Mongolia 2021/AGILE REPORT/
I. Budget reliability
Scores by Dimension
Overall Indicator Score
Indicator
Notes:
Indicator
Notes:
Aggregate expenditure outturn has been below the budget plan at 92.1% in 2020; 98.8% in 2019, and 93.1% in 2018. In only one of the last three years (98.8% in 2019) was actual expenditure more than 95%. COVID-19 significantly affected spending in 2020.
Aggregate expenditure outturn has been below the budget plan at 92.1% in 2020; 98.8% in 2019, and 93.1% in 2018. In only one of the last three years (98.8% in 2019) was actual expenditure more than 95%. COVID-19 significantly affected spending in 2020.
Notes:
Indicator
Notes:
Variances in expenditure composition by administrative classification were less than 5% in two of the last three years, and over 5% in the other year.
Variances in expenditure composition by administrative classification were less than 5% in two of the last three years, and over 5% in the other year.
Notes:
Variances in expenditure composition by economic classification were more than 5% but less than 10% in two of the last three years, and less than 5% in the other year.
Variances in expenditure composition by economic classification were more than 5% but less than 10% in two of the last three years, and less than 5% in the other year.
Notes:
Actual expenditure charged to a contingency vote was on average 0.4% of the original budget.
Actual expenditure charged to a contingency vote was on average 0.4% of the original budget.
Notes:
Indicator
Notes:
Actual revenue collected was higher than the originally budgeted level in two of the last three years. In only one year (2020) was the actual collection less than the approved budget, with a variance of 92.1%, reflecting the COVID-19 pandemic’s impact on the domestic and global economy.
Actual revenue collected was higher than the originally budgeted level in two of the last three years. In only one year (2020) was the actual collection less than the approved budget, with a variance of 92.1%, reflecting the COVID-19 pandemic’s impact on the domestic and global economy.
Notes:
The variance in revenue composition by category was more than 15% in one and less than 15% in two of the last three years: 9% in 2020, 11.1% in 2019, and 17.2% in 2018.
The variance in revenue composition by category was more than 15% in one and less than 15% in two of the last three years: 9% in 2020, 11.1% in 2019, and 17.2% in 2018.
II. Transparency of public finances
Scores by Dimension
Overall Indicator Score
Indicator
Notes:
Indicator
Notes:
The chart of accounts includes administrative, economic, and program classifications, which are reflected in budget documents, budget execution reports, and annual financial statements. Administrative and economic classification at this level of detail is included in the budget, budget execution reports, and the annual financial statements.
The chart of accounts includes administrative, economic, and program classifications, which are reflected in budget documents, budget execution reports, and annual financial statements. Administrative and economic classification at this level of detail is included in the budget, budget execution reports, and the annual financial statements.
Notes:
Indicator
Notes:
The budget documents include all four basic elements and five of eight additional elements.
The budget documents include all four basic elements and five of eight additional elements.
Notes:
Indicator
Notes:
All expenditure incurred is budgeted and is included in the government’s annual financial statements. This follows a concerted effort to bring “on budget” all activities of government, including DBM, concessions, social schemes, and the Future Heritage Fund.
All expenditure incurred is budgeted and is included in the government’s annual financial statements. This follows a concerted effort to bring “on budget” all activities of government, including DBM, concessions, social schemes, and the Future Heritage Fund.
Notes:
As with expenditure, all revenue collected is budgeted and is included in the government’s annual financial statements.
As with expenditure, all revenue collected is budgeted and is included in the government’s annual financial statements.
Notes:
There are no extrabudgetary units.
There are no extrabudgetary units.
Notes:
Indicator
Notes:
The central government provides transparent rules-based transfers, as provided for in the Integrated Budget Law (section 56), which includes both the Local Development Fund (LDF) and specific purpose transfers for Health and Education. These rules-based transfers represent 88.1% of the transfers made by central government in 2020.
The central government provides transparent rules-based transfers, as provided for in the Integrated Budget Law (section 56), which includes both the Local Development Fund (LDF) and specific purpose transfers for Health and Education. These rules-based transfers represent 88.1% of the transfers made by central government in 2020.
Notes:
The process by which subnational governments receive information on their transfers from national government is set out in the national budget calendar. Subnational governments receive a ceiling in the budget circular issued prior to July 5, produce submissions (by August 1), and participate in face-to-face budget discussions in August/September - a process by which subnational governments receive clear and sufficientlydetailed information regarding transfers to be received.
The process by which subnational governments receive information on their transfers from national government is set out in the national budget calendar. Subnational governments receive a ceiling in the budget circular issued prior to July 5, produce submissions (by August 1), and participate in face-to-face budget discussions in August/September - a process by which subnational governments receive clear and sufficientlydetailed information regarding transfers to be received.
Notes:
Indicator
Notes:
A specific circular is issued in the context of the budget that requires all ministries to prepare performance plans for each program to inform the overall performance management framework.
A specific circular is issued in the context of the budget that requires all ministries to prepare performance plans for each program to inform the overall performance management framework.
Notes:
Performance reports are prepared that identify performance against program performance targets, but these reports are not published.
Performance reports are prepared that identify performance against program performance targets, but these reports are not published.
Notes:
Financial reports of individual service delivery units, including schools for example, are published on the Glass Account Portal, which is open to viewing by the public.
Financial reports of individual service delivery units, including schools for example, are published on the Glass Account Portal, which is open to viewing by the public.
Notes:
There is no program evaluation undertaken and performance audits completed do not focus on efficiency or effectiveness of service delivery.
There is no program evaluation undertaken and performance audits completed do not focus on efficiency or effectiveness of service delivery.
Notes:
Indicator
Notes:
The government makes available to the public nine elements, including all five basic elements and the additional four in accordance with the specified time frames (FY20).
The government makes available to the public nine elements, including all five basic elements and the additional four in accordance with the specified time frames (FY20).
III. Management of assets and liabilities
Scores by Dimension
Overall Indicator Score
Indicator
Notes:
Indicator
Notes:
Three of the five largest public corporations (representing slightly less than 90% of combined turnover) publish their annual financial statements within six months of the end of the fiscal year. A consolidated report on the financial performance of publicorporations is not published.
Three of the five largest public corporations (representing slightly less than 90% of combined turnover) publish their annual financial statements within six months of the end of the fiscal year. A consolidated report on the financial performance of publicorporations is not published.
Notes:
Audited annual financial statements for all subnational governments are published on the Glass Account Portal, but a consolidated report on the financial position of subnational government is neither prepared nor published.
Audited annual financial statements for all subnational governments are published on the Glass Account Portal, but a consolidated report on the financial position of subnational government is neither prepared nor published.
Notes:
The government publishes in its annual financial statements data regarding loan guarantees and some concession arrangements (e.g., PPPs).
The government publishes in its annual financial statements data regarding loan guarantees and some concession arrangements (e.g., PPPs).
Notes:
Indicator
Notes:
National guidelines for economic analysis of projects are defined by regulation. Economic analysis is initially prepared by respective budget entity and then assessed by the National Development Agency for large projects (MNT>30bn) or the Public Investment Department (PID) of MoF. The results of economic assessment are not published.
National guidelines for economic analysis of projects are defined by regulation. Economic analysis is initially prepared by respective budget entity and then assessed by the National Development Agency for large projects (MNT>30bn) or the Public Investment Department (PID) of MoF. The results of economic assessment are not published.
Notes:
Prior to their inclusion in the budget all major investment projects are prioritized by the National Development Agency (projects with a value >MNT30bn) and the Public Investment Department (
Prior to their inclusion in the budget all major investment projects are prioritized by the National Development Agency (projects with a value >MNT30bn) and the Public Investment Department (
Notes:
PID analyses the economic benefits and social significance of construction projects in accordance with the Regulation No. 295 of 2018.
PID analyses the economic benefits and social significance of construction projects in accordance with the Regulation No. 295 of 2018.
Notes:
Project implementation is governed by a specific Regulation (#282 of 2019) and overseen by the respective line agency, any specific technical agency, as well as the NDA and MoF. The NDA and PID report a high level of compliance.
Project implementation is governed by a specific Regulation (#282 of 2019) and overseen by the respective line agency, any specific technical agency, as well as the NDA and MoF. The NDA and PID report a high level of compliance.
Notes:
Indicator
Notes:
The government maintains records of its holding of financial assets, including cash, bank accounts, and investments, and line ministries maintain records on their equity holding in SOEs. These are all recognized at their acquisition cost. There is some information on the performance of financial assets, including ratio analysis of SOEs, but it is not published.
The government maintains records of its holding of financial assets, including cash, bank accounts, and investments, and line ministries maintain records on their equity holding in SOEs. These are all recognized at their acquisition cost. There is some information on the performance of financial assets, including ratio analysis of SOEs, but it is not published.
Notes:
The Government Agency for Policy Coordination on State Property maintains an asset register for the budgetary central government (BCG) which includes non-financial assets such as land and roads, as well as intangible assets. A register of sub-soil assets is maintained by the Mineral Resources and Petroleum Authority.
The Government Agency for Policy Coordination on State Property maintains an asset register for the budgetary central government (BCG) which includes non-financial assets such as land and roads, as well as intangible assets. A register of sub-soil assets is maintained by the Mineral Resources and Petroleum Authority.
Notes:
A Law on State and Local Property defines rules for sale of property, including levels of approval required for disposal, such as a requirement for Parliament to approve sale of equity in SOEs.
A Law on State and Local Property defines rules for sale of property, including levels of approval required for disposal, such as a requirement for Parliament to approve sale of equity in SOEs.
Notes:
Indicator
Notes:
A debt management system is in place. Debt data is reconciled with Treasury data monthly but with other primary sources, such as development partners and bank statements, quarterly. Debt statistics are compiled at least quarterly, and provided to the Cabinet and the National Statistics Office, which publish the data on an online statistical portal. Development partners advise that debt data and statistics are reliable.
A debt management system is in place. Debt data is reconciled with Treasury data monthly but with other primary sources, such as development partners and bank statements, quarterly. Debt statistics are compiled at least quarterly, and provided to the Cabinet and the National Statistics Office, which publish the data on an online statistical portal. Development partners advise that debt data and statistics are reliable.
Notes:
An annual borrowing limit is approved by Parliament with the budget. Debt Management Law and Budget Law provide the Minister of Finance sole authority for issuing and approving debt and guarantees based on prior approval of the Cabinet. Regulations and policies guide debt operations.
An annual borrowing limit is approved by Parliament with the budget. Debt Management Law and Budget Law provide the Minister of Finance sole authority for issuing and approving debt and guarantees based on prior approval of the Cabinet. Regulations and policies guide debt operations.
Notes:
A Medium-Term Debt Management Strategy 2019-2022 is in place and approved by Parliament, which includes target ranges for interest rates, refinancing, and foreign currency risk. The government’s annual borrowing plan is consistent with the approved strategy. The MoF reports to the Cabinet annually against the plan and to Parliament prior to the end of the three-year period of the strategy (but not annually).
A Medium-Term Debt Management Strategy 2019-2022 is in place and approved by Parliament, which includes target ranges for interest rates, refinancing, and foreign currency risk. The government’s annual borrowing plan is consistent with the approved strategy. The MoF reports to the Cabinet annually against the plan and to Parliament prior to the end of the three-year period of the strategy (but not annually).
IV. Policy-based fiscal strategy and budgeting
Scores by Dimension
Overall Indicator Score
Indicator
Notes:
Indicator
Notes:
The budget documents submitted to Parliament annually contain updated forecasts of GDP growth and inflation for the budget and two following fiscal years, which are independently reviewed by the Audit Office as part of the Parliament’s process of considering the budget.
The budget documents submitted to Parliament annually contain updated forecasts of GDP growth and inflation for the budget and two following fiscal years, which are independently reviewed by the Audit Office as part of the Parliament’s process of considering the budget.
Notes:
The budget documents include forecasts of the main fiscal indicators for the budget and two following fiscal years.
The budget documents include forecasts of the main fiscal indicators for the budget and two following fiscal years.
Notes:
The macrofiscal forecasts set out in the budget documents contain narratives regarding the impact of alternative macroeconomic assumptions, but no quantitative sensitivity analysis.
The macrofiscal forecasts set out in the budget documents contain narratives regarding the impact of alternative macroeconomic assumptions, but no quantitative sensitivity analysis.
Notes:
Indicator
Notes:
As part of the budget process, detailed estimates of the fiscal impacts of all proposed changes in revenue and expenditure policy are prepared for the budget and following two fiscal years.
As part of the budget process, detailed estimates of the fiscal impacts of all proposed changes in revenue and expenditure policy are prepared for the budget and following two fiscal years.
Notes:
The Fiscal Stability Law 2010 (“FSL”) contains “special fiscal requirements,” including quantitative limits on structural deficit (% GDP), expenditure growth (% sectoral GDP), and debt (% of GDP).
The Fiscal Stability Law 2010 (“FSL”) contains “special fiscal requirements,” including quantitative limits on structural deficit (% GDP), expenditure growth (% sectoral GDP), and debt (% of GDP).
Notes:
The MTFF describes and explains progress against the fiscal strategy,including reasons for deviations from previously stated targets, but does not outline specific actions to address any deviations.Budget execution reports track progress against targets and outline actions to address deviations but are not submitted to Parliament.
The MTFF describes and explains progress against the fiscal strategy,including reasons for deviations from previously stated targets, but does not outline specific actions to address any deviations.Budget execution reports track progress against targets and outline actions to address deviations but are not submitted to Parliament.
Notes:
Indicator
Notes:
The 2020/2021 Budget Estimates project expenditure for the fiscal year and the two following years disaggregated by administrative, economic type, and program.
The 2020/2021 Budget Estimates project expenditure for the fiscal year and the two following years disaggregated by administrative, economic type, and program.
Notes:
Aggregate ceilings are approved by Cabinet prior to the issuing of the budget circular in the context of the approval of the MTFF. Ministry-level ceilings are also approved by Cabinet prior to distribution of the budget circular, but for the budget year only.
Aggregate ceilings are approved by Cabinet prior to the issuing of the budget circular in the context of the approval of the MTFF. Ministry-level ceilings are also approved by Cabinet prior to distribution of the budget circular, but for the budget year only.
Notes:
Strategic plans are prepared by some ministries (representing 31% of the five largest ministries’ budgets) but the identification and prioritization of spending aligns with the strategic plans in those ministries only some of the time and in none of the time for the other ministries (as they do not have strategic plans).
Strategic plans are prepared by some ministries (representing 31% of the five largest ministries’ budgets) but the identification and prioritization of spending aligns with the strategic plans in those ministries only some of the time and in none of the time for the other ministries (as they do not have strategic plans).
Notes:
There is no reconciliation of the budget and forward-year estimates from one year to the next.
There is no reconciliation of the budget and forward-year estimates from one year to the next.
Notes:
Indicator
Notes:
The Budget Calendar for the 2021 Budget was issued on July 5, 2020 (received by line ministries on July 10), with submissions due back at the Ministry of Finance by August 14, 2020 (5 weeks) for central-level budget entities and August 1, 2020 (3 weeks and 6 days) for subnational governments (less than 10% of expenditure).
The Budget Calendar for the 2021 Budget was issued on July 5, 2020 (received by line ministries on July 10), with submissions due back at the Ministry of Finance by August 14, 2020 (5 weeks) for central-level budget entities and August 1, 2020 (3 weeks and 6 days) for subnational governments (less than 10% of expenditure).
Notes:
A comprehensive circular is issued each year by July 5 that sets out the requirement for budget submissions, including ceilings approved in advance by Cabinet covering all budget expenditure for the whole fiscal year, and having regard to the approved Medium-Term Fiscal Framework Strategy document.
A comprehensive circular is issued each year by July 5 that sets out the requirement for budget submissions, including ceilings approved in advance by Cabinet covering all budget expenditure for the whole fiscal year, and having regard to the approved Medium-Term Fiscal Framework Strategy document.
Notes:
2020 Budget was submitted on September 26, 2019. 2019 budget was submitted on September 27, 2018. 2018 Budget was submitted on September 28, 2020
2020 Budget was submitted on September 26, 2019. 2019 budget was submitted on September 27, 2018. 2018 Budget was submitted on September 28, 2020
Notes:
Indicator
Notes:
The State Great Khural (the national parliament of Mongolia) exercises considerable authority over the budget, as specified in Article 9 of the IBL.
The State Great Khural (the national parliament of Mongolia) exercises considerable authority over the budget, as specified in Article 9 of the IBL.
Notes:
The Legislature’s procedures for budgetary review are established in the Law on the Parliamentary Session Procedures, amended in May 2020 (Articles 63-73), which is abided by.
The Legislature’s procedures for budgetary review are established in the Law on the Parliamentary Session Procedures, amended in May 2020 (Articles 63-73), which is abided by.
Notes:
Deadlines imposed by the IBL regarding when the budget must be presented to Parliament (October 1) and when it should be approved following scrutiny (by November 15) have been abided.
Deadlines imposed by the IBL regarding when the budget must be presented to Parliament (October 1) and when it should be approved following scrutiny (by November 15) have been abided.
Notes:
Articles 34 and 42 of the IBL (2011) clearly state the extent and nature as well as strict limits for in-year budget amendments by the executive. These rules are always respected.
Articles 34 and 42 of the IBL (2011) clearly state the extent and nature as well as strict limits for in-year budget amendments by the executive. These rules are always respected.
V. Predictability and control in budget execution
Scores by Dimension
Overall Indicator Score
Indicator
Notes:
Indicator
Notes:
Entities collecting most revenues use multiple channels to provide payers with easy access to comprehensive and up-to-date information on the main revenue obligation areas and on rights, including redress processesand procedures.
Entities collecting most revenues use multiple channels to provide payers with easy access to comprehensive and up-to-date information on the main revenue obligation areas and on rights, including redress processesand procedures.
Notes:
The Mongolian Tax Administration (MTA) and General Customs Administration (GCA) use a structured and systematic approach for assessing and prioritizing compliance risks for most categories of revenue,in particular high-income taxpayers.
The Mongolian Tax Administration (MTA) and General Customs Administration (GCA) use a structured and systematic approach for assessing and prioritizing compliance risks for most categories of revenue,in particular high-income taxpayers.
Notes:
Audits are conducted according to a documented, and the government completes more than 90% of audits. Although this number fell insignificantly in 2020, it was related to COVID-19 limitations.
Audits are conducted according to a documented, and the government completes more than 90% of audits. Although this number fell insignificantly in 2020, it was related to COVID-19 limitations.
Notes:
The tax arrears accumulated to more than 20% percent of annual collections, but old arrears are below 75% of the stock.
The tax arrears accumulated to more than 20% percent of annual collections, but old arrears are below 75% of the stock.
Notes:
Indicator
Notes:
The Ministry of Finance obtains revenue data at least monthly from entities collecting all central government revenue. This information is disaggregated by revenue type and is consolidated into a report.
The Ministry of Finance obtains revenue data at least monthly from entities collecting all central government revenue. This information is disaggregated by revenue type and is consolidated into a report.
Notes:
Transfer of revenue is undertaken on a daily basis for more than 90% of revenues collected.
Transfer of revenue is undertaken on a daily basis for more than 90% of revenues collected.
Notes:
Complete reconciliation of tax assessments, collections, arrears, and transfers to Treasury takes place at the end of every month.
Complete reconciliation of tax assessments, collections, arrears, and transfers to Treasury takes place at the end of every month.
Notes:
Indicator
Notes:
The Treasury Single Account has been in use for over a decade, and through it most government accounts are centralized at the Bank of Mongolia.
The Treasury Single Account has been in use for over a decade, and through it most government accounts are centralized at the Bank of Mongolia.
Notes:
A cash flow forecast is prepared for the fiscal year, and is updated weekly on the basis of actual cash inflows and outflows. The cash forecasting has been strengthened to reflect 10-year historical data on cash inflows and outflows and new forecasting techniques.
A cash flow forecast is prepared for the fiscal year, and is updated weekly on the basis of actual cash inflows and outflows. The cash forecasting has been strengthened to reflect 10-year historical data on cash inflows and outflows and new forecasting techniques.
Notes:
Ministries, department, and agencies are provided monthly commitment ceilings at the beginning of the year, but commitment ceilings are subject to frequent changes.
Ministries, department, and agencies are provided monthly commitment ceilings at the beginning of the year, but commitment ceilings are subject to frequent changes.
Notes:
Parliament makes significant in-year adjustments to budget allocations not more than twice a year and amendments are undertaken in a fairly transparent way.
Parliament makes significant in-year adjustments to budget allocations not more than twice a year and amendments are undertaken in a fairly transparent way.
Notes:
Indicator
Notes:
The stock of expenditure arrears was below 2% of expenditures in all three years.
The stock of expenditure arrears was below 2% of expenditures in all three years.
Notes:
The stock of payments has been declining over the years as a consequence of control of MoF over expenditure ceilings through GFMIS.
The stock of payments has been declining over the years as a consequence of control of MoF over expenditure ceilings through GFMIS.
Notes:
Indicator
Notes:
In 2018, the Civil Service Council (CSC) launched the Integrated Human Resource System (IHRS), and all budget entities except Defense and Internal Affairs entities now register personnel information in the system.
In 2018, the Civil Service Council (CSC) launched the Integrated Human Resource System (IHRS), and all budget entities except Defense and Internal Affairs entities now register personnel information in the system.
Notes:
The IHRS hosted by CSC is used to upload the data to IPS. The implementation of IPS across the government is close to 97% of budget entities (with a few exceptions in Defense and Internal Affairs), so that payroll data for 4,134 entities is reconciled nationwide.
The IHRS hosted by CSC is used to upload the data to IPS. The implementation of IPS across the government is close to 97% of budget entities (with a few exceptions in Defense and Internal Affairs), so that payroll data for 4,134 entities is reconciled nationwide.
Notes:
An audit trail exist in both IHRS and IPS; in addition, hard copies are kept by budget entities. Authority and basis for changes to personnel records and the payroll are clear.
An audit trail exist in both IHRS and IPS; in addition, hard copies are kept by budget entities. Authority and basis for changes to personnel records and the payroll are clear.
Notes:
An annual payroll audit exists and is conducted depending on the size of the budget. Audit firms or designated national auditors undertake payroll auditing and provide comments on payroll expenses.
An annual payroll audit exists and is conducted depending on the size of the budget. Audit firms or designated national auditors undertake payroll auditing and provide comments on payroll expenses.
Notes:
Indicator
Notes:
Since 2017, the GoM made mandatory by law the use of the e-Procurement system (www.tender.gov.mn) as the single access point for government procurement in Mongolia. The E-procurement system covers procurement information for all procurement methods for goods, services, and works.
Since 2017, the GoM made mandatory by law the use of the e-Procurement system (www.tender.gov.mn) as the single access point for government procurement in Mongolia. The E-procurement system covers procurement information for all procurement methods for goods, services, and works.
Notes:
The regulatory framework for budget procurement, including the latest amendments to the Public Procurement Law of Mongolia (PPLM) in April 2019, is generally comprehensive and makes open and competitive methods the default method of procurement, and provides adequate grounds for public disclosure.
The regulatory framework for budget procurement, including the latest amendments to the Public Procurement Law of Mongolia (PPLM) in April 2019, is generally comprehensive and makes open and competitive methods the default method of procurement, and provides adequate grounds for public disclosure.
Notes:
Through the e-Procurement system (www.tender.gov.mn), which covers 99% of procurement operations, the GoM makes available to the public in a timely manner information on five of six required elements, including (i) legal and regulatory framework for procurement; (ii) government procurement plans for state and local budget entities; (iii) bidding opportunities; (iv) data on resolution of procurement complaints; and (v) annual procurement statistics.
Through the e-Procurement system (www.tender.gov.mn), which covers 99% of procurement operations, the GoM makes available to the public in a timely manner information on five of six required elements, including (i) legal and regulatory framework for procurement; (ii) government procurement plans for state and local budget entities; (iii) bidding opportunities; (iv) data on resolution of procurement complaints; and (v) annual procurement statistics.
Notes:
The existing procurement complaint system in Mongolia meets most (five of six) of the criteria of this dimension. Procurement complaints, as stated in Chapters 54, 55, and 56 of the PPLM (2019), are handled by different government agencies, depending on which part of the procurement process the request for review has been made.
The existing procurement complaint system in Mongolia meets most (five of six) of the criteria of this dimension. Procurement complaints, as stated in Chapters 54, 55, and 56 of the PPLM (2019), are handled by different government agencies, depending on which part of the procurement process the request for review has been made.
Notes:
Indicator
Notes:
The Integrated Budget Law, Law on Accounting, Regulation on Treasury Operations, Regulation on the Government Financial Management Information System (GFMIS), and approved job descriptions for Treasury staff prescribe most roles and responsibilities throughout the expenditure process, ensuring segregation of duties.
The Integrated Budget Law, Law on Accounting, Regulation on Treasury Operations, Regulation on the Government Financial Management Information System (GFMIS), and approved job descriptions for Treasury staff prescribe most roles and responsibilities throughout the expenditure process, ensuring segregation of duties.
Notes:
Commitments are not recorded in the GFMIS, so expenditure control is reliant on containing cash payments within the approved budget allocations and appropriations.
Commitments are not recorded in the GFMIS, so expenditure control is reliant on containing cash payments within the approved budget allocations and appropriations.
Notes:
The degree of compliance with rules for processing and recording transactions is generally high and conducted in accordance with the Regulation on Treasury Operations, with the majority of exceptions properly authorized and justified.
The degree of compliance with rules for processing and recording transactions is generally high and conducted in accordance with the Regulation on Treasury Operations, with the majority of exceptions properly authorized and justified.
Notes:
Indicator
Notes:
In accordance with the Article 69.1 of the Integrated Budget Law of Mongolia, all budget governors shall establish their own internal audit units.
In accordance with the Article 69.1 of the Integrated Budget Law of Mongolia, all budget governors shall establish their own internal audit units.
Notes:
The vast majority of activities on the annual audit plan reviewed focused on financial compliance and financial control.
The vast majority of activities on the annual audit plan reviewed focused on financial compliance and financial control.
Notes:
Annual audit plans exist. The 2020 plan included a number of planned as well as ad hoc engagements as shown in Table 26.1, with details on audit activities in the work plan and whether or not reports per the plan were issued.
Annual audit plans exist. The 2020 plan included a number of planned as well as ad hoc engagements as shown in Table 26.1, with details on audit activities in the work plan and whether or not reports per the plan were issued.
Notes:
Management formally endorses audit recommendations for all entitiesaudited, but the responses are not adequate to determine whether appropriate action will be taken to implement the recommendations. There are no consolidated records of implementation of recommendations.
Management formally endorses audit recommendations for all entitiesaudited, but the responses are not adequate to determine whether appropriate action will be taken to implement the recommendations. There are no consolidated records of implementation of recommendations.
VI. Accounting and reporting
Scores by Dimension
Overall Indicator Score
Indicator
Notes:
Indicator
Notes:
Reconciliations of bank accounts held in the TSA at the Central Bank and at commercial banks are undertaken on a daily basis at the aggregate and analytical levels between the Treasury Department and the Central Bank.
Reconciliations of bank accounts held in the TSA at the Central Bank and at commercial banks are undertaken on a daily basis at the aggregate and analytical levels between the Treasury Department and the Central Bank.
Notes:
The Regulation on Treasury Operations requires at least monthly reconciliation of suspense accounts while in practice unexplained or unusual transactions are recorded and are persistently reconciled on a daily basis through a Smart payment system connected to the Central Bank’s ACH system and the Treasury’s GFMIS.
The Regulation on Treasury Operations requires at least monthly reconciliation of suspense accounts while in practice unexplained or unusual transactions are recorded and are persistently reconciled on a daily basis through a Smart payment system connected to the Central Bank’s ACH system and the Treasury’s GFMIS.
Notes:
Advance payments comprise those made for travel and mobilization of contractors per the contractual terms, and account for around 1.7% of total assets on the Balance Sheet.
Advance payments comprise those made for travel and mobilization of contractors per the contractual terms, and account for around 1.7% of total assets on the Balance Sheet.
Notes:
The GFMIS is the core system of the Treasury used to record and process transactions as well as to manage controls in budget execution, with consideration to appropriate segregation of duties and with access granted to authorized Treasury specialists and civil servants upon signing a confidentiality agreement.
The GFMIS is the core system of the Treasury used to record and process transactions as well as to manage controls in budget execution, with consideration to appropriate segregation of duties and with access granted to authorized Treasury specialists and civil servants upon signing a confidentiality agreement.
Notes:
Indicator
Notes:
In-year budget reports are produced with administrative, program, activity, and economic classifications on a monthly basis, enabling a direct comparison with the approved budget.
In-year budget reports are produced with administrative, program, activity, and economic classifications on a monthly basis, enabling a direct comparison with the approved budget.
Notes:
In-year reports are produced within eight days after the end of the month.
In-year reports are produced within eight days after the end of the month.
Notes:
Budget entities are able to confirm their budget reports with the GFMIS data through the online E-Huulga system, so there are no material concerns regarding data accuracy.
Budget entities are able to confirm their budget reports with the GFMIS data through the online E-Huulga system, so there are no material concerns regarding data accuracy.
Notes:
Indicator
Notes:
Annual Consolidated Financial Statements are prepared in consistency with the approved budget. They include information on revenues, expenditures, financial assets, and liabilities (including long-term liabilities) as well as a cash flow statement.
Annual Consolidated Financial Statements are prepared in consistency with the approved budget. They include information on revenues, expenditures, financial assets, and liabilities (including long-term liabilities) as well as a cash flow statement.
Notes:
2020 financial reports were submitted for audit on May 10, 2021, within six months of the end of the fiscal year.
2020 financial reports were submitted for audit on May 10, 2021, within six months of the end of the fiscal year.
Notes:
The financial statements are stated to have been prepared on ‘modified accrual basis’; however, the legally mandated basis of accounting and reporting is accrual-based IPSAS.
The financial statements are stated to have been prepared on ‘modified accrual basis’; however, the legally mandated basis of accounting and reporting is accrual-based IPSAS.
VII. External scrutiny and audit
Scores by Dimension
Overall Indicator Score
Indicator
Notes:
Indicator
Notes:
All entities of central government are audited annually covering revenue, expenditure, and assets/liabilities irrespective of their source of funding. Only financial audits are conducted for the Parliament annually while audits of its other activities may be carried out by the MNAO, if the Parliament so requests.
All entities of central government are audited annually covering revenue, expenditure, and assets/liabilities irrespective of their source of funding. Only financial audits are conducted for the Parliament annually while audits of its other activities may be carried out by the MNAO, if the Parliament so requests.
Notes:
Audit reports were submitted to Legislature within three months from receipt of the financial statements by the MNAO for the last three completed fiscal years.
Audit reports were submitted to Legislature within three months from receipt of the financial statements by the MNAO for the last three completed fiscal years.
Notes:
There is clear evidence of effective and timely follow-up by the executive and/or the audited entities on the audit recommendations issued by the MNAO.
There is clear evidence of effective and timely follow-up by the executive and/or the audited entities on the audit recommendations issued by the MNAO.
Notes:
In accordance with the Law on State Audit (2020) and the latest amendments to the Constitution (2019), the MNAO operates independently from the executive with respect to appointment and removal of the Auditor General, who is appointed by the Parliament upon proposal by the Speaker of the Parliament.
In accordance with the Law on State Audit (2020) and the latest amendments to the Constitution (2019), the MNAO operates independently from the executive with respect to appointment and removal of the Auditor General, who is appointed by the Parliament upon proposal by the Speaker of the Parliament.
Notes:
Indicator
Notes:
Scrutiny of audit reports is usually completed by the Legislature within three months from receipt of the reports.
Scrutiny of audit reports is usually completed by the Legislature within three months from receipt of the reports.
Notes:
In-depth hearings on key findings take place with most of the responsible officers from audited entities that received a qualified or adverse audit opinion.
In-depth hearings on key findings take place with most of the responsible officers from audited entities that received a qualified or adverse audit opinion.
Notes:
As required by the IBL (Article 8.10.4), Parliament reviews, discusses, and approves the audit reports.
As required by the IBL (Article 8.10.4), Parliament reviews, discusses, and approves the audit reports.
Notes:
Hearings are conducted in public (also televised) with a few exceptions on issues related to national security or similarly sensitive topics. Hearings held at the Parliament and/or by relevant standing committees about the MNAO audit reports are recorded in meeting minutes that are published on the Parliament’s official website. The general public is provided with an opportunity to post comments through the official website on audit matters.
Hearings are conducted in public (also televised) with a few exceptions on issues related to national security or similarly sensitive topics. Hearings held at the Parliament and/or by relevant standing committees about the MNAO audit reports are recorded in meeting minutes that are published on the Parliament’s official website. The general public is provided with an opportunity to post comments through the official website on audit matters.
Assessment
Mongolia 2021/AGILE REPORT/
Country
Mongolia
Region
East Asia & Pacific
Lead Agencies
Government, WB
Report Date
Year
Framework
2016 Framework
Access
Public
Type
National
Status
Final
PEFA Check
Yes
PEFA Partners
