Strategic Objective 17. Improving our corporate structure and working methods with continuous development approach
Within the framework of Public Financial Management and Control Law No 5018, Municipal Law No 5393 and Metropolitan Municipality Law No 5216, Istanbul Metropolitan Municipality maintains its activities for strategic plan, performance program, performance based investment and service working schedule as well as annual report which includes performance reporting as required by its new public management understanding emphasizing such points as;
•
Reinforcing policy and strategy development capability,•
Developing performance-based budgeting practices with a strategic understanding based upon objectives and targets,•
Enhancing sensitivity to the requirements of people getting service in terms of presentation of public services,•
Developing and extending practices within the scope of accountability principle.Strategic Plan
Istanbul Metropolitan Municipality started 2015 - 2019 Strategic Plan preparations. Project plan was prepared within this scope and brain storming meetings were conducted with the study team of the unit, the expenditure made between the years of 2006-2012 were separated based on the main service areas and trend analysis showing the expenditure years and areas was created.
Performance Program
In 2013 activity period, 2014 Performance Program was approved by IMM Assembly within the scope of Strategic Plan study of 2010-2014 period. Related units were informed about the program during the preparation period of Performance Program of 2014, 'Performance Based Investment and Service Program Preparation Guide' was updated and sent to units.
As a result of the education, meeting and negotiations performed with unit performance representatives, information on the
of units and investment offers were collected on "Investment Tracking System" located in IMM intranet environment and performance certificate of expenditure units were prepared after the related information were completed.
Performance reporting is conducted for the purpose of determining and evaluating to what extent targets specified in the performance program are achieved and of creating background for taking new decisions accordingly. Data constituting input for performance reports are collected and processed electronically. Performance reports are prepared annually and quarterly within a year. Corporate administrative performance report prepared at the end of the year is published together with annual report.
Process Management
Process analysis study of Istanbul Metropolitan Municipality was started in 2006 in pilot office directorates. In 2008 all main processes of IMM were determined by using 'Value Chain Method' and 8 main service area (Disaster Management, Environment Management, Housing Management, City and Urban Order Management, Culture Service Management, Social Support Service Management, Transportation Management) were determined. Process maps, improvement areas and recommendations, performance indicators of Created 8 Main Service Areas were determined and have become a support for preparation of Strategic Plan, Performance Program and Activity Report.
In 2010, "General Management Area" processes which qualify as a support for IMM 8 Main Service Area were analyzed and it was defined under 11 topics such as Project Design and Application Management, Legal Process Management, Financial Resources Management, Information Management, Supply Management, Human Resources Management, Public Relations and Communication Management, Affiliates Management, Foreign Relations Management, Corporate Inspection and Audit, Strategic Management.
IMM Process Analysis Activities have been completed by covering the entire institution by the end of 2011 March and published on the “Institutional Management Portal” on the intranet medium. Areas for improvement were identified as a result of the analyses and such improvements were included in the second Internal Control Action Plan to be monitored subsequent to reporting as project recommendations.
Continuing the process analysis works started for increasing the efficiency and productivity offered services within a system and with the purpose of protecting the up-to-dateness of the processes and for the accountability of IMM processes in terms of administrative and financial ways in accordance with the Law No 5018 and Internal Control legislation; "Process Update Directive" distributed with communiqué no 334 was approved by top director on 29.11.2011 and entered into force. According to this directive, every year regular process updating works and
Kaynak. Mali Hiz
DISTRIBUTION OF RISKS IN TEMPERATURE CHART
Main Risk processes were created and 37 process were deleted and 2013 IBB process updating works were completed and published on IBB Corporate Management Portal.
Preparation of Internal Control Studies Work Analysis Manual
Realized samples of Strategy Development Directorate for the Control Environment Analysis (CEA) defined in IMM with number 57-66 are shared in this
Process cards, procedures, improvement areas, duty lists, sensitive duties, performance indicators for each work within
• Who is responsible for these risks,
• Which actions to be taken
• When the actions to be taken will be completed
corporate risk inventory was created. Corporate risk inventory was consolidated as AHA and GYA bases. Risk Inventory Temperature Map was issued for each AHA, GYA and corporate generality.
Summary information of total 775 risks are provided below:
Table 22
Internal Control Works Analysis Manual, 2013 the scope of Strategy Development Directorate
Resource. Financial Affairs Directorate, 2013
were determined. A part of the outcome obtained by these studies was shared with IMM units. With this manual, Strategy Development directorate aims to fulfill its duty of being a leader in the works stated in internal control activity plan.
Corporate Risk Management Works
In the article of Public Internal Control Standards Communiqué titled “Determination and Evaluation of Risks” it is written that “Organizations need to evaluate the domestic and foreign risks which may prevent the
As it is seen on the table 46% of the stated risks are defined as high. The risks with high probability are around 13%. This analysis shows that units focus on the risks with high effects during the determination of risks.
Graphic 13. Distribution of Risks Based on Levels
realization of objectives and purposes by defining them systematically and it needs to determine the steps to be taken”.
In accordance with this provision, “Creation of Corporate Risk Management Model in Local Administrations and IMM Application” project was started on 15.04.2013 and completed on 31.12.2013 in our Institution.
Within the scope of project supported by Istanbul Development Agency (ISTKA), education towards risk management were provided to the organization and personal trainings with unit
203 Risk awareness and knowledge of the organization on risk management were increased. In this study, risks of the corporate objectives were determined, measured and for the risks which have the highest realization and affect potential;
When we look at the distribution of risk levels, it is seen that the risks defined as high and low have very close percentages.
The risks defined as medium are one and a half times the low and high risks with a rate of 44%.
39
Genel TOPLAM
Table 23
DISTRIBUTION OF RISKS BASED ON AHA GYA
Activity Field Low Medium High TOTAL
Main Service 120 193 109 422
Disaster Management 19 27 19 65
Environment Management 63 61 22 146
Housing Management 4 4 8 16
City and Society Order Management - 7 4 11
Cultural Services Management 1 8 13 22
Health Services Management 14 27 7 48
Social Support Services Management 10 24 8 42
Transportation Services Management 9 35 28 72
General Management 107 152 94 353
Information Services Management 10 13 4 27
Supervision 2 16 10 28
Support Services Management 7 17 12 36
Document and Archive Management 15 18 - 33
Management of Legal Processes 17 5 - 22
Human Resources Management 6 8 13 27
Affiliates Management 10 3 3 16
Decision and Approval Processes 4 12 6 22
Domestic/External Relations Management 2 7 3 12
Financial Resources Management 4 6 4 14
Project Design and Project Application 24 28 23 75
Strategy Development and Planning 1 1 2
Supply Management 6 18 15 39
GRAND TOTAL 227 345 203 775
Management System Resource. Department of Financial Services, 2013
After the completion of analysis and inventory studies, corporate risk management system which will provide the systematical performance and sustainability of the risk analyses based on Main Service and General Management Areas was defined. Defined system, was documented as “Corporate Risk Management System Policy and Procedure.
Creation of Corporate Risk Management Model Senior Management Studies-1,2013
Creation of Corporate Risk Management Model Senior Management Studies-2,2013
Main outcomes created with the study:
• Corporate Risk Management System Procedure,
• Process Flow,
• Organization Chart,
• Used Tools and Reports.
Documents are created in two methods in order to allow them to be adapted to the organization both “short and medium term” and “long term”.
In addition, pilot observation study was conducted within the scope of corporate risk management system. Pilot observation study was realized in Transportation Directorate and within an application project selected in Transportation Main Service Field.
In pilot study, risks were determined, actions plans for each risk were created and actions were observed in meetings performed with regular intervals and observation systematics was formed.
Outcomes/results of the project were shared in a meeting where all district municipalities of Istanbul city gathered and participants' ideas on Corporate Risk Management System were taken.
Internal Control System, Current Status Analysis and Improvement Study
Internal Control System, Current Status Analysis and Improvement Study were conducted in Financial Services Directorate as a pilot study with the purposes of performing the analysis of current status of internal control, analysis of risks to be created by current status and designing applications for the improvement of current internal control and in order to realize the activity package of IMM IKEP 02 (terms of reference, task distribution charts, procedures, sensitive works, process revisions, authorization-approval inquiry).
Internal Control System, Current Status Analysis and Improvement Workshops -1, 2013
Internal Control System, Current Status Analysis and Improvement Workshops -2, 2013
In this respect, in compliance with Internal Control Guide of Ministry of Finance;
•
Processes of Financial Services Directorate were updated,•
73 pieces of duty terms were formed,•
77 sensitive works were determined,•
56 procedures were prepared,•
166 process application (operations) r i s k s were determined and control activities were determined,•
Assignment document for the authority assignment was formed,•
Codes of conduct were formed,•
Internal Control System Observation and Evaluation standards were determined,•
Improvement samples in compliance with the Internal Control Activity Plan were determined,•
Financial Services Directorate Internal Control System Application Book was published,•
Istanbul Metropolitan Municipality Internal Control System Application Guide was prepared.Data Management and Informing Studies
• Activity Information Notes are prepared monthly based on the main service area as a summarized document and to be submitted to Mayor's Office and different management units. District Township Based Activity Information Notes are prepared quarterly by separating the activities and services provided by IMM into townships and submitted to the senior management.
• Information on the activity studies during the year, investments, service areas and organization structure of Istanbul Metropolitan Municipality are submitted to the Governorship every six months under the title of 'Briefing Report'. In the same report, the problems arising from the task relation of our Municipality with the central government and their resolution recommendations are found.
Representatives of our municipality participate to City Coordination Board studies held every three month by the Governorship and we discuss the cooperation and problems related with our assignment with organizations and institutions located in Istanbul and reports on the conclusions are submitted to the Governorship.
Collaboration Activities with Universities
Project on Supporting Academic Researches known as “My Project: Istanbul” was initiated within the framework of protocols signed between the universities in Istanbul and IMM in 2006 for the purpose of producing solutions for problems experienced in the areas of responsibility and authority of IMM and contributing to enhancing life quality of Istanbul. The number of project supported until the end of 2013 is 188. 6 of the projects were finalized in 2013 and a total of 143 supported projects have been finalized.
41
REPAYMENT OF DOMESTIC AND FOREIGN DEBT OF 2013 REPAYMENT OF DOMESTIC AND FOREIGN DEBT OF 2013 (TL)
CAPITAL INTEREST TOTAL
DOMESTIC DEBT 146.688.422 31.707.149 178.395.571
FOREIGN DEBT 575.291.057 97.111.451 672.402.508
TOTAL 721.979.479 128.818.600 850.798.079
ISTANBUL METROPOLITAN MUNICIPALITY 2013 FINANCE ECONOMIC CLASSIFICATION
31.12.2013
Strategic Objective 09. Managing Project Designing and Implementing Processes in Our Main Functions Efficiently and Effectively
Performance Based Investment and Service Program Performance Based Investment and Service Program is prepared with the purpose of programming and monitoring the investments and the services planned to be conducted by the units within the year by utilizing public resources effectively, efficiently and in compliance with the budget in a coordinated manner in line with the priorities of the citizens and by taking the Development Plan, the Medium-Term Plan and the regional plans into consideration.
Investment and service proposals submitted by district
municipalities and Istanbul Metropolitan Municipality units were subjected to detailed examination and evaluation by pursuing to contribute the realization of strategic objectives and targets in 2010-2014 Strategic Plan on maximum level and enabling performance based budgeting; Performance Based 2014 Investment and Service Program was prepared and approved by Istanbul Metropolitan Municipal Assembly.
MANAGEMENT OF FINANCIAL RESOURCES
Economic Table of Deficit/Surplus Finance
Revenue Budget of Istanbul Metropolitan Municipality is 7,200,000,000 TL and Expenditure Budget is determined as 8,000,000,000 TL in 2013. The from domestic banks and external debt of 1.016.399.349 from international financing organizations was estimated in 2013.
However, a total utilization of 382.191.639 TL including no internal debt from domestic banks and external debt of 382,191,639 TL from international financing organizations was realized.
Additionally, a total capital repayment of 761.399.349 TL including internal capital repayment of 199.872.251 TL to domestic banks and external capital repayment of 561.527.098 TL to various international banks was planned to be made. However, a total capital repayment of 721,979,479 TL including internal capital repayment of 146,688,422 TL to banks and external capital repayment of 575.291.057 TL was made.
Loan Stock and Payments for Loans
A total amount of internal and external loans for credits used from internal and external financing sources for projects conducted and in progress by Istanbul Metropolitan Municipality is 5.195.313.802 TL as of 31 December 2013.
377.823.719 TL of this amount consists of internal loans with a term of 2018 to Domestic Banks and Provincial Banks, while 4,817,490,083 TL consists of external loans with a term of 2028.
A total payment of 721.979.479 TL was made for internal and external loans in 2013. A total of 178.395.571 TL of this amount is internal loan including the capital of 146.688.422 TL and its interest of 31.707.149 TL; while a total of 672.402.508 TL of this amount is external loan including the capital of 575.91.057 TL and its interest of 97.111.451 TL.
Table 25
Resource. Department of Financial Services, 2013
Credit Obtaining Activities
In 2013, 47.000.000 USD and 113.361.303 EUR external loan was used from the signed credit contracts and these loans will be repaid until the end of 2028.
In 2013, a credit agreement of 57.664.600 USD was concluded