Country Report of the Turkish Court of Accounts

Musa KAYRAKPrincipal Auditor, CISA

December, Tehran

Recommendation 1Improve constitutional and legal basis in order to ensure better

functioning of SAIs

Established by virtue of the Constitution and enjoys a permanent legal status

Mentioned the first Constitution(1876 ) of the Ottoman Empire (Chamber of Accounts)

Maintained its status in 1924, 1961 and 1982 Constitutions of the Turkish Republic.

The Law on the TCA

TCA Experience

Recommendation 2Improve all aspects of independence of SAIs

Independent of the legistlative, executive and judicial branches

President and members:◦ A fixed term under the Constitution or law◦ The fix term of office of the President of Turkish

Court of Accounts shall be five years. May be elected twice at most.

◦ Members are elected until retirement.

TCA Experience

Enjoys financial independence without any intervention of the Ministry of Finance ◦ Within the scope of the general budget◦ Preparing its own budget independently◦ Does not have to follow the general budgeting

procedures as it is the case for other public administrations under the general budget.

◦ According to the article 62 of the Law on the TCA, the Presidency of TCA shall submit its budget directly to the Turkish Grand National Assembly (TGNA) and forward one copy to the Ministry of Finance.

The Turkish Grand National Assembly has the final say on the budget of the TCA. ◦ However, in practice, the TCA does not face any

budgetary limitation imposed by the TGNA.

TCA Experience

Recommendation 3Broaden audit mandate of SAIs to

strengthen the external audit function in the public financial management and

control system

Central or national government agencies, bureaus, offices, instrumentalities and local government units at all levels

In addition to this, the TCA has the power to audit: All types of administrations, organizations, institutions,

associations, enterprises and companies affiliated to, or founded by public administrations

Domestic and foreign resources and funds, including European Union funds;

All public accounts, including private accounts, funds, resources and activities regardless of whether these are in the public administrations budget;

Accounts and transactions of international institutions and organizations within the framework of the principles set out in the relevant treaty or agreement

TCA Experience

Recommendation 4Build a strategic approach to fight

against corruption

TCA Experience 1. National Strategy for Improving

Transparency and Strengtening Anti-corruption

2. Strategic Plan of TCA 2014-20183. Anti-corruption Strategy and Action Plan of

the TCA4. Anti-fraud manual (to be prepared)

Recommendation 5Develop methodologies and business

processes to determine high risk areas and fraud indicators

TCA Experience 1. General risk assessment methodology of the

TCA2. Implementation of audits:

1. Physical observation and site visits, 2. Risk analysis and analysis of complaints and referrals

received and3. Cross control of data obtained especially from different

sources.

3. Sources for RF &FI: Frequently mentioned subjects in the official reports of

criminal act written by auditors Main issues highlighted in the denunciation letters, Hot topics or alleged cases of corruption in the media Legal conflicts which involve auditees of the TCA.

Recommendation 6Investigation power is not appropriate

for the most SAIs. Yet, each SAI needs to carry out an initial review of the suspicious cases of corruption

TCA Experience: Trial of Accounts

Trial of accounts is carried by the Chambers of the TCA and TCA judgements results in four main decisions:1. Compliance of accounts and transactions with

legislation in force2. Indemnification of public loss from those

responsible3. Matters deemed necessary are communicated

to relevant public authorities4. Cases sent directly to the Public Prosecution

Office for an investigation when discovered acts involving guilt

Recommendation 7 Use technology to enhance the quality

and effectiveness of audits

1. Which technology to use; 2. How to improve the productivity in audit

planning and implementation;3. IT risks that should be highlighted; 4. Dealing with BIG data5. The better use of information and

communication technologies (ITC) in improving communication with all stakeholders.

Recommendation 8Ensure the self integrity of SAIs

TCA Experience: Regulation on the professional code of ethics for the TCA auditors

Establishing the Ethics Committee Implementing an INTOSAINT workshop to

improve the internal aspect of transparency and accountability

Recommendation 9Improve training and expertise of auditors regarding anti-corruption

Regular trainings on anti-corruption, fraud indicators, provisions of criminal law, tool and techniques to detect corruption and fraud

Build a certified expert team (e.g. CFE) Support academic thesis and researches in

the field

Recommendation 10 Improve collaboration and coordination

among SAIs

A problem beyond national borders Dissemination of knowledge and experience

by seminars, conferences A database of the detected cases of

corruption; gain knowledge of successful and/or bitter experiences create a list of high risk areas and develop related

methodologies; take necessary measures in international law;

Joint and parallel audits Follow-up/audits of international conventions

and finally corruption is deadly and we have to stop it at any cost

THANK YOU

Musa KAYRAKPrincipal Auditor, CISA