National Seminar on Developing a Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey Mahir ADANIR Mustafa SUYABATMAZ 10 September 2013 Ankara - Turkey

Migrated to accrual basis by Public Financial Management and Control Law(2004), Accrual basis and cash basis Simultaneous tracking of budget realizations through analytical budget classifications. By using reflection accounts. National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Public Accounting System in Turkey

National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Analitical Budget Classification InstitutionalFunctionalFinancialEconomical IIIIIIIVIIIIIIIIIIIIIIV

There was a Budget Oriented Reporting, so the transactions, which were included optionally into the Budget Law, were reported instead of all activities of the government. While data of the budgetary institutions were produced from the cash based accounting system, data of the other institutions were compiled with questionnaires. Government financial tables did not reflect the real financial situation of the government. National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey How had been the government financial tables produced before 2004 ? (1)

The governments non-financial assets couldnt be integrated into the accounting process and couldnt be reported. Accounting systems used to have and didnt provide information about: Payment arrears, Accrued expenses, Incurred liabilities due to accrued expenses such as interest, Accrued revenues other than tax revenues, Claimed receivables due to accrued revenues such as interest, and Contingent liabilities. Compiling the government financial data for all public entities was almost impossible. Because, accounting system couldnt be used to measure general governments size, public accounts couldnt be managed effectively. How had been the government financial tables produced before 2004 ?

New Law was enacted in 2003, The scope of the Law was determined as «General Government Sector» according to the international criteria, the Law has brought following innovations; Common rules have been introduced for the institutions within the scope of central government, local government and social security institutions; and financial system of the institutions has been made uniform, Analytical budget classification being comprised by the institutional, functional and economic sub- classification has been developed, For providing the implementation unity, a standard government accounting system was established and all of the institutions have been obliged to implement this standard. National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Transition Stages of New System -1- Adoption of The New Public Finance Management and Control Law

Accrual based accounting system was put into practice between 2004 and 2006, Frame accounting regulation and frame chart of accounts were created for the general govenment, Under the coordination of the Ministry of Finance accounting arrangements of central government, local government and social security institutions were made and their detail charts of accounts were created The institutions are obliged to issue following tables Trial Balance, Balance Sheet, Operating Tables, Cash Flow Table, The Tables for Budget Implementation Results etc. Transition Stages of New System -2- Establishment of Accrual Based Accounting System

All accounting units began to operate online in the central IT system (Say 2000i system) developed by Ministry of Finance throughout the country for accounting service of budgetary institutions, Instant monitoring of financial transactions of budgetary institutions has been ensured, Compilation of quarterly financial data of app local government units was ensured through Public Expense and Accounting IT System (KBS). National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Transition Stages of New System -3- Generation of IT Infrastructure

For putting new accrual based accounting system into practice ; 490 accountants were trained as trainers in the field. These trainers trained 9000 accounting staff members throughout the country. National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Transition Stages of New System -4- Training Activities

As a result of enacting new Law and Accrual Based Accounting System, following tables of all units and sub-sectors of general government and general government sector could be issued: Balance Sheet, Operating Results Table, The Cash FlowTable, Budget Tables and The statistics according to GFSM National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Transition Stages of New System -5- Production of The Governments Balance Sheet and the GFS Tables

It was established a working group for determining the scope of general government sector according to international criteria (ESA 95). This working group consists of Ministry of Finance, Undersecretariant of Treasury, Turkish Republic of Central Bank, Ministry of Development, Turkish Statistical Institute. National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Redetermination of Coverage of General Government Sector

In 2008, a workshop was held to redetermine the coverage of general government. Experts from IMF, EUROSTAT and from some EU countries contributed to the workshop. In 2009, coverage of general government sector was redetermined according to the result of workshop and the international criteria by this working group. The process will be repeated once in a two-year period. Folowing decision tree was used in order to classify an institutional unit in general government or not. National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Redetermination of Coverage of General Government Sector

DECISION TREE

GENERAL GOVERNMENT CENTRAL GOVERNMENT General Budget Institutions Special Budget Institutions Regulatory and Supervisory Institutions LOCAL GOVERNMENT Provincial Special Administrations Municipalities Administrations Affiliated to Municipalities SOCIAL SECURITY INSTITUTIONS Social Security Institution Turkish Employment Agency

GENERAL GOVERNMENT CENTRAL GOVERNMENT General Budget Institutions Special Budget Institutions Regulatory and Supervisory Institutions (except from CMB and BRSA) Revolving Funds Extra Budgetary Funds__ Social Facilities Other Institutions of Central Government LOCAL GOVERNMENT Provincial Special Administrations MunicipalitiesDevelopment Agencies Provincial directorates of youth and sports Local Government Unions SOCIAL SECURITY INSTITUTIONS Social Security Institutions Unemployment Insurance Fund Turkish Employment Agency

As the Ministry of Finance we compile data; From central government in real time, From extra budgetary institutions quarterly. From local governments monthly, From social security institutions quarterly. And disseminate montly data in t+15 days, quarterly data in t+3 months National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Data Compiling Periods

Central Government General Budget Institutions (1530) Special Budget Institutions (270) Regulatory and Supervisory Institution (8) Extra Budgetary Funds (4) Social Facilities (342) Revolving Funds Other Extra Budgetary Institutions (11) Accounting Unit of Government Dept (Every Friday), Tax Units (Every Morning), Accounting Unit of Precidency of Republic (Every Month) Penal Institutions with Prisons and Working Places (Every Month) Public Procurement Authority, Energy Market Regulatory Authority, Information and Communications Tecnologies Authority (Every Month) Compiled quarterly

Local Government Municipilaties (2949) Provincial Special Administration (83) Local Goverment Unions (1714) Development Agencies (26) Provincial Youth and Sport Agencies (81) Compiled monthly Compiled quarterly

Social Security Sector Social Security Institution Turkish Employment Institution Unemployement Insurance Fund Compiled quarterly

According to the Turkish Official Statistics Programme, Monthly tables are disseminated in t+15 days. Quarterly tables are disseminated in t+3 months Annual tables are disseminated in t+5 months. We send GFS tables of central government monthly and GFS tables of the general government annually to the IMF. And also TURKSTAT, Central Bank and Treasury use these data for their statistics. National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Reporting and disseminating general government financial tables

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