflicts of interest, including any current or recent professional, consulting, advisory, taxation, accounting, internal audit or other services provided to PAT by the firm, its network firms or any proposed engagement team member, including any non-audit services and any previous involvement in preparing PAT's financial statements or designing its financial-reporting controls.

6.7 Capacity

Has sufficient qualified personnel and resources available to complete the audit within PAT's required statutory reporting timetable.

6.8 Professional Indemnity Insurance

Maintains professional indemnity insurance appropriate to the nature and scale of the engagement.

6.9 Quality Management

Maintains a system of quality management in accordance with ISQM 1 and applicable professional requirements, and can confirm the arrangements for engagement quality review of this engagement.

7. EOI SUBMISSION REQUIREMENTS

Interested firms must provide a concise EOI containing the following information: Information should be presented in the order and format below, using the headings A to I, so that submissions can be assessed consistently.

Firm Information

  • Legal name, registered address and contact details.
  • Year established.
  • Ownership and organisational structure.
  • Details of the firm's office or representation in Tonga, if applicable.
  • Number and categories of professional audit staff available.

Professional Registration

  • Copies of relevant practising licences, registrations and professional certificates, together with evidence of qualification to act as auditor of PAT under section 208 of the Companies Act.
  • Details of membership or registration with recognised professional accounting bodies.

Relevant Experience

  • Details of significant comparable external audit assignments completed within the past five years.

For each assignment, respondents should identify:

  • client or type of organisation;
  • nature and scope of work;
  • financial years audited;
  • approximate scale or complexity of the assignment;
  • the role of the proposed Engagement Partner in the assignment; and
  • relevance of the assignment to PAT.

Proposed Audit Team

Details of the proposed:

  • Engagement Partner;
  • Audit Manager;
  • Audit Senior(s); and
  • specialist personnel, where applicable

The EOI should identify each person's:

  • professional qualifications;
  • relevant experience, including partner-level experience in comparable assignments;
  • proposed role; and
  • indicative availability for the engagement.

Brief CVs may be attached.

  1. References
  2. Contact details for at least two recent clients for whom the firm has undertaken assignments of a similar nature and scale.

PAT reserves the right to contact referees and to undertake appropriate due diligence. References should be provided in a consistent format showing the client name, the nature and period of the assignment, and the name, position and contact details of the referee.

Independence and Conflict Declaration

A signed declaration confirming:

  • the firm's independence from PAT;
  • whether the firm, its network firms or any proposed engagement team member has any actual, potential or perceived conflict of interest;
  • details of any other services, including non-audit services, currently or recently provided to PAT by the firm, its network firms or proposed engagement team members;
  • any previous involvement in preparing PAT's financial statements or designing its financial-reporting controls, and any financial, business, employment or personal relationship that could affect independence;
  • the safeguards proposed to eliminate, or reduce to an acceptable level, any identified threats to independence, including threats of self-review, advocacy, familiarity or management participation; and
  • the firm's ability to maintain independence throughout the engagement.

Quality Management

  1. A brief description of the firm's audit quality management arrangements, including relevant internal or external quality reviews, and the arrangements proposed for engagement quality review of this engagement.

Insurance

  1. Evidence of current professional indemnity insurance, or confirmation of the level and nature of cover maintained.

Capacity and Availability

  1. Confirmation that the firm has sufficient resources and availability to complete the engagement within PAT's required timetable.

NO FINANCIAL PROPOSAL AT EOI STAGE

Respondents must not submit an audit fee or financial proposal as part of this EOI. Commercial and financial proposals will be requested only from firms shortlisted and invited to participate in the subsequent RFP process. Any financial information inadvertently submitted at the EOI stage may be disregarded for evaluation purposes.

SUBMISSION INSTRUCTIONS

Respondents may submit their EOI either in hard copy (section 9.1) or electronically (section 9.2). Submission by one method is sufficient. A respondent that submits by both methods must clearly state that the submissions are duplicates of the same EOI.

9.1 Hard Copy Submission

Hard-copy EOIs must be enclosed in a sealed envelope clearly marked:

CONFIDENTIAL

EXPRESSION OF INTEREST
EXTERNAL AUDIT SERVICES FY2026/27
EOI REF: PAT/EOI/FIN/2026

and addressed to:

The Chief Executive Officer
Ports Authority Tonga
Queen Salote Wharf
Nukuʻalofa
Kingdom of Tonga

 

The outside of the envelope should not contain information identifying the respondent other than where required for delivery purposes.

9.2 Electronic Submission

Electronic EOIs must be submitted to: This email address is being protected from spambots. You need JavaScript enabled to view it. with the email subject:

“EOI – External Audit Services FY2026/27 – PAT/EOI/FIN/2026”. Electronic submissions should be in PDF format and should not exceed 10 MB in total unless otherwise agreed with PAT before the closing date. PAT will endeavour to acknowledge electronic submissions within one working day. Respondents who do not receive an acknowledgement should contact the Chief Financial Officer before the closing time to confirm receipt.

9.3 Closing Date and Time

EOIs must be received no later than: 4:30 p.m. Tonga Time Friday 4th December 2026. For electronic submissions, the time of receipt will be the time recorded by PAT's email system. Respondents are responsible for ensuring their submission is received before the deadline. Late submissions may be rejected and will only be considered where permitted under PAT's applicable procurement rules. PAT will keep a record of the date and time of receipt of every EOI received.

9.4 Language

All EOIs and supporting documentation must be submitted in English.

9.5 CLARIFICATIONS

All requests for clarification concerning this EOI must be submitted in writing to:

Chief Financial Officer
Ports Authority Tonga
Telephone: +676 23168 ext. 227

Mobile Number: +6768447008
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Questions must be received no later than: Monday, 30 November 2026. PAT may issue responses, clarifications or amendments to all firms that have formally registered their interest or otherwise obtained the EOI through the recognised process where the information is material to the preparation of EOIs.

Any response to a clarification request, and any addition or amendment to this EOI, will be issued in writing at the same time to all firms that have registered their interest or otherwise obtained the EOI through the recognised process, without identifying the firm that raised the question. PAT will keep a record of all clarification requests, responses and addenda issued, and will treat all respondents equally. Where an addendum is issued close to the closing date, PAT may extend the closing date and will notify all affected respondents in writing.

Respondents must not seek to obtain information concerning this procurement from PAT directors, employees or representatives other than through the nominated contact person.

 

EVALUATION PROCESS

Evaluation will be undertaken in two stages.

Stage 1 – Mandatory Compliance.

Each EOI will first be assessed on a pass or fail basis against the mandatory eligibility and submission requirements. The following requirements are mandatory:

  • appropriate professional licence and registration;
  • required professional standing, including qualification under section 208 of the Companies Act;
  • signed independence and conflict-of-interest declaration;
  • evidence or confirmation of professional indemnity insurance;
  • sufficient relevant audit experience;
  • capacity to undertake the engagement; and
  • submission by the required closing date and time, subject to applicable procurement rules.

PAT may exclude an EOI from further consideration where a mandatory requirement has not been satisfied. PAT may seek clarification of information contained in an EOI where permitted under its procurement procedures, provided that such clarification does not result in an unfair material alteration of the original submission.

Stage 2 – Comparative Evaluation

EOIs satisfying the mandatory requirements will be evaluated using the following criteria:

Evaluation Criterion

Weighting

Relevant organisational experience, including public enterprises, statutory authorities and comparable infrastructure or port organisations

35%

Qualifications and relevant experience of the Engagement Partner and proposed audit team

30%

Organisational capacity, resources and ability to meet PAT's statutory audit timetable

20%

Audit quality management arrangements and understanding of the engagement's nature and complexity

15%

TOTAL

100%

 

PAT may verify any information contained in an EOI, contact nominated referees and undertake appropriate due diligence before determining the shortlist.

Scoring. Each criterion will be scored from 0 to 5 against the evidence provided in the EOI, using the definitions below, and the score will be weighted according to the table above:

  • 5 – Excellent: fully meets the criterion, with strong and well-evidenced relevance to PAT's audit;
  • 4 – Good: meets the criterion with minor gaps and sound evidence;
  • 3 – Satisfactory: generally meets the criterion, with some gaps or limited evidence;
  • 2 – Weak: partially meets the criterion, with significant gaps or weak evidence;
  • 1 – Poor: barely addresses the criterion or provides minimal evidence; and
  • 0 – No response, or no evidence to substantiate the criterion.

Evidence. Scores will be awarded only on the basis of the information requested in section 7. Experience will be assessed on the comparable assignments and references provided (sections 7C and 7E); the audit team on the qualifications, experience and availability information provided (section 7D); capacity on the staffing and availability information provided (sections 7A and 7I); and audit quality management on the description and evidence provided (section 7G). Understanding of the engagement will be assessed from the EOI as a whole.

Shortlisting. Firms satisfying the mandatory requirements will be ranked by total weighted score. [PAT to confirm and insert here whether a minimum overall score is required for shortlisting. Any minimum score must be approved and disclosed before this EOI is issued.]

Evaluation record. Evaluators will declare any conflict of interest before evaluation begins, and any declared conflict will be managed by PAT. All scores and the reasons for decisions will be documented. Clarification requests will not be used to give any respondent an unfair opportunity to materially improve its submission.

SHORTLISTING AND REQUEST FOR PROPOSAL

Following evaluation of the EOIs, PAT intends to shortlist the firms considered best qualified to undertake the assignment. Shortlisted firms may be invited to submit a detailed technical and financial proposal through a formal RFP process.

The RFP is expected to include, among other matters:

  • detailed Terms of Reference;
  • audit timetable and milestone schedule, worked back from PAT's statutory reporting deadlines;
  • arrangements for review of the audited accounts by the Auditor General;
  • required audit methodology and work plan;
  • proposed staffing requirements;
  • detailed financial proposal;
  • contractual requirements;
  • confidentiality requirements;
  • independence requirements;
  • disclosure of the firm's current and recent audit tenure with PAT, the tenure of the proposed Engagement Partner, and the proposed approach to engagement quality review;
  • evaluation methodology; and
  • proposed form of engagement letter.

The RFP will also require respondents to demonstrate an appropriate risk-based audit approach to areas of particular relevance to PAT, including: property, plant and equipment, port infrastructure, depreciation and impairment; capital projects, construction costs and assets commissioned during the year; port revenue, receivables, cut-off and completeness; procurement, operating expenditure, provisions and commitments; financial instruments, expected credit losses and related-party transactions; information technology systems and controls relevant to financial reporting; and going concern, subsequent events and material uncertainties. These are risk-based audit areas and are not a direction as to the audit opinion to be issued.

Shortlisting under this EOI does not constitute or guarantee appointment. Evaluation of RFP responses will result in a recommendation to the Board. The appointment of the external auditor remains subject to PAT's procurement and governance requirements, the approval of the Minister under section 24 of the Public Enterprises Act 2002 (as amended), execution of an engagement letter, and all other approvals required by applicable legislation.

 

INDEPENDENCE AND CONFLICT OF INTEREST

Independence is fundamental to this engagement. Respondents must immediately disclose any circumstance that may give rise to an actual, potential or perceived conflict of interest. The successful firm will be required to maintain its independence throughout the engagement and notify PAT immediately of any circumstance that may affect, or reasonably be perceived to affect, its independence. PAT reserves the right to exclude a firm where an actual, potential or perceived conflict cannot be appropriately managed. Respondents must make the disclosures required by section 7F, including network-firm relationships, relevant non-audit services, any previous involvement in preparing PAT's financial statements or designing its financial-reporting controls, and the safeguards proposed to address any identified threats to independence. PAT will assess the actual independence risks presented by each respondent, together with any rotation requirement under applicable law, professional rules or an approved PAT policy; this EOI does not impose any additional mandatory firm-rotation period.

 

CONFIDENTIALITY

Respondents must treat all information obtained in connection with this EOI as confidential and must not disclose such information except:

  • for the purpose of preparing the EOI;
  • to professional advisers who are subject to equivalent confidentiality obligations; or
  • where disclosure is required by law.

PAT will handle information submitted by respondents in accordance with applicable legal requirements and its internal governance and procurement procedures. Respondents should clearly identify any information in their EOI that they consider commercially sensitive or confidential. Nothing in this section restricts any disclosure required by law, including disclosure to the Auditor General, the Minister or any other authority entitled to the information, and PAT's handling of information is subject to such requirements.

 

PROBITY AND ETHICAL CONDUCT

Respondents and their representatives must conduct themselves ethically and professionally throughout the procurement process. Any attempt to improperly influence the evaluation process, obtain confidential evaluation information, offer an inducement, or engage in collusive, fraudulent, corrupt or other improper conduct may result in exclusion from the procurement process and any other action available to PAT under applicable law or policy.

 

PAT'S RIGHTS

To the extent permitted by applicable law and PAT's procurement requirements, PAT reserves the right to:

  • amend, suspend, cancel or terminate the EOI process;
  • request clarification or verification of information submitted;
  • verify qualifications, experience, licences and references;
  • reject an incomplete or non-compliant EOI;
  • shortlist any number of respondents;
  • decide not to shortlist any respondent;
  • invite shortlisted firms to an RFP;
  • discontinue the procurement without making an appointment; and
  • undertake such due diligence as PAT considers reasonably necessary.

PAT is not bound to accept any EOI or subsequently appoint any respondent. Nothing in this EOI creates a contract, promise, representation or obligation by PAT to appoint a respondent.

 

COSTS OF PARTICIPATION

All costs and expenses incurred by a respondent in preparing, submitting or clarifying an EOI, participating in the subsequent procurement process or undertaking due diligence are the sole responsibility of the respondent. PAT will not reimburse respondents for any such costs.

 

NO CANVASSING

Respondents must not canvass or seek to improperly influence any PAT director, officer, employee, adviser or other person involved in the procurement process. All communications concerning this EOI must be directed through the nominated contact person. A breach of this requirement may result in disqualification.

 

DISCLAIMER

This EOI is issued solely for the purpose of identifying suitably qualified firms that may be invited to participate in the next stage of the procurement process. It does not constitute an offer or contractual commitment by PAT. No legal relationship will arise between PAT and any respondent merely because the respondent submits an EOI or is shortlisted.

 

GOVERNING REQUIREMENTS

This procurement and any subsequent appointment will be undertaken in accordance with:

  • the Ports Authority Act 1998 and other legislation applicable to PAT;
  • the Public Enterprises Act 2002, as amended, including section 24;
  • section 208 of the Companies Act, as to the qualification of auditors;
  • the Public Audit Act, including the role of the Auditor General in reviewing and approving the audited accounts of public enterprises audited by private firms;
  • PAT's Procurement Policy and approved procurement procedures, and any applicable public procurement regulations;
  • applicable professional auditing, ethical and quality management standards, including the International Standards on Auditing and International Standards on Quality Management issued by the IAASB and the IESBA International Code of Ethics for Professional Accountants; and
  • any other applicable law, regulation, Government requirement or statutory approval.

Under section 9(2) of the Public Audit Act, the Auditor General may review and approve the audited accounts of public enterprises audited by private firms, and provision is made for an independent audit in specified circumstances if the private audit report is rejected. The successful auditor will be required to co-operate with the Office of the Auditor General, and the audit timetable and deliverables must allow for that process. The applicable submission process, documentation and timetable will be set out in the RFP.

Where any provision of this EOI is inconsistent with a mandatory requirement of applicable law, the applicable law will prevail.

 

ISSUE OF EOI

This Expression of Interest is issued by Ports Authority Tonga on 4th November 2026.

 

End.