Public Financial Management and Control Law No. 5018
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Republic of Turkey Ministry of Finance Strategy Development Unit PUBLIC FINANCIAL MANAGEMENT AND CONTROL LAW NO. 5018 December 2013, Ankara NOTE: The amendments made by the Laws No. 5263, 5273, 5286, 5335, 5345, 5429, 5431, 5436, 5467, 5502, 5538, 5544, 5548, 5628, 5662, 5765, 5793, 5902, 5917, 5952, 5978, 5979, 6001, 6005, 6009, 6087, 6093, 6114, 62 18, 6225, 6287, 6296, 6307, 6328, 6332, 6338, 6410, 6456, 6458, 6501, 6514, 6552, 6562, 6569, 6639, 6640, 6641, 6645, 6698, 6701, 6745, 6761, 6764, 6769, 7033, 7060, 7061, 7063, 7070, 7071, 7078, 7079 and 7141 and the Decree Laws No. 643, 644, 648, 649, 655, 656, 657, 658, 659, 660, 662, 663, 676, 678, 694 and 696 were inserted in the Public Financial Management and Control Law No.5018 CONTENTS Article Page FIRST PART General Provisions FIRST SECTION Purpose, Scope and Definitions Purpose ............................................................................................ 1 1 Scope ............................................................................................. 2 1 Definitions ....................................................................................... 3 2 SECOND SECTION Public Finance Public Finance ................................................................................ 4 3 Fundamental Principles of Public Finance ...................................... 5 3 Unity of Treasury ............................................................................ 6 4 THIRD SECTION General Principles on the Utilization of Public Resources Fiscal Transparency ....................................................................... 7 5 Accountability ................................................................................. 8 5 Strategic Planning and Performance Based Budgeting .................. 9 5 FOURTH SECTION Accountability of Ministers and Top Managers Ministers ....................................................................................... 10 6 Top Managers .............................................................................. 11 7 SECOND PART Public Administration Budgets FIRST SECTION General Provisions Budget Types and Scope ............................................................... 12 7 Budgetary Principles ...................................................................... 13 8 Draft Laws to Influence Revenues and Expenditures .................... 14 9 Article Page SECOND SECTION Central Government Budget Law Scope and Order of the Central Government Budget Law ............. 15 9 Medium Term Program, Fiscal Plan and Budget Preparation Guide .............................................................. 16 10 Preparation of the Central Government Budget ............................. 17 11 Submission of the Central Government Budget Draft Law ............. 18 12 Negotiations on the Central Government Budget Draft Law .......... 19 13 THIRD SECTION General Principles for Implementation of Budgets Utilization of Appropriations ........................................................... 20 13 Carryover of Appropriations ........................................................... 21 15 Dispatch of Appropriations to the Decentralized Units ................... 22 15 Contingency Appropriation ............................................................. 23 15 Covert Appropriation ...................................................................... 24 16 Public Investment Projects ............................................................. 25 16 Making Commitments .................................................................... 26 17 Commitments Carried Over to Next Year ....................................... 27 17 Commitments Extending into Subsequent Years ........................... 28 18 Grants from Budgets ...................................................................... 29 19 Budget Policy, Monitoring Revenues and Expenditures................. 30 19 FOURTH SECTION Government Spending Spending Authority and Authorizing Officers ................................ 31 20 Spending Order and Responsibility .............................................. 32 21 Realization of Expenditure ............................................................ 33 21 Unpaid Amounts and Budgeted Debts ......................................... 34 22 Prepayment .................................................................................. 35 23 FIFTH SECTION Collection of Revenues Revenue Policy and Principles ...................................................... 36 24 Basis of Revenues ....................................................................... 37 25 Revenue Collection Responsibility ............................................... 38 25 Special Revenues ........................................................................ 39 25 Donations and Grants .................................................................. 40 26 Article Page SIXTH SECTION Accountability Reports and Final Account Accountability Reports ................................................................. 41 27 Final Account Law ......................................................................... 42 28 General Conformity Statement ..................................................... 43 29 THIRD PART Movables and Immovables Movables and Immovables Transactions ..................................... 44 29 Movables and Immovables Acquisition ........................................ 45 30 Sale of Movables and Immovables .............................................. 46 30 Allocation of Immovables .............................................................. 47 31 Effectiveness and Responsibility in Property Management ........... 48 31 FOURTH PART Public Accounts and Financial Statistics FIRST SECTION Public Accounts Accounting System ...................................................................... 49 32 Recording Time ............................................................................. 50 33 Year of Public Revenues and Expenditures and Offsetting Period ............................................................................................. 51 33 SECOND SECTION Financial Statistics Scope, Basic Principles and Institutional Environment ................. 52 33 Preparing and Publicizing Financial Statistics .............................. 53 34 Evaluation of Financial Statistics .................................................. 54 35 FIFTH PART Internal Control System Definition of Internal Control ......................................................... 55 35 Objectives of Internal Control ........................................................ 56 35 Structure and Functioning of Control ............................................ 57 36 Ex ante Financial Control ............................................................. 58 36 Qualifications and Appointment of Financial Control Officer ........ 59 36 Financial Services Unit ................................................................. 60 37 Accounting Services and the Authorities and Responsibilities of Accounting Officer ........................................................................ 61 39 Qualifications and Appointment of Accounting Officer .................. 62 40 Article Page Internal Audit ................................................................................ 63 41 Duties of Internal Auditor .............................................................. 64 42 Qualifications and Appointment of Internal Auditor ...................... 65 43 Internal Audit Coordination Board ................................................ 66 43 Duties of Internal Audit Coordination Board .................................. 67 44 SIXTH PART External Audit External Audit ............................................................................... 68 45 Audit on the Court of Accounts .................................................... 69 46 SEVENTH PART Sanctions and Authorized Bodies Overspending ............................................................................... 70 46 Public Loss ................................................................................... 71 46 Unauthorized Collection and Payment .......................................... 72 47 Fines and Authorized Bodies ....................................................... 73 47 Statute of Limitations .................................................................... 74 48 EIGHTH PART Other Provisions Services to be provided by the Ministry of Finance ....................... 75 48 Responsibility of Public Administrations ....................................... 76 48 Social Security Institutions and Local Administrations ................. 77 48 Shares to be collected from Proceeds of Institutions .................... 78 49 Cancellation of the Public Receivables ......................................... 79 50 Authority ....................................................................................... 80 50 NINTH PART Annulled Provisions, Provisional Articles and Enforcement Annulled Provisions ....................................................................... 81 50 Annexed Article 1 .......................................................................... 50 Annexed Article 2 .......................................................................... 51 Provisional Article 1 ....................................................................... 52 Provisional Article 2 ....................................................................... 52 Provisional Article 3