National Seminar on Developing a Program for the Implementation of the 2008 SNA and Supporting...

National Seminar on Developing a Program for the Implementation of the 2008 SNA and

Supporting Statistics in Turkey

Mahir ADANIRMustafa SUYABATMAZ

10 September 2013 Ankara - Turkey

• Migrated to accrual basis by Public Financial Management and Control Law(2004),

• Accrual basis and cash basis

• Simultaneous tracking of budget realizations through analytical budget classifications.

• By using reflection accounts.

National Seminar on Developing A Program for the Implementation of the

2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey

Public Accounting System in Turkey



Analitical Budget Classification

Institutional Functional Financial Economical

I II III IV I II III I I II III IV

There was a Budget Oriented Reporting, so the transactions, which were included

optionally into the Budget Law, were reported instead of all activities of the

government.

While data of the budgetary institutions were produced from the cash based

accounting system, data of the other institutions were compiled with questionnaires.

Government financial tables did not reflect the real financial situation of the

government.



How had been the government financial tables produced before 2004 ? (1)

The government’s non-financial assets couldn’t be integrated into the accounting process and couldn’t be reported.

Accounting systems used to have and didn’t provide information about: Payment arrears, Accrued expenses, Incurred liabilities due to accrued expenses such as interest, Accrued revenues other than tax revenues, Claimed receivables due to accrued revenues such as interest, and Contingent liabilities.

Compiling the government financial data for all public entities was almost impossible.

Because, accounting system couldn’t be used to measure general government’s size, public accounts couldn’t be managed effectively.

How had been the government financial tables produced before 2004 ?

New Law was enacted in 2003,

The scope of the Law was determined as «General Government Sector» according to the international criteria,

the Law has brought following innovations;

Common rules have been introduced for the institutions within the scope of central government, local government and social security institutions; and financial system of the institutions has been made uniform,

Analytical budget classification being comprised by the institutional, functional and economic sub-classification has been developed,

For providing the implementation unity, a standard government accounting system was established and all of the institutions have been obliged to implement this standard.



Transition Stages of New System -1-Adoption of The New Public Finance Management and Control Law

Accrual based accounting system was put into practice between 2004 and 2006,

Frame accounting regulation and frame chart of accounts were created for the general govenment,

Under the coordination of the Ministry of Finance accounting arrangements of central government, local government and social security institutions were made and their detail charts of accounts were created

The institutions are obliged to issue following tables

Trial Balance,

Balance Sheet,

Operating Tables,

Cash Flow Table,

The Tables for Budget Implementation Results etc.

Transition Stages of New System -2-Establishment of Accrual Based Accounting System

All accounting units began to operate online in the central IT system

(Say 2000i system) developed by Ministry of Finance throughout

the country for accounting service of budgetary institutions,

Instant monitoring of financial transactions of budgetary institutions

has been ensured,

Compilation of quarterly financial data of app. 4600 local government

units was ensured through Public Expense and Accounting IT

System (KBS).



Transition Stages of New System -3-Generation of IT Infrastructure

For putting new accrual based accounting system into

practice ;

490 accountants were trained as trainers in the field.

These trainers trained 9000 accounting staff members

throughout the country.



Transition Stages of New System -4-Training Activities

As a result of enacting new Law and Accrual Based

Accounting System, following tables of all units and

sub-sectors of general government and general

government sector could be issued: Balance Sheet,

Operating Results Table,

The Cash FlowTable ,

Budget Tables and

The statistics according to GFSM 2001.



Transition Stages of New System -5-Production of The Government’s Balance Sheet and the GFS Tables

It was established a working group for determining the scope of

general government sector according to international criteria (ESA 95).

This working group consists of

Ministry of Finance,

Undersecretariant of Treasury,

Turkish Republic of Central Bank,

Ministry of Development,

Turkish Statistical Institute.



Redetermination of Coverage of General Government Sector

In 2008, a workshop was held to redetermine the coverage of general government.

Experts from IMF, EUROSTAT and from some EU countries contributed to the

workshop.

In 2009, coverage of general government sector was redetermined according to the

result of workshop and the international criteria by this working group.

The process will be repeated once in a two-year period.

Folowing decision tree was used in order to classify an institutional unit in general

government or not.



Redetermination of Coverage of General Government Sector

DECISION TREE

As the Ministry of Finance we compile data;

From central government in real time,

From extra budgetary institutions quarterly.

From local governments monthly,

From social security institutions quarterly.

And disseminate montly data in t+15 days,

quarterly data in t+3 months



Data Compiling Periods

Central Government

General Budget Institutions (1530)

Special Budget Institutions (270)

Regulatory and Supervisory Institution (8)

Extra Budgetary Funds (4)

Social Facilities (342)

Revolving Funds

Other Extra Budgetary Institutions (11)

Accounting Unit of Government Dept (Every Friday), Tax Units (Every Morning), Accounting Unit of Precidency of Republic (Every Month)

Penal Institutions with Prisons and Working Places (Every Month)

Public Procurement Authority, Energy Market Regulatory Authority, Information and Communications Tecnologies Authority

(Every Month)

Compiled quarterly

Local Government

Municipilaties (2949)

Provincial Special Administration (83)

Local Goverment Unions (1714)

Development Agencies (26)

Provincial Youth and Sport Agencies (81)

Compiled monthly

Compiled quarterly

Social Security Sector

Social Security Institution

Turkish Employment Institution

Unemployement Insurance Fund

Compiled quarterly

According to the Turkish Official Statistics Programme,

Monthly tables are disseminated in t+15 days.

Quarterly tables are disseminated in t+3 months

Annual tables are disseminated in t+5 months.

We send GFS tables of central government monthly and GFS

tables of the general government annually to the IMF. And

also TURKSTAT, Central Bank and Treasury use these data for

their statistics.



Reporting and disseminating general government financial tables

THANK YOU FOR YOUR ATTENTION

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