A. BACKGROUND

Mongolia received a credit from the International Development Association (IDA) for the Strengthening Fiscal and Financial Stability (SFFS) Project. The objective of the SFFS Project is to contribute to the Government of Mongolia’s efforts to strengthen fiscal and financial stability and improve the quality of expenditure. The project is designed into five components: (i) Strengthening Macroeconomic and Fiscal Management; (ii) Improving the Efficiency of Public Financial Management; (iii) Enhancing Financial Sector Stability; (iv) Strengthening the Social Protection System; and (v) Project Management and Monitoring. The objectives are to strengthen fiscal responsibility and implement relevant policy measures, improve fiscal discipline, strengthen the resiliency of the banking system, improve public expenditure quality in social protection, and provide support to Project implementation, coordination, monitoring and evaluation, including, inter alia, audit arrangements, reporting requirements, procurement and financial management activities respectively. For more details, please refer to the Project Appraisal Document Report No. PAD22691.  

Subcomponent B2 of the SFFS project aims to increase budget comprehensiveness and transparency through better control, reporting and expansion of the government’s integrated financial management information capabilities. Under the subcomponent, the Accounting Policy Department and the Treasury Department of the Ministry of Finance (MOF) have been undertaking an ambitions agenda towards improving public sector accounting and reporting.  

Good accounting and financial reporting practices, which meet the international standards, can serve as the basis for good governance and for provision of high-quality financial information to users of financial statements (government, citizens, development partners, international investors, etc.). Mongolia has been working for 20 years with the support from international donor organizations to implement effective treasury single account system and treasury operations to same as post-soviet countries.  The most recent renewal budget law to the Integrated Budget Law in 2011 clearly defined the function of treasury in nationwide.  

The Government of Mongolia has been using the FreeBalance software since 2005 as the Government’s Financial Management Information System (GFMIS) i.e. the treasury system. This system is primarily focused on enabling quick settlement of payments and producing budget execution reports. Starting from 2018, the MOF has upgraded the GFMIS to the latest web-based FreeBalance Version 7 (FB v7). Even though efforts to improve effectiveness and transparency of the treasury operations have been made, there is still the need to improve the internal control system through the GFMIS and develop an internal control system in compliance with the internationally recommended guidelines such as the COSO internal control framework. 

B. OBJECTIVE

The objective of the assignment is to assist the Treasury Department of the Ministry of Finance (TD, MOF) on improving execution for better delivery through i. reviewing and assessing the current practice of internal control of the Treasury through the GFMIS, and ii. Preparing an internal audit guideline.

C. SCOPE OF THE WORK

The consultant will undertake the tasks including, but not limited to, the following:

   1. Review and assess the current internal control system and practice within the Treasury and identify gaps between the policies/guidelines adopted by the MOF and the COSO recommended practices as well as gaps between the adopted guidance and the actual practice on the ground:

      1.1. Review the existing internal control guideline approved by the Minister of Finance and its practical application at local treasuries; 

      1.2. Assess treasury policies, IT systems, skillsets and practices of treasury officials for determining the risk level of treasury operations and compliance with the requirements of the COSO internal control framework; This assessment should cover the entire treasury system including line ministries, aimags, UB city and districts as well as soum representatives.

   2. Develop an internal control guideline draft that is in compliance with the COSO internal control framework;

      2.1. Conduct comparative research on international best practices of internal control systems of similar countries;

      2.2. Prepare a guideline on internal control of the Treasury in compliance with the COSO internal control framework;

      2.3. Design a system of internal control through the GFMIS together with the associated forms and templates for monitoring the daily operations; and 

      2.4. Develop a detailed draft work plan and checklist for implementing the internal control guideline recommended for local treasury operation;  

   3. Provide support in the approval process of the draft guideline and the associated documents and carrying out the necessary training in collaboration with the TD, MOF:

      3.1. Organize discussions and consultations on the draft documents amongst specialists in the field and other relevant stakeholders;

      3.2. Assist in promoting the approved guideline to the extent permitted under the assignment;

      3.3. Prepare training materials on the guideline for all levels of treasury (video and printed);

      3.4. Conduct training to all central treasury staff and local treasury staff who are in charge of internal control; and

      3.5. Respond to the ad hoc consultations related to the assignment carried out by the TD, MOF and perform any other tasks as reasonably assigned by the MOF.

D. DELIVERABLES:

   1. Review report on the existing internal control guideline approved by the Minister of Finance and its practical application at local treasuries;

   2. Report on findings and recommendations based on the assessment of treasury policies, IT systems, skillsets and practices of treasury officials for determining the risk level of treasury operations in compliance with the requirements of the COSO internal control framework;

   3. Comparative research report on international best practices of internal control systems in similar countries;

   4. Draft guideline on internal control that is in compliance with the COSO internal control framework;

   5. Draft design of an internal control system through the GFMIS together with the associated templates for monitoring the daily operations;

   6. Detailed work plan and checklist for implementing the guideline recommended for the local treasury operation;  

   7. Reports on support provided to the MOF regarding discussions and consultations on the draft documents amongst specialists in the field and relevant stakeholders;

   8. Training materials on the guideline for all levels of treasury (video and printed); and

   9. Reports on the training conducted;

E. CONSULTANT’S QUALIFICATIONS/ SELECTION CRITERIA

   • A suitable candidate should have a master’s degree in accounting or auditing or public administration with a bachelor’s degree in accounting; 

   • Professional qualifications such as ACCA/CPA/CIMA or similar will be an advantage;  

   • Excellent technical skills as a researcher would be an advantage; 

   • The incumbent should have at least fifteen (15) years of relevant professional experience. Working experience in auditing, quality assurance, monitoring, internal control will be required;

   • Previous experience in a similar capacity of developing policy documents and guidance on a related subject will be a plus; 

   • Proven knowledge on Internal control integrated framework issued by COSO will be required:

   • Language skills: Must have proficiency in English, as well as fluency in written and spoken Mongolian;

   • Should possess excellent interpersonal skills, and the ability to work in a group setting and a multicultural team environment, which is required to deal effectively with staff at all levels;

   • Should be able to work independently, advise others, as well as work in a team.

   • Should be able to work overtime if required.

F. SUPERVISION AND REPORTING 

   - The consultant will report directly to the Director-General of the TD, MOF and will work on a day-to-day basis with the TD officials on functional matters related to the assignment. The Director-General of the TD will meet regularly with the consultant to review progress with the work program and to resolve any outstanding issues.

   - The consultant will work closely with respective officials of central and local treasuries.

   - The TD and the PIU (SFFSP) shall evaluate the consultants’ performance on an output basis and approve invoices for the delivered outputs. 

   - The consultant will be required to carry out his/her tasks in line with the approved work plan, which will serve as a basis for measuring progress on desired outcomes and goals for the entire consultancy service.

   - The consultant will prepare monthly progress reports detailing the achievements and impediments in executing the entire work plan effectively. These progress reports will be discussed with the Director-General of the TD.

   - All monthly progress reports shall be prepared in English and other main deliverables can be prepared in Mongolian in electronic and hard copy, which shall be submitted to the TD and the PIU (SFFSP).

G. CONTRACT DURATION 

The consultancy is expected to commence in March 2020 and the total duration of the consultancy service estimated to be 7 months. 

H. INSTITUTIONAL ARRANGEMENTS

The MOF will provide an office space for the Consultant. The Consultant is expected to bring their computer equipment. During the workshop, the client will provide the venue and projectors. 

The Consultant will have access to all the necessary data/information that the MOF could provide for this assignment. All information provided to the consultant will be regarded as confidential and shall not be shared with any outside individuals or organizations.

The Client will appoint officials to monitor the contract implementation. Appointed MOF officials will be responsible for the coordination of activities under the Contract. 

If you possess the above qualifications, please submit following documents via email to procurement@sffs.mn:

    1. Cover letter indicating why she/he considers her/himself suitable for the position,

    2. Detailed CV highlighting relevant skills/experience,

    3. Copy of diplomas or certificates and,

    4. 2 reference letters from previous last two employers no later than 17:00, March 25, 2020.

The submitted documents will not be returned to the applicants. Please note that incomplete applications would not be considered for evaluation. Only selected candidates will be contacted. Candidates can be interviewed. Detailed terms of reference can be requested from procurement@sffs.mn Contact address: Attn: Ms.Bayarmaa, Procurement Specialist, Strengthening Fiscal and Financial Stability Project.

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