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 law on internal audit in Mongolia in conformity with the International standards to provide integrated regulations 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 main objective of this assignment is to develop a draft law on Public Sector Internal Audit along with the other relevant documents required for the package for submission and complete the other tasks specified in this ToR for a consulting firm (“the Consultant”) for the MoF (“the Client”). 

This shall be done in accordance with the Law on Legislation, and the methodology in line with the Government’s Resolution No. 59 of 2016.

C. SCOPE OF WORK 

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

Task 1. Pre-draft works: 

1.1. Develop and present a work plan;

1.2. Review the current legislation, relevant laws, rules and procedures regulating the internal audit processes and practices in Mongolia;

1.3. Conduct the preliminary needs assessment for the proposed law;

1.4. Conduct an assessment of the alignment of the internal audit practices supported by the new law with international standards of good practice;

1.5. Hold meetings with stakeholders, including governmental and non-governmental organizations as well as representatives of the  public and private sectors who are charged with internal audit and auding-related functions;

1.6. Conduct a comparative study of the legislation related to the internal audit covering at least 3 countries’ laws and procedures on internal audit;

1.7. Prepare progress reports on the tasks performed (on a monthly basis).

Task 2. Draft the proposed law: 

2.1. Prepare the concept paper of the proposed law; 

2.2. Formulate and draft the proposed law;

2.3. Develop proposals for amending or repealing other related law laws in connection with implementation of the proposed law;  

Task 3. Assist the Client during the submission and discussion of the proposed law at the Cabinet level:

3.1. Facilitate the organization of public discussions and consultations on the draft law; 

3.2. Obtain and review stakeholders’ comments, recommendations and proposals for the draft law, including international experts from the World Bank and other experts; and update the draft accordingly with the proposals upon receipt from the Client; 

3.3. Conduct an impact assessment for the proposed law;

3.4. Estimate costs associated with implementing the proposed law;

3.5. Prepare other necessary documents required for submission of the proposed law to the Cabinet and the Parliament;

Task 4. Assist the Client during the Cabinet submission to the Parliament and the approval process of the proposed law: 

4.1. Attend as requested by the Client in the meetings and discussions of the Parliamentary Committees and the Cabinet where the Client presents the proposed law;

4.2. Assist and support the Client during the submission of the proposed law to the Parliament by providing suggested responses to questions and recommendations from Parliament members and Committees; 

4.3. Support in prepare presentations and other required materials required for Parliamentary committee and Cabinet meetings;

4.4. Update the proposed law accordingly with suggestions and recommendations by Parliamentary Committees and Members of Parliament.

D. DELIVERABLES

1. Approved work plan;
   
2. Preliminary needs assessment report for the proposed law;
3. Assessment report on the current legal framework for internal audit activiities along with proposed recommendations; 
4. A study of the features and requirements to achieve alignment with international models and standards of good practice in internal audit; 
5. A comparative study of at least 3 countries of the legislation related to the internal audit activiites;
6. A concept of the draft law on regulating internal audit activities;
7. A draft law on internal audit;
8. Proposals on other related new laws, amendments, and repeals (in connection with the implementation of the proposed law on internal audit);
9. Report of the public discussions on the draft law conducted;
10. Impact assessment of the proposed law;  
11. Cost estimation of the draft law;
12. An introduction to the draft law on internal audit;
13. Necessary documents related to the submission of the law to the Cabinet and the Parliament.
14. Report on key issues from Cabinet discussions and approval of the draft law;
15. Report on Parliamentary discussions and meetings with Parliament Members on the draft law 
16. Monthly and final report of the project.

E. CONSULTANT’S QUALIFICATIONS/SELECTION CRITERIA

The desired consultant firm should be a legally established entity in Mongolia meeting the following qualifications and requirements:

• A legally registered entity with at least 5 years of continuous operations and evidence of credibility and competence to undertake the assignment; 
• Ability to mobilize the key professionals meeting the required qualification requirements;
• Experience in providing consultancy services in the following fields: law drafting, external and internal audit in the public sector, policy development in government organizations/agencies, or any other relevant field; and
• Ability to transfer the relevant knowledge to the MOF where necessary and have an intention and willingness to complete the assignment timely and successfully taking full responsibility. 

The consultancy team of each task shall have 4 (four) competent experts, including a Team Leader and an other technical experts. The qualifications of the team members shall fulfil the following criteria:

a) Team Leader (/Senior Expert/Lawyer I)

Education: A suitable candidate should have a master’s degree in a relevant field: Law, Economics, Public Policy/Administration, Finance and Accounting;

Experience: 

• At least 15 years of experience in law, including at least 10 years of work experience in public sector with knowledge of methods and techniques required for drafting laws and developing policy documents and legislative procedures;
• Experience of presenting and introducing law drafts and other policy documents to the Parliament and handling questions from the Committee and Parliament Members is highly desired; 
• Experience of working with government organizations/agencies in drafting laws is highly desired;
• Experience in managing project teams for the development of law drafts and policies;
• Experience in publishing or conducting research reports/works;
• Be able to perform the task at high quality in a timely manner.

Other work-related skills: 

• Sufficient knowledge of the Budget Law, State Auditing Law, State Inspection Law and other required laws and policies;
• Good written and spoken skills in English and fluent written and spoken skills in Mongolian;
• Excellent interpersonal skills, ability to work in a group and team environment is required to deal effectively with staff at all levels;
• Proficiency in standard office applications (spreadsheets, word processing, web research, online meeting tools).

b) Auditor I

Education: A suitable candidate should have a master’s degree in a relevant field: Accounting, Economics, Public Policy/Administration, Finance;  

Experience: 

• At least 15 years of experience in private or public sector audit;
• Experience of working with government organizations/agencies in drafting laws or developing policy documents and regulations is highly recommended;
• Published or conducted internal audit/monitoring and evaluation research works, and publications would be an advantage;
• Experience in conducting training on internal audit or monitoring and evaluation for a public sector organizations or private entities would be an advantage;
• Experience in working with team members for development of law draft or policy documents or manuals for public sector;
• Hold an ACCA (Association of Chartered Certified Accountants) or an equivalent international accounting and auditing qualification;
• Be a Certified Public Accountant of Mongolian Institution of Certified Accountants;
• Knowledge of, or ability to gain knowledge of, international internal audit standards; and
• Be able to perform the task at high quality in timely manner.

Other work-related skills: 

• Sufficient knowledge of the Budget Law, State Auditing Law, State Inspection Law and other required policies;
• Good written and spoken skills in English and fluent written and spoken skills in Mongolian;
• Excellent interpersonal skills, ability to work in a group and multicultural team environment is required to deal effectively with staff at all levels;
• Proficiency in standard office applications (spreadsheets, word processing, internet explorer, online meeting tools)

c) Auditor II

Education: A suitable candidate should have a bachelor degree in a relevant field: Accounting, Economics, Public Policy/Administration, Finance;  

Experience: 

• At least 10 years of experience in private or public sector internal audit, monitoring and evaluation or financial control;
• Work experience in internal audit of a public sector organization is highly required; 
• Experience of working with government organizations/agencies in drafting laws or developing policy documents and regulations is highly recommended;
• Experience of conducting internal audit/monitoring and evaluation would be an advantage;
• Experience in working with team members for development of law draft or policy documents or manuals for public sector;
• Be a Certified Public Accountant of Mongolian Institution of Certified Accountants;
• Be a member of the Institute of Internal auditors (IIA) or work in compliance with the international standards and code of ethics;
• Be able to perform the task at high quality in timely manner

Other work-related skills: 

• Sufficient knowledge of the Budget Law, State Auditing Law, State Inspection Law and other required policies;
• Good written and spoken skills in English and fluent written and spoken skills in Mongolian;
• Excellent interpersonal skills, ability to work in a group and multicultural team environment is required to deal effectively with staff at all levels;
• Proficiency in standard office applications (spreadsheets, word processing, internet explorer, online meeting tools)

d) Lawyer II

Education: A suitable candidate should have a master’s degree in a relevant field: Law, Economics, Public Policy/Administration, Finance and Accounting;

Experience: 

• At least 10 years of experience in law including work experience for drafting laws and developing policy documents and legislative procedures; 
• Experience working with government organizations/agencies in drafting laws is highly recommended;
• Experience in publishing or conducting research reports/works;
• Be able to perform the task at high quality in timely manner.

Other work related skills: 

• Sufficient knowledge of the Budget Law, State Auditing Law, State Inspection Law and other required laws and policies;
• Good written and spoken skills in English and fluent written and spoken skills in Mongolian;
• Excellent interpersonal skills, ability to work in a group and team environment is required to deal effectively with staff at all levels;
• Proficiency in standard office applications (spreadsheets, word processing, web research, online meeting tools).

F. SUPERVISION AND REPORTING 

The Consultancy will report directly to the Head of Internal Audit, Monitoring and Evaluation Division (IAMED) and the Director-General of the FCRMD 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) shall evaluate the consultants’ performance and approve invoices on the basis of the delivered outputs. 

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 

The consultancy is expected to commence in August 2022 with a total estimated duration of six (6) months. 

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

- Letter of Expressions of Interest; 

- Company introduction along with a copy of state registration certificate; 

- Audited financial statements for the 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, August 01, 2022. Expressions of Interest should be clearly marked “Consulting firm to draft a Public Sector Internal Audit Law, with Ref no. B13/CS/14)”. 

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 procurement_sgm@sffs.mn.

Address for submission of Expression of Interest: Attention to Ms.Oyunyam.M, 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_sgm@sffs.mn.  

70120582