1 KICK-OFF MEETING 30 MARCH 2005 Mr. H.Abdullah KAYA General Overview of the Twinning Project (PART II)

2 Development of Twinning Project Project application was placed during the preparation activities for the PFMC Law numbered 5018 in Fourth Draft of the Contract has been accepted by the EU. The changes and developments in our country in the financial field have been reflected in the scope of the contract. In this respect, the contract has been modified in accordance with our needs: –Project support aiming at the preparation of the Law has been changed to “analysis of the Law” since the PFMC Law numbered 5018 has been enforced, –To provide support for the finalization of continuing secondary legislation works and preparation of tertiary legislation.

3 Sections of the Project The Project is composed of two sections. First Section; development of legislation and structure for alignment with EU and international internal control and audit standards as well as twinning which includes assistance regarding the provision of training on this issue, Second Section; includes supply issues aiming assistance for the establishment of information technology infrastructure of internal audit, in parallel to the project purpose. The supply part will be procured as separate from the twinning part and preparation activities for the procurement contract are still underway.

4 Financial Aspect of the Project Twinning part of the Project is € , Infrastructure part € , Making a total of € Turkey contributes at the amount of € to the supply part which is the technical part of the Project. € will be covered by the EU. € will be covered by the EU.

5 Administrations within the Project 15 public administrations are included within the scope of the Project with the Ministry of Finance. Administrations that will set examples to public administrations in the field of financial management and economy are selected to the scope of the Project which targets all the Turkish public administrations. Pilot implementations will be conducted in the Ministry of Finance and 5 administrations. The administrations selected as pilot administrations in the Project are those which constitute examples for different budget types in the Law.

6 Activities to be Carried Out in the Ministry of Finance  Organizational structure,  Legislation,  Information Technologies infrastructure and  Human resources of; Financial Management and Control Harmonization Unit and Internal Audit Coordination Board shall be subjected to analysis; and Comprehensive and advanced level trainings will be provided to the personnel of these units.

7 Pilot Administrations In addition to the Ministry of Finance;  Ministry of Interior  Ministry of National Education  Presidency of SSK  METU  Ankara Metropolitan Municipality Legislation, administrative structure, information technologies infrastructure and human resources of these administrations will be subjected to on-the-spot analysis within the scope of the Project.

8 Other Spending Agencies Ministry of Energy and Natural Resources Ministry of Health Ministry of Public Works and Settlement Undersecretariat of Customs Undersecretariat of Treasury SPOBRSACMB Court of Accounts Personnel selected from these administrations will be provided training within the scope of the Project.

9 Training Activities Model training programs, Training materials, Model curriculum for implementing institutions, Training strategies for the target group. The following will be prepared and developed to provide general and advanced level training within the scope of the Project:

10 Personnel to be trained under the Project Secretariat personnel for IACB Financial Management and Control Central Harmonisation Unit Personnel Financial Manager 20 Financial Services Unit Personnel 60 Financial Control Officer 60 Accounting Officer 60 Internal Auditor60 making a total of 300 persons.

11 Our Expectations from the Project The following are our expectations from the project; Establishment of our new legislation and organization structures in line with EU, Preparation of our tertiary legislation together, Training of trainers, Development of sample training materials, Pilot implementations and internal audit, Informing the internal auditors on computer assisted audit techniques.

12 THANK YOU General Overview of the Twinning Project (PART II)