Law on the Court of Accounts - Law no:832

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LAW ON THE COURT OF ACCOUNTS

Law No. 832

Enacted on: 21/2/1967

Published in Official Gazette on: 27/2/1967 # 12 538



PART ONE

Structure



The Functions and Powers of the Court of Accounts

Section 1 – The Court of Accounts shall be charged with auditing, on behalf of the Turkish Grand National Assembly, the revenues, expenditures, and property of the government offices financed by the general and annexed budgets; taking final decision by trying the accounts and acts of the responsible officials; and performing other tasks conferred on it by various laws in matters related to examining, auditing and passing judgement.



Judicial and executive organisation of the Court of Accounts

Section 2- The following shall be the judicial and executive bodies of the Court of Accounts:

a) Chambers
b) Board of Chambers
c) Board of Appeal
d) General Assembly
e) High Disciplinary Board
f) Board for Officials' Selection and Disciplinary Matters
The Court of Accounts shall include the Prosecutor as the representative of the Treasury.



Personnel of the Court of Accounts

Section 3- The Court of Accounts shall consist of:

1. The Professional Personnel:

a) The President, Chairmen and Members of the Chambers
b) (Repealed by Section 17 of Law 1260:)
c) Rapporteurs,
d) Principal Auditors, Senior Auditors, Auditors and Assistant Auditors,
2. Administrative personnel:

a) (Repealed by Section 17 of Law No. 1260)
b) Directors, Assistant Directors and employees
3. The Prosecutor and Assistant Prosecutors



PART TWO



Qualifications of the President and Members

Section 4- (As amended by section 3677/1 on 1/11/1990)

The President and the Members of the Court of Accounts are required to have completed a four-year institution of higher education in addition to possessing one of the qualifications listed below:

A. Requirements for the President:

The candidate should previously have served as a/an:

a) Chairman or Member of a Chamber of Court of Accounts.
b) Minister, Under-secretary, Assistant Under-secretary or Governor,
c) General Director or President of agencies financed by General or
Annexed Budgets or other public organisations,
d) Chairman of a Ministerial Inspection Board or chairman of the Board of Accounts Experts of the Ministry of Finance and Customs,
e) Professor of law, economics, business administration, accounting, public finance or public administration,
B. Requirements for Members:

Candidates should previously have served (as a/an):

a) Assistant Prosecutor or Auditor of the Court of Accounts who has successfully worked for four years after being promoted to class one and still holds this position.
b) Prosecutor of the Court of Accounts,
c) In positions fall within section (4) (A) (b), (c), (d) above,
d) (Annex: 4/7/1996 - Section 4149/1) Auditor or inspector attached to the respective central audit units of the Ministries of Finance, Internal Affairs or the Under-secretariat of Treasury, provided that he served twenty years in public service after receiving a BA degree from an institution of higher education.


Election of the President

Section 5- (Amended by Section 4149/2 on 4/7/1996)

The President of the Court of Accounts shall be elected by the Turkish Grand National Assembly by secret ballot(s) from among two applicants who are eligible under annex 8 of this law and have been nominated by the Ad Hoc Committee for Pre-election of the President and the Members of the Court of Accounts.

The President shall be elected by absolute majority of those present, which shall be more than one fourth of the total number of members of the Turkish Grand National Assembly.

The term of office of the President shall be seven years. He may be eligible for re-election at the end of his term. The term of office of the President who has not been elected or has not run for office shall continue until the new President takes office. Notwithstanding the availability of cadres, the President whose term has ended shall continue to serve as a Member of the Court of Accounts, the first Member cadre fell vacant shall be assigned to him.



Election of Members

Section 6- (as amended on 4/7/1996 with Section 4149/3)

Of the total number of seats vacant, three fifths shall be elected from among professional personnel of the Court of Accounts and the remaining shall be elected from among the applicants whose tenure referred to in Section 4 (B) (b), (c) and (d), providing half of the quota at the minimum is given to the staff of the Ministry of Finance. In the application of these proportions, if one remains as a fraction after the whole number, this shall be included in the Court of Accounts' quota, while the remainder is two, then one shall be included in the Court of Accounts' quota and the other in the Ministry of Finance's.

When the number of seats vacant reaches five, within seven days, the Presidency of Court of Accounts shall call an election through the Official Gazette and other means of communication. Applications shall be addressed to the Court of Accounts. The duration of application shall be one month from the fist day of the announcement about the election.

The General Assembly of the Court of Accounts, after having carried out an examination on the records of the applicants, shall elect by absolute majority of those present and by secret ballot four candidates for each vacant seat from among those qualifying in accordance with this law. The election of candidates shall be finalised within thirty workdays following the expiry of the period for application. The Court of Accounts shall submit the results of the election to the office of the Speaker of the Turkish Grand National Assembly within three days following the election. If the election is not completed within thirty workdays, the President of the Court of Accounts shall submit the list of applicants, indicating their quotas, to the Turkish Grand National Assembly. In this case, the election of candidates shall be done pursuant to the following subsection.

Out of the list of applicants reported by the Court of Accounts, candidates amounting to twice the number of vacant seats, within the quota proportions as described in the first subsection of this Section, and in accordance with Annex 8, shall be submitted to the Turkish Grand National Assembly. A combined ballot shall be prepared containing separate lists for each group of candidates showing quota to which they belong. The voting shall be carried out by marking the special space across the names. Those votes exceeding the number of vacant seats shall be considered null and void. Those received the highest number of votes within a quota shall be elected.



Security of tenure of the President and the Members

Section 7- The President and the Members of the Court of Accounts can not be dismissed. Unless they so desire, they can not be retired before the age of 65 (The provision of Section 95 is reserved).

The office of those convicted of an offence that requires dismissal from public service shall be automatically terminated. Those, who are incapacitated for the reasons of health, certified by medical report issued by an official board of health, shall be removed from office by a decision of the General Assembly of the Court of Accounts.



Qualifications and appointment of prosecutors and assistant prosecutors

Section 8- (As amended by Law no. 1260, Section 1) The Prosecutor of the Court of Accounts and his assistants, having received the opinion of the President of the Court of Accounts and upon the proposal of the Minister of Finance, shall be appointed by a joint government decree.

It is required that they be graduates of the following: The Faculty of Law, the Faculty of Political Science, the Faculty of Economics, Academies of Economical and Commercial Sciences or one of the educational institutions in Turkey or abroad whose equivalence to aforesaid schools has been certified by the Ministry of Education and have successfully worked for a period of at least ten years in the fields of finance and economics following the graduation.



Qualifications and appointment of Rapporteurs and Auditors

Section 9- Rapporteurs, principal auditors, senior auditors and auditors shall start their career as an assistant auditor.

The Assistant Auditors shall be appointed by the President of the Court of Accounts from among applicants who are the graduates of the following: The Faculty of Law, the Faculty of Political Science, the Faculty of Economics, Academies of Economical and Commercial Sciences or one of educational institutions in Turkey or abroad whose equivalence to aforesaid schools has been certified by the Ministry of Education, and have passed the competitive examination given for the post.

In order to take the examination candidates must be younger than thirty-one years of age and must have the qualifications as required by Section 48 of the State Personnel Law.

The probationary period is one year at the minimum while the maximum is two at the end of which:

Those who are considered suitable for service, in view of their knowledge, diligence, moral qualities shall be appointed as assistant auditor upon the decision by the Board of Officials' Selection and Disciplinary Matters and approval of the President.

The employment of those found ineligible for the service shall be terminated by the decision of the Board of Officials' Selection and Disciplinary Matters and approval of the President.

The assistant auditors shall be required to attend a vocational course or study.

The classroom and on the job training to be given at the course period; the method and conditions of the study; duration of training; the procedures for and conditions of the final examination and other related matters shall be governed by its specific regulation.

To qualify for the office of auditor one must pass the examination held after the vocational course or study.

The professional personnel of the Court of Accounts and the prosecutor and his assistants shall be entitled to promotion every two years.



Secretary General and his assistants

Section 10- (As amended by Law no. 1260 Section 2) A Member appointed by the President shall serve as the Secretary General.

The Secretary General shall be given, with the approval of the President, maximum three aides from among professional personnel who are at the forth or higher degree on the salary – scale.



Appointment of the Rapporteurs and the auditors

Section 11- (As amended by Law no. 1260, Section 3) The Rapporteurs, Principal Auditors, Senior Auditors and Auditors shall be appointed on the decision of the Board of Officials' Selection and Disciplinary Matters and upon the approval of the President.



Qualifications and appointment of the administrative personnel

Section 12- The qualifications of the Administrative Directors and Assistant Directors, and other employees must fall within the Section 48 of the State Personnel Law. They shall be appointed upon the decision of the Board of Officials' Selection and Disciplinary Matters and approval of the President.



Classification of the administrative personnel

Section 13- The administrative staff shall be classified under the principles laid down in the State Personnel Law.

Board for Officials' Selection and Disciplinary Matters shall be authorised to decide on the promotion to upper grade or next step (on the salary-scale) and for disciplinary and penal proceedings of the administrative personnel, in accordance with the State Personnel Law.



PART THREE

Organisation, functions, responsibilities and powers

of the judicial and executive bodies of the Court of Accounts



Chambers

Section 14- (As amended by Law no. 3162 Section 1) Chambers shall be account courts, composed of a Chairman and six Members. It shall sit with the presence of the Chairman and four Members and decide by simple majority.

Chambers:

a) shall try and decide on the accounts and acts of those responsible.
b) If the President deems necessary, shall express opinion on the statement of general conformity and other reports to be submitted to the Turkish Grand National Assembly.
c) shall decide on matters which are sent by the President.
In the event of the absence of the Chairman due to reasons of his being on leave, acting as the President or if the office of Chairman is vacant, the most senior member shall act as Chairman of the chamber. The seniority shall be based on the date of election as Member of the Court of Accounts.



Board of Chambers

Section 15- (as amended by Law no. 1260 Section 4) The Board of Chambers shall consist of those chairmen and members other than the ones elected to the Court of Appeal.

The Board shall be presided over by senior Chamber Chairman.

The Board shall convene with at least two thirds of the total number of the members. If the quorum is not reached due to official leave or vacancy, the Chairman of the Board may invite Members from chambers, providing they do not exceed the quota assigned to the Board from each chamber, to maintain the sufficient number for the sitting in question. In the case of tie votes, the Chairman shall have the casting vote.

The Board of Chambers shall formulate the opinion of the Court of Accounts, to be delivered in accordance with Section 105.

The Board shall carry out all other duties and functions as assigned by this Law and decide on matters forwarded by the President to be examined.

The prosecutor may join the Board upon his own initiative or upon invitation of the Chairman of the Board, on condition that he shall not have vote.



Board of Appeal

Section 16- The Board of Appeal shall consist of four Chamber Chairmen elected by the General Assembly of the Court of Accounts and two Members from each Chamber elected by the same Assembly for a period of four years.

Every year, one fourth of the members of the Board shall be renewed. Those cease to be member of the Board may be re-elected.

The Board of Appeal shall be presided over by the senior Chairman.

The Prosecutor shall defend his case before the Board at trial sessions.

(As amended by Law no. 1260, Section 5) The Board shall convene with at least two thirds of the total number of members. If the quorum is not reached due to official leave or vacancy, the Chairman of the Board may invite Members from chambers, providing they do not exceed the quota assigned to the Board from each chamber, to maintain the sufficient number for the sitting in question. For decision majority vote shall be necessary. In the case of tie votes, the Chairman shall have the casting vote.

The Chairman and Members of the Chamber whose decision have been appealed against shall not be entitled to vote.

Members of the Board of Appeal, shall also carry out such duties as assigned under Section 22.

The Board of Appeal shall be the ultimate authority to decide on the writs issued by the Chambers of the Court of Accounts.



General Assembly

Section 17- The General Assembly shall consist of the President, who shall chair the Assembly sittings, the Chambers' Chairmen and the Members.

The General Assembly shall perform the duties conferred on it by this Law, and shall deliberate and decide on the matters laid before it by the President.

The Prosecutor may attend the Assembly sitting either upon his own initiative or upon the invitation of the President, on condition that he shall not have vote.

(As amended on 4/7/1996 by Section 4149/5) The General Assembly shall convene with at least two thirds of its incumbent members present and take decisions by an absolute majority of those present. In case of tie votes, the President shall have the casting vote.



Unification of non-judicial decisions

Section 18- The General Assembly shall deliberate and decide on the matters where:

there is a contradiction between decisions of the Chambers or between two decisions of the same Chamber on the same subject,
it is deemed necessary to change a decision, or
it is needed to take a decision applicable to all cases of similar nature. During discussions the Prosecutor shall also be present.


Draft bills and proposals of law pertaining to the Court of Accounts

Section-19 It shall be among the duties of the General Assembly to form an opinion on the draft bills and proposals of laws pertaining to the Court of Accounts and prepare regulations governing endorsement (visa) and audit procedures.



The prosecutor

Section 20- The prosecutor shall perform following duties:

a) To express his claims and opinion during the stages of examination and trial of the accounts
b) To be present and express his opinion in the General Assembly meetings at which the deliberations on the statement of general conformity, and the reports to be submitted to the Senate and National Assembly take place (Turkish Grand National Assembly)*.
c) To monitor the execution of rulings entailing disciplinary or punitive actions on the responsible officials.
ç) To inform the Ministry of Finance and other authorities concerned in writing, if during the trial of accounts or under other circumstances he becomes aware of the acts of responsible officials which require disciplinary or punitive actions.
d) To carry out duties given by the President.
e) To express his opinion about the actions to be taken against those accountants who have not submitted their accounts within the time limits prescribed by the law.
f) To carry out other duties stipulated by the law.


PART FOUR

Functions and powers of the officials of the Court of Accounts



The President

Section 21- The President shall be the highest official of the Court of Accounts and be responsible for its overall functioning. He shall be the chairman of the General Assembly. He may preside over the Board of Appeal and the Board of Chambers, as he deems necessary. He shall arrange the issues to be given to these Boards and chair the debates.

The President shall take all necessary measures to ensure that the Court of Accounts performs all duties it undertakes satisfactorily and that it functions properly.

It shall be the responsibility of the President to assign Chamber Chairmen and Members to the Chambers; to distribute work to the Chambers; to assign duties of auditors and other employees; to form audit groups and to prepare programs relating to accounts to be audited at the headquarters and/or on-the-spot.

The President designates one of the Chamber Chairmen to stand in for him. In the event of no such designation or vacancy, the senior Chamber Chairman acts as President.



Chamber Chairmen and Members

Section- 22 Chamber Chairmen shall be responsible for ensuring that the accounts assigned to their Chambers are tried, minutes and writs related to trials are finalised, and other related work performed.

Members shall examine audit reports, indicate their opinion in writing and perform the other duties prescribed by this Law.



Secretary General

Section- 23 (As amended by Law no. 1260 Section 6) Secretary General shall be the managerial assistant of the President.

The President may delegate some of the duties assigned to him by this Law to the Secretary General to perform on his behalf.

The Secretary General shall, in the name of the President, menage and oversee the audit groups and administrative sections.

The Secretary General shall organise research work, studies and publications related to auditing.

The Secretary General shall participate in the General Assembly and the Board of Chambers in his capacity as a member.

Assistants to Secretary-General shall help him to carry out the duties assigned to him. The distribution of work among the assistants shall be made by the Secretary General.



Rapporteurs

24- Rapporteurs shall be charged with drafting decisions given, in connection with duties conferred on the Chambers and the Boards by this Law, by the Chamber or the Board to which they are attached, and preparing minutes and writs of the decisions by their Chamber or Board as well as performing all other tasks connected thereto.



Auditors

Section 25- Auditors shall be responsible for examining accountants' accounts, and final accounts assigned to them by the President or Group Chiefs in the name of the President in accordance with the basis and procedures stated in laws, regulations and circulars; reporting the results to the President; and carrying out other duties assigned to them by this law.

Auditors shall report in writing to the President the provisions of laws, regulations and Government Decrees which they come across during their examinations and appear to be jeopardising the interests of the Treasury in respect of meaning, application or consequences. Such reports are immediately forwarded to the General Assembly by the President, and those which the General Assembly of the Court of Accounts has found worthy of reporting are incorporated into the quarterly reports which are sent to the Senate and the National Assembly. *

The procedures for the examination of accounts by the auditors, for the operation of audit groups; and the functions and powers of the Group Chiefs shall be specified by a directive.



Administrative Personnel

Section 26- The administrative duties pertaining to the functioning of the Court of Accounts shall be carried out by the officials whose cadres are annexed to this law.

The functions of the administrative branches to be established; the manner in which these functions are discharged; and the extent of responsibility of the concerned officials shall be governed by a regulation.



Board for Officials' Selection and Disciplinary Matters

Section 27- The Board for Officials' Selection and Disciplinary Matters shall consist of a Chamber Chairman, a Member, a Principal Auditor or a Rapporteur, a Senior Auditor who are elected by the General Assembly for a period of two years and the Secretary General.

Equal number of substitutes shall be elected in the same manner.

The Chamber Chairman shall preside over the Board.

The Board shall meet with all members present and decide with majority vote.

(As amended by law no. 1260, Section 16) The Principal Auditor or the Rapporteur and the Senior Auditor shall not be allowed to participate in the meetings where deliberations concern themselves.



PART FIVE

Functions and Powers of the Court of Accounts



Functions of the Court of Accounts

Section 28- The Court of Accounts shall perform the following functions:

To audit all revenues, expenditures, property, and the exchange, keeping and disposal of cash and securities, including those entrusted for safekeeping,

To take final decision by trying the accounts and acts of the responsible officials of

I-
A) The Government Offices funded by general or annexed budgets,
B) The institutions and enterprises established as fixed or revolving capital establishments or funds half or more capitals of which are invested by the Government Offices mentioned in subsection (A) l,
C) All other institutions that are by virtue of laws subject to the auditing of the Court of Accounts.
 
II- To record and audit State loans and credits, commitments, donations and aids in cash or goods from various sources, treasury bills, all securities and treasury advances.
III- (As amended by Law no. 3162. Section 2) To submit the Statement of General Conformity related to general and annexed budgets to the Turkish Grand National Assembly within the period stipulated by the Constitution.
IV- To report to the Senate and the National Assembly*, if deemed necessary, on financial matters, accounting procedures and revenue accrual systems.
V- To report to the Senate and the National Assembly on the issues considered necessary to be conveyed, having examined the accounts and transactions of the institutions subject to its audit.
VI- To carry out other duties as prescribed by laws.




Powers of the Court of Accounts

Section 29- In carrying out its duties prescribed by this and other laws, the Court of Accounts shall be empowered to communicate directly with ministries, boards, institutions, administrative heads, accountants and other responsible officials; to have access to the documents, ledgers and records needed for examination by dispatching its staff or having them brought over to any location it deems appropriate; to invite officials of all categories and degrees in order to receive oral information; and to call in representatives from ministries, government offices and institutions.

The Court of Accounts may demand from government offices, provincial Local administrations, municipalities, and all other official institutions, boards and other real and judicial persons, including banks, information and documents related to its auditing work.

The Court of Accounts shall be entitled to examine, on the spot and at any stage of operation and incidence, all related records, goods, properties, practices and services of those government offices and institutions that fall within its jurisdiction, by its personnel or outside experts. The legal status, power and responsibility of the outside experts are subject to general provisions. The principles and procedures to be followed in the application of this section shall be specified by a regulation.

Disciplinary action shall be taken by the authorities concerned, upon the request of the Court of Accounts, against the officials mentioned in first and second subsections above for not fulfilling, without a rightful cause, the requirements of this Section. In addition to above, aforesaid officials shall be subject to actions according to general and specific provisions of law.



PART SIX



Transactions requiring endorsement and preliminary approval (visa)

Section 30- (As amended by Law no. 1260, Section 7)

The contracts and all kinds of commitments that involve expenditure by the government offices and institutions that come under the auditing of the Court of Accounts shall be subject to endorsement; the distribution of appropriations and personnel cadres of the government offices financed by general or annexed budgets shall require a preliminary approval (visa).

(Annex: Law no. 3162, Section 3) The subsection above shall not be applicable to cadres of military personnel. The procedures for forwarding such documents to the Court of Accounts and their safe keeping and disposal shall be established by the Prime Minister's office, by taking the principle of secrecy into consideration and upon consultation with the Court of Accounts and the Ministry concerned.

It shall be compulsory that the commitments and contracts together with their supporting documents be sent to the Court of Accounts within three days from their finalisation. These commitments and contracts shall not become effective unless endorsed by the Court of Accounts.

(As amended by Law no. 3162, Section 3) Notwithstanding the subsection above, the following shall not be subject to endorsement: The contracts which are exempt from preliminary approval (visa) in accordance with Budgetary Laws and Section 64 of the General Accounting Law No. 1050; those issues which are held exempt from tendering by a decision of the Council of Ministers due to reasons of urgency or secrecy; and the contracts for purchases from abroad.



Short -term examination of the expenditures

Section 31- (As amended by Law no. 1260, Section

The Court of Accounts may examine those expenditures that were realised under the general or annexed budgets following the spending within the current accounting term and on a monthly basis. The General Assembly shall decide, upon consultation with the Ministry of Finance, as to the delivery periods of documents, records, books and charts belonging to the accounts which are thus to be examined by the Court of Accounts, and designate the accounts to be examined as such.

At the end of the examination carried out by the auditor, those transactions which are not found in compliance with the law shall be communicated, together with the supporting reasons, to the responsible officials, observing the procedures stated by Section 48. Upon receiving the defence statement from the above mentioned officials a report covering the whole account shall be prepared.

If, in the course of examination and auditing to be carried out in accordance with this law, it is found that the legislation on which the expenditures are based is open to interpretation, the President shall be informed of the matter in order to obtain the Court of Accounts' opinion; and the auditing shall be made accordingly.



Visa and endorsement Procedures

Section 32- (As amended by Law 1260, Section 9) Out of the transactions concerning distribution of personnel cadres and appropriations, as well as contracts and commitments forwarded to the Court of Accounts for approval (visa) or endorsement, those found in compliance with the law shall be approved or endorsed by the auditor and group chief. Those found otherwise shall be returned to the government office concerned for correction and completion, together with written opinion undersigned by the auditor and the group chief.

Depending upon the response, the documents belonging to the aforesaid transactions shall be either approved / endorsed or passed on to the President together with a memorandum.

The President shall send the documents to one of the chambers for its opinion.

If the transaction is found contradictory to the law, the related documents shall be returned to the government office in question in accordance with the decision of the chamber. In the event of appeal against the decision by the disbursement authority, the President shall pass the documents on to the Board of Chambers to be reviewed. If the Board decides that the issue in question is in conformity with the law, the transaction shall be approved or endorsed. If the objection is found to have no grounds and it is decided that the transaction is against the law, the related documents shall be returned to the forwarding government office.

Those documents involving transactions of distribution of personnel cadres and appropriations and those commitments or contracts which the Board of Chambers abstained from approving or endorsing, but are not openly prohibited by law, may be implemented, if the disbursement authority assumes the responsibility and informs the Court of Accounts of the situation together with the justifying reasons. In such a case, the responsibility arising from those payments and expenditures concerning the issues found unacceptable by the Court of Accounts shall rest with the disbursement authority.

The judgement concerning this responsibility shall be passed at the trial of the account of the year in which the payments or expenditures were made.

In case a Minister, who is a first-degree disbursement authority, assumes the responsibility, respective Speakers of the Senate and the National Assembly* shall, complying with its procedure, be informed of the matter and the amount of the payment or the expenditure involved.

The approval or endorsement of a transaction shall neither bind the responsible officials nor restrict the judicial power of the Court of Accounts.



Final rejection

Section 33- (As amended by Law 1260, Section 10) The decision of the Court of Accounts shall be final if the Court of Accounts' abstention from approval or endorsement, and refusal of transactions stated in section 32 is based on calculation error, or insufficiency of appropriations or personnel cadres.



Assumption of responsibility

Section 34- (Repealed by Law 1260, Section 17)



Exceptions to the Pre-audit

Section 35- (Repealed by Law 1260, Section 17)



Submission of contracts not subject to endorsement

Section 36- (As amended by Law 1260, Section 11) Those contracts which are not subject to endorsement in accordance with Section 30, shall be sent, with the supporting documents, to the Court of Accounts within seven days.



Review period

Section 37- (As amended by Law 1260, Section 12) The preliminary approval (issue of visa) of transactions concerning distribution of appropriations and personnel cadres shall be finalised within three days. The endorsement of contracts shall be completed within fifteen days.





PART SEVEN

Auditing



General principles

Section 38- The Court of Accounts shall audit all the government offices and institutions that fall under its jurisdiction:

a) by examining transactions pertaining to their revenues, expenditures and property and all accounts related to these transactions including all records and documents, and finally by trial of all the transactions and accounts;
b) by comparing the results of budgetary accounts (including the deduction period) and accounts of similar nature and results of the accountants' accounts with the related draft of Final Account Bill or trial balance and balance sheet;
c) by examining other issues specified in laws, through receiving information and documents concerned from related government offices and institutions, and establishing necessary records at the Court of Accounts;
Military personnel cadres, equipment, supplies, goods, plants and institutions are subject to auditing by the Court of Accounts. However, the procedure for auditing shall be provided by a regulation to be prepared by the Ministries of Finance and Defence upon consultation with the Court of Accounts.



Time of submission of the accounts

Section 39- The accountants of those government offices and institutions which come under the jurisdiction of the Court of Accounts shall submit their accounts of all the revenues, expenditures and property that are related to the budgetary year, accounting year or accounting period (as specified in their related law) within the month following the period of deduction at the latest.

The Court of Accounts shall determine the accounting period for goods and property transactions, by taking into account the size of transactions, and providing that it should not exceed five years.

The Court of Accounts may decide to have all documents, records, ledgers and statements related to the accounts and transactions of the current year or accounting period sent or have them available for examination at site at the end of a specified period not exceeding one month. This situation shall not remove the responsibility for submitting accounts at the end of the year or accounting periods as required in the subsections above.



Characteristics of accounts

Section 40- The revenue, expenditure and property accounts shall be submitted to the Court of Accounts separately. Aforementioned accounts of government offices and institutions for a budgetary year, account year or a special account period prescribed by the law shall be constituted of the following:

a) Revenue accounts: ledgers, statements and all kinds of related documents that indicate quantities and nature of all accrued and collected revenues, and deposits;
b) Expenditure accounts: statements, ledgers and all kinds of related documents that indicate the quantity and nature of all expenditures made and moneys and valuables received in this connection;
c) Property accounts: statements, ledgers and all kinds of related documents that indicate the quantity and nature of all property and goods possessed, purchased or spent and those disposed of through annihilation or other means.
The following are also included among the accounts to be submitted to the Court of Accounts: Budgets, personnel cadres, final accounts and decisions related thereto that are approved by the competent authorities of the fixed and revolving capital entities or funds referred to in subsections 1(B) and (C) of Section 28 or other institutions and final trial balances and balance sheets of the institutions whose accounts kept in balance sheet method.

The kinds of the statements, ledgers, documents mentioned in the above subsections and their submission periods shall be determined, by a circular, by the Court of Accounts.

If, (in accordance with a special law) an accountant is at the same time, responsible for carrying out transactions of revenue, expenditure and property, Court of Accounts shall inform with a circular, the concerning government offices, institutions and accountants of the mode and form in which the accounts will be submitted and whether accounts are to cover transactions entirely or partially, and the conditions for submission of accounts separately.



Accountants

Section 41- The accountants accountable to the Court of Accounts shall be the following:

1. Accountants of revenue;
2. Accountants of expenditure;
3. Accountants of property.


Those considered as accountants

Section 42- If those not appropriately designated as an accountant, collect revenues, make expenditures or keep and manage property by acting on their own initiative or upon a directive shall be considered as accountants, unless their accounts are included in that of another accountant, and as accountants submitting their accounts to the Court of Accounts, pursuant to this law, shall be incumbent upon them and the rules of accountability imposed on the accountants shall be applied to them.

If the situation has occurred upon a written directive of a superior, the superior official shall share the responsibility.



Informing the Court of Accounts of the accountants and the accountancies

Section 43- Ministries, agencies with annexed budgets and all government offices and institutions subject to the audit of the Court of Accounts shall be under obligation to inform the Court of Accounts, before the beginning of the each accounting year, of: the types and locations of all accounting offices in the country and abroad; the scope of their responsibility; the addresses of the affiliated fiduciaries, stores, depots and the similar; and names, personnel file numbers, salaries, and grades of accountants on duty and to send signature samples of the responsible officials.

Changes that take place during the year shall be reported within one month from the date of change to the Court of Accounts.



Submission of accounts

Section 44- The accounts shall be completed by the accountants, within those periods as indicated by this Law and other laws and made available for examination or sent to a location as indicated by the Court of Accounts.

The accounts shall be prepared and submitted by the last accountant that has taken office. The responsibility for not submitting the account rests with him.

Those accountants who, after having completed their accounts, are appointed elsewhere, retired or removed temporarily from office shall deliver their accounts to their successor and shall document the incidence with a delivery report.

In case an accountant is not able to submit his accounts for reasons of poor health, passing away or other inevitable excuses, or if the accountant refrains from submitting accounts; such accounts shall be delivered to the new accountant by a committee to be formed within the related office to which the accountant is attached.

If an accountancy merges with another, the accountant shall deliver his accounts up to that date, to the new accountant. If an accountancy is closed, the accountant must submit the account to the Court of Accounts within three months.



Conditions for accountability

Section 45- The amounts relating to the revenues, expenditures, properties and valuables that have not been accrued, collected, spent, given, kept or managed in accordance with the law shall be paid to the Treasury by the responsible officials, upon the final decision of the Court of Accounts, within three months from the date they are notified.

The final decisions of the Court of Accounts shall be communicated, in accordance with section 63, to the responsible officials and to the Ministry Finance to start necessary investigation.

The compensation of property shall be made at current market price at the date of its loss. If this date is not known, the payment shall be made at the highest price between the dates of its purchase and discovery of its loss. The general provisions applied to the cases where state property has been damaged shall be reserved.



Audit of the accounts

Section 46- The General Assembly shall decide which of the accounts be examined at the headquarters and which on the spot. The auditors assigned by the President shall examine the accounts.

However, property accountancies whose value of recorded property sums up to 500 000 Turkish Lira or more, are audited on the spot.

Any one of the accounts that are decided to be audited at the headquarters may be examined on the spot by the decision of the chamber to which the account is assigned upon the request of the related auditor. If this decision is approved by the General Assembly, the account shall be audited on the spot by the auditors assigned by the President.

The following shall be examined during the auditing;

1. Whether the revenues, credits and all sorts of rights have been accrued, followed up and collected in accordance with laws, regulations and the budget,
 
2. Whether,
a) the expenditures have been made in accordance with laws, regulations, the budgetary appropriations and personnel cadres,
b) the payments have been made to those entitled or their representatives after their identification have been properly checked,
c) all transactions which are included in the financial statements and operations of monies, securities and valuables have been performed in accordance with laws and regulations,
 
3. Whether entry, safe guarding, utilisation and disposal of movables and immovables have been carried out in accordance with laws and regulations and whether they fully exist where they are supposed to be,
 
4. Whether all the transactions and accounts mentioned in the subsections above are in conformity with their associated documents and records.


Compliance of expenditures with the purposes for which they are appropriated

Section 47- The Court of Accounts shall include its opinion in the Statement of General Conformity on whether or not budgetary appropriations of all government offices and institutions that come under the jurisdiction of the Court of Accounts have been expended on work, services and needs for which they were appropriated.



Reports of auditors

Section 48- Auditors shall examine the accounts which have been assigned to them in line with the principles stipulated in this and other laws and with the procedures stated in the regulation specific to the audit of the Court, and prepare a report that indicates the result of the audit. The auditor shall obtain a written defence statement from each responsible official as to any practice that is contradictory to the legislation that he has come across or any incomplete work he has observed during the course of examination. The auditor shall include the defence statement, together with his opinion, in his report.

If the responsible official who has been notified, in accordance with appropriate procedure, of a demand for defence statement does not reply within 30 days, the auditor's report shall be prepared without waiting for the defence statement but be based on the information and documents available at the time. The auditor shall at the same time ask for disciplinary or penal action.

Such reports shall indicate whether the accounts are correct and balanced; documents are complete and there are issues that create responsibility and also whether expenditures and performances of the fixed or revolving capital establishments or special funds mentioned in subsection 1(B) and 1(C) of Section 28 are compatible with the objectives of establishment shall be shown at the end of the reports.



The obligation to supply information and documents

Section 49- The responsible officials and other related civil servants shall be under an obligation to supply the necessary information and to show or submit the records and documents asked by the auditor without any delay.

If the responsible official does not have the required document with him, then the document shall be asked from the related government office. The responsible officials shall be obliged to produce the original documents; if the originals are not available the second copies shall be submitted.

Disciplinary or penal action shall be taken, pursuant to this law, against those who fail to comply with subsections above.



Procedure to be followed on the audit reports

Section 50- Upon completion of an examination, the auditor shall prepare a report and submit it, together with the related statements and documents, to the President. The Presidency shall forward such reports to the chambers to be tried.



Penalties to be imposed on Accountants and other responsible officials

Section 51- Those accountants who fail to fully submit their accounts by the time assigned by the law, and those officials, of the government offices and institutions come under the jurisdiction of the Court of Accounts, who fail to furnish any required information and to submit documents and/or ledgers in the course of auditing or trying of accounts, and who inconvenience the trial or audit shall be, at the request of the Court of Accounts from the employing agency or institution, paid half of their salaries until they fulfil the above mentioned requirements. Starting from the date of deduction of the salary by half; if, the accountants, within three months; and other officials, within the period determined by the Court of Accounts, fail to submit accounts or the required information, documents and ledgers or to remove reasons which inconvenience the audit and trial, they shall be laid off by their respective agencies, in accordance with their appointment procedures, and shall be subject to prosecution.

The provision of this section shall be applicable to those who fail to follow-up the execution of writs issued by the Court of Accounts.



Accountants who fail to submit their accounts

Section 52- The accountants who, because of retirement, or temporary dismissal upon orders from the Ministry or other similar reasons, are not temporarily or permanently on duty shall not be paid their salaries and other allowances until they submit their accounts.

Those who have been transferred to another position shall not start at their new post until they deliver their accounts. If those accountants who leave their job by resigning fail to deliver their accounts in time, shall not afterwards be appointed to a post in the government offices and institutions that come under the jurisdiction of the Court of Accounts.



Informing Court of Accounts of the actions taken against the responsible officials

Section 53- It shall be obligatory for the concerning government office to inform the Court of Accounts about the implementation of Sections 51 and 52 above and its consequences.



Disciplinary Proceedings

Section 54- Upon demand of the Court of Accounts, the government office concerned shall institute the disciplinary proceedings against those who fail to apply Sections 51 and 52.



Auditing of loans, credits and advance payments

Section 55-

a) Loans and concessions extended to institutions or individuals by the Government and recorded under an account opened by the Treasury, shall be examined and followed up by the Court of Accounts through accountants' accounts.
Even those transactions of loans guaranteed by the Treasury under special laws shall be subject to examination and monitoring by the Court of Accounts.

The findings of such examinations shall be incorporated in the Statement of General Conformity.

b) The advance payments received and loans made by government offices financed by the general and annexed budgets, and the amounts, interest rates and redemption costs of the treasury bills issued with no service in return shall be registered by the Court of Accounts according to legal provisions. The Court of Accounts shall be informed of the agreements of loans and advance payments within three months from the date of agreement and shall also be notified of treasury bills, within three months from the date of signing and emission.
The findings of such examinations shall be incorporated in the Statement of General Conformity.

c) Even the advance payments and loans extended, according to legal provisions, to trustees and contractors, shall be subject to examination by the Court of Accounts.


PART EIGHT

Trial



Examination of accounts by the chambers

Section 56- Chairmen of chambers shall receive the Prosecutor's written opinion on each audit report submitted to their chambers.

The report from the Prosecutor shall be given by the Chamber Chairman to one of Chamber Members to obtain his opinion.

The member shall carry out the necessary examination on the report. If he deems necessary, he may look into the items of the report that include unqualified opinion of the auditor with a view to satisfying himself whether the issue has been thoroughly examined. Adding his own opinion on each item of the audit report he shall return it to the Chairman of his Chamber.

During the examination carried out on the report by the member, if he deems necessary, he may ask the Chairman of the Chamber that the account be reviewed by a Principal Auditor to see whether the account has bee thoroughly examined. If the Principal Auditor finds issue(s) that should have been included in the report, he shall, following the established procedures, obtain the defence statement of the responsible officials and shall write his report. The report shall be sent to the Prosecutor to obtain his opinion then to the Member through the Chamber Chairman.



Trial of the accounts

Section 57- The Chamber shall commence the trial of the account upon receipt of the member's written opinion. If, during the trial, deemed necessary, the prosecutor shall be invited to the sitting to be consulted.



Documents sufficient for the accountant's acquittal

Section 58- Cash remitted through mail or bank to government offices, trustees or creditors and receipts against goods and securities shall be sufficient for the acquittal of the accountant.

When money has been spent in the name of another branch accounting office or the Central Accountancy and if the documents or deeds covering the expenditure have been sent to those concerned; submittal to the Court of Accounts, of the documents received from the related accountant or the Central Accountancy confirming their receipt shall be sufficient for the spending accountant's acquittal.

Acquittal shall also be possible in cases where such documents have not been sent to the Court of Accounts, but verified copies of records kept at the time of posting or verified copies of the missing documents based on the official records are provided. However, if such copied documents do not comply with laws and regulations, the responsibility according to this law shall continue.

If monies delivered (with witness recording) to the post office as valuable postal packages are found partly missing at the receiving end, the responsibility shall be determined in accordance with the investigation carried out by the related government office and decision taken by the judicial court.



Failure to provide documents

Section 59- In cases where the originals or second copies of the documents could not be produced due to unavoidable conditions, the responsible officials shall be either acquitted or held liable, after the prosecutor having been consulted, as per the documents, existing records or evidence indicating that the service has been provided and the provider has been paid.



Failure to provide documents due to extraordinary Circumstances

Section 60- If it is confirmed by the Administrative Boards of Provinces that documents and records have been lost due to extraordinary circumstances such as war, fire, floods, earthquakes, or evacuation because of administrative or military reasons or because of theft or other unavoidable reasons, and that it is unlikely to find them, the accountant shall be tried by considering the available evidence

However, the accountant must inform his superior immediately and the Ministry to which he is attached within fifteen days from the occurrence of the conditions mentioned above, in order to obtain his acquittal. In such a case, acquittal or responsibility of the accountant shall be decided by the Court of Accounts in consultation with the Ministry or the office to which he is attached.



Decisions and minutes

Section 61- (As amended by law 3162, Section 4) Upon trial of the accounts and transactions in accordance with the sections above, acquittal or indemnification shall be decided. It may also be decided to inform the relevant authorities of the issues that have been considered appropriate.

In the course of a trial, if it is observed that the accounts and transactions lack their supporting documents due to their being submitted to a court or an administrative authority; the information and documents concerning a transaction under trial are found insufficient and/or it has been decided necessary to wait until the completion of the investigation and prosecution, the trial of such accounts and transactions may be suspended and excluded from the decision about the account. Section 66 shall be applied if the accounts and transactions excluded have not been tried within two years from the date of completion and furnishing of the above.

A summary of the decisions given shall be included in the audit report and signed by the chairman of the chamber. It shall also be required that a minute be written to be signed by the Chairman and Members of the Chamber.



Writs

Section 62- After the draft writ has been read and signed by the Chairman and the Members of the Chamber, required number of copies of the writ shall be issued. Two copies of the writ shall be signed by the Chairman and Members of the Chamber. Of these copies one shall be retained at the Chamber, the other and the remaining unsigned copies shall be submitted, together with the account file, to the office of the President. After copies of the writ have been sealed and signed by the President or by his designee, copy of the writ signed by the Chairman and members of the Chamber shall be kept at the General Secretariat.



Notification and clarification of writs

Section 63- The Court of Accounts shall send, according to the existing procedure, one copy of the writ to each responsible official, one copy to the Ministry or government office to which the responsible official is attached; two copies to the Ministry of Finance of which one to be sent to the related accountancy and one copy to the prosecutor.

If the decisions rendered by the Chambers or the Board of Appeal are vague, any one of the parties concerned may request the clarification of such decisions. The parties may also request the correction of errors relating to their names, surnames, job titles and/or claims or errors of calculation in the writ.

The number of petitions, lodged for clarification or correction, shall be one copy more than the number of other party.

The Chamber or the Board of Appeal, whichever has passed the decision, shall examine the matter and if it is deemed necessary, communicate the petition to the other party to be answered within the time specified. The reply shall be in double copies; and one of which shall be communicated to the party demanded the clarification or correction.

The decision of the chamber or the board shall be communicated to the parties.

The clarification may be demanded until the execution of the decision.



Enforcement of writs

Section 64- The writs of the Court of Accounts shall be enforced in accordance with Section 45, following their becoming definite (final decision). The Official highest in standing of the office to which the writ has been sent shall be responsible for follow-up of the enforcement.

The amounts of embezzlement* and/or indemnification, indicated in the writ, shall be collected, with their interest, in accordance with the ''Execution and Bankruptcy Law''. The amount concerning embezzlement shall be subject to the interest starting from the day it occurred; while that of indemnification shall be from the day on which the decision was taken.

However, the interest calculated shall not exceed the 10 % of the total amount of the decided embezzlement or indemnification.



Acts involving guilt

Section 65- In the event of encountering a guilty action in the course of a pre or post audit, the auditor shall immediately collect the evidence and convey it to the President. If the Chamber assigned by the President decides that the incidence should be prosecuted as a public case, the related documents or part of the account shall be handed over to the office to which the responsible official is attached or the Office of Public Prosecutor for the necessary action to be taken. Decisions given by the general courts shall be without prejudice to the Court of Accounts' audit and trial of accounts and transactions. The application of this section shall be provided in a regulation.



Approval by right

Section 66- The accounts submitted completely to the Court of accounts shall be considered approved by right, in the event that they have not been tried for two years starting from their submission.

(Annex: Law 3162, Section 5) If it is decided by the chamber that the accounts are not suitable for passing judgement on because of calculation error and inconsistency in the statements and other documents which constitute the accounts, the time of submittal of the accounts shall be the date when the complete and correct accounts have reached the Court of Accounts.





Review Procedures

1. Appeal



The authority for appeal

Section 67- Appeals against the writs of the chambers shall be lodged with the Board of Appeal. The decisions of the Board of Appeal shall be final.



Conditions for appeal

Section 68- The officials specified in Section 63 may appeal against the writs issued by the chambers on the following grounds:

a) Contradiction to law,
b) Exceeding of powers,
c) Failing to observe legal procedures
The time by which the appeal shall be lodged is ninety days from the date of notification of the writ.



Request for appeal

Section 69- The request for appeal is made through a petition. The concerned shall attach the documents supporting his or her objection to the petition. The appellant shall give in copies of petition in the number of concerning parties.

The appeal petitions accompanied by the supporting documents shall be communicated to the other parties. The parties may reply within thirty days after notification. The replies by the other parties shall be communicated to the appellant, who may respond to it within fifteen days. The other parties notified of this answer may also reply to it within fifteen days.



The decision on the request of appeal

Section 70- The case shall be examined and a decision shall be passed on after the replies have been received or if one of the parties has failed to respond within the time specified.



Competent authorities where the petition for appeal shall be lodged

Section 71- The petition of appeal and the supporting documents shall be submitted to the Court of Accounts. The appellant not residing at the Capital City may give in the petition of appeal to the highest administrative governmental official where he resides, to be sent to the Court of Accounts.

If the appellant wishes, he shall be given a receipt indicating that the petition and related documents have been received.



Verbal procedure

Section 72- If the parties request in writing or if the Board of Appeal deems it necessary, the Board may invite concerned parties or one of the parties to hear their/his defence or to ask for clarification.



Decision of the Board of Appeal

Section 73- The Board of Appeal may either approve the decision appealed against, as it is or by correcting it, or rescind or cassate it. In case of cassation the file shall be sent back to the chamber rendered the decision to be reviewed and decided again.

If the chamber insists on its first decision and the Board of Appeal cassates the decision once more, the chamber shall comply with this decision.

(Annex: Law 3162, Section 6) The decisions of the Board of Appeal that rescind indemnification, apply to all the responsible officials involved in the article of the writ appealed.



2. Revision of Judgement



Reasons for revision of judgement

Section 74- The prosecutor, the responsible official, the Ministry or government office to which the responsible official is attached or Ministry of Finance may demand revision of judgement. Chambers of the Court of Accounts may decide to revise their judgement. Reasons for revision of judgement shall be as follows:

a) Existence of calculation error, incomplete