Transcript Slayt 1

ROLE OF SUPREME AUDIT INSTITUTIONS IN
DEVELOPING
PUBLIC FINANCIAL MANAGEMENT (PFM)
Assoc. Prof. Dr. Recai AKYEL
President of the Turkish Court of Accounts
IV. EUROSAI/ARABOSAI Joint Conference
16-18 April 2013, Baku
Role of SAIs in Developing
Public Financial Management (PFM)
OUTLINE OF THE PRESENTATION
1. INTRODUCTION
2. EXPERIENCE OF THE TURKISH COURT OF
ACCOUNTS (TCA)
3. CONCLUSION AND SUGGESTIONS
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INTRODUCTION - 1
 Supreme Audit Institutions (SAIs), which conduct
audits, are a part of the PFM system in their countries.
 The effective operation of SAIs and the generation of
reliable reports by the SAIs play an important role in the
improvement of financial system. The findings and
suggestions in those reports generally form the most
fundamental inputs of the reform processes in PFM.
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INTRODUCTION- 2
 External audit focuses on providing consultancy and
contribution to public entities.
 The entities, the Parliament and the public are
informed in an accurate and reliable manner about the
general functioning of the PFM; the risks in the system
are put forward; and necessary suggestions are
developed to eliminate those risks.
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EXPERIENCE OF THE TCA - 1
PURPOSES OF EXTERNAL AUDIT
The audit of the TCA is carried out with the purposes of:
 Submitting reliable and sufficient information to the
Turkish Parliament and the public concerning the activity
results of public administrations, as required by the power
of purse,
 Executing PFM in conformity with laws, and
safeguarding the public resources,
 Evaluating the performance of public administrations,
 Establishing and extending accountability and fiscal
transparency.
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EXPERIENCE OF THE TCA - 2
BOUNDARIES OF EXTERNAL AUDIT
 TCA does not undertake propriety audit and does not
render decisions that limit or remove the discretion of
management.
 Audits are carried out in accordance with the generally
accepted international auditing standards.
 For maintaining quality assurance, each stage of audit
is reviewed constantly in terms of its conformity with audit
standards, strategic plans, audit programs and
professional code of ethics.
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EXPERIENCE OF THE TCA - 3
TYPES OF EXTERNAL AUDIT
 Audits by the TCA:
Regularity audit (financial audit and compliance audit),
Performance audit,
Audits assigned by the Parliament.
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EXPERIENCE OF THE TCA - 4
ANNOUNCEMENT OF REPORTS
 The reports of the TCA, except for the cases
forbidden by law, are announced to the public by the
President of the TCA or the Deputy President assigned
by him, within fifteen days after the submission of the
reports to the Turkish Parliament and related public
administrations.
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EXPERIENCE OF THE TCA - 5
EXTERNAL AUDIT REPORTS
 The TCA submits the following reports to the Turkish
Parliament:
1) Statement of General Conformity
2) External Audit General Evaluation Report
3) Accountability General Evaluation Report
4) Financial Statistics Evaluation Report
5) State Economic Enterprises Audit Reports
6) Other Reports
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EXPERIENCE OF THE TCA - 6
GETTING THE TCA’S OPINION
 By-laws and regulatory acts in force of by-laws to be
regulated in financial matters by public administrations
enter into force after getting the advisory opinion of the
TCA. The TCA gives its opinion on those regulations
within thirty days after the request is made.
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EXPERIENCE OF THE TCA - 7
JUDICIAL POWERS
 Thanks to the judicial audits that the TCA has been
conducting as an Accounts Court since its inception, the
public loss incurred due to irregular transactions is
recovered from those responsible.
 In addition, where an irregular transaction results in
public loss, the relevant Ministry or its top management is
informed of and warned against the situation and the
existing risks.
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EXPERIENCE OF THE TCA - 8
INTERNAL AUDIT
 The Internal Audit Coordination Board has been
established under the Ministry of Finance in order to monitor
the internal audit systems of public administrations.
 Internal audits are performed in line with the auditing and
reporting standards established by the Board on the basis of
internationally accepted standards.
 Internal audit reports and the actions taken accordingly are
communicated by the heads of the administrations to the
Internal Audit Coordination Board within two months at the
latest.
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EXPERIENCE OF THE TCA - 9
RELATION BETWEEN INTERNAL AUDIT AND
EXTERNAL AUDIT
 During the audits of the TCA, the reports produced by
internal auditors are obtained and used in risk
assessment.
 Since internal auditors are more familiar with the
auditee, the TCA auditors communicate with internal
auditors throughout the audit process.
 With the help of this communication, the TCA auditors
obtain information from internal auditors and their reports
on significant matters and risks.
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CONCLUSION AND
SUGGESTIONS
SAIs should make an effort to conduct accurate and
reliable audits and produce reports.
The public administrations, the Parliament and the
public should attach the required significance and value
to the SAI reports.
 Auditees should be apt to benefit from these reports.
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