DRAFT OF THE MID-TERM ROADMAP TOWARD IMPLEMENTATION OF ACCRUAL BASED IPSAS AND CHART OF ACCOUNTS FOR PUBLIC SECTOR ACCOUNTING BEING DEVELOPED

11/30/2022

As part of the Strengthening Fiscal and Financial Stability project, a consulting team has been developing draft of the mid-term roadmap toward implementation of accrual based International Public Sector Accounting Standards (IPSAS), economic classification and chart of accounts for public sector accounting and reporting. 

THE MID-TERM ROADMAP TOWARD IMPLEMENTATION OF ACCRUAL BASED IPSAS FOR THE PUBLIC SECTOR ACCOUNTING

The Accounting Policy Department of the Ministry of Finance has developed a draft of the mid-term roadmap with the following 2 main groups for the smooth implementation of accrual based IPSAS in three phases in a partially manageable way for the public sector accounting.

      1. PHASES TOWARD TRANSITION TO ACCRUAL BASED ACCOUNTING

The full implementation of accrual based IPSAS is important for improving the quality of financial statements of public sector organizations, allocating organizational resources properly, ensuring transparency, and increasing accountability. A strategic plan and roadmap for the simultaneous introduction of accrual based IPSAS in Mongolia at all levels in 2022-2028 in three phases has been developed. 

      2. MANAGEMENT AND ORGANIZATION OF TRANSITION TO ACCRUAL BASED ACCOUNTING

Management and organization of the reform of the implementation of the accrual based IPSAS have been defined in the framework of four main issues: software, chart of accounts, capacity building, and project management which are relevant to all transition phases.


CHART OF ACCOUNTS

For the purpose of preparing reports of public sector organizations on an accrual basis, chart of accounts was improved and updated to fit the reporting requirements of the IPSAS and Government Financial Statistics (GFS) 2014. 

The chart of accounts to be used for budget expenditure planning, execution and reporting has been improved and updated by taking the economic classification of budget income and expenditure into account and in accordance with the chart of reference accounts of the GFS 2014 and the IPSAS. Preparation of government financial statements on the accrual basis makes it possible to prepare government financial statistics reports

Currently the drafts are in the process of discussion and consultation with MOF and other relevant stakeholders to receive their comments and suggestions. 


NEWS
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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

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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.

The State Great Hural has passed a law on Public Private Partnership at its plenary session

12/14/2022

The Ministry of Finance, in collaboration with national consultants and lawyers, introduced and prepared a draft law on Public Private Partnership as part of the technical assistance provided by the EU-funded "Strengthening Governance in Mongolia" Project implemented by the World Bank. A concept of the draft law on Public Private Partnership was approved and the draft law was submitted to the State Great Hural. A working group to draft the proposed law on Public and Private Partnership held a series of successful discussions and the State Great Hural passed the law on Public Private Partnership at its plenary session held on December 9, 2022.  The Law on Public Private Partnership is to come into effect on July 1, 2023.

The network infrastructure, equipment and systems of the Ministry of Finance have been located to a new data center

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Since moving to a new building in 2011, the Ministry of Finance has expanded its IT operations by placing servers, network and system equipment in a dedicated server room. The traditional layout of the server room, which fails to meet data center standards, has risks such as overheating, power failure, weak physical security protection, and the resulting loss of normal equipment operation. To eliminate and reduce these risks, a data center that meets the standards is essential, and the Ministry of Finance has launched a new data center that meets international standards with the support of the Asian Development Bank in 2022.

RELEVANT REGULATIONS AND METHODOLOGIES ON THE VALUATION ARE BEING DEVELOPED IN CONNECTION WITH THE LATEST APPROVAL OF THE AMENDMENT OF THE LAW ON VALUATION

12/6/2022

After the Law on Valuation was first approved in 2010, the new revision of the Law on Valuation was approved by the Parliament of Mongolia in 2022 which was an important event in accelerating the development of the sector. In connection with the latest approval of the amendment of the Law on Valuation, as a next step towards addressing legal environment-related challenges, the Accounting Policy Department of the Ministry of Finance has been working on development and improvement of the relevant regulations and methodologies on the valuation, its organization, and quality control matters for the further development of the valuation service and ensuring the implementation of the law.

DRAFT OF THE MID-TERM ROADMAP TOWARD IMPLEMENTATION OF ACCRUAL BASED IPSAS AND CHART OF ACCOUNTS FOR PUBLIC SECTOR ACCOUNTING BEING DEVELOPED

11/30/2022

As part of the Strengthening Fiscal and Financial Stability project, a consulting team has been developing draft of the mid-term roadmap toward implementation of accrual based International Public Sector Accounting Standards (IPSAS), economic classification and chart of accounts for public sector accounting and reporting. 

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