STATISTICAL SYSTEM in TURKEY AND İMPLEMENTATİON OF GFSM Bahtiyar YÜKSEL Finance Expert November

 İnternational Account Systems  Organization Structure  Coverage of the General Government Sector in Turkey  Criteria for the Determination of General Government Sector in Turkey  Data Sources, Compilation and Reporting  Accounting System in Turkey Content of Presentation 2

İNTERNATİONAL ACCOUNT SYSTEMS SNA 2008 (UNITED NATIONS) ESA 2010 (EUROSTAT) GFSM 2001 (IMF) 3

Ministry of Finance Generel Directorate of Public Accounts General Government and Financial Statistics Department Financial Statistics Reporting and Analyzing Division ( 6 Stuff) Organization Structure 4

Central Government General Budget Institutions Special Budget Institutions Regulatory and Supervisory Institutions Revolving Funds Extra Budgetary Funds Social Facilities Other Institutions of Central Government Coverage of the General Government Sector Local Government Provincial Special Administrations Municipalities Development Agencies Provincial directorates of youth and sports Local Government Unions Social Security Institutions Unemployment Insurance Fund Turkish Employment Agency 5

 In 2003 Public financial management and control law was enacted. Thanks to this Law  For public financial statistics, general government sector was determined mostly according to the international criteria (ESA 95-GFSM 2001) by a working group ( Ministry of Finance, Undersecretary of Treasury, Turkish Republic of Central Bank, Ministry of Development, Turkish Statistical Institute )  Common rules were introduced for the general government institutions, thus, uniformity of financial management for all the institutions was ensured.  Accrual-based accounting system was established by the Ministry of Finance for all general government sector.  In order to ensure compliance with international standarts, analitical budget classification was developed Determination of General Government 6

Data Sources, Compilation and Reporting Say 2000i System, at which is used developed computer and communication system, is the one of the top five largest projects between the web based e-goverment applications in the world. In the terms of magnitude and scope, this system is the largest public project in our country. Public Expense and Accounting Information System is an otomation system developed by Ministry of Finance Generel Directorate of Public Accounts. This system has been set up for integrating financial transaction between expence units and accounting units in one otomation system. With this system, data relating to the financial transactions is entered and sent by expense units to the accounting units. This data is recorded as a accounting information 7

 As a Ministry of Finance, we compile data; Central government budgetary data is compiled in real time from Say 2000i System Central government Extra budgetary institutions data is compiled quarterly from KBS System Local governments data is compiled monthly from KBS System Social security institutions data is compiled quarterly from KBS System Data Sources, Compilation and Reporting 8

 As a Ministry of Finance, we report and disseminate data; Monthly = Central government budgetary data is reported and disseminated t+15 Quarterly = General government sector data is reported and disseminated t+90 Yearly = General government sector data is reported and disseminated t+150 And, also according to the GFSM 2001 budgetary central government GFS tables monthly and general government GFS tables annually are sent to IMF Data Sources, Compilation and Reporting 9

 Bases of Recording  Data for all subsectors are reported on a noncash basis.  Through privazitation process all of the assets sold are showed into table 3 as transaction not revenue. And difference between face value and market value at which is sold is showed as holding gains in table 4.  In table 7, for budgetary, social security and local government subsectors total amount of expense plus net acquisition of nonfinancial assets are distributed to cofog codes according to the ratios produced from cash data.  Liquidation or complementary period  Not reported  Valuation of assets and liabilities  Domestic and external government securities other than shares are recorded at market value. The others are recorded as face value Accounting Practices According to GFSM 10

1 CURRENT ASSETS 2 FIXED ASSETS 3 SHORT TERM LIABILITIES 4 LONG TERM LIABILITIES 5 EQUITY / NET WORTH 6 OPERATİNG ACCOUNTS (İNCOME AND EXPENCE ACCOUNTS) 7 COST ACCOUNTS 8 BUDGET ACCOUNTS ( BUDGET EXPENDITURES AND BUDGET REVENUES) 9 MEMORANDUM ACCOUNTS The framework of Turkey's accounting system BALANCE SHEET ACCOUNTS 11

 Budget Execution Results Table  Balance Sheet  Operating Results Table  Cash Flows Statement  Domestic and Foreign Debt Table  E conomic Classification of İncome Table  E conomic Classification of Expense Table  Financial Assets And Liabilities Table Financial Reporting 12

Ex 1: 1000 tl income tax is accrued. 120 Receıvables From Operatıng Actıvıtıes 1000 tl (+) 600 İncome Account 1000 tl (+) According to GFSM 2001: Table 3 (Transaction) Financial Assets 1000 tl (+) Table 1 (Revenue) 1000 tl (+) Accounting Examples 13

Ex 2: 1000 tl accrued income tax has been collected. 100 Cash Account 1000 tl (+) 120 Receıvables From Operatıng Actıvıtıes 1000 tl (-) According to GFSM 2001: Table 3 (Transaction) Financial Assets 1000 tl (+) Table 3 (Transaction) Financial Assets 1000 tl (-) Accounting Examples 14

Ex 3: Currency account has been valued 2000 tl 105 Currency account 2000 tl (+) Value and the amount of revenue changes 2000 tl (+) According to GFSM 2001: Table 4 (Holding gain and losses) Financial assets 2000 tl (+) Ex 4: 5000 tl vehicle has been taken inventory. 254 Vehicle account 5000 (+) 500 Net worth account (+) According to GFSM 2001: Table 5 (other changes) Nonfinancial assets 5000 tl (+) Accounting Examples 15

THANK YOU FOR YOUR ATTENTION