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

National Seminar on Developing a Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey Mahir ADANIR Mustafa SUYABATMAZ 10 September 2013 Ankara - Turkey.

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

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  1. National Seminar on Developing a Program for the Implementation of the 2008 SNA and Supporting Statistics in TurkeyMahir ADANIRMustafa SUYABATMAZ10 September2013 Ankara - Turkey

  2. National Seminar on Developing A Program for the Implementationof the2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Public Accounting System in Turkey • Migrated to accrual basis by Public FinancialManagement and Control Law(2004), • Accrualbasis and cash basis • Simultaneoustracking of budget realizations through analytical budget classifications. • By using reflection accounts.

  3. National Seminar on Developing A Program for the Implementationof the2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Analitical Budget Classification COFOG

  4. National Seminar on Developing A Program for the Implementationof the2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey • Therewas a Budget OrientedReporting, sothetransactions, whichwereincludedoptionallyintothe Budget Law, werereportedinstead of allactivities of thegovernment. • While data of thebudgetaryinstitutionswereproducedfromthecashbasedaccountingsystem, data of theotherinstitutionswerecompiledwithquestionnaires. • Governmentfinancialtablesdid not reflecttherealfinancialsituation of thegovernment. How had been the governmentfinancialtablesproduced before 2004? (1)

  5. How had been thegovernmentfinancialtablesproduced before 2004 ? • The government’s non-financial assets couldn’t be integrated into the accounting process and couldn’t be reported. • Accounting systemsusedtohaveand 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 governmentfinancialdata for all public entities was almost impossible. Because,accountingsystemcouldn’t be usedtomeasure general government’s size, public accountscouldn’t be managedeffectively.

  6. National Seminar on Developing A Program for the Implementationof the2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey • 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 beingcomprisedbytheinstitutional, functional and economic sub-classification has been developed, • For providing the implementation unity, a standard government accounting system was established andall of the institutionshavebeenobligedtoimplementthisstandard. Transition Stages of New System -1-Adoption of The New Public Finance Management and Control Law

  7. Transition Stages of New System -2-Establishment of Accrual Based Accounting System • Accrualbasedaccountingsystemwas put intopracticebetween 2004 and 2006, • Frameaccountingregulationandframechart of accountswerecreatedforthe general govenment, • Under thecoordination of theMinistry of Finance accountingarrangements of centralgovernment, localgovernmentandsocialsecurityinstitutionsweremadeandtheirdetailcharts of accountswerecreated • Theinstitutionsareobligedtoissuefollowingtables • Trial Balance, • BalanceSheet, • Operating Tables, • Cash FlowTable, • TheTablesfor Budget ImplementationResultsetc.

  8. National Seminar on Developing A Program for the Implementationof the2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Allaccountingunitsbegantooperate online in thecentral IT system(Say 2000i system) developedbyMinistry of Finance throughoutthecountryforaccounting service of budgetaryinstitutions, Instantmonitoring of financialtransactions of budgetaryinstitutions has beenensured, Compilation of quarterlyfinancial data of app. 4600 localgovernmentunitswasensuredthroughPublic Expense and Accounting IT System(KBS). Transition Stages of New System -3-Generation of IT Infrastructure

  9. National Seminar on Developing A Program for the Implementationof the2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey • Forputtingnewaccrualbasedaccountingsystemintopractice ; • 490 accountants were trained as trainers in the field. • These trainerstrained9000 accounting staff members throughoutthe country. Transition Stages of New System -4-Training Activities

  10. National Seminar on Developing A Program for the Implementationof the2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey • As a result of enactingnewLawandAccrualBased Accounting System, followingtables of allunitsandsub-sectors of general governmentand general governmentsectorcould be issued: • BalanceSheet, • Operating ResultsTable, • The Cash FlowTable , • Budget Tablesand • Thestatisticsaccordingto GFSM 2001. Transition Stages of New System -5-Production of The Government’s Balance Sheet and the GFS Tables

  11. National Seminar on Developing A Program for the Implementationof the2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey • Itwasestablished a workinggroupfordeterminingthescope of general governmentsectoraccordingtointernationalcriteria (ESA 95). Thisworkinggroupconsists of • Ministry of Finance, • Undersecretariant of Treasury, • TurkishRepublic of Central Bank, • Ministry of Development, • Turkish Statistical Institute. Redetermination of Coverage of General Government Sector

  12. National Seminar on Developing A Program for the Implementationof the2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey • In 2008, a workshop washeldtoredeterminethecoverage of general government. Expertsfrom IMF, EUROSTAT andfromsome EU countriescontributedtothe workshop. • In 2009, coverage of general governmentsectorwasredeterminedaccordingtotheresult of workshop andtheinternationalcriteriabythisworkinggroup. • Theprocesswill be repeatedonce in a two-yearperiod. • Folowingdecisiontreewasused in ordertoclassify an institutionalunit in general governmentor not. Redetermination of Coverage of General Government Sector

  13. DECISION TREE

  14. National Seminar on Developing A Program for the Implementationof the2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey • As theMinistry of Finance wecompile data; • Fromcentralgovernment in real time, • Fromextrabudgetaryinstitutionsquarterly. • Fromlocalgovernmentsmonthly, • Fromsocialsecurityinstitutionsquarterly. • Anddisseminatemontly data in t+15 days, quarterly data in t+3 months Data CompilingPeriods

  15. Central Government General Budget Institutions (1530) Special Budget Institutions (270) Regulatoryand SupervisoryInstitution (8) ExtraBudgetary Funds (4) SocialFacilities (342) RevolvingFunds OtherExtraBudgetary Institutions (11) • Accounting Unit of GovernmentDept (EveryFriday), TaxUnits (EveryMorning), Accounting Unit of Precidency of Republic (EveryMonth) • PenalInstitutionswithPrisonsandWorkingPlaces (EveryMonth) • PublicProcurementAuthority, Energy Market RegulatoryAuthority, Information and Communications TecnologiesAuthority • (EveryMonth) • Compiledquarterly

  16. LocalGovernment Municipilaties (2949) Provincial Special Administration (83) LocalGoverment Unions (1714) Development Agencies (26) Provincial Youth and Sport Agencies (81) Compiledmonthly Compiledquarterly

  17. Social Security Sector Social Security Institution TurkishEmployment Institution Unemployement InsuranceFund Compiledquarterly

  18. National Seminar on Developing A Program for the Implementationof the2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Reportinganddisseminating general governmentfinancialtables • AccordingtotheTurkishOfficialStatisticsProgramme, • Monthlytablesaredisseminated in t+15 days. • Quarterlytables are disseminated in t+3months • Annual tables are disseminated in t+5 months. • WesendGFS tables of centralgovernmentmonthlyand GFS tables of the general governmentannuallytotheIMF. Andalso TURKSTAT, Central Bank andTreasuryusethese data fortheirstatistics.

  19. THANK YOU FOR YOUR ATTENTION

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