Financial plans to be posted on new websites: Obligations for parties after changes to the law on their financing

The Agency for the Prevention of Corruption (ASK) has asked parties to align their operations with the amended Law on Financing Political Entities and Election Campaigns by October 27th, and to open an official website on which they will publish their annual financial plan and work program.

The regulation on party financing was amended at the end of July, and the act envisages the introduction of a number of new obligations for political entities and government bodies.

All these bodies, as stated in the announcement on the ASK website, must have a website on which they will publish analytical cards (expenditure overviews) during the election campaign. Unlike the previous legal solution, they are no longer obliged to submit them to ASK, but only to publish them on their own websites.

The Ministry of Finance is required to adopt a new form for annual consolidated financial statements by tomorrow.

"Also, the Ministry is obliged to allocate funds for financing the regular work of political entities in the Assembly in the amount of 0,8 percent of the current budget, which is a larger amount of funds allocated compared to the previous law (0,5 percent)," it was announced on the ASK website.

The current budget for this year amounts to around 1,5 billion euros, of which parties are entitled to 7,55 million (0,5 percent). By increasing allocations (through amendments to the law) to 0,8 percent, parties, according to the current budget, receive 12,08 million, or 4,5 million more.

The announcement on the ASK website states that the Ministry of Finance and the local government body responsible for financial affairs are obliged to distribute budget funds for financing regular work by distributing 30 percent of the funds in equal amounts to political entities that have won mandates in the Assembly, or municipal assemblies, and 50 percent of the funds in proportion to the total number of parliamentary or councilor mandates they have at the time of distribution. The remaining 20 percent is distributed in equal amounts to political entities in the Assembly, or local parliaments, in proportion to the number of elected representatives of the underrepresented sex.

The amended law, as stated on the ASK website, also stipulates that the Ministry and municipalities are obliged to adopt an amendment to the Decision on the amount of budget funds intended for financing the regular work of political entities.

The Ministry of Finance is obliged to allocate funds for financing the regular work of political entities in the Parliament in the amount of 0,8 percent of the current budget, which is a larger amount of funds allocated compared to the previous law (0,5 percent).

ASK is obliged to adopt a series of bylaws within 60 days, or by tomorrow. Among them are revised instructions and regulations - Instructions on the form of a temporary report on the expenses of a political entity, Instructions on the form of a report on the origin, amount and structure of funds collected and spent from public and private sources, Instructions on the content of reports on contributions from legal entities and individuals to political entities during the election campaign, Instructions on the manner and procedure for reporting and resolving complaints during the election campaign, and Regulations on the manner of exercising control over the implementation of the provisions of Articles 33-45 of the Law (prohibition of the use of state machinery and equipment, transparency of social benefits, use of official vehicles...).

The obligations, as stated, also relate to new instructions and plans, which include instructions on the form of the final report on the expenses of a political entity after the closure of a special account, instructions on the form of a preliminary report on funds collected and spent during the election campaign of third parties, instructions on the form of a report on the origin, amount and structure of funds collected and spent during the election campaign of third parties, and the form of the financial plan and work program of a political entity.

ASK is no longer obliged to issue instructions on the form of a report on media advertising by political entities, nor to issue rules on the method of calculating and reporting on non-monetary contributions to political entities.

In order to ensure compliance with international standards, the Agency will, in cooperation with the International Foundation for Electoral Systems (IFES), develop a methodological and operational framework, which includes procedures, guidelines and methodologies for the effective implementation of the law. This refers to guidelines for reporting to those obliged to the Law (political entities, government bodies and third parties), procedures for the control of political entities, state and local government bodies and third parties, a procedure for conducting field inspections, guidelines for crisis management and resisting political influence, guidelines for the creation of content on the website...