The Ministry of Finance of Mongolia set two main objectives including (i) development of public sector internal audit and risk management policy documents in line with international standards, methodological guidelines, (ii) capacity building program, under the Strengthening Fiscal and Financial Stability Project in cooperation with the World Bank to enhance financial control, internal audit, and risk management functions.
Under the first objective, in the purpose of enhancing the capacity of public sector internal auditors, development of Public sector internal audit guidance (decree No. 268/2019 of the Minister of Finance) and Quality assurance guidance (decree No. 274/2019 of the Minister of Finance) as per updated international standards of internal auditing, in the purpose of introducing enterprise risk management framework consistent with ISO-31000 international standards for internal audit units through the public sector, development of Risk management policy, committee charter, regulation and manual for Ministry of Finance (decree No. 291/2019 of the Minister of Finance) were respectively accomplished.
For the second objective, in the scope of approved policy documents and guidelines, comprehensive training materials to improve public sector internal auditors' knowledge were developed and presented during the "Public sector internal auditors conference" organized on October 30, 2020, Ulaanbaatar.
. . . It has been about ten years
since internal auditing was introduced to the public sector. During this
time, we have implemented a great deal of work to localize and develop the
public sector's internal audit function and adhere to the international
standards and guidelines of internal auditing. You, as internal audit
specialists are facing with a challenge to accommodate in great demand of
continuous modification of the internal audit profession. Based on prior
achievements, the main objectives we set are to build and improve public
sector internal auditing in line with the global development tendency of
internal auditing and provide internal auditors and state financial
inspectors with recent information, knowledge, and skills, and methodologies
S.Mungunchimeg, Deputy Minister of Finance, Mongolia
Since 2014, I have been working in financial control, inspection, and internal audit, continuously developing my professional knowledge and experience. We have started the audit of Arkhangai province's health sector within
the framework of the "Public Sector Internal Audit Guidance"
introduced by the Ministry of Finance. Furthermore, we are focusing on complying with the standards and procedures of our internal assessment activity. It is good to have the opportunity to learn from a new culture and new approaches.
D.Gandolgor, Head of Financial Control and Audit Division, Arkhangai
WORLD BANK WORKING GROUP MET WITH PIU AND IMPLEMENTING ORGANIZATIONS REGARDING THE COMPLETION REPORT OF THE STRENGTHENING GOVERNANCE IN MONGOLIA PROJECT
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
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.
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
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
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
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.