www.bumko.gov.tr

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TURKISH PUBLIC INTERNAL FINANCIAL CONTROL SYSTEM
Naci AGBAL General Director of Budget and Fiscal
ControlTurkish Ministry of Finance

• www.bumko.gov.tr

Workshop on Audit/Evaluation of Public
InternalFinancial Control (PIFC)
SystemsAnkara , 8 9 July 2008
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PIFC System Legal Framework

• Public Financial Management and Control Law
  No.5018
• was adopted on 10.12.2003.
• was amended by Law No. 5436 and dated 22.12.2005.
• was amended by Law No. 5628 and dated 25.04.2007
• 50 pieces of secondary and tertiary legislation
  were put into effect.

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Law No. 5018 PIFC System

• Financial Management and Control Central
  Harmonization
• (Ministry of Finance DG Budget)

Internal Audit Central Harmonization (Ministry
of Finance-IACB)
Minister
Head of Administration
Financial Services Unit
Internal Audit Unit
Ex ante financial control
Accounting Unit
Spending Unit
Spending Unit
Spending Unit
Realization officer
Realization officer
Realization officer
Functionally independent internal audit
Financial management control based on
managerial responsibility
Internal Control
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Financial Management and Control Central
HarmonizationMain functions

• Making arrangements,
• Building capacity,
• Monitoring and evaluation,
• Harmonization,
• Execution of international relations.

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Financial Management and Control Central
Harmonization Function of Making Arrangements

• Procedures and Principles on Internal Control and
  Ex ante Financial Control
• By-Law on Working Procedures and Principles of
  Strategy Development Units
• By-Law on Financial Services Expert Position
• Communiqué on Public Internal Control Standards
• Guide for Head of Administration
• Communiqués on Authorizing Officers
• Guide for Performance Based Budgeting
• By-Law on Accountability Reports to be Prepared
  by Public Administrations
• By-Law on Performance Programs to be Prepared by
  Public Administrations

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Financial Management and Control Central
Harmonization Function of Capacity Building

• Strategy development units have been established
  in public administrations.
• Internal auditor cadres as well as financial
  services expert and financial services assistant
  expert cadres have been created.
• 450 appointments have been made to the financial
  services expert positions.
• 646 internal auditors have been subjected to
  training and granted their certificates. 142
  internal auditors are still being subjected to
  training but their trainings will be completed
  this month.

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Financial Management and Control Central
Harmonization Function of Capacity Building
Subject Beneficiary administrations Number of Participants Number of Participants
Subject Beneficiary administrations 2007 06/ 2008
Financial management and control system Public administrations within the scope of central government 391 795
Internal Audit Internal auditors 195 593
Performance based budgeting Public administrations within the scope of central government 110 474
Over 10 thousand people were equipped with information on internal control by means of various programs in 2004, 2005, 2006. Over 10 thousand people were equipped with information on internal control by means of various programs in 2004, 2005, 2006. Over 10 thousand people were equipped with information on internal control by means of various programs in 2004, 2005, 2006. Over 10 thousand people were equipped with information on internal control by means of various programs in 2004, 2005, 2006. Over 10 thousand people were equipped with information on internal control by means of various programs in 2004, 2005, 2006.
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Financial Management and Control Central
Harmonization Function of Capacity Building

• Web sites in the field of PIFC

www.bumko.gov.tr/kontrol
www.bumko.gov.tr/PEB
www.bumko.gov.tr/DENETIM
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Financial Management and Control Central
Harmonization Function of Capacity Building

• e-bulletin in the field of PIFC

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Financial Management and Control Central
Harmonization Function of Capacity Building

• 8 booklets in the field of PIFC have been
  published and distributed to public
  administrations.

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Financial Management and Control Central
Harmonization Function of Capacity Building

• International Projects
• Twining project executed with France
• Strengthening Budget and Internal Control System
  in Turkey Project MATRA Project executed with
  Netherlands
• Twining project to be executed with United
  Kingdom

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Financial Management and Control Central
Harmonization Function of Monitoring and
Evaluation

• Monitoring and evaluating internal arrangements
  of public administrations on internal control and
  ex ante financial control

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Financial Management and Control Central
Harmonization Function of Monitoring and
Evaluation

• On-site monitoring and evaluation of financial
  management and control structures and operations
  of public administrations

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Financial Management and Control Central
Harmonization Harmonization

• Harmonizing and guiding the works on establishing
  and operating financial management and control
  systems in public administrations.

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Financial Management and Control Central
Harmonization International Relations

• Negotiations on financial control chapter are
  being executed with EU Commission.
• Collaborative works are being executed with
  OECD-SIGMA.

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Financial Management and ControlObjectives

• Full harmonization of PIFC system with EU acquis
  will be ensured.
• Administrative capacity of Financial Management
  and Control Central Harmonization Unit will be
  strengthened.
• Works on strengthening and supporting
  administrative capacities of public
  administrations in the field of financial
  management and control will continue.

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Thank you