REQUEST FOR EXPRESSION OF INTEREST
(CONSULTING SERVICES – CONSULTANT’S QUALIFICATION-based SELECTION)
Project name: STRENGTHENING FISCAL AND FINANCIAL STABILITY PROJECT
Credit No. 6084-MN; 6085-MN
Assignment title: Consulting firm to develop a guideline for compiling and disseminating Government Finance Statistics (GFS) data and assisting in the preparation of the FY2020 annual GFS report (ref no. B32/CS/011)
TERMS OF REFERENCE
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 management. The project is designed with 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; (v) Project Management and Monitoring. The objectives are to strengthen fiscal responsibility and implement the relevant policy measures; improve fiscal discipline; strengthen the resiliency of the banking system; improve public expenditure quality in social protection; and provide support for 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. PAD2269 . Subcomponent B2 of the project aims to increase budget comprehensiveness and transparency through better control, reporting and expansion of the government’s integrated financial management information capabilities.
Fiscal statistics in Mongolia are compiled largely in accordance with the Government Finance Statistics Manual (GFSM 1986) methodology while the GFS moved to accrual-based reporting with the publication of the IMF’s 2001 manual, which then introduced the current accrual-based manual in 2014. The current GFS reporting framework is an accrual financial measurement and reporting system designed to support economic analysis of the public sector. The GFS focuses on the size of the public sector; its contribution to aggregate demand, investment, and saving and provides for cross-country comparison.
In recent years, the MOF embarked on a series of initiatives to align the compilation and dissemination of GFS in accordance with the guidelines of the Government Finance Statistics Manual 2014. Despite the well intentioned legal framework in place in the country, challenges in actual compilation practices and data management prevent from providing sufficient clarity in terms of classifications, valuation and time of recording to effectively support compiling the standard GFS components, aggregates and analytical balances. The process of implementing the GFS methodology has progressed appreciably, but it is still far from producing reliable information due to the lack of a supporting structure to appropriate identify and eliminate related items as well as software limitations. This has resulted in considerable manual interventions and problems with data quality.
B. OBJECTIVE OF THE ASSIGNMENT
The objective of this assignment is to assist the Treasury Department of the Ministry of Finance (TD, MOF) in improving the compilation of government finance statistics data for operational and reporting purposes in accordance with GFS principles.
C. SCOPE OF WORK
The scope of the assignment covers review and assessment of the GFS’s current integration of Government Finance Statistics Manual 2014, development of recommendations based on the assessment findings, and provision of GFS tools, guidelines and templates. The firm will collaborate with the specialists from the MOF and deliver outputs and deliverables which are outlined below:
1) Conduct assessment on the GFS compilation practices, provide recommendations and develop an action plan a. Review and assess the current operational practices and governance structure to comply the international practices for developing countries with regards to the GFS; b. Review and assess the current compilation practices and results of the government finance statistics data of 2017-2018 for operational and reporting purposes in accordance with GFS principles; and c. Develop a comprehensive set of recommendations and an action plan for integrating government finance statistics principles across the entire MOF operations.
2) Support development of guidelines and other relevant documents necessary for integrating GFS into the MOF’s operation.
a. Draft and support introduction of guidelines and relevant documents that would assist the MOF in its efforts to align the compilation of economic and financial statistics with the guidelines of the GFSM 2014; and
b. Help explain the relationship between the GFS and internationally accepted accounting standards and assist and advise the MOF in reforming the government accounting systems.
3) Assist the MOF in further improving the compilation, and dissemination of annual GFS aligned with GFSM 2014 and IPSAS:
a. Prepare preliminary GFSM 2014-based data (2019-2020) for the public sector dataset covering a key set of entities that may pose fiscal risk, distinguishing public financial and nonfinancial corporations;
b. Report on the current consolidation practices of compiling the annual financial statements against the GFS consolidation rules of the GFSM 2014.
Based on the contracted assignments and detailed contract implementation plan approved by the client, the firm’s deliverables will be as follow:
Deliverables 1. Assessment report on the GFS compilation practices, recommendations and action plan including:
1.1 Review and assessment report on the MOF’s current practices against the international good practices for implementing GFSs;
1.2 Review report the current classification and consolidation of reciprocal transactions and stock positions in financial assets and liabilities among general government units against the GFS principles; and
1.3 Recommendations and an action plan on financing for national sustainable development and integration of government finance statistics principles across entire operations.
Deliverables 2. Compilation guide for the MOF including:
2.1 GFS compilation guideline developed that provides information on how to migrate to an accrual basis of recording and full adoption of the GFSM 2014 methodology. The manual shall be provided to government officials who are responsible for the compilation and dissemination of fiscal statistics; and
2.2 A comprehensive list of institutional units developed for use in compiling GFS for the general government sector as well as for use in other macroeconomic statistics.
Deliverables 3. A report on the assist and advice provided to the MOF on further improving the compilation, and dissemination of annual GFS aligned with international and IPSAS guidelines:
3.1 Preliminary GFSM 2014-based data (2019-2020) for the public sector dataset prepared; and
3.2 Report on the current consolidation practices of compiling the annual financial statements against the GFS consolidation rules of the GFSM 2014.
The firm will receive formal feedback and comments from the TD on each deliverable within 2 weeks after submission.
E. CONSULTANT’S QUALIFICATIONS/SELECTION CRITERIA
The desired consulting firm or company has to be a legally registered entity with more than 5 years of experience in consulting, developing, and implementing accounting and statistics policy.
The consulting firm should have and mobilize the following specialists for the assignment:
1. Head consultant (1 person)
2. Consultant (1 person)
When undertaking the assignment, the consulting firm should consider the following:
• Ensure timely fulfillment of the tasks assigned to each of the team members as well as the firm as a whole;
• Ensure coordination among individual team members;
• Combine the reports and inputs from the team members to submit the deliverables timely to the client.
The individual members (2) of the team to be engaged in the assignment should meet the following qualification requirements:
Education and Knowledge:
• Suitable candidates must have a master’s degree in accounting OR a master’s degree in business administration but with a bachelor’s degree in accounting is a must;
• Professional qualifications such as ACCA/CPA/CIMA or similar will be required;
• Proven knowledge of the International Public Sector Accounting Standards (IPSAS) and the International Financial Reporting Standards (IFRS);
• Excellent technical skills as a lecturer and a researcher would be an advantage;
• Proven knowledge of GFS principles will be desirable;
• Incumbent should have at least 6 years of working experience in the finance and statistics/accounting field;
• Previous experience in a working on fiscal reporting documents and other policy and methodology documents will be considered a plus;
• Fluent written and spoken Mongolian and English.
• Excellent interpersonal skills with the ability to function effectively and collaboratively in a team environment and high integrity and accountability;
• Be proficient in PC-based applications such as Word, Excel and data management, and have excellent web research and navigation skills.
F. CONTRACT DURATION AND PAYMENT CONDITION
The assignment is expected to commence in May 2021 and be completed by January 31, 2022. If any task is not completed and approved for acceptance by the client within the agreed-upon date, consultants should complete the tasks without any additional cost.
Payments will be released upon satisfactory completion of all deliverables under each task, according to the following schedule:
● Completion of Deliverable 1: 30% of total contract amount
● Completion of Deliverable 2: 40% of total contract amount
● Completion of Deliverable 3: 30% of total contract amount.
G. INSTITUTIONAL ARRANGEMENTS
MOF will provide office space to the consultants, if required. The consultants will have access to all the necessary data/information.
The client will appoint officials to monitor the contract implementation. Appointed MOF officials will be responsible for the coordination of activities under the contract, for reviewing and accepting deliverables to be submitted by the consultant.
H. SUPERVISION AND REPORTING
The consulting firm will work under the oversight of the Director-General of the Treasury Department of the Ministry of Finance. On a day-to-day basis the consultancy team should consult and cooperate with the MOF specialists and consultants in charge of the technical issues covered under the consultancy.
The client shall provide its comments on reports and other related deliverables within 10 working days of receiving these documents from the consulting firm. All information provided to the consulting firm will be regarded as confidential and information will not be shared with any outside individuals or organizations.
If you possess the above qualifications, please submit the following documents via email to firstname.lastname@example.org:
- Letter of Expressions of Interest;
- Company introduction along with a copy of state registration certificate;
- Audited financial statements for last two years;
- Implementation Plan and Schedule; and
- Evidence of specific experience and qualification information of the firm relevant to the assignment (Annex I).
Expressions of Interest must be delivered in a written form to the address below by e-mail no later than 17:00 PM, April 28, 2021. Expressions of Interest should be clearly marked “Expression of Interest for Consulting firm to develop a guideline for compiling and disseminating Government Finance Statistics (GFS) data and assisting in the preparation of the FY2020 annual GFS report, Reference number: SFFSP/B22/CS/32”.
The consultant will be selected in accordance with the World Bank’s Procurement Regulations for IPF Borrowers (July 2016).
The submitted documents will not be returned to the applicants. Please be noted that incomplete applications would not be considered for evaluation. Only selected candidate will be contacted. Further information can be obtained at the address below during office hours: 8:30 to 17:30 hours (local Ulaanbaatar time) or email@example.com.
Address for submission of Expression of Interest: Attention to Ms.Ariunaa.G, Procurement Specialist, Strengthening Fiscal and Financial Stability Project, Address: Room #205, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia.
Tel: 70120582 or via email to: firstname.lastname@example.org