Internal Control
System

1. Introduction
The internal control system is no longer an optional management choice but a legal obligation. However, this obligation should not be regarded as a burden for municipalities; rather, it presents an opportunity to achieve institutional maturity, transparency, and accountability.

The frequent observations in Court of Accounts (Sayıştay) audit reports stating that “an internal control system has not been established” actually point to structural issues such as resource waste, process inefficiencies, and lack of managerial insight arising from the absence of a proper system. These weaknesses not only hinder the efficient use of public resources but may also expose municipal administrations to unnecessary responsibilities.

This project aims not only to ensure legal compliance but also to help municipalities enhance their management quality, increase staff awareness, and develop service processes that improve citizen satisfaction.
The internal control system is not about asking, “What should I avoid doing?” but rather, “How can I do it better?”

With this understanding, the Association of Local Authorities, operating under public benefit status since 2006, has the authority to provide municipalities with non-tendered, rapid, and legally compliant support.

2. Association of Local Authorities

• Year of Establishment: 2006

• Status: Association with Public Benefit Status (approved by the Presidency of the Republic of Türkiye)

• Experience: 18 years of continuous training, consultancy, and project development for municipalities

• References: Collaborations with hundreds of local administrations across Türkiye

• Expert Team: Professionals specialized in law, finance, internal auditing, administrative processes, and digital governance

3. Legal Basis: Article 75 of the Municipal Law
According to Article 75 of the Municipal Law No. 5393:

“Municipalities may carry out joint service projects with associations and foundations operating for the public benefit and may allocate resources for this purpose.”

Under this provision, municipalities can implement the Internal Control System Establishment Project in cooperation with the Association of Local Authorities as a Joint Service Project, without the need for a tender process.

Note: This regulation is outside the scope of the Public Procurement Law No. 4734.
A simple decision by the municipal council is sufficient to initiate the project.

4. Project Objective
This project aims to:

• Establish a legally compliant internal control system ready for Court of Accounts (Sayıştay) audits,

• Prevent resource waste through risk analysis and control activities,

• Embed the principles of transparency, accountability, and good governance,

• Increase internal control awareness among municipal staff,

• Avoid negative findings in future audits.

The goal is to build an applicable, sustainable internal control system that is embraced by personnel and integrated into the institution’s operations.

5. Deliverables to the Municipality
The following documents will be delivered to the municipality within the scope of the project:

• Internal Control Policy Document

• Internal Control Directive

• Risk Analysis Report and Matrix

• Control Activities Manual

• Delegation of Authority and Responsibility Chart

• Internal Control Awareness Training Presentations + Certificates of Participation

• Final Project Report

• Court of Accounts (Sayıştay) Readiness Checklist

All documents will be prepared in compliance with the official municipal correspondence format, and organized for efficient use and archiving.