Embed Size (px)
Citation preview
Twinning Number: TR 08 IB FI 02
Improving data quality in public accounts
Note for the information of future Twinning partners:
The indicative budget for the Twinning is € 1,575,000 (see paragraph 4)
The indicative duration of the Twinning project is 21 months (see paragraph 5)
Standard Summary Project Fiche – IPA decentralised National programmes(maximum 12/15 pages without the annexes)
1. Basic information
1.1 CRIS Number: TR080219
1.2 Title: Improving data quality in public accounts.
1.3 Statistical Codes: 18 (Statistics) and 32 (Financial Control)
1.4 Location: Ankara, Turkey
Implementing arrangements:
1.5 Implementing Agency:Mr. Muhsin ALTUN (PAO-CFCU Director) Central Finance and Contracting UnitTel: +90 312 295 49 00Fax: +90 312 286 70 72E-mail: [email protected]: Eskişehir Yolu 4.Km. 2.Cadde (Halkbank Kampüsü) No:63 C-Blok 06580 Söğütözü/Ankara Türkiye
1.6. Beneficiary (including details of SPO): General Directorate of Public Accounts (GDPA), Ministry of FinanceAdress: Maliye Bakanligi, Dikmen Caddesi 06100 Ankara-TURKEY
Pilot Institutions: Ministry of Culture, Social Security Institution, The Scientific and Technological Research Council of Turkey, Ankara University, Metropolitan Municipality of Ankara
SPO: Ömer DUMAN, General Director of GDPATel: + 90 312 415 15 84 Fax: + 90 312 417 05 10E-mail:[email protected]
1
Contact Person: Haydar KULAKSIZ, Head of DepartmentTel: +90 312 415 17 69 Fax: +90 312 417 05 15E-mail: [email protected]
1.7 Overall cost: 1.875.000 €
1.8 EU contribution: 1.721.250 €
1.9 Final date for contracting: 2 years after the signature of the Financing Agreement
1.10 Final date for execution of contracts: 2 years following the end date for contracting 1.11 Final date for disbursements: 3 years following the end date for contracting
2. Overall Objective and Project Purpose
2.1 Overall Objective: To enhance transparency and accountability of government financial management by means of improving data quality in public accounts.
2.2 Project Purpose: To develop public accounting system and to improve the quality of the government financial statistics by means of organizing seminars, conferences and training activities on international standards and EU best practices related to data quality; piloting the new system in 5 public intuitions; purchasing and using a data analysis and management software.
2.3 Link with AP/NPAA / EP/ SAA
Within the scope of accession negotiations with EU, with respect to financial control and statistics chapters, Turkey has committed to produce financial accounts and statistics for general government sector in line with the EU acquis and to ensure full harmonization in this area by 2009. In preparation and dissemination of public accounts and GFS, a systematic control regarding the degree of consistency with EU acquis (ESA95, GFS norms and EDP Notification Guideline), and an assurance for the quality of public accounts are required and these needs can only be achieved by enhancing the administrative capacity to perform these functions.
In the national program of 2003, the requirement of producing and reporting public accounts in accordance with the EU acquis within the framework of accrual based accounting and reporting has been emphasized. In addition to the public accounts and reporting, that all government financial statistics in the scope of general government (GG) shall be compiled by the Ministry of Finance in accordance with the international standards, was also underlined.
On the other hand, in the Council Decision of 18 February 2008 on the principles, priorities and conditions contained in the Accession Partnership with the Republic of Turkey and repealing Decision 2006/35/EC(2008/157/EC) the timely production of
2
key national account indicators in accordance with ESA 95, is also emphasized under chapter “3.1. SHORT-TERM PRIORITIES, 18-Statistics”.
2.4 Link with MIPD
In “Multi-annual indicative planning document (2007-2009), Component I – Transition Assistance and Institution Building, 1. Main priorities and objectives,” , it is stated “Since interventions in the area of Institution Building often require mainly technical assistance (that is less costly investments and for which there is limited absorption capacity within a given recipient institution) the number of intervention areas identified in this section is commensurate with the indicative budget, and it is comparable with the scope of interventions programmed in the 2002-2006 period. Considering the current situation described in the Progress Report, and depending on project maturity and on the outcome of projects under on-going programmes, the priorities for assistance under the Institution Building component will be:…public administration:..; Implementation of the Regulation on Principles of Ethical Behaviour for Civil Servants;……Development of IT systems for the exchange of data with the EU and its Member States,”
In addition to the above priorities, Institution Building support may also be provided in the following areas of the acquis, with more modest budgetary allocations; Statistics (national accounts, macro-economic, demographic, labour market, regional, agricultural and business statistics);…”
2.4 Link with National Development Plan (where applicable)
In the 9.th National Development Plan, it is emphasized that in order to ensure accountability, transparency and the effective, economic and efficient collection and utilization of public resources, the structure and functioning of the public financial management, the preparation and implementation of the public budgets, the accounting and reporting of all financial transactions, and financial control were re-regulated.
2.5 Link with national/ sectoral investment plans(where applicable)
Not Applicable
3. Description of project
3.1 Background and justification:
The Official Statistics Programme (2007-2011), based on the Statistics Law of Turkey No 5429, has been prepared for a 5-year-period by TURKSTAT in order to determine the basic principles and standards dealing with the production and dissemination of official statistics and to produce reliable, timely, transparent and impartial data required at national and international level. In relation to the implementation of the Programme, data identified to be produced by institutions and organizations other than
3
The Statistical Institute in the Official Statistics Programme shall be considered as official statistics.
According to this official programme, the national accounts, money, banking and finance statistics are produced by TURKSTAT, Ministry of Finance, Undersecretariat of Turkish Treasury, The Central Bank of Republic of Turkey (CBRT), Banking Regulation and Supervision Agency, Savings Deposit Insurance Fund (SDIF), Capital Markets Board of Turkey and T.R. Prime Ministry State Planning Organization (SPO).
In this context, Ministry of Finance is responsible for forming the table of central and general government balance and budget implementation results, the revenues and expenditures (activity) table, the cash flow table, the annual financialstatement, functional expenditure, the detailed statistics on tax and social contribution revenues depending on tax or social contribution type, the government finance statistics (GFS) and also the statistics on tax identity numbers and the number of tax payers.
According to the National Statistic Programme, the financial tables produced by Ministry of Finance will have to be formed in the standards of ESA 95 and GFSM 2001.
On the other hand, in the public financial management system, with the Public Financial Management and Control law no. 5018, the scope of general government has been redefined in line with the international classifications so as to cover all public administrations. And according to the PFMC, the Ministry of Finance is the only unit responsible for compiling and disseminating GFS and, the GDPA should compile accounting data received from all government institutions and agencies in the scope of general government definition. GDPA also performs the secretariat function of the State Accounting Standards Board.
General government sector (GG) covers the following agencies:
A- Central Government1- Consolidated Budget (CB)
a) General Budgetb) Special Budgetc) Autonomous Agencies
2- Revolving Funds 3- Extra Budgetary Funds
B- Local Government1- Municipalities (3225 units)2- Provincial Administrations (81 units)3- Local Government Unions (1610 units)
C- Social Security Institution
In order to compile accounting transactions all of these agencies on a centralised database and share compiled data with other public institutions and agencies over say2000i system (web-based automation system) in accordance with 5018 PFMC law, and the Statistics Law of Turkey No: 5429 the Ministry of Finance signed a twinning contract with Ministry of the Economy and Finance of Italy. (TR/2005/IB/ST/01
4
“Capacity building for the compilation of accounting data in all institutions and agencies within general government sector in the context of e-governments.”)
The ongoing project aims at producing statistical tables from accounting data of public institutions defined in the concept of general government and sharing compiled data with relevant public institutions in parallel with the principles of transparency and accountability.
Within the context of transforming accounting data to statistical data, the GDPA shall: First, produce consolidated detailed accounting reports through a software for general government sector. Then, transform accounting data to Government Finance Statistics (GFS) and ESA95; the aim is to produce related tables directly from the accounting system.
In this context, Government Accounting General Regulation have been prepared and adopted for the whole of the general government sector. In addition, detailed chart of accounts has been put into practice.
In the preparation of these initiatives, Council Regulation No: 2223/96 on the European system of national and regional accounts and other related EC Legislation have been considered.
Despite some important progress made in the fields of public accounts and government financial statistics in accordance with the former progress reports, several weaknesses can still be identified in the procedures followed in the compilation and reporting of government accounts. Furthermore, the government financial statistics which are generated from public accounts are not yet as reliable and transparent as they need to be, and lack of a quality assessment.
In “Satatistics” chapter of Progress Report 2007 it is stated, “Turkey has made further progress in statistical infrastructure. However, regular data delivery to Eurostat in more areas, as well as the establishment of a full system of national accounts in accordance with EU standards require further attention. The overall alignment with the acquis remains well advanced, albeit incomplete as regards in particular registers, agricultural statistics and economic and monetary statistics”.
The report also states in the “Financial Control” chapter that “The state accounting standards board continued to determine and publish accounting and reporting standards applicable to public bodies falling within the category of general government”.
Despite this positive statements, under the "Financial and Budgetary Provisions" chapter of the report, it is stated “Turkey needs to continue its efforts to align with the relevant acquis chapters, in particular customs, taxation, statistics and financial control”.
Indeed, the 2007 fiscal notifications presented by the candidate countries to Directorate-General for Economic and Financial Affair (Number 33 - June 2007) is a good example of how sufficient are Turkish government financial statistics and government accounts to meet EU acquis. In “conculusion” chapter of main results of the notification, it is expressed that, “There have been some revisions of figures since
5
the previous notification, mainly due to the availability of more definitive data and to changes in some adjustment items. There are still methodological issues that should be clarified with Eurostat, especially regarding the delimitation of general government, the accruals recording notably for taxes and other revenue items, the recording of guarantees and military expenditure. The statistical discrepancies have been reduced, however further improvement is expected....A full assessment of the data remains difficult. Therefore, it is recommended that the authorities give high priority to further improving the quality of the deficit and debt figures. One of the means to achieve this is that the statistical authorities compile of a full set of ESA 95 accounts (non-financial and financial) for the general government sector and its sub-sectors. The lack of ESA Table 2 (government revenue and expenditure) and ESA Table 6 (annual financial accounts) or alternatively of ESA Table 27 (quarterly financial accounts for general government) prevents applying consistency tests that are essential for the assessment of the quality of the fiscal data”.
At the end of the ongoing project, GDPA, as a direct beneficiary, will be generating statistical tables of general government in conformity with ESA 95 and International Accounting Standards and will be sharing them with other institutions like the TURKSTAT. However, it is important to disseminate high quality data with assurance but the culture of data quality is not well established within the institutional structure. Besides, some common terms like ESA95 and GFS in the international system have not been assimilated by the data producers. It is essential that financial statistics be understandable and easily accessible by the users; however, government financial statistics are still in need of some improvement in terms of reliability, completeness and transparency. For the accounting standards, just one government accounting standards has been published so far, and no further efforts have been made to raise the awareness of the institutions in this direction. Considering the importance of controlling accounting transactions and financial reports of institutions within general government, an audit methodology and guidelines for accounting system in parallel with the international standards still need to be developed. Say2000i system provides IT support for the general government institutions but the system is not equipped with professional software. The required professional software is crucial to support accounting control and audits, thus ensure sufficient data quality.
Consequently, in order to produce data in accordance with the EU classification and qualification standards in the government accounting system and to set up a quality control system including a whole process starting from data collection to publication and to provide assurance of accurate and reliable information there is a strong need for building a capacity that widely employs the EU best practices related to data collection, compilation, and dissemination processes in the public accounting system.
3.2 Assessment of project impact, catalytic effect, sustainability and cross border impact (where applicable)
Project Impact:
The project is expected to produce following outcomes:
6
1. Increasing the quality of GFS through developing awareness of the quality term and accelerating the EU accession negotiations through providing reliable statistical indicators.
2. Enhancing awareness about international public accounting standards and enhancement of their implementation capacity.
3. Building capacity of accounting control system for the quality assurance of government financial statistics.
4. Providing serviceability and accessibility of government accounts and financial statistics.
Catalytic Effect:
Awareness of the quality concept and international public accounting standards will increase in local governments, special budget agencies and social security institutions by the main beneficiary institution (GDPA) trough training activities, conferences and various seminars so that, not only central government agencies but also the other general government agencies and institutions will be able to produce their financial reports in accordance with international quality and accounting standards. In this way, they will be able to establish the requirements for users about their financial statistics, assess the gap between existing standards of delivery and user requirements, design and implement the required changes in the collection, compilation, and dissemination processes, and operate the new system. Consequently, the long term catalytic effect of this Project will increase in public and international trust towards the public accounts and government financial statistics of Turkey.
Sustainability:
The quality culture developed by this project will have a long term increasing effect on data providers and users in Turkey. Institutions will continue to develop new standards and approaches to satisfy public expectations and Ministry of Finance will follow the new concepts and international quality standards developed by international community even after the termination of the twinning contract.
Cross Border Impact:
Not Applicable.
3.3 Results and measurable indicators:
Result 1: The quality of GFS increased.
Objectively verifiable indicators are:1.1. A kick-off meeting to introduce the project organised by the end of first month.
1.2. Legal and institutional environment related to data quality prerequisites completed and a comprehensive report of its findings and recommendations prepared. Gap analysis report completed by the end of third month.
7
1.3. Five one-day conferences organised for the introduction of data quality concepts in the field of public accounting and financial statistics for 125 participants from main beneficiary institution(GDPA) pilot institutions and various local governments, autonomous agencies, special budget institution, revolving funds and extra budgetary funds by the end of fourth month.
1.4. Training on the issue of data quality for at least 100 participants from pilot institutions and GDPA organised by the end of sixth month.
1.5. Five one day seminar organised in order to introduce prepared ethical standards for data providers for 125 participants from main beneficiary institution (GDPA), pilot institutions and various local governments, autonomous agencies, special budget institutions, revolving funds and extra budgetary funds by the end of seventh month.1.6. A three day study visits to one member state related to ethical standards for data providers organised for five participants by the end of seventh month.
1.7. Tertiary regulations prepared to enhance the processes of data access and to improve capacity of printing house by the end of eighth month
1.8. On-the-job training programs of three weeks on international quality standards and best practices organised in the field of government financial statistics and government accounts for two separate groups of staff each composed of 50 persons in related member countries by the end of ninth month.
Result 2: Data analysis system purchased.
Objectively verifiable indicators are:
2.1. One week study visits to two different member states related to data analysis software practices in the field of government accounting system organised for five participants by the end of tenth month.
2.2. Data analysis system purchased by the end of eleventh month.
2.3. Required assistance to identify the requirements and to implement new software in the existing IT structure provided by short term experts by the end of eleventh month.
2.4 Training on the data analysis software for at least 100 personnel organised by the end of twelfth month.
Result 3: Implementation capacity of the international public accounting standards in all institutions in the scope of the general government enhanced.
Objectively verifiable indicators are:
3.1. Training on public accounting system and standards for at least 50 participants from pilot institutions and GDPA organised by the end of thirteenth month.
8
3.2. A three day study visit to one member state to observe and evaluate member states practices related to public accounting system and standards organised for five participants by the end of fourteenth month.
3.3. Published government accounting standards reviewed and instruments and other elements necessary to improve the quality of public accounts determined and developed by the end of fifteenth month.
Result 4: Capacity of accounting control system and assurance of government accounts developed.
Objectively verifiable indicators are:
4.1. To develop capacity of accounting control system and capacity of giving assurance government accounts one month internships in the field of accounting control and accounting audit for 20 GDPA accounting controllers in two different member states organised by the end of sixteenth month.
4.2. Manuals related to the accounting control and accounting audit prepared by the end of seventeenth month.
Result 5: Pilot studies related to data quality and accounting standards in each pilot institution conducted.
Objectively verifiable indicators are:
5.1 Quality control applications software and quality assessment reports including implementation of accounting standards and accounting control applications developed for all pilot institutions by the end of eighteenth month.
3.4 Activities:
All activities will be conducted under a twinning and one supply contracts. National Public Contributions which are % 5 per cent for the twinning contract and % 25 per cent for the supply contract will be provided by Central Budget allocations in 2009.
Component 1. Improving the quality of GFS prepared by MoF
1.1. Organizing a kick-off meeting to introduce the project: In order to introduce the project to the pilot institutions and other public agencies that will benefit from the project impacts in a longer term a kick-off meeting will be organised with the participation of relevant stake holders.
1.2. Revising legal and institutional environment for prerequisites of data quality; In order to enhance the quality of government accounts and financial tables, legal and institutional environment will be revised, gap analysis will be completed, primary and secondary legislation will be reviewed, amendments required for legislation will be identified and proposals for new administrative arrangements will be set.
1.3. Organizing conferences to increase the awareness of data quality; ensure that the quality term be comprehended broadly in the government accounting system
9
extensively and to create a quality culture, five conferences about data quality will be organised for 125 participants from various local governments, autonomous agencies, revolving funds and extra budgetary funds, pilot institutions and GDPA under TC with assistance of short term experts of EU. As a result of these conferences, all institutions within the context of GG, will also be aware of the quality dimensions and concepts of GFS, as well
1.4. Providing training on the issue of data quality; Besides these important studies related to quality, training on the issue of data quality for at least 100 participant from pilot institutions and GDPA will be organised under TC.
1.5. Introducing prepared ethical standards for data providers for assurances of integrity; Ethical standards for data providers to provide assurance of integrity will be introduced to 125 participants from pilot institutions and GDPA, various local governments, autonomous agencies, revolving funds and extra budgetary funds by means of five one day seminar under TC with assistance of short term experts of EU.
1.6. Organizing a three day study visit to one member state: In order to observe and evaluate member states practices related to ethical standards for data providers a three day study visit to one member state for 5 participants from main beneficiary institution will be organised under TC.
1.7. Enhancing the processes of data access and improve the capacity of printing house for accessibility; Tertiary regulations to enhance the processes of data access and improve the capacity of printing house will be prepared.
1.8. Organizing on-the-job training programs; on-the-job training programs of three weeks on international quality standards and best practices in the field of government financial statistics and governments account for two separate groups of staff each composing of 50 persons, who will be responsible for domestic training, in related member countries mostly recognized to be developed in the public accounts and GFS fields will be organised under TC.
Component 2 Purchasing a Data analysis software
2.1 Organizing one week study visit to two different member states: To observe and evaluate member states practices related to data analysis software in the field of government accounting system including accounting control activities with IT support study visits to two different member states for 5 participants from main beneficiary institution will be organised under TC.
2.2. Obtaining a data analysis system; The MoF produces accounting data of all institutions in the scope of the general budget by means of “say2000i” system (web-based automation system). However, required arrangements have done for the use of the system by other institutions in the scope of GG. With this respect, “say 2000i” system is the main data source enabling collection of accounting data from all GG institutions. Obtaining package programs for data analysis running on through say2000i system will enable GDPA to benefit from IT support in accounting control and to provide reliable data for improving the quality of produced data. Hence, a data
10
analysis software and required hardware components will be purchased by means of a Supply Contract.
Data analysis software which is to be purchased under supply contract isn’t appropriate for further development because it is professional package programme ready to use and only appropriate for making custom design like Commercially Available off-the-shelf goods (COTS) package software.
2.3 Required assistance to identify the requirements and to implement new software in the existing IT structure will be provided by short term experts under TC
2.4. Providing training seminars related to the software; Training programs for at least 100 participants from the main beneficiary institution (GDPA) who will use the software will be organised under TC.
Component 3 Enhancing implementation capacity of the international public accounting standards in all institutions within the context of GG
3.1. Organizing a training seminar on public accounting system and standards; Training on public accounting system and standards for at least 50 participants from pilot institutions and GDPA will be organised under TC.
3.2. Organizing a three day study visit to one member state: To observe and evaluate member states practices related to public accounting system and standards a three day study visit to one member state for 5 participants from main beneficiary institution will be organised under TC.
3.3. In addition to training activities about government accounting standard, published government accounting standards will be reviewed and required changes and contributions to the published standards will be made; As a significant part of this Project, having government accounting standards prepared in accordance with international principles will be one of the important outcome of the project that give rise to increase the quality of public accounts and as well as financial statistics. To this end standards, instruments and other elements necessary to improve the quality of financial accounts including the structure and implementation capacity of the State Accounting Standards Board will be determined and developed under TC.
Component 4 Developing capacity of accounting control system and assurance for government accounts
4.1. Providing the internship on accounting internal control and accounting audit ; In order to train the staff who is going to join the preparation and training studies and responsible for accounting control internship for 20 GDPA accounting controllers in the field of accounting internal control and audit will be organised in two different member states under TC.
4.2. Preparing a manual of the accounting control for the quality assurance of the entire government accounting system so as to GFS; As a verifying process audit and controlling of public accounts are important and indispensable parts of the quality
11
assurance of government accounts and financial statistics. As a result of this quality requirement, manuals related to the accounting control will be prepared. In addition to this manual, a manual of the accounting audit which is going to provide quality assurance of source data will be prepared under TC. These manuals completely will be different from those used by internal auditors in the future because they will be just related to controlling accounting transactions, their transformation process to statistical tables, used accounting and reporting techniques and quality dimensions of public accounting system.
Component 5 Conducting pilot studies related to data quality and accounting standards in each pilot institution.
5.1 Quality control software applications and quality assessment reports including implementation of accounting standards and accounting control applications will be developed for all pilot institutions by the end of the project.
3.5 Conditionality and sequencing:
The tender of this project can be launched on the condition that, by submitting a formal Declaration of Assurance, showing that the beneficiary has sufficient staff in a list for technical implementation and monitoring of the contact. There is no conditionality foreseen for the implementation of this project.
3.6 Linked activities:
1- “TR 05 03 16 Upgrading the Statistical System of Turkey – Phase II”
The Project conducted by Turkstat just focuses on capacity building of Turkstat responsible for sectoral statistical systems and the harmonisation of data collection and processing, and its efficient coordination by the Turkstat. It supports the improvement of the Business Register System and business, social, demographic, tourism agricultural, environmental and health statistics. Assistance is also provided for a revision of the classification system of the Turkstat, the development of statistical analysis, the improvement of national accounts, and of IT technology and administrative structures.
2- Multi- Beneficiary Programme for Statistics 2005.
European specialists took part in the implementation of the project on improving information and communication technologies in the Turkstat. In this context, evaluation of the Turkstat’s metadata base model was accomplished, possibilities to apply alternative models in the census data repository, software requirements of metadata management were revised and recommendations for the strategy of data repository establishment were prepared so far.
12
3- TR/2005/IB/ST/01 “Capacity building for the compilation of accounting data in all institutions and agencies within general government sector in the context of e-governments.”
The ongoing project conducted by GDPA just aims the compilation of accounting data from public administrations within the context of general government by means of a data collection software and reporting these data in compliance with the European Union standards by the Ministry of Finance. The aim is to produce related tables directly from the accounting system and GDPA, as a direct beneficiary, will be generating statistical tables of general government in conformity with ESA 95 and International Accounting Standards and will be sharing them with other beneficiary units like the TURKSTAT at the end of the project.
However, it is important to disseminate high quality data with assurance but the culture of ensuring data quality is not well established within the institutional structure. General government concept has been just opened to discussion and in this context more than 5000 local government institutions, around 100 special budget institutions and social security authority for the first time have started to record their financial transactions according to the new accounting and reporting system which is completely different from the old one. Besides, some common terms like ESA95 and GFS in the international system have not been adequately adopted by the data producers. It is essential that financial statistics be understandable and easily accessible by the users; however, government financial statistics are still not reliable, complete, transparent, and sufficient government accounting standards have not been published yet and any efforts have not been made to raise the awareness of the institutions in this direction.
Since GDPA compiles accounting transactions of agencies on a centralised database and shares compiled data with other public institutions especially the Central Bank of Republic of Turkey, the Ministry of Finance, Undersecretariat of the Treasury, and TURKSTAT over a web-based automation system (Say 2000i) , the proposed project can achieve adherence to the international quality principles and standards in the collection, compilation, and dissemination of government financial statistics.
3.7 Lessons learned:
In recent years, there has been some significant changes in the field of Public Financial Management System of Turkey and the GDPA has tried to be a decisive part of this process. During this time period the GDPA has provided some important contributions to public financial management system development.
GDPA has also taken some responsibilities during process, such as organizing training activities, participating legislative studies and conducting twinning Project with Ministry of the Economy and Finance of Italy. Especially, when conducting twinning Project, the institution has faced some difficulties. For instance, training activities for too many participants have become an important burden for the institution. In this respect, the proposed project shall focus on training of trainers method which is more effective and practicable.
13
14
4. Indicative Budget (amounts in €)
SOURCES OF FUNDING
TOTAL EXP.RE
TOTAL PUBLIC EXP.RE
IPA COMMUNITY CONTRIBUTIO
N
NATIONAL PUBLIC CONTRIBUTIONPRIVATE
CONTRIBUTION
ACTIVITIES
IB(1)
INV(1)
EUR(a)=(b)+(e)
EUR(b)=(c)+(d)
EUR(c)
% (2)
TotalEUR
(d)=(x)+(y)+(z)
% (2)
CentralEUR(x)
Regional
LocalEUR(y)
IFIsEUR(z)
EUR(e)
% (3)
Activity 1
contract 1.1 X – 1,575,000 1,575,000 1,496,250 95 78,750 5 78,750 - - - –
contract 1.2 – X 300,000 300,000 225,000 75 75,000 25 75,000 - - - –
TOTAL IB 1,575,000 1,575,000 1,496,250 95 78,750 5 78,750 - - - -
TOTAL INV 300,000 300,000 225,000 75 75,000 25 75,000 - - - -
TOTAL PROJECT 1,875,000 1,875,000 1,721,250 91,8 153,750 8,2 153,750 - - - -
NOTE: DO NOT MIX IB AND INV IN THE SAME ACTIVITY ROW. USE SEPARATE ROWAmounts net of VAT(1) In the Activity row use "X" to identify whether IB or INV (2) Expressed in % of the Public Expenditure (column (b)) (3) Expressed in % of the Total Expenditure (column (a))
5. Indicative Implementation Schedule (periods broken down per quarter)
Contracts Start of Tendering
Signature of contract
Contract Completion
Twinning 1 Quarter 2009 3 Quarter 2009 4 Quarter 2010Supply 3 Quarter 2009 1 Quarter 2010 2 Quarter 2010
Duration of the project : 18 months
All projects should in principle be ready for tendering in the 1ST Quarter following the signature of the FA
6. Cross cutting issues (where applicable)
6.1 Equal Opportunity
Participation in this project will be open to both males and females involved in the sector. Records of professionals’ participation in all project related activities will reflect this and will be kept with the project documentation.
6.2 Environment
15
Not applicable
6.3 Minority and vulnerable groups
According to the Turkish Constitutional System, the word minorities encompasses only groups of persons defined and recognized as such on the basis of multilateral or bilateral instruments to which Turkey is a party.
This project has no negative impact on minority and vulnerable groups. Training programs and workshops will be held in buildings where access to buildings for handicapped people is possible.
16
ANNEXES
1- Log frame in Standard Format
2- Amounts contracted and Disbursed per Quarter over the full duration of Programme
3- Institutional Framework * Role and responsibilities of the SPO * frequency of project management meetings,
* who chairs, who attends and in what role * coordination mechanisms for multi-beneficiary projects
* monitoring (roles, responsibilities of all actors)
4 - Reference to laws, regulations and strategic documents:Reference list of relevant laws and regulations
Reference to AP /NPAA / EP / SAA
Reference to MIPD
Reference to National Development Plan
Reference to national / sector investment plans
5- Details per EU funded contract (*) where applicable:
For TA contracts: account of tasks expected from the contractor
For twinning covenants: account of tasks expected from the team leader, resident twinning advisor and short term experts
For grants schemes: account of components of the schemes
For investment contracts: reference list of feasibility study as well as technical specifications and cost price schedule + section to be filled in on investment criteria (**)
For works contracts: reference list of feasibility study for the constructing works part of the contract as well as a section on investment criteria (**); account of services to be carried out for the service part of the contract
(*) non standard aspects (in case of derogation to PRAG) also to be specified
(**) section on investment criteria (applicable to all infrastructure contracts and constructing works):
Rate of return Co financing compliance with state aids provisions Ownership of assets (current and after project completion)
17
ANNEX 1: Logical framework matrix in standard format
LOGFRAME PLANNING MATRIX FOR Project Fiche Programme name and number
Improving data quality in public accounts. Contracting period expires: FA+2 years
Disbursement period expires: 3 years following the end date for contracting
Total budget :1.875.000 €
IPA budget: 1.721.750 €
Overall objective Objectively verifiable indicators
Sources of Verification
To enhance transparency and accountability of government financial management system by means of improving data quality in public accounts.
International and EU standards and best practices used by Public Financial Management and Control System (PFMCS).
- Regular reports of international institutions (OECD, SIGMA, IMF etc.) and EU.
Project purpose Objectively verifiable indicators
Sources of Verification Assumptions
To develop public accounting system and to improve the quality of the government financial statistics by means of organizing seminars, conferences and training activities on international standards and EU best practices related to data quality; piloting the new system in 5 public intuitions; purchasing and using a data analysis and management software.
Public accounting system developed and quality of GFS improved.
- Project reports.- Progress reports.- Annual reports of MoF.- General Government Statistics published quarterly.- Central Government Accounts Bulletin published monthly.- Local Government Accounts Bulletin published quarterly.- Social Security Institution Accounts Bulletin published quarterly.
- Turkish government’s dedication to prepare Turkey to accession.
- There will not be any significant policy changes in PFMCS.
18
Results Objectively verifiable indicators
Sources of Verification Assumptions
Result 1: The quality of GFS increased.
Ten conferences for 250 participants, two training activities for 200 trainees and one study tour for 5 participants related to data quality and ethical standards in the field of government financial statistics and government accounts organised.
1.A kick-off meeting to introduce the project organised by the end of first month. 2. Legal and institutional environment related to data quality prerequisites completed and a comprehensive report of its findings and recommendations prepared. Gap analysis report completed by the end of third month.
3. Five one-day conferences organised for the introduction of data quality concepts in the field of public accounting and financial statistics for 125 participants from main beneficiary institution(GDPA) pilot institutions and various local governments, autonomous agencies, special budget institution, revolving funds and extra budgetary funds by the end of fourth month.
4. Training on the issue of data quality for at least 100 participants from pilot institutions and GDPA organised by the end
-Regular Twinning Reports.
-Gap Analysis Report.
-Participation Records.
- Training Questionnaires.
-Participation to awareness raising conferences is ensured by the senior management.
-Necessary qualification of trainees on data quality matters is ensured.
-All formal procedures necessary for the study visits, internship and on the job training programmes are timely completed.
-All tertiary regulations are timely adopted.
-Pilot institutions ensure the presence of required staff for the pilot studies.
19
of sixth month.
5. Five one day seminar organised in order to introduce prepared ethical standards for data providers for 125 participants from main beneficiary institution (GDPA), pilot institutions and various local governments, autonomous agencies, special budget institutions, revolving funds and extra budgetary funds by the end of seventh month.
6. A three day study visits to one member state related to ethical standards for data providers organised for five participants by the end of seventh month.
7. Tertiary regulations prepared to enhance the processes of data access and to improve printing house by the end of eighth month.
8. On-the-job training programs of three weeks on international quality standards and best practices organised in the field of government financial statistics and government accounts for two
-Participation Records.
-Study Visit Reports.
-Tertiary Regulations.
-On-the-job training program reports.
20
Result 2: Data analysis system purchased.
Two study tours and a training activity related to data analysis and management software practices for 10 participants and 100 trainees organised.
Result 3: Implementation capacity of the international public accounting standards in all institutions in the scope
separate groups of staff each composing of 50 persons in related member countries by the end of ninth month.
1. One week study visits to two different Member states related to data analysis software practice in the field of government accounting system organised for five participants by the end of tenth month
2. Data analysis system purchased by the end of eleventh month.
3. Required assistance to identify the requirements and to implement new software in the existing IT structure provided by short term experts by the end of eleventh month.
4. Training on the data analysis software for at least 100 personnel organised by the end of twelfth month. 1. Training on public accounting system and standards for at least 50 participants from pilot
-Study Visit Reports.
-Records from IT System (say2000i).
Regular Twinning reports.
- Training Questionnaires.
-Training Questionnaires.
21
of the GG enhanced.
A study tour and a training activity related to public accounting system and standards for 5 participants and 50 trainees organised.
Result 4: Capacity of accounting control system and assurance of government accounts developed.
institutions and GDPA organised by the end of thirteenth month.
2. A three day study visit to one member state to observe and evaluate member state’s practices related to public accounting system and standards organised for five participants by the end of fourteenth month.
3.Published government accounting standards reviewed and instruments and other elements necessary to improve the quality of public accounts determined and developed by the and of fifteenth month.
1.To develop capacity of accounting control system and capacity of giving assurance government accounts one month internships in the field of accounting control and accounting audit for 20 GDPA accounting controllers in two different member states organised by the end of sixteenth month.
2. Manuals related to the accounting control and
-Study Visit Reports.
- Published Government Accounting Standards.
-Internship Reports.
-Accounting control and
22
Result 5: Pilot studies related to data quality and accounting standards in each pilot institution conducted.
accounting audit prepared by the end of seventeenth month.
1. Quality control applications software and quality assessment reports including implementation of accounting standards and accounting control applications developed for all pilot institutions by the end of eighteenth month.
accounting audit manuals.-Regular twinning reports.
-Quality assessment reports.-Regular twinning reports.
Activities Means Costs Assumptions
All activities will be conducted under a twinning and a supply contracts.
1. Improving the quality of GFS.
1.1 In order to introduce the project to the pilot institutions and other public agencies that will benefit from the project impacts in a longer term a kick-off meeting will be organised with the participation of relevant stake holders.
1.2. In order to enhance the quality of government accounts and financial tables, legal and institutional environment will be revised, gap analysis will be completed, primary and secondary legislation will be reviewed, amendments required for legislation will be identified and proposals
One Twinning Contract.One Supply Contract.
Short term experts, training activities, seminars, conferences, study visit.
-
1.575.000 €300.000 €
745.180 € - All of the stakeholders such as public accountants, statisticians, and related institution etc. are ready to cooperation in all area.
- The General Directorate of Public Accounts (GDPA) staff is ready to adopt the necessary changes to their working methodologies.
- Availability of experts with necessary skills related to twinning project purpose.
- National co-financing available.
23
for new administrative arrangements will be set.
1.3. Ensure that the quality term be comprehended broadly in the government accounting system extensively and to create a quality culture, five conferences about data quality will be organised for 125 participants from various local governments, autonomous agencies, revolving funds and extra budgetary funds pilot institutions and GDPA under TC with assistance of short term experts of EU.
1.4. Training on the issue of data quality for at least 100 participant from pilot institutions and GDPA will be organised under TC.
1.5. Ethical standards for data providers to provide assurance of integrity will be introduced to 125 participants from pilot institutions and GDPA, various local governments, autonomous agencies, revolving funds and extra budgetary funds by means of five one day seminar under TC with assistance of short term experts of EU .
1.6. In order to observe and evaluate member states practices related to ethical standards for data providers a three day
24
study visit to one member state for 5 participants from main beneficiary institution will be organised under TC.
1.7. Tertiary regulations to enhance the processes of data access and improve the capacity of printing house will be prepared.
1.8. On-the-job training programs of three weeks on international quality standards and best practices in the field of government financial statistics and government accounts for two separate groups of staff each composing of 50 persons, who will be responsible for domestic training, in related member countries mostly recognized to be developed in the public accounts and GFS fields will be organised under TC.
2 Purchasing a Data analysis software
2.1 To observe and evaluate member states practices related to data analysis software in the field of government accounting system study visits to two different member states for 5 participants from main beneficiary institution will be organised under TC.
2.2. Obtaining package programs for data analysis running on through say2000i
Supply Contract including software and hardware, short term experts, training activities, study visits.
399.720 €
25
system will enable GDPA to benefit from IT support in accounting control and to provide reliable data for improving the quality of produced data. Hence, a data analysis software and required hardware components will be purchased by means of a Supply Contract.
2.3 Required assistance to identify the requirements and to implement new software in the existing IT structure will be provided by short term experts under TC
2.4. Training programs for at least 100 participants from the main beneficiary institution (GDPA) who will use the software will be organised under TC.
3 Enhancing implementation capacity of the international public accounting standards in all institutions within the context of GG
3.1. Training on public accounting system and standards for at least 50 participants from pilot institutions and GDPA will be organised under TC.
3.2. To observe and evaluate member states practices related to public accounting system and standards a three day study visit to one member state for 5
Sort term experts, training activities, study visit.
54.300 €
26
participants from main beneficiary institution will be organised under TC.
3.3. Published government accounting standards will be reviewed and required changes and contributions to the published standards will be made; Standards, instruments and other elements necessary to improve the quality of financial accounts including the structure and implementation capacity of the State Accounting Standards Board will be determined and developed under TC.
4 Developing capacity of accounting control system and assurance for government accounts
4.1. In order to train the staff who is going to join the preparation and training studies and responsible for accounting control internship for 20 GDPA accounting controllers in the field of accounting internal control and audit will be organised in two different member states under TC.
4.2. Manuals related to the accounting control will be prepared. In addition to this manual, a manual of the accounting audit which is going to provide quality assurance of source data will be prepared under TC.
Short term experts, internship. 188.880 €
27
5 Conducting pilot studies related to data quality and accounting standards in each pilot institution.
5.1 Quality control software applications and quality assessment reports including implementation of accounting standards and accounting control applications will be developed for all pilot institutions by the end of the project.
Short term experts.
Other's cost (RTA, management, contingencies)
72.300 €
414.620 €
28
ANNEX II: amounts (in €) Contracted and disbursed by quarter for the project (IPA contribution only)
Contracted 20093rd
20094th
20101st
20102nd
20103rd
20104th
TOTAL
Twinning Contract 1,496,250
Supply Contract
225,000
Cumulated 1,496,250 1,496,250 1,721,250 1,721,250 1,721,250 1,721,250 1,721,250
Disbursed 20093rd
20094th
20101st
20102nd
20103rd
20104th
TOTAL
Twinning Contract
673,313 168,328 168,328 168,328 168,328 149,625 1,496,250
Supply Contract
135,000 90,000 225,000
Cumulated 673,313 841,641 1,144,969 1,403,297 1,571,625 1,721,250 1,721,250
29
ANNEX III. INSTITUTIONAL FRAMEWORK
The implementing agency for the project will be Central Financing and Contracting Unit (CFCU), who will be responsible for all procedural aspects of the tendering processes, contracting matters and financial management of the project activities.
Beneficiary and Pilot Institutions
The direct beneficiary for this project will be GDPA under the lead beneficiary organization, the Ministry of Finance.
The GDPA collects accounting data, evaluates data, prepares financial reports and collects accounting data from all general government units. The GDPA also examines and audits the accounts and transactions of accounting offices and institutions by its own controllers.
The General Directorate of Public Accounts of the Ministry of Finance is also responsible for developing guidelines, standards and methods and for monitoring their implementation in order to ensure coordination of the government accounting system.
In this scope, GDPA determines working principles and procedures of the accounting services units of the central government institutions and develop training programmes with a purpose to improve the accounting and reporting implementations in the line agencies/ministries.
GDPA will implement the phases of project with its following offices:
- Accounting Controllers Unit,
- Office of Accounting Regulations,
- Office of Statistics and Evaluation;
- Office of Economic Research and Evaluation;
- Office for Examination of Accounts;
- Office of Final Account;
- Office of Human Resources.
These offices have the following responsibilities:
- Audit and control the accounting transactions and financial reports of the all public administrations covered in the PFMC.
- Train institutions and agencies staff in the scope of general government.
- Prepare accounting regulations for public institutions;
- Transform accounting data into statistical tables in conformity with related regulations;
- Study the International standards in the public accounting field in view of approximating Turkish accounting regulations.
30
ii. Pilot Institutions
Pilot institutions will be coordinated, and monitored by the GDPA.
Under this project, Ministry of Culture, Social Security Institution, The Scientific and Technological Research Council of Turkey, Ankara University, Metropolitan Municipality of Ankara are selected as project pilot institutions.
I. Roles and responsibilities
i. Project Steering Committee
The meetings of the Steering committee will be held with the participation of:
The Project Leaders The heads of the relevant departments of the General Directorate of Public Accounts
and TURKSTAT. The RTA, his/her counterpart and RTA assistant. The representatives of pilot institutions Representatives from the EU and Foreign Affairs Department of Turkish Ministry of
Finance.and as observers;
A representative from the Turkish CFCU, An ECD representative and A representative of General Secretariat for EU Affairs as the National Contact Point.
The Steering Committee will be responsible for monitoring the project and to decide on the basis of the deliberations of its attendees, who are not observers, on any necessary changes to be made in the implementation of the project.
The Steering Committee will be held at least at the end of each quarter or as required by the implementation of the project to discuss the progress of the project, verify the achievement of the outputs and mandatory results and discuss actions to be undertaken in the following quarter. The Steering Committee will also discuss the draft of the quarterly report submitted to it beforehand, and recommend corrections.
The Steering Committee meetings will be held in Ankara and chaired by the project leaders of the MS and BC. The responsibility for the organisation of the Project Steering Committee meeting lies with both Project Leaders.
ii . Reporting
The Project Leader is in charge of the submission of formal reports on the project implementation progress to various parties concerned. Those reports consist of quarterly progress reports and a final report.
Every three months, the MS Project Leader in co-operation with the BC Project Leader will submit interim quarterly reports. Each report will cover one quarter of the project calculated from the date of notification of endorsement / signature of the contract. The
31
interim quarterly reports will be prepared and distributed to all participants in advance of the meetings of the Project Steering Committee.
The MS Project Leader shall submit the final report no later than three months after the implementation period.
Also for monitoring of project management and activities, the beneficiary shall prepare monitoring reports every six months, which are to be submitted to the National Aid Coordinator (NAC).
Furthermore, an Independent Interim Evaluation Team contracted by the EC will also prepare an Interim Evaluation Report for the evaluation of the project management and implementation.
iii. Language
English will be the working language of the twinning project. All of the reports will be prepared in English. Turkish documents such as laws, regulations, etc. can be translated into English. Guidelines, presentations, seminar, conference and training documents will be translated into Turkish.
Interpretation will be ensured for all the activities, including study visits. Working language for internships will be English.
If it is necessary, the Assistant of the RTA should ensure the translation and the interpretation for direct contacts.
The below is an organigramme showing the implementation mechanism for the project;
Decision and Implementation Contractual and Monitoring
32
Pilot Institutions
SPOSteering Committee
GDPA
RTA Counterpart
CFCU ECD
ANNEX IV- LIST of RELEVANT LEGISLATION
1. The Public Financial Management and Control Law No 5018.2. General Government Accounting Regulation.3. The Decree no: 178 on the Organizational Structure and Duties of the Ministry of Finance.4. The Statistics Law of Turkey No 54295. The National Statistics Programme (2007-2011)6. NPPA Year 2003
1. Council Regulation (EC) No 2223/96 of June 1996 on the European system of national and regional accounts.
2. Regulation (EC) No 1221/2002 of the European Parliament and of the Council of 10 June 2002 non-financial accounts for general government.
3. Regulation (EC) No 501/2004 of the European Parliament and the Council of 10 March 2004 on quarterly financial accounts for general government.
4. Council Regulation (EC) No 1222/2004 of 28 June 2004 concerning the compilation and transmission of data on the quarterly government debt.
5. Council Regulation (EC) No 2103/2005 of 12 December 2005 amending Regulation (EC) No 3605/93 as regards the quality of statistical data in the context of the excessive deficit procedure.
33
ANNEX V. DETAILS PER EU FUNDED CONTRACT
BUDGET SUMMARY Units Unit costTotal cost
(€)1 RTA 18 month 10000 € /month 180.0002 RTA Assistant 18 month 2.000 € /month 36.0003 Language assistant 18 month 2.000 €/month 36.000
4
Activities (Local and abroad trainings, Conferences, workshops, seminars, pilot studies, study visit, internship etc. Short Term Experts’s training and expertising activities)
1-Activities related to GFS 745.180 Training activities and confernces. (6 STEx20 days) 450 €/day 54.000 Consultancy&Supporting for pilot studies (2 STE x 60 days) 450 €/day 54.000 International travel for STE 8 900 7.200 Local travel cost for STE 8 60 480 Study Visits (5 person x 3 days) 300 €/day 4.500 Per-diem for training activities (2x50x21days) 240 €/day 504.000 Fee for training activities (2x50) 1000€ 100.000 Incidental Cost (2x50x21days) 10€ 21.000 2- Activities related to Software 399.720 IT Consultancy&Supporting (3 STE x 30 days) 450 €/day 36.000 Training activities. (4 STE x 20 days) 450 €/day 36.000 International travel for STE 7 900€ 6.300 Local travel cost for STE 7 60€ 420 Study Visits (10 person x 7 days) 300 €/day 21.000 Supply 300.000 3- Activites related to Accounting Standards 54.300 Training activities (2 STEx10 days) 450 €/day 9.000 Consultancy&Supporting (3 STE x 30 days) 450 €/day 36.000 International travel for STE 5 900€ 4.500 Local travel cost for STE 5 60€ 300 Study Visits (5 person x 3 days) 300 €/day 4.500 4- Activities related to Manuals 188.880 Consultancy&Supporting (3 STE x 30 days) 450 €/day 36.000 International travel for STE 3 900€ 2.700 Local travel cost for STE 3 60€ 180 Internships (20 persons x 30 days) 240 €/day 150.000 5- Activites related to Data quality reports 72.300 Consultancy&Supporting for pilot studies. ( 5 STE x 30 days) 450 €/day 67.500 International travel for STE 5 900€ 4.500 Local travel cost for STE 5 60€ 300
5
Operational Costs of meetings, workshops, and training activities like extension materials including CDs, pens, papers, published documents, etc... 75.000
34
6 Contingencies 87.620 Total : 1.875.000
Qualifications
MS PL (Project Leader):
The PL should have broad knowledge and experience in the field of government financial statistics and government accounts, who will devote all of his/her time to conceive, supervise and co-ordinate the overall thrust of the Member State input.
The PL will allocate a minimum of 3 days per month in his/her home administration for the project and visit Turkey at least every 3 months as long the project lasts.
a) Qualifications:
Good communication and leadership skills;
Competence in English;
Broad long-term knowledge and experience in the area of development and implementation of government financial statistics and government accounts;
Overall appreciation of the problems and solutions in the sector;
Ability to call on short term experts in support of the efficient implementation of the project, with full support of senior officials of the Beneficiary institutions;
Ability to take necessary measures to overcome problems that may appear during the implementation of project, in cooperation with BC PL;
Expertise in the area of EU financed projects.
b) Tasks:
Overall project co-ordination and monitoring on a continuous basis;
Working in close co-operation with the BC PL and RTA;
Co-chairing, with the BC PL, the regular project implementation steering committee meetings;
Mobilising short- and medium term experts;
Advising on future plans, and reporting to relevant authorities on the progress of the project;
Executing administrative issues (i.e. signing official documents including reports, side letters etc)
35
Resident Twinning Adviser (RTA):
RTA will be involved in the twinning project on a full-time basis and will work in the Republic of Turkey.
RTA will co-operate with the short-term experts and relevant Turkish officials and coordinate the implementation of the project to achieve the expected results. He/she is responsible for the management and supervision of the project components.
a) Qualifications:
Good organisation and management skills;
Advanced coordination and communication skills (writing and speaking) in English;
Adequate knowledge on government financial statistics and government accounts as well as on the international standards in this field;
Minimum 5 years of experience in the field of public accounting;
Preferably experienced in twinning projects, particularly in the area of public accounting;
Ability to work in an international environment;
Ability to work under time pressure.
b) Tasks:
Regular preparation and submission of reports on the development of the project to beneficiary institution and to the project leaders;
Implementation and timely completion of the project works, particularly updating the activity plans and timetables, supervising the work of short-term experts, organising and coordinating the meetings and the trips of the short-term experts;
Arrangement of professional translation and the interpretation facilities during the project activities;
Participation in the necessary working meetings and Steering Committee meetings.
Qualifications of RTA Assistant/Interpreter
Each RTA benefits from the services of an assistant-interpreter during the term of his/her assignments.
36
The RTA Assistant/Interpreter is of Turkish nationality, locally recruited and assigned full time work with the RTA. He/she is fluent in English and relevant languages of the MS, and specialised in the required terminology (public accounting). He/she provides translation and interpretation on a daily basis in case of a need, and is responsible for providing all administrative activities and continuous information for experts and other participants involved in project.
Qualifications of Key Experts
Good command of written and spoken English;
Good coordination and communication skills;
To have sufficient knowledge and experience on the EU best practice related to data quality in the field of government financial statistics and government accounts;
At least five years of practical experience in the above mentioned fields
Qualifications of Short Term Experts
Good command of written and spoken English;
Good communication skills;
To have sufficient knowledge and experience on the EU best practice related to data quality in the field of government financial statistics and government accounts;
At least five years of practical experience in the above mentioned fields
BC PL (Project Leader)
Project Leader is under commitment to take appropriate action on the project activities and results. He/she will be responsible for coordination and successful completion of the project activities with relevant staff, and has full authority over the management of inputs, human and material resources of the Beneficiary.
a) Qualifications:
Good communication and leadership skills;
Competence in English;
Broad knowledge and experience in the area of development and implementation of accounting applications from legal and institutional aspects;
Overall appreciation of the problems and solutions in the sector;
Ability to coordinate and organise the project team from BC for the efficient implementation of the project with full support of decision making authorities at high level;
37
Ability to take necessary measures to overcome problems that may appear during the implementation of project, in cooperation with MS PL.
b) Tasks:
Overall project co-ordination and monitoring on a continuous basis;
Working in close co-operation with the MS PL and RTAs;
Co-chairing, with MS PL, the regular project implementation steering committee meetings;
Mobilising relevant experts and staff from BC;
Advising on future plans, and reporting to relevant authorities on the progress of the project;
Executing administrative issues (i.e. signing official documents including reports, side letters etc).
RTA Counterpart
RTA Counterpart will cooperate with RTA, relevant BC experts and short-term experts, and coordinate the implementation of the project to achieve the expected results.
a) Qualifications:
Good organisation and management skills;
Advanced coordination and communication skills (writing and speaking) in English;
Adequate knowledge and experience in the area of government financial statistics and government accounts;
Ability to work under time pressure.
b) Tasks:
Dissemination of reports on the development of the project to the relevant authorities;
In cooperation with and support for RTA, implementation and timely completion of the project works particularly updating activity plans and timetables, supervising the work of BC experts, coordinating the meetings and the trips of the BC experts;
Participation in the necessary working meetings and Steering Committee meetings.
38
FEASIBLITY ANALYSIS
A. General and Legal Framework:
According to article 49 of PFMC law no. 5018, government accounting system should constitute the basis for the preparation of financial reports and establishment of the final account and to ensure the efficient performance of the decision making, control and accountability processes. In addition, according to article 53 the same law the financial statistics relating to public administrations within the scope of general government shall be compiled by the Ministry of Finance. The financial statistics of the public administrations within the scope of central government shall be published monthly by the Ministry of Finance. The financial statistics of the public administrations within the scope of general government shall be obtained through combining the financial statistics of the social security institutions, local administrations and the public administrations within the scope of central government, and shall be published quarterly by the Ministry of Finance. Moreover, According to article 61 of PFMC law no. 5018accounting services of the public administrations within the scope of general budget shall be rendered by the Ministry of Finance.
On the other hand, the clarification of general government sector (GG) as follows:
A- Central Governmenta. Consolidated Budget (CB)
1. General Budget2. Special Budget3. Autonomous Agencies
b. Revolving Funds c. Extra Budgetary Funds
B- Local Governmenti.Municipalities (3225 units)
ii.Provincial Administrations (81 units)iii.Local Government Unions (1610 units)
C- Social Security Institution
As a result of above mentioned articles of the PFMC law 5018 , MoF (GDPA) shall produce statistical tables from accounting data of public institutions defined in the concept of general government but the number of the institutions are more than 5000. This wide institutional structure is tried to cover by means of an IT system which supports any accounting transactions (data entrance, reporting and ect.) of institutions defined in the concept of general budget. The IT system is supported by “say2000i” system which is considerably wide, and gathers accounting data of other public institutions.
Institutions out of the scope of general budget needed to support when they realized they were insufficient in respect to IT infrastructure. To this end, the law No:5436 was legislated. Provisional Article 3 of that law states “ Accounting Office automation system (say2000i), which is used in public administrations within the scope of the general budget, shall also be used in special budget agencies, which are found appropriate by Ministry of Finance. Procedures and principles of set up, operation and usage of the system are determined by Ministry of Finance.” With this legal arrangement some of public
39
institutions found an opportunity to use the say2000i system and its software instead of having a new one and in this way an important public resource was saved.
Consequently, the mentioned legal framework shows that the say 2000i system has got a vital role in order to produce, and protect accounting data and financial statistics. It, however, needs to be equipped with security software.
B. Say2000i SYSTEM
Say2000i is a web-based accounting office automation system designed by the General Directorate of Public Accounts (GDPA) of the Ministry of Finance to computerize daily tasks of 1250 accounting offices across Turkey and to compile all data in a database at GDPA headquarters for monitoring government accounts on a day-to-day basis.
Technological Architecture
Taking into consideration the nature and the scope of the project on full automation of accounting offices through web-based say2000i system, the open system approach is adopted since open systems eliminate the dependency on manufacturers for hardware, software and network solutions and enables the utmost use of capacities of the current infrastructure for the new solutions. Internet technologies have started to be widely used in every part of daily life via the solutions fully complied with the open systems they provided. With the innovations in recent years, the open system and Internet based solutions have started to be successfully utilized in applications requiring security and secrecy. Through utilization of web technologies in application development, a solution based on three-tier application architecture has been established.
The say2000i system consists of three layers:
1. Database Server,
40
2. Application Servers, and3. Clients.
1- Database Server: Data produced by the Ministry of Finance, GDPA and all the accounting offices subordinate to GDPA are kept in the Oracle database on database server at the GDPA headquarters. Say2000i system is based on Oracle 10g Grid (RAC) and Ias10g application development platforms which are the latest database application tools. These systems will be installed only on the database and application servers at GDPA headquarters; and can be used by approximately 7000 clients.
2- Application servers: Technological architecture for say2000i requires powerful data and application servers at the system centre. These application servers are systems that have UNIX operating system; serve 6000 users from 1250 different accounting offices concurrently; have a structure proper for about 15 million transactions per year for the next several years; have memory and processor with a large capacity; are fully complied with Oracle 10g Grid (RAC) and Oracle Application Server; support web applications, automatic backup, three-tier application software, and hardware architectures of 64 bit; have high level of security and processing rate.
3- Clients: Each of 1250 accounting offices will have personal computers (PCs) that have connection to say2000i system and that may be used for office automation purposes. These PCs are low cost systems that are installed Windows 2000 operating system; have properties of sufficient memory, hard disc, CD-ROM driver, multimedia and monitor and equipped with laser printer and UPS and are supported by G.SHDSL and Frame Relay local network. A web browser such as Netscape/Explorer and applications such as MS Office 2000 shall be available on these computers. PC users who enter in the data and take them from the database at accounting offices subordinate to GDPA of the Ministry of Finance are denominated as clients.
Data Flow Diagram
Payments and the other data transferred from spending units to accounting offices that are referred to as clients are entered into the system by these clients and are sent to application
41
servers at GDPA headquarter via secure intranet and then to the database. Information in the database is properly reported and announced to the public via Internet after passing through the web server firewall.
Benefits of the Technological Architecture
1- Because of the fact that the database server and application servers, successively the first and second layers, act as the brain part of the system and are located at the GDPA headquarters, it is possible to eliminate any problem that might arise in the operating system from the headquarters.
2- The abovementioned architecture will operate on TT-Net infrastructure put into service by Turkish Telecom. With the virtual private network (VPN) to be established on TT-Net, an Intranet for the Ministry of Finance shall be established and the Internet accession facilities will be made available for central units of GDPA and accounting offices on a controlled basis.
3- When all the basic data and information are kept in the database at the headquarters, accounts may be monitored on a daily basis, immediate communication with the other central units may be enabled and the data might be shared jointly.
4- Since the activities of application development and update are performed by only one centre, accounting offices may follow the changes concurrently.
5- The need for skilled technical personnel in the accounting offices for the installation, operation and maintenance of the computer systems is eliminated and the facility of working with low cost and easy to learn package programs (e.g. Word, Excel, etc.) is provided for office automation purposes and execution of daily tasks.
6- Continuous operation is secured as a consequence of availability of powerful, fast systems with UNIX operating system and 7/24 operation capability as well as automatic backup.
7- Problems of security and virus and the system errors are kept at a minimum level since the database and application server are located at GDPA headquarters.
Modules of Say2000i System
1. Accounting Module
The accounting module is composed of six parts which are pre-examination, accounting recording form, reports, accounting reference information, year-end transactions and the other transactions. This module includes all the accounts, books, receipts and charts within the scope of Government Accounting Regulation. The monitor is designed to enable the realization of accounting transactions by a single user interface. This monitor design and accounting module enable entering the records of per diems and making corrections on them as well as cancelling them in a common field for the account types defined in the Central Government Accounting Regulation.
42
2. Personnel and Salary Module
The Personnel and Salary module is the most important module in the system enabling storing of personnel and salary data of all public sector employees in a central database and fast and efficient calculation of payrolls through this central database.
3. Health Expenditures Module
Thanks to link between the central health expenditures control system implemented countrywide by the General Directorate of Pension Fund in 1997 and say2000i, it is possible to monitor health expenditures for government employees and carry on viable controls both from the headquarters and the accounting offices.
4. Legislation Module
Beside the legislation bank included in the system, the links for accessing the legislation web pages of other institutions are presented.
5. On-Line Support Module
This module includes technical and operational guides developed for solving problems. Agencies connected to Say2000i System
Beside the GDPA units, following agencies are also linked to the say2000i system and immediate data exchange may be realized with these agencies:
1- General Directorate of Budget and Fiscal Control 2- Presidency of Revenue Administration 3- General Directorate of National Estate 4- The Undersecretariat of Treasury 5- Accounting offices of General and Special Budget Agencies as well as Regulatory and Supervisory Agencies 6- Tax Offices 7- Strategy Development Units of other Ministries8- The Government Employees Retirement Fund. 9- General Directorate of Ziraat Bank10- General Directorate of Pension Fund
Projects and Implementations Developed from say2000i System
1- Project on Transferring Appropriations via Electronic Media2- The Practice of Issuing Electronic Dispatch Order 3- Compilation of Data from Accounting Offices of Revolving Funds 4- Prescription Control System5- Execution of Accounting Transactions of Special Budget Agencies through say2000i system6- Salary Automation Project7- Spending Units Project
Accounting offices within the scope of say2000i
1- Accounting Offices of General Budget Administrations;
43
2- Accounting Offices of Special Budget Administrations;3- Regulatory and Supervisory Agencies 4- Tax offices;
When its technological architecture and its services are regarded, the say 2000i system can be considered as a wide system on which so many data to be transferred. Besides its existing and ordinary safety tests to provide data security and to provide a sustainable system working safely, it is supposed to be supported by professional software developed for security purpose. In order to control and audit of accounting transactions at local level, there is also a need user version of these software.
C. Data Analysis Software
Benefits obtained from these software which are also used by large financial institutions and banks are;
Access any financial and operational data of unit in Turkey. Collect any data from any source and analyze in the same environment. Conduct more thorough file analyses through streamlined access to data from multiple sources To assurance independency of auditors in performing audit activities. No intermediary for accessing data. Cleanse and normalize data to ensure consistency and accurate results To access read-only. To assure data integrity and to prevent any change on the audit data. Make comprehensive analysis over the data so that investigate potential money-laundering activities and fraudulent transactions. Analyze full data and find errors and incompliant transactions inside the data Compare all data so that if there is any link between transactions from different unit, it will be cleared out. Increase personal productivity. Control more data within a less time. Automatically generate comprehensive control reports, continuously monitor transactions, and reduce the processing time needed to complete projects Reduce errors through a standardized file conversion process Analyze entire data populations for complete assurance Analyse entire data for integrity, completeness, reliability and availability Identify trends, pinpoint exceptions, and highlight potential areas of concern Locate errors and potential fraud Perform test and identify suspicious transactions Identify control issues and ensure compliance with organizational and regulatory standards Age and analyze financial or any other time-sensitive transactions Automate analytic testing and receive immediate email notification of resultsIncrease personal productivity
To satisfy above mentioned requirements data analysis software must have components written in the below;
44
It is essential providing one server that can run on the say2000i system and fifteen user version of the software Besides, its required annual maintenance expenses and required training expenses need to be cover in order to operate the system.
D. Hardware
Data bases including accounting transactions have so many data, so do data bases including events effecting accounting transactions. In addition, after receiving data from databases they need to be processed and analysed, swiftly at a desirable level. In deed, to receive millions data from systems, to process and to link those data with other similar data need a considerable hardware capacity. So that it is essential to provide 100 lap tops for local Works and studies and 15 desk tops for central Works and studies. Furthermore, all these above mentioned software need to be personalized and install into these hardware.
E. General Needed
Component UnitsData Analysis Software (Server) to be worked on “say2000i” 1Data Analysis Software (Named User) 15Notebook 100Desktop 15Train 1Maintenance&Support 1
45
MARKET RESEARCH
Component UnitsData Analysis Software (Server) to be worked on “say2000i” 1Data Analysis Software (Named User) 15Notebook 100Desktop 15Train 1Maintenance&Support 1
Data analysis software and Audit Management Software are purchased as Commercially Available off-the-shelf goods (COTS) so that they don’t need to be developed. Software covering pre-determined needs and ready to use are purchased. From this reason, costs of the firms producing these kind of programmes are considered as reference market price.
1. Software Cost
Prices of the software whose benefits are described in the feasibility analysis and technical specifications are described in the related documents are:
2. Maintenance and Training Cost
Required training and maintenance cost and other required cost of the software are:
Maintenance&Support Cost Total 15 ACL Desktop Named User ve ACL Server Software Maintenance&Support ( For a year ) 4.000Total 4.000
Training and Other Required CostCostPer Class
Amountof Class Total
For 100 Participants (20 participant per class) 15.000 5 75.000Analysis library 30.000Total 105.000
LICENCE COST
Components UnitsLisans Cost Total
Data Analysis (Server Version) Unlimited 39.995 39.995Data Analysis Desktop (Named User) 15 1.275 19.125
Total Licence Cost 59.120
46
3. Hardware Cost
Specifications;
Notebook
Main Card Mobil Intel GM965 chipsete Processor Intel Core 2 Duo T7700 (2.40 GHz 800MHz 4MB L2) RAM 2 GBMemory 250 GB (7200 RPM)MONITOR 15.4” WXGA TFT(1280x800) Screen Card 256 mb Connectivity 10/100/1000 Mbps Internal Intel web card
56 Kbps V.92 internal fax-modem cardOPTICAL DRIVE DVD Multi 8X DUAL LayerCARD High Definition 24 bit DAC audio Weight Max 3 KgOperating Sysytem Microsoft Vista Business
Desktop
Main Card Mobil Intel GM965 chipsete Processor Intel Core 2 Duo T7700 (2.40 GHz 800MHz 4MB L2) RAM 2 GBMemory 250 GB (7200 RPM)MONITOR 15 Inch WXGA TFT(1280x800) LCD ScreenScreen Card 256 mb Connectivity 10/100/1000 Mbps Internal Intel web card
56 Kbps V.92 internal fax-modem card OPTICAL DRIVE DVD Multi 8X DUAL LayerCARD High Definition 24 bit DAC audio WeightOperating Sysytem Microsoft Vista Business
Probable market prices of hardware having above specifications are;
Hardware Cost Unit Price Amount TotalNotebook 800 100 80.000Desktop 600 15 9.000Total 89.000
4. Total Cost
47
The total of the above mentioned costs are:
ComponentTotal Cost
Data Analysis Software (Server) to be worked on “say2000i” 39.995Data Analysis Software (Named User) 19.125Trainings 105.000Maintenance&Support 4.000Hardware (Notebook, desktop) 89.000Contingencies 42.880Total 300.000
Some technical specifications were taken into consideration when conducting market research and these specifications and conditions can be proved by means of related official documents. On the other hand, these prices should be revised at contract phase. And all prices are in (€).
48
