Report on the monitoring of the Act on Political Parties in 2011–2012

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The Act on Political Parties contains mandatory provisions aimed at promoting the transparency of funding for political parties and party associations. The objective of provisions is to increase the transparency of party funding, particularly taking into consideration the recommendations made to Finland by the Council of Europe Group of States against Corruption (GRECO). The public should have adequate information on the funding of parties’ basic activities and election campaigns to evaluate possible ties.

The National Audit Office monitors compliance with the provisions in the Act on Political Parties concerning financial support, the disclosure of election campaign costs and funding and the preparation and submission of related documents by supervised entities.

Financial statements for 2011 of political parties, associations referred to in a party subsidy decision and entities affiliated with a party were sent to the electronic party funding register.

Shortcomings were observed in supervised entities’ election of auditors and in auditor’s reports. Authorised auditors have not always been elected as auditors. Nor have auditors always included the statements prescribed in the Act on Political Parties in their auditor’s reports.

Supervised entities’ bookkeeping has as a rule been managed properly so that monitoring compliance with the provisions in the Act on Political Parties has been possible on the basis of bookkeeping. It should still be emphasised, however, that all supervised entities must keep their bookkeeping up to date as required by Chapter 2 section 2 of the Accounting Act. Attention should also be paid to the itemisation and quality of bookkeeping as well as the handling of cash. The itemisation of election campaign costs and funding should be traceable from bookkeeping and other accounts and should be reconcilable with them.

On the basis of the audit, up-to-date disclosures concerning party funding together with supplements are correct in essential respects and provide correct information on financial support received by the supervised entities in essential respects.

The audit did not find substantial contributions violating the restrictions in section 8 b of the Act on Political Parties with the exception of contributions received by two district organisations, which came from another organisation besides an entity affiliated with a party.