MNT'000

Financial accounting system

Financial Management and Controlling Department of TDB has responsibilities of which elaborates and revises accounting policy of the Bank while monitoring its implementation,   prepares investment plan, income and expense budget and controlling its performance, processes cost allocation for business units, provides management team with executive financial packages,  cooperates with external auditors on consolidated audited financial reports for public, local and overseas customers with accurate financial information to meet their needs for decision-making.

The Department complies with Mongolian Law on Accounting, Banking Act of Mongolia, IAS, IFRS, Mongolian Law on Corporate Income Tax and other respective laws, and the guideline of banking accounting approved jointly by the President of Bank of Mongolia and Minister of Finance, and other financial reporting guidelines and procedures issued by Minister of Finance and Bank of Mongolia as well as internal accounting procedures and guidelines approved by Chief Executive Officer of TDB.

Conducting bank’s accounting and financial statements in accordance with international accounting standards enables immediate access to consolidate financial information for each banking units and its employees and provides conditions for optimal financial and economic decision-making and for positive impacts on bank’s income and expenditure savings.

Financial Management and Controlling Department consists of the units of which those are in charge of accounting, general ledger, financial analysis/statements and financial planning. The Department provides general management for Financial Accounting and Controlling Unit, Sales and Procurement Unit and conducts step-by-step monitoring as well dual monitoring on Bank’s contracts entry, audits  and on daily transactions of branches and settlement centers onsite, offsite basis.

Internal audit

Internal Audit Department of Trade and Development Bank operates under the supervision of Board of Directors and Audit Committee and reports its operation performance.

The main purpose of the internal auditing is to assess the effectiveness of risk management and internal control system of the Bank independently and to provide an objective assurance and consulting activity designed to improve an organization’s operations and to create an additional value for the Bank itself.

The Internal Audit Department provides monitoring and evaluation on the effectiveness, optimality of risk management and internal control system, implementation of all applicable laws, policies, procedures, business ethics in the bank’s operations. In addition, the Internal Audit Department advises the Executive Directors and other respective departments, units on measures how to assess, reduce and identify potential risks, to correct non-compliance and significant errors in order to improve bank’s operations in overall. Moreover the Department reports the final result and implementation of audit guidance to the Board of Directors and executes monitoring process focused on the advancement of bank’s operations and protecting trilateral interests of bank, shareholders and customers.

April 30, 2023

(MNT million)

(MNT million)