Slayt Basligi Yok

1
MINISTRY OF FINANCE General Directorate of Public
Accounts

GOVERMENT ACCOUNTING March 2003, Ankara
2

• AGENDA
• Clarification of General government sector(GG)
• The Current Government Accounting System (GAS)
• say2000i Project for consolidated budget
• Our Studies and Targets on Government Accounting

3
Clarification of GG sector
4

• THE GENERAL GOVERNMENT UNITS
• A-Central Government
• 1-Consolidated budget (CB)
• a) General budget
• b) Annexed budgets
• 2- Revolving Funds, EBFs, BFs, Autonomous
  Agencies
• B-Local Government
• 1-Municipalities
• 2-Provincial Administrations
• C-Social Security Institutions
• 1-The Social Insurance Institution(SSK)
• 2-The Government Employees Retirement Fund
• 3-Insurance Scheme for The Self Employed(Bag-Kur)
• Financial and non-financial public corporations
  are excluded.

5
The Characteristics of Current Accounting System
6

• The public sector does not have a unified
  accounting system,
• Central and local government accounting systems
  are modified cash based SSIs and revolving funds
  use accrual accounting,
• There are no government-wide accounting and
  reporting standards,
• Government accounting systems in consolidated
  budget and local administrations are modified
  cash based, but tax revenues are recorded on
  accrual basis in budget accounts,
• Fixed assets and inventories are not recorded and
  reported,
• The government accounting system does not
  classify accounts in international standards,

7
Continue

• Accounting system does not produce financial
  statements,
• Ministry of Finance produces and reports detailed
  information on budgetary transactions from out of
  accounting records, but there is a classification
  problem.
• Commitments are not recorded and reported.
• Transfers to the local administrations are
  deducted from budget revenues.
• Accrued budget expenses are not recorded and
  reported,
• The existing accounting system is mostly focused
  on the cash budget. Therefore, it only permits to
  trace budget implementation results, but does not
  generate information on actual outcome of the
  governments actions.

8

• Treasury guaranties are recorded and reported as
  contingent liability. When a guaranty given unit
  does not pay its liability, Treasury pays on the
  behalf of that unit, but the paid amount is
  recorded as receivable by Treasury, and also the
  same amount is recorded as payable by that unit.
• Complementary period method is used to complete
  the accounting period transactions. This method
  differs from the cash-based system in that
  accounts are held open for nearly one month after
  the fiscal year (set-off period). During this
  period expenditures incurred and invoices
  pertaining to transactions which occurred the
  preceding period are received provided that their
  allocations have been transferred to the set-off
  period. Receipts arising from the preceding
  period are also accepted. Receipts and payments,
  which occurred during the set-off period, but
  have resulted from the preceding period, are
  entered as receipts and payments of the preceding
  reporting period

9
Management of Accounting SystemIn total, There
are 1636 Accounting Offices in CB. All accounting
offices are depended on MoF, except 3 Treasury
AOs.

• 1061 are managed by GDPA,
• 443(tax offices) are managed by GDR,
• 130 are managed by GDBFC,
• 3 are managed by Treasury,
• NoteThese figures do not include 3250 local
  government accounting offices, 1463 Revolving
  Funds and 6 budgetary and extra-budgetary funds.

10
The Future Direction of Government Accounting
System in Turkey
11
1-say2000i Projectfor central government2-Accrua
l Based Accounting Project for general government
12
say2000i Modules

• Accounting Module(completed)
• Personnel and Payroll Module
• Health Expenditures(completed)
• Regulations(completed)
• On-Line Support(completed)

13
Accounting module -Has capability to perform
all daily accounting operations, -Creates all
daily and monthly accounting reports, and -Keeps
all important records related with accounting
practices on a central database
14
Moving to Accrual Based Government Accounting
15
I-General Accounting RegulationAccounting and
reporting standards and framework chart of
accounts are determined.

• II- Sub-Accounting Regulations for sub-sectors
• Central government,
• Local government,
• Social security institutions

16
General Classification of Accounts

• Balance sheet accounts
• -Assets
• -Liabilities
• -Equity
• Operation Accounts
• -Revenues
• -Budget Revenues
• -Expenditures
• -Budget Expenditures
• Memorandum Items

17
Balance Sheet Accounts

• ASSETS
• I-Current Assets
• A-Liquid Assets
• B-Securities
• C-Receivables from Revenues
• D-Treasury Receivables
• E-Other Receivables and Current Assets
• F-Stocks
• G-Debits Current Accounts
• H-Other Current Assets

18
II-Long Term Assets

• A-Receivables from Revenues
• B-Treasury Receivables
• C-Financial Long Term Assets
• D-Intangible Fixed Assets

19
LIABILITIES

• III-Short Term Liabilities
• A-Domestic Debts
• B-Foreign Debts
• C-Budget Debts
• D-Depository Accounts
• E-Credits Current Accounts
• F-Taxes and Other Liabilities Payable

20
IV-LONG TERM LIABILITIES

• A-Domestic Debts
• B-Foreign Debts

21
V-EQUITY

• Net Worth
• -Public Capital
• -Fixed Assets Inventory
• -Beginning Balance
• -Operation Results

22
OPERATION ACCOUNTS

• VI-REVENUES
• -Revenues Account
• -Budget Revenues Account
• VII-EXPENDITURES
• -Expenditures Account
• -Budget Expenditures Account

23
OFF BALANCE SHEET ACCOUNTS

• A-Appropriation Accounts
• B-Stamps and Valuable Papers Account.
• C-Non Cash Guarantees and Securities Owned by
  Persons
• D-Commitment Accounts
• E-Treasury Guarantees
• F-Other Off Balance Sheet Accounts.

24

• Our Targets are
• To prepare a framework chart of accounts and to
  adapt the internationally accepted accounting and
  reporting standards,
• Accrual basis,classified accounts, detailed
  data, reliable and comparable financial tables
• Covers all general governmental units defined in
  the GFS and ESA95
• To record and report fixed assets in the
  accounting system,
• To use time separated accounts to show
  short-term long-term assets and liabilities
• To use computer technology(say2000i) effectively
• To provide correct and quick information to
  related parties in predetermined periods

25

• FINANCIAL STATEMENTS
• Balance Sheet
• Statement of Operating Results
• Statement of Budget Implementation Results
• The Economic Classification of (Budget) Revenues
• The Economic Classification of (Budget)
  Expenditures
• The Functional Classification of (Budget)
  Expenditures
• Statement of Cash Flows
• Statement of Debts
• Statement of Fixed Assets
• Statement guarantees and commitments

26
Time Schedule

• December 31, 2002, accounting and reporting
  standards and frame chart of accounts were
  completed,
• Pilot Implementations in 6 government units
  covering 49 accounting offices were completed,
• Centralized accounting and reporting software for
  consolidated budget was completed last year,
• In 2004, the new accounting system will be used
  in general and annexed budgets,
• In 2005, the coverage of the new accounting
  system will be extended to all other general
  government units.

27
Transforming accounting data to statistical data

• First, produce consolidated accounting reports in
  the software for GG sector.
• Then, transform the data to GFS and ESA95 The
  aim is to produce related tables directly from
  the accounting system.
• We are producing GFS tables from the accounting
  system in pilot accounting offices.

28
Baki KERIMOGLU Head of Department E-Mail
bkerimoglu_at_muhasebat.gov.tr Phone [phone]
16 18 Fax [phone]