1 recent developments in the area of public internal financial control in turkey and the relations...

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RECENT DEVELOPMENTS RECENT DEVELOPMENTS IN THE AREA OF PUBLIC IN THE AREA OF PUBLIC

INTERNAL FINANCIAL INTERNAL FINANCIAL CONTROL IN TURKEY CONTROL IN TURKEY AND THE RELATIONS AND THE RELATIONS WITH THE EUROPEAN WITH THE EUROPEAN

UNIONUNION

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PUBLIC FINANCIAL PUBLIC FINANCIAL MANAGEMENT-1MANAGEMENT-1

Public Financial Management,Public Financial Management, covers the covers the institutions and processes related to the institutions and processes related to the management of public resources. This management of public resources. This process consists of three stages.process consists of three stages.

Determination of policies and prioritiesDetermination of policies and priorities Allocation of the resources of the country in Allocation of the resources of the country in

accordance with the specified policies accordance with the specified policies Establishment of control and audit Establishment of control and audit

mechanisms aiming to ensure the mechanisms aiming to ensure the economical, effective and efficient acquisition economical, effective and efficient acquisition and utilization of public resourcesand utilization of public resources

Ability to execute the fiscal policy in an Ability to execute the fiscal policy in an effective manner depends on the capacity of effective manner depends on the capacity of the public financial management.the public financial management.

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Determination of the policies and Determination of the policies and prioritiespriorities

A government which operates A government which operates efficiently is required to make strategic efficiently is required to make strategic decisions considering also the resource decisions considering also the resource constraint, to make medium term plans constraint, to make medium term plans in order to implement these decisions in order to implement these decisions and to form a budget in a way to and to form a budget in a way to support these policies. support these policies.

This depends on reinforcing the policy This depends on reinforcing the policy production capacity and the budget production capacity and the budget processes.processes.

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Allocation of the resources in Allocation of the resources in accordance with the determined accordance with the determined prioritiespriorities: Budget: BudgetBudget;Budget;

is the allocation instrument of the is the allocation instrument of the limited resources.limited resources.

is the instrument of realizing economic is the instrument of realizing economic plan and policies.plan and policies.

is a basic political choice indicating is a basic political choice indicating what amount of the common public what amount of the common public needs is to be covered by the needs is to be covered by the government.government.

is the financial reflection of the is the financial reflection of the government policy.government policy.

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Establishment of the mechanisms relating to Establishment of the mechanisms relating to the control and audit of the utilization of the control and audit of the utilization of public resourcespublic resourcesThese mechanisms are called financial These mechanisms are called financial control.control.

Internal ControlInternal Control Financial Services UnitFinancial Services Unit Ex ante controlEx ante control Ex post internal auditEx post internal audit

External AuditExternal Audit• Another element of the audit mechanism is Another element of the audit mechanism is

financial reporting and the existence of a financial reporting and the existence of a budget code structure and government budget code structure and government accounting compatible with this. Improvement accounting compatible with this. Improvement of financial reporting is among the main of financial reporting is among the main factors of transparency and accountability.factors of transparency and accountability.

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CRITICISM OF OUR PUBLIC CRITICISM OF OUR PUBLIC FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT

SYSTEM -1SYSTEM -1 narrowness of the financial management narrowness of the financial management system and the scope of the budgetsystem and the scope of the budget

increase in the extraincrease in the extra--budgetary expendituresbudgetary expenditures break of the link between the development break of the link between the development

plan and the budgetsplan and the budgets failing to use public resources in an efficient failing to use public resources in an efficient

mannermanner spending process is subject to a strict spending process is subject to a strict

preliminary controlpreliminary control failing to strike a fine authority-responsibility failing to strike a fine authority-responsibility

balance in the spending processbalance in the spending process not enough initiative is provided to the not enough initiative is provided to the

administrations in the course of budget administrations in the course of budget preparation, execution and control processpreparation, execution and control process

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CRITICISM OF OUR PUBLIC CRITICISM OF OUR PUBLIC FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT

SYSTEM - 2SYSTEM - 2 Narrow scope of the audit of the Court of Narrow scope of the audit of the Court of

AccountsAccounts Insufficiency of the budget code structureInsufficiency of the budget code structure Insufficiency of the accounting systemInsufficiency of the accounting system The system does not include the principles of The system does not include the principles of

strategic planning, multi-year budgeting, strategic planning, multi-year budgeting, performance based budgeting, accountability, performance based budgeting, accountability, fiscal transparency, efficient internal financial fiscal transparency, efficient internal financial control, which are predominant in the modern control, which are predominant in the modern concept of public financial managementconcept of public financial management

Insufficiency of the automation and information Insufficiency of the automation and information system of the financial managementsystem of the financial management

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TRANSFORMATION IN PUBLIC TRANSFORMATION IN PUBLIC FINANCIAL MANAGEMENTFINANCIAL MANAGEMENT

Defects of the current systemDefects of the current system Internal factorsInternal factors Increasing public sensitivity in terms of Increasing public sensitivity in terms of

the utilization of public resourcesthe utilization of public resources Transformation demands formed in the Transformation demands formed in the

public sector and academic circlespublic sector and academic circles External FactorsExternal Factors The European Union harmonization The European Union harmonization

process. process. Relations with the IMF and World BankRelations with the IMF and World Bank

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TRANSFORMATION ACTIVITIES TRANSFORMATION ACTIVITIES IN PUBLIC FINANCIAL IN PUBLIC FINANCIAL

MANAGEMENTMANAGEMENT The following include certain changes The following include certain changes

considered to be made within the considered to be made within the framework of the criticised issues:framework of the criticised issues:

8th. Five-year Development Plan8th. Five-year Development Plan Report of the Specialization CommissionReport of the Specialization Commission Programs of 2001, 2002, 2003 Programs of 2001, 2002, 2003 National Program (2001),(2003)National Program (2001),(2003) Accession Partnership DocumentAccession Partnership Document Letters of Intention to IMFLetters of Intention to IMF Action Plan for increasing transparency in Action Plan for increasing transparency in

Turkey and improving efficient Turkey and improving efficient management in the public sectormanagement in the public sector

Government Program and the Urgent Government Program and the Urgent Action Plan of the 59th GovernmentAction Plan of the 59th Government

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NATIONAL PROGRAM (2003)-1NATIONAL PROGRAM (2003)-1

As regards the As regards the chapterchapter “28-Financial “28-Financial Control”Control” of the Negotiation Topics; of the Negotiation Topics;

Adoption of the public internal financial Adoption of the public internal financial control legislation, in compliance with control legislation, in compliance with EU practices, international control and EU practices, international control and auditing standards, auditing standards,

Strengthening the administrative Strengthening the administrative capacity for the prevention of capacity for the prevention of irregularities and fraudirregularities and fraud

Development of the external audit areas Development of the external audit areas in compliance with international in compliance with international standardsstandards

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NATIONAL PROGRAM(2003)-2NATIONAL PROGRAM(2003)-2

Economical, effective and efficient Economical, effective and efficient management of resources, management of resources,

Prevention of irregularities and fraudPrevention of irregularities and fraud Gathering timely and reliable Gathering timely and reliable

informationinformation Concentration of the control and Concentration of the control and

audit activities on the most risky audit activities on the most risky areas determined according to areas determined according to objective risk management analysesobjective risk management analyses

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NATIONAL PROGRAM(2003)-3NATIONAL PROGRAM(2003)-3As regards the institutional structure;As regards the institutional structure; Establishment of Internal Control Establishment of Internal Control

Harmonisation Unit Harmonisation Unit Establishment of Internal Audit Establishment of Internal Audit

Coordination BoardCoordination Board Implementation of systematic and Implementation of systematic and

comprehensive training programs for the comprehensive training programs for the training of internal auditors and those who training of internal auditors and those who are involved in the ex ante control processare involved in the ex ante control process

Establishment of a computer network Establishment of a computer network between the Board, Ministry of Finance and between the Board, Ministry of Finance and the Spending Agencies, the Spending Agencies,

Assigning sufficient number of internal Assigning sufficient number of internal auditorsauditors

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NATIONAL PROGRAM(2003)-4NATIONAL PROGRAM(2003)-4

As regards the external auditAs regards the external audit Amendment of the Law on Turkish Amendment of the Law on Turkish

Court of AccountsCourt of Accounts Improvement of the external auditing Improvement of the external auditing

standardsstandards Strengthening the administrative and Strengthening the administrative and

institutional capacityinstitutional capacity Utilization of Computer Assisted Audit Utilization of Computer Assisted Audit

TechniquesTechniques

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KEY CONCEPTS OF THE NEW KEY CONCEPTS OF THE NEW FINANCIAL MANAGEMENT AND FINANCIAL MANAGEMENT AND

CONTROL SYSTEMCONTROL SYSTEM Managerial responsibility modelManagerial responsibility model Effective, economical and efficient Effective, economical and efficient

utilization of resources utilization of resources Strategic planningStrategic planning Performance Based BudgetingPerformance Based Budgeting Multi-year BudgetingMulti-year Budgeting AccountabilityAccountability Fiscal TransparencyFiscal Transparency Accrual Based AccountingAccrual Based Accounting Internal Control SystemInternal Control System Efficient Internal AuditEfficient Internal Audit Broad-scope external auditBroad-scope external audit

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NEW REGULATIONS IN THE NEW REGULATIONS IN THE PUBLIC FINANCIAL PUBLIC FINANCIAL

MANAGEMENT SYSTEMMANAGEMENT SYSTEM Law on the regulation of Public Law on the regulation of Public Financing and Debt Management, No Financing and Debt Management, No 47494749

Public Procurement Law, No 4734Public Procurement Law, No 4734 Public Procurement Contracts Law, No Public Procurement Contracts Law, No

47354735 Public Financial Management and Public Financial Management and

Control Law, No 5018Control Law, No 5018 Budget Coding StructureBudget Coding Structure Accounting SystemAccounting System Special Revenue and Special Special Revenue and Special

Appropriation Law No 5217Appropriation Law No 5217 Turkish Court of Accounts Draft Law Turkish Court of Accounts Draft Law Personnel Draft LawPersonnel Draft Law

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PUBLIC FINANCIAL MANAGEMENT AND PUBLIC FINANCIAL MANAGEMENT AND CONTROL LAWCONTROL LAW

Scope of the financial management and the budget Scope of the financial management and the budget has been enlargedhas been enlarged

Accountability and fiscal transparency is achievedAccountability and fiscal transparency is achieved The principle of effective, economical and efficient The principle of effective, economical and efficient

utilization of the resources is introducedutilization of the resources is introduced Initiative of the administrations is increasedInitiative of the administrations is increased Strategic planning and Performance based Strategic planning and Performance based

budgeting is introducedbudgeting is introduced Multi-year budgeting is introduced within the Multi-year budgeting is introduced within the

framework of medium term expenditure frameworkframework of medium term expenditure framework Unity of Accounting in the public sector is ensured Unity of Accounting in the public sector is ensured

and publication of the fiscal statistics is foreseenand publication of the fiscal statistics is foreseen Internal Control System is establishedInternal Control System is established Internal audit system is establishedInternal audit system is established Auditing scope of the Turkish Court of Accounts Auditing scope of the Turkish Court of Accounts

has been widenedhas been widened

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SCOPE OF THE FINANCIAL SCOPE OF THE FINANCIAL MANAGEMENT AND BUDGET HAS MANAGEMENT AND BUDGET HAS

BEEN WIDENED BEEN WIDENED Instead of a general and annexed budget, Instead of a general and annexed budget,

a central government budget, which a central government budget, which covers the administrations within the covers the administrations within the scope of the general and special budget scope of the general and special budget and the budgets of regulatory and and the budgets of regulatory and supervisory agencies, will be preparedsupervisory agencies, will be prepared

Public administrations within the scope of Public administrations within the scope of the general government will be subject to the general government will be subject to the same financial management and the same financial management and control systemcontrol system

Budgets will be prepared on a three-year Budgets will be prepared on a three-year basisbasis

All the revenues and expenditures of the All the revenues and expenditures of the administrations will be stated in their administrations will be stated in their budgetsbudgets

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SCOPE OF THE LAW SCOPE OF THE LAW ACCORDING TO ACCORDING TO

ADMINISTRATIONSADMINISTRATIONSGENERAL GOVERNMENTGENERAL GOVERNMENT

SOCIAL SECURITYSOCIAL SECURITY CENTRAL GOVERNMENT LOCAL CENTRAL GOVERNMENT LOCAL ADMINISTRATIONSADMINISTRATIONS

INSTITUTIONSINSTITUTIONS

GENERAL BUDGETGENERAL BUDGET SPECIAL BUDGETSPECIAL BUDGET REGULATORY REGULATORY AND AND SUPERVISORY AGENCIESSUPERVISORY AGENCIES

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SCOPE OF THE LAW ACCORDING SCOPE OF THE LAW ACCORDING TO DUTIES AND TRANSACTIONSTO DUTIES AND TRANSACTIONS

Structure and functioning of the Structure and functioning of the public financial managementpublic financial management

Preparation and implementation of Preparation and implementation of the public budgetsthe public budgets

Accounting and reporting of all the Accounting and reporting of all the financial transactionsfinancial transactions

Financial controlFinancial control

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STRATEGIC PLANNING AND STRATEGIC PLANNING AND PERFORMANCE BASED PERFORMANCE BASED

BUDGETINGBUDGETING Strategic Plan Preparation Guide (SPO)Strategic Plan Preparation Guide (SPO) Performance Based Budgeting Guide Performance Based Budgeting Guide

(Ministry of Finance)(Ministry of Finance) Budgets based on strategic plansBudgets based on strategic plans The compliance of the budgets with the The compliance of the budgets with the

missions, visions and strategic goals in the missions, visions and strategic goals in the strategic plansstrategic plans

Evaluation of the budgets in accordance Evaluation of the budgets in accordance with the performance indicatorswith the performance indicators

Conduction of the performance audits Conduction of the performance audits within the framework of these indicatorswithin the framework of these indicators

ReportingReporting

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MULTI-YEAR BUDGETINGMULTI-YEAR BUDGETING

Preparation of medium-term programPreparation of medium-term program Preparation of medium-term fiscal planPreparation of medium-term fiscal plan Strategic plans to be prepared by the Strategic plans to be prepared by the

administrationsadministrations Preparation of threePreparation of three--year budgets by the year budgets by the

administrations which will cover the administrations which will cover the revenue and expenditure estimates for the revenue and expenditure estimates for the current year and following two yearscurrent year and following two years

Accordingly, the relation between the Accordingly, the relation between the planning and budgeting is established planning and budgeting is established within the framework of medium term within the framework of medium term expenditure program. expenditure program.

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ACCOUNTING UNITY AND FISCAL ACCOUNTING UNITY AND FISCAL STATISTICSSTATISTICS

Accounting unity is being ensured. The same Accounting unity is being ensured. The same accounting system shall be used in the accounting system shall be used in the administrations within the scope of general administrations within the scope of general government. Consolidation and international government. Consolidation and international comparison of all the accounts shall be made comparison of all the accounts shall be made possible. possible.

The Board to be formed under the Ministry The Board to be formed under the Ministry of Finance shall determine the accounting of Finance shall determine the accounting and reporting standards, framework Chart of and reporting standards, framework Chart of Account and the format, period and type of Account and the format, period and type of the reports to be issued that will be applied the reports to be issued that will be applied by the administrations within the scope of by the administrations within the scope of general government.general government.

Preparation and publicly announcement of Preparation and publicly announcement of the fiscal statistics with regard to public the fiscal statistics with regard to public finance is foreseen. finance is foreseen.

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EU STANDARDS FOR THE FISCAL EU STANDARDS FOR THE FISCAL CONTROL SYSTEM REFORMSCONTROL SYSTEM REFORMS

1.1. A law which defines the financial control A law which defines the financial control processprocess

2.2. Purposeful internal control system and Purposeful internal control system and methodsmethods-Accounting and Reporting Standards, and -Accounting and Reporting Standards, and the Policy Documentthe Policy Document-Automation Based Accounting-Automation Based Accounting-Mechanism for the auditing of the funds-Mechanism for the auditing of the funds-Ex ante control over the Payments and -Ex ante control over the Payments and CommitmentsCommitments-Procurement control system-Procurement control system-Control of the public revenues-Control of the public revenues

3.3. Functionally independent internal auditFunctionally independent internal audit4.4. A mechanism to prevent irregularities and A mechanism to prevent irregularities and

fraudfraud

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INTERNAL CONTROL SYSTEMINTERNAL CONTROL SYSTEM

Internal Control :Internal Control : is the entirety of institutional is the entirety of institutional structure, method, operational processes and structure, method, operational processes and tools which enable the conformity with the tools which enable the conformity with the budget and rules in effect, assurance of the budget and rules in effect, assurance of the assets, assurance of the validity and accuracy of assets, assurance of the validity and accuracy of accounting records and facilitation of accounting records and facilitation of managerial decisions through making fiscal managerial decisions through making fiscal information available to be used. information available to be used.

Internal Control Central Harmonization Task Internal Control Central Harmonization Task shall be carried out by the Ministry of Finance. shall be carried out by the Ministry of Finance.

Establishment of an efficient internal control Establishment of an efficient internal control system shall be on the account of the system shall be on the account of the administrations. administrations.

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ORGANIZATIONAL STRUCTURE OF THE ORGANIZATIONAL STRUCTURE OF THE FINANCIAL MANAGEMENT AND CONTROL FINANCIAL MANAGEMENT AND CONTROL SYSTEM IN COMPLIANCE WITH THE EUSYSTEM IN COMPLIANCE WITH THE EU

MINISTRY OF FINANCEMINISTRY OF FINANCE

INTERNAL AUDIT INTERNAL AUDIT INTERNAL INTERNAL CONTROLCONTROL Internal Audit Coor.Internal Audit Coor. Board Board

Central Harmonization Unit Central Harmonization Unit Central Central Harmonization UnitHarmonization Unit

PUBLIC ADMINISTRATIONPUBLIC ADMINISTRATION

INTERNAL AUDIT UNITINTERNAL AUDIT UNIT FINANCIAL SERVICES UNITFINANCIAL SERVICES UNIT

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INTERNAL CONTROL SYSTEMINTERNAL CONTROL SYSTEM

The Internal Audit Coordination The Internal Audit Coordination Board has been established. Board has been established.

Following issues have been planned:Following issues have been planned: Performing audits as risk-basedPerforming audits as risk-based Employment of internal auditors as Employment of internal auditors as

affiliated to the head of public affiliated to the head of public administrationadministration

Certificated internal auditorsCertificated internal auditors systematic and continuous audit in systematic and continuous audit in

accordance with the internal audit accordance with the internal audit standardsstandards

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AUDIT OF THE COURT OF AUDIT OF THE COURT OF ACCOUNTS ACCOUNTS

ExEx ante control function of the Court ante control function of the Court of Accounts has been abolished. of Accounts has been abolished.

The scope of the audit of the Court of The scope of the audit of the Court of Accounts has been expanded. Central Accounts has been expanded. Central government administrations, social government administrations, social security institutions and local security institutions and local administrations within the scope of administrations within the scope of general government shall be audited general government shall be audited by the Court of Accounts. by the Court of Accounts.

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IMPORTANCE OF THE FINANCIAL IMPORTANCE OF THE FINANCIAL SERVICES UNIT IN THE SYSTEMSERVICES UNIT IN THE SYSTEM

Increasing financial tasks, authority and Increasing financial tasks, authority and responsibilities of the public administrations shall responsibilities of the public administrations shall be carried out by the financial services units of the be carried out by the financial services units of the administrations. administrations.

Conduction of the financial management and control Conduction of the financial management and control tasks within the administration in a sound manner is tasks within the administration in a sound manner is dependent on the organizational structure and dependent on the organizational structure and capacity of this unit. capacity of this unit.

This unit assumes some important functions on the This unit assumes some important functions on the issues such as effective use of public resources, issues such as effective use of public resources, prevention of irregularity and corruption, prevention prevention of irregularity and corruption, prevention of the mistakes arising from the lack of information, of the mistakes arising from the lack of information, assurance of accountability, fiscal transparency and assurance of accountability, fiscal transparency and providing information to public opinion.providing information to public opinion.

These functions entail a sound financial services These functions entail a sound financial services unit which is directly affiliated to the head of public unit which is directly affiliated to the head of public administration. administration.

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EXEX ANTE CONTROL ANTE CONTROL -1-1 The article 58 of the Law The article 58 of the Law No No

5018 regulates the task of ex5018 regulates the task of ex ante control and the article 59 ante control and the article 59 regulates the qualifications and regulates the qualifications and appointment of financial control appointment of financial control officer.officer.

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EX ANTE CONTROL-2EX ANTE CONTROL-2 Ex ante control process Ex ante control process isis set out in the set out in the

scope of the Law in a way to cover the scope of the Law in a way to cover the following:following: allocating appropriationsallocating appropriations undertaking commitmentsundertaking commitments holding tenders and concluding contractsholding tenders and concluding contracts receiving goods or servicesreceiving goods or services carrying out workscarrying out works issuing payment ordersissuing payment orders similar financial decisions to be taken by the similar financial decisions to be taken by the

authorizing officerauthorizing officer The ex ante control task shall be assumed by The ex ante control task shall be assumed by

the financial control officers who are appointed the financial control officers who are appointed by the head of public administration and by the head of public administration and directly affiliated to him. However, in the directly affiliated to him. However, in the decentralized units of the public administrations decentralized units of the public administrations within the scope of general budget, this task within the scope of general budget, this task shall be carried out by provincial treasurers.shall be carried out by provincial treasurers.

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EX ANTE CONTROL-EX ANTE CONTROL-33 Ex ante control mechanism foreseen by the Law Ex ante control mechanism foreseen by the Law

is based on the principle that compliance audit is based on the principle that compliance audit should be performed before the payment by a should be performed before the payment by a certificated financial control officer at various certificated financial control officer at various stages of the spendingstages of the spending process. process.

Financial control officer who will take part at Financial control officer who will take part at the different stages of the the different stages of the spendingspending process process shall control the compliance of the shall control the compliance of the transactions with the legislation and thereupon transactions with the legislation and thereupon shall grant visa or positive opinion. shall grant visa or positive opinion.

In the event that the transactions not visaed or In the event that the transactions not visaed or not approved are realized, the authorizing not approved are realized, the authorizing officer shall be deemed to have assumed officer shall be deemed to have assumed personal responsibility.personal responsibility.

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EX ANTE CONTROL-EX ANTE CONTROL-44 Ex ante control mechanism foreseen by the Law Ex ante control mechanism foreseen by the Law

is based on the principle that compliance audit is based on the principle that compliance audit should be performed before the payment by a should be performed before the payment by a certificated financial control officer at various certificated financial control officer at various stages of the spendingstages of the spending process. process.

Financial control officer who will take part at Financial control officer who will take part at the different stages of the the different stages of the spendingspending process process shall control the compliance of the shall control the compliance of the transactions with the legislation and thereupon transactions with the legislation and thereupon shall grant visa or positive opinion. shall grant visa or positive opinion.

In the event that the transactions not visaed or In the event that the transactions not visaed or not approved are realized, the authorizing not approved are realized, the authorizing officer shall be deemed to have assumed officer shall be deemed to have assumed personal responsibility.personal responsibility.

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AUTHORITY-AUTHORITY-RESPONSIBILITYRESPONSIBILITY

Political and managerial authority Political and managerial authority and responsibilities have been and responsibilities have been separated. separated.

AuthoritiesAuthorities of the process : of the process : The MinisterThe Minister Head of public administrationHead of public administration Authorizing officerAuthorizing officer Director of financial services unitDirector of financial services unit Financial control officersFinancial control officers Realization officersRealization officers Accounting officersAccounting officers Internal auditors Internal auditors

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AUTHORITIES IN THE AUTHORITIES IN THE MANAGEMENT AND CONTROL MANAGEMENT AND CONTROL

PROCESS-1PROCESS-1 THE MINISTER is politically THE MINISTER is politically

responsible responsible for:for: Implementation of government policiesImplementation of government policies Preparation and implementation of the Preparation and implementation of the

budgetsbudgets Coordination and cooperation with Coordination and cooperation with

other ministriesother ministries Utilization of the resourcesUtilization of the resources Providing information to public opinionProviding information to public opinion

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AUTHORITIES IN THE MANAGEMENT AUTHORITIES IN THE MANAGEMENT AND CONTROL PROCESS-AND CONTROL PROCESS-22

Head of public administration:Head of public administration: is responsible for is responsible for the budget of the public administration. the budget of the public administration.

Head of public administration is responsible for:Head of public administration is responsible for:

Preparing and implementing the strategic Preparing and implementing the strategic plans and budgets of the administrationsplans and budgets of the administrations

Ensuring that the resources are provided and Ensuring that the resources are provided and utilized in an effective, economical and utilized in an effective, economical and efficient wayefficient way

Supervising and monitoring the operation of Supervising and monitoring the operation of the financial management and control systemthe financial management and control system

Fulfilling the task and responsibility set out in Fulfilling the task and responsibility set out in the Law towards the Minister; towards the Law towards the Minister; towards their their local councils in local administrations.local councils in local administrations.

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Authorizing OfficersAuthorizing Officers: Head of each : Head of each spending unit to which appropriation is spending unit to which appropriation is allocated with the budget is the allocated with the budget is the authorizing officer. authorizing officer.

The authorizing officerThe authorizing officer grants spending grants spending instruction and signs the payment order. instruction and signs the payment order.

Authorizing OfficersAuthorizing Officers are responsible forare responsible for:: the compliance of spending instructions with the compliance of spending instructions with

the budget principles and basics,the budget principles and basics, the compliance of spending instructions with the compliance of spending instructions with

the other laws, by-laws and regulationsthe other laws, by-laws and regulations Utilization of appropriations in an effective, Utilization of appropriations in an effective,

economical and efficient mannereconomical and efficient manner

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PROCESS-PROCESS-44 Director of financial services unitDirector of financial services unit Financial Services Unit carries out the tasks Financial Services Unit carries out the tasks

such as:such as: Preparing the budget of the public Preparing the budget of the public

administrationadministration Preparing the budget estimates for the Preparing the budget estimates for the

following two yearsfollowing two years Keeping the budget recordsKeeping the budget records Issuing the appropriation dispatch Issuing the appropriation dispatch

documentsdocuments Compiling and reporting the data related to Compiling and reporting the data related to

the budget implementation resultsthe budget implementation results Carrying out the financial transactions on Carrying out the financial transactions on

making expenditures and collecting revenuesmaking expenditures and collecting revenues Preparing the Final AccountPreparing the Final Account

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Financial Control Officer :Financial Control Officer :

Grants visa or positive opinion on the Grants visa or positive opinion on the spending decisions upon a preliminary spending decisions upon a preliminary controlcontrol

The decisions and transactions to be The decisions and transactions to be subjected to visa or positive opinion are subjected to visa or positive opinion are determined by the Ministry of Finance. determined by the Ministry of Finance.

Financial Control Officers are Financial Control Officers are responsible for the visas and positive responsible for the visas and positive opinions which they have granted. opinions which they have granted.

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AUTHORITIES IN THE AUTHORITIES IN THE MANAGEMENT AND MANAGEMENT AND

CONTROL PROCESSCONTROL PROCESS-6-6 REALIZATION OFFICERS:REALIZATION OFFICERS:

carry out the following dutiescarry out the following duties Doing or having the work doneDoing or having the work done Receiving goods or servicesReceiving goods or services Completing the receiving Completing the receiving

formalitiesformalities Documenting the transactionsDocumenting the transactions Issuing necessary documents for Issuing necessary documents for

paymentpayment

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PROCESS-7PROCESS-7 Accounting Officer:Accounting Officer: At the payment stage, controls the At the payment stage, controls the

following aspects in the payment order following aspects in the payment order document and its appendices: document and its appendices: Signature of the authorized personsSignature of the authorized persons The completeness of the documents The completeness of the documents

listed in the regulations pertaining to listed in the regulations pertaining to paymentpayment

The existence of any material errorThe existence of any material error The information on the identity of the The information on the identity of the

rightful personrightful person

realizes the payment and keeps realizes the payment and keeps accounting records. accounting records.

1 recent developments in the area of public internal financial control in turkey and the relations...

Documents

management of public

financial reflection

common public needs

audit mechanisms

budget allocation

limited resources

internal audit external

budget narrowness