Mongolian National Audit Office

Legal Status

MNAO is a highest governing audit organization of Mongolia and accountable under the laws of Mongolia and other resolutions of the State Great Khural. It is prohibited to control the activities of or assign tasks to MNAO and Auditor General of Mongolia by organizations or officials other than Chairman of the National Secutiry Council and State Great Khural. Auditor General of Mongolia is nominated for a period of 6 years by the State Great Khural as recommended by the Speaker and nomination can be extended for one more term.

Long-term Vision

Keep up the state audit services to the levels of the developed countries based on the qualifications and skills of national personnel, hence gain due assessment and recognition by Mongolian State, and people and the international and foreign organizations of similar engagement.

Mission and Principles Valued

Mission of MNAO is to support State Great Khural in exercising its rights of highest state governing body and assist the Government in improving effectiveness and impact of its responsibilities and activities for the benefit of homeland and the people. In order to ensure fulfilment of above mission the following principles will be pursued:

• - Rule of Law: the National Audit Office will ensure the rule of law and conduct all of its activities within the framework of the laws of Mongolia.
• - Fairness: the National Audit Office will ensure a principle of fairness in all its activities and strictly follow the oath and code of conduct for employees of the state audit organization.
• - Transparency: the National Audit Office will keep its activities transparent to a public unless otherwise specified in the laws and contribute to ensuring the people’s right for an access to information through providing its reports on auditing activities to a public either in printed or electronic forms.
• - Impartiality: the National Audit Office will follow the principles of impartiality that emphasizes professionalism and independence from party biases or other political ideologies.
• - Compliance with commonly accepted principles and standards of state audit: the National Audit Office will follow only commonly accepted audit principles of audit and national and international standards of state audit.

Strategic Goals

The National Audit Office will have following strategic goals for a period from 2004 to 2006:
• - Strategic Goal 1. Strengthen the capacity of analysis organizations and study the subject matter from multitude of different angles through introduction of new forms and methods of audit;
• - Strategic Goal 2. Implementation of regular training programmes and strengthening human resources with personnel of knowledge, skills and high ethics to perform their professional duties effectively.
• - Strategic Goal 3. Support for improvement of quality of and access to state services through timely delivery of audit inspection results to a public, that was performed at high level of standards and quality requirements and ensuring fulfillment of recommendations.

Full Powers

MNAO will have following full powers:
• - Conduct audit on the activities of state organizations other than State Great Khural irrespective of their sources of financing. Perform audit only on financial reports of State Great Khural and on the other areas of activities only upon request of the State Great Khural;
• - Conduct audit of legal bodies, which are financed by state budget or contributes to budget revenues or fully or partially sate owned;
• - Conduct audit on activities of international organizations, organizations, programmes and projects that operate based on financing from the international organizations or foreign countries based on their own request;
• - Auditing of use of designated government funds, financial support from the state budget, repayable budget financing, aid and donations of foreign governments, organizations and individuals to the Government of Mongolia, other budget entities and outcomes of such use;
• - state budget investments and their outcomes and year-end consolidated financial reports of the government;
• - Audits on use of budget allocations to intelligence organization, armed forces and executive police sections can be conducted by Auditor General of Mongolia and auditor authorised by the State Great Khural.
• - Audit on consolidated government year-end financial report;
• - Conduct audits on specific issues if necessary and make conclusions;
• - Prepare comments on draft state budget and proposals for improving effectiveness of budget resources and increasing revenues and submit to the State Great Khural;
• - Approve standards, rules, regulations, guidelines on MNAO’s own organization of work and activities, provide professional and methodological guidance to the aimag or capital city audit offices;
• - Get audits conducted within the areas of its full powers by aimag or capital city audit offices;
• - Issue a demand list or send an official notification for remedying any deficiencies or failures revealed during audit, make proposals to respective organizations on improvement of legal acts and other decisions that establish legal norms;

Other Rights

• - Prepare comments on draft state budget and proposals for improving effectiveness of budget resources and increasing revenues and submit to the State Great Khural
• - Provide professional and methodological guidance to the aimag or capital city audit offices
• - Get audits conducted within the areas of its full powers by aimag or capital city audit offices
• - Issue a demand list or send an official notification for remedying any deficiencies or failures revealed during audit, make proposals to respective organizations on improvement of legal acts and other decisions that establish legal norms
• - Submit a proposal to the competent organizations or officials to impose disciplinary penalties specified in the legal acts on officials, who have conducted unlawful activities, did not perform his/her official duties or abused their official powers

Independence of MNAO:

• - It is an organization independent from organizations of executive branch of governance, that is established by the law of Mongolia on State Audit and that reports to the State Great Khural.
• - MNAO is entitled to choose the organization to be audited and demand complete, free, efficient and free of charge of supply of any information necessary for exercising its full powers, approve its own organizational structure and number of staff, approve norms, rules, regulations, guidelines and standards on its work organization and activities and involve external analysts and experts in its audit activities.
• - The Auditor General of Mongolia is nominated by the State Great Khural as recommended by the Speaker for a period of 6 years and nomination can be extended for one more term only. Deputy Auditor General is nominated and terminated by the State Great Khural as recommended by the Auditor General of Mongolia. The Auditor General of Mongolia and Deputy Auditor General can not be sacked or retired except for improper conduct of official duties, inability to perform due to health conditions, court awards for crime punishments. Also it is prohibited to detain, put in jail, impose administrative penalties through courts and search their homes, offices and bodies.
• - Budget of MNAO is approved by the State Great Khural based on MNAO’s proposal. Budget shall meet requirements for ensuring independence of MNAO activities.