Public Internal Audit Reforms in Turkey: Structure, System, and Roles

PurposeCountry comparative studies especially in Africa on public procurement reforms toward financial control and accountability of public expenditure are limited. Meanwhile, these kinds of studies have potential for providing useful insights on how value for money through public procurement is being ensured across Africa. This paper attempts to provide this. The purpose of this paper is to highlight several policy recommendations for public management aimed at improving public procurement and public financial management (PFM) systems in Africa.Design/methodology/approachThe paper adopts a qualitative case study using secondary data drawn from Global Integrity Index (GII) of the Transparency International and the World Bank’s Country Policy and Institutional Assessments databases to investigate variables that influence public procurement practices in three purposively selected African countries. The comparative approach for presenting some of the experiences of countries in public procurement methods is used in this paper.FindingsThe findings suggest three main variables, namely, government structure and economic variables, complicated by socio-cultural values interact to influence public procurement and PFM systems in the case study countries.Research limitations/implicationsData for the GII indicators used were only available from 2013, which restricted the discussion of those indicators to a short span (2013–2015).Social implicationsThe socio-cultural milieu within which public procurement takes place has implications for how governance structures function to deliver value-for-money public procurement.Originality/valueThis study adds value by comparing three countries within Africa to reveal common variables which influence public procurement and PFM systems.

Forensic Finance and Budgeting Process Within the Public Financial Management (PFM) Framework in the African Context

The article explores an approach to implementing modern digital technologies, such as blockchain solutions, in the public finance management system, considering global experience. The purpose of the article is to develop recommendations for the implementation of digital technologies into the existing public finance management mechanism of modern Ukraine to reduce objective risks from the “human factor” in corporate and public management, and, in accordance with the goal, 5 research tasks are set and solved in the article. The author analyzes key challenges in public finance management, particularly the negative impact of the human factor, and proposes solutions aimed at minimizing errors, enhancing transparency, and reducing corruption risks. Existing methodologies and frameworks for evaluating digital technologies, such as the digital maturity models of the OECD, the World Bank, ISO 37122, as well as methodologies from NIST and the EU, are examined. The study develops a new methodological approach to the comprehensive evaluation of technologies, encompassing six key criteria: process automation, transparency, security, decentralization, efficiency, and implementation cost. A technology assessment system is proposed for each criterion, along with a mathematical model for calculating an integrated indicator. This methodology enables the classification of technologies as either key or auxiliary in the context of the digital transformation of the public finance management mechanism. The article emphasizes the unique potential of decentralized technologies, such as blockchain, in minimizing the impact of the human factor. The primary contribution of the study lies in creating a scientific basis for enhancing the efficiency of public administration by introducing modern digital technologies capable of minimizing the adverse effects of the human factor. Applying the developed technology evaluation methodology will provide a well-founded means to identify priority areas for the digital transformation of Ukraine’s public finance management system, taking into account global experience and national specifics.

The concept of Public Internal Financial Control (PIFC) has been developed by the European Commission in order to provide a structured and operational model to assist national governments in reengineering their internal control environment and in particular to upgrade their public sector control systems in line with international standards and EU best practice. The democratic changes affecting all areas of life in the last years, have led to reforms in the management of public finances of the public sector in the Republic of Albania. On the road of the accession to the European Union, Albania is in the process of important conceptual, legislative and structural reform of the Public Internal Financial Control framework with the aim of strengthening the managerial accountability of the managers of public sector organizations and further develop independent internal audit. The paper aims to give some key issues regarding PIFC development in Albania such as: the level of transparency regarding the status of the financial management and control and internal audit in the public sector; the awareness of the Heads of public organizations about the importance of sound financial management and control and to enhance their managerial accountability; information about the self assessment of the heads of public sector organizations on the adequacy and the effectiveness of internal control and about the progress made. It also outlines the weaknesses, solutions and development opportunities based on the assessment of the status of the financial management and control systems as well as of the internal audit. Through conclusions it summarizes the main directions in which the Albanian institutions must be focused in the future for further development and improvement of management of public resources. The development of the new model of public internal financial control in Albania demands from all the participants in the process, leading to effective action in accordance with their roles and responsibilities. Only proper implementation of new legislation and efforts by all stakeholders can lead to achieving the goal - to create a modern system, reliable and functioning of public internal financial control. In this regard the CHU/FMC will outline specific measures related to strengthening managerial accountability and updating of legislation and methodology in the field of internal control in accordance with EU legislation and best practices. As one of the three pillars of the Public Internal Financial Control System, Internal Audit has developed and continuously improved in order to take its modern role as advisor for the assessment and systems and contributing to the achievement of strategic and operational objectives of the organization, always in accordance with international standards and best practices. DOI: 10.5901/ajis.2014.v3n4p301

Effective public financial management (PFM) systems rely on robust audit trails and transparent reporting mechanisms to ensure accountability, detect irregularities, and maintain institutional integrity. Across emerging economies, however, weaknesses in audit documentation, inadequate financial disclosure, and poor internal control practices continue to undermine fiscal responsibility and erode public trust. This study empirically examines the interrelationship between audit trails, financial transparency, and internal control effectiveness within public financial management systems across Nigeria, Kenya, and Ghana. Using a quantitative cross-sectional design, data were collected from 420 respondents drawn from ministries, departments, and agencies (MDAs) in the three countries. Structured questionnaires measured audit trail quality, transparency indicators, and internal control performance, while regression analysis determined the predictive influence of audit trails and transparency on control effectiveness. Results revealed that audit trails and financial transparency jointly explained 52 percent of the variance in internal control effectiveness across the sample. Organizations with comprehensive audit documentation, digitized transaction records, and timely financial disclosure exhibited significantly higher control scores than those relying on manual or fragmented systems. Among the three countries, Kenya demonstrated the strongest correlation between digital audit trail integrity and control performance (r = 0.72, p< 0.01), reflecting the impact of its integrated financial management information system (IFMIS). Conversely, Nigerian institutions showed relatively weaker associations, attributed to low automation and irregular financial reporting. Regression results further indicated that audit trail strength (β = 0.46, p< 0.001) and financial transparency (β = 0.33, p< 0.001) are significant predictors of internal control effectiveness. The findings emphasize that strengthening audit trails through digital integration, regular reconciliation, and secure data archiving enhances not only accountability but also operational control within PFM systems. Financial transparency acts as a reinforcing mechanism that promotes compliance, mitigates corruption risk, and builds stakeholder confidence. The study concludes that institutionalizing real-time audit documentation and open financial disclosure practices are indispensable for effective internal control and fiscal governance in developing economies. Policy recommendations include investment in audit automation, capacity building for internal auditors, and mandatory disclosure frameworks aligned with international public sector accounting standards.

The article defines, the need to improve the system of public financial control at the regional level is due to the concentration of financial and material resources of a particular area for more efficient use. Definitely at the current stage of development of financial control, scientists pay much attention to providing recommendations for reforming financial control over the implementation of local budgets, but they are diverse, which complicates the comprehensive improvement of the system of financial control over the implementation of local budgets. The need to increase the efficiency of the system of financial control over the implementation of local budgets in Ukraine, the need to revise many theoretical and practical provisions requires research and development of scientifically sound recommendations for further development of the control system at the local level. The purpose of the article is to identify problems of inefficiency of the state financial control of local budgets, develop directions for its reform in the context of organizational, regulatory, methodological support and justify the need for public monitoring in the budget process as a tool for civil society and local authorities. The methodological basis of the study are general philosophical and general scientific methods of cognition of phenomena and processes in the system of financial control. In the process of studying the theoretical aspects of control, a systematic approach was used to form a system of financial control over the implementation of local budgets.The directions of reforming the system of financial control over the implementation of local budgets in terms of elements of the support subsystem of the financial control system are proposed, namely: improvement of regulatory, organizational, personnel, methodological and information support. The practical implementation of the proposed measures will improve the quality of budget process management, the formation and development of the system of municipal financial control, increase the efficiency and effectiveness of local governments and other participants in the budget process.

The paper provides a legal description of financial control (with regard to the activities of state bodies) as one of the means and methods of the state's controlling influence on the activities of the public sector in relation to subjects involved in various sectors of the economy. The problematic legal issues that arose during the introduction of martial law in Ukraine regarding the exercise of control over business entities are considered. The most effective means, measures and legislative acts adopted after February 24, 2022 are considered. The state of war made it possible to understand that the issues of increasing the activity of the controlling bodies themselves, namely transparency, accountability and efficiency of their activities, are gaining special relevance. The joint activity of central state authorities, local self-government bodies, control bodies and business entities of state and communal forms of ownership is considered. An effective system of financial control over the management of state (local) resources (public funds, non-current and other assets) and their use is not only a tool for guaranteeing the transparency, accountability and quality of the activities of state authorities, local self-government bodies and business entities, but also essentially an effective mechanism for ensuring the financial stability and security of the country during martial law, achieving the strategic goals of the state, the effectiveness of state policy, improving the quality of life of the population and, in particular, reforming the system of public finance management. Current legislation practically does not regulate the organization of internal (local) and public state financial control, which causes the absence of a unified system of financial control bodies at the level of territorial communities. The following conclusions were made in the paper: financial control is an important factor in increasing the efficiency of economic activity of economic entities (of various branches). And it has been proven that precisely during the war, such control plays a major role in state regulation of the economy. When delimiting the powers of control bodies, one should not forget about their interaction with each other. It is their coordinated work, the introduction of changes in legislation during wartime that can contribute to bringing Ukraine's economy to a much higher level. More than ever, during the war, all bodies must act in a coordinated manner and their actions must be aimed at ensuring the economic growth of individuals and legal entities - entrepreneurs.

Досліджено систему державного фінансового контролю України, проаналізовано його понятійний апарат. Зазначено, що вагомим важелем впливу на ефективність управління бюджетними коштами є контроль як важливий компонент системи управління державними фінансами. Функція контролю в системі управління бюджетними видатками допомагає ефективно здійснювати управління фінансами в межах чинного законодавства. Проте, незважаючи на сформовану законодавчу і нормативно-правову базу, у сфері державного фінансового контролю залишилися питання, які потребують окремого законодавчого врегулювання щодо статусу кожного контролюючого органу з чіткими функціями здійснення аудитів, ревізій, експертних та інших контрольно-аналітичних заходів. Необхідність такого закону продиктована прагненням уникнення дублювання функцій контролюючих органів, підвищення ефективності їх взаємодії, проведення якісних заходів контролю, формування прозорого середовища в бюджетній системі.Акцентовано увагу на відсутності в країні прозорого «економічного поля», яке б унеможливило корупцію, шахрайство, бюджетні порушення. Наведено обсяги бюджетних порушень за результатами аудитів Рахункової палати. Наголошено на необхідності вдосконалення законодавчої, нормативно-правової бази, визначення державою чітких правил ведення економічної діяльності, пошуку надійних економічних важелів, способів та методів боротьби з порушеннями бюджетного законодавства, неефективними управлінням і використанням бюджетних коштів.Обгрунтовано необхідність запровадження аудиту відповідності як важливого інструменту забезпечення дотримання учасниками бюджетного процесу законодавчо визначених норм, правил, процедур щодо ефективності управління та використання бюджетних коштів. Дано визначення трьох основних видів аудитів (фінансового, ефективності та відповідності) за міжнародними стандартами, запропоновано методологічну схему основних рис і принципів аудитів та їх відмінностей, що дасть можливість ідентифікувати кожен окремо.

This study through multiple regression analysis, concentrating on the Ministry of Transportation in Nigeria in conjunction with their corresponding activities examined the effect of public financial management system on public expenditure on transport Infrastructural development in Nigeria. Our results found that public financial management system had positive and significant effect on public expenditure on transport infrastructural development in Nigeria (Adj. R 2 = 0.610, F-statistics (5, 60) = 21.334, p ˂ 0.05). The study concluded that public financial management system affects public expenditure on transport infrastructural development in Nigeria. It was recommended that the Federal Government of Nigeria shouldsustain sound public financial management system in the Ministry of Transportation to enhance transport infrastructural development and ensure that resources meant for transport infrastructural developmentare monitored using public financial management system dimensions.

The theoretical framework of public procurement through the definition of the concept of «ublic procurement»is analyzed, the role of analysis in the public finance management system, the principles of analysis of public procurement and its functions are studied. The article offers to interpret the public procurement as a component of public financial management system that constitutes a standardized mechanism of financial and economic relations between the government and business entities on the implementation of the state order for the goods, services, works on the principles of fair competition among participants, maximum economy and efficiency, the targeted use of budget funds, openness and transparency at all stages of procurement, equality of participants, objective and impartial evaluation of tender proposals, prevention of corruption actions and abuses to achieve the goals of state social and economic policies to meet public needs. The system of analysis principles of public procurement is reasonably presented: accuracy; completeness; adequacy of information; consistency; relevance; usability; specificity; complexity; consistency; regularity; objectivity; efficiency; economic feasibility; comparativeness; scientificity. The functions of the analysis of public procurement are the following: informative, control, evaluative and diagnostic, search, prognostic, protective, scientific and cognitive. The basic tools will make it possible to build a scientifically based mechanism for the analysis of public procurement.

Розглянуто особливості та проведено аналіз діючих стратегій, на основі яких здійснюється управління публічними фінансами в сучасних умовах. Вокремлено проблеми, які пов’язані із розвитком управлінських відносин у сфері публічних фінансів. Обґрунтовано потребу прийняття стратегій, які сприятимуть вдосконаленню управління публічними фінансами на перспективу.

At independence in 1975, the Frelimo government took over public administration from the colonial system and started to transform it. The public financial management (PFM) system was adapted to the central planning and management of the economy in line with nationalist and Marxist-Leninist thinking. Collapse followed in the mid-1980s, amidst the Cold War and the liberalization of the economy.

Public Procurement is an integral part of governments’ fiscal policies aimed at achieving prudent public financial management through its intended effects (indicators). Concerns are that procurement currently does not achieve its intended objective. For this reason, the study examined the intended effects of public procurement on public financial management in Ghana. The objectives of the study are (1) to identify the intended effects of public procurement on prudent public financial management; (2) to identify the effects of implementation of Public Procurement on public financial management; and (3) to identify the challenges associated with procurement process that make it impossible to manage public finance in Ghana prudently. A quantitative research method was adopted for the study, and with a sample size of 68, 68 questionnaires were administered, and 46 were retrieved, indicating a response rate of 67.65%. Data collected was analysed with SPSS, and descriptive statistics were used. The significant findings identified included transparency, planning and budgeting, controls, competition and procurement audit with prudent public financial management. Abuse of the procurement law was seen as an implementation effect of procurement. Mismatched annual procurement plans and budgets, political interference and bureaucracy are the challenges associated with the procurement process. These findings imply that a fundamental problem with the public procurement system needs urgent attention. Effective planning, budgeting, transparency, and controls should be ensured. Anti-corruption measures should be enhanced and promoted in this direction.

The objective of this Public Expenditure&#13;\n and Financial Accountability (PEFA) assessment is to review&#13;\n the current performance of the public financial management&#13;\n (PFM) systems, processes, and institutions of the Amhara&#13;\n regional government since the last assessment in 2015. The&#13;\n assessment is aimed at assisting the government in&#13;\n identifying PFM weaknesses that may inhibit effective&#13;\n delivery of services to its citizens and the realization of&#13;\n its development objectives in general. Furthermore, the&#13;\n findings of the PEFA assessment will assist the government&#13;\n in developing a PFM reform strategy and provide the basis&#13;\n for a coherent PFM reform program that can be supported by&#13;\n development partners (DPs), as well as through the&#13;\n government’s own initiatives. The Amhara regional assessment&#13;\n covered regional government budgeted units, extra-budgetary&#13;\n units (EBUs), the Office of the Regional Auditor General&#13;\n (ORAG), the regional council, Amhara Chamber of Commerce,&#13;\n and public enterprises.

The term “political economy” has become ubiquitous in policy debates on public financial management (PFM) systems and their reform. Yet its definition or what exactly people mean when they use the term often remains unclear. There are many ways in which political economy has been theorized over time (Caporaso and Levine 1992). Some of these are particularly relevant for the purposes of this chapter and, more generally, for discussions around budgeting and the design of institutions devoted to the management of public finances. Broadly, we think of a political economy approach as a particular way of analyzing and interpreting economic phenomena that emphasizes the importance of political factors and vice versa. Its focus is on the different actors involved, their potentially conflicting interests and incentives, and the institutions that regulate their behavior, as well as the incentives that such institutions, in turn, may engender. More narrowly, an approach that is sometimes referred to as “positive political economy” or “political economics” has a formal and quantitative focus. The latter entails the application of methods and approaches from the discipline of economics, building on the tools of rational choice and game theory, to study the interrelationship between politics and economics (Alt and Chrystal 1983).