The Court of Accounts is tired of repeating itself: SGK has been keeping its accounting incorrectly for 12 years

Hikmet Eren ÇELENK 12punto.com.tr

The 2022 Social Security Institution (SGK) report by the Court of Accounts drew attention to the 'Failure to Fully and Accurately Reflect Financial Transactions Regarding Deferrals and Installments in Accounting Records.' The fact that the SGK keeps its accounting records incorrectly took its place as the primary finding.

12punto examined the SGK reports published by the Court of Accounts over the last 12 years. As a result of the research, it was revealed that almost every report published by the Court of Accounts mentions the problems experienced in SGK's accounting.

The accounting system, which the Court of Accounts has been saying needs to be corrected for years, was reported again in 2022 with the same recommendation; according to the report, despite the years that have passed, the SGK accounting system has failed to meet the requirements specified in the Court of Accounts report.

Prof. Dr. Hakan Yılmaz, who examined the SGK reports published by the Court of Accounts, provided an evaluation to 12punto.

'IT DOES NOT INTEGRATE THE DATA IT EXTRACTS INTO THE SYSTEM'

Regarding the incomplete entry of accounting records into the SGK's Financial Automation System (MOSİP), Prof. Dr. Hakan Yılmaz said:

“What is said in the Court of Accounts' SGK report is this: you cannot accrue your receivables correctly. You cannot produce information correctly from the systems you have. The reports you disclose are not complete and accurate reports. It does not integrate the information it extracts from systems like MOSİP into the system later.”

'ACCOUNTING PROBLEMS HAVE BEEN MENTIONED IN COURT OF ACCOUNTS REPORTS FOR 12 YEARS'

Stating that the problems experienced in SGK's accounting have been included in Court of Accounts reports from 2012 to the present, Hakan Yılmaz continued as follows:

“SGK has different accounting systems and programs it follows. Because it does not accrue the information coming from them correctly, it reports incomplete information. At the end of the day, it appears to have 700 billion in receivables in 2023. This might be 800 billion or even more. The Court of Accounts says these are not accurate figures. This is the most striking part of the report. The Court of Accounts has tried to write about this situation as much as it can. You will see similar things in Court of Accounts reports from 2012 to today.”

Here is the 2012 Court of Accounts report:

'THERE IS NO EXPLANATION IN THE SGK ACTIVITY REPORT'

Stating that the SGK does not publish activity reports regarding receivables, Hakan Yılmaz said, “The interesting thing here is this: there is no explanation in the SGK's activity report. There are no explanations regarding receivables, there are no evaluations. This is a huge amount of money. Why can't you collect this? The Court of Accounts constantly tells you to fix your accounting system, your information is not accurate. Why do unions and NGOs remain so indifferent to this issue? This is a public receivable,” he expressed.

'IT HAS NOT DISCLOSED THE DEBTS IT IS REQUIRED TO DISCLOSE SINCE 2015'

In response to the question regarding the fact that the SGK accounting system still has not improved despite the Court of Accounts reporting the deficiencies in the accounting system for years, Hakan Yılmaz replied:

“SGK is a very large institution. A large institution needs to handle this issue much more meticulously. It needs to make its software and accounting systems suitable for these accounts. According to the Social Security Institution Law, the SGK is required to disclose debts above a certain limit. These disclosures have not been made since 2015. Merit-based appointments need to be made. The Court of Accounts has been writing for the last ten years that you need to fix your accounting system. Why are you not making the necessary investments? Why are you not keeping your accounting and financial reports in a way that reflects accurate information? This is public money, the people's money, and the public does not have full information about how much the receivable is. A significant portion of the debt belongs to firms in the market.”

'THE INSTITUTION SHOULD NOT ACCUMULATE THIS MUCH DEBT'

Stating that the debts related to SGK's receivables should not be allowed to accumulate this much legally, Hakan Yılmaz said, “SGK is one of the most important institutions of this country, the guarantee of our future. We have to take good care of this institution. In a country, social security is as important as national defense. People's hopes for the future are related to social security. There shouldn't be such a large receivable. This means you cannot collect your receivables. Legally, there is the 'Law on the Collection of Public Receivables.' Legally, the institution should not accumulate this much debt. There is a management problem here,” he said.

'THE MAJORITY OF THE DEBT IS TO THE MARKET'

Touching upon the issue of 'municipalities' SGK debts', which came to the agenda with the call of President Recep Tayyip Erdoğan, Hakan Yılmaz stated that the majority of the debts are to the market and said:

“Only the statements of the municipalities were brought to the agenda, but the largest share here is capital receivables. The market's debt is ten times the debt of the municipality. These are the debts of firms and companies.”

News Source: 12punto

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