Definition of Internal Control (Article 55 of the Public Financial Management and Control Law No. 5018)
Internal control is the whole of financial and other controls that cover internal auditing with the organization, method and process established by the administration to ensure that activities are carried out effectively, economically and efficiently in accordance with the administration's objectives, determined policies and legislation, that assets and resources are protected, that accounting records are kept accurately and completely, and that financial and management information are produced timely and reliably.
Purpose of Internal Control (Article 56 of the Public Financial Management and Control Law No. 5018)
a) To ensure that public income, expenditure, assets and liabilities are managed effectively, economically and efficiently,
b) To ensure that public administrations operate in accordance with laws and other regulations,
c) To prevent irregularities and corruption in all financial decisions and transactions,
d) To ensure that regular, timely and reliable reports and information are obtained to make and monitor decisions,
e) To prevent misuse and waste of assets and to protect them against losses.
Structure and Operation of Control (Article 57 of the Public Financial Management and Control Law No. 5018)
The financial management and control systems of public administrations consist of spending units, accounting and financial services, preliminary financial control and internal audit. In order to establish an adequate and effective control system; necessary measures are taken by the senior managers and other managers of the relevant administrations by taking into consideration the duties, authorities and responsibilities in terms of having professional values and an honest management approach, assigning financial authorities and responsibilities to knowledgeable and competent managers and personnel, ensuring compliance with the determined standards, preventing activities contrary to the legislation and ensuring a suitable working environment and transparency with a comprehensive management approach.