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IMPLEMENTING COMMITMENT CONTROL TO STRENGTHEN EXPENDITURE CONTROL

6/29/2022

Under the SFFS project, a project jointly implemented by the Ministry of Finance of Mongolia and the World Bank, the Treasury Department is introducing a commitment control as part of the integrated treasury system to improve the completeness and transparency of the budget. Accounting for financial commitments (hereinafter referred to as commitment control) is the process of reserving funds from the approved budget, recording the reserve, and financing expenditures from allocated funds, which consists of two stages “commitment” and “obligation”. Within the framework of implementing commitment control, the project team has completed the following which includes:

  • An in-depth research and assessment report has been developed to identify requirements for the introduction of commitment and obligation, to determine the method of implementation, to determine the process design, and to carry out the pilot phase and implementation,
  • Based on this report, activated the commitment module in the GFMIS and completed the required functional configurations in the system’s production environment to enable commitment and obligation to be recorded and reported in the GFMIS,
  • Provide electronic registration of commitments through the exchange of information between the Public Procurement System, the Public Investment System, the E-huulga system and the GFMIS, developed relevant menus and web services, and conducted detailed tests for each developed functionality.
  • Drafted commitment control regulation with detailed provisions on rights and responsibilities of stakeholders, required forms, and detailed process steps including how to create, modify, close, and evaluate commitment control in line with Resolution of Treasury operation.
  • Launched the pilot phase involving the Ministry of Nature, Environment and Tourism, the Ministry of Labor and Social Protection, and 36 affiliated budget entities to record commitments and obligations for recurrent costs and ensured system operation. 
In order to record commitments and obligations electronically, resolve the issues arisen during the pilot, and exchange feedback, a series of training and discussions were organized for selected budget entities. Within 10 months pilot period, a total of 762.7 billion MNT of commitments and 748.9 billion MNT of obligations were recorded in the GFMIS through web services, financed, and spent accordingly. During the pilot, key observed advantages were spending in accordance with the budgeted purpose, on planned time, within the budgeted amount, and without incurring arrears, additionally, based on the recorded commitments and obligations it was possible to plan the monthly and weekly financing, replaced the paper-based fund allocation process which saved time and costs. 
Moreover, between February and May of 2022, 5,486 officials from 21 aimag, the capital city, 9 districts, and 12 ministries were introduced and educated about implementing commitment control in the Mongolian public financial management.

Photo 2. During workshop session

Through the Treasury Portal System and the Public Investment System, the Treasury Department is introducing recording, verifying, monitoring, and reporting of commitments electronically for recurrent and capital expenditures to the GFMIS which extended the pilot coverage to include more budget entities. In line with the treasury’s phased digitalization plan, commitment control is planned to roll out nationwide in the second half of 2022.

NEWS
WORLD BANK WORKING GROUP MET WITH PIU AND IMPLEMENTING ORGANIZATIONS REGARDING THE COMPLETION REPORT OF THE STRENGTHENING GOVERNANCE IN MONGOLIA PROJECT

4/3/2023

Concerning the Strengthening Governance in Mongolia project, which was completed on February 28, 2023, the World Bank working group to develop the project completion report had an official meeting with Project Implementation Unit (PIU) and implementing organizations on March 30, 2023. The purpose of the working group meeting is to review the implementation of the project, the results achieved, and the fulfillment of the project indicators.

PERFORMANCE BASED FINANCING: INSPIRING NEW APPROACHES TO PUBLIC FINANCIAL MANAGEMENT IN HEALTH AND EDUCATION

3/23/2023

Performance based financing (PBF) links funds or payments to service providers to results achieved and gives them considerable autonomy in the use of these funds. The strategic approach is appealing to many individuals and organizations as it motivates them to perform better and channels resources directly to the frontlines. This in turn fosters greater accountability. Using this approach has been popular in different sectors with some promising results emerging. 
AN INTEGRATED SYSTEM FOR RESULTS-BASED MEDIUM-TERM BUDGET PLANNING: IN ACHIEVING THE GOALS OF IMPROVING BUDGET PLANNING, BUDGET EFFICIENCY AND PROGRAM OUTCOME.

3/7/2023

    Under the scope of improving public financial management, Mongolia is aiming to introduce result-oriented medium-term budgeting, transitioning from the traditional input-based budgeting. This goal is aligned with development policy of Mongolia to shift from medium-term fiscal framework (MTFF) to medium-term expenditure framework (MTEF).

The MOF is entering the new phase of PFM Reform Action Plan

2/28/2023

Within the framework of the European Union financed, World Bank managed “Strengthening Governance in Mongolia” project, the Ministry of Finance, in compliance with the “Sustainable Development Vision 2030” and the “Action Program of the Government of Mongolia for 2016-2020”, has approved and implemented the Public Financial Management (PFM) Reform Strategy and the Action Plan for 2018-2022. The overarching objective of the strategy was to improve governance and achieve effective resource allocation and efficient public service delivery. The implementation status of the PFM Action Plan is indicated as “Certain results have been achieved” at the rate of 85 percent.
LAUNCHED BETA VERSION OF THE REDEVELOPED GLASS ACCOUNT PORTAL

1/20/2023

The Ministry of Finance Mongolia has developed and successfully launched the new version of the Glass Account Portal in 2023 within the framework of the Strengthening Governance in Mongolia Project jointly implemented by the EU and the World bank.

New systems and services are added in the Intermediate service platform for fiscal and financial systems

1/11/2023

The Ministry of Finance Mongolia has developed and successfully launched the Intermediate Service Platform (ISP) in 2022 within the framework of the Strengthening Governance in Mongolia Project. The main purpose of the system is to provide a possibility of information /web services/ exchange between the independent systems of the Ministry of Finance and other organizations in a easy and flexible way. In addition, it is solving the issues of overlapping connections and development between many information systems and organizations, transferring them to a unified standard, making it has no complexity, and more secure.

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