Turkish Court of Accounts (Sayıştay): Audit of Public Spending

Constitutional Foundation of Sayıştay

The Turkish Court of Accounts (Sayıştay) is the supreme governmental accounting and audit body established by Article 160 of the Turkish Constitution. As an independent institution, it serves as the external auditor of the Turkish state, operating on behalf of the Turkish Grand National Assembly (TBMM).

The Court of Accounts traces its history back to 1862, making it one of the oldest institutions of the Turkish Republic. Its modern mandate has been significantly expanded through constitutional amendments and Law No. 6085 (the Sayıştay Law).

Primary Functions

The Sayıştay fulfills three core functions:

1. Audit Function

The Court conducts comprehensive audits of public institutions to ensure:

• Proper use of public resources
• Compliance with legal requirements
• Achievement of intended objectives
• Effective and efficient resource management

2. Judicial Function

Unique among supreme audit institutions, the Sayıştay also possesses judicial authority to determine the legality of accounts and transactions. Its judicial decisions are binding and enforceable.

3. Advisory Function

The Court provides opinions and reports to Parliament on matters of public finance, including:

• Budget implementation reports
• Final accounts review
• Special investigative reports

Audit Scope and Jurisdiction

Entities Subject to Audit

Following significant reforms, the Sayıştay now audits virtually all uses of public funds:

Entity Category	Examples
Central Government	Ministries, Constitutional institutions, Regulatory agencies
Local Governments	Municipalities, Special Provincial Administrations
Social Security	SGK, İŞKUR, BAĞKUR
Universities	Public universities and affiliated institutions
State Economic Enterprises	SOEs, state banks
Public Corporations	Joint-stock companies with >50% public ownership

Political Party Finances

The Court of Accounts assists the Constitutional Court in auditing the finances of political parties, ensuring compliance with political party financing regulations.

Types of Audits

Financial Audit (Mali Denetim)

Examines whether financial statements:

• Present a true and fair view of the entity’s financial position
• Comply with applicable accounting standards
• Are prepared in accordance with budgetary and legal requirements

This audit results in an audit opinion on the financial statements.

Compliance Audit (Uygunluk Denetimi)

Assesses whether:

• Transactions comply with applicable laws, regulations, and rules
• Internal controls are adequate and functioning
• Documentation requirements are satisfied

Compliance audits may identify legal violations requiring corrective action or referral for prosecution.

Performance Audit (Performans Denetimi)

Evaluates the economy, efficiency, and effectiveness of public programs and activities:

• Economy: Are resources acquired at the lowest cost?
• Efficiency: Are resources used optimally?
• Effectiveness: Are objectives being achieved?

Performance audits provide recommendations for improvement rather than legal determinations.

Regularity Audit (Düzenlilik Denetimi)

Combines financial and compliance auditing to provide an integrated assessment of an entity’s financial management.

Judicial Powers

Account Trials (Yargılama)

The Sayıştay has the authority to conduct account trials where it adjudicates on whether public accountants have properly managed public funds. If an accountant is found to have caused a loss to the public treasury through negligence or misconduct:

1. Tazmın Kararı (Compensation Decision): The accountant is personally liable to compensate the loss
2. Beraat (Acquittal): The accountant is cleared of responsibility

Appeals Process

Sayıştay judicial decisions may be appealed to the Temyiz Kurulu (Board of Appeals) within the Court itself. There is generally no further external appeal, though constitutional issues may be raised before the Constitutional Court.

Audit Process

Planning Phase

Each year, the Court prepares an annual audit plan based on risk assessment, covering:

• Priority sectors and programs
• Known problem areas
• Statutory audit requirements
• Parliamentary requests

Field Work

Audit teams visit public entities to:

• Review financial records and documents
• Interview management and staff
• Test transactions and controls
• Gather evidence for audit findings

Reporting

Audit findings are documented in:

• Individual Entity Reports submitted to audited institutions
• Sector Reports covering specific government functions
• General Conformity Statement on the central government budget
• Annual Activity Report to Parliament

Parliamentary Review

Sayıştay reports are submitted to Parliament, where the Public Accounts Committee and other relevant committees review the findings. Parliamentary debate may lead to:

• Policy changes
• Budget adjustments
• Calls for ministerial accountability

Independence and Professional Standards

Institutional Independence

The Constitution and Sayıştay Law guarantee the Court’s independence from the executive branch:

• The President of Sayıştay is elected by Parliament
• Audit members have security of tenure
• The Court determines its own audit program

International Standards

The Sayıştay follows INTOSAI (International Organization of Supreme Audit Institutions) standards and actively participates in international audit cooperation, including with:

• EUROSAI (European SAI organization)
• ECOSAI (Economic Cooperation Organization SAIs)
• UN Board of Auditors

Recent Developments

Expanded Audit Scope

Recent amendments have significantly broadened the Court’s jurisdiction to include municipal companies, state economic enterprises, and defense sector institutions—previously outside its mandate.

Digital Transformation

The Sayıştay has implemented electronic audit systems and data analytics tools to improve audit coverage and efficiency.

Legal Assistance: We advise public officials and entities on compliance with public finance regulations and represent clients in Sayıştay proceedings. Contact us for guidance on administrative and public finance law matters.

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