REQUEST FOR EXPRESSION OF INTEREST

Project name: STRENGTHENING FISCAL AND FINANCIAL STABILITY PROJECT

Credit No. 6084-MN; 6085-MN 

Assignment title: Consultancy to develop a medium term development policy document for public sector internal audit (Ref no. B13/CS/014)

TERM OF REFERENCE

A. BACKGROUND

Mongolia received a credit from the International Development Association (IDA) for the Strengthening Fiscal and Financial Stability Project (SFFSP). 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; (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 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 . 

Under the objectives of the Component B of the project on improving the efficiency of Public Financial Management, there is a sub-component on improving budget credibility, predictability and execution for better delivery of services that, among other things, aims to enhance the government’s budget control, internal audit and risk management functions. 

The Article 69.2 of the Integrated Budget Law stipulates that “The State Central Administrative Body Responsible for Finance and Budget Matters shall provide general budget governors’ internal audit units with standards of activities and methodological guidance”. Further, the Article 5.1 under Objective 5 of the “Five-Year Guidelines for the Development of Mongolia in 2021-2025”, approved in Annex 1 of the Parliament Resolution no. 23 in 2020, states that the same body shall hold the responsibility “To create a legal environment for optimal checks and balances of power distribution and foster stable and monitored governance”. The article 3.1.12.4 of the “Action Plan to implement the Action program of the Government of Mongolia for 2020-2024” approved by Annex 1 of Government Resolution No. 203 of 2020 then states that the government “Will establish an integrated infrastructure for budget, finance, investment, procurement, accounting and monitoring systems”. In light of these regulatory and strategic considerations, there is an emerging need to develop a medium-term policy document for developing public sector internal audit in Mongolia in conformity with the International standards, develop a proper and effective government internal audit system, and maintain a specialized and qualified cohort of internal auditors towards ultimately improving the quality and accessibility of public services with the support of systematic and farsighted public sector internal audit. 

B. OBJECTIVES OF THE ASSIGNMENT

The objective of this assignment is to provide advice and support to the Financial Control and Risk Management Department (FCRMD) of the MOF (“the Client”) through developing a “Medium Term Development Policy Document for Public Sector Internal Audit” for the period of 2022 – 2025."

C. SCOPE OF WORK 

The envisioned consultancy service to develop a development policy document  and an action plan for its implementation would entail the following detailed tasks:

Task 1. Assess and analyze the maturity level of public sector internal audit in Mongolia based on defining the vision and the mission as well as review of the internal and external environment, including the following:

1.1. Assess implementation progress and results of the “Medium-Term Strategy for the Development of the Public Sector Internal Audit for 2014 - 2016” approved by Order No. 11 of the Minister of Finance in 2014 and the associated action plan within the framework of assessing the maturity level of public sector internal audit.

1.2. Conduct a comprehensive analysis of the internal audit units under the general budget governors regarding their planning and execution of internal audits.

1.3. Conduct a comparative study on the national and international practices in internal audit covering a minimum of 6 countries and with possible benchmarking based on the International Standards for the Professional Practice of Internal Auditing and other relevant internal audit "maturity models” that would help assess current performance and define future goals and actions. In particular, the consultant should:

1.3.1. Review, compare and contrast the relevant laws, rules and regulations of the public sector internal audit of the peer countries and Mongolia and develop recommendations for amending the current draft of the “Internal Audit Law” and other existing rules and regulations.

1.3.2. Review the existing institutional arrangements, organization and structure that help ensure the independence of public sector internal audit units among the peer countries and Mongolia and draw a conclusion and a proposal for improvements.

1.3.3. Study the level of development and use of information systems in public sector internal audit in the peer countries and provide recommendations for introducing a system in Mongolia.

1.3.4. Study techniques of how quality assurance is conducted and develop a proposal to introduce policy solutions and best practices.

1.3.5. Study the peer countries’ qualification of public sector internal auditors, and their continuing professional development program, procedures, as well as processes and prepare a proposal to develop Mongolian public sector internal audit in this regard.

1.3.6. Study best practices and techniques used in public sector internal audit in the peer countries with a view to informing the direction for public sector internal audit in Mongolia.

1.3.7. Compare other countries’ experiences of internal audit mid-term planning and implementations to Mongolia’s experience with the “Medium-Term Strategy for the Development of Public Sector Internal Audit” and the Action Plan for the Implementation of the Strategy (2014-2016) approved by Order No. 11 of the Minister of Finance of Mongolia in 2014.

1.3.8. Review the medium-term development planning document for Mongolian public sector internal audit in comparison with the relevant laws, rules, regulations and other development policy documents and provide recommendations for improvement.

1.4. As a result of the review and analysis conducted, assess the maturity of the internal audit units in Mongolia with consideration to the international standards and maturity models and develop a proposal for future improvements. 

Task 2. Develop a “Medium-term development policy document for public sector internal audit in Mongolia” for 2022 – 2025.

The mid-term development policy document must be in compliance with the Budget Law, the Law on Development Policy, Planning and its Management, the Guidelines for the Development of Mongolia, the Government Action Plan, and relevant rules and regulations, and must be based on coherent, integrated, comprehensive research and analysis as well as on principles of result-oriented planning.

The mid-term development policy document for 2022 – 2025 shall consist of three integral parts: i) mid-term development planning document ii) continuing professional development program for public sector internal auditors and iii) action plan. For developing these documents, the consultant is expected to conduct the following:

2.1. Based on the results of Task 1, develop an initial and final draft of a medium-term development policy and planning document for developing public sector internal audit.

2.1.1. Develop a SWOT analysis, objectives, and its measurement criteria, baseline and target levels, and implementation methods for the policy document.

2.1.2. Draft the policy document based on the development model, assumption, effect, result, and resource studies to address the issues identified by the SWOT analysis specified in 2.1.1.

2.1.3. Obtain feedback from internal audit units and the management of all general budget governors and external auditors on the first draft of the policy document with a view to informing the final draft.

2.2. Develop a continuing professional development program for public sector internal auditors. 

2.2.1. Draft a continuing professional development program in line with the mid-term development policy document based on the studies of peer countries’ experiences; and

2.2.2. Obtain feedback from internal audit units and the management of all general budget governors and external auditors on the first draft of the continuing professional development program with a view to informing the final draft.

2.3. Develop an initial and final draft action plan.

2.3.1. While developing the plan, develop tactics to mitigate weaknesses and risks identified in the SWOT analysis and also determine the criteria, baseline, and target levels, and required financial resources for each measure to achieve goals and objectives of the medium-term development plan.

2.3.2. Obtain feedback from internal audit units and the management of all general budget governors and external auditors on the first draft of the action plan with a view to informing the final draft in accordance with the Article 11.3 of the Law on Development Policy, Planning and its Management, which states the following requirement for the final draft of a policy document and action plan “While developing the draft of development policy, multi-stakeholder participation must be provided and the final draft shall be publicly discussed”. Feedback within the scope of relevant issues shall be south through holding discussions among the staffs of the internal audit unit of general budget governors prior to finalizing the draft.

Task 3. Support and advise the FCRMD for implementing “Medium-term development policy document public sector internal audit” for 2022 – 2025. 

3.1. The medium-term policy document shall provide recommendations in the following three areas:

• Ensuring compliance with the “Internal Audit Charter” approved by the Government Resolution No. 483 of 2015 and “Internal Audit Committee Regulation” approved by Minister of Finance Order No. 29 of 2019.

• Ensuring compliance with the “Public Sector Internal Audit Guidance” approved by Order No. 268 of 2019, “Procedure for Conducting Internal Audit Quality Assurance” approved by Minister of Finance Order No. 274 of 2019, and “Quality Assurance Methodology” approved by Minister of Finance by Order No. 274 of 2019;

• Evaluating the effectiveness of the implementation of the action plan, the level of achievement, and the criteria. 

3.2. As a result of provision of the recommendations, conduct training on implementing and evaluating the action plan for FCRMD officials. 

D. DELIVERABLES

1. Assessment report covering implementation progress and results of the previous medium-term plan; findings and recommendations from the international comparative studies; assessment of the internal audit maturity level; as well as future goals and actions based on performing the detailed tasks under Task 1. Detailed outline and content of the assessment report shall be agreed as part of the contract implementation plan.

2. Final draft of the medium term development policy document for public sector internal audit for 2022-2025 including i) mid-term development planning document, ii) continuing professional development program for public sector internal auditors and iii) action plan that incorporates the feedback received from the relevant stakeholders.

3. Recommendations on support for implementing the mid-term policy included in a final report to be submitted in English/Mongolian and an associated PPT in Mongolian.

The consultant shall provide monthly progress reports in both English and Mongolian and for getting timely feedback and guidance from the Client.

E. CONSULTANT’S QUALIFICATIONS/SELECTION CRITERIA

The desired consultancy has to be a legally registered entity with at least 5 years of experience in providing consulting services in financial management and internal audit-related policy and planning. Public sector familiarity and prior experience would be desirable. The professional entity should have competent team of professionals.

The Consulting Firm must have completed at least 2 similar assignments in the past two years in the aforementioned areas (a list of project references indicating the works performed, the name of client, and country should be included in the proposal).

The consultancy team should consist of the following members meeting the specific requirements listed below:

Key Experts

The consultancy team should consist of four (4) experts: (i) 1 team leader specialized in strategic planning and (ii) 2 internal audit specialists with qualifications in research and data analysis, and (iii) 1 strategic planning specialist. 

Team Leader / Functional Expert (One person)

The team leader shall be primarily responsible for managing the team and reporting on the progress and ongoing activities under the assignment to a designated official assigned by the FCRMD. The key responsibilities and duties of the Team Leader shall include:

• Develop a detailed work plan for the consultancy team; 

• Outline and identify objectives and assignments in detail;

• Manage and monitor the consultancy team’s progress;

• Provide technical backstopping support in PFM and public sector internal audit issues to the team, as needed; 

• Plan for and manage operational risks;

• Report and analyze decisions, issues, and performances;

• Organize and conduct/lead meetings;

• Prepare and submit progress and final reports;

• Conduct training.

The team leader shall meet the following qualifications/criteria:

• Education: A suitable candidate should have a master’s degree or above in a relevant field: strategic planning, finance, economics, and business administration or public administration;

• Experience:

o Work experience in strategic planning. Work experience in strategy development of a public sector organization will be an advantage;

o Sufficient knowledge of the Audit Law, Budget Law, State Auditing Law, State Inspection Law, Law on Development Policy, Planning and Management;

o At least ten (10) years of managerial experience dealing with a team and organizational building, preferably in the public sector;

o Work experience in project management; and 

o Experience in dealing with overseas organizations or Donor Funded Projects will be an advantage. 

• Computer proficiency in standard office applications (spreadsheets, word processing, internet explorer);

• Language skills: Fluent written and spoken skills in English and fluent written and spoken skills in Mongolian;

• Other skills:

o Ability to perform tasks fully in line with the work plan on time;

o Work stability during the contract term;

o Excellent interpersonal skills, ability to work in a group and multicultural team environment;

o Be able to work overtime as required; and 

o Be able to travel to the countryside.

Internal audit specialist (two persons)

The Internal audit specialists shall meet the following qualifications/criteria:

• Education: Suitable candidates should have a master’s degree or above in relevant field: finance, accounting, economics and business administration or public administration; 

• Experience:

o At least five (5) years of relevant professional experience in the private or public sector internal and external audit, monitoring and evaluation or financial control; Work experience in strategy development of a public sector organization will be an advantage; Having CIA designation would be highly desirable;

o Sufficient knowledge of the Audit Law, Budget Law, State Auditing Law, State Inspection Law;

o Experience in publishing or conducting audit or monitoring and evaluation research works, and publications would be an advantage;

• Language skills: Good written and spoken skills in English and fluent written and spoken skills in Mongolian;

• Computer literacy: Be proficient in PC-based applications such as Word, Excel, and have excellent web research, collect information and process, summarize and prepare reports and navigation skills;

• Other skills:

o Ability to perform tasks fully in line with the work plan on time;

o Be compliant with the Code of Ethics of the Mongolian Institution of Certified Accountants and the International Professional Practices Framework (IPPF)

o Work stability during the contract term;

o Excellent interpersonal skills, ability to work in a group and multicultural team environment;

o Be able to work overtime as required; and 

o Be able to travel to the countryside.

Consultant specialized in strategic planning (one person):

• The strategic planning specialists shall meet the following qualifications/criteria:

• Education: Suitable candidates should have a master’s degree or above in relevant field: strategic planning and business administration or public administration; 

• Experience:

o At least five (5) years of relevant professional experience in the private or public sector specialized in strategic planning; Work experience in strategy development of a public sector organization will be an advantage; Having CIA designation would be highly desirable;

o Sufficient knowledge of the Audit Law, Budget Law, State Auditing Law, State Inspection Law;

o Experience in publishing or conducting specializes in strategic planning research works, and publications would be an advantage;

• Language skills: Good written and spoken skills in English and fluent written and spoken skills in Mongolian;

• Computer literacy: Be proficient in PC-based applications such as Word, Excel, and have excellent web research, collect information and process, summarize and prepare reports and navigation skills;

• Other skills:

o Ability to perform tasks fully in line with the work plan on time;

o Specialized in strategic planning at the international level

o Work stability during the contract term;

o Excellent interpersonal skills, ability to work in a group and multicultural team environment;   

o Be able to work overtime as required; and 

o Be able to travel to the countryside.

F. SUPERVISION AND REPORTING 

The Consultancy will report directly to the Head of Internal Auditing, Monitoring and Evaluation Division (IAMED) and the Director-General of the FCRMD and the PIU and work on a daily basis with other officials responsible for the subcomponent. The consultant will work on the basis of an approved work plan during the period of the contract. 

The FCRMD (MOF) and the PIU (SFFSP) shall evaluate the consultants’ performance and approve invoices on the basis of the delivered outputs as indicated in Section I. 

All monthly progress reports shall be prepared in English and Mongolian. Main deliverables under the assignment must be prepared/submitted in electronic and hard copies.

G. INSTITUTIONAL ARRANGEMENTS

The FCRMD of MOF will provide conference and meeting rooms for meetings/consultations related to the assignment as requested and will collaborate closely with the consultants on a day-to-day basis. The consultants are also expected to communicate and coordinate their work with other relevant government officials and national consultants as needed.  The consultants shall be provided with all necessary data and information to perform the tasks detailed in this TOR. 

In addition to the standard conflict of interest restrictions specified in the consulting Contract, all materials created under this Contract will remain the sole property of the MoF. 

The Consultant shall have no material interest in any of the outputs of this. On the commencement of the assignment, the Consultant will jointly prepare with the MoF a statement of confidentiality that will bind the Consultant to nondisclosure of any sensitive information that the Consultant may become knowledgeable of during the course of the assignment. The terms of this agreement shall be made consistent with the relevant privacy laws of Mongolia.

H. CONTRACT DURATION AND PAYMENT CONDITION

The consultancy is expected to commence in December 2021 with a total estimated duration of six (6) months. 

Payments will be released upon satisfactory completion of all deliverables, according to the following schedule:

• Deliverables 1: 35% of total contract amount; 

• Deliverables 2: 50% of total contract amount; and

• Deliverables 3: 15% of total contract amount.

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

- 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 15:00 PM, December 06, 2021. Expressions of Interest should be clearly marked “Consultancy to develop a medium-term development policy document for public sector internal audit with Ref no. B13/CS/014)”. 

The consulting firms will be selected in accordance with the Consultant's Qualifications Based Selection (CQS) method of the World Bank’s Procurement Regulations for IPF Borrowers. 

https://thedocs.worldbank.org/en/doc/178331533065871195-0290022020/original/ProcurementRegulations.pdf. 

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 procurement@sffs.mn.

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: procurement@sffs.mn.

70120582