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FOUNDATION LEGISLATIONS

Foundation Legislations

Saturday, 27th Sep. 2008

     Official Gazette

Issue : 27010

     REGULATIONS

     From the Directorate General of Foundations:

THE REGULATIONS FOR FOUNDATIONS

PART ONE

      General Provisions

SECTION ONE

      Objective, Scope, Grounds and Definitions

                Objective and scope

                ARTICLE 1 - (1) These Regulations are drafted to regulate procedures and guidelines for the organization, management, activities and the auditing of new foundations as well as the duties, powers and responsibilities of the Foundations Council, the Guidance and Inspection Presidency, Foundation Experts and Assistant Experts.               

                Grounds         

                ARTICLE 2 - (1) These Regulations are issued basing on the Foundations Law no. 5737 of 20/2/2008.               

                Definitions

                ARTICLE 3 - (1) In these Regulations, the following terms shall have the meaning as defined against them below:

      a) Property shall mean a movable property and immovable property that shall have to be utilized in an income-earning way to carry out the foundation's objectives and activities,

      b) Office of the Chief of Staff shall mean the Office of the Chief of Staff of the Bezm-i Âlem Valide Sultan Endowed Hospital for the Poor and Destitute,

      c) Declaration 1936 shall mean the declaration furnished by Community foundations under the abolished Foundations Law no. 2762,

      ç) Regional Directorate shall mean any Regional Directorate of the Foundations,

      d) Community foundation shall mean a foundation belonging to non-Muslim communities whose members are citizens of the Republic of Turkey and who gained the status of a legal entity under the abolished Foundations Law no. 2762 disregarding whether they had a deed of trust,

      e) Tradesmen's foundation shall mean a foundation that was established prior to the effective date of the abolished Foundations Law no. 2762 and is managed by a management board elected by the tradesmen,

      f) Surplus income shall mean an amount of income in registered foundations and annexed foundations remaining after the repair of charities and properties and the carrying out of charity services under their deed of trust,

      g) Destitute one shall mean a person who is both lonely and poor,

      ğ) Director General shall mean the Foundations Director General,

      h) Directorate General or the Controlling Authority shall mean the Directorate General of Foundations,

      ı) Hospital shall mean any health institution attached to the Directorate General of Foundations,

      i) Charity shall mean goods or services offered to the society for free use, directly by registered, annexed, Community and tradesmen's foundations as well as new foundations,

      j) Hire-out charity shall mean a real-estate charity that is hired for an indefinite period of time in consideration of a cash price close to its value plus an annual rental,

      k) Provisional sum shall mean an allowance that is separated from the foundation's gross income for the repair of the foundation's properties and charities,

      l) Usufruct shall mean the surplus income and rights in registered and annexed foundations that are left to relevant persons according to the conditions of their charter,

      m) Law shall mean the Foundations Law no. 5737 of 20/2/2008,

      n) Registered foundation shall mean a foundation that is managed and represented by the Directorate General under the Law and a foundation that was established prior to the effective date of the abolished Turkish Civil Code no. 743 and is managed by the Directorate General of Foundations under the abolished Foundations Law no. 2762,

      o) Council shall mean the Foundations Council,

      ö) Combined endowment shall mean a real-estate charity endowed, whose ground belongs to a foundation and any buildings and trees whereon belong to the enjoyer and the rental of which is collected annually,

      p) Inspector shall mean any of the chief inspectors, inspectors and authorized assistant inspectors who are appointed in the Directorate General of Foundations,

      r) Annexed foundation shall mean a foundation that was established prior to the effective date of the abolished Turkish Civil Code no. 743 and is managed by those who descend from endowers,

      s) Branch office shall mean a sub-unit having organs in it, that has no legal entity and is opened as attached to a new foundation for the execution of the foundation's activities,

      ş) Concession price shall mean a price paid for the abandonment of a combined or hire-out real estate to free possession,

      t) Representation office shall mean a sub-unit with no organs in it, that has no legal entity and is opened as attached to a new foundation for the execution of the foundation's activities,

      u) Charter shall mean a document relating to the patrimony, endowment conditions and endower's requirements of a registered, annexed or Community foundation,

      ü) Foundations shall mean registered, annexed, Community and tradesmen's foundations as well as new foundations,

      v) Foundation's cultural assets shall mean assets defined as cultural assets under article 3 of the Cultural and Natural Assets Preservation Law no. 2863 of 21/7/1983, which belong to the Directorate General of Foundations or the foundations administered and represented thereby,

      y) Deed of trust shall mean a document relating to a foundation established under the abolished Turkish Civil Code no. 743 or the Turkish Civil Code no. 4721 of 22/11/2001 that includes the name, objective and the goods and rights reserved therefor, the organization, management and location of the foundation,

      z) Foundation manager shall mean a person who is authorized to manage and represent an annexed, Community or tradesmen's foundation or a new foundation or who is appointed in a competent organ therein under the charter, the Declaration 1936, the deed of trust, the Turkish Civil Code no. 4721 and the Law,

      aa) Foundation management shall mean an organ that is authorized to manage and represent an annexed, Community or tradesmen's foundation or a new foundation under the charter, the Declaration 1936, the deed of trust, the Turkish Civil Code no. 4721 and the Law,

      bb) New foundation shall mean a foundation established under the abolished Turkish Civil Code no. 743 and the Turkish Civil Code. no. 4721      

 

 

PART TWO

      The Regulations for Foundations

SECTION ONE

      Establishment, Management of and Other Regulations for New Foundations

          Establishment

                ARTICLE 4 - (1) An intention to establish a new foundation shall be declared through a notarized formal deed or a testamentary disposition. A foundation shall gain the status of legal entity with registration in the register maintained with the court of the home settlement.

          Establishment through formal deed

                ARTICLE 5 - (1) An intention to establish a foundation by a real or legal person shall be declared by a notarized formal deed. The notary will send a copy of the formal deed to the Directorate General within seven days.

      (2) Application to the court shall be made by the endower after the execution of the formal deed. If the establishment of a foundation through a formal deed is to be done by a representative, the authority to represent shall have to be granted through a notarized certificate of representation and such certificate shall have to specify the foundation's objective and the goods and rights to be allocated therefor. If the founders include a legal person, the articles of association thereof incorporating provisions to the effect that such legal entity can establish a foundation and allocate assets thereto or a resolution by an authorized organ to the same effect shall also be furnished to the court with the deed of trust.

      (3) If in a foundation established through a formal deed the endower dies, one of the heirs thereof can request registration. If no request of registration has been made by the endower within three months of the execution of the deed of trust or by one of the heirs in the case if the endower has died or if the endower was a legal entity and such legal entity has terminated within such period of time, application for the registration of the foundation shall be made by the Directorate General. Expenses to be made upon application to the competent court shall be borne by the Directorate General for the recovery thereof from the respective foundation thereafter.

          Establishment through testamentary disposition

                ARTICLE 6 - (1) A foundation through testamentary disposition can be established for registration after the death of the endower. In relation to foundations established this way, the justice of the peace will send a copy of the document for the establishment of the foundation to the Directorate General within seven days.

      (2) For foundations established through testamentary disposition, application to the court shall be made upon statement by the respective person or the justice of the peace or by the Directorate General of its own motion. Expenses to be made upon application to the competent court shall be borne by the Directorate General for the recovery thereof from the respective foundation thereafter.

      (3) Liability of a foundation established by testamentary disposition for the inheritor's debts shall be limited to the goods and rights allocated. The rights of litigation of the heirs and creditors of the endower shall be reserved in accordance with the provisions for donation and testamentary dispositions.

          Registration and court procedures

                ARTICLE 7 - (1) The court will decide for the registration of a foundation by obtaining the Directorate General's opinion on the file, hearing the endower if necessary and having an expert's examination made.

      (2) The court will take necessary measures for the protection of goods and rights of its own motion.

      (3) The Court will serve its decision for registration or rejection of registration to the Directorate General with the formal deed of its own motion.

      (4) A foundation acquiring the status of legal entity shall be registered in the register maintained with the court of the home settlement, which register shall show the name of the endower and the endowment, the foundation's settlement, organs, objective and the goods and rights allocated for hat objective.

      (5) If the decision for registration has been made by another court, it shall be sent to the court of the foundation's home settlement for registration, with relevant documents.

          Appeal and annulment

                ARTICLE 8 - (1) Against any decisions of the court for the registration of the foundation or for the rejection thereof, the applicant or the Directorate Generate can file an appeal from the decision within one month of the date of service.

      (2) If some reasons that obstacle the establishment of a foundation exist, the Directorate General or any relevant person can bring a suit of nullity against it.

          Registration in the central register and announcement

                ARTICLE 9 - (1) Upon a statement by the court of the home settlement, the foundation shall be registered in the central register maintained at the Directorate General.

      (2) Registration of the foundation in the central register shall be announced in the Official Gazette. Such announcement shall indicate the name of the endower and the foundation, the foundation's home settlement, objective, goods and rights, the title deed information of real estates, if any, and the foundation's organs and the number and date of the deed of trust as well as the number and date and the issuing court of the decision for registration. Any expenses to be made for such announcement shall be borne by the Directorate General for the recovery thereof from the foundation thereafter.

          Shortcomings

                ARTICLE 10 - (1) If the deed of trust sufficiently specifies the foundation's objective and the goods and rights allocated therefor, other shortcomings shall not entail the rejection of an application for the vesting of the foundation with the status of a legal entity.

      (2) Such shortcomings can be caused by the court to be rectified prior to the decision making for registration, or by the court of the home settlement upon an application of the controlling authority after the establishment and by taking, if so possible to do, the endower's opinion therefor.

      (3) If the goods and rights allocated to a foundation the registration of which is requested, through testamentary disposition are not sufficient enough for the accomplishment of the foundation's objective, and unless an otherwise intention is declared by the endower, these goods and rights shall be allocated to a foundation having a similar objective, by taking the controlling authority's opinion therefor.

          Passing of allocated goods and rights to a foundation

                ARTICLE 11 - (1) With the acquisition of the status of legal entity, the ownership of goods and rights allocated to a foundation shall pass to the foundation.

          Registration of real estates in the real estate register

                ARTICLE 12 - (1) The court deciding for a registration will advise the real estate registration office with a copy of the deed of trust to register the endowed real estate in the name of the legal entity of foundation.

      (2) Upon such advice, the real estate registration office will make the registration in the name of the foundation. Foundation managers shall be responsible for such registration.

          Management of new foundations

                ARTICLE 13 - (1) The management organ of new foundations shall be composed according to the deed of trust. A majority of the managers shall have to be resident in Turkey.

      (2) If any vacancy occurs in any organ of a foundation due to death, resignation or any other reason, such vacancy shall be filled according to the provisions of the deed of trust. If no applicable provision exists in the deed of trust, such vacancy shall be removed firstly by making a change of the deed of trust. If, however,

      a) the quorum for decision-making is not provided for a change of the deed of trust due to  vacancies in the organ authorized for such change,

      b) no organ authorized for a change of the deed of trust exists or no member thereof has remained,

      c) the quorum for decision-making is not provided due to vacancies in the organ authorized for execution,

      then application shall be filed with the court with (a) the decision made by the organ authorized for a change of the deed of trust without regard to the quorum for decision making, (b) the decision made by the organ authorized for execution, and (c) the decision made without regard to the quorum for decision making, respectively as above.

      (3) Subsequent to a decision by the court, necessary changes will be made to the deed of trust for the filling of vacancies in the respective organ.

          Change of the form of administration

                ARTICLE 14 - (1) If justified reasons exist and upon a request by the foundation's management organ or Directorate General, the court can change the organization, management and functioning of the foundation after taking the former's opinion in writing therefor.

      (2) In foundations established to aid employees and workers, any changes to the provisions of the deed of trust relating to the conditions for beneficiaries to benefit from the foundation and their participation in the administration will be decided by the court upon a resolution of the organ authorized to such effect under the deed of trust and by taking the Directorate General's opinion in writing therefor.

      (3) Any change to the deed of trust of any foundation established under article 468 of the Turkish Commercial Code which is subject to article 20 of the Social Insurances Law no. 506 will be decided by the court of the home settlement by taking the Directorate General's opinion in writing therefor following an affirmative opinion of the Ministry of Labor and Social Security.

          Change of address and foundation managers

                ARTICLE 15 - (1) Any change of address within the same settlement that does not require a change to the deed of trust must be stated to the regional directorate within 15 days of the date of such change and any change to the names and notification addresses of the members of the management organ, within 15 days of the date of election thereof.

          Utilization of foundation's assets

                ARTICLE 16 - (1) Foundations shall utilize their assets by observing economic rules and risks and invest their moneys in banks founded in Turkey.

          Opening of branch offices and representation offices by new foundations

                ARTICLE 17 - (1) New foundations can open branch offices or representation offices to accomplish their goals provided that their charter must include a provision to such end. Prior to the opening of a branch office or representation office subsequent to a decision made therefor by their authorized organ, they shall have to provide and electronically transmit the declaration in Annex 1 to the regional directorate in the jurisdiction of which the foundation's head office is located. In the event if a branch office or representation office is closed by the foundation, this shall be stated to the regional directorate within 30 days, following the same procedure.

      (2) Managers appointed to a branch office or representation office must not have been convicted of any of the crimes set forth in article 9 of the Law and a majority of them must be resident in Turkey.

          Representation by a branch or representation office and their working procedures

                ARTICLE 18 - (1) Branch and representation offices carry out their activities in the name of the parent foundation and represent the same in the place where they are located.

      (2) Working procedures and guidelines for branch and representation offices are regulated by the foundation's head office.

      (3) Branch and representation offices:

      a) shall carry out activities according to the deed of trust and the legislation to contribute to the accomplishment of the foundation's objective;

      b) shall correspond with the Directorate General through the head office.

          Termination of a foundation

                ARTICLE 19 - (1) If the objective of a foundation becomes impossible to attain and if it is not possible to make a change to the same, then such foundation shall spontaneously terminate. If in the management organ's or the Directorate General's opinion, the foundation's objective has become impossible to accomplish, either body shall file an application with the court for the registration of the situation in the court register as such. The court will decide on the request for the dissolution of the foundation or the composition of a liquidation board, after taking the Directorate General's opinion or the management organ's opinion, as the case may be, and will register the decision for dissolution in the register. The terminated foundation's entity and capacity shall continue during liquidation, though limited to liquidation.

          Dissolution of a foundation

                ARTICLE 20 - (1) If the objective of a foundation is included under the last paragraph of article 101 of the Turkish Civil Code, an application shall be made to the competent basic civil court by the Directorate General for the dissolution of the foundation.

          Announcement of the termination of a foundation

                ARTICLE 21 - (1) Termination of a foundation shall be registered in the central register and announced in the Official Gazette by the Directorate General.

          Goods and rights of a new foundation terminated or dissolved

                ARTICLE 22 - (1) Any goods and rights remaining after the liquidation of the debts of a terminated new foundation shall be transferred to a foundation having a similar objective subject to a court decision according to the provisions of the deed of trust or if no specific provision exists in the deed of trust, by taking the Directorate General's opinion and the opinion of the foundation to which such transfer is to be made and any goods and rights remaining after the liquidation of the debts of a dissolved new foundation shall be transferred to the Directorate General.

 

 

SECTION TWO

      Managers of an Annexed Foundation and their Responsibilities

          Managers of an annexed foundation

                ARTICLE 23 - (1) Annexed foundations shall be managed and represented by managers appointed by the Council according to the conditions of charter. Until those persons not eligible for managing under the charter will have become so eligible, the under-age or prodigal persons will have acquired their capacity of act or a vacancy, if any, will have been replaced, the foundation's business shall be carried out in representation by the Directorate General.

          Requirements sought for managers

                ARTICLE 24 - (1) The following requirements shall be sought for persons to be appointed a manager:

      a) To have the capacity to exercise civil rights,

      b) To have completed a primary school as a minimum,

      c) To have not been convicted of any of the crimes set forth in article 9 of the Law.

          Documents and application for appointment as a manager

                ARTICLE 25 - (1) Persons desiring to be appointed as a manager shall apply to the regional directorate with their petition accompanied by the documents set forth below.

      a) A finalized court decision issued by the competent basic civil court for qualification for a manager according to the conditions of charter,

      b) Certificate of education,

      c) Record of convictions,

      ç) Health report.

      (2) The regional directorate shall send the application and the enclosure to the Directorate General, which shall make the necessary examination and create of dossier, which dossier shall be submitted to the Council for appointment.

      (3) If there are multiple requests for manager, the Council shall make its decision by taking into consideration firstly the conditions of charter and then the order of generations, the foundation's capacity for business and operations, the level of education and settlement of candidates.

          Requirements sought for assistant managers

                ARTICLE 26 - (1) Managers can assign to them assistants who must satisfy the following conditions and shall state them to the regional directorate for communication to the Directorate General.

      a) To be resident in Turkey,

      b) To have the capacity to exercise civil rights,

      c) To have completed a primary school as a minimum,

      ç) To have not been convicted of any of the crimes set forth in article 9 of the Law.

          Duties and responsibilities of managers

                ARTICLE 27 - (1) In addition to their responsibilities set forth in article 10 of the Law, managers shall have to:

      a) Look after properties and charities, principally including endowed cultural assets, and repair those that need a repair,

      b) Make proposals for the change of any condition of the charter that is actually and legally impossible to carry out,

      c) Make proposals in the case of any change in the foundation's revenues for applying the monetary values in the conditions of charity to the foundation's actual revenues.

          Opposing parties in an annexed foundation

                ARTICLE 28 - (1) In suits brought against a foundation for the right of ownership and usufruct in an annexed foundation, the foundation's management and the Directorate General are designated opposing parties.

      (2) In such suits, court costs shall be borne by the foundation.

SECTION THREE

      Election of Community-Foundation Managers

          Constituency

                ARTICLE 29 - (1) The sub-province where a Community foundation's charity is located will be the constituency for that foundation. Yet if as a result of a survey conducted by the regional directorate upon application by the Community foundation, there is not enough congregation in the sub-province of the Community foundation, then the province of that sub-province can be declared constituency for that foundation by the Directorate General or further if there is not enough congregation in that province either, the neighboring province where the congregation is largest can be declared constituency for that foundation by the Directorate General.

          Composition of a management board and time for election

                ARTICLE 30 - (1) At elections for the management board of a Community foundation:

      a) Members of the congregation benefiting from the endowment or charity shall be eligible for voting in the election of the foundation's management board.

      b) A separate management board shall be elected for each foundation and elections for management boards shall be made every four years. In the event of an insufficient size of congregation, however, the management board may be composed of minimum three members. Any memberships of the management board that have become vacant due to resignation, death, dismissal and similar other shall be filled with reserve members. In the event if, however, the number of members drop below three, a new management board shall be elected within three months. In the case where more than seven members are needed for the operation of the foundation, the number of management board members can be increased subject to an affirmative opinion of the Directorate General two months prior to the date of elections to be made.

          Requirements for voting

                ARTICLE 31 - (1) Voters shall have:

      a) To be a citizen of the Republic of Turkey,

      b) To have completed the age of eighteen,

      c) To be residing within the constituency.

          Requirements for election

                ARTICLE 32 - (1) In addition to the requirements set forth in article 31, persons nominated for members of the foundation's management board must also meet the requirements below:

      a) To have completed a primary school as a minimum,

      b) To have not been convicted of any of the crimes set forth in article 9 of the Law.

          Election procedures

                ARTICLE 33 - (1) Elections for Community foundations shall be carried out in the framework of the following procedures:

      a) The current management board shall state lists of voters, members of the election organization committee, the date of election, the polling place and hours, the location of the ballot box to the regional directorate with a petition minimum fifteen days prior to the date of election. In the event if no election is undertaken for management board despite the current management board's term of office has expired, an election organization committee selected from among the members of the congregation by the respective regional directorate shall carry out the election business.

      b) The management board election shall be concluded in one day.

      c) On the lists of voters and on ballots, no wording other than the phrase ".Foundation, Management Board Election", led by the foundation's name shall be used.

      ç) Lists of voters shall be posted at the head office of the electing foundation after necessary arrangements are made thereon by the election organization committee on the basis of districts, quarters, avenues and streets. The date on which the lists of voters shall be put down can be announced on one of the Community or other local newspapers.

      d) Lists of voters shall be posted for fifteen days. Any objections made in this period shall be decided by the organization committee.

      e) For elections for Community foundation management boards, a ballot sorting board can be composed by the organization committee.

      f) Voters shall cast their ballot in person.

      g) Elections for Community foundations shall be conducted by the secret ballot and open sorting procedure at presence of a notary. Elections may not be conducted at presence of a notary by obtaining on the part of the organization committee an affirmative opinion from the Directorate General two months prior to the date of election. Candidates shall be listed in the order of votes received by each and the foundation management board's principal and reserve members shall be determined on the minutes of election issued.

      ğ) Security of elections for Community foundation management boards will be provided by the respective province governor's office or sub-province governor's office.

      h) The office of the election organization committee shall end with the sending of a list of elected persons, copies of their birth certificates and certificates of residence and a copy of the minutes of election to the regional directorate within ten days of the completion of election procedures.

      ı) Election expenses shall be covered from the budget of the respective foundation.

      i) The newly elected members of the foundation management board shall be issued a certificate of authority after an investigation by the regional directorate to verify that election procedures and results as well as the elected are in accordance with the provisions of these Regulations.

      j) Election results and the management board members issued a certificate of authority shall be advised to the Directorate General and the respective province governor's office by the regional directorate.

      (2) The respective province governor's office shall be provided with information about the constituency and elections of each Community foundation by the regional directorate prior to elections.

PART FOUR

      Declarations and Statements for Foundations

          Obligation to give a declaration

                ARTICLE 34 - (1) Managers of the foundation shall have to completely fill the declaration in Annex 2 and give and also electronically transmit it to the regional directorate within the first six months of each calendar year.

      (2) New foundations shall ensure that the accounting chart of accounts of their branch offices accords with that of their head office, that the year-end situation of their accounts showing their annual revenues and expenditures, the receipt data to be turned over to the new year and the existing moneys is sent to the foundation's head office every year, and that financial statements of a branch office and those of the foundation's head office are consolidated.

          Donations and grants           

                ARTICLE 35 - (1) Foundations shall use banks to receive donations and grants in cash from persons, institutions and organizations abroad and make donations and grants in cash to foundations and societies abroad having similar objectives, and shall state the same to the regional directorate within one month.

      (2) Foundations receiving donations and grants from foreign countries and foundations making donations and grants in foreign countries shall fill in two copies the form in Annex 3 and Annex 4, respectively and shall give the same to the regional directorate within one month.

      (3) The form of statement shall be accompanied by a copy of the decision made by the authorized organ, the applicable protocol issued, if any, the contract and other similar documents.

      (4) A copy of the statement certified by the regional directorate shall be given to the applicant for delivery to the relevant bank.

      (5) A copy of the statement and attachments thereto received shall be sent to the Directorate General by the regional directorate.

          Statements of real estates

                ARTICLE 36 - (1) Within one of month of the registration of any real estates acquired or changed in the real estate register, foundations shall have to provide the related information by filling the form in Annex 5 and giving it to the regional directorate for information.

          Establishment of an economic enterprise or company

                ARTICLE 37 - (1) Foundations establishing or participating in an economic enterprise or company shall fill the form in Annex 6 and send it to the regional directorate within one month. Foundations selling out their share of the company and leaving the company partnership or liquidating their company shall make a statement to the regional directorate.

          Examination of declarations and statements

                ARTICLE 38 - (1) In cases where declarations and statements are not furnished or furnished short despite notification therefor, an administrative fine shall be applicable under article 11 of the Law. A copy of declarations and statements shall be sent to the Directorate General by the regional directorate.

SECTION FIVE

      Audits in Foundations

          Auditing of foundations

                ARTICLE 39 - (1) Foundation managers shall have to arrange according to the form in Annex 7 the reports and results of internal audits conducted within six months of the end of a year and send the same to the respective regional directorate within two months of the date of report.

      (2) New foundations shall also audit their branch and representation offices and shall provide information about such sub-units in reports to be given by them every year.

      (3) The auditing of foundations and their branch and representation offices for accordance with their objective and the laws and the auditing of foundations' economic enterprises and participations for accordance with the line of activity and the legislation shall be done by the Directorate General. The Guidance and Inspection Presidency of the Directorate General shall audit whether foundations:

      a) operate in line with the objective set forth in their charter and deed of trust,

      b) are managed in accordance with the legislation in force,

      c) utilize their goods and revenues in accordance with the requirements of their charter, the declaration 1936 and the deed of trust,

      ç) and shall also audit the business and operations of foundations' economic enterprises and participations as well as other participations thereof if necessary.

          Auditing of branch and representation offices

                ARTICLE 40 - (1) For activities carried out by a branch office or a representation office, the foundation management as well as the branch office management or the representative shall be responsible.

      (2) In the event if as a result of the auditing of a branch or representation office, it is determined that such office fails to contribute to the accomplishment of the foundation's objective and performs actions contrary to the deed of trust or if a branch or representation office is started without making a declaration, then the foundation's head office is advised to close that office.

          Purpose of internal audits

                ARTICLE 41 - (1) Internal audits aim to ensure that the foundation's activities are carried out in accordance with the legislation and the foundation's strategic plan, that resources are utilized effectively, economically and efficiently, and also ensure the reliability, integrity and timely availability of information.

      (2) Internal audits help the foundation in achieving its goals with a systematic and disciplined approach, evaluating the effectiveness of risk management and control processes.

          Scope of internal audits

                ARTICLE 42 - (1) All acts and actions of the foundation shall be included in the scope of internal audits.

      (2) Internal auditing activities are carried out over books, records and documents and if necessary, by making an accord of accounts with the third parties involved, taking into account the following:

      a) Whether the foundation is being managed in accordance with  the conditions written in the charter of foundation, the Declaration 1936 and the deed of trust as well as the legislation in force;

      b) Whether the foundation's goods and revenues are being utilized effectively and efficiently in accordance with  the conditions set forth in the charter, the Declaration 1936 and the deed of trust;

      c) Whether in foundations having operations and participations, such operations and participations are being administered in accordance with industrial, economical and commercial principles and requirements and managed rationally;

      ç) Whether the transactions, accounts and financial statements of all units of the foundation subject to auditing comply with the generally accepted principles of accounting and the procedures and guidelines established by the Directorate General.         

          Internal auditors

                ARTICLE 43 - (1) In foundations whose deed of trust includes an auditing organ, internal audits can directly be conducted by such organ, or alternatively an independent auditing organization can be engaged therefor.

      (2) The authorized organ of the foundation or an independent auditing organization can only conduct or have conducted such audit by means of persons who have the auditor's certificate.

          Requirements for certification

                ARTICLE 44 - (1) In order to get an auditor's certificate, persons who have a public accountant's/financial adviser's certificate or a chartered financial adviser's certificate under the Public Accountants/Financial Advisers and Chartered Financial Advisers Law No. 3568 of 1/6/1989 and persons who worked in the Directorate General as a lawyer, director or section chief for minimum 5 years shall have to be successful on a test following a training for certification provided by the Directorate General.

      (2) In addition, persons who worked at least 5 years in the Directorate General as an inspector, internal auditor, foundation expert, legal adviser, head of department or regional director and persons who worked as a director general, member of the Foundations Council, assistant to the director general, head of the Guidance and Inspection, the 1st legal adviser for any period of time will be issued an auditor's certificate upon their request without being subject to a test.

                Outsourcing of services from an independent auditing organization

                ARTICLE 45 - (1) The independent auditing organization shall be selected by the authorized organ of the foundation to be audited.

          Internal-audit reports

                ARTICLE 46 - (1) An internal-audit report is a text that includes the auditor's opinion after an audit. The report encloses financial statements.

      (2) The report shall be submitted to the foundation management with a cover letter signed by persons who are authorized to represent and bind the auditing organ or the independent auditing organization according to the form in Annex 7.

      (3) Within the framework of the basic rules of correctness, clarity, measurability, constructiveness, conformity, fullness and decisiveness, the report shall be issued so as to:

      a) Have the auditor's opinion,

      b) Include correct, impartial, clear, concise expressions,

      c) Cover pre-reported determinations and recommendations,

      ç) Indicate examples of good practice determined during audits,

      (4) The auditor shall attach to the report any documents that constituted a basis for the development of his opinion.

      (5) Audits of foundations that keep books according to the operating ledger system shall not have to be conducted by certified auditors. However, the report to be issued as a result of the audit performed shall have to conform to the report form in Annex 7.

          Validity of internal audits

                ARTICLE 47 - (1) In order that an audit be valid, it shall have to be conducted in accordance with the procedures and guidelines set forth in these Regulations and with the generally accepted auditing standards, where the Directorate General's right of auditing and examination shall be reserved.

 

          Independent auditor's certification test

                ARTICLE 48 - (1) The contents of the auditor's certification test as well as the procedures and guidelines for applications and test shall be determined by the Directorate General and announced on the official internet site.

          Other applicable provisions

                ARTICLE 49 - (1) In cases where there are no applicable provisions in these Regulations in relation to independent audits, provisions of the legislation for independent auditing and international auditing standards shall be applicable.

     SECTION SIX

      Accounting of Foundations

               Accounting of foundations

                ARTICLE 50 - (1) New foundations as well as annexed, Community and tradesmen's foundations shall keep their accounting records according to the Foundations Uniform Accounting System to be issued on the official internet site and shall make their balance sheet and income statements according to the forms of statements attached thereto.

      (2) Foundations with a gross annual income above the sum set forth in article 177(2) of the Tax Procedure Law no. 213 of 4/1/1961 and determined by the Ministry of Finance every year and foundations with a tax exemption, enterprise, participation, branch or representation office shall have to keep books according to the balance sheet method.

      (3) Foundations which are not required to keep books according to the balance sheet method can do the same according to the operating ledger system.

      (4) Foundations shall keep and document their accounting records in accordance with the provisions of the Tax Procedure Law no. 213.

      (5) Annexed foundations shall have to additionally draft an annual chart of accounts as in Annex 8 and furnish the same to the regional directorate within the first six months of every calendar year. The final accounts shall be checked by the regional directorate on the basis of documents produced by the annexed foundation's manager and conditions of charity set forth in the charter of foundation and shall be sent to the Directorate General for approval.

               Books to be kept

                ARTICLE 51 - (1) Foundations shall have to keep:

      a) a book of decisions, a operating ledger and a log of donation receipts according to the operating ledger system,

      b) a book of decisions, a journal, a general ledger, an inventory book and a log of donation receipts according to the balance sheet method.

               Preservation of documents and receipts of donation

                ARTICLE 52 - (1) Without prejudice to the periods of preservation set forth in specific laws, books that must be kept by foundations as well as receipts of donation, documents of expenditure and other documents used shall be preserved for 10 years from the calendar year following the fiscal year they belong to.

      (2) Foundations shall procure receipts of donation to be used and other documents deemed necessary from the Directorate General.

      

      

     SECTION SEVEN

      Surplus Income with Registered and Annexed Foundations

               Application procedure         

                ARTICLE 53 - (1) The foundation children and related persons shall, with a petition accompanied by a court decision proving to be a endowment children or related person under the charter of foundation and entitled to surplus income, apply to:

      a) the foundation manager, if he/she is a child or related person of an annexed foundation,

      b) the regional directorate, if he/she is a child or related person of a registered foundation whose charter stipulates the payment of surplus income or an annexed foundation managed in representation by the Directorate General.

      (2) Children of persons who proved with a finalized court decision that he/she is a endowment child or related person entitled to surplus income under the charter of foundation shall not be required to provide a court decision, where operations shall be done on the basis of a birth record with occurrences.

      (3) If the charter includes an order of generations or similar another condition, such condition must be proven with a court decision.

               Calculation of surplus income

                ARTICLE 54 - (1) With foundations having an endowment child or related person entitled to surplus income under a finalized court decision, the amount of surplus income payable to endowment children and related persons shall be determined by deducting from the foundation's actual gross income the 15% provisional sum, costs of the conditions of charity, management and representation shares, administration fees and other expenses made for the foundation.

      (2) Calculation of the income surplus shall take into account all the revenues for that year.

      (3) If a real estate of the foundation needs repair, remainder of the actual gross income for that year after the separation of management and representation shares or administration fees and statutory expenses shall be reserved for repairs.

               Payment of surplus income

                ARTICLE 55 - (1) The date from which endowment children or related persons are to be entitled to surplus income shall be the date of the decision of the court of first instance, and payment shall be made after the finalization of the court decision for surplus income.

      (2) Surplus income shall be paid annually within 15 days after the approval thereof by the Directorate General with registered foundations and after the endorsement of the final account with annexed foundations.

      (3) First-time applicants for usufruct payment after usufruct payments are made shall not be entitled to payment that year. Yet the child's share for the entitling year(s) shall be paid subsequent to the finalization of the court decision.

               Accounts for surplus income monitoring

                ARTICLE 56 - (1) In the event if a decision of a court of first instance for surplus income is served to the respective regional directorate or the annexed foundation's management, such surplus income will be monitored on custody accounts from the date of decision to the date when it shall have been paid to beneficiaries.

      (2) The provisional sum cut from the foundation's gross annual income will be monitored on a separate account of the foundation.

      (3) The ratio of provisional sum can be changed by a resolution of the Council.

               Non-demand of surplus income

                ARTICLE 57 - (1) In the event if any surplus income put on a custody account is not demanded within five years from the date when it has become payable, such surplus income shall be forfeited to the foundation.

     PART THREE

      Allocation of Real-Estate Charities and Charity Services

     SECTION ONE

      Allocation of Real-Estate Charities

               Allocable real-estate charities

                ARTICLE 58 - (1) Traditional charity buildings such as theological high-schools, primary schools, health homes, lunatic asylums, accommodations, libraries, etc as well as real estates which have become a plot after the cultural asset thereon is demolished for miscellaneous reasons and buildings constructed thereon can be allocated.

               Allocation of real-estate charities

                ARTICLE 59 - (1) The Council shall have the authority to allocate real-estate charities.

      (2) Real-estate charities belonging to the Directorate General and a registered foundation shall firstly be assigned a function by the Directorate General in line with the charter of foundation thereof.

      (3) Such real estates can be allocated to public institutions and agencies, foundations having a similar objective or societies operating for public benefit for purposes of use for functions assigned in line with the charter of foundation thereof.

      (4) If a repair and restoration is needed, allocation shall be made in return of repair and restoration.

      (5) Real-estate charities that can not be utilized or assigned a function by the Directorate General can be let for a temporary period of time until when they will have been used in accordance with the original nature thereof.

      (6) Real estates which have become a plot after the cultural asset thereon is demolished for miscellaneous reasons can be allocated for rehabilitation in line with the charter of foundation, taking into consideration their status for physical development.

               Duration of allocation

                ARTICLE 60 - (1) The duration of allocation of real-estate charities shall be determined by the Directorate General by taking into account their need for repair and restoration and the purpose of allocation.

               Request for allocation and operations

                ARTICLE 61 - (1) Requests for allocation shall be made to the regional directorate that covers the location of the real estate. Upon a request application, the land register records, the endowment log records, the current condition of the real estate requested for allocation as well as its need for any repair and its status of endowed cultural asset shall be determined, and a sketch plan thereof and a detailed report prepared therefor by technical staff accompanied by photographs taken from different angles, internally and externally, and showing the latest condition of the real estate shall be sent to the Directorate General.

      (2) The request for allocation shall be evaluated by the Directorate General for purposes of the conditions of charter. If the request is deemed appropriate, allocation operations shall be started.              

               Allocation operations and the price of usage

                ARTICLE 62 - (1) Allocation operations shall be done as follows.

      a) For the repair and restoration of the real-estate charity, a cost estimation shall be made or procured by the regional directorate.

      b) Taking into account the location, position and the purpose of use of the real estate, a current price of usage shall be determined by the respective regional directorate therefor. Such determination of price shall also take into account the costs of any repair and restoration to be carried out.

      c) The price of usage may not be received for real-estate charities allocated to public institutions and agencies, which are used in line with the purpose set forth in the charter thereof.

      ç) Subsequent to the making of a decision for allocation, a protocol shall be signed with the requester institution or agency and sent to the Directorate General, which protocol shall provide that restoration drawings shall be drafted within not later than six months and approved by the regional cultural and natural assets preservation board within one year thereof, that the repair or restoration shall have been completed within three years of the date of allocation, and shall also include other procedures and guidelines.

      d) The protocol signed by the parties thereto shall be submitted to the Council for the making of a necessary decision.

      e) After a decision is made for allocation, the real estate shall be delivered to the respective institution or agency with a protocol subsequent to the installation of a security system and the effecting of the insurance thereof.

               Use of allocated real estates

                ARTICLE 63 - (1) Real estates shall not be used for other than the purpose of allocation thereof.

      (2) Without approval of the Directorate General in writing:

      a) No repair or addition shall be made to any real estate subject of allocation.

      b) Part or the whole of the real estate shall not be transferred to nor let be used by others.

               Evacuation of real estates

                ARTICLE 64 - (1) If in relation to a real estate allocated,

      a) it is determined that the use thereof is being continued despite the allocation thereof is revoked or the duration of allocation thereof has expired,

      b) one of the cases set forth in article 63 was determined,

      c) it is determined that the obligations under the protocol have not been carried out in time,

      and further if the activity being carried out in the real estate is banned by the court, then the real estate will be evacuated by the local governor upon request by the regional directorate therefor.

               Monitoring of allocated real estates

                ARTICLE 65 - (1) Allocated real estate charities shall be checked continually by the regional directorate and a report shall be issued every four months to verify if the conditions of allocation are observed and kept in the dossier for that real-estate charity.            

      

     SECTION TWO

      Soup Kitchen Service

               Opening of soup kitchens

                ARTICLE 66 - (1) In order to carry out the conditions of charity set forth in the charter of foundation, the number of needy people shall be determined by the Directorate General for the provision of hot meals and dry food and soup kitchens will be opened for the distribution thereof.

               Beneficiaries of soup kitchens

                ARTICLE 67 - (1) Persons who have not a social security or whose income is not greater than the net minimum wage can benefit from soup kitchens.

      (2) Persons who are paid a salary under the Law no. 2022 of 1/7/1976 on the Grant of Salary to Needy, Feeble and Lonely Turkish Citizens Above 65 can also benefit from the soup kitchen service.

               Application

                ARTICLE 68 - (1) Persons who would like to benefit from the soup kitchen service shall fill the form in Annex 9 to apply to the respective regional directorate. Persons who are assessed to be eligible shall be allowed to benefit from the soup kitchen service.

      (2) In the event if the quota is not filled, the soup kitchen service can also be offered to the children in educational institutions opened for the handicapped children, taking into consideration the list given by the institution management.

               Monitoring of neediness

                ARTICLE 69 - (1) About the income and patrimony of persons who benefit from a soup kitchen, information may be provided from real or legal persons by the regional directorate. Persons who are determined as a result of investigation to be not eligible for benefiting from the soup kitchen service shall not be allowed to benefit therefrom.

               Checking

                ARTICLE 70 - (1) Persons who benefit from  the soup kitchen service shall have to fill a check document in Annex 10 in November every year and furnish to the soup kitchen official.

      (2) Persons who fail to deliver their check document within 15 days shall not be allowed to benefit from the soup kitchen service.

               Termination of soup kitchen service

                ARTICLE 71 - (1) In the case if the needy person:

      a) dies,

      b) loses his/her needy status or is taken under care,

      c) fails to receive meals for 10 days without providing information,

      then the service offered to such person shall be terminated.

 

     SECTION THREE

      Monthly Salary for the Needy

               Monthly Salary for the Needy

                ARTICLE 72 - (1) In order to carry out the conditions of charity set forth in the charter of foundation, a monthly salary will be granted to the needy handicapped persons and orphans.

              

               Eligibility for salary for the needy

                ARTICLE 73 - (1) The needy children with no father or mother and the needy persons who are handicapped at 40% or above can be granted a monthly salary provided that they shall have no social security nor an income or monthly salary, shall have not been taken under care by a court decision or under the law, shall have no income-earning movable or immovable goods, or his/her average monthly income from such goods, if any, shall not exceed the monthly salary for the needy determined under these Regulations.

      (2) The handicapped children under 18 will be granted a monthly salary if their guardian parents satisfy the conditions set forth in paragraph one of this article.

      (3) Only one person from a family can be granted the monthly-salary payment.

               Documents required from applicants

                ARTICLE 74 - (1) Applicants for the grant of a monthly salary shall be required to furnish the following documents.

      a) Application form in Annex 11,

      b) A health board's report indicating the disability.

               Health board's report

                ARTICLE 75 - (1) The health board's report shall indicate whether the requester can earn his/her living by working and the lack or malfunction of an organ, adding the percentage of malfunctioning.

               Evaluation of applications

                ARTICLE 76 - (1) Applicants for the grant of monthly salary shall apply to the regional directorate of their home settlement by filling the documents set forth in article 74.

      (2) After the applicant's declarations on application documents are verified by the regional directorate, a scoring will be done according to the criteria set forth in Annex 12 to complete dossier. An approval issued according to the form in Annex 13 and taking into account the needy vacancies in provinces will be sent to the Directorate General.

               Monthly salary payable

                ARTICLE 77 - (1) The monthly salary payable will be an amount be calculated as a product of the base monthly-salary coefficient specified in the Public Officers Law no. 657 of 14/7/1965 applicable to public officers' base monthly salaries and the indicator 400 (for hundred).

      (2) The number of the needy for the grant of monthly salary shall be determined by the Directorate General.

               Payment of monthly salaries and monitoring of neediness

                ARTICLE 78 - (1) Monthly salaries shall be paid in cash to beneficiaries or their agent or guardian from the beginning of the month following the approval by the Directorate General.

      (2) Persons granted a monthly salary by a regional directorate shall be notified thereof with their bank account number and their monthly salary shall be deposited on their bank account.

      (3) For persons changing their address, the salary payment shall be continued. They can be transferred to the respective regional directorate if there is a vacancy in their quota.

      (4) For persons who are determined to be not included under article 73, the salary payment shall be terminated.

               Checking

                ARTICLE 79 - (1) In November every year, monthly salary receivers shall fill the check document in Annex 14 and deliver it to the regional directorate which makes the salary payment.

      (2) For persons who fail to furnish a check document, the salary payment shall be suspended and if they bring the document within three months, their suspended monthly salaries shall be paid as a whole.

               Termination of salary payment

                ARTICLE 80 - (1) In the case if the monthly-salary receiver:

      a) dies,

      b) loses his/her needy status or is taken under care,

      c) has finished 18 as an orphan boy or 25 as a student at a college or university,

      ç) fails to receive his/her monthly salary for three  straight months,

      his/her salary payment shall be terminated from the beginning of the month following the determination of any of the cases above.

               Obligation to notify

                ARTICLE 81 - (1) The needy shall have to notify the regional directorate in writing of any case that entails the termination of salary payment within not later than one month thereof.

      (2) Any excess payments made after the disappearance of the conditions that entailed the grant of salary payment shall be collected from the relevant person according to general provisions.

     SECTION FOUR

      Educational Aid

               Educational Aid

                ARTICLE 82 - (1) In order to carry out the conditions of charity included under the charter of foundation, educational aids can be granted to primary and secondary school pupils of families whose economic situation is not adequate to do so.

      (2) Only one person from a family shall be granted the educational aid.

      (3) No educational aid shall be granted to persons who are paid a salary for the needy or taken under care by a public institution or agency or paid a scholarship.

      (4) The number of pupils to be granted an educational aid as well as the amount of such aid, the annual increase thereof, the time for the payment thereof and the distribution thereof by provinces shall be determined by the Directorate General.

               Application

                ARTICLE 83 - (1) Pupils who would like to benefit from the educational aid must apply to respective regional directorates within one month of the beginning of enrollments for the current academic year.

      (2) If there is a vacancy in the quota, the respective regional directorate shall make an announcement and receive applications.

               Documents required

                ARTICLE 84 - (1) The following documents shall be required from would-be applicants.

      a) Application Form in Annex 15,

      b) Pupil's certificate.

               Evaluation of applications

                ARTICLE 85 - (1) Information in the pupil's application form shall be evaluated by the regional directorate according to the criteria in Annex 16, following which an ordered listing of scores and principal and reserve lists of names shall be drafted. After such lists are approved by the Directorate General, successful applicant pupils shall be notified by the regional directorate thereof, also indicating the bank account name opened in their name, followed by the payment of the educational aid. If any vacancy occurs in the principal list, educational aid shall be granted according to the order of names in the list.

               Duration of educational aid

                ARTICLE 86 - (1) The pupil entitled to educational aid shall be granted the same throughout his/her education process as long as his/her pupil's status continues and provided that nothing shall exist to prevent him/from entitlement to educational aid. If the student is transferred to another school, he/she shall be paid the educational aid by the same regional directorate.

               Monitoring of pupil's status and termination of educational aid payment

                ARTICLE 87 - (1) Every year, the regional directorate shall determine if the pupil's status of pupils granted educational aid continues.

      (2) In the case if the pupil's status terminates or if the pupil fails, the educational aid payment shall be terminated. In the event if, however, a report indicating that the period of education has extended due to health reasons is produced, the educational aid payment shall be continued.

               Special educational aid

                ARTICLE 88 - (1) Needy pupils may be granted a special educational aid for once provided that such aid shall not exceed five times the annual educational aid granted under these Regulations.

 

     SECTION FIVE

      Treatment Assistance to Poor and Lonely Patients

               Examination and treatment service to poor and lonely patients

                ARTICLE 89 - (1) Poor and lonely patients shall be offered a service as much to the same quality for other patients as limited by the possibilities of the hospital.

      (2) For poor and lonely patients, all types of medical materials shall be provided in line with the conditions of charter, provided that their situation shall have been certified. Medical materials not available in the hospital shall be procured from outside thereof.

               Patients subject to examination and treatment

                ARTICLE 90 - (1) Patients producing one of the following documents shall be examined and treated free of fees.

      a) A document showing entitlement to needy-salary payment by the Directorate General,

      b) A document showing entitlement to salary payment under the Law no. 2022,

      c) A court decree for the children in need of safeguarding under the Law no. 2828,

      ç) A document showing entitlement to benefit from an endowed soup kitchen,

      d) A document for a family member of a martyr or veteran.

      (2) A document for the poor and lonely issued by a local governor or village headman as well as the form in Annex 17 and the commitment in Annex 18, from persons who can not produce one of the documents referred to paragraph one.

               Application to hospital and treatment

                ARTICLE 91 - (1) Patients shall apply to an office appointed by the chief of staff of the hospital. After the documents are examined by the respective officer, the patient shall be dispatched to the respective clinic. Such persons will be treated as an outpatient and the prescription will be issued for them. If the patient must be hospitalized, the respective medical expert shall fill and sign the form for hospitalization and shall dispatch him/her to the assistant to the chief of staff. The hospitalization procedure will follow the production of a certificate of poorness for the determination of his/her poor or lonely status.

               Treatment in emergencies

                ARTICLE 92 - (1) If a poor and lonely person applies to the hospital in emergency, his/her declaration will be credited and he/she shall be examined and treated. The situation of such persons will later be investigated if necessary.

               Declaration contrary to the truth

                ARTICLE 93 - (1) The poorness certificate of persons who made a declaration contrary to the truth shall be cancelled and all treatment and medicine costs incurred for them shall be collected from them.

               Other benefits to poor and lonely patients

                ARTICLE 94 - (1) Travel, funeral and similar other expenses of poor and lonely patients can be met if necessary.

               Treatment of poor foreigners

                ARTICLE 95 - (1) Poor foreigners living in Turkey can be provided with cost-free examination and treatment.

 

     PART FOUR

      Foundations Council, Guidance and Inspection Presidency, Foundation Expertness

     SECTION ONE

      Foundations Council

               Composition of Council

                ARTICLE 96 - (1) The Council shall be the top decision-making organ of the Directorate General.

      (2) The Council shall be composed of fifteen members, including a Director General, three assistants to the Director General and the 1st Legal Adviser; five members to be appointed on a triple decree upon proposal by the Prime Minister from among the higher education graduates equipped with knowledge and experience on foundations; three members elected by new foundations; a member elected by annexed and Community foundations each. In addition, new foundations will elect three reserve members, annexed foundations and Community foundations will each elect a member

      (3) The Director General shall also be the spokesperson of the Council.

      (4) In cases where the Director General is not on duty for any reason whatsoever, the person acting for the Director General shall also act for the Council spokesperson.

      (5) In cases where assistants to the Director General and the 1st Legal Adviser are not on duty for any reason whatsoever, the persons acting for them shall attend the meetings of the Council.

               Conditions for election as a member to the Council

                ARTICLE 97 - (1) The following conditions shall be sought for election as a member to the Council by new foundations, annexed foundations and Community foundations.

      a) To satisfy the requirements determined under the Public Officers Law,

      b) To be a higher-education graduate,

      c) To have not been dismissed from the office of a foundation manager by a finalized court decision,

      ç) To have not been subjected to a treatment under article 10 of the Law.

               Election committee and duty

                ARTICLE 98 - (1) To carry out the procedures for and conclude elections, an election committee shall be composed of a sufficient number of members from among the personnel.

      (2) The election committee shall be in charge of carrying out elections and sorting ballots and shall carry on this duty continually until the completion of election and sorting tasks.

               Time and place of elections

                ARTICLE 99 - (1) Activities for the election of the members of the Council shall start three months prior to the terms of office of the five members elected.

      (2) Elections shall be conducted in Ankara.

      (3) The address, date and hours of the election as well as requirements for the selection of a representative shall be announced on the official internet site of the Directorate General. In addition, such announcement shall be made two times on one of the first five newspapers with the highest circulation issued throughout Turkey, the one thereof minimum two months prior to the election, for new foundations, annexed foundations and Community foundations, to identify a representative for their foundation.

               Selection and notification of representatives

                ARTICLE 100 - (1) A foundation representative shall be identified by a decision of:

      a) the organ authorized to manage and represent the foundation, for new foundations,

      b) the management board, for Community foundations and tradesmen's foundations,

      c) the foundation manager, for annexed foundations,

      (2) Each foundation can identify a representative. A person may be the representative of multiple foundations and each foundation represented shall have one vote.

      (3) Each foundation shall fill the form in Annex 19 for the foundation representative and deliver the same to the regional directorate minimum on month to the day of election. The regional directorate shall issue a representative's certificate as in Annex 20 to the foundation representative.

               Nomination of candidates for members of the Council

                ARTICLE 101 - (1) Candidates shall fill the form in Annex 21 for transmission to the election committee and shall send the same to the Directorate General for delivery thereto or deliver the same in person minimum fifteen days prior to the date of election.

               Announcement of candidates for representatives and for members of the Council

                ARTICLE 102 - (1) A list of representatives drafted basing on the data sent by regional directorates and a list of candidates for members of the Council shall be announced on the official site of the Directorate General and on one of the first five newspapers with the highest circulation issued throughout Turkey minimum seven days prior to the date of election.

      (2) Objections to lists can be filed with the Directorate General within three days of the date of announcement.

      (3) Lists not objected to or objected but cleared by an after-objection decision shall be prepared in alphabetical order by surnames.  

               Election procedure and guidelines

                ARTICLE 103 - (1) Elections shall be conducted at different ballot boxes on the same day for new foundations, annexed foundations and Community foundations by the secret ballot and open sorting procedure under the supervision of the election committee.

      (2) The supply of materials and equipment to be used in selections and the secretarial services for the election committee shall be carried out by the Foundation Services Department.

      (3) The election committee shall make available an official at every box.

               Voting procedure

                ARTICLE 104 - (1) Persons whose name is not included in lists of representatives shall not cast vote. Votes shall be cast after producing the voter's identity card and representative's certificate and signing against his/her name on the list. Representatives may not delegate a proxy to cast their vote.

      (2) Votes shall be cast from 08:00 Hrs to 17:00 Hrs on the election day. If however there are still representatives awaiting around the box to cast their vote despite it is already 17:00, such representatives shall cast their vote in succession after they are counted by the election committee. Any changes relating thereto can be determined by the election committee provided that the same shall have been stated in the announcement for elections.

      (3) Votes shall be cast by placing them in the box on the day and at the hours announced.

      (4) For voting, the sealed envelope provided by the election committee shall have to be used.

      (5) Foundation representatives shall be guided to the enclosed voting place for writing on the ballot secretly or putting a ready-made and printed ballot in the envelope. Ballots shall have to be put in the envelope in an enclosed space.

      (6) No measure shall be taken to limit the foundation representatives' right to vote nor shall an obligation be imposed thereupon.

      (7) Candidates shall not make any intervention with, any suggestion or recommendation to representatives around the box and no representatives shall remain around the box after he/she cast his/her vote.

               Opening of boxes and sorting of ballots

                ARTICLE 105 - (1) At the end of the election, ballot boxes shall be opened by the election committee before those present at the voting place and the envelopes taken out shall be counted and recorded on the minutes.

      (2) All envelopes out of the box shall be controlled one by one. As a result, any envelopes bearing any signature or marking thereon shall be deemed invalid and separated. The number of remaining envelopes shall be compared to the number of voting representatives. If the number of envelops turns out to be greater than that of voting representatives, the chairman of the election committee shall randomly pick the excessive number of envelopes from among the remaining envelops and separate the same.

      (3) The separated excessive envelopes shall be recorded on the minutes and immediately annihilated without opening them. Then valid envelopes shall be counted and put in the box, immediately followed by open sorting.

      (4) The counting and recording of ballots shall continue without interruption. Any objections made shall not stop the election process.

      (5) The chairman of the election committee or the election committee member assigned thereby shall be in charge of the order and administration of the ballot sorting process. At completion of sorting, the number of ballots shall be checked against that of envelopes and the result shall be recorded in the minutes.

      (6) After the votes obtained by each candidate are determined, candidates shall be listed in a descending order starting from the highest vote obtainer and the principal and reserve members-elect shall be identified starting from the highest vote obtainer.

      (7) If in the list there are identified candidates who obtained the same number of votes, lots shall be drawn by the election committee chairperson before the election committee for listing in order.

      (8) Listing of principal and reserve members shall thus be determined separately and their names shall be written in the minutes.

               Invalid ballots

                ARTICLE 106 - (1) When sorting, any ballot that:

      a) was put in an envelope other than the sealed envelope given,

      b) bears any designation or marking,

      c) is not legible,

      ç) is more than one in an envelope, bearing miscellaneous names,

      d) bears a name other than any of the candidates announced,

      e) exists in more than one in the envelope, then the extra ballot,

      shall be deemed invalid.

      (2) Ballots deemed invalid shall immediately be annihilated, making a record in the minutes as such.

               Minutes

                ARTICLE 107 - (1) The minutes to be issued at the end of the election shall include the following:

      a) The election date and the box opening hours,

      b) The number of representatives in the list,

      c) The number of voting representatives,

      ç) The number of valid and invalid envelopes out of the box and the number of annihilated envelopes,

      d) The number of ballots deemed valid,

      e) The number of ballots deemed invalid due to which reasons,

      f) The number of ballots objected to but deemed valid,

      g) Names, surnames of and votes obtained by candidates and principal and reserve members-elect to the Council in the order of votes obtained,

      ğ) A statement that the result of sorting has been announced to those present,

      h) Any selection (if made) by drawing lots between candidates who obtained equal votes and the name of the winning candidate,

      ı) Objections and complaints that the voting procedure was carried out contrary to the Law and these Regulations.

      (2) The minutes shall be issued in five copies and signed by the election committee. Provisional results of the election shall be announced by posting a copy of the minutes at the election place for a full business day and publishing the same on the official internet site of the Directorate General. Such announcement shall also be recorded on the minutes therefor.

      (3) The ballots cast and other documents, accompanied by a copy thereof shall be given to the Directorate General for preservation at the Council bureau for three months.

               Objections and examination

                ARTICLE 108 - (1) Representatives and candidates who cast their vote shall make their objection to the provisional results of election within one day of the expiry of the time for announcement. Objections shall be examined and decided on the very same day. Any decision made upon an objection shall be final for purposes of administrative actions. Immediately after the resolution of any objections or in the case of no objections, one full day after the announcement of provisional results of the election, final results shall be announced by posting them at the Directorate General building for one business day and publishing the same on the official internet site of the Directorate General.

      (2) Any failure on the part of a representative elected by a foundation to cast his/her vote shall not be subject to objection..

               Notification

                ARTICLE 109 - (1) The election committee shall forthwith give a notice in writing to persons whose membership to the Council has finalized.

               Cancellation of elections

                ARTICLE 110 - (1) In the event if it is decided by the election committee to cancel elections on account of such irregularity as to affect election results or any practice contrary to the legislation, a day shall be identified for the repetition of elections not earlier than one week and within not later than one month and notified to relevant authorities.

      (2) The election shall be repeated with the same representatives and candidates.

      (3) In the period of time to lapse until the repetition of elections, the current members of the Council shall continue their duty.

               Duties of the Council

                ARTICLE 111 - (1) To make a decision on the following, as proposed by the Directorate General,

      a) Acts for the allocation, selling and swap of properties and real estate charities belonging to the Directorate General or fused and annexed foundations as well as the public benefit of any expropriations,

      b) Replacement with more useful ones, cashing into money or utilization of properties and rights belonging to the Directorate General and fused foundations,

      c) Conversion to another charity having the same or a closest objective, transfer to a property or cashing into money, upon request by the Directorate General for a fused foundation and by the foundation manager for an annexed foundation, of real estates belonging to the Directorate General or fused and annexed foundations the use of which for the objective they are allocated for would be contrary to laws or the public order or which has lost its suitability for the objective of allocation and is not possible to be used as a charity in part or as a whole,

      ç) Allocation to another foundation or conversion to the property of another foundation upon request by the foundation management, of real estates belonging to Community foundations which are not used as charity in part or as a whole,

      d) A lease period from twenty years to forty-nine years for real estates belonging to the Directorate General and fused foundations in return of repair or construction,

      e) Conservation and maintenance of real estates of the nature of endowed cultural assets belonging to a fused foundation devoid of a sufficient income, on the revenues of a fused foundation having a similar objective,

      f) Use of revenues and concession prices acquired from the selling of real estates belonging to fused foundations for income-earning investments and for the repair and maintenance of endowed cultural assets belonging to foundations in Turkey or abroad devoid of any income,

      g) Change of the conditions of charter and the adaptation of monetary values under the conditions of charity to current foundation revenues if such conditions have actually and legally become impossible to apply, upon request by the Directorate General for a fused foundation and by the foundation manager for an annexed, Community or tradesmen's foundation, provided that this shall not be contrary to the will of the endower,

      ğ) Minimum amount of allocable goods for the objective of foundations established every year,

      h) Appointment of managers to annexed foundations according to the conditions of charter which do not constitute a contrariness to the Constitution,

      ı) Filing a suit for the removal of foundation managers from office in line with article 10 of the Law and filing a request with the court for the removal of the foundation management from office on temporary basis and the management of the foundation by a trustee until the conclusion of the suit in cases where un-compensable outcomes would arise.

      i) Termination of the office of any member of the Council in cases where he/she is functional due to a sickness or disability preventing him/her from performing his/her duty or he/she has lost the eligibility for membership or failed to attend three successive meetings or totally ten meetings a year with no excuses.

      j) Conclusion of legal disputes with a agreement or contract according to article 78 of the Law and within the guidelines determined by the Council, revocation of litigation and enforcement proceedings, recognition of a right and cancellation of an interest,

      k) Monthly gross contractual fees payable to the personnel actually working at the Directorate General,

      l) Procedure, basis and percentages of payments to be made under article 72(1),(2) of the Law.

      m) Budgets of the Directorate General and enterprise directorates,

      n) Filing a suit for the transformation of annexed foundations whose charter includes more usufructs than the conditions of charity, into a family foundation as set forth in article 372 of the Turkish Civil Code, upon request by managers and relevant persons of such foundations,

      o) Draft rules of procedure and regulations relating to the Directorate General and foundations,

      ö) Other issues deemed necessary by the Directorate General.

               Time of meetings

                ARTICLE 112 - (1) The Council shall meet upon summons by the spokesperson minimum two times a month and any time so deemed necessary, by notifying the time and agenda thereof.

               Agenda of meeting and procedure for summons

                ARTICLE 113 - (1) The agenda of meetings shall be drafted by the spokesperson or a member so authorized thereby. The day, place, time and agenda of a meeting shall be notified to members minimum five days prior thereto. The calculation of such five days shall exclude the day of announcement and the day of meeting. This period can be reduced to one day in emergencies. Members shall be notified by sending an electronic mail or a registered mail to the e-mail or mail address given thereby or by delivering the agenda thereto against signature.

      (2) Any issues not included in the agenda can be included therein after a decision with absolute majority upon a motion by the spokesperson or members.

               Quorum for meeting and decision-making

                ARTICLE 114 - (1) The Council shall convene with two-thirds of the full number of members and make its decisions with absolute majority thereof. If the quorum for meeting is not maintained, a second meeting shall be made three days later. This shall be stated in the notice for the first meeting.

      (2) Members of the Council shall not attend meetings and votings that are related to themselves or their relatives by blood or marriage down to level three and their adopted children. In such cases, the number of members attending the meeting shall be the basis for the determination of the quorum for meeting and decision making.

               Meeting and voting procedure

                ARTICLE 115 - (1) The Council shall be presided by the Director General. If it is understood that the quorum for meeting exists, the meeting shall be opened by the spokesperson, followed by the discussion of the agenda.

      (2) If the spokesperson or his/her deputy is not present at the meeting, it shall be presided by the most senior member or, in the case of equal seniorities, the member who is most senior in public service or, in the case of equal seniorities again, the oldest member.

      (3) Issues of the agenda shall be presented by a foundation expert assigned by the Director General. If so deemed necessary, the head of the relevant department or other officials can be summoned to meeting to make explanations about the issue.

      (4) Foundations can at meetings concerning them be represented by an authorized agent with no right to vote. Such foundations shall be notified of the day of meeting in advance by the Council bureau.

      (5) Issues of agenda shall obviously be voted one by one. Members of the Council shall not cast a vote of abstention. Members in opposition will state their grounds for opposition under the decision. Members of the Council shall be liable for their votes and decisions.

               Writing and notification of decisions

                ARTICLE 116 - (1) Decisions made at a meeting shall be undersigned by members on the very same day and shall be sent to the Directorate General with a cover letter.

               Council bureau

                ARTICLE 117 - (1) The Council bureau services will be carried out by a director and a sufficient number of personnel.

               Duties of the Council bureau

                ARTICLE 118 - (1) Duties of the Council bureau shall be as follows:

      a) Keep records of documents coming in and going out of the Council,

      b) Give notices for meetings of the Council,

      c) Ensure that decisions of the Council are written and sent to relevant units,

      ç) Carry out the correspondence in relation to the personnel,

      d) Perform other tasks given by the spokesperson.

      (2) The bureau officials shall not disclose any confidential information and documents acquired throughout their term of office to anybody other than competent authorities nor shall use the same in any way.

               Right of signature

                ARTICLE 119 - (1) Letters sent by the Council to relevant units shall be signed by the spokesperson or a member authorized thereby.

               Leaves

                ARTICLE 120 - (1) Persons assigned a member to the Council with a joint decree shall use their leaves so as not disrupt meetings and activities.

 

     SECTION TWO

      Guidance and Inspection Presidency

               Base and working groups of the Guidance and Inspection Presidency

                ARTICLE 121 - (1) The presidency shall comprise a president and a sufficient number of chief inspectors, inspectors, assistant inspectors and the office personnel. The Presidency and inspectors shall be based in Ankara.

      (2) The presidency shall report directly to the Director General. Inspectors shall perform their duties in the name of the Director General.

      (3) The writing, calculation, archiving and other similar work of the Presidency shall be carried out by an office attached to the Presidency. In the appointment of the personnel to be employed in the office, affirmative opinion of the Presidency shall also be obtained, taking into consideration the requirements of auditing services.

      (4) In order to ensure the continuity of inspection, examination and investigation efforts, working groups can be composed in other provinces, considering the workload of the unit subject to audit. Inspectors to be assigned to such groups shall be identified upon proposal by the Presidency and approval by the Director General. Bases of the working groups of inspectors shall be changed in the same manner.

      (5) In relation to the carrying out of duties assigned by the Presidency and of office services and the arrangement of relations of inspectors with the office in such working groups, one of the senior inspectors in that base will be appointed by the President.

               Duties of the Guidance and Inspection Presidency

                ARTICLE 122 - (1) Upon an order or approval by the Director General, the Presidency shall carry out the inspection, preliminary examination and investigation work in relation to the Directorate General's central and country organizations, affiliated enterprises and their personnel in the name of the Director General.

      The Presidency's duties and responsibilities shall include the following:

      a) Organize informative and instructive activities such as conferences, seminars, panels, etc or provide guidance by means of publications in order to ensure that the Directorate General's central and country organizations as well as foundations render effective and efficient services and avoid probable errors;

      b) Establish general principles as regards the carrying out of inspections, examinations and investigations in an effective manner and encourage the personnel to work efficiently; improve the guidance and inspection system and organize and audit the efforts of inspectors to this end; and ensure that assistant inspectors are trained in their profession;

      c) Examine and audit if the foundations and their branch offices and representation offices are being managed in accordance with the conditions written in the charter and the deed of trust as well as the legislation in force, if they are operated in line with their objective and if their properties and revenues are being utilized according to the conditions of the charter of foundation, the Declaration 1936 and the deed of trust;

      ç) Submit reports issued by inspectors as a result of an inspection, examination, investigation, preliminary examination and investigation to the office of the Director General with the Presidency's opinion thereon;

      d) Audit the foundations' economic enterprises and the participations they own directly or indirectly, also taking into consideration the legislation for taxation;

      e) Evaluate internal auditing reports for foundations and carry out necessary actions;

      f) Propose administrative fines for a foundation management that fails to furnish required declarations, information and documents in time despite notification therefor, causes organs to meet contrary to the charter and the deed of trust or makes untrue declarations;

      g) Prepare an overall situation report including proposals determined to be necessary during the Presidency's work as well as an annual audit and work program to ensure that the Directorate General accomplish its objectives better and work in accordance with the legislation, planning and program;

      ğ) Submit to the Director General for approval the nomination of inspectors to be appointed on investigations involving multiple public institutions and agencies;

      h) Perform similar duties assigned by the Director General and other duties determined by the legislation in force;

      (2) The President shall have the capacity and authority of inspectors and shall be responsible for carrying out the duties assigned under the legislation.

      (3) The President can appoint as much inspectors as necessary in the Presidency for assistance to him and can also appoint a sufficient number of chief inspectors as Assistants to the President subject to approval by the Director General.

      (4) The Presidency shall be responsible for submitting to the Director General for approval and implementing the Presidency Working Principles and Guide prepared to ensure a uniformity of practice in activities, reporting and on other issues.

               Duties and powers of inspectors

                ARTICLE 123 - (1) Inspectors shall directly be attached to the Directorate General and shall have the authority to do the following in the name of the Director General:

      a) Provide guidance, conduct examinations and audits to verify that foundations and their branch and representation offices are managed in accordance with the conditions of the charter of foundation and the deed of trust and with the legislation in force, that they operate in line with their objective, and that their goods and revenues are utilized according to the conditions of the charter of foundation, the Declaration 1936 and the deed of trust thereof,

      b) All types of inspections, examinations and investigations about the personnel of the Directorate General's central and country organizations as well as enterprises, including inspections and examinations about foundations subject to auditing by the Directorate General as well as their enterprises, directly or indirectly owned participations, domestic and overseas branch offices and organizations and their personnel

      c) Make an informative meeting during an inspection,

      ç) Take under control any cases of corruption acknowledged of beyond the order of duty during an inspection, research and examination promptly and in accordance with the procedure of investigation applicable to persons liable therefor, and communicate the same to the Guidance and Inspection Presidency for approval.

      d) Identify any faults and omissions observed as a result of inspections, researches and examinations and report the same to the Presidency with measures that must be taken to ensure that activities are carried out more efficiently and that more use is made of the efforts of officials.

      e) Issue a report for corruptions of members of the committee of trustees of the public officer status found out during the inspection of a Social Aiding and Solidarity Foundation established under the provisions of the Social Aiding and Solidarity Encouragement Law no. 3294 of 29/5/1986 and deliver such report to the Presidency to ensure that an information of crime will be issued to competent administrative authorities, and to Public Prosecutors about other personnel, whether public officer or not,

      f) Make researches and participate in commissions, courses, seminars and other meetings at home or abroad on miscellaneous matters they are assigned to,

      g) Ensure that assistant inspectors accompanying them are trained well in their profession and issue a report thereabout according to the format determined by the Presidency within one week of the expiry of their accompaniment period,

      ğ) Take place in the work for and make suggestions in relation to the preparation and implementation of the legislation concerning the Directorate General,

      h) Propose administrative fines for foundation managements which fail to furnish in time any declarations, information and documents required under this Law, despite a notice given by the Directorate General, and which cause organs to meet in violation of the charter of foundation or the deed of trust or make untrue declarations,

      ı) Perform similar other duties set forth in the Law, the rules of procedure, and regulations and assigned by the Director General.

               Auditing program and implementation

                ARTICLE 124 - (1) Annual auditing programs shall be drafted by the Presidency by taking into consideration the numbers of units to be inspected and their work capacities as well as previous inspection programs and shall be submitted to the Director General for approval.       

      (2) Inspectors who are to inspect which units, starting on what dates shall be identified by the Presidency, taking into account the seniority of inspectors, group works, the sites of duty, and the properties of duty and shall be notified thereof minimum 15 days prior to the commencement of inspection before the auditing program is put to implementation. During the implementation of the program, the guidelines of inspection shall be stated by instructions.

               Reporting

                ARTICLE 125 - (1) According to the nature of the work done, inspectors shall issue following reports:

      a) Auditing report,

      b) Replied report,

      c) Preliminary examination report,

      ç) Investigation report,

      d) Examination report,

      e) Personnel evaluation report,

      f) General-situation report.     

               Actions to be taken on reports

                ARTICLE 126 - (1) Reports issued by inspectors shall be reviewed by the Presidency and submitted to the Director General for approval.

      (2) As a result of the review of the report by the Presidency:

      a) The inspector issuing the report shall be required by the Presidency in writing to rectify any omitted examinations or errors in fact. All omitted examinations or errors in fact in the report shall be rectified by the relevant inspector upon request by the Presidency.

      b) In the event if the Presidency does not agree to opinions set forth in the report issued by the inspector or if a discrepancy of opinion exists between inspectors as to the results of the report issued by multiple inspectors, then the report shall be submitted to the Director General for approval, as accompanied by the inspector's opinion or discrepant opinions of inspectors as well as the Presidency's opinion.

      (3) The report and attachments thereto accompanied by the Director General's approval shall be sent to relevant units.

      (4) Preliminary examination reports and investigation reports that require an action for penal and legal purposes shall be sent to the Legal Adviser's Office and the Department of Human Resources for information to the Presidency.

      (5) Outcomes of the acts and actions that must be carried out as set forth in reports approved by the Directorate General shall have to be informed to the Presidency by head-office units within not later than three months of the receipt thereof. The Presidency shall quarterly be informed about actions the conclusion of which depends on the judicial or administrative judgment or on any other institution or organization and about other acts and actions that could not have been concluded within three months.

      (6) Actions taken on reports and the outcomes thereof shall be evaluated by the Presidency.      

               Inspector's authority to request information and documents

                ARTICLE 127 - (1) While carrying out their duty, inspectors shall have the authority to request from units subject to audit, and see any and all information deemed necessary, including computerized records, as well as books and documents, moneys and equivalent assets, and retain certified copies thereof and originals thereof if they constitute a proof of corruption; inspect, make inventory counts in safes, storerooms and warehouses and seal the same, and request help in the inspection and counting acts; and request information and documentation from other public institutions and organizations, banks, real and legal persons if necessary.

      (2) Copies of documents whose originals are retained, approved by the seal and signature of inspectors shall be given to managers of the source unit for preservation.

      (3) In cases where an expert examination is required, cost of the work to be done by inspectors shall be borne by the unit or foundation where the audit, examination or investigation is conducted.

               Inspectors' authority to remove from office

                ARTICLE 128 - (1) In cases where so required by public services during any inspection, examination, preliminary examination, or investigation, inspectors can remove from office as a provisional precaution any personnel subject to the Public Officers Law whose presence at that  work is deemed inconvenient.

      (2) In addition, inspectors can make a suggestion to the Directorate General through the Presidency for the removal of foundation managers from office by the court on provisional basis under article 10 of the Law.

               Obligations and responsibilities of the audited

                ARTICLE 129 - (1) In relation to audits, any personnel at the Directorate General's central and country organizations, foundations and other units associated therewith shall have to:

      a) Show to inspectors if so requested all documents, files, papers, moneys and money-equivalent papers and bills, goods and things,

      b) Furnish attested copies of all types of documents and deeds deemed necessary by inspectors or originals of them by retaining certified copies thereof with the inspection seal,

      c) Provide a suitable working environment to inspectors during their inspection for the carrying out of inspection services,

      ç) Organize the activities, workflow, archives and the recording system  of the inspected unit in a manner suitable for inspection,

      d) Answer inspectors' questions promptly.

               Rules for inspectors

                ARTICLE 130 - (1) Inspectors shall not:

      a) Behave so as to upset the prestige and  trustworthiness of the profession,

      b) Audit the foundation they are a member or take place in the management of,

      c) Involve in the enforcement,

      ç) Make any explanation, correction or addition on books and documents they examined, except the date and signature for inspection,

      d) Disclose the place they are to go, the work they are to do and any secrets they learned about,

      e) Accept direct or indirect services and offerings from persons involved in the inspection or give/take something or lend/borrow money to/from them.

               Requirements, test place and announcements for assistant inspectorate

                ARTICLE 131 - (1) Assistant inspectorate shall be the first step to become a Directorate General inspector. To be appointed as an assistant inspector, one shall have to be successful on a test held among persons who acquired the minimum base score in terms of the type of score determined at the Public Personnel Selection Test (KPSS) for positions of group A and the second language proficiency level according to the General Regulations for Testing Persons for First-Time Appointment to Public Positions, which entered into force by the Council of Ministers' Decree no. 2002/3975 of 18/3/2002.

      (2) The assistant inspectorate competition test shall consist of two parts, written and oral, and both parts shall be conducted in Ankara.

      (3) General and specific requirements to be sought for persons to take the competition test, the number of positions with the permission of appointment granted, the minimum number of correct answers at the KPSS second language proficiency test, the type of KPSS score and base scores, the number of persons to be invited, which shall not be more than twenty times the number of positions with the permission of appointment granted, the deadline and place for application for the test, documents required, the place, time and contents of test shall be announced on the Official Gazette and on one of the first five newspapers with the highest circulation issued throughout Turkey for at least once and published on the Directorate General's official internet site minimum 15 days prior to the deadline for application.

      (4) Application and enrollment periods for candidates shall be fixed such that they shall expire minimum 10 days prior to the commencement date of tests.

               Test committee

                ARTICLE 132 - (1) The committee to conduct the competition test shall comprise five persons, including four inspectors to be appointed upon proposal by the President and approval by the Director General, under the chairpersonship of the Guidance and Inspection President. In addition, three reserve members shall be selected by the same procedure.

      (2) Units of the Directorate General can make use of the experts of public institutions and agencies as well as universities in the evaluation of the professional knowledge of candidates.

               Eligibility for taking the test

                ARTICLE 133 - (1) Following conditions shall be sought for taking the test:

      a) To meet the requirements set forth in article 48 of the Public Officers Law,

      b) To be a graduate from a four-year faculty of law, political sciences, economics, management, economical and administrative sciences, architecture or engineering of a university or from a domestic or overseas higher-education institution whose equivalence is acceptable to the Higher-Education Board,

      c) To have not finished the age of 30 on the day of competition test,

      ç) To furnish a declaration in writing, stating that he/she has nothing to prevent him/her from performing his/her duty.

      (2) The number of graduates from faculties of architecture and faculties of engineering needed from which departments shall be determined upon proposal by the President and approval by the Director General and indicated in the announcement.

               Documents required for taking the test

                ARTICLE 134 - (1) Persons to take the test shall apply for the test by furnishing the following documents, including the form in Annex 22 filled.

      a) Declaration of the Republic of Turkey identity number,

      b) 4 document photos,

      c) Original or a Directorate General certified copy of the certificate of graduation,

      ç) Original or a Directorate General certified copy of the KPSS test result certificate.

      (2) Persons who are determined to have declared untrue information in the application form and documents or taken the test despite he/she did not satisfy the conditions shall forfeit their right as regards the test.

               Test entry certificate

                ARTICLE 135 - (1) Candidates to take the test for assistant inspectorate shall be issued a photographed test entry certificate by the Presidency.  Candidates with no test entry certificate shall not be admitted to the test.

               Topics of test

                ARTICLE 136 - (1) The assistant inspectorate competition test shall cover topics selected from among the following,

      a) Accounting, economics, finances, and law for graduates from a faculty of law, political sciences, economics, management, or economical and commercial sciences,

      b) Field information for the departments set forth in the test announcement for graduates from a faculty of architecture or engineering,

      c) Precis writing.

               Preparation of written-test questions and test process

                ARTICLE 137 - (1) Written-test questions and the scores assigned thereto shall be determined by the test committee by topics. Question papers shall be signed by the test committee. Such papers shall indicate the scores assigned to questions and the time for tests.

      (2) Question papers shall be delivered to the test committee chairperson in sealed envelopes.

      (3) The test shall start at the hours announced. The sealed envelope containing the test questions shall be opened before persons attending the test and distributed to candidates or shall be dictated thereto.

      (4) Candidates shall write their answers on sealed test papers.

      (5) At completion of the test, the opening of question papers duly, the test start and ending hours, the number of test takers and the number of sheets used thereby shall be recorded on the minutes.

      (6) The minutes issued and the test papers gathered shall be put in a seal, which then shall be closed, sealed and delivered to the Committee Chairman on a protocol.

      (7) In the test process:

      a) Candidates arriving after question envelopes are opened shall not be admitted to the test.

      b) Test takers shall not be allowed to have any paper, notes, books, mobile phone and electronic device with them.

      c) Answers shall only be written on answer papers. Candidates shall not keep open the identity section on their answer paper nor shall put any writing, marking or similar other symbol on the paper indicating to identity.

      ç) Persons who upset the test discipline and order during the test or who crib or take the test in lieu of another person shall be removed off the test. Such occurrences shall be recorded on the minutes by the test committee. Candidates removed off the test shall no more be admitted to assistant inspectorate competition test.

      (8) If necessary, the Student Selection and Placement Center or a university can be engaged to conduct the test within the framework of a protocol.

               Evaluation of written test and announcement of results

                ARTICLE 138 - (1) If the written test is conducted by the test committee, answer papers shall be evaluated by that committee.

      (2) In order to be deemed successful on the written test, one must get minimum 60 points over 100 full points for each group with an average score of 65 points.

      (3) A list of candidates successful on the written entry test shall be drafted by candidate numbers and announced, following which successful candidates shall be invited to the oral test with a letter.

               Oral test process, evaluation and the minutes of results

                ARTICLE 139 - (1) Oral tests shall be made on the topics included in the written test groups. In addition, the candidate's personal qualities such as his/her capability of representation and expression, conduct and manners shall be taken into consideration.

      (2) At the oral test, the candidate shall be evaluated over 100 full points for all groups by each member of the test committee. The average of such points shall constitute the candidate's oral test score. To be deemed successful on the oral test, the oral test average score shall have to be minimum 65.

      (3) The test committee will record the results of written and oral tests on separate minutes.

               Announcement of competition test scores and results

                ARTICLE 140 - (1) The competition test score shall be the average of written and oral test scores.

      (2) The competition test winners shall be listed on the minutes by the test committee in descending order from the highest score winner. In the case of equality of scores, the written test score shall prevail and in the case of equality again, the second language proficiency shall prevail.

      (3) Principal and reserve candidates corresponding to the number of positions for appointment shall be announced according to performance scores.

      (4) Winning candidates shall be notified in writing thereof. A list of winners shall also be announced on the official internet site of the Directorate General.

               Appointment to assistant inspectorate

                ARTICLE 141 - (1) Appointments to assistant inspectorate shall be made according to the order of performance scores.

      (2) Instead of principal candidates who failed to come for appointment or who was appointed but failed to commence office or who commenced office but resigned therefrom, reserve candidates shall be called within 1 year of the date of test.

               Training of assistant inspectors

                ARTICLE 142 - (1) In the training of assistant inspectors, the following guidelines shall be observed.

      a) Ensure that assistant inspectors acquire acknowledge, experience and expertness on the legislation relating to their field of authority and on international audit standards and methods,

      b) Encourage them to participate in scientific studies and researches and in professional, social and cultural activities,

      c) Ensure that they are trained on reporting procedures and techniques,

      ç) Provide opportunities to them to improve their second language proficiency.

      (2) Assistant inspectors shall be trained according to the following program in their three-year assistantship period.

      a) In the first stage, they shall be provided with in-service training to let them acquire knowledge about the legislation and audit practices.

      b) In the second stage, assistant inspectors shall be trained by assigning inspection, examination, research and investigation activities to them in the accompaniment of inspectors. Inspectors shall, in relation to the assistant inspector working in his/her accompaniment, issue a report for the improvements achieved by the assistant inspector as well as his/her overall conduct and manners. Assistant inspectors who failed to complete the second stage or who is not granted authority, shall not be allowed to perform audit alone. Inspectors shall be responsible for the training of assistant inspectors in the best way.

      c) In the third stage, assistant inspectors shall be caused to prepare a thesis on topics as shall be determined by the Presidency for purposes of developing their capability of research and causing them to acquire detailed knowledge on a certain topic. Such theses shall have to be given to the Presidency two months prior to the expiry of the training period. Theses shall be evaluated by a commission comprising the President and two inspectors and defended by the respective assistant inspector before the commission. Theses shall be evaluated on 100 full points. No other duty shall be assigned to the assistant inspector within 2 months preceding the date of the defense of thesis.

               Authorization

                ARTICLE 143 - (1) The assistant inspector may be equipped with the authority for inspection, examination, preliminary examination, research and investigation of his/her own motion upon proposal by the President and approval by the Director General at completion of the second stage, taking into consideration the evaluation reports issued by the accompanying inspector at the end of the accompaniment period.

               Discharge prior to qualification test

                ARTICLE 144 - (1) Persons who are determined in the assistant inspectorate period to have failed or who performed manners, banned acts and behaviors that were incompatible with the attributes of an inspector will be appointed to an office other than inspectorate, which is appropriate to his/her level of education and degree of position without awaiting the qualification test.

               Qualification test committee, test procedure and topics

                ARTICLE 145 - (1) For the qualification test, a test committee shall be composed of five members, including four inspectors assigned upon proposal by the President and approval by the Director General, chaired by the Guidance and Inspection President. In addition, three reserve members shall be identified.

      (2) The qualification test will be made to determine if assistant inspectors have learned about the legislation relating to their field of duty and the enforcement thereof as well as the auditing, examination, investigation and research methods and if they have acquired the knowledge and behaviors entailed by their profession.

      (3) The qualification test shall be made in two stages, written and oral. Candidates winning the written test shall be admitted to the oral test.

      (4) Assistant inspectors to take the qualification test shall be notified of the test date, time and place minimum 2 months prior to the date of test.

               Preparation of written-test questions, evaluation of results

                ARTICLE 146 - (1) The conduct of the written test and the evaluation of results shall be according to the arrangement in article 138.

      (2) In the event of any candidate fails to take the test due to a sickness, death of a relative or another similar valid reason and if such event is evidenced with an official document therefor, then the test committee may decide for the conduct of the test for such candidate on a later date. This shall be recorded on the minutes and the candidate shall be notified in writing of the new date of test.

      (3) After all papers are read and evaluated, the minutes shall be issued, starting with the highest score winner.

               Oral test and evaluation

                ARTICLE 147 - (1) Results of the written qualification test shall be announced in a list and shall also be notified to the test takers in writing. Notices made to successful assistant inspectors shall indicate the day, hours and place of the oral test.

      (2) The oral test shall be made within 15 days of the announcement of the results of the written test.

      (3) The oral test shall begin on the day and at the hours notified. Assistant inspectors shall be admitted to the oral test in the winning order on the written test.

      (4) At the oral test, topics of the written test as well as general culture, reasoning, comprehension, expression, capability of representation and behaviors shall be evaluated.

      (5) At the oral test, the chairperson and each member of the test committee will score over the 100 full points and all the scores given shall be averaged. To be deemed on the oral test, the average soccer must not be lower than 70.

      (6) Results shall be recorded on the minutes in the order of performance.

               Qualification test score and order of performance, announcement of results

                ARTICLE 148 - (1) The inspection qualification test score shall be the average of written test and oral test scores. The qualification test performance listing shall be done by starting with the highest average test score, and shall be signed by the test committee.

      (2) In the case of the qualification test average score equality, seniority in inspection assistantship shall be taken into account for the listing.

      (3) Test results shall be notified in writing.

      (4) The Presidency shall transmit the test results for appointment and test documents to the relevant unit upon approval thereof by the Director General.

               Persons not taking and those failing on the test

                ARTICLE 149 - (1) Persons failing on the inspectorate qualification test will be granted another right of test within six months of the inspectorate qualification test.

      (2) Persons who again fail on the qualification test and persons who fail to take the test without a certified or valid reason therefor will be appointed to another office at the Directorate General appropriate to their level of education and degree of position.

               Appointment to inspectorate

                ARTICLE 150 - (1) Assistant inspectors who succeed on the qualification test shall be appointed to vacant inspectorate positions in the order of performance, which order shall constitute a basis for inspectorate seniority.

      (2) An inspector who resigned from office by his/her own wish or by transfer after he/she acquired the capacity of inspector may upon their application be re-appointed to the inspectorate position upon an affirmative opinion of the President.

               Promotion

                ARTICLE 151 - (1) Promotion of an inspector to chief inspectorate shall be based on his/her professional ability and seniority.

      (2) For promotion to chief inspectorate, inspectors must function as an inspector for seven year, excluding the assistant inspectorate.

      (3) For promotions, reference shall be made to the President's opinion in writing.

               Seniority of inspectors

                ARTICLE 152 - (1) Seniority in inspectorate shall be the period of time spent actually in this profession. This period shall also include temporary leaves such as for the military service, sickness and training activities at home or abroad.

      (2) In the case of an equal time basis for seniority in inspectorate, seniority shall be determined according to the order of performance on the competition test for assistant inspectors and according to the order of performance on the qualification test for inspectors.

      (3) For determination of the order of seniority among chief inspectors, the basis shall be the date of appointment to chief inspectorate, seniority in inspectorate for chief inspectors appointed on the same date, and the order of performance on the qualification test for chief inspectors having the same seniority in inspectorate.

      (4) Persons who returned to inspectorate after functioning as the Guidance and Inspection President shall be deemed to have the highest seniority among their period-mates. In the case of multiple inspectors in such situation from the same period, the basis shall be the seniority in inspectorate.

      (5) In relation to assistant inspectors who commenced office at the Prime Ministry after an entry test made on the same date, seniority of those appointed to inspectorate later shall come after other period-mate inspectors.

      (6) Persons who returned to inspectorate after they resigned from office subsequent to the acquisition of the capacity of inspector shall be placed at the end of their period-mates. For persons who returned after they resigned from office at the Prime Ministry or from other public office, the basis for seniority shall be the actual service at the Prime Ministry.

               Appointment to Guidance and Inspection Presidency

                ARTICLE 153 - (1) The Guidance and Inspection President shall be appointed from among persons who functioned as a chief inspector at the Directorate General for minimum 5 years upon proposal by the Director General and approval by the Prime Minister or the State Minister delegated thereby.

               Inspectorate security and temporary appointment to administrative positions

                ARTICLE 154 - (1) Unless inspectors themselves so wish or a medical, ethical or professional incapacity thereof incompatible with the requirements of auditing service was determined, no inspectors shall be removed from office nor shall they be appointed to any other administrative office. Cases of incapacity shall be evidenced with documents such as a court order, health report or a report issued by a commission comprising minimum two inspectors, including one being senior.

      (2) Without prejudice to their right of inspectorate, inspectors may be appointed to any other administrative position on temporary basis.

               Inspector's identity card and seal

                ARTICLE 155 - (1) Inspectors and assistant inspectors shall be given an identity card signed by the Director General, indicating their authority, title and identity information.

      (2) Inspectors and authorized assistant inspectors shall be given a charter and a seal. Such charter and seal shall have to be kept to prevent the seizure thereof by others and the Presidency shall have to be notified in the case of the lost thereof.

      (3) An inspector or assistant inspector resigning from office shall have to hand over his/her official seal and charter and identity card to the Presidency.

 

     SECTION THREE

      Foundation Expertness and Expert Assistantship

               Assistant Expertness

                ARTICLE 156 - (1) The Foundation Expertness will begin with the position of assistant expertness. For appointment to the assistant expertness, one shall have to be successful on the competition test held among persons who achieved the minimum score in the type of score determined by the Directorate General at KPSS test made for positions of group A.

               Competition test

                ARTICLE 157 - (1) Competition tests for assistant expertness positions shall be held according to the positions and requirements in the framework of the General Regulations for Testing Persons for First-Time Appointment to Public Positions where selection shall be made from among the number of candidates determined, which shall not be more than twenty times the number of positions with the permission of appointment granted, according to the results of KPSS test made by the Student Selection and Placement Center and basing on the minimum base score set forth in the test announcement.

               Conditions sought

                ARTICLE 158 - (1) For eligibility for the competition test, the following conditions shall be sought:

      a) To satisfy the conditions set forth in article 48 of the Public Officers Law,

      b) To have achieved the minimum score in the types of KPSS score set forth in the competition test announcement,

      c) To have been successful at a minimum grade of B with one of the languages identified by the Directorate General on the KPDS level determination test,

      ç) To have not finished the age of thirty on the date of test,

      d) To be a graduate from a domestic or overseas faculty or college providing studies for minimum four years, where the equivalence of the latter shall have been approved by the Higher-Education Board.

               Application for competition test and application documents

                ARTICLE 159 - (1) Candidates to take the competition test shall attach the following documents to the application form acquired from the Directorate General:

      a) Declaration of the Republic of Turkey identity number,

      b) 4 document photos,

      c) Original or a Directorate General certified copy of the certificate of graduation,

      ç) Original or a Directorate General certified copy of the KPSS test result certificate,

      d) Original or a Directorate General certified copy of the KPDS test result certificate.

      (2) Other documents listed in paragraph one which may be required under the test announcement must be delivered to the Human Resources Department by hand till the end of the working hours on the deadline for application. For applications sent by mail, documents referred to in paragraph one must be received by the Directorate General correspondence section not later than the deadline set forth in the test announcement. Postal delays shall not be taken into consideration.

      (3) Persons who are determined to have declared untrue information shall not be admitted to the competition test and for any such persons who took the test, their test performance shall be deemed invalid and they shall not be appointed. Even if he/she is so appointed, such appointment shall be cancelled. An information of crime will be issued to the Public Prosecutor's Office for legal proceeding about them.     

                Test preparations and test entry certificate

                ARTICLE 160 - (1) The Human Resources Department shall carry out preparations for the competition test, examine applications therefor and determine if candidates satisfy the conditions sough.

      (2) Documents of candidates who fail to satisfy necessary conditions will be returned if so requested thereby.

      (3) Candidates entitled to entry to the competition test shall be issued a photographed entry certificate each by the Human Resources Directorate. The test entry certificate shall include the identity information and the place and date of test. Candidates shall not be admitted to the test without a test entry certificate.

               Test committee

                ARTICLE 161 - (1) The test committee shall be composed of members selected subject to approval by the Director General from among heads of departments, unit directors, foundation experts or other entity personnel specialized in their field, including five principal members chaired by the assistant to the Director General to whom the Human Resources Department is attached, as well as three reserve members. If so needed, maximum two persons from among university academics can be appointed as principal members of the test committee.

               Competition test announcement    

                ARTICLE 162 - (1) The number of positions with the permission for independent appointment granted as well as their ranks, titles and grades, branches of education and quotas therefor, requirements for participation in the competition test, the types of KPSS scores and minimum scores, the number of candidates to be called according to the order of scores, the deadline for and place of application, documents to be required at application, the place, time, contents of and the evaluation method for test, and documents to be required at appointment shall be announced on the Official Gazette and on one of the first five newspapers with the highest circulation issued throughout Turkey for at least once and published on the Directorate General's official internet site minimum 15 days prior to the deadline for application.

      (2) The test announcement shall clearly state that assistant experts shall be subjected to an evaluation for their capability of reading Ottoman manuscripts and printed materials and translating them into Turkish at the qualification test.

      (3) In the event if for the quota of assistant expert positions as to each branch of education, a sufficient number of candidates has not applied for the competition test as predicted by the Directorate General, changes may be made to the branches of education according to the condition of positions and requirements.

      (4) Topics of the test, the procedure for written and oral tests, and the test evaluation method shall be announced prior to the test. The following documents shall be required from candidates who won on the test.

      a) Certificate of graduation or an approved copy thereof approved by the Directorate General,

      b) Certificate of good conduct,

      c) Certificate of clearance from the military service obligation,

      ç) Declaration of freedom from any condition likely to obstacle one to perform his/her duty,

      d) 4 photos.

               Competition test scores and announcement of results

                ARTICLE 163 - (1) The competition test performance score shall be an arithmetic average of written and oral test scores, provided that minimum 65 points shall have been obtained over 100 for each.

      (2) The test committee shall deliver a competition test performance listing as to branches of education and a list of candidate assistant experts to the Directorate General within 5 business days of the completion of the oral test. Winning candidates shall be notified thereof in writing. The list of winners shall also be announced on the official internet site of the Directorate General.

               Term of office for assistant experts, appointment and assignment

                ARTICLE 164 - (1) Appointment of candidates as an assistant expert shall be made according to the performance level of candidates. The term of office shall be minimum three years for assistant experts.

               Determination of the subject of thesis

                ARTICLE 165 - (1) Having received a positive staff evaluation after spending two years as a candidate, the assistant expert shall determine a subject for his/her thesis as relating to the field of duty of the Directorate General and state the same to the Human Resources Department within one month. Such subject of thesis shall be finalized with approval thereof by the Directorate General and notified to the relevant person.

      (2) The two-year period shall not include any unpaid leaves or the military service period.

               Guidelines for preparation of thesis

                ARTICLE 166 - (1) The thesis of expertness shall be prepared within one year of the notification of the relevant person of the subject of thesis. Within the last three months of this period, assistant experts shall essentially be not assigned any other duty. The thesis shall have an abstract section prepared in a second language.

      (2) In relation to the preparation of the thesis, the subject of thesis shall have to be not examined and defended in the same way at another institution or organization in terms of contents and conclusions under the name of specialization, master thesis, dissertation thesis or other. The thesis prepared by the assistant expert must include his/her opinions and comments and be according to the ethics of scientific studies.

      (3) From among foundation experts or persons who have the qualities set forth in article 158(1)(d), a thesis adviser shall be assigned to each assistant expert by the Directorate General. The thesis adviser shall superintend the thesis work of the assistant expert.

               Qualification test commission

                ARTICLE 167 - (1) The Qualification Test Commission shall be composed of five principal members chaired by the assistant to the Director General to whom the Human Resources Department is attached, as well as three reserve members subject to approval by the Director General. If so needed, maximum two persons from among university academics can be appointed as principal members of the test commission.

      (2) The commission shall meet with the full number of members, where decisions shall be made with the majority of votes and no abstention vote shall be cast.

               Delivery of thesis

                ARTICLE 168 - (1) The assistant expert shall deliver the thesis prepared to the Human Resources Department, which shall give one copy thereof to the thesis adviser. Within fifteen days, the thesis adviser shall issue his/her report on the thesis and sent to the relevant department. The Human Resources Department shall distribute the thesis to commission members with the report for evaluation.

      (2) If the assistant expert fails to deliver his/her thesis in time due to an excuse, he/she may be granted an additional time as long as required by the event of force majeure subject to approval by the Directorate General.

               Thesis evaluation

                ARTICLE 169 - (1) On the day of evaluation fixed by the Directorate General, the assistant expert shall defend his/her thesis orally and answers the questions of members. The day of evaluation shall be notified to the assistant expert by the Human Resources Department minimum one month prior thereto.

      (2) The commission will evaluate the thesis and decide with the majority of votes if it is successful. Shortcomings of a thesis deemed not successful shall be indicated in the grounds with the reasons thereof.

      (3) The assistant expert whose thesis is deemed not successful will be granted a second right. The assistant expert shall exercise the second right by correcting the previously-prepared thesis within three months of the announcement of results, where the corrected thesis shall be evaluated by the same procedure.

      (4) The assistant expert whose thesis is deemed not successful for a second time shall completely forfeit his/her right of entry to the qualification test and will be appointed to an office in the Directorate General appropriate to their level of education and position grade.

               Qualification test announcement

                ARTICLE 170 - (1) The qualification test date shall be fixed by the test commission and announced within one month prior thereto.

      (2) The qualification test shall be conducted by the Directorate General within not later than one month of the notification of the test as successful.

               Requirements for taking qualification test

                ARTICLE 171 - (1) In order to take the qualification test, the assistant expert must have worked three years, his/her thesis must have been deemed successful and his/her staff evaluation grade must be positive.

      

               Qualification test and evaluation

                ARTICLE 172 - (1) Assistant experts whose thesis is deemed satisfactory shall be subjected to an oral test on the following:

      a) Professional knowledge,

      b) Legislation involving the field of duty of the Directorate General.

      (2) At the oral test, each candidate shall be given a score over 100 full points by each of the test committee members, the arithmetic average of which shall be the test score.

      (3) To be deemed successful on the oral test, the test score must be minimum 70.

      (4) In addition, assistant experts to be recruited under article 162(2) shall be subjected to a written test at a special session to measure if their Ottoman language proficiency is satisfactory. At such test, assistant experts must obtain minimum 70 over 100 full points.

               Notification of qualification test results

                ARTICLE 173 - (1) Within 5 business days of the completion of the oral test, a list of results shall be submitted to the Directorate General by the Commission for approval, and the results shall be notified to relevant persons.

               Appointment as assistant expert

                ARTICLE 174 - (1) The assistant expert deemed successful at the qualification test shall be appointed as a foundation expert by the Directorate General, provided he/she shall be satisfying the other conditions sought for expertness. If multiple assistant experts are to be appointed, the order of performance among them shall be determined by the Directorate General by evaluating their work in the assistant expertness period and their thesis evaluation results together.

               Persons not taking test and persons failing on test

                ARTICLE 175 - (1) Persons failing on the assistant expertness qualification test shall be granted a second right within six months of the test.

      (2) Persons failing on the qualification test made after that period or those who have not taken the test without a documented or justified reason will be appointed to an office in the Directorate General appropriate to their level of education and position grade.

               Duties of assistant experts

                ARTICLE 176 - (1) Assistant foundation experts shall have to:

      a) Perform the duties under the applicable legislation,

      b) Conduct with foundation experts researches and examinations in the fields of duty of the Directorate General,

      c) Carry out other duties assigned by the Directorate General.

               Duties of experts

                ARTICLE 177 - (1) Foundation experts shall have to:

      a) Perform the duties under the applicable legislation,

      b) Conduct researches and examinations, produce and develop projects in the scope of the duties and objectives of the Directorate General,

      c) Assist in the legislation work involving the field of activity of the Directorate General,

      ç) Carry out other duties assigned by the Directorate General.

 

     SECTION FOUR

      Miscellaneous and Last Provisions

               Assignment of endowed cultural assets   

                ARTICLE 178 - (1) Endowed cultural assets created by way of a foundation and vested in the ownership of the Treasury, a municipality, a private administration or a village entity by any means whatsoever will be registered in the name of annexed foundations by the real estate registration office.

      (2) Determination of cultural assets created by way of a foundation will be made with one or several of documents such as charters of foundation, records in foundation or real estate registration logs, cadastral determination documents, charters or written orders of sultans, ancient bills, check records, inscriptions, historic records, museum records, registration records, documents of ownership, bills of debt, separation, private treasury, trustee, tax contractor, cavalry instruments.

      (3) In the event if an ancient work is determined by means of documents referred to in paragraph two to be an endowed cultural asset that has been created by way of a foundation and upon request by the regional directorate, it shall be registered in the name of fused foundations.

               Evacuation of endowed cultural assets

                ARTICLE 179 - (1) If the assigned endowed cultural asset has been leased or occupied by any means, the lessee or the occupier shall have to evacuate the same together with the incidents and appurtenances thereof without subjecting the same to any change, and deliver the same to the Directorate General within thirty days of the date of request.

      (2) If not evacuated within such time, the real estate shall be ensured by the local governor to have been evacuated within not later than 15 days upon request by the regional directorate.

               Conservation of found. cultural assets and notification of development practices

                ARTICLE 180 - (1) In arranging conservatory development plans, public institutions and agencies shall have to obtain the affirmative opinion of the Directorate General on issues relating to endowed cultural assets.

      (2) The conservatory development plan, working development plan and subdivision plan efforts shall be followed up regularly by regional directorates.

      (3) Real estates belonging to fused foundations shall be subjected to a development arrangement such that their nature of property shall be maintained. Endowed real estates of the nature of property shall not be assigned non-property-wise functions such as a road, square, nature park, car park, kindergarten, green area, mosque, police station, school, public service area, municipal service area, etc. In the event if it is determined that any such real estate has been subjected to a development arrangement so as not to maintain its nature of property, the respective institution shall be required to make a development plan modification appropriate to the real estate's nature of property.

               Concession price

                ARTICLE 181 - (1) Operations for real estates that bear an annotation for endowment shall be carried out by regional directorates.

      (2) Real estates with an annotation for endowment will be determined if they are included among real estates which have not been allocated to a combined charity from separated lands or included among real estates whose taxes are endowed. Such determination will be carried out by a commission composed within the Culture and Registration Department of expert persons.

      (3) Such real estates subjected to determination by the commission will be abandoned to free transaction without the payment of concession price.

               Representation of Directorate General

                ARTICLE 182 - (1) The regional director can represent the Directorate General before courts, other bodies and authorities or can in that capacity appoint other officers as his/her counsel.

               Regulations abrogated

                ARTICLE 183 - (1) The Prime Ministry Directorate General of Foundations Regulations for Monthly Salaries to the Needy and Endowed Charities published on the Official Gazette no. 20386 of 28/12/1989; the Directorate General of Foundations Inspection Board Regulations published on the Official Gazette no. 21689 of 5/9/1993; the Regulations for the Allocation of Endowed Real Estate Charities published on the Official Gazette no. 23362 of 4/6/1998; the Regulations for Procedures and Guidelines Applicable to the Diagnosis and Treatment of Poor and Lonely Patients at the Bezm-i Âlem Valide Sultan Endowed Hospital for the Poor and Destitute published on the Official Gazette no. 24348 of 20/3/2001; the New Foundations Unit Regulations published on the Official Gazette no. 24476 of 28/7/2001; the Regulations for Community Foundations To Acquire and Do Acts of Disposition on Real Estates and Register the Same in their Name published on the Official Gazette no. 25003 of 24/1/2003; the Directorate General of Foundations Scholarship Regulations published on the Official Gazette no. 26283 of 8/9/2006 have been abrogated.

               Initial election for Council members

                PROVISIONAL ARTICLE 1 - (1) Within not later than one month of the entry into force of these Regulations, the process will begin for the election of Council members in accordance with the procedures and guidelines set forth in these Regulations.

               Current management board members

                PROVISIONAL ARTICLE 2 - (1) Terms of office of the members of the Community foundation management board who are on duty on the entry into force of these Regulations and are not contrary to article 9 of the Law shall continue until new elections.

               Internal-audit reports

                PROVISIONAL ARTICLE 3 - (1) Internal-audit reports for foundations for 2008 shall not have to be issued by certified auditors. Such reports shall however have to be issued and sent in accordance with the procedures and guidelines included in these Regulations.

               Entry into force

                ARTICLE 184 - (1) These Regulations shall enter into force on the date of publication thereof.

               Enforcement

                ARTICLE 185 - (1) Provisions of these Regulations shall be enforced by the Minister to whom the Directorate General of Foundations is attached.

Foundations Law

FOUNDATIONS LAW

      NO 5737

      DATE OF ADOPTION 20 FEBRUARY 2008

      PUBLICATION IN THE OFFICIAL GAZETTE 27 FEBRUARY 2008

     CHAPTER ONE

      General Provisions

     Object

      Article 1- This Law has been prepared to set out the rules and procedures relating to the management, operations and monitoring of the foundations; to ensure that their movable and immovable listed properties at home and abroad are to be registered, safeguarded, repaired and maintained; to secure that the assets of the foundation are economically managed and exploited; and to define the organization, tasks, powers and responsibilities of the Directorate General of Foundations.

     Scope

     Article 2- This Law covers fused (mazbut), annexed (mülhak) and new foundations, Non-Muslim community and artisans' foundations, and the Directorate General of Foundations.

     The international principle of reciprocity shall be reserved in the implementation of the law hereof.

     Definitions

     Article 3- For the purposes of enforcing this Law

     Directorate General or the Supervision Authority refers to the Directorate General of Foundations.

     Director General refers to the Director General of Foundations;     

      Council refers to the Foundations Council;

     Foundations refer to the fused (mazbut), annexed (mülhak), Non-Muslim community  and artisans' foundations, and new Foundations;

     Charter refers to the document that covers and lays down the property, foundation terms, the wills of the founder grantor for the fused (mazbut) and annexed (mülhak) foundations as well as the Non-Muslim community   foundations;

     1936 Declaration refers to the declaration submitted by the Non-Muslim community   foundations under the Foundations Law no. 2762;

     Deed of Trust refers to a document of a foundation set up under the abolished Turkish Civil Law no. 743 and the Turkish Civil Law dated 22/11/2001 with no. 4721 that lays down the property and terms of foundation;       

     Fused (Mazbut)Foundations refer to those ones to be administered and represented by the Directorate General under this Law, and those ones which were founded before the enforcement date of the abolished Turkish Civil Law no 743 and are administered by the General Directorate of Foundations in accordance with the Foundations Law no. 2762;  

     Annexed (Mülhak) Foundations refer to those foundations which were set up before the enforcement date of the abolished Turkish Civil Law no. 743, whose administration is granted to the descendants of the founder-grantor;   

     Non-Muslim community  Foundations refer to those foundations that belong to the non-Muslim communities in Turkey, whose members are citizens of the Turkish Republic and that are vested with a legal body status under the Foundations Law no. 2762, irrespective of if they have a charter or not;

     Artisans' Foundations refer to foundations that were established before the enforcement of the foundations Law with no: 2762 and which are managed by the Board of Directors selected by the artisans';

     New Foundations refer to the foundations set up under the abolished Turkish Civil Law No: 743 and the applicable Turkish Civil Law No: 4721;

      Branch refers to a subunit opened under the new foundations in order to pursue the operations of the foundation, which lack a legal body status and which comprise bodies;

      Representative office refers to a subunit opened under the new foundations in order to pursue the operations of the foundation, which lack a legal body status and which does not comprise any body;

      Foundation Management refers to the body that is authorized to represent and administer the Foundation according to the charter, the 1936 Declaration, deed of trust, the Turkish Civil Law No: 4721 and this Law in annexed (mülhak), Non-Muslim community  and new foundations;

     Foundation Manager refers to those persons authorized to manage and represent the foundation in the annexed (mülhak), Non-Muslim community , artisans' and new foundations under the Charter, the 1936 Declaration, the deed of trust, the Turkish Civil Law No: 4721 and this Law, or any persons having an office in the authorized and competent bodies;

     Charities refer to those goods and services directly put to the use and service of the society by the fused (mazbut), annexed (mülhak), Non-Muslim community, artisans' and new foundations.

     Rental-yielding real estate refers to those movable and immovable properties that have to be used to generate income in order to realize the objective and operations of the foundation;

     Land-rented Foundations refer to those foundation lands title of which belongs to the foundation where structures and trees are owned by the person who has the right of disposal, provided that the rental is paid on an annual basis;

     Double-rate rental Foundations refer to those lands of a foundation let for an indefinite term against a fee paid in advance close to its value plus an annual rental

     Concession Fee refers to a fee charged and collected against the free disposal and exploitation of the land-rented and double-rate rental immovable properties;

     Income Surplus refers to the sum that remains outstanding after the performance of the repair works for the charities and the rental-yielding real estates of the foundation as well as the provision of charity services defined in the Charters of the fused (mazbut) and annexed (mülhak) foundations;

     Usufruct right refers to the rights and income surpluses given to the concerned parties according to terms in the charters of the fused (mazbut) and annexed (mülhak) foundations.

      

     SECTION TWO

      Provisions Governing Foundations

     CHAPTER ONE

      Legal entity status, Eligibility, Management and Representation

     Legal entity status

     Article 4- Foundations enjoy a private legal entity status.

     Establishment, assets, branches and representations of new foundations

     Article 5- New Foundations shall be established and shall operate in accordance with the provisions of Turkish Civil Code.

     During the establishment of new foundations, the minimum amount of assets that will be allocated according to its objectives shall be determined by the Council every year.

     New Foundations may establish branches and representative offices for the purposes of achieving its objects laid down in the deeds of trust, provided that they have to file a declaration with the Directorate General of Foundations. The rules and procedures for the issue of a declaration shall be governed in the respective regulations.

     Foreigners shall be able to establish new foundations in Turkey in accordance with the principle of de jure and de factoreciprocity.

     Management and representation

     Article 6- Fused Foundations shall be managed and represented by the Directorate General.

     Annexed (mülhak) foundations shall be managed and represented by those managers to be appointed by the Council in accordance with the terms laid down in the charter provided that they do not contradict with the Constitution. The foundation managers may appoint assistants to help them. Qualifications sought for the managers of annexed (mülhak) foundations and their assistants shall be laid down in a regulation. Charity works shall be conducted and performed by the Directorate General per pro until the person who is not eligible for the manager position because they fail to meet terms laid down in the charter become eligible; the minors or those under the care of a guardian acquire their legal capacity and the vacant manager position is filled.

     Managers for the Non-Muslim community  foundations shall be appointed by their members. The rules and procedures for appointing foundation managers shall be laid down in a regulation.

     The artisans' foundations shall be subject to the provisions governing annexed (mülhak) foundations. These foundations shall be managed by the board of directors appointed by the artisans'.

     The management body of new foundations shall be appointed according to the deed of trust and the majority of those parties holding an office in the management bodies of the foundations should have a domicile in Turkey.

     Foundations to be administered and represented by the Directorate General      

      Article 7- Annexed (Mülhak) foundations for which managers could not be appointed or whose administrative bodies could not be set up for a term of ten years shall be managed and represented by the Directorate General under a court decision.

     No further manager shall be appointed to or elected for those foundations that are embodied in the fused (mazbut) foundations prior to the effectiveness of this Law as well as those that are embodied in the fused (mazbut) foundations under the law hereof.

     The concerned parties' usufruct rights according to their charters are reserved.

     Completion of new foundation bodies

rticle 8- In the event that there is a vacancy in the bodies of new foundations due to death, resignation or any other reason, a new member shall be appointed by the court according to the provisions in the deed of trust; where there is no provision, according to the resolution by the body competent to amend the deed of trust; and where there is no such body, then according to the resolution by the body authorized to carry out execution and upon consultation with the Directorate General.     

 

      Non-eligible parties for the Foundation management

     Article 9- Those who are convicted on the grounds of larceny, qualified larceny, sacking, looting, organized looting, fraud, organized fraud, fraudulent bankrupt, rigging a competitive bidding process, breach of trust, smuggling or for any crime committed against the security of the state shall not be eligible for the manager position.

     Any person who is convicted of above-mentioned crimes after having been appointed as the manager shall be automatically deprived of his position.

     Responsibilities and dismissal of the foundation managers

     Article 10- The foundation managers are obliged to act in line with the foundation's purpose and to comply with the applicable law.

     A foundation manager found not to obey the obligations in paragraph one and who is found:

     a)   to fail to act in accordance with the purpose of the foundation

     b)  not to have used the goods and income of the foundation in accordance with its purposes;

     c)   to cause the foundation to suffer a loss because of his/her gross negligence and deliberate acts;

     d)   to have failed to complete or amend in the permitted term the errors and missing points identified by the Supervision Authority, or insist on acting in violation;

     e)   to have lost his/her legal competence to exercise civil rights; or to have contracted a disease or disability which prevents him/her from fulfilling his/her task on a permanent basis;

     f)   to have been imposed an administrative fine twice pursuant to Article 11 of this Law;

     may be dismissed out of the office under a judgment rendered by the court of first instance where the foundation is situated, and on the basis of the decision of the Council rendered upon the application by the Supervision Authority. In cases which will yield irreparable consequences, upon the decision of the Council the court shall be asked by the Supervision Authority to order an interlocutory injunction for the temporary suspension of the management body from the office and for the management of the foundation by a trustee until the finalization of the court case.

     Any foundation manager dismissed from his/her office shall not be eligible for a membership to the Council and cannot be eligible to hold office in the same foundation's management and auditing bodies for a period of five years.

     A foundation manager dismissed from his/her office on the grounds defined and given in paragraphs (c), (e) and (f) hereof shall be deemed to be also dismissed from the management position of another foundation (if any)  and shall be ineligible for such offices in the management and auditing bodies of any foundation for a term of five years.

      Any person involved in the foundation's management as well as foundation employees shall be liable for any loss or damage to the foundation due to their respective gross negligence and willful abuses.

      Foundation managers cannot be dismissed or suspended from the office without any court order.

     Administrative fine

     Article 11- A foundation management that fails to deliver on time those declarations, documents and details requested under this Law in spite of the notice served by the Directorate General; that causes the bodies to convene in violation of the charter or the deed of trust or makes false declarations shall be imposed by the Directorate General an administrative fine of five hundred Turkish Liras for each of these acts. An objection may be lodged within fifteen days from the date of the service according to the provisions of Law No:5326 on Misdemeanors dated 30/03/2005.      

     CHAPTER TWO

      Foundation's Assets and Operations

     Foundation's acquisition of property, replacement of rental-yielding real estates

     Article 12- Foundations may acquire goods, and have any disposition thereon.

     The Council shall be authorized to replace, convert to cash or exploit those rental-yielding real estates or rights held by the Directorate General or the fused (mazbut) foundations with those ones which are more useful.

     Concerning annexed (mülhak), Non-Muslim community , artisans' foundations and new foundations, those goods and rights allocated to the foundation at the establishment may be replaced with more useful ones or converted to cash with a court decision if there are justified reasons, following the application by the foundation's management body and consultation with the Supervision Authority; whereas their goods and rights acquired at a later stage may be replaced with more useful ones or converted to cash upon the decision of the competent body of the foundation and on the basis of the report to be prepared by independent expert institutions.

     Foundation managers shall notify the Directorate General of the immovable properties they have acquired or replaced within one month from their registration with the property registry.

     Article 35 of the Law No:2644 on Property Registry dated 22/12/1934 shall be applicable for the acquisition of immovable assets by the foundations, a majority of the founders of which are composed of foreigners.

     Registration of immovable in the foundation's name

     Article 13- Upon the request of the Directorate General, the unregistered charity immovable of fused foundations shall be registered by the property registry office in the names of the respective foundations.

     Sales and concession values of rental-yielding immovable properties belonging to annexed (mülhak) and fused (mazbut) foundations, or immovable goods to be purchased, bartered or re-constructed shall be registered with the property registry office in the name of their respective foundations pro rata with the share held by that foundation.

     Change in objective and function

     Article 14- Where the fulfillment by foundations of the conditions in their charters becomes - de jure or de facto - impossible, the Council shall be authorized to change these conditions or to adjust the monetary values in their charity conditions according to current foundation revenues upon a proposal by the foundation's managers in the annexed (mülhak), Community  and artisans' foundations and by the Directorate-General in fused (mazbut) foundations, provided that these shall not be inconsistent with the will of the founder grantor.

      Qualities and exploitation of charity immovable

     Article 15- Charity immovable of the Foundations cannot be pledged or attached; the statute of limitations leading to the acquisition of ownership and easement rights shall not be applicable.

     Those immovable properties belonging to the Directorate General, annexed (mülhak) or  fused (mazbut) foundations which cannot be used for the purposes they were originally endowed without violating the laws or public order or which turn out to be out of use or which cannot be used, partly or entirely, as a charity may be converted to a charity with the same or a similar purpose or may be turned into a rental-yielding real estate or may be turned into cash under a resolution by the Council in the case of fused foundations and under a resolution adopted by the Council upon the demand of the foundation manager in the case of annexed (mülhak) foundations. The cash may be allotted to another charity in the same manner. No fee shall be payable for allotments or transfers within the same foundation.

     Allotment of charity immovables

     Article 16- A function shall be allotted by the Directorate General to the charity immovables belonging to the fused (mazbut) foundations in line with primarily its respective charter. Any charity immovable which cannot be exploited or utilized by the Directorate General may be rented out until they can actually be used for their original purposes.

      For the purposes of making charity immovable functional, Directorate General may allot charity immovable to public entities and institutions, to foundations with similar objectives or to associations working for public benefit against their repair and restoration works under its supervision, in order to ensure their use for the services defined in the foundation charter.

     The Directorate General shall be consulted for its opinion for the allotment of the charity immovable which belongs to a annexed (mülhak) foundation.

      The allotted immovable shall not be used in any commercial business; in the event it is determined there is a usage that violates the objective of the allotment, the immovable shall be evicted by the civil administrative officers of the location where the immovable is situated, upon the Directorate General's demand.

      Immovables that belong to the Community  foundations and that are not used as charity in part or in full may be converted to the rental-yielding property of the foundation based on the Council resolution and upon such a demand by the foundation's management, or may be allotted to another foundation that is the member of the same Community .

     Revert of immovable to the foundation

     Article 17- Where exploiters or owners die away without designating an inheritor, or disappear, leave or become subject to exchange of populations, the title to the double-rate rental or land-rented properties shall be registered in the foundation's name.

     Concession fee

     Article 18- Immovable properties owned by or under the disposition of real persons or legal bodies with a land-rented or double-rental foundation entry thereon shall be left to free disposal upon the payment of a concession fee equal to ten percent of the property tax value applicable on the transaction date. However, those governmental lands that were not allotted to the charities for which mukataa rent is paid and those immovable properties whose charges and tithes belong to the founded foundations shall not be subject to the concession fees.

     For the calculation of the concession fee, the sales value shall be taken as basis for the ones sold by means of forced enforcement or by the removal of the partnership, and the expropriation fee shall be taken as basis for expropriations.

     Unless the entire concession fee is paid in the foundation's name under the provisions of this law, the assignable dispositions on the immovable shall not be registered by the property registry offices.

     As for the foundation entries, provisions set out in other laws for the forfeiting and prescriptive terms shall not be applicable.

     Collecting the concession fee

     Article 19- Concession fees may be paid in advance within sixty days upon the relevant notification or may be bartered with an equivalent immovable or half of it may be paid in advance while the other half may be paid in five equal installments throughout a year.  In case of payments under installation, a first degree and first rank mortgage is charged on the immovable. In the event that any of the installation sums is not paid in time, all of the remaining installments shall become due and payable.

     Unless concession fees charged by the Directorate General are paid on time upon the notification in this respect, they shall be collected along with the delay fine in accordance with the Law for the Collection of Public Receivable no.6183, and shall be credited to the foundation.

     Rental term

     Article 20- The lease term for the immovable properties that belong to the Directorate General and the fused foundations shall be three years in maximum.  For the purposes of rent-outs against repair or construction works based on repair or construction values, the rental term may be agreed to be up to twenty years upon the Director General's approval, and up to forty-nine years upon the Council decision.

     Cultural assets of the Directorate General or fused (mazbut) foundations, which are planned for repair works, and those immovables to be invested in shall be evicted through the civil administration by the end of the rental term upon the Directorate General's request without any further court order but with a one-month notice prior to the expiry of the rental term.

      Foundation forests

     Article 21- Private foundation forests may be planted.

      Conservation of cultural assets of foundations and notification of development projects

     Article 22- Public institutions and bodies shall consult the Directorate General during the preparation of development plans for the conservation of cultural assets of the foundation.

     Any development and parceling plans prepared by the municipalities and other public institutions and bodies in relation to immovable belonging to the Directorate General or fused (mazbut) foundations shall be notified by the relevant agency to the foundation before any publication in relation thereto.

     Development plans for the immovable of fused (mazbut) foundations shall be prepared in a manner to conserve the rental-yielding nature of the real estate.

     Those immovable properties that belong to the Directorate General and fused (mazbut) foundations but which are trespassed or occupied by school, hospital or sports fields in the development plans may be exploited by the Directorate General as a private school, private hospital or sports facility -upon the consent of the relevant ministry- in the event that they are not expropriated by the respective institutions within two years from the date of attestation of the development plan.

     Acquisition through possession

     Article 23- Foundation properties shall not be subject to acquisition through possession.

     Insurance

     Article 24- It is obligatory that rented or allotted immovable of the fused (mazbut) foundations shall be insured by their exploiters in the name of the Directorate General against theft, fire and God's acts.

     International activities

     Article 25- Foundations may establish branches and representation offices abroad; or carry out international operations and cooperation; set up high entities or may become members of organizations established abroad in accordance with their objectives and activities, provided that it is contained in their deed of trust.

     Foundations may receive in-kind and in cash endowments and grants from individuals, institutions and bodies at home or abroad, and may give grants and donations in cash or in-kind form to the foundations and associations located at home and abroad with similar purposes. Cash aids that come from or are sent to abroad shall be remitted and received through and over the banks and shall be notified to the Directorate General. Form and content of the notice shall be laid down in a regulation.

     Establishment of economic enterprises and companies

     Article 26- A foundation may establish and incorporate economic enterprises or firms so as to promote its goals and to generate revenues for itself, provided that the Directorate General shall be given a prior notice.  The revenue generated from economic enterprises including the companies shall not be allotted for any purpose other than the objectives of the foundation. Regarding companies which have been established by foundations where the majority of the founders are foreign nationals or where more than half of the shares are owned by such foundations, the acquisition of property by such companies will be subject to the property acquisition provisions applicable to the same foundations.

     The Directorate General of Foundations is entitled to establish economic enterprises or companies with the incomes and the rental-yielding real estate of the Directorate General and fused (mazbut) foundations, upon the decision of the Council of Ministers. The replacement of company shares and rights with more useful ones, their conversion into cash and exploitation and the utilization of all the rights related to these as well as the utilization of rights related to partnership shares shall be carried out by the Directorate General.

     Rights and assets of dissolved or terminated New Foundations

     Article 27- Any estate and rights remaining after the settlement of the debts of dissolved New Foundations shall be transferred to a foundation with similar objectives in accordance with the provisions stipulated in its deed of trust, or under a court decision after consulting the Directorate General's opinion if no special provisions exist in the deed of trust; as for any estate and rights remaining after the settlement of the debts of terminated new foundations, these shall be transferred to the Directorate General of Foundations.

      

     CHAPTER THREE

      Foundation's cultural and natural assets

     Identification, registration and sustenance of the foundation's cultural assets

     Article 28- Identification, inventory, registration and safeguarding (for the purposes of this term, those properties that belong to the Directorate General and fused (mazbut) foundations) of the immovable and movable cultural assets owned by the foundations at home and abroad as well as the expropriation, exploitation, repair, restoration and -if needed- reconstruction works of the cultural assets of the foundation and conservation areas whose ownership have changed over shall be pursued and carried out by the Directorate General.

     Ten percent of the corporate tax base of enterprises and participations more than fifty percent of the capital of which belongs to Directorate General or fused (mazbut) foundations shall be transferred to the Directorate General in order to be used for the repair of cultural assets belonging to fused (mazbut) foundations with scarce source of revenues.

     The Council shall be authorized to conserve and maintain immovable categorized as cultural assets owned by fused (mazbut) foundations with scarce source of revenues by means of revenues generated by foundations with similar objectives.

      

     Conservation of Foundation's cultural and natural assets

     Article 29- Immovable and movable cultural and natural assets owned by the foundations shall be preserved by the Directorate General, relevant public institutions and their users.

     Transfer of cultural assets of foundations

     Article 30- Cultural assets originating from foundations, the ownership of which have -for whatsoever reason- been passed to the treasury, provincial administrations, municipalities or village legal entities shall be transferred to the fused (mazbut) foundation.

      

     CHAPTER FOUR

      Accounting and Audit of Foundations

      Foundation's accounting

     Article 31- Foundations have to keep and maintain their accounting records in accordance with such rules and procedures to be designated by the Directorate General. Those rules and procedures in relation to the books and records to be kept and maintained shall be regulated in the respective regulation.

     Revenues and expenses of each fused (mazbut) foundation shall be followed separately.

     Foundations shall invest their assets by observing economic rules and risks.

     Obligation to submit statements

     Article 32- Foundation's management shall submit to the Directorate General, within the initial six months of each calendar year, a statement containing a list showing the managers or the members of the board of the foundation; budget and financial statements, activity reports, real estate details, financial charts of the preceding year, documents confirming that these statements are published via appropriate media and means, financial statements of its business operations and subsidiaries as well as other information to be stipulated in the regulation.      

      Audit of Foundations

     Article 33- Internal auditing is a must in annexed (mülhak), Community , artisans' and new foundations. The foundation may be audited by its own bodies or by independent audit firms.

     Foundation managers shall submit the reports of in-house audits which are to be conducted at least once a year and the results to the Directorate General within two months following the date of the report, at the latest.

     The Directorate General shall carry out an audit for checking compliance of the foundation to its objectives and the applicable laws as well as for compliance of its economic enterprises with the legislation and its activities.

     Management and representation expenses

     Article 34- Twenty percent of the annual gross revenues of the fused (mazbut) foundations subject to usufruct rights and those ones temporarily administered by the Directorate General shall be credited to the Directorate General budget for meeting management and representation expenses.

      

     SECTION THREE

      Directorate General of Foundations, Foundations Council, Organization of the Directorate General and Recruitment

      

     CHAPTER ONE

      Directorate General of Foundations

     

      Directorate General of Foundations

     Article 35- Directorate General of Foundations with a legal entity status has been set up under the Prime Ministry in order to fulfill the tasks assigned to them hereunder.

     If deemed necessary, the Prime Minister may exercise, through a State Minister he will delegate, the powers granted to him in relation to the management of Directorate General.

     Directorate General shall comprise central and provincial organizations.

      The head office of the Directorate General is based in Ankara.

     Tasks of the Directorate General

     Article 36- Tasks of the Directorate General are given below:

     a)    To fulfill and carry out charitable, social, cultural and economic terms and services set out in the charters of fused (mazbut) foundations or, where there is no charter, in its firman, deed or title of privilege that substitutes the charter.

     b)In order to give the best service described in the charter, to exploit and invest funds and goods of the Directorate General and the fused (mazbut) foundations and to invest them in those investments that bring higher yields,

     c)  To establish companies, to participate in already-active companies and to decide on any capital increases of these companies with the funds of the Directorate General and the fused (mazbut) foundations,

     d)   To conserve or restore the cultural assets of foundations located at home or abroad;

     e) To audit annexed (mülhak), Community , artisans' and  new foundations;

     f)   To carry out training, research, development, cultural and publication activities in issues related to the foundations; to maintain national and international coordination;

     g)  To make up collections comprising foundations' cultural assets; to establish museums, libraries and cultural centers;

     h)   To carry out services and tasks assigned to it under this Law and other laws.

     The Directorate General shall cooperate with other institutions and bodies in relation to its tasks relating to foundations and shall take necessary measures for the purposes of coordination. Whenever necessary, the Directorate General may hire experts, specialized institutions and entities for advice and legal opinions limited to the required topic and without being subject to the Public Tender Law enacted under No:4734.

     Auditing of the Directorate General

     Article 37- The auditing of the Directorate General shall be conducted within the framework of the provisions of the Law No: 5018 on Public Financial Management and Control dated 10/12/2003.

     Budget of the Directorate General

     Article 38- The budget of the Directorate General shall be prepared within the frame of Public Financial Management and Control Law No: 5018. The budget shall be submitted to the relevant authorities within the permitted term after obtaining approval of the Council.

     Any surplus revenue shall be carried over to the following year.

     Revenues of the Directorate General

     Article 39- Directorate General's revenues are given below:

     a)   Rental revenues.

      b)   Business profits.

      c)  Incomes from participations.

      d)  Management and representation dues.

      e)  Revenues to be generated by the sales of immovable properties belonging to the fused (mazbut) foundations.

      f)  Concession Fees.

      g)  Revenues and proceeds derived from the sales of immovable properties owned by the Directorate General.

      h)  Conditional endowments.

      i)  Unconditional endowments.

      j)   Other revenues.

      

     Spending of certain revenues and endowments

     Article 40- Revenues defined in paragraphs (e) and (f) of Article 39 of this Law may be used for purchasing immovable properties for the foundation and for the repair and maintenance works of the foundation's already existing immovable properties. These sums may be also invested, under the Council decision, in revenue yielding investments and the repair and maintenance works of cultural assets which are located at home and abroad and which belong to foundations with no income source.

     Conditional endowments to the Directorate General shall be spent in line with the will of the endower.      

     CHAPTER TWO

      Foundations Council

      Set-up of the Council

     Article 41- The Council is the highest decision-making body of the Directorate General.

     The Council shall be composed of fifteen members in total, consisting of five members including the Director General, three vice Directors General and one 1st legal advisor plus five members, who shall be university graduates and shall have specialized knowledge and experience in the field of foundations, to be appointed through a joint decree upon a proposal by the Prime Minister;  plus three members to be elected by new foundations and two members, one of whom shall be elected by annexed (mülhak) foundations and the other by the Community  foundations. Furthermore, new foundations shall elect three reserve members while each of the annexed (mülhak) foundations and Community  foundations shall elect one reserve member. The elections shall be held separately upon the invitation by the Directorate General and with the participation of a representative to be appointed by the management body in the new foundations; by the foundation managers in the annexed (mülhak) foundations and by the board of directors in the Community  foundations.

     The Director General is also the chairman of the Council.

     The Director General has the power and duty to enforce the decisions adopted. Where the Director General cannot attend his duties due to various reasons, the acting Director General shall also act as the Chairman of the Council.

     Principles and procedures governing the functioning of the Council shall be laid down in the respective regulation.

     Council's tasks

     Article 42- In addition to the tasks assigned to it by the other articles of the law hereof, the Council shall also perform the following tasks:

     a)  To make decisions for public benefit on expropriations and dispositions for the allotments, sales and barter of the rental-yielding real estates and charity immovable owned by the Directorate General, Mülhak and fused (mazbut) foundations;

     b)   To approve the budgets of the Directorate General and Operational Directorates;

     c)   To decide on the draft regulations and by-laws concerning the Directorate General and foundations;

     d)   To make decisions on issues deemed necessary by the Directorate General.

     Qualifications and tenure of Council members

     Article 43- It is imperative for the Council members to meet the qualifications sought from civil servants as set out and designated in the Civil Servants Law enacted on 14/07/1965 under no. 657; at least three of the members to be appointed upon a joint decree should have minimum ten years of experience in public institutions and bodies.

     Council members who are not public officers shall be considered to be public officers with respect to the offences they committed in connection with their duties as well as those committed against them.

     The tenure of Council members shall be three years. Membership of the Director General, Vice Directors and 1st Legal Advisor in the Council shall be limited with their term of office. However, if any of the appointed members fail to fulfill his tasks due to a disease or disability, or if they are deprived of their membership qualifications, their tenure shall be terminated upon a joint decree in the case of members appointed by a joint decree and upon a Council decision and the proposal of the Director General in the case of other members.

     Those appointed as members to the Council upon a joint decree during their term as civil servants or other public officers shall be discontinued from their former office as long as they keep office in the Council. These members may be re-employed by their former employers for a position meeting their qualifications in the event that their office term expires due to any reason whatsoever other than being deprived of the qualifications for civil servants, or they resign from their membership position or their term of office expires, provided that they file an application to their previous office within thirty days. In this case, the time they have spent in the Directorate General shall be counted as if they have been spent in the institution to which they are appointed. Provided that provisions governing the acquisition of academic titles are reserved, personnel transferred from universities shall be subject to the same provisions.

     Replacement of the Council members and honorary fees

     Article 44- In the event that the office of a member appointed upon a joint decree becomes vacant for whatsoever reason, he/she shall be replaced for a term of three years within 30 days in line with Article 43.

      In the event that the office of a member elected by foundations becomes vacant, reserve members shall take their turns in order to complete the remaining term.

      Council members who do not hold any public office shall be paid an honorary fee for each meeting day, which shall be equal to the multiplication of (3000) indicator number with the coefficient of the salary payable to civil servants, provided that it shall not be more than 4 days a month.

     Council's meetings and resolution quorum

     Article 45- The Council shall convene, at least twice a month and upon the Director General's call, with the presence of two thirds of the total number of members, and resolutions shall be adopted with the absolute majority of the total number of Council members. The Council members shall not be entitled to cast abstaining votes. Council members shall be responsible for their votes and resolutions.

     The Council members shall not be entitled to attend meetings and cast votes on issues that concern themselves and their relations up to third degree in affinity and consanguinity as well as their and adopted children.

      In meetings that concern them, foundations can appoint a representative who does not have the right to vote.

     Rules for the Council members to comply with

     Article 46- Council members shall not engage in an undertaking, brokerage or representative relation, on a direct or indirect basis, with the Directorate General and its affiliates during their tenure and for a term of two years from the expiry of their tenure.

     The Council members shall not be entitled to disclose any confidential information and documents they obtain during their tenure to any party other than those authorized by laws; and shall not use such information or documents to their personal advantages or to the disadvantage of third parties. This obligation shall apply even after the termination of their tenure.

     Any member who fails to attend three consecutive meetings or ten meetings in total during a year without any justified excuse shall be dismissed upon a resolution by the Council.     

     THIRD CHAPTER

      Organization

     Head Organization

     Article 47- The Directorate General's head organization shall be composed of the main service unit, advisory unit, auditing units and auxiliary service units.

      Directorate General's head organization is exhibited in the table (Table I).

     Director General

     Article 48- The Director General is the highest official, representing the Directorate General.

     The Director General shall carry out the activities of the Directorate General in line with the charter terms and provisions, development plans, annual programs and the legislation, and shall be accountable to the Prime Minister, and shall ensure cooperation with other institutions in issues that fall within their scope of activity.

     The Director General shall be authorized and responsible for the inspection/auditing of the activities, operations and accounts of the central and provincial organization as well as for the commissioning of these tasks.

     Vice Directors General

     Article 49- Three vice directors general may be appointed to assist the Director General in the coordination of the main service units, advisory, auditing and auxiliary service units. The vice director general shall perform the duties assigned by the Director General.

     Main service units

     Article 50- Directorate General's main service units are given below:

     a)  Foundation Services Department.

      b)  Charity Services Department.

      c)  Artistic Works and Construction Works Department.

      d)  Investments and Real Estate Department.

      e)  Health Services Department.

      f)  Cultural Affairs and Registration Department.

      g)  Foreign Relations Department.

  Foundation Services Department

     Article 51 - Foundation Services Department shall be in charge of:

     a)   Carrying out the actions and processings concerning annexed (mülhak), Community , artisans' and new foundations,

     b) Carrying out the procedures regarding administrative fines,

     c)  Performing other duties assigned by the Director General.

Charity Services Department      

     Article 52 - Charity Services Department shall be in charge of:

     a)   Fulfilling the charity conditions and providing the services set forth in the charters;

     b) Fulfilling the formalities in relation to the allotment of charity immovable properties;

     c)   Establishing education and training facilities at every level, healthcare and social service institutions, public kitchens, student dormitories, etc. to provide the charity conditions and services set forth in the relevant charters; managing such facilities; supporting students with scholarships, supporting destitute people with social aid, paying benefits to the needy or disabled;

     d)   Cooperating with social service institutions and organizations;

     e)   Developing and realizing social policies and social aid projects in cooperation with international institutions;

     f)   Performing other duties assigned by the Director General.

     Artistic Works and Construction Works Department

     Article 53- Tasks of Artistic Works and Construction Works Department shall be as follows:

     a)   To locate and identify, and prepare inventory for the cultural assets of foundations and to archive documents;

     b)   To draft, or make third parties draft, measured drawings, restitution, restoration and other projects plus annual and five-year repair programs for cultural assets owned by the Directorate General and the fused (mazbut) foundations; to repair and restore them; or hire parties to carry out such works; upon request and in line with the terms and conditions of a protocol to be signed, to commission these works to public organizations and institutions as well as real and legal persons provided that the Directorate General shall be in charge of the control of such work;

     c)  To prepare unit price analyses for the cultural assets of foundations; to ensure that they are published after being approved by the Directorate General;

     d)   To carry out necessary procedures in relation to the repair and restoration projects for the cultural assets owned by the Directorate General and by the fused (mazbut) foundations; to discover their present conditions via measured drawings and photographs; to carry out expropriation procedures for the assets and conservation areas;

     e)   To carry out the construction, repair and tender procedures of new buildings as well as the repair works for the cultural assets owned by the Directorate General and fused (mazbut) foundations;

     f)   To buy materials deemed necessary for the repair works of the cultural assets of the foundation and new buildings; to establish and check construction sites;

     g)   To perform procedures and formalities in relation to the Conservation Law for Natural and Cultural Assets enacted under no. 2863 on 21/07/1983

     h)   To carry out other similar tasks assigned by the Director General.

     Investment and Real Estate Department

     Article 54- Tasks of the Investment and Real Estate Department shall be as follows:

     a)   To prepare the inventory and keep registers of immovable properties owned by the Directorate General, or by the fused (mazbut), annexed (mülhak) and Community  Foundations;

     b)   To determine the immovable properties that should be reverted to their respective foundations in accordance with this Law and the relevant laws and to have them registered with the property registry in the foundation's name; to pursue the ownership and disposal formalities of the cultural assets of foundations;

     c)  To monitor and keep track of the development practices and cadastre works for the immovable properties of the foundations owned by the Directorate General or by the fused (mazbut) foundation; to pursue their expropriation and rental formalities; to carry out the procedures for their inclusion and exclusion from the status of a foundation house or service building; to lay down rules and procedures governing rents; to ensure that they are rented in return for construction or renovation costs or against an apartment; to take all measures to prevent them against any violation; to replace or sell those ones that are not deemed useful, and to purchase the ones deemed necessary.

     d)   To carry out the procedures concerning the immovable property to be endowed to the Directorate General;

     e)   To determine the immovable properties subject to concession and to ensure that concession fees are collected;

     f)    To carry out, or hire third parties to perform the infrastructural works as required by its tasks and operations;

     g)   To carry out other similar tasks assigned by the Director General.

Health Services Department

      

     Article 55- The tasks of the Health Services Department are as follows:

     a) To provide in-bed, out-patient and mobile health services and to carry out the relevant procedures and actions in order to fulfill the medical charity conditions stipulated in the charters of the fused (mazbut) foundations,

     b) To take measures for provision of effective and efficient services at the health facilities,

     c) To cooperate with the institutions and bodies providing health services,

     d) To make sure that agreements are signed, when necessary, with public institutions and bodies, social security institutions as well as the private insurance companies operating in the health sector,

     e) To ensure that Bezm-i Alem Valide Sultan Foundation Gureba Hospital works efficiently and effectively as a training hospital in line with the conditions contained in its charter,

     f) To carry out other similar tasks assigned by the Director General.

  Cultural Affairs and Registration Department

     Article 56 - Cultural Affairs and Registration Department shall be in charge of:

     a)  Translating, transcribing, sorting out and archiving the charters, Ottoman imperial edicts, deeds, orders and similar documents in the archives of the Directorate General;

     b)   Keeping central registration records of foundations; registering new foundations in the central registration records;

     c)   Tracking down the charters and similar documents stored in public archives, libraries and museums as well as in the private archives of real or legal persons, and ensuring that such documents are transferred to the Directorate General' archive;

     d)  Registering and archiving updated versions of trusteeship, usufruct rights, certificates, amendments to conditions and charity conditions etc.;

     e)   Ensuring that scientific studies and researches are conducted safely;

     f)  Preparing a list of antique objects every five years, at the latest, and checking their compliance with the inventory;

     g)   Producing publications about the foundations;

     h) Opening and inspecting museums, libraries and cultural centers for foundations;

     i)  Organizing scientific, cultural and social activities and events, and developing projects, in cooperation with foundations and their high entities at home or abroad;

     j)   Setting up an archive management system that will facilitate the utilization of the archives for all kinds of scientific studies; keeping the system in good operating condition;

     k)  Organizing national and international meetings, conferences, panels, symposiums, exhibitions, fairs and similar events;

     l) Taking appropriate measures to protect movable cultural assets owned by foundations and to prevent their smuggling; carrying out the relevant procedures for the return of the smuggled cultural assets;

     m)   Performing other duties assigned by the Director General.

      Foreign Relations Department

     Article 57 - Foreign Relations Department shall be in charge of:

     a)   Carrying out the Directorate General's relations and correspondence with international institutions;

     b)   Following up international developments concerning the foundations;

     c)   Carrying out the procedures concerning the foundations' real estate abroad;

     d)   Coordinating with other departments in the EU-related activities of the Directorate General;

     e)   Organizing international meetings to be held in Turkey for any of the topics falling under the mandate of Directorate General and conducting all necessary procedures in this respect;

  1. Performing other duties assigned by the Director General.      

Advisory and Auditing Units 

     Article 58 - Advisory and auditing units of the Directorate General shall be as follows:

     a)   Legal Counseling Unit

     b)   Guidance and Inspection Department

     c)   Strategy Development Department

     d)   Media and Public Relations Unit

  Legal Counseling Unit

     Article 59 - Legal Counseling Unit is in charge of:

     a)   Issuing legal opinions on legal affairs and on transactions which might yield to legal, financial or penal proceedings;

     b)   Reviewing in legal terms the draft laws, by-laws and regulations sent by the Prime Ministry or other offices in order to determine the Directorate General's opinion;

     c)   Taking appropriate legal measures, on-time, to protect the Directorate General's interests, to prevent disputes and to facilitate the execution of agreements and contracts in accordance with the said measures;

     d)  Preparing case files for lawsuits to which the Directorate General is a party, representing the Directorate General in such lawsuits, or following and coordinating the lawsuits where external lawyers have been hired to represent the Directorate General;

     e)   Reviewing in legal terms the laws, by-laws and regulations concerning the Directorate General, preparing the drafts of such texts when need be, suggesting changes or amendments to the same;

     f)   Performing other duties assigned by the Director General.

Guidance and Inspection Services Department      

     Article 60- Guidance and Inspection Services Department shall -upon instructions by or approval of the Directorate General- carry out inspection, investigation and examination activities about the head and provincial organizations of the Directorate General on behalf of the Director General, and shall also be in charge of the following tasks;

     a) Reviewing, inspecting and providing guidance services to annexed (mülhak), Community , artisans' and new foundations to find out whether they operate, and are managed, in accordance with the conditions laid down in their charters, deeds of trust, and the current legislation as well as in line with their objectives, and whether their properties and incomes are used in compliance with the conditions laid down in their charters, deeds of trust, and the 1936 Declaration;

     b)   Inspecting and examining the foundations, their economic enterprises and participations;

     c)  Submitting to the Director General the reports issued by the inspectors of the foundation pursuant to inspections, investigations and audits, by also enclosing the comments of the Department;

     d) Reviewing internal audit reports issued by annexed (mülhak), Community , artisans' and new foundations and carrying out necessary procedures;

     e)  Performing other duties assigned by the Director General. 

     Provincial working groups may be set up upon the Director General's approval in the event that a need arises to carry out the services of the Guidance and Inspection Services Department.

     Rules and procedures for governing the Guidance and Inspection Services Department as well as working groups shall be laid down in a regulation.

  Strategy Development Department

     Article 61 - Strategy Development Department is in charge of:

     a)   Developing medium-term and long-term strategies and policies for the Directorate General in accordance with the national development plans and policies, annual programs and governmental programs; to perform the relevant tasks in order to determine the objectives;

     b)   Developing performance and quality criteria for the subjects falling under the mandate of the Directorate General and undertaking other duties to be assigned within this frame;

     c)   Collecting information and data about the improvement of the management of the Directorate General, and its services and performance, and analyzing and assessing the said information and data,

     d) Examining external factors which may affect services in areas falling under the mandate of the Directorate General, carrying out studies on the internal capacity of the Directorate General, analyzing and studying efficiency and productivity of the services as well as conducting general studies;

     e)   Providing services relating to information management systems

     f) Performing the tasks assigned to the financial services unit by the law on Financial Management and Control with No: 5018,

     g) Carrying out the procedures concerning the trust fund of the Directorate General,

     h)  Planning investments to be made by the Directorate General in industrial, commercial, agricultural, tourism, healthcare, educational, cultural, social service and other fields; preparing or commissioning the necessary studies and projects;

     i)  Carrying out financial and technical studies in order to increase the production capacities of the undertakings within the scope of the rules of economy, conducting the procedures and actions concerning undertakings and subsidiaries;

      j)  Keeping the accounts of fused (mazbut) foundations, carrying out the procedures concerning usufruct rights;

     k)   Examining and approving the annual final accounts of annexed (mülhak) foundations;

     l)   Ensuring the development and implementation of projects which might benefit from external funds;

     m) Performing other duties assigned by the Director General.

  Media and Public Relations Unit

     Article 62 - Media and Public Relations Unit is in charge of:

     a)   Providing the public with information about the institutional identity, mission, vision, mandate and activities of the Directorate General in order to ensure transparency for the Directorate General;

     b)   Establishing relations with the media and the press to provide the public with information about the activities and projects of the Directorate General, compiling information about the Directorate General, ensuring that such information is disseminated to the public through mass media;

     c)  Developing media plans for all kinds of news relating to the Directorate General, compiled in the form of bulletins, statements and announcements; and implementing such plans;

     d)  Developing advertising and promotional strategies to achieve visibility and to promote the Directorate General, its activities and its institutional identity to the public, and to implement such strategies;

     e)   Planning joint events and publication activities with other public institutions, organizations, non-governmental organizations and universities to promote the Directorate General; designing and printing promotional leaflets, posters and other printed materials and distributing the same to target groups;

     f)  Taking action to facilitate citizens' access to information under the Law on the Right to Access Information No. 4982 dated 09/10/2003; acting as a coordinator between the relevant units and citizens who would like to enjoy their right to access information;

     g)   Performing other duties assigned by the Director General.

  Auxiliary Service Departments

     Article 63 - Auxiliary service departments of the Directorate General are as follows:

     a)   Human Resources Department

     b)   Support Services Department

  Human Resources Department

     Article 64 - Human Resources Department is in charge of:

     a)   Carrying out activities on Directorate General's plans and policies on human resources, and developing proposals;

     b)  Carrying out the relevant procedures regarding the appointment, personnel records, disciplinary actions, retirement, transfer, promotion, salary, labor union and other formalities of the personnel of Directorate General;

     c)   Preparing, implementing and assessing the in-service training programs for the Directorate General's personnel;

     d)   Providing internal audit services;

     e)   Performing other duties assigned by the Director General.

  Support Services Department

      

     Article 65 - Support Services Department is in charge of:

     a)   Supplying the equipment, stationary and materials needed by the Directorate General; carrying out the distribution and the repair of the same, keeping their records and performing the accrual procedures of the spendings;

     b)   Renting movable and immovable properties needed by the Directorate General for its services;

     c)  Conducting cleaning, lighting, heating, maintenance, repair and forwarding services for the Directorate General's service buildings and facilities;

     d)   Allocating houses, building and managing healthcare and social facilities;

     e)   Providing general documentation and archive services;

     f)  Planning and providing the civil defense and mobilization services of the Directorate General;

     g)   Performing other duties assigned by the Director General.

  Provincial Organization

     Article 66 - The provincial organization of the Directorate General has been shown in the attached Table II. The Council of Ministers, subject to the Directorate General's proposal, shall be authorized to establish or abolish the branches shown in the said table; to relocate and change the same.

     Operating rules and procedures of the provincial organization of the Directorate General shall be set forth in a regulation.       

     CHAPTER FOUR

      Employment

Personnel Regime      

     Article 67 - The personnel of the Directorate General shall be subject to the Civil Servants Law no. 657.

     Those appointed to the Directorate General as Director General, Vice Director General, Member of the Foundations Council, 1st Legal Counselor, Head of Guidance and Inspection Department, Chief Inspector, Inspector, Press and Public Relations Officer, Head of Department, Regional Director, Legal Counselor, Director, Section Director, Foundation Expert, Lawyer, Architect, Engineer, Urban Planner, Museum Researcher and in-house Physicians shall be employed as contract personnel in the corresponding positions without being subject to the Civil Servants Law no. 657 and the provisions on contract personnel in other applicable laws.

      The personnel who are actually working for the Directorate General on a contractual basis shall be paid a gross amount to be determined by the Council, provided that it remains within the base and ceiling levels corresponding to their designations included in Schedule (III) annexed to the law hereof. The contract personnel of the Directorate General shall enjoy the same salary-rises applicable to the corresponding contractual personnel employed at the head organization of the Prime Ministry on the basis of the same rules and procedures. This personnel shall be included under the pension fund (Emekli Sandigi) of the Republic of Turkey. They shall be paid a bonus amounting to a month's salary in proportion with the days worked (including sick and annual leaves) in the months of January, April, July and October. From among these personnel, those who display an outstanding performance as a result of the activities they carried out in comparison to their other colleagues can be paid an incentive bonus corresponding to a month's salary in the months of June and December, upon an proposal by the Directorate General, the consent of the relevant Minister and the approval of the Prime Minister. The relevant principles and procedures regarding the implementation of this paragraph as well as other payments to the aforementioned personnel shall be determined by the Council of Ministers.

     Overtime payment shall be made to the civil servants (excluding the contractual personnel corresponding to the same positions) working at the central and provincial organizations of the Directorate General under the same principles and procedures contained in Article 31 of the Law No: 3056 Amending the Decree on the Organization of the Prime Ministry dated 10/10/1984.

  Appointments

     Article 68 - Director General, Vice Director General, 1st Legal Counselor and Regional Directors shall be appointed under a joint decree; Head of Guidance and Inspection Department and Head of Department shall be appointed upon a proposal by the Director General and the approval of the Prime Minister or a Minister of State authorized by the Prime Minister; and all other personnel shall be appointed by the Director General.

  Foundation Expert and Assistant Foundation Expert

     Article 69 - Expert services needed for the duties to be performed by the Directorate General shall be provided by the Foundation Expert and Assistant Foundation Expert.

     Assistant Foundation Expert must have the qualifications described below in addition to the qualifications set forth in Article 48 of the Civil Servants Law no. 657:

     a)   Having a graduate degree from a faculty or college providing at least 4-year education at home, or those abroad whose equivalency has been approved by the Higher Education Council;

     b)  Passing the overall civil servant competency exam;

     c)  Achieving minimum "B" grade at the Public Servant Foreign Language Exam;

     d)  Passing the exam to be held by the Directorate General;

     e) Not having completed the age of 30 as of the date of the exam to be held by the DG.

      Assistant Foundation Experts shall be entitled to take the Foundation Expert competency exam after serving minimum three years, obtaining an acceptable track record, presenting a thesis, and obtaining an approval for the said thesis. Those who pass the said exam shall be promoted to the Foundation Expert position; those who fail for a second time shall be appointed to an appropriate cadre.

     Rules and procedures governing the Assistant Foundation Expert competency exam, the training programs and their durations, the thesis writing and the professional competency exam as well as the operational procedures shall be set forth in a regulation.

  Inspector and Assistant Inspector

     Article 70 - Assistant Inspector must have the qualifications described below:

     a)   Qualifications set forth in Article 48 of the Civil Servants Law no. 657;

     b) Holder of a B.S. degree of law, political sciences, economics, business management, administration, architecture or engineering from a university, faculty, college or higher education school providing at least 4-year education and located in Turkey or abroad, provided that diplomas obtained from such university, faculty, college or school located abroad shall be subject to approval by Higher Education Board;

     c)   Documenting through a health council report that s/he is in good health to travel under any kind of climatic and travel conditions;

     d)   Passing the overall civil servant competency exam;

     e)   Passing the competitive exam to be held by the Directorate General;

     f)   Not having completed the age of 30 at the date of exam.

     Assistant Inspectors, who succeed in the professional competency exam, shall be promoted to the position of Inspector provided that they have a three-year experience as a vice foundation expert and that they have an acceptable track record.

     Rules and procedures governing the above mentioned competitive competency exam shall be set forth in a regulation.

     If an Assistant Inspector who has been found eligible for the said competency exam fails to take it without a reasonable excuse, or fails the said exam twice, or obtains an unacceptable track record, he shall be deprived of his title and be appointed to another appropriate cadre.

  Termination and creation of cadres   Article 71 - Cadres described in Annexed Schedule 1 of the Decree on General Cadre Procedures for the Directorate General of Foundations no. 190 have been cancelled and omitted from the cadres described in Schedule IV of this law. The cadres contained in the list in Annex I have been introduced and added into Schedule I annexed to the aforementioned Decree as the cadres of the Directorate General.   Dividend and attorney's fee

     Article 72 Revolving fund incomes earned thanks to services provided by the personnel of the Bezm-i Alem Valide Sultan Foundation Gureba Hospital shall be distributed as a dividend to the said personnel at rates and under conditions to be determined by the Foundations Council by taking into account the procedures and principles laid down for the Health Ministry, provided that it does not exceed the ceiling foreseen for specific positions in the health facilities of the Health Ministry. These dividends shall be payable in accordance with the service provision conditions, titles, positions, working conditions, working times, service contribution levels, performance and status of the said personnel -whether he/she is self-employed or not- and with the nature of the said services including medical examination, operation, anesthesia, invasive interventions, special risks stemming from working conditions in risky departments, etc. The dividend paid as such shall not exceed fifty percent of the revolving fund income generated in the current year. 

     All personnel excluding those benefiting from the rights defined in the first paragraph shall be paid in accordance with the rules, procedures and at a rate to be identified by the Council, provided that these amounts do not exceed three percent of the rental revenues of the foundation and one third of their salaries. Such distribution shall be subject to deduction of the stamp tax only.

     In the payment of attorneyship fees to attorneys and officers employed at legal services for lawsuits and enforcement proceedings, which are ruled in favor of the Directorate General and are collected from the other party, the provisions of Law No: 1389 on Payment of Attorneyship Fee to Lawyers and Similar Officers Who Attend the Lawsuits of the State dated 2/2/1929 shall apply by analogy.      

     SECTION FOUR

      Miscellaneous Provisions

  Functions and Powers

     Article 73 - All management executives of the head and provincial organizations of the Directorate General are responsible for providing their services and performing their tasks in accordance with instructions and directives to be given by the Director General and with the applicable laws, plans and programs.

evolution of Authority      

 

     Article 74 - Director General and all management executives shall be entitled to transfer some of their authorities to their subordinates, provided that the limits applicable to such transfer must be clearly defined.

     Such transfer of authority shall be announced properly to whom it may concern.

  Usufruct right

     Article 75 - Rights of the persons concerned shall be reserved in accordance with the conditions set forth in the charters issued to fused (mazbut) foundations and to annexed (mülhak) foundations. Rules and procedures governing utilization of such rights shall be set forth in a regulation.

  Joint defendant in the case of mülhak foundations

     Article 76- In lawsuits of ownership and usufruct rights against the management of annexed (mülhak) foundations, the Directorate General and the foundation management shall act as a joint defendant.

mmunities and Exceptions

      

     Article 77 - Immovable properties owned by the Directorate General or by the fused (mülhak) foundations shall enjoy the privilege of being government property, so that they shall be immune to being sequestered or pledged; all kinds of transactions involving the said properties shall be exempt from taxes, duties, levies and charges.

     No collateral shall be required in the lawsuits to be filed by the Directorate General.

     Bad debts due to the Directorate General or fused (mazbut) foundations shall be collected subject to the Public Receivables Collection Law no. 6183 of 21/7/1953.

     Actions concerning repairs and restoration of cultural assets owned by the foundations, landscaping works and expropriations shall not be subject to the Decree no. 180 on Organization and Tasks of the Ministry of Development and Housing. 

     Actions concerning the renting-out of the cultural assets against restoration or repair costs shall not be subject to the State Tenders Law dated 10/09/1983 no. 2886.

     Rules and procedures governing the above mentioned expenditures and renting operations shall be set forth in a regulation.

     Real persons and legal entities who are willing to study, improve and support foundation culture at home or abroad shall be allowed to sponsor scientific organizations, strategic studies, conferences, symposiums and similar cultural events falling under the scope of the Directorate General and included in its activity and investment programs. Individual and corporate sponsors shall be allowed to advertise commercials at such events subject to rules to be determined by the Directorate General. Funds, donations and sponsorships to be provided by such real persons and legal entities for the maintenance, repair, restoration or sustenance of movable and immovable properties owned by the foundations, for landscaping works and expropriation of such property under the Directorate General's control shall be deducted from their income and corporate tax base.

     Movable and immovable properties donated to a foundation during or after its establishment shall be exempt from inheritance tax.

Rights to Settle and Waive      

     Article 78 -

      a)   The Foundations Council shall be authorized to settle legal disputes between the Directorate General and other public institutions, enterprises, real persons or legal entities through an amendment to the contract or the agreement;

      b)   The Director General shall be authorized to waive lawsuits or enforcement proceedings which are unlikely to yield any useful outcomes due to material or legal reasons or during review by a higher court, to approve a certain right or to waive a certain interest up to fifty thousand Turkish Liras; the Foundations Council shall be authorized to do so for values exceeding the above mentioned limit;

      even if there is no contract, provided that the settlement protects the Directorate General' interests.

     The Director General shall be authorized to delegate some or all of his above mentioned powers to the Vice Director General, 1st Legal Counselor or a Regional Director.

     The principles governing the implementation of the article hereof and the aforementioned amounts shall be determined by the Council.      

     Amended Provisions

     Article  79 -

      a) The phrase "or Directorate General of Foundations" has been added to follow "municipalities" in Article 4 of Law No:6237 on the Construction of Ports dated 27/1/1954.

     b) Civil Servants Law no. 657 has been amended as follows:

     1)   The term "Assistant Foundation Experts" has been added in Article 36 on Common Provisions, paragraph (A), subparagraph 11 right after the term "Assistant Experts of the Prime Ministry"; the term "Foundation Experts" has been added in the same subparagraph right after the term "Experts of Prime Ministry";

     2) The phrase "Foundation Experts" has been added in Article 152 Section "II-Indemnities", paragraph A "Special Service Indemnity", subparagraph (i) to follow "Culture and Tourism Experts",

     3) The term "Foundation Experts" has been added to follow "Culture and Tourism Experts" under Annex I, Schedule "I- General Administrative Services" paragraph (h),

     4) The term "Head of Guidance and Inspection Services Department of the Directorate General of Foundations" has been added to follow the section titled "Head of Inspection and Investigation Board" Annex II, Schedule "II- Judicial Organizations, Affiliated and Related Bodies and Higher Education Institutions",

     5) The term "Head of Guidance and Inspection Services Department of the Directorate General of Foundations" has been added to Annex IV, Schedule "Executive Compensation" line 5 paragraph (e).

     c) The phrase "as well as the immovables of the Directorate General of Foundations and the fused (mazbut) foundations which it manages and represents"  has been added to follow "Immovables under the private ownership of the State or those subject to its decisions and disposal" in paragraph 1 of Article 75 under State Tender Law No:2886 dated 8/9/1983.

     d) The following have been added to the Public Procurement Law No: 4734 dated 4/1/2002;

     1) The following paragraph (k) has been added to follow paragraph (j) under Article 3

      "(k) Procurement of goods or services concerning the repair, restoration and landscaping of the cultural assets of the foundation,"

     2) The following paragraph under Provisional Article 4;

      "The principles and procedures regarding paragraph (k) under Article 3 of the law hereof shall be laid down in a regulation to be issued by the Directorate General of Foundations upon consultation with the Ministry of Finance and Public Procurement Authority."

Abolished Provisions      

     Article 80 -  Foundations Law no. 2762, Articles of Law on Tasks and Organization of General Directorate of Foundations no. 6760 dated 30/06/1956 except Article 16, Law on Sale and Renting of Properties Owned by Foundations no. 2950 dated 27/04/1936, Law on Transfer of Ancient Structures Having Historical or Architectural Value to the General Directorate of Foundations no. 7044 dated 13/09/1957, Law on Lands and Lots Salable by Foundations to Certain Enterprises and Municipalities no. 748 dated 07/03/1926, Law on Sale of Olive Groves, Fig Groves, Nut Groves and Orchards Owned by Foundations no. 6092 dated 08/07/1953; Decree on Organization and Tasks of the Directorate General of Foundations no. 227 dated 18/06/1984;  paragraph 2 of Article 111 of the Turkish Civil Law no. 4721 dated 22/11/2001 have been abolished together with their amendments and additions.

     The phrases "Directorate General of Foundations" included in Article 20 of Decree No:547 dated 23/2/1995 and first paragraph under the annexed Article 3 of Decree with No: 375 dated 27/6/1989" has been  omitted from the text.

     Provisional Article 1 - Until the organization of the Directorate General has been re-arranged according to the principles of the law hereof, the cadres existing as of the enforcement date of this law shall continue to be valid.

     Personnel whose cadres, positions and titles remain unchanged under this law shall be considered to have been appointed to their new cadres.

     Personnel whose cadres, positions and titles have been changed or abolished by this law shall be assigned to appropriate cadres corresponding to their degrees and grades by the Directorate General within six months. Until they are appointed to their new cadres they shall reserve all rights regarding their salaries, additional indicators, salary increases and compensations as well as other financial rights. Where the sum of net amount of salaries, additional indicators, salary increases and compensations as well as other financial rights of the new cadres to which the personnel have been appointed are less than the sum of net amount of salaries, additional indicators, salary increases and compensations as well as other financial rights pertaining to the last month in their previous cadres, the difference shall be payable as compensation as long as they remain in the cadres they have been appointed to, without being subject to any tax or deductions.

     Furthermore, those who are employed in the Directorate General and are subject to the Civil Servants Law no. 657 shall be entitled to take the competency exam to be held by the Directorate General, provided that they apply within six months of the enforcement of the law hereof. The applicants shall not be required to meet the conditions laid down in sub-paragraphs (b), (c) and (e) under the second paragraph of Article 69 of the said law.

     Those who succeed in the exam shall be appointed as foundation experts.

     Provisional Article 2 - Regulations described in certain articles of this Law shall be passed and published in the Official Gazette within six months, until then the provisions of the existing regulations which do not contradict this law shall continue to be applicable.

     Provisional Article 3 - Tasks assigned to departments or units changed or created hereunder shall be performed by the departments or units which have been performing them before this law has been enacted, until they are rearranged hereunder.

     Provisional Article 4 - Provincial organization of the Directorate General shall continue to perform and provide its tasks and services until it is restructured hereunder.

     Provisional Article 5 - In on-going lawsuits concerning foundation entries, the forfeiting and prescriptive terms laid down other laws shall not be applicable hereunder.

     Provisional Article 6 - Annexed (mülhak) foundations, whose usufructs rights are more than the charity conditions in their charities, shall be turned into family foundations described in Article 372 of the Turkish Civil Law No: 4721 by a court decision, upon the request of the foundation manager and its relevant authorities and based on a Council decision.

     Provisional Article 7 -Community foundations';

     a)   Immovable properties registered in the 1936 Declarations, which are registered in the Property Registry Office under figurative or fictitious names and are still under the disposal of the foundation,

     b)  Immovable properties currently registered in the Property Registry Office in the name of the Treasury, Directorate General, the bequeathing party or the endowers on grounds of not being able to acquire property, despite the fact that they had been purchased by Community  foundations, or bequeathed or endowed to the Community  foundations after the 1936 Declaration,

     shall be registered by the relevant Property Registry Directorates in the name of the Community  foundations together with all rights and obligations recorded on them in the Property Registry Office, upon an application lodged within eighteen months as from the enforcement of this law and following the approval of the Council.

     Provisional Article 8 - The cadres appointed to the Directorate General in accordance with Law No: 4046 on Privatization Applications shall remain valid.

      Provisional Article 9 - The personnel under the Ministry of Health cadres, who have been transferred to the cadres of the Directorate General during their service at the Bezm-i Alem Valide Sultan Foundation Gureba Hospital, shall continue to benefit from the provisions of the sixth paragraph of Article 5 of the Law No: 5283 dated 6/1/2005.

      Ayvalık Olive Groves and Spring Waters of the Foundation, as well as the undertakings of Bezm-i Alem Valide Sultan Foundation Gureba Hospital, which have been operating under the Directorate General, shall continue to operate as undertakings with revolving funds until the relevant regulation concerning the restructuring of undertakings with revolving funds has been enacted, in accordance with the provisional Article 11 of the Law No: 5018 on Public Financial Management and Control.

Validity      

     Article 81 - This law shall be valid and put in effect when it is published in Official Gazette.

  Enforcement

     Article 82 -   This law shall be enforced by the Council of Ministers.

How To Establish A Foundation?

Foreigners shall be able to establish new foundations in Turkey in accordance with the principle of de jure and de facto reciprocity.

LOADING

"As for the issues related to the foundations, it is known that foundations constitute an important asset of our country. I hope that all members of Council of Ministers together with the Ministry Of Religious Affairs and even the Supreme Assembly examine this issue with great care and that this great institution is protected from devastation and made useful for our country in order to ensure that our country can benefit from this asset as necessary."

Mustafa Kemal ATATÜRK

1 March 1922, TBMM

" Being a founder, establishing a foundation is a matter of civilization. All our worry and our remedy are on these matters. "

Burhan ERSOY

General Director of Foundations

"Waqfs are the emergence of the divine order “you should compete for favor and taqwa”

Recep Tayyip ERDOĞAN

TR PRESIDENT

"The understanding of the foundation in our civilization is the formation of the spiritual consciousness that it brings to us."

MEHMET NURİ ERSOY
Minister Of Culture and Tourism