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Ministry-Of-Finance-2009-Year-Accountability-Report-English.Pdf Message from the Minister .................................................................................. 2 Foreword by the Undersecretary .......................................................................... 3 I – GENERAL OVERVIEW .................................................................................... 4 A. Mission and Vision ...................................................................................... 4 B. Authorities and Responsibilities ................................................................... 4 C. Information on the Ministry of Finance ........................................................ 5 1. Organizational Structure .......................................................................... 5 2. Information and Technology Resources ..................................................... 9 2.1. IT Systems .......................................................................................... 9 2.2. Library System ................................................................................. 10 3. Human Resources .................................................................................. 11 4. Services .................................................................................................. 16 4.1. Services Delivered by Main Service Units .......................................... 16 4.2. Services Delivered by Advisory and Supervisory Units ....................... 20 4.3. Services Delivered by Supporting Units ............................................. 22 5. Management and Internal Control System .............................................. 23 II – GOALS AND OBJECTIVES .......................................................................... 26 A. Goals and Objectives of the Ministry of Finance ......................................... 26 B. Main Policies and Priorities ........................................................................ 27 III-INFORMATION AND EVALUATION ON ACTIVITIES ....................................... 36 A. Financial Information ................................................................................ 36 1. Budget Execution Results ....................................................................... 36 2. Explanations on Fundamental Financial Statements ............................... 36 B. Performance Information ........................................................................... 38 1. Activity Information ................................................................................ 38 1.1. 2009 Central Government Budget Execution .................................... 38 1.2. Reform in Public Financial Management ........................................... 46 1.3. Audit Services ................................................................................... 48 1.4. Fight against Financial Crimes ......................................................... 51 1.5. Legal Advisory and Legal Proceeding Services for the State ................ 53 1.6. National Property Transactions ......................................................... 54 1.7. Studies on Revenue Policies .............................................................. 57 1.8. Trainings .......................................................................................... 65 1.9. Studies on the European Union ........................................................ 67 2. Project Information ................................................................................. 68 3. Evaluation of the Performance Results .................................................... 81 4. Performance Results Table ...................................................................... 84 5. Evaluation of the Performance Information System ............................... 107 IV – EVALUATION OF THE INSTITUTIONAL CAPABILITY AND CAPACITY ........ 108 V – INTERNAL AUDIT ACTIVITIES IN 2009 ...................................................... 108 ANNEXES ....................................................................................................... 111 1 Message from the Minister In the aftermath of the global crisis, the role of the government in the economy has increased significantly compared to the previous years. During this period, unemployment rates, budget deficits and roll-over rates have put a strain on the world economies. At this conjunction, it became more important to ensure fiscal discipline, increase global competitiveness, reduce unemployment, and ensure and maintain financial stability. On the other hand, the crisis has brought along some opportunities that are important to our country. As an important economic and political actor in its region, Turkey attracts attention with its growth potential and dynamism. We continue to make dedicated efforts for a Turkey that can compete with the world in all fields, has transformed into an information society, has taken the necessary steps in the EU accession process, and has become one of the most powerful countries in the world. In this process, it is of great importance to use public resources in an efficient way and to channel them into productive areas. The most important ground to this end is the Public Financial Management and Control Law No. 5018. With this Law which was enacted during the rule of our government, our public financial management system was strengthened through the principles and values of efficiency, economy and accountability in the use of public resources. In this regard, public administrations should prioritize the use of public resources in accordance with their organizational goals and objectives by preparing strategic plans and performance programmes, and announce the results of the activities and projects that they carry out to this end to the public through accountability reports. The Ministry of Finance Accountability Report 2009 includes performance results of the activities set out in the performance programme. Thus, an important step has been taken towards adoption of the accountability mechanism envisaged by the Law No. 5018 by public administrations. I would like to extend my thanks all of those who have contributed to the preparation of such a qualified document and I wish that the Accountability Report serves its purposes in the best way. Mehmet ŞİMŞEK Minister of Finance 2 Foreword by the Undersecretary The reforms within the framework of the Public Financial Management and Control Law No. 5018 have been sustained by introducing new elements each year since 2003. In this regard, the Ministry of Finance carries out its activities being aware of its pioneering and exemplifying role in full adoption and implementation of the new approach and practices introduced by the Law No. 5018 in public administrations. As the basic elements of the new system, the Ministry of Finance enforced the Strategic Plan in 2007 and the Performance Programme and the Accountability Report which includes performance implementation results in 2008 in line with the Strategic Plan. In 2009, studies were launched to establish an internal control system within the Ministry on the basis of accountability and transparency principles. Within this scope, the Ministry prepared the Action Plan for Compliance with Internal Control Standards with active participation of all of the Ministry units. Besides, the Ministry continues to make efforts to develop the existing electronic infrastructure in order to ensure that the new public financial management processes and practices are faster and of better quality based on management information systems. In accordance with the principle of fiscal transparency, we publicize the Ministry of Finance Accountability Report 2009 which includes the activities carried out diligently by the Ministry and performance assessments about the results of these activities. I would like to take this opportunity to thank the Ministry staff that contributed to realization of the Ministry activities and I wish that the Accountability Report yields fruitful results for both the public and all of the concerned parties. Naci AĞBAL Undersecretary 3 I – GENERAL OVERVIEW A. Mission and Vision Mission of the Ministry of Finance To contribute to the fiscal policy-making and to carry out implementation, monitoring and audit of the fiscal policy in order to achieve economic and social objectives taking into account good governance principles. Vision of the Ministry of Finance To be a transparent, accountable and pioneering Ministry of Finance that provides fast and high-quality services. B. Authorities and Responsibilities Under the Decree No. 178 on the Organization and Duties of the Ministry of Finance, the duties of the Ministry of Finance are as follows: Assisting in fiscal policy-making, and implementing the fiscal policy Providing the services of legal advisory and legal proceedings for the state Developing and implementing expenditure policies, preparing and executing the state budget, and following and steering the execution of the budget Keeping the state’s accounts, and rendering accounting services Developing the revenue policy Managing government property, determining the managerial principles regarding government property and immovables of the public institutions, and carrying out other relevant transactions Preparing draft laws and other legislation regarding all kinds of revenue and expenditure transactions or taking part in the preparation of them Following studies of international institutions regarding the Ministry services, drafting the Ministry’s opinion
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