INTERNAL CONTROL SYSTEM
The objective of the Public Financial Management and Control Law No. 5018 is to ensure that the structure and functioning of the public financial management in order to obtain and use public resources effectively, economically and efficiently in line with the policies and targets contained in the development plans and programs and to ensure accountability and financial transparency, budgeting, implementation, accounting, reporting and financial control of all financial transactions.
As it is known, the legal arrangements made under the Public Financial Management and Control Law No. 5018 dated 10/12/2003, which are reformed in the public financial management system, have obliged public administrations. One of these legal arrangements, which adds governance power in the context of effective, economical and efficient use of resources, is the establishment of an internal control system.
A-Definition of Internal Control: Internal control is a process carried out by managers and all personnel to provide reasonable assurance to achieve the objectives of the institution. In Article 55 of Law No. 5018; “Internal Control;
To ensure that the activities are carried out in accordance with the determined policies and regulations for the purposes of the administration,
To ensure that the activities are carried out effectively, economically and efficiently,
Accurate and accurate keeping of accounting records,
It is defined as a collection of financial and other controls covering internal audit by organization, method and process established by the administration to ensure that financial information and management information is produced in a timely and reliable manner.
B-Internal Control Objective: For internal control purposes in Article 56 NCI of the Law;
To ensure that public revenues, expenses, assets and liabilities are managed effectively, economically and efficiently,
To ensure that public administrations operate in accordance with the law and other regulations,
To ensure the prevention of irregularities and corruption in all kinds of financial decisions and transactions,
To provide regular, timely and reliable reports and information for making and monitoring decisions To prevent abuse and waste of assets and to protect against loss.
Internal control does not consist solely of legal arrangements and methods, but is created interacting with personnel at all levels of the institution.
Internal control is a means of achieving the specified objectives and provides reasonable assurance, not absolute assurance.
Internal control is the chain of movements that have penetrated into corporate activities, not just one event or situation.
The internal control system is intertwined with management function as an integral part of the management process.
It is most effective when the internal control is placed in the infrastructure of the institution and is part of the institution.
If internal control should be classified according to the functions of the institution;
Administrative controls; it will cover all the controls. All plans, policies, procedures and practices utilized to achieve the objectives of the institution are included in this scope.
Administrative controls; and procedures and records related to the execution of processes and decision-making processes of authorized personnel.
Accounting controls; procedures and documents relating to financial records for the protection of assets.
These controls are complementary, not an alternative to each other. Because an effective internal control structure requires all forms of control and is hired from a mixture of controls.
According to C-5018, what is the responsibility of internal control in general and to whom does it belong?
Responsibilities and responsibilities related to internal control are contained in different articles of the Code. It is primarily responsible for internal control, in other words for those in the administration. As mentioned above, the definition and objectives of internal control are included in the 55th and 56th articles of the Public Financial Management and Control Law No. 5018. Everyone involved in an administration, within the scope of these identified definitions and objectives, will be responsible for internal control within their duties. In accordance with Article 57 of the same law, it is necessary to take the necessary precautions within the framework of the duties, powers and responsibilities of the top administrators and other managers of the administrations in order to establish a sufficient and effective control system.
In this framework, managers are responsible for establishing, monitoring and developing an adequate and effective internal control system, while others are responsible for operating and implementing the established internal control system.
D- What are the duties and responsibilities of the expenditure authorities for internal control?
In Article 31 of the Law No. 5018; the unit of expenditure for each unit to which the budget is allocated is defined as the authority to spend the top manager of this unit. Accordingly, the responsibility for the creation, implementation and development of internal control in their units belongs to the expenditure authorities under the supervision of the senior manager (University Rector). Article 32 of the Law sets out the responsibilities of expenditure authorities. The authorizing officers shall be responsible for the effective and economical and efficient use of the appropriations and other procedures required by law within the budget principles and principles of the expenditure directives, in accordance with laws, regulations and regulations and other legislation. These responsibilities are highly compatible with the definition and objectives of internal control.
What are the duties and responsibilities of the e-fulfillment staff for internal control?
Law No. 5018 stipulates that the receipt or fulfillment of the business, goods or service in accordance with the prescribed procedures and principles must be approved by the persons or commissions to be commissioned and that the realization documents must be arranged so that a budget can be made.
In Article 33 of the Law, it is determined who will be responsible for fulfillment. In order to be able to make an expense from the budget, it must be approved by the persons or commissions to be commissioned and the documents of realization whether the work, goods or service is received or carried out in accordance with the prescribed procedures and principles. The realization of the expenses is completed by signing the payment order document of the authorizing officer and by paying the right to the amount.