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.

One of the challenges that must be resolved for transitioning to full accrual based accounting and financial reporting in accordance with the International Public Sector Accounting Standards (IPSAS) and International Financial Reporting Standards (IFRS) is the development of the legal environment that enables assets to be measured and reported at fair and reasonable value in accordance with the requirements of the IPSAS and IFRS.

Therefore, as part of the Strengthening Fiscal and Financial Stability project, a consulting team of the Accounting Policy Department has been developing draft regulations and methodologies as below in accordance with the IFRS and International Valuation Standards (IVS) to ensure the implementation of the latest amendment of the Law on Valuation.

  1. Regulation and methodology on valuation for financial reporting purposes;
  2. Regulation, methodology and approach on carrying out valuation quality control of valuation firms;
  3. Regulation for the standard fee for valuation service;
  4. Regulation and methodology on the valuation of moveable property;
  5. Regulation in organizing examination to certify appraisers;
  6. Regulation on creating and using database for valuation and ensuring information security;
  7. Methodology to calculate coefficients of the factors to be used for valuation and methodological recommendations on updating the coefficients of the factors for further improvements in accordance with the IVS;
  8. Support building capacity for the Professional Valuation Institute of Mongolia in creating a database for valuation service through i) developing a structure of the valuation database to be used in collecting data in an automated system; ii) designing a catalog template on assets’ reference prices to be used in recording assets with unknown value; and iii) formulating relevant methodological recommendations to ensure the implementation of the provision 25.1 of the latest amendment of the Law on Valuation and the IVS.

A presentation and discussion on the drafts above will be organized among the relevant stakeholders to receive their comments and suggestions for further improvements. 


NEWS
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.

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.

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