MÜDEK Regulations on Budget and Financial Affairs
(Amended Version 1.1 at the General Assembly on March 30, 2013)
ARTICLE 1 Basis, Purpose and Scope
These regulations are issued on the basis of Articles 15i and 15j of the Charter of the Association for Evaluation and Accreditation of Engineering Programs (MÜDEK).
The purpose of these regulations is to set forth the primary principles related to planning, coordination and auditing of the annual budget, recording and auditing of assets, receivables and liabilities, revenues and expenses in all units of the Association for Evaluation and Accreditation of Engineering Programs (MÜDEK) throughout the operating fiscal period.
These regulations covers financial operations, preparation and implementation of budget and accounting transactions of MÜDEK. MÜDEK financial transactions are executed according to the provisions of these regulations.
ARTICLE 2 Definitions and Abbreviations
The following terms and abbreviations used in these regulations shall have the following definitions:
- MÜDEK stands for Association for Evaluation and Accreditation of Engineering Programs.
- General Assembly stands for MÜDEK General Assembly,
- Executive Board stands for MÜDEK Executive Board.
- Secretary General stands for MÜDEK Secretary General.
- Treasurer stands for the member of the Executive Board who undertakes the task of treasurer.
- MÜDEK Enterprise stands for the Economic Enterprise of Association for Evaluation and Accreditation of Engineering Programs.
- Enterprise Manager stands for the manager of the Economic Enterprise of Association for Evaluation and Accreditation of Engineering Programs.
- Association Budget stands for the budget of the Association for Evaluation and Accreditation of Engineering Programs.
- MÜDEK Enterprise Budget stands for the budget of the Economic Enterprise of Association for Evaluation and Accreditation of Engineering Programs.
- MÜDEK Budget stands for the consolidated budget of the Association Budget and MÜDEK Enterprise Budget.
ARTICLE 3 Budget
3.1 MÜDEK Budget
MÜDEK Budget consists of two separate parts; MÜDEK Association Budget and MÜDEK Enterprise Budget. MÜDEK Budget is formed by consolidation of the MÜDEK Association Budget and MÜDEK Enterprise Budget.
3.2 Budget Period
MÜDEK budget period is 1 year, covering the period between 1 January and 31 December. MÜDEK Budget enters into force as of 1 January upon the approval of the General Assembly held to be convened in the relevant year. Expense transactions can be done in order to cover the expenses during the period between the effective date of the budget and the date of approval of the budget by the General Assembly, provided that the amount spent in each month does not exceed the 1/12 of the actual budget of the previous period. Those expenses carried over from the previous year that were budgeted in the previous year will not be subject to this limitation. However, such expenses are submitted to the General Assembly together with the finalized account reports. Revenues are collected without any such proportional limitation.
3.3 Finance Committee
Finance Committee is made up of three members, Treasurer, Secretary General and a third member to be designated by the Executive Board and chaired by the Treasurer.
Finance Committee is responsible for the following tasks:
- Preparing the annual MÜDEK budget and submitting it to the Executive Board.
- Evaluating the budget performance for the completed budget period and reporting the evaluation results to the Executive Board.
- Preparing the three-year, long-term budget estimations of MÜDEK and updating these on an annual basis.
3.4 Preparation of the Budget
MÜDEK budget will be prepared within the framework of the following basic rules:
- In every December, Finance Committee prepares the draft budget for the next year and budget estimates for the further following two years and submits them to the Executive Board.
- The revenues and expenses foreseen in the MÜDEK Budget are calculated according to the activities assumed by the boards and committees of MÜDEK for that budget year and the estimated price indices of that year.
- In the draft budget, it is essential to plan transfer of a fund equivalent to 30% of total expenses in that year to the following year as operational capital.
- Budget items will be issued according to the accounting codes recommended by the Finance Committee and approved by the Executive Board. Accounting codes will be prepared by the Finance Committee and can be changed upon approval of the Executive Board, as necessary.
3.5 Approval of the Budget
MÜDEK Budget prepared by the Finance Committee and accepted by the Executive Board is submitted to the members of the General Assembly by the Secretary General for discussion during the ordinary General Assembly meeting. MÜDEK Budget enters into force following the approval by the General Assembly, excepting the provisions of Article 3.2.
3.6 Implementation of the Budget
- The Executive Board is authorized and responsible for realization of the revenues in the budget and keeping the expenses within the determined limits. The expenses are made upon approval of two Executive Board members who are authorized to sign, one being the Chairman of the Executive Board or the Treasurer. The Executive Board may authorize, as necessary, any personnel of the Association and/or MÜDEK Enterprise to make expenditures, provided that such authority will be limited to a certain amount. The details regarding the names and spending limits of such persons are recorded in the resolution book of the Executive Board.
- No spending may take place from a budget item with insufficient funds without a transfer of the necessary funds. The Executive Board is authorized to transfer funds from the unexpected expenses item of the budget to other expense items of the budget in case of a need. The reason and amount of the transfer are determined by a decision of the Executive Board and are recorded in the resolution book.
- In cases where an expense need cannot be met despite a fund transfer from the unexpected expenses budget item, spending may take place upon the decision of the Executive Board that such expense shall be covered by the budget savings measures. Such overspending is submitted to the approval of the General Assembly during the next period.
3.7. Budget Reports
- MÜDEK Budget approved by the General Assembly and the revenues and expenses realized each month will be monitored by the Finance Committee through comparison tables and will be evaluated for the quarters of January-March, April-June, July-September and October-December for reporting to the Executive Board. The periodical reports issued by the Finance Committee are evaluated by the Executive Board and necessary measures are taken.
- Finance Committee compares the actual expenses and revenues with the figures estimated in the budget at the end of each budget period and issues a final account report and submits to the Executive Board. The final account report is submitted by the Executive Board to the General Assembly.
ARTICLE 4 Accounting
4.1 Accounting Organization
- MÜDEK Association and MÜDEK Enterprise accounts are separately recorded, as per the relevant legislations.
- In recognition of revenues and expenses, the account plan prepared in compliance with the relevant legislations, MÜDEK activities and budget order is applied. Excepting the changes in sub-accounts required by daily transactions, authority for changes in the account plan remains with the Executive Board.
- Accounting records are maintained by an Accounting Office registered with the Istanbul Chamber of Certified Public Accountants. The Accounting Office retained for accounting management services is determined by the decision of the Executive Board.
4.2 Power and Responsibility in Accounting Transactions
- Secretary General and MÜDEK Enterprise Managers are responsible for making sure that accounting transactions of MÜDEK Association and MÜDEK Enterprise are conducted according to respective legal procedures and that the books stipulated by MÜDEK Charter and the applicable laws are kept regularly and are approved within the time periods stipulated in law.
- Accounting slips, expense reports and account balances are signed by the Treasurer or the Association and MÜDEK Enterprise staff members who are authorized for expenditures under the provisions of Article 3.6(a), after control of the transaction. No payment is made for the slips which are not signed by the authorized persons. If any such payment is made, all losses incurred by the Association will be reimbursed by the persons who made such a payment.
- The Treasurer, on behalf of the Executive Board, continuously controls the accounting actions and transactions by continuously reviewing and monitoring the accounting process and the books of the Association and MÜDEK Enterprise and informs the Accounting Office, Enterprise Manager, Finance Committee or the Executive Board, as appropriate, on any shortcomings or defects observed.
4.3 Safekeeping of Accounting Records
All accounting records are maintained in compliance with the applicable laws and regulations.
ARTICLE 5 Cash Management and Management of Funds
- It is essential that monetary transactions related to MÜDEK Association and MÜDEK Enterprise are made through bank transfers.
- The amount of petty-cash funds that can be kept at the Association and MÜDEK Enterprise will be determined periodically by the Executive Board.
- The Executive Board is responsible to make the best use of the funds in MÜDEK's bank accounts in line with the purpose and principles of MÜDEK./li>
ARTICLE 6 Internal and External Audit
Internal and external audits are performed and conducted according to the rules set out in MÜDEK Charter.
ARTICLE 7 Transparency and Disclosure
The annual budget and the financial report for the completed period approved by the General Assembly are published on MÜDEK webpage along with the General Assembly minutes.
ARTICLE 8 Amendments to the Regulations
- Any proposals for amendments on these regulations and proposals for their effective dates are submitted by the Executive Board to the General Assembly. Any revisions to the regulations also requiring an amendment in the Charter are submitted to the General Assembly together with the proposal for amendment in the Charter.
- The proposals for amendments to the regulations prepared by the Executive Board are included in the agenda of the first meeting of the General Assembly for resolution.
ARTICLE 9 Enforcement
These regulations enters into force as of the date of approval by the General Assembly.
ARTICLE 10 Execution
The provisions of these regulations are executed by the Chairman of the Executive Board.