Report on the monitoring of the Act on Political Parties in 2013

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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 2012 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.

In 2013, the National Audit Office proceeded to 25 audits of political party funding. This figure for 2012 was 20. The 2013 audits targeted all parliamentary parties, their regional organisations in Tampere region and Helsinki, and two foundations.

In 2013, contributions received by parties, party associations and affiliated entities totalling 2.4 euros were reported to the party funding register in up-to-date disclosures. In addition, the number of retrospective disclosures relating to 2012 increased in 2013 from 2.6 million euros to 3.1 million euros, and disclosures that concern contributions relating to 2011 increased from 2.4 million euros to 2.6 euros million in this period. Some of the complementary disclosures were made as a result of the audits of party funding completed in the last three years.

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.

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 organisations with an accounting obligation must have their accounts up to date according to chapter 2, section 4 of the Accounting Act (1336/1997, amended by 1304/2004). Attention should also be paid to the itemisation and quality in accounting 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.

Shortcomings were again found in the 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 referred to in Section 9 c of the Act on Political Parties in their auditor’s reports.

The audit did not find substantial contributions violating the restrictions in section 8 b of the Act on Political Parties originating from other organisations besides an entity affiliated with a party.