1. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU TURKISH PUBLIC INTERNAL FINANCIAL CONTROL SYSTEM Naci AĞBAL General Director of Budget and Fiscal Control Turkish Ministry of Finance www.bumko.gov.tr Workshop on “Audit/Evaluation of Public Internal Financial Control (PIFC) Systems” Ankara, 8 – 9 July 2008

2. PIFC S y stem: 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.

3. Law No. 5018: PIFC System Head of Administration Financial Services Unit Internal Audit Unit Spending Unit Financial management & control based on managerial responsibility Functionally independent internal audit Spending Unit Spending Unit Financial Management and Control Central Harmonization ( Ministry of Finance – DG Budget ) Internal Audit Central Harmonization ( Ministry of Finance - IACB ) Minister Internal Control Realization officer Accounting Unit Ex ante financial control

4. Financial Management and Control Central Harmonization : Main functions  Making arrangements,  Building capacity,  Monitoring and evaluation,  Harmonization,  Execution of international relations.

5. 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

6. 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.

7. Financial Management and Control Central Harmonization : Function of Capacity Building SubjectBeneficiary administrations Number of Participants 200706/ 2008 Financial management and control system Public administrations within the scope of central government 391795 Internal AuditInternal auditors 195593 Performan ce based budgeting Public administrations within the scope of central government 110474 Over 10 thousand people were equipped with information on internal control by means of various programs in 2004, 2005, 2006.

8. 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/DENETİM

9. Financial Management and Control Central Harmonization : Function of Capacity Building e-b ulletin in the field of PIFC :

10. 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.

11. Financial Management and Control Central Harmonization : Function of Capacity Building International Projects :  Twining p roje ct executed with France  “ Strengthening Budget and Internal Control System in Turkey Project ” ”MATRA Pro ject ” executed with Netherlands  Twining project to be executed with United Kingdom

12. 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

13. 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

14. Financial Management and Control Central Harmonization : Harmonization  Harmonizing and guiding the works on establishing and operating financial management and control systems in public administrations.

15. 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.

16. Financial Management and Control : Objectives  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.

17. T hank you …