PUBLIC FINANCIAL MANAGEMENT AND
CONTROL LAW
FIRST PART
General Provisions
FIRST SECTION
Purpose, Scope and
Definitions
Purpose
Article 1-
The purpose of this Law is to regulate the structure and functioning of the
public financial management, the preparation and implementation of the public
budgets, the accounting and reporting of all financial transactions, and
financial control in line with the politics and objectives covered in the
development plans and programs, in order to ensure accountability, transparency
and the effective, economic and efficient collection and utilization of public
resources.
Scope
Article 2- This
Law covers the financial management and control of public administrations
within the scope of general government, encompassing public administrations
within the scope of central government, social security institutions, and local
administrations.
Without
prejudice to the provisions of international agreements, the utilization and
control of European Union funds and domestic and foreign resources allocated to
public administrations shall be subject to the provisions of this Law.
(Amendment:
22.12.2005 - 5436/10-b art.) Regulatory and supervisory agencies are subject
only to the Articles 3, 7, 8, 12, 15, 17, 18, 19, 25, 42, 43, 44, 47, 48, 49,
50, 51, 52, 53, 54, 68 and 76, 78 of this Law.
Definitions
Article 3-
Particularly, in the enforcement of this Law;
a)
Public administrations within the scope of general government: refer to public
administrations within the scope of central government, social security
institutions and local administrations, which are determined according to
international standards.
b)
Public administrations within the scope of central government: refer to public
administrations in charts I, II and III of this Law.
c)
Regulatory and supervisory agencies: refer to agencies defined in chart III of
this Law.
d)
Social security institutions: refer to public institutions defined in chart IV
of this Law.
e)
(Amendment: 22.12.2005 - 5436/10-a art.) Local administrations: refer to
municipalities, special provincial administrations and to associations and
administrations related to or established by them, or where they are a member
which perform public activities with authorities limited to specific geographic
regions and services.
f)
Budget: refers to the document which indicates the revenue and expenditure
estimations of a certain period and issues related to their realization, and
which is put into force as required by the relevant procedures.
g)
Public resources: refer to public revenues including those acquired through
borrowing, and to movable and immovables, deposits, receivables and rights and
all kinds of valuables, that all belong to the public.
h)
Public expenditure: refers to public expenditures consisting of payments for
the goods and services acquired and for the works done pursuant to their
respective laws, social security contributions, interest payments of domestic
and foreign debts, general borrowing expenditures, payments resulting from the
discounted sale of borrowing instruments, economic, financial and social
transfers, donations and grants, and other expenditures.
i)
Public revenue: refers to taxes, levies, charges, holding funds, shares or
similar revenues acquired pursuant to their respective laws, revenues from
interests, surcharges and fines, all types of revenues acquired from movable
and immovables, revenues obtained from services rendered, revenues from
premium-sold borrowing instruments, deductions from social security premiums,
donations and grants received, and other revenues.
j) Special revenue: refers to revenues indicated in
the general budget, which are obtained from the activities, excluding public
duties and services, stated in relevant laws of administrations within the
scope of general budget, and which are acquired from deliveries of their
priceable goods and services.
k)
Spending unit: refers to the unit for which appropriation is allocated within
the budget of the public administration, and which is authorized to spend.
l)
Public financial management: refers to legal and administrative systems and
processes that will ensure the effective, economic and efficient utilization of
public resources in accordance with defined standards.
m)
Financial control: refers to the control system, institutional structure,
method and processes, which are established to ensure the effective, economic
and efficient utilization of public resources in line with determined aims and
the rules established by relevant legislations.
n) Strategic plan: refers to the plan which includes
medium and long term goals, basic principles and policies, objectives and
priorities and performance indicators of public administrations, as well as the
methods and the resource distribution to achieve these.
o) Fiscal year: refers to the calendar year.
SECOND SECTION
Public Finance
Public Finance
Article 4- Public
finance covers the collection of revenues, exercise of spending, financing of
deficits and the management of public assets, debts and other liabilities.
Public
finance is conducted according to the principles of centralized and
decentralized management. The duties of public administrations are clearly
defined in their relevant laws and taken as a basis for resource allocation.
Article 5-
Fundamental principles of public finance are as follows:
a) Public financial management shall be established and operated as a
consistent whole.
b) Public finance shall be
administrated in a manner to ensure the accountability of public officials.
c) Fiscal policy shall be formed and
governed in concordance with macroeconomic and social objectives.
d) Public financial management shall
be conducted in line with the budget appropriated by the Turkish Grand National
Assembly.
e) Public financial management shall
ensure fiscal discipline.
f) Public financial management shall
create the environment needed to develop the public choices in a manner to
ensure economic, financial and social efficiency.
g) In producing goods and services
of public administrations and meeting their needs, it is required to make
cost-efficiency or cost-benefit or other necessary economic and social analyses
in accordance with the principles of economic or social efficiency.
Without prejudice to the provisions of relevant laws, the procedures and
principles related to the implementation of the principles of public finance
shall be defined and monitored by the Ministry of Finance.
Unity of Tre
Article
6- The revenues, expenditures, collections, payments, cash planning and
debt management of public administrations within the scope of central
government shall be administered so as to ensure the unity of tre
All revenues of public
administrations defined in chart I of this Law shall be deposited to the Tre
The provisions of the Law No 4749
dated 28/3/2002 and the Law No 4059 dated 9/12/1994 shall apply to all kinds of
domestic and foreign borrowings, foreign grants received, extension of loans
and grants and relevant repayments, tre
THIRD SECTION
General Principles on the
Utilization of Public Resources
Fiscal Transparency
Article 7- In order to ensure supervision in
the acquisition and utilization of all types of public resources, the public
shall be informed timely. Accordingly, the following are compulsory:
a) To clearly define the duties,
authorities and responsibilities,
b) To prepare government policies,
development plans, annual programs, strategic plans and budgets; to negotiate
them with the authorized bodies; to carry out their implementation and to make
the implementation results and the relevant reports available and accessible to
the public,
c) To publicize the incentives and
subsidies provided by the public administrations within the scope of general
government, in periods not exceeding one year,
d) To establish public accounts in
line with a standard accounting system and an accounting order in accordance
with generally accepted accounting principles.
Public administrations are
responsible for making necessary arrangements and taking me
Accountability
Article 8- Those
who are assigned duties and vested with authorities for the acquisition and
utilization of public resources of all kind are accountable vis-à-vis the
authorized bodies and responsible for the effective, economic and efficient
acquisition, utilization, accounting and reporting of the resources on the
basis of law, as well as for taking necessary me
Strategic Planning and Performance
Based Budgeting
Article 9- In order to form missions and visions for future
within the framework of development plans, programs, relevant legislation and
basic principles adopted; to determine strategic goals and me
In order to present public services at the
required level and quality, public administrations shall base their budgets and
their program and project-based resource allocations on their strategic plans,
annual goals and objectives, and performance indicators.
The Undersecretariat of State Planning
Organization is authorized to determine the strategic planning calendar and the
public administrations to be in charge of preparing strategic plans, and to set
out the principles and procedures concerning the correlation of strategic plans
with development plan and programs.
Public administrations shall prepare their
budgets on performance basis and in concordance with the mission, vision,
strategic goals and objectives included in the strategic plans. The Ministry of
Finance is authorized to define the procedures and principles on the compatibility
of administration budgets with the performance indicators stated in the
strategic plans, and activities to be carried out by these administrations
within this framework and other issues on performance based budgeting.
The performance
indicators that shall be jointly set by the Ministry of Finance, the
Undersecretariat of State Planning Organization and relevant public
administration shall be included in the budgets of these administrations.
Performance audits are carried out in the framework of these indicators.
FOURTH SECTION
Accountability of Ministers and Heads of Public
Administrations
Ministers
Article 10- The Ministers are responsible for
implementing government policy and for ensuring the compliance of the
preparation and implementation of strategic plans and budgets of their
ministries and those of the administrations affiliated, related or associated
to, with the development plans and annual programs. Ministers are also
responsible for establishing the coordination and cooperation with other ministries
in this framework. This responsibility is assigned to the Minister of National
Education for Higher Education Council, universities and high technology
institutes, and to the Minister of Interior for local administrations.
The Ministers are accountable vis-à-vis the
Prime Minister and the Turkish Grand National Assembly for the effective,
economic and efficient utilization of public resources.
(Amendment: 22.12.2005 - 5436/10-a art.) Ministers shall inform the public within the
first month of every fiscal year about the goals, objectives, strategies,
assets, liabilities and annual performance programs of their administrations.
Heads of Public Administrations
Article 11- Respectively, in ministries the
undersecretary, in other public administrations the highest administrator, in
special provincial administrations the governor and in municipalities the mayor
is the head of public administration. In the Ministry of National Defense
however, the Minister is the head of public administration.
The heads of public administrations are
responsible for the preparation and implementation of the strategic plans and
budgets of their administration in conformity with the development plan, annual
programs as well as with the strategic plan and performance objectives and
service requirements of the administration; for the effective, economic and
efficient acquisition and utilization of the resources under their
responsibility; for the prevention of losses and abuses of such resources; for
monitor and supervision of the operation of financial management and control
system; and for the accomplishment of the duties and responsibilities defined
with this Law. Concerning all these responsibilities mentioned above, the heads
of administrations are accountable to the Minister, and to their local councils
in local administrations.
(Amendment: 22.12.2005 - 5436/10-c art.)The
heads of administrations perform the requirement of this responsibility through
authorizing officers, financial services units and internal auditors.
SECOND PART
Public
Administration Budgets
FIRST SECTION
General
Provisions
Budget Types and Scope
Article 12- The
budgets of the administrations within the scope of general government shall be
prepared and implemented in the form of central government budget, social
security institution budgets and local administration budgets. No budget under
any other name other than the foregoing shall be prepared by the public
administrations.
Central government budget consists of the
budgets of public administrations included in chart I, chart II and chart III
of this Law.
General budget refers to the budgets of public
administrations, which are included in chart I of this Law and which are under
the legal entity of the government.
Special budget refers to the budget of each
public administration, which is included in chart II of this Law and
established as affiliated or related to a ministry for the performance of a
defined public service, to which revenues are allocated, and which is
authorized to spend from such revenues, with the establishment and operation
principles arranged through special law.
Regulatory and supervisory agency budget is the
budget of each regulatory and supervisory agency, which is included in chart
III of this Law and established in the form of board, agency or supreme board by special laws.
Social
security institution budget refers to the budget of each public administration,
which is included in chart IV and established by law to provide social security
services.
Local administration budget refers to the budgets of
public administrations within the scope of the local administration.
Budgetary Principles
Article 13-
Following principles shall apply to the preparation, implementation and control
of the budgets:
a)
In the preparation and implementation of the budgets, it is essential to ensure
macroeconomic stability together with sustainable development.
b)
The spending authority vested to public administrations with the budget shall
be exercised with a view to perform the duties and services stipulated in the
laws.
c)
The budgets shall be prepared, implemented and controlled in conformity with
the policies, targets and priorities envisaged in the development plans and
programs, and according to the strategic plans, performance criteria and cost-benefit
analysis of the administrations.
d)
Budgets shall be negotiated and evaluated together with the budget estimations
of next two years by considering strategic plans.
e)
(Amendment: 22.12.2005 - 5436/10-a art.) The budget shall provide a comprehensive
and transparent view of the public fiscal operations.
f)
All revenues and expenditures shall be indicated in the budgets with their
gross values.
g)
The practice of earmarking revenues for specific expenditure shall be strictly
limited.
h)
It is essential that revenue and expenditure balance is ensured in the budgets.
i)
Budgets cannot be implemented unless they are accepted or approved by Turkish
Grand National Assembly or by authorized bodies before the beginning of the
pertaining year.
j) Budgets shall not contain issues irrelevant to the
budget.
k)
Budgets shall be prepared and implemented in line with a classification
determined by the Ministry of Finance according to the international standards
to ensure that the institutional, functional and economic results thereof are
seen.
l)
Clearness, accuracy and fiscal transparency are essential for budget revenue
and expenditure estimations and for reporting of implementation results.
m) All revenues and expenditures of
public administrations shall be indicated in their budgets.
n)
Public services shall be conducted according to the methods, principles and
purposes set forth by legislation, and by using the appropriations to be
allocated to the budgets.
o)
In budgets, appropriations shall be allocated to accomplish specific purposes.
Draft Laws to Influence Revenues and Expenditures
Article 14- (Amendment: 22.12.2005 - 5436/10-c
art.) In the preparation of Draft Laws that may cause an increase in public
expenditures or a decrease in public revenues and thus impose a liability on
public administrations, the public administrations within the scope of central
government shall calculate the financial burden by the Draft Law of a minimum
period of three years and within the framework of medium term program and
fiscal plan, and shall attach it to the Draft Laws. The Draft Laws on social
security shall also include actuarial calculations of at least 20 years. In
addition, the opinion of the Ministry of Finance, and that of the
Undersecretariat of State Planning Organization or the Undersecretariat of Tre
SECOND SECTION
Central Government Budget Law
Scope of Central Government Budget Law
Article 15- Central
Government Budget Law is the Law that indicates the revenue and expenditure
estimations of the public administrations included in the central government
and that grants authority and permission for their realization and
implementation.
Central Government Budget Law should include revenue and expenditure
estimations of the first year and following two years; budget deficit or
surplus amount, how the deficit will be covered or where the surplus will be
used if any; tax revenues renounced due to tax exemptions, exceptions,
reductions and similar practices; borrowing and warranty limits; authorities to
be granted for the implementation of budgets; relevant schedules and
provisions, pertaining to revenues and expenditures, to be totally or partially
implemented or not to be implemented at all during the fiscal year. The
revenue-expenditure estimations of each public administration within the scope
of central government may be presented in special sections or schedules of the
Central Government Budget Law.
Article 16- Ministry of Finance is responsible
for the preparation of the Central Government Budget Draft Law and for ensuring
the coordination between the related public administrations.
The preparation process of central government
budget begins with the Council of Minister’s meeting to be held until the end
of May, where the Council adopts the medium term program prepared by the
Undersecretariat of State Planning Organization and including basic macro
policies, principles, and economic figures as targets and indicators in line
with the development plans and strategic plans of the institutions and the
requirements of general economic conditions. Medium term program shall be
published in the Official Gazette within the same term.
As consistent with the medium term
program, the medium term fiscal plan prepared by the Ministry of Finance and
including deficit and borrowing positions targeted, total revenue and
expenditure projections for the following three years and the ceilings of
appropriation proposals of the public administrations shall be determined by
The High Planning Council until the fifteenth of June, and published in the
Official Gazette.
In
order to guide the preparation process of the budget proposals and investment
programs of the public administrations; The Budget Call and the Budget
Preparation Guide as its supplement shall be prepared by the Ministry of
Finance, and the Investment Circular and Investment Program Preparation Guide
as its supplement shall be prepared by the Undersecretariat of State Planning
Organization, and all shall be published in the Official Gazette until the end
of June.
Budget
Preparation Guide and the Investment Program Preparation Guide serving as a
basis for the preparation of budget proposals shall encompass the general
principles, objective and me
Preparation of Central Government
Budget
Article 17- Basic
principles that will be taken into account while developing revenue and
expenditure proposals are as follows;
a) Basic
figures, principles and basis determined in the Medium Term Program and Medium
Term Fiscal Plan,
b)
Appropriation ceilings determined in the framework of strategic plans of the
administration, and priorities of development plan and annual program,
c)
Multi-year budgetary framework consistent with strategic plans of public
administrations,
d)
Performance objectives of the administration.
The public
administrations shall prepare their expenditure proposals taking into account
the appropriation requests of their central and decentralized units. The
general budget revenue proposal shall be prepared by the Ministry of Finance,
and the revenue proposals of other budgets shall be prepared by the
administrations concerned.
(Amendment: 22.12.2005 - 5436/10-a
art.) The expenditure and revenue
proposals shall be prepared in line with the classification system defined by
the Ministry of Finance in line with international standards so as to enable
economic and financial analysis and to ensure accountability and transparency.
In the framework of the principles stated in Budget Preparation Guide
and strategic plans, public administrations shall prepare their budget revenue
and expenditure proposals accompanied by the statement of reasons and signed by
their competent authorities, and send them to the Ministry of Finance until the
end of July. The investment proposals of public administrations shall be
submitted for evaluation to the Undersecretariat of State Planning Organization
within the same term.
Following
the submission of the budget proposals to the Ministry of Finance, meetings may
be held with the representatives of public administrations on their expenditure
and revenue proposals.
Regulatory
and supervisory agencies shall prepare their budgets according to three-year
budgeting concept, strategic plans and performance objectives and to the
institutional, functional and economic classification system.
Presentation
of Central Government Budget Draft Law
Article 18- Following the
finalization of macroeconomic indicators and budget figures by High Planning
Council latest during the first week of October, the Central Government Budget
Draft Law and National Budget Estimation Report, which are prepared by the
Ministry of Finance, shall be presented to the Turkish Grand National Assembly
by the Council of Ministers no later than seventy-five days prior to the beginning
of fiscal year.
Followings shall be attached to the Central
Government Budget Draft Law to be considered on the deliberations thereon;
a)
Budget memorandum including Medium Term Fiscal Plan,
b)
Annual economic report,
c)
Schedule of public revenues renounced due to tax exemptions, exceptions,
reductions and similar practices,
d)
Public debt management report,
e)
Last two years’ budget realizations and next two years’ revenues and
expenditures estimates of public administrations within the scope of general
government,
f) Budget estimates of local
administrations and social security institutions,
g (Abolishment of paragraph g
22.12.2005 - 5436/10-c art.)
h) List of
public administrations that are not within the scope of central government but
subsidized from central government budget and of other agencies and
institutions,
(Amendment: 22.12.2005 - 5436/10-b art.) Turkish Grand National
Assembly, Turkish Court of Accounts and the regulatory and supervisory agencies
shall submit their budgets directly to the Turkish Grand National Assembly
until the end of September, and send a copy to the Ministry of Finance.
Deliberations on Central Government Budget Draft
Law
Article 19-
Turkish Grand National Assembly deliberates the text of Central Government
Budget Draft Law on article basis and the revenue and expenditure schedules on
institutional basis, and puts the Draft Law to a vote on section basis. After
approval by the Assembly, Central Government Budget Law shall be published in
the Official Gazette before the beginning of the fiscal year.
Public investment program shall be prepared by the Undersecretariat of
State Planning Organization according to the Central Government Budget Law, and
published in the Official Gazette by the Decree of Council of Ministers in
fifteen days following the entry into force of aforesaid Law.
In the event that the Central Government Budget Law does not enter into
force as a result of force majeuer, Provisional Budget Law shall be adopted.
Provisional budget appropriations are determined on the basis of a certain
ratio of previous year’s initial budget appropriations. The implementation of
Provisional Budget Law shall not exceed six months. The provisional budget
implementation shall end when the current year budget enters into force, and
the expenditures, commitments and revenues realized up to that date shall be
included in the current year budget.
In the event that the appropriations in the budgets of public
administrations included in the central government turns to be insufficient, or
in order to carry out unforeseen services, a supplementary budget shall be
prepared in a way to capture revenues to meet expenditures.
THIRD
SECTION
General Principles for
Implementation of Budgets
Article 20- Following
principles apply to the utilization of budget appropriations:
a) (Amendment: 22.12.2005 - 5436/10-a
art.) Public administrations within the
scope of the general budget shall prepare their detailed expenditure programs,
and submit them to the Ministry of Finance to be visaed. On the basis of the
principles determined by the Ministry of Finance, budget appropriations shall
be utilized according to the release rates and detailed expenditure programs
visaed by considering cash planning.
b) (Amendment: 22.12.2005 - 5436/10-a
art.) Special budget agencies and
social security institutions shall prepare their detailed financing programs
and make their expenditures according to this program.
c) (Amendment: 22.12.2005 - 5436/10-a
art.) Procedures and principles
regarding the preparation of detailed expenditure and financing programs, visa,
application and monitoring of the application shall be determined by the
Ministry of Finance.
d) Public
administrations are not allowed to spend in excess of the appropriations
indicated in their budgets. The appropriations provided with the budget shall
be used in line with the purposes they are allocated for to cover the works
done, goods and services purchased and other expenditures made in the pertaining
year. However, previous years' overdue debts that are neither recorded in
custody account nor subject to lapse of time, and debts based on a written
judicial decree shall be paid from the current budget of the relevant
public administration.
e) (Amendment: 22.12.2005 - 5436/10-a
art.) Appropriations that could not be
used during the current year shall be cancelled at the end of the year.
f) In the
event of general or partial mobilization, declaration of war or compulsory
military preparations based on the Council of Ministers Decree, the available
appropriations in the budget of the Ministry of National Defense, that of the
General Commandership of Gendarmerie and of the Commandership of Coast Security
may be consolidated and used, provided that the consolidated amount does not
exceed the total amount of the appropriations of these administrations. In case
that the said amount is not sufficient, an additional amount up to fifteen
percent of the total appropriations may be spent. In above-mentioned cases, for
expenditures related to travel and transport, adequate amounts of advance shall
be given to the paymasters assigned by the approval of authorizing officers and
deducted from the appropriation to be sent within one month.
Appropriation Transfers
Article 21-
Appropriations transfers among the
budgets of the public administrations within the scope of central government
shall be carried out on the basis of law.
However,
public administrations within the scope of central government are entitled to
perform appropriation transfers within their budgets up to the amount of five
percent of the appropriation in the item from which the appropriation will be
transferred, unless a different ratio is defined in the budget law of
pertaining year. Such kind of transfers shall be notified to the Ministry of
Finance in following seven days.
No
transfer to other items shall be carried out from personnel expenditure items,
items to which transfers have already been made, and items to which transfers
have been made from contingency appropriations.
Last
paragraph (Abolishment 22.12.2005
- 5436/10-c art.)
Dispatch of Appropriations to Decentralized Units
Article 22- By
issuing an Appropriation Dispatch Document, authorizing officers in the central
organizations of the public administrations shall dispatch appropriations to
decentralized units to be utilized for their necessities.
The Minister of Finance is authorized to determine the procedures and
principles for the dispatch of appropriations to the public administrations
within the scope of central government.
Contingency Appropriation
Article 23- (Amendment: 22.12.2005 - 5436/10-a
art.) In order to realize the services
and objectives stated in the Central Government Budget Law, to remedy any
appropriation shortage or to perform services not foreseen in the budgets, the
contingency appropriation, not to exceed two percent of the general budget
appropriations, may be allocated to the budget of Ministry of Finance to be
transferred to the budgets of administrations under chart I and those which are to be shown in the central
government budget law of the administrations included under chart II of this
Law. The Minister of Finance is authorized for the transfers from this
appropriation.
Within
fifteen days following the end of the year, The Ministry of Finance announces
the distribution, in terms of type, amount and administrations, of the
transfers from the contingency appropriation within the fiscal year.
Covert Appropriation
Article 24- Covert appropriation
refers to the appropriation included in the budget of the Prime Ministry to be
used for the necessities of the government in confidential intelligence and
defense services; in national security and high interests of the State as well
as the requirements of State prestige; in achieving political, social and
cultural objectives, and in providing extraordinary services. The covert
appropriations may be included in the budgets of public administrations that
perform intelligence services required by the duties appointed by Law. Covert
appropriation shall not be used for any purpose other than the foregoing, or to
meet the expenditures relating to the management, propaganda or election
campaigns of political parties or the personal expenditures of the Prime
Minister or his/her family. Total amount of covert appropriations allocated in
the relevant year shall not exceed five per thousand of the sum of the initial
appropriations in the general budget.
The
place of utilization of the covert appropriation included in the budgets of the
Prime Ministry and other relevant administrations; the person who will effect
the expenditure; the method of booking and closing of accounts; the documents
to be delivered to the new responsible person in case of a change in the person
effecting the expenditure shall be determined by the Prime Minister.
Expenditures from covert appropriations and
relevant payments shall be effected on the basis of a decree signed by the
Prime Minister, the Minister of Finance and the relevant minister.
The
investment projects of administrations in chart III of this Law shall be
included in the investment program of its pertaining year for information. In
addition, the principles and procedures on the implementation and monitor of
the investments of social security institutions and local administrations shall
be determined by the Undersecretariat of State Planning Organization.
Among the new public investment project proposals, except the ones on
disasters, the cost of which is above the limit to be set by the “Decree of
Council of Ministers on The Implementation, Coordination and Monitoring of
Current Year Program”; those which do not have a feasibility study including
environmental analysis and cost-benefit or cost-efficiency analysis; and those
which are not examined and approved for feasibility by the Undersecretariat of
State Planning Organization shall not be included in the investment program.
Making Commitments
Article
26- Commitment
means undertaking a future payment obligation against a work order, purchase of
goods or services, depending on the provisions of an agreement duly concluded
or on the provisions of the Law. No commitment shall be made for works for
which adequate appropriation is not allocated in the budget. The term of
commitment is limited to the fiscal year. Authorizing officers are entitled to undertake
commitments within the limits of allocated appropriations. The
appropriations for the committed amounts shall be reserved, and shall not be
used for other works or for the purchase of other goods or services.
Commitments
Carried Over to Next Year
Article 27- Subject to the
approval of the head of public administration, commitments carried over to the
next year may be undertaken for following tasks and services that can not be
limited by the fiscal year and are continuous because of their nature; provided
that, for each task, it does not exceed fifty percent of the appropriation
provided in the budget and does not continue longer than June of the subsequent
year and its term does not exceed twelve months:
a)
Construction, repair, study and project works, as well as research-development
projects, garments and food purchases, machinery-equipment,
arms-munitions-equipment purchases of Turkish Armed Forces, and maintenance,
repair and manufacture works thereof.
b) Food, fuel for heating, fuel oil and mineral
oil requirements.
c) Medicaments, vaccines, serums and medical
consumables that are difficult to obtain and preserve.
d) (Amendment: 22.12.2005 - 5436/10-b art.) Purchase of
periodicals, transportation, protection and security, cleaning and meal
services.
e) (Amendment: 22.12.2005 - 5436/10-a art.) Compulsory pecuniary
liability insurance for the vehicles and transportation insurance issued in
order to insure the delivery of arms, arms equipment and munitions from abroad
against any and all risks.
f) (Amendment: 22.12.2005 - 5436/10-a art.) Maintenance and repair
works of the machinery and equipment, roads and highways, computer and
communication systems; any type of repair works and electronic information
access services.
(Amendment: 22.12.2005 - 5436/10-b
art.) However, the provision stipulating that fifty percent of the
appropriations provided in the budget is not to be exceeded for the tasks and
services listed in subclause (d), shall not be sought for the Ministry of
National Education.
Commitments Carried Over to Subsequent Years
Article 28- (Amendment: 22.12.2005 - 5436/10-c
art.) Public administrations within the scope of central government may
undertake commitments carried over to the subsequent years for the investment
projects that cannot be completed in one fiscal year.
Within the framework of Law No 3833 dated
2/7/1992, the Ministry of National Defense or the Ministry of Interior,
according to its relevance, is authorized to undertake commitments carried over
to subsequent years for the projects included in the Strategic Goal Plan of
Turkish Armed Forces.
Upon the positive opinion of the Ministry of Finance,
the Ministry of Foreign Affairs may undertake commitments carried over to the
subsequent years for the purchase of a building or a land or the construction
or lease of a building for foreign representation.
(Amendment: 22.12.2005 - 5436/10-b art.) Provided that there is
appropriation in the annual budget and the positive opinion of the Ministry of
Finance is obtained, commitments may be undertaken with the approval of the
head of public administration for a period not to exceed three years and spread
over the coming years for any type of machinery and equipment, devices and
vehicles whose purchase is not economically profitable, the rental of air and
marine vehicles for fire extinction, purchase of vaccines and anti serum, and
forestation and arrangement works.
Grants from Budgets
Article 29- No real or legal person is allowed to use, to be
granted or to benefit from any public resources without a legal ground.
However, grants to associations, foundations, unions, institutions,
organizations, funds and similar entities may be given by aiming public
interest, on condition that they are foreseen in the budgets of public
administrations within the scope of general government.
The
procedures and principles on providing, utilizing, monitoring, auditing and
publicizing grants shall be determined by a regulation to be prepared by the
Ministry of Finance and to be issued by the Council of Ministers.
Budget Policy, Monitoring Revenues and
Expenditures
Article 30-
Regarding the implementation of the Central Government Budget, with the purpose
of ensuring economy in expenditures and conducting a consistent, balanced and
effective budget policy; the Minister of Finance is entitled to take necessary
me
In
order to determine and monitor all revenues and expenditures, debts and
financial resources of the general government; public administrations within
the scope of general government, institutions, organizations, foundations and
associations and similar entities subsidized from the central government budget
shall submit their revenue and expenditure estimations, financial statements,
the details of the amounts receivable from and payable to each other, and all
kinds of information and documents concerning their personnel expenditures to
the Ministry of Finance when requested. The Minister of Finance is authorized
to take necessary me
(Amendment: 22.12.2005 - 5436/10-a art.)
Administrations within the scope of the general government shall announce the
implementation results of their budgets for the first six months and their
expectations, objectives and activities regarding the second six months and the
Ministry of Finance shall announce the implementation results of first six
months of the central government budget law, the financing condition,
expectations and objectives regarding the second six months and the financial
condition comprising the activities to the public in the month of July.
FOURTH
SECTION
Spending Authority and Authorizing
Officers
Article 31-
(Amendment: 22.12.2005 - 5436/1 art.) Head of each spending unit to which
appropriation is allocated with the budget is the authorizing officer.
However, in administrations where there are difficulties in determining
the authorizing officers because of reasons such as the organizational
structure and personnel conditions and in administrations in whose budgets
spending units are not classified, the spending authority may be carried out by
the head of public administrations or persons to be determined by the head of
public administrations; upon the positive opinion of the Ministry of Interior
Affairs in local governments and the Ministry of Finance in the other
administrations.
In expenditures performed based on the authority vested by the laws and
with the resolution of the board of directors, executive committee, commission
and similar boards or committees, the responsibility arising out of the
spending authority belongs to the board, committee or commission.
In public administrations within the scope of
general government, the principles and procedures on the determination of the
authorizing officers according to administrations, central and decentral units
and their duty titles, on combining the spending authority at an upper
management level and on the transfer of spending authority shall be defined by
the Ministry of Finance. Transfer of the spending authority does not relieve
the administrative responsibility of the person transferring the spending
authority.
Authorizing officers may effect expenditures up to the amount of the
appropriation foreseen in the budget and authorizing officers who are supplied
with the appropriations via Appropriation Dispatch Document may effect
expenditures up to the amount of appropriation allocated.
Spending Instruction and Responsibility
Article 32- Effecting expenditures from
budgets is pending to the delivery of a spending instruction issued by the
authorizing officer. The spending instruction shall include information on the
statement of the purpose of service as well as subject, amount, duration,
available appropriation and realization procedure of the work to be performed
and on realization officers.
Authorizing
officers are responsible for the compliance of spending instructions with the
budget principles and basics, laws, by-laws and regulations and other
legislations, for the effective, economic and efficient utilization of the
appropriations and for other transactions they shall perform in the framework
of this Law.
Realization of Expenditure
Article 33-
(Amendment: 22.12.2005 - 5436/10-a art.) In order to effect expenditure from
the budgets, that the works, goods or services are performed or received in
accordance with the defined principles and rules shall be approved by the
designated person or commission, and the realization documents shall be issued.
The realization of the expenditures shall be completed when the payment order,
which is prepared by the person determined by the authorizing officers, is
signed by the authorizing officer and upon the payment of the due amount to the
rightful person.
Upon the spending instruction, realization officers shall perform the
duties of having the work to be done, receiving goods or services, completing
the receiving formalities, documenting and issuing the documents required for
payment.
(Amendment: 22.12.2005 - 5436/10-b art.) In expenditure to be performed
by utilizing a common database to be established on an electronic environment,
data input procedures shall be deemed realization duties. Principles and
procedures on the performance of this paragraph shall be determined by the
Ministry of Finance.
Realization officers shall be responsible for the duties and
transactions they should perform in the framework of this Law.
(Amendment: 22.12.2005 - 5436/10-b art.) The forms and types of the
realization documents to be required according to the type of the expenditure
shall be determined by regulations to be issued upon obtaining the positive
opinion of the Ministry of Finance by the Ministry of Finance for public
administrations within the scope of central government, by the Ministry of
Interior for local administrations, and by the affiliated or related ministries
for social security institutions, provided that the positive opinion of the
Undersecretariat of Tre
Unpaid Amounts and
Budgeted Debts
Article 34- (Amendment: 22.12.2005 - 5436/2
art.) Amounts which are not paid although they have been bound to the payment
order document shall be deposited in and paid from custody accounts by
recording them as expenditure in the budget. However the amounts at the custody
accounts which are not claimed until the end of the fifth year following the
fiscal year of the purchase of the goods or the performance of the service
shall be recorded as revenue to the budget. Amounts recorded as revenue shall
be paid upon court decision.
In the event that the cash amounts available to
the public administrations do not suffice to cover all of the payments,
expenditures shall be paid according to the accounting record order. However,
priority shall be given in the following order to; taxes, duties, levies,
premiums, fund deductions, shares and similar amounts to be paid to the other
public administrations, scheduled payments, debts subject to court decision,
debts to impose additional load in case of non-payment such as delay penalty or
interest and solicited amounts in custody accounts.
Debts that are not claimed in written by their
payees without any valid reason until the end of the fifth year following the
pertaining fiscal year or those that could not be paid because of the related
documents were not submitted shall be subject to lapse of time and discontinue
in favor of the public administrations.
Expenditures at the public administrations
within the scope of the general budget, which have no appropriation at the
place and time and which are related to expenditures not subject to an undertaking
and an expenditure order and are performed from economic codes to be determined
by the Ministry of Finance and whose appropriation is foreseen in the budget,
are duly realized by adding the expenditure documents which constitute the
basis and included in the related accounts and are paid after the appropriation
has been received. Appropriation dispatch documents regarding these amounts
shall be sent to the accounting unit latest until the end of the fiscal year
and their accounting procedures shall be completed. The principles and
procedures for the implementation of this paragraph shall be determined by the
Ministry of Finance.
Prepayment
Article 35- (Amendment: 22.12.2005 - 5436/10-a
art.) Subject to the positive opinion of the authorizing officer and provided
that the corresponding appropriation is reserved; prepayment in the form of
advance payment or credit extension may be executed in the case of urgent or
mandatory expenditures for which the realization of formalities and cases
foreseen in the relevant laws can not be awaited. The upper limits of the
advance payment shall be included in the central government budget law.
Provided that it is stated in the relevant
contract and not exceeding thirty percent of the contracted total amount,
extra-budgetary advance payment against warranty may be made to the
contractors. The provisions of relevant laws on extra-budgetary advance payment
shall be reserved.
(Amendment: 22.12.2005 - 5436/10-a art.) Excess credit amounts of opened
letter of credits shall be carried over to the next year and their
appropriations shall be cancelled. The amount carried over shall be recorded as
appropriation in the related item in the budget of public administrations
within the scope of the general budget by the Minister of Finance and of other
public administrations by the head of administration.
In the event that, by the end of the term of the contract, a certain
part of the service could not be completed yet, or the performance of the
contract could not start because of force majeuer but a time extension has been
granted by the relevant administration and such extension prolongs to the next
fiscal year; the excess contract amount at the end of the year shall be carried
over and the provisions on letters of credit shall apply to the appropriations
concerning these amounts. If the service corresponding to the excess contract
amount carried over is accomplished within the course of time extension and the
related evidencing documents are submitted, such amount shall be paid by recording
as expenditure in the budget of the year when the service be performed.
Every paymaster is under the obligation of submitting to the accounting
officer the evidencing documents related to the amounts he/she spent from the
prepayments, if not provided in the relevant laws in one month time for
advances and in three months for credits. She/he is also under the obligation
of returning the excess amount. For advances not set off in due time, the provisions of the Law No
6183 dated 21/7/1953 shall apply.
(Amendment: 22.12.2005 - 5436/10-b
art.) In public administrations within the scope of central government, the
forms of prepayments, transfer and offsetting transactions, determination of
the amounts and rates of the prepayments in terms of administration and
expenditure, amount and offsetting period of the prepayment for the
expenditures to be performed in obligatory cases, assignment of paymasters, and
the procedures and principles related to other transactions shall be arranged
by a regulation to be prepared by the Ministry of Finance and issued by the
Council of Ministers. For other public administrations, the procedures and
principles on prepayments shall be provided in relevant legislations by
considering the provisions of this article.
Provisions of the Law No 3833 and dated
2/7/1992 concerning advances and credit transactions are reserved.
FIFTH SECTION
Article 36- Following
principles shall apply to the collection of revenues:
a)
At the beginning of each fiscal year, the Ministry of Finance publicizes its
principles, objectives, strategies, and commitments regarding revenue policies
and their implementation.
b) Necessary services shall be
provided and me
c) The tax compliance of taxpayers
and responsibles shall be encouraged.
d) Necessary me
Article 37- Taxes, levies,
charges and similar financial liabilities shall be imposed, amended or removed
by laws.
(Amendment: 22.12.2005 - 5436/10-b
art.) The legal grounds of the revenues of the public administrations within
the scope of general government shall be indicated in their budgets. The revenues indicated in the
budgets shall be imposed, accrued and collected in accordance with the
procedures set out in their respective laws. The imposition,
accrual and collection of general budget revenues shall be performed by the
Ministry of Finance or by the administrations authorized according to the
legislation related to imposition and accrual.
The shares to be given to other administrations,
institutions and organizations from the taxes, levies, charges and other
revenues collected by public administrations within the scope of general
government shall be covered by the appropriations to be included in the budget
of the revenue collecting public administration for this purpose. The available
amount that may be utilized during the fiscal year cannot exceed the share
amount to be calculated by considering the collected amount according to the
provisions of the related law. In the event that the amount of the share
calculated in this manner exceeds the appropriation amount allocated for this
purpose, in administrations within the scope of general budget, the Minister of
Finance and in the others the head of the public administration is authorized
to allocate supplementary appropriation provided that it does not exceed the
said difference.
Without prejudice to the provisions of relevant
laws, the principles and procedures applicable to writing off the revenues
subject to lapse of time shall be determined by the Ministry of Finance.
Revenue Collection Responsibility
Article 38- Those who are
authorized for and in charge of the imposition, accrual, collection of the
public revenues are responsible for the timely and proper performance of the
imposition, accrual and collection transactions stipulated in the applicable
laws.
Special Revenues
Article 39- The amount
of special appropriations allocated to the administrations against special
revenues shall be indicated in the budgets of relevant administrations. The amount
of special appropriation available during the fiscal year may not exceed the
amount of special revenues collected. In the event that the collected special
revenues exceed the amount of the appropriation, no supplementary appropriation
is allowed.
Price lists of priceable goods and services,
which are stated in relevant laws, and the procedures and principles related to
their practice shall be determined by the relevant public administrations by
obtaining the opinion of the Ministry of Finance.
Authorities and transactions related to the
recording, carrying over to the subsequent year and cancellation of
appropriations concerning special revenues shall be indicated in the Central
Government Budget Law.
Donations and Grants
Article 40 - No donation or grant may be
collected by any real or legal person in return for or in relation to a public
service or under similar denominations.
All kind of donations and grants made to the
public administrations shall be recorded as revenue in their budgets. Donations
and grants that are not in cash form shall be valuated and recorded according
to the relevant legislation.
Without prejudice to the provisions of Law No
4749 dated 28/3/2002 for conditional donations and grants provided through
foreign financing, upon the approval of the head of public administration which
will render the service, the conditional donations and grants to be used by the
public administrations pursuing public interest shall be recorded as revenue in
an item to be established in the budget and as appropriation in an item to be
established for the use for its imposed purpose. Apart from the imposed
purpose, no transfer from this appropriation to another item is allowed.
Amounts of such appropriations unused until the
end of fiscal year shall be carried over to the subsequent year's budget and
recorded as appropriation until the purpose of the donation or grant is
accomplished. However, the Minister of Finance for the public administrations
within the scope of the general budget and the head of public administration
for others is authorized to cancel the appropriation amounts which remain after
the purpose of allocation is accomplished; which are not sufficient for the
realization of the purpose or which not exceed the amount indicated in the pertaining
year budget and not spent after being carried over for two consecutive years.
In the event that the donations and grants are
requested to be returned because of non-utilization or out-of-purpose
utilization, they shall be paid back to the relevant person by recording to the
budget as expenditure. Those who are accounted responsible are obliged to
recover the expenses occurring due to out-of-purpose utilization of conditional
donations and grants or losses arising from not using them in time.
SIXTH SECTION
Accountability Reports
and Final Account
Article 41- (Amendment: 22.12.2005 - 5436/3
art.) Within the framework of accountability, the heads of public
administrations and authorizing officers to whom appropriations are allocated
in the budget shall issue accountability reports each year. On the basis of
unit accountability reports prepared by authorizing officers, the heads of
public administrations shall prepare and publicize the “administration
accountability reports”, which present the activity results of their
administrations. Public administrations within the scope of central government
and social security institutions shall submit a copy of their administration
accountability reports to the Court of Accounts and to the Ministry of Finance.
Each one copy of the accountability reports
prepared by local governments shall be sent to the Court of Accounts and to the
Ministry of Interior. The Ministry of Interior shall take these reports and
shall prepare and publicize the “local governments general accountability
report” which include also its own evaluations. A copy of the report shall be
sent each to the Court of Accounts and the Ministry of Finance.
Results of the activities of public
administrations within the scope of central government and social security
institutions in one fiscal year shall be presented in the “general
accountability report” to be prepared by the Ministry of Finance. This report
shall also include general evaluations regarding the financial structures of
local governments. The Ministry of Finance shall publicize the general
accountability report and send one copy to the Court of Accounts.
Except for the reports of local
administrations, the administration accountability reports, the general
accountability report on local administrations and the general accountability
report shall be
submitted to the Turkish Grand National Assembly by the Court of Accounts by
presenting its own opinions considering external audit results. Within the
framework of these reports and evaluations, the Turkish Grand National Assembly
deliberates the public administrations’ management and accountability with
regard to the acquisition and utilization of public resources. It is
compulsory for the heads of public administrations or deputies to be appointed
by the heads to join these deliberations together with the related ministers
The accountability report of the administration
shall be prepared so as to include, along with the general information on the
related administration, the resources used, and the reasons of the deviation
arising regarding the budget targets and realizations, financial information
comprising the information regarding the activities of associations,
institutions and organizations aided through assets and liabilities; and
information on activities and performance information performed as per
strategic plans and performance program.
The subjects to be included in these reports,
the preparation of the reports, their delivery to pertaining administrations,
the publication and the terms and other procedures and principles concerning
these transactions shall be determined by a regulation to be prepared by the
Ministry of Finance by obtaining the opinions of the Ministry of Interior and
the Court of Accounts.
Final Account Law
Article 42- The Turkish Grand National Assembly exercises
its power of approving the implementation results of the Central Government
Budget Law through the Final Account Law.
Basing on the accounting records, the Ministry
of Finance shall draft the Final Account Law in consistency with the form of
Central Government Budget Law. The Draft Law together with the statement of
reasons including the comparative assessments on yearly implementation results
shall be submitted to the Turkish Grand National Assembly by the Council of
Ministers latest until the end of June of the subsequent fiscal year, and a
copy shall be sent to the Court of Accounts.
Followings shall be attached to the Draft Final
Account Law;
a)
General
Trial Balance,
b)
Budget
revenues final account schedule and explanations thereon,
c)
Budget
expenditures final account schedules and explanations thereon,
d)
Budget
revenue and expenditure distribution in terms of provinces and administrations,
e)
Schedules
of state debts and tre
f)
Schedule
of public receivables written-off during the same year,
g)
(Amendment:
22.12.2005 - 5436/10-b art.) Asset management account summary charts
h)
Other
documentation required by the Ministry of Finance
(Amendment: 22.12.2005 - 5436/10-a art.) The
principles and procedures concerning the preparation of final accounts of
public administrations within the scope of central government shall be
determined by the Ministry of Finance.
Administration accountability reports, general
accountability report, external audit general evaluation report and Draft Final
Account Law shall be deliberated by the commissions of Turkish Grand National
Assembly together with the Central Government Budget Law. However, priority is
given to the discussion of these reports and general conformity statement.
The implementation
results of budgets of local administrations and social security institutions
shall be entered into the final account in accordance with the provisions in
the relevant laws.
General Conformity Statement
Article 43- The Court of Accounts submits the General Conformity Statement, which it
shall prepare for the public administrations within the scope of central
government, to the Turkish Grand National Assembly latest in seventy-five days
after the submission of the Draft Final Account Law.
General
Conformity Statement shall be prepared by taking into account the external
audit reports, the administration accountability reports and the general
accountability report.
The
submission of the Draft Final Account Law and the General Conformity Statement
to the Turkish Grand National Assembly does not suspend ongoing audits of the
Court of Accounts, and does not purport that the accounts of the related year
are finalized.
THIRD PART
Movable and Immovables
Movable and Immovables Transactions
Article 44-
(Amendment: 22.12.2005 - 5436/10-a art.) The acquisition, management, bartering
and disposal of movable and immovables by the public administrations within the
scope of general government, the method to apply in the collection and
follow-up of property related fees, the management and protection of places
owned and enjoyed by the State, the evacuation of unduly used assets shall be
regulated through relevant laws. The procedures and principles on recording the
assets, the protection and utilization of the movable assets and submitting the
accountability on asset management, the determination of authorized persons for
asset management and the persons to be on duty together on behalf of them shall
be set out in regulations to be prepared by the Ministry of Finance and issued
by the Decree of Council of Ministers.
(Amendment:
22.12.2005 - 5436/10-a art.) The procedures and principles on recording,
management and internal audit of the movable assets for the aim of defense and
security owned by Turkish Armed Forces (including General Commandership of
Gendarmerie and Commandership of Coast Security), National Intelligence
Organization and the General Directorate of Security shall be prepared together
with the Ministries of National Defense, Interior and Finance and set out in
the regulation to be enforced by the Council of Ministers.
Movable and Immovable Acquisition
Article 45-
When required by the public services, public administrations within the scope
of general government may purchase movable and immovables of the required
quality and quantity inland and abroad by paying in front or in installments or
by means of financial leasing. Public administrations may perform transactions
of procurement and expropriation of immovables through another public
administration by means of delegation of authority. The immovables acquired by
public administrations within the scope of general government shall be
registered under the name of the State Tre
In the event that goods produced by public administrations are used for
their own consumption, the prices of such products shall be entered by their
market values to the relevant appropriation item and the corresponding amount
shall be recorded as revenue.
The public administrations may transfer their
movable assets in excess of their needs to other public administrations free of
charge. They may also transfer their immovables to other public administrations
free of charge with the condition of annotating in the land registry that the
assets shall be used in public services required under their duties and that
the assets are to be returned when not used in purpose. The Ministry of Finance
shall determine the movable and immovables that shall not be transferred, as
well as the procedures and principles on transferring and recording.
The disputes between public administrations concerning the ownership of
immovables shall be settled by the competent courts.
Article 46 – Ministry of Finance is authorized for the sale
of any kind of movable and immovables owned by public administrations within
the scope of general budget. The proceeds shall be recorded as revenue in the
general budget. The movable and immovables owned by other administrations shall
be disposed upon the decision of the competent bodies defined in their
particular laws.
Among the
immovables owned by the public administrations within the scope of central
government, those having values exceeding the limit set forth in the Central
Government Budget Law shall be sold upon the Decree of Council of Ministers.
Allocation
of Immovables
Article 47- (Amendment:
22.12.2005 - 5436/4 art.) The
public administrations may allocate immovables and the places under the
jurisdiction and possession of the State among each other and to village legal
entities free of charge to perform the public services set out in their
relevant laws. The allocated assets cannot be used other than the aim.
The authority for allocating the immovables under the special possession
of the State Tre
Special provisions in the laws are reserved.
Article 48- The public administrations shall be responsible for
the management, recording, maintenance and utilization of movable assets. No
responsibility shall be assumed for the depreciation arising from the special
features or ordinary use of the movable assets, and for losses determined
according to relevant procedures.
Attendants to whom any movable asset is
delivered for use are responsible for the protection of the asset and for
damages caused to the asset. The public administrations shall be responsible to
ensure that any damage caused is compensated by those who are responsible for
such damages.
On the basis of efficiency and economy principles, the acquisition,
lease, allocation, management, use and disposal of the movable and immovables
owned by the public administrations shall be performed in line with the rules
stipulated in the relevant legislation and in accordance with the purpose of
the service. Those who are authorized for the management or utilization of the
assets shall be liable for the losses that may arise from the actions and
operations not complying with these principles.
FOURTH PART
Public
Accounts
Article 49- (Amendment: 22.12.2005 - 5436/5
art.)The accounting system shall be established and managed in a manner to
constitute the basis for the preparation of financial reports and establishment
of the final account and to ensure the efficient performance of the decision,
control and accountability processes.
Public accounts shall be kept with a view to
provide necessary information for the public and for the officials in charge of
management and audit, by ensuring that all kinds of transactions on revenues,
expenditures and assets of the public administrations and transactions having
financial consequences, or causing a decrease or increase in the equity, and
guarantees and liabilities are recorded in the accounts under a defined system.
The accounting and reporting standards to be
implemented by the administrations within the scope of the general government,
shall be set forth by the State Accounting Standards Board to be established
with the participation of the representatives of the Court of Accounts,
Ministry of Finance, the Undersecretariat of the State Planning Organization,
the Undersecretariat of Tre
The form, period and types of the reports to be
prepared with the framework chart of accounts to be applied by the public
administrations within the scope of general government shall be determined by
the Ministry of Finance by taking the opinions of concerned administrations
within the frame of the accounting and reporting standards determined by the
Board and shall be arranged with the regulation to be enforced by the Decree of
the Council of Ministers.
The
arrangement regarding the form and types of the documents to be used in the
accounting transactions, chart of accounts and accounting of the transactions
shall be determined, in line with the Regulation mentioned in the fifth
paragraph, by taking the opinion of concerned administrations, by the Ministry
of Finance for the public administrations within the scope of the central
government; by the concerned administrations for the social security
institutions, and by the Ministry of Interior for the local governments by
taking the appropriate opinion of the Ministry of Finance. The subjects
regarding the detailed chart of accounts of the public administrations within
the scope of the general government are determined by the Ministry of Finance.
Recording Time (Amendment: 22.12.2005 - 5436/10-c art.)
Article 50- An economic value
shall be booked when it is produced, transformed, exchanged, transferred or
terminated. It is mandatory that all financial transactions are booked, and all
accounting records are based on documents.
Second
paragraph (Abolishment 22.12.2005
- 5436/10-c art.)
Third
paragraph (Abolishment 22.12.2005
- 5436/10-c art.)
Year of Public Revenues and Expenditures and
Offsetting Period
Article 51- Public revenues and expenditures shall be indicated
in the accounts of the fiscal year of their accrual.
Budget revenues shall be booked in the year of
collection and budget expenditures in the year of payment.
Public accounts shall be kept on fiscal year
basis. Offsetting operations of the payments actually performed but not offset
until the end of fiscal year may be realized in one-month time following the
end of the fiscal year, provided that their appropriations are reserved. In
force majeuer cases, this period may be prolonged by the Ministry of Finance
for a maximum of one month for budget expenditures and for a maximum of five
months for other transactions.
SECOND SECTION
Financial Statistics
Scope, Basic Principles and Institutional Environment
Article 52-
Financial statistics shall cover the financial transactions of the public administrations
within the scope of general government.
Within the framework of the principles of
integrity, reliability, usefulness, methodological validity and accessibility
and in consistency with the international standards, the financial statistics
shall be prepared by the staff, who have received proper professional training,
on the basis of the data in the accounting records and by using statistical
methods.
During
the preparation of the financial statistics, the administrators of public
administrations shall take necessary me
Preparing
and Publicizing Financial Statistics
Article 53- The financial statistics relating
to public administrations within the scope of general government shall be
compiled by the Ministry of Finance. The public administrations outside the
scope of central government shall prepare their financial statistics in
accordance with the predetermined principles and submit them to the Ministry of
Finance within the prescribed periods.
The financial statistics of the public
administrations within the scope of central government shall be published
monthly by the Ministry of Finance. The financial statistics of the public
administrations within the scope of general government shall be obtained
through combining the financial statistics of the social security institutions,
local administrations and the public administrations within the scope of
central government, and shall be published quarterly by the Ministry of
Finance.
It is essential that the financial statistics are understandable and
easily accessible to the users.
FIFTH PART
Internal Control System
Article 55- (Amendment: 22.12.2005 - 5436/10-a
art.) Internal control is the whole of the financial and other controls
comprising organization, methodology, procedure and internal audit established
by the administration in order to provide that the activities are performed in
an effective, economic and efficient way in accordance with the aims, defined
policies of the administration and with legislation, the assets and resources
are protected, the accounting records are held correctly and completely, the
financial information and management information are produced in time and
securely.
(Amendment: 22.12.2005 - 5436/10-a
art.) The standards and procedures related to the financial management and
internal control processes shall be defined, developed and harmonized by the
Ministry of Finance and those related to the internal audit by the Internal
Audit Coordination Board, within the framework of their duties and
authorizations. These bodies shall at the same time ensure the coordination of
the systems, and provide guidance to public administrations.
Objectives of Internal Control
Article 56- The objectives of internal control
are:
a) To manage the public revenues,
expenditures, assets and liabilities in an effective, economic and efficient
way,
b) To ensure that public
administrations operate in accordance with the laws and other legislations,
c) To prevent irregularities and
frauds in all kinds of financial decisions and transactions,
d) To ensure regular, timely and
reliable reporting and acquisition of information for taking decisions and
monitoring,
e) (Amendment: 22.12.2005 - 5436/10-a
art.) To prevent the misuse and waste of assets and protect against losses.
Article 57- (Amendment: 22.12.2005 - 5436/10-a
art.) Public administrations’ financial management and control systems consist
of spending units, accounting and financial services, ex ante financial control
and internal audit.
In order to establish an adequate
and effective control system; necessary me
Last paragraph (Abolishment: 22.12.2005 - 5436/10-c
art.)
At
public administrations ex ante financial control duty is performed within the
framework of the managerial responsibility.
The principles and procedures for
minimum controls to be performed during the realization of the procedures at
the spending units, financial decisions and transactions to be subject to ex
ante financial control by the financial services unit and the standards and
methods regarding ex ante financial control shall be determined by the Ministry
of Finance. Provided not contradicting with these standards and methods the
public administration may make arrangements in this subject.
Qualifications and Appointment of Financial Control Officer
Article
59- (Abolishment:
22.12.2005 - 5436/10-c art.)
Financial Services Unit
Article 60-
(Amendment: 22.12.2005 - 5436/7 art.) In public administrations, below listed
duties shall be rendered by the financial services unit:
e) Having the administration’s revenues
accrued within the related legislation, carrying out follow up and collection
procedures of revenues and receivables,
g) Preparing the accountability
report of the administration by taking the unit accountability reports as
basis, which have been prepared by the spending units,
h) Preparing summary charts
regarding the movable and immovables possessed or used by the administration,
i) Coordinating the preparation of
the investment program of the administration, following up the implementation
results and preparing the annual investment evaluation report,
j) Carrying out and finalizing the
financial works and transactions of the administration which are to be followed
up at other administrations,
k) Providing necessary information
and consultancy to the head of the administration and authorizing officers
regarding the implementation of financial laws and other related legislation,
l) Performing ex ante financial
control activity,
m) Performing activities on the
subjects of establishing the internal control system, implementation and
development of standards,
n) Carrying out other duties on the
financial issues assigned by the head of public administration.
Out of the purchasing, selling,
construction, rental, lease, maintenance-repair and similar financial
procedures those which are related to the whole of the administration are
realized by the unit performing support services and those which are related
only to the spending unit shall be performed by the spending units. However,
provided that the duty of authorizing officer remains with them these
procedures can be performed by the unit performing support services upon the
request of the spending unit and the approval of the head of the public
administration.
The structure of the financial
services unit shall be shown in the organization laws. The working principles
and procedures of the financial services units shall be prepared by the Ministry
of Finance by taking into account the organization structure of the
administrations and so that the strategic planning, budget and performance
program, accounting-final account and reporting, and internal control functions
are performed by separate subunits and shall be determined by a regulation to
be issued by the Council of Ministers.
The duty of the authorizing officer
and accounting officer cannot be combined on one person. Those performing ex
ante control duty in the financial services unit cannot be on duty in the
financial transaction process.
In the financial services units of
the administrations financial services experts may be employed. They shall
enter into the profession as financial services assistant experts after a
special competitive examination to be held for the graduates of the faculties
of law, political sciences, economics, business administration, economics and
administrative sciences that provide at least four year bachelor education or
graduates of the education institutions within the country or abroad whose
equivalence is accepted by the competent authorities, provided that these
persons have not completed their 30th age as of the beginning of the
year of the test and they become eligible to enter into the competency examination
to be held after they work at least three years on condition that their
employment record is positive. Those being successful at the competency
examination shall be appointed as financial services expert. The entrance to
the profession and competency examination and the working procedures and
principles of the financial services experts shall be arranged by the
regulation to be issued by the Ministry of Finance.
(Amendment: 22.12.2005 - 5436/10-a art.) Accounting Services and the
authorities and responsibilities of the accounting officer
At the payment stage, accounting
officers are obliged to control the payment order document and its appendices
for;
a) The signatures of the authorized
persons,
b) The completeness of the documents
listed in the regulations pertaining to payment,
c) The existence of any material
error, and
d) The information on the identity
of the rightful person.
(Amendment: 22.12.2005 - 5436/10-a
art.)An accounting officer shall not request any evidencing document other than
those set out in the applicable legislation. He/she shall not make any payment
in the event of any error or omission with regard to the foregoing. Payment
order documents with any missing or erroneous document shall be sent for
correction or completion to the authorizing officer in written form with the
statement of reasons latest in one working day. When the errors are corrected
or the incompleteness is remedied, the payment shall be effected.
Accounting officers shall keep and hold ready for audit the books,
records and documentation related to the transactions they perform.
(Amendment: 22.12.2005 - 5436/10-b art.) Accounting officers are held
responsible under the provisions on payment in the first paragraph of Article
34 and under their control obligations concerning payment, stated in the third
paragraph of this article. The responsibilities of accounting officers in
relation to the controls they carry out as herein provided are limited to the
documents they examine as required by their duties. The Ministry of Finance
shall be authorized to make an arrangement regarding the transfer of the duties
and authorities of the accounting officers to their assistants.
(Amendment:
22.12.2005 - 5436/10-a art.)Accounting officer’s paymasters are those who are
entitled to temporarily collect, pay and send money and values that can be
expressed as money, on the name and behalf of accounting officers. Accounting
officer’s paymasters are directly responsible vis-à-vis the accounting
officers. Procedures and principles on the appointment and the authorities of
accounting officer’s paymasters, the audits on them, and the books and
documents they have to keep as well as other issues shall be arranged through a
regulation to be issued by the Ministry of Finance.
Qualifications and Appointment of
Accounting Officer
Article 62- (Amendment: 22.12.2005 - 5436/8
art.) Those to be appointed to perform the duty of the accounting officers
should possess the following qualifications in addition to the qualifications
set out under Article 48 of the Public Servants Law No 657:
a) To have graduated from at least a
four-year-university,
b) To have performed the duty of the
assistant accounting officer or equal duty at the public administrations
provided they have served at least for four years in the accounting services of
these administrations,
c) To have received accounting
officer certificate,
d) To have no negative employment
record during the last three years,
e) To have no penalty for deduction
from salary and suspending of rank advance,
f) To possess the knowledge and
presentation skills required by the duty.
Provided that they fulfill the
criteria stipulated in the subparagraphs (c) (d) (e) and (f) of the foregoing
paragraph and they have served at least for four years in the accounting services
of these administrations, those to be appointed to perform the duty of
accounting officer in district municipalities and in local administration
unions with a population of less than 25000 shall be eligible so long they have
graduated from at least high school.
Without prejudice to the provisions
of Law No 4059 dated 9/12/1994, accounting officers in the public
administrations within the scope of general budget shall be appointed by the
Ministry of Finance, and in other public administrations by the head of the
public administration.
Those to be accounting officers
shall be given professional training by the Ministry of Finance taking into
account the characteristics of the duty and those having successfully completed
these trainings shall be awarded a certificate.
The training of the accounting
officers, procedures and principles governing the issuing of certificates shall
be prepared by the Ministry of Finance and arranged by a regulation issued by
the Council of Ministers.
Article 63-
(Amendment: 22.12.2005 - 5436/10-a art.) Internal audit is an activity of
providing independent and objective assurance and consultancy, performed in
order to improve and add value to the activities of the public administrations
by evaluating whether the resources are managed in conformity with the
principles of economy, effectiveness and efficiency, and by providing guidance.
Such activities are performed with a systematic, regular and disciplined
approach and in accordance with generally accepted standards, aiming to
evaluate and improve the efficiency of risk management and of management and
control processes on the management and control structures and financial
transactions of administrations.
(Amendment: 22.12.2005 - 5436/10-b art.) Internal audit is performed by
the internal auditors. Taking into account the structure and personnel number
of public administrations, upon the positive opinion of the Internal Audit
Coordination Board, internal audit units may be established, which are directly
subject to the head of the public administrations.
Article 64-
Annual internal audit program of public administrations shall be prepared by
the internal auditors by considering the proposals of heads of public
administrations, and shall be approved by the head of public administration.
The following are the duties of internal auditors shall perform the
following duties:
a) To evaluate the management and control structures of the public
administration on the basis of objective risk analysis,
b) To make studies and proposals with regard to economic, efficient and
effective utilization of resources,
c) To perform ex post audits on legal compliance,
d) (Amendment: 22.12.2005 - 5436/10-a art.) To audit and evaluate the
administrations’ expenditures, decisions and operations on financial
transactions according to their compliance with the objectives, policies,
development plan, programs, strategic plans and performance programs.
e) To perform system audit on the processes of financial management and
control, and to make proposals thereon,
f) In the framework of audit results, to make proposals regarding the
ameliorations,
g) To report to the highest administrator of the administration
concerned if a case requiring an investigation is observed during the audit or
according to audit results.
The
internal auditor performs his/her duties in line with the internationally
accepted control and audit standards defined by the Internal Audit Coordination
Board.
Internal
auditor performs his/her duties independently and no other duty, out of his/her
primary duty can be assigned or commissioned to the internal auditor.
Internal
auditors submit their reports directly to the heads of public administration.
Following the evaluation of the head of administration, these reports shall be
given to the concerned units and financial services unit for taking necessary
action. Internal audit reports and the actions taken about them shall be sent
by the head of public administration, latest in two months to the Internal Audit
Coordination Board.
Article 65-
The officials to be appointed as internal auditors must possess the following
qualifications in addition to the qualifications set out under Article 48 of
the Civil Servants Law No 657:
a) To have graduated from at least a four-year-university in one of the
areas to be determined by the Internal Audit Coordination Board considering the
particularities of the public administration concerned.
b) To have served at least for five years as audit personnel in a public
administration or worked at least for eight years in areas to be determined by
the Internal Audit Coordination Board.
c) To possess the knowledge, qualification and presentation skills
required by the profession.
d) Other conditions required by the Internal Audit Coordination Board.
Those to be appointed as internal auditors in public administrations
shall receive professional training from the Ministry of Finance under the
coordination of the Internal Audit Coordination Board. The training program
shall be prepared in a manner to provide adequate knowledge to the internal
auditor candidates on auditing, budgets, financial control, public procurement
legislation, accounting, personnel legislations, EU legislations and other
professional issues. Those having successfully completed such training shall
receive certificates. The duration, subjects and post-training procedures of
the training program for the internal auditor candidates shall be arranged
through the regulation to be prepared by the Internal Audit Coordination Board
and issued by the Ministry of Finance.
(Amendment: 22.12.2005 -
5436/10-a art.) Internal auditors shall be appointed by the Minister in
ministries and related administrations upon the recommendation of the heads of
public administrations, and in other administrations by the heads of public
administrations from among the candidates having certificates and shall
dismissed from duty with the same procedure. The number of internal auditors
for public administrations, their working procedures and principles and other
related issues shall be arranged through the regulation to be prepared by the
Internal Audit Coordination Board and issued by the Council of Ministers upon
the proposal of the Ministry of Finance.
Article 66-
The Internal Audit Coordination Board affiliated with the Ministry of Finance
consists of seven members. One of these members is proposed by the Prime
Minister, one by the Minister in charge of the Undersecretariat of Tre
If necessary, the Internal Audit Coordination Board may invite experts
for technical assistance and consultancy with the condition of having no voting
right. The working procedures and principles of the Board and other issues
shall be arranged through a regulation to be proposed by the Internal Audit
Coordination Board and to be issued by the Ministry of Finance.
Those who are assigned in this Board continue to carry out their primary
duties. The Chairman and the members shall be paid, not to be more than four
times a month, an attendance pay not exceeding the amount calculated by
multiplying the index figure (3000) by civil servant monthly coefficient, for
every day of meetings.
Duties of Internal Audit Coordination Board
Article 67-
Internal Audit Coordination Board performs following duties in order to monitor
the internal audit systems of the public administrations and to serve as an
independent and impartial body:
a) To determine internal audit and reporting standards, and to prepare
and develop audit guidelines.
b) To develop risk evaluation methods in line with international
practices and audit standards.
c) To ensure cooperation with the audit units of public administrations.
d) To make proposals in order to take necessary me
e) To make proposals to the public administrations for specific audits
out of the program, which will be carried out by the internal auditors in risky
areas.
f) To arrange the training programs of internal auditors.
g) To contribute to the settlement of conflicts in cases of divergence
of opinions between the internal auditors and the heads of public
administrations.
h) To evaluate the internal audit reports of the administrations and to
consolidate their results in an annual report to be submitted to the Minister
of Finance, and publicize it.
i) (Amendment: 22.12.2005 - 5436/10-a art.) To determine, according to
the volume of the transactions and personnel number, whether internal auditors
shall be appointed for administrations and district and village municipalities.
j) To determine other procedures on the appointment of internal
auditors.
k) To determine ethical rules to be
followed by the internal auditors.
l) (Amendment: 22.12.2005 - 5436/10-b art.) To
prepare quality assurance and development program and to evaluate the internal
audit units within this scope.
SIXTH
PART
External
Audit
External Audit
Article 68- The purpose of the ex post external
audit to be performed by the Court of Accounts is to audit, within the
framework of the accountability of public administrations within the scope of
general government, the financial activities, decisions and transactions of
management in terms of their compliance with the laws, institutional purposes,
targets and plans, and to report their results to the Turkish Grand National
Assembly
The external audit is performed in
accordance with the generally accepted international audit standards by
carrying out the following:
a) On the basis of public
administrations’ accounts and relevant documents, to perform financial audit on
the reliability and accuracy of financial statements, and to determine whether
the financial transactions related to revenues, expenditures and assets of
public administrations comply with the laws and other legal arrangements.
b) To determine whether the public resources
are used in an effective, economic and efficient way, to me
During the external audit, reports issued by the internal auditors of
the public administrations shall be submitted to the information of the Court
of Account auditors, if required so.
At the end of the audits, the
reports on the issues stated in the subparagraphs (a) and (b) of second
paragraph of this article shall be consolidated according to the administrations,
and a copy shall be submitted to the relevant public administration and replied
by the head of public administration. The Court of Accounts shall prepare the
External Audit General Evaluation Report by taking into account the audit
reports and replies given thereto, and present it to the Turkish Grand National
Assembly.
The finalizations of accounts by the
Court of Accounts means taking a decision on whether the revenue, expenditure
and asset accounts and related transactions of the public administrations
within the scope of general government are in compliance with the legal
provisions.
Other issues on the finalization of
external audit and accounts shall be stipulated in the relevant law.
(Amendment: 22.12.2005 - 5436/10-b
art.)Audit on Turkish Grand National Assembly and Court of Accounts
Article 69- (Amendment: 22.12.2005 - 5436/10-b
art.) Audit on Turkish Grand National Assembly and Court of Accounts is every
year conducted on the basis of accounts and related documents, on behalf of the
Turkish Grand National Assembly, by a commission which is composed of auditing
staff having required professional qualifications and which is appointed by the
Presidential Board of the Turkish Grand National Assembly.
SEVENTH PART
Sanctions and Authorized Bodies
Overspending
Article 70-
The authorizing officials who have delivered spending instructions which are
against the budgets, the detailed expenditure programs or release rates or
which are in excess of appropriation amounts stated in appropriation dispatch
documents, without causing public loss, shall be subject to a fine amounting up
to two times of the net monthly payment they earn including all kinds of
salary, allowance, increase and compensation.
Public Loss
Article 71-
Public loss is bringing an obstacle to the increase or causing a decrease in
the public resource as a result of a decision, transaction, action or
negligence that violates the legislation.
When determining public loss, the followings are
considered;
a) To make payments in excess of the amount
determined as the price of works, goods or services,
b) To make payments without receiving the goods or without having the
work or service done,
c) To make payments in excess or without reason, in the case of
expenditures in the form of transfers,
d) To buy goods, works or services, or to have them done for a price
higher than their market price,
e) Not to impose, accrue or collect
the revenues of the administration in accordance with the legislations,
f) (Abolishment: 22.12.2005 - 5436/10-c art.)
g) To make payments although not provided in the relevant legislations.
(Amendment: 22.12.2005 - 5436/10-a art.)
A public loss determined upon controls, audits, examinations, final
sentence or trial shall be collected together from the relevant persons with
its legal interest to be calculated according to the related legislation as of
the date of the loss occurred.
Officials who bring an obstacle to the increase
or cause a decrease in the public resource by issuing false documents where any
money, goods or values which have not in fact been received appear to have been
received, any services not rendered appear to have been rendered, or any
construction, repair or manufacture works not executed or completed appear to
have been executed or completed; and officials who deliberately issue, sign or
approve such documents shall be subject to legal action pursuant to the
relevant provisions of the Turkish Penal Code or other applicable laws. In
addition, those having undertaken such actions shall be subject to a fine
amounting up to two times of the net monthly payment they earn including all
kinds of salary, allowance, increase and compensation.
The procedures and principles related to the compensation of public
losses shall be defined in the regulation to be issued by the Council of
Ministers upon the proposal of the Ministry of Finance.
Unauthorized Collection and Payment
Article 72-
No real or legal person may collect any amount on behalf of the public, nor
effect payment from the public revenues unless duly authorized pursuant to the
laws.
In the events of unauthorized collection or payment, collection of any
donation or grant in exchange of or in connection with a public service by
using public authority, or any other collection or payment under similar denominations,
such amounts shall be collected from those having performed unauthorized
collection or payment, and according to its relevance recorded as revenue in
the budget, or recorded in custody accounts to be returned to the concerned
persons. In addition, necessary legal and administrative procedures shall be
applied to the aforementioned persons pursuant to the relevant laws.
Fines and Authorized Bodies
Article 73-
The fines stipulated herein shall be imposed by the heads of relevant public
administrations. Fines shall be collected by deducting one fourth of all
payments earned by the relevant persons including all kinds of salary,
allowance, increase and compensation beginning from the month following the imposition of the fine and
without requiring any further judgment.
Prescription
Article 74-
(Amendment: 22.12.2005 - 5436/10-b art.) Starting from the beginning of the
fiscal year following the occurrence of the public loss and of the action to be
punished by the mentioned fine, public losses and fines that cannot be
determined and, provided that the general provisions cutting and stopping the
lapse of time are reserved, collected until the end of the tenth year shall be
subject to prescription.
EIGHTH PART
Other
Provisions
Services to be conducted by Ministry of Finance
Article 75- First paragraph (Abolishment 22.12.2005
- 5436/10-c art.)
In cases where there is a complete breakdown of the financial management
and control system or there are indications of a major corruption or a public
loss, upon the request of the concerned minister or upon the direct approval of
the Prime Minister; the Minister of Finance may have authorized audit staff
inspect the entire financial management and control systems, financial
decisions and transactions of the public administrations as to their compliance
with the legislations. A copy of the reports to be issued at the end of such
inspections shall be sent to the Internal Audit Coordination Board, and another
copy for taking required actions to the concerned Minister.
Responsibility of Public Administrations
Article 76-
Public administrations shall regularly keep all kinds of records, information
and documents related to the financial decisions and transactions.
The public administrations and their
officials are obliged to; submit the information and documents on the
preparation, implementation, finalization, accounting, and reporting of the
budget and on the financial management and control systems to the officials
authorized to carry out audits; and take the necessary me
Social
Security Institutions and Local Administrations
Article 77- The preparation and
the implementation of the budgets of social security institutions and local
administrations and their other financial transactions shall be subject to the
provisions of the relevant laws without prejudice to the provisions hereof. However, the detailed expenditure
programs and financing programs of the social security institutions and those
of local administrations shall be prepared, deliberated and approved together
with their budgets, and the appropriations shall be utilized in this framework.
In
cases where there is a complete breakdown of the financial management and
control system or there are indications of a major corruption or a public loss,
upon the request of the relevant governor for the special provincial
administrations or of the mayor for the municipalities or upon the direct
approval of the Prime Minister; the Minister of Interior may have authorized
audit staff inspect the entire financial management and control systems,
financial decisions and transactions of the public administrations as to their
compliance with the legislations. A copy of the reports to be issued at the end
of such inspections shall be sent to the Internal Audit Coordination Board, and
another copy for taking required actions to the governor or mayor concerned.
Shares to be collected from Proceeds of Institutions
Article 78-
An amount up to fifteen percent of the gross proceeds of state economic
enterprises and public corporations shall be collected and recorded as revenue
to the general budget. In this respect, the institutions and agencies from
which such amounts shall be collected, the ratios of the shares from proceeds
and the payment place and time shall be determined by the Council of Ministers.
Shares
from proceeds not paid in due time shall be collected according to the Law No
6183 dated 21/7/1953 with a late payment interest at a rate stated in the
Council of Ministers. The late payment interest calculated shall be collected
from the institution’s or agency’s officers who are authorized for the payment
of such shares. However, no late payment interest shall be applied for the additional
time granted by the Ministry of Finance.
(Amendment: 22.12.2005 -
5436/10-a art.) Revenue surplus to occur quarterly of the regulatory
and supervisory agencies shall be transferred to the general budget until the
fifteenth of the month following each quarter. The provision of this paragraph
is applied also to the Istanbul Stock Exchange. In case the said amounts are
not paid in time, the unpaid amounts are followed and collected by applying
delay increase as per the provisions of the Law dated 21.7.1953 and No 6183.
Canceling Public Receivables
Article 79- The Minister of Finance for the
public administrations within the scope of the general budget, and the heads of
public administrations for other public administrations are authorized for the
deletion of public receivables which are recorded in the administration's
accounts but cannot be followed-up and collected due to any imperative or force
majeuer reasons and which do not exceed the amount specified in the Central
Government Budget Law. Public receivables exceeding specified amounts and
envisaged to be deleted shall be indicated in the schedule annexed to the
Central Government Budget Law.
Authority
Article 80- The Ministry of Finance is
authorized to carry out the required arrangements regarding the enforcement of
the provisions of this Law.
NINTH PART
Annulled Provisions, Provisional
Articles and Enactment
Annulled Provisions
Article 81- Without prejudice to
the provisions of the provisional articles of this Law;
a) General Accounting Law No 1050 and
supplements and amendments thereof,
b) Articles 30, 32, 33, 36, and 37, and other provisions incompliant
herewith, of the Court of Accounts Law No 832,
c) Related to the public
administrations within the scope of this Law, with the exception of Articles 98
– 106 of Law No 211 dated 4/1/1961, provisions of other laws that stipulate
exception or exemption on the application of the General Accounting Law No
1050, Travel Allowance Law No 6245 and Court of Accounts Law No 832,
d) The third paragraph of Article 14 of Law No
4749 dated 28/3/2002,
e) Article 15 of Law No 4481 dated 26/11/1999,
f) Provisions of
other laws that are incompliant with those of this Law
are
annulled.
Provisional Article 1- In the public administrations
where the financial transactions have been conducted by the Ministry of Finance
until the entry into force of this article, the duties required to be performed
according to this Law shall be conducted by the units of the Ministry of
Finance until the establishment of financial management and control system
defined by this Law. The transfer of authority to the administrations shall be
realized upon the proposal of the Ministry of Finance on the basis of each
administration when the criteria to be determined by the Ministry of Finance
are fulfilled.
In other public administrations,
until the establishment of financial management and control system defined by
this Law, the duties related to the financial management and control process
required by this Law shall be conducted by the units and officers having
similar duties and authorizations. Units and officers having similar duties and
authorizations in these public administrations shall be determined by the head
of the concerned public administration upon the positive opinion of the
Ministry of Finance.
In the framework of its guidance and
coordination duties, the Ministry of Finance shall assist the establishment of
financial management and control systems in public administrations.
Transition period shall not exceed
the date of 31/12/2007.
Provisional Article 2- The by laws, regulations and other
arrangements referred hereto, shall be published latest by 31/12/2004.
Provisional Article 3- Until the Board referred in Article 49 of this Law determines, the
accounting standards to be applied in the public administrations within the
scope of general government shall be defined by the Ministry of Finance.
Provisional Article 4- (Amendment: 22.12.2005 - 5436/10-a
art.) In the view of adaptation to the financial management and control systems
provided by this Law, the amendments required in the Bylaw of Turkish Grand
National Assembly and in the legislations related to the administrations within
the scope of this Law shall be made latest until 31/12/2007.
(Amendment: 22.12.2005 - 5436/10-a
art.) The law that stipulates the activities of the public administrations
within the scope of general budget, including those defined in their relevant
laws apart from their public duties and services, and that stipulates the
revenues obtained from their priceable good and service deliveries shall enter
into force until 31/12/2007.
Provisional Article 5- (Amendment: 22.12.2005 - 5436/9
art.) As of latest 31/12/2005 and until 31/12/2007;
a) Those actually working in the
positions of the Ministry of Finance as Head of Budget Office, Accounting
Director, Revenue Accountancy Office Director, County Revenue Director,
Accountancy Office Director, Tax Office Director, Tax Director, Military Tre
b) Those actually working as
principal responsibles in the accounting units of the special budget agencies,
of the local administrations and of the social security institutions, and those
having assumed for at least five years such positions as Head of Budget Office,
Head of Revenue and Expenditure Department, Head of Accounting Department,
Revenue Director, Budget Director and Accounting Director may be appointed as
Accounting Officer in the mentioned administrations,
c)
Those actually working in the positions of Court of Accounts Auditor, Inspector
of Prime Ministry, Auditor of High Auditing Board, Finance Inspector, Account
Expert, Budget Controller, Accounting Controller, Revenues Controller, National
Estate Controller, Controller of Liquidation Transactions and Revolving Fund
Enterprises, Tre
d)
Those who are inspectors or controllers in the Ministries, Undersecretariats,
Presidencies or General Directorates and those having assumed such positions
for at least five years may be appointed as Internal Auditors in their own administrations,
special budget agencies, local administrations or social security
administrations,
e)
Those who are Accounting Auditors, National Estate Auditors and Tax Auditors,
and those who have been previously at these duties for at least five years, may
be appointed at special budget administrations and local governments;
Municipality Inspectors and Accounts Comptrollers and those having assumed such
positions for at least five years may be appointed in local administrations as
Internal Auditor.
Those who are carrying out the
accounting services of the public administrations as first degree responsible
as of 31.12.2005 shall carry out their duty as accounting officer of their
public administrations starting from 01.01.2006 until a certified accounting
officer is appointed. These persons shall be appointed to an appropriate duty
in their personnel in case they cannot get a certificate. However, until the
appointment of an accounting officer in the administrations whose accountancy
services are carried out by the budget offices, accounting services shall be
performed by the persons to be determined by the Ministry of Finance.
Those who will be appointed in order
to perform the duty of the accounting officer mentioned in line (a) and (b)
shall receive a professional training to be provided by the Ministry of Finance
and successfully pass the examination and receive a certificate. However, from
those appointed to the duties mentioned in line (a) and (b) the examination
condition shall not be sought in their appointment as accounting officer.
Those appointed to the duties
mentioned in line (c), (d) and (e) shall
be subject to the training for the application of the system foreseen by this
Law. In the appointments, the consent of the concerned person and his/her
administration shall be obtained.
Provisional Article 6 – (Abolishment: 22.12.2005 - 5436/10-c art.)
Provisional Article 7 – (Abolishment: 22.12.2005 - 5436/10-c art.)
Provisional Article 8- Chairman and Members of the
Internal Audit Coordination Board shall be appointed within two months
following the date of publishing of this Law.
Provisional Article 9- References made by other laws to
the provisions of the General Accounting Law No 1050 shall be deemed to be made
to this Law.
Provisional Article 10- The external audits on the
transactions which the regulatory and supervisory agencies and the special
budget agencies perform until 31/12/2005, and which are subjected to the audit
of the Court of Accounts for the first time with this Law shall continue to be
performed according to the provisions of their relevant Laws.
Provisional Article 11- The budgets of the revolving fund
enterprises and funds affiliated with the public administrations within the
scope of general government shall be included in the budgets of relevant
administrations.
(Amendment: 22.12.2005 - 5436/10-a
art.) Revolving fund enterprises established in the public administrations
under the scope of this Law shall be restructured until 31/12/2007.
(Amendment: 22.12.2005 - 5436/10-a
art.) Until the revolving fund enterprises are restructured, the preparation,
application, finalization and accounting of their budgets and their control and
audit shall be determined by the regulation to be enforced by the Ministry of
Finance. Accounting of the funds shall be carried out in accordance with the
accounting system foreseen by this Law.
Last paragraph (Abolishment:
22.12.2005 - 5436/10-c art.)
Provisional Article 12- According to the first paragraph of
Article 45, among the immovables that should be registered under the name of
State Tre
Provisional Article 13- The Ministry of Finance shall
determine in which chart each public administration established after the
publishing of this Law will be included.
Provisional Article 14- For the effective and efficient
fulfillment of the services required by this Law, the positions in List I
annexed to this Law shall be created to be used in the General Directorate of
Budget and Fiscal Control, Research, Planning and Coordination Board and
Ministry of Finance High Training Center. These positions shall be added to the
relevant sections concerning Ministry of Finance of List I annexed to Decree
Law No 190, and the positions in List II annexed to this Law shall be annulled
and removed from the sections concerning Ministry of Finance of List I annexed
to the said Decree Law. The vice president to be assigned to Research, Planning
and Coordination Board shall be appointed by the approval of the Minister, and
shall exercise all the rights provided for deputy general directors in the
relevant legislation.[1]
ANNEXED ARTICLE: (Amendment: 22.12.2005 - 5436/11 art.) The accounting services of Turkish Grand National Assembly and
Turkish Court of Accounts shall be rendered by the accounting officers assigned
by the President of Turkish Grand National Assembly, whereas the accounting
services of the Presidency of the Republic shall be rendered by the accounting
officers assigned by the Secretary General of the Presidency.
CHART NO I
PUBLIC
ADMINISTRATIONS WITHIN THE SCOPE OF GENERAL BUDGET
(Amendment:
22.12.2005 - 5436/12art.)
1- Turkish Grand National Assembly
2- Presidency of Republic
3- Prime Ministry
4- Constitutional Court
5- Supreme Court of Appeals
6- Council of State
7- Court of Accounts
8- Ministry of Justice
9- Ministry of National Defense
10- Ministry of Interior
11- Ministry of Foreign Affairs
12- Ministry of Finance
13- Ministry of National Education
14- Ministry of Public Works and
Settlement
15- Ministry of Health
16- Ministry of Transport
17- Ministry of Agriculture and Rural
Affairs
18- Ministry of Labor and Social
Security
19- Ministry of Industry and Trade
20- Ministry of Energy and Natural
Resources
21- Ministry of Culture and Tourism
22- Ministry of Environment and Forestry
23- General Secretariat of National
Security Council
24- Undersecretariat of National
Intelligence Organization
25- General Commandership of Gendarmerie
26- Commandership of Costal Security
27- General Directorate of Security
28- Presidency of Religious Affairs
29- Undersecretariat of State Planning
Organization
30- Undersecretariat of Tre
31- Undersecretariat of Foreign Trade
32- Undersecretariat of Customs
33- Undersecretariat of Marine
34- Secretariat General for the European
Union Affairs
35- Prime Ministry High Auditing
Board
36- State Personnel Presidency
37- Presidency of Administration for
Handicapped
38- Turkish
Statistical Institute
39- Presidency of Revenue Administration
40- General Directorate of State
Waterworks
41- General Directorate of Highways
42- General Directorate of Land Registry
and Cadastre
43- General Directorate of State
Meteorology Affairs
44- General Directorate of Agricultural
Reform
45- General Directorate for Petroleum
Affairs
46- General Directorate of
Press-Publication and Information
47- General Directorate of Social
Assistance and Solidarity
48- General Directorate of Social
Services and Child Protection Association
49- General Directorate of Family and
Social Research
50- General Directorate on the Status
and Problems of Women
CHART
NO II
SPECIAL
BUDGET ADMINISTRATIONS
(Amendment: 22.12.2005 - 5436/12art.)
A) COUNCIL OF HIGHER
EDUCATION, UNIVERSITIES AND HIGH TECHNOLOGY INSTITUTES
1- Council of Higher Education
2- Student Selection and Placing Center
3-
4-
5-
6-
7-
8-
9-
10-
11-
12-
13-
14-
15-
16-
17-
18-
19
Mayıs University
19-
20-
21-
22-
23-
9
Eylül University
24-
25-
26-
27-
28-
29-
100.
30-
31-
Abant
İzzet
32-
33-
34-
35-
Celal
36-
Çanakkale
18
37-
38-
39-
Gebze
High Technology Instıtute
40-
41-
Izmir
High Technology Institute
42-
43-
44-
45-
46-
47-
48-
49-
50-
51-
52-
53-
54-
55-
56- (Annex:
1/3/2006-5467/5 article) Ahi Evran University
57- (Annex:
1/3/2006-5467/5 article) Kastamonu University
58- (Annex:
1/3/2006-5467/5 article) Düzce University
59- (Annex:
1/3/2006-5467/5 article) Mehmet Akif Ersoy University
60- (Annex:
1/3/2006-5467/5 article) Uşak University
61- (Annex:
1/3/2006-5467/5 article) Rize University
62- (Annex:
1/3/2006-5467/5 article) Namık Kemal University
63- (Annex:
1/3/2006-5467/5 article) Erzincan University
64- (Annex:
1/3/2006-5467/5 article) Aksaray University
65- (Annex:
1/3/2006-5467/5 article) Giresun University
66- (Annex:
1/3/2006-5467/5 article) Hitit University
67- (Annex:
1/3/2006-5467/5 article) Bozok University
68- (Annex:
1/3/2006-5467/5 article) Adıyaman University
69- (Annex:
1/3/2006-5467/5 article) Ordu University
70- (Annex:
1/3/2006-5467/5 article) Amasya University
B) OTHER SPECIAL
BUDGET ADMINISTRATIONS
(Amendment: 22.12.2005 - 5436/12 art.)
1- Undersecretariat of Defense Industry
2- Presidency of High Agency of Atatürk
Culture, Language and History
3-
4- The Scientific and Technical
Research Council of
5-
6-
7- General Directorate of Credit and
Dormitories Agency
8- General Directorate of Youth and
Sport
9- General Directorate of State
Theatres
10- General Directorate of State Opera
and Ballet
11- General Directorate for Forestry
12- General Directorate of Foundations
13- General Directorate of Health for
Borders and Coasts
14- Electric Power Affairs and Study
Administration
15- General Directorate of Mining Study
and Research
16- Directorate General of Civil
Aviation
17- Turkish Accreditation Agency
18- Turkish Standards Institute
19-
20- Turkish Patent Institute
21- National Boron Research Institute
22- Turkish Atomic Energy Agency
23- Presidency of Development and
Support of Small and Medium Size Enterprises Administration
24- Center for Studies for Developing
Exports
25- Turkish Presidency of Cooperation
and Development Administration
26- Presidency of Special Environmental
Protection Agency
27- Presidency of GAP Regional
Development Administration
28- Presidency of Privatization
Administration
29- Agency for Workshops in Punishment
and Execution Establishments and Custodies
CHART NO III
REGULATORY
AND SUPERVISORY AGENCIES
(Amendment:
22.12.2005 - 5436/12art.)
1. Radio and Television High Council
2. Telecommunication Agency
3. Capital Markets Board
4. Banking Regulation and
Supervision Agency
5. Energy Market Regulation Board
6. Public Procurement Agency
7. Presidency of Competition Agency
8. Tobacco, Tobacco Products and
Alcoholic Beverages Market Regulation Agency
CHART NO IV
SOCIAL
SECURITY INSTITUTIONS
(Amendment:
22.12.2005 - 5436/12art.)
1- Social Security Institution
2- General Directorate of Turkish Labor
Agency
[1] For the positions mentioned with this Article, please see
Official Gazzette issue No. 25326 dated 24/12/2003