Using civil service payment information from a single source and moving to integrated control

2020-10-16

Per the initiative facilitated by the Finance Minister Mr. Khurelbaatar Ch, the Ministry of Finance develops and rolls out an Integrated Payroll system (IPS) designed to enhance budget control, accountability, and discipline in Civil service pay, which alone accounts for more than 20 percent of the state budget. The Ministry of Finance has cooperated with the Strengthening Fiscal and Financial Stability project of the World Bank, the Civil Service Council, the Information Technology Center of Custom, Taxation, and Finance, the Bank of Mongolia, the Social insurance agency, Mongolian Tax Administration to simplify payroll transactions and improve coordination among relevant government agencies.

". . . Thanks to an Integrated Payroll system, the workload of accountants in the budget entities have been reduced, and civil servants have been able to receive detailed monthly salary information through e-mail on time. The system enables us to see where and how many civil servants work and their salaries from a trusted single source. The system also generates accurate and reliable information on civil service pay when devising budgets and other related plans."

Mrs.Bolortuya E, an accountant at Capital City Taxation Department

Mrs. Bolortuya and public sector accountants at all levels have been gradually involved in the system development, pilot, training processes and have begun to reap the benefits of the system. To provide advice and services to the accountants related to the newly developed and tested IPS, the Ministry of Finance has conducted classroom and online training, set online instructions, videos, and a regular customer support center.

As of the third quarter of 2020, a total of 4,007 budget entities have registered with the IPS system. A direct transfer of 33.5 billion MNT was made to the employees' salary accounts in commercial banks through the pilot phase's electronic payment system. The intensification of testing, training, and rolling out in an IPS is considered the launch of substantial reform to transfer Treasury operations to electronic form.

The working group led by Mr.Batkhuyag, Director-General of the Treasury Department, pay particular attention to the continuous gradual improvement, the reduction of manual operations, the provision of information security, and the provision of reliable operation of the system. 

The IPS will enable budget governors at all levels to get access to accurate personnel and salary-related data, exchange information smoothly and appropriately with other systems such as taxes and social insurance. It is expected to result in evidence-based policymaking, strengthening budget discipline, and increasing budget planning and implementation efficiency.

Please find below link for more detailed information. 

www.facebook.com/watch/?v=256961259088693


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