Union, principally financed by the EU
A joint initiative of the OECD and the European
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
© OECD
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.
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
Realization officer
Realization officer
Spending
Unit
Realization officer
Financial management & control based on managerial responsibility
Internal Control
Functionally independent
internal audit
Financial Management and Control Central Harmonization:
Main functions
Making arrangements,
Building capacity,
Monitoring and evaluation,
Harmonization,
Execution of international relations.
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
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.
Financial Management and Control Central Harmonization :
Function of Capacity Building
Subject
Beneficiary
administrations
Financial management
and control system
Public
administrations
within the scope
of central
government
Internal Audit
Internal auditors
Performance based
budgeting
Public
administrations
within the scope
of central
government
Number of
Participants
2007
06/
2008
391
795
195
593
110
474
Over 10 thousand people were equipped with information on internal control by means of various programs in 2004,
2005, 2006.
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
Financial Management and Control Central Harmonization :
Function of Capacity Building
e-bulletin in the field of PIFC:
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.
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
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
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
Financial Management and Control Central Harmonization :
Harmonization
 Harmonizing and guiding the works on establishing and
operating financial management and control systems in public
administrations.
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 OECDSIGMA.
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.
Thank you…