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Compilation of the Audit on Reports on the Origin, Amount and Structure

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Compilation of the Audit on Reports on the Origin, Amount and Structure Annual Report of the State Audit Institution for the Period October 2012 – October 2013 COMPILATION OF THE AUDIT ON REPORTS ON THE ORIGIN, AMOUNT AND STRUCTURE OF THE FUNDS RAISED AND SPENT ON ELECTION CAMPAIGNS OF SUBMITTERS OF ELECTION LISTS FOR 2012 Audit type: Financial audit Audited entity: Submitters of election lists on national and local level Subject of audit: Reports on the origin, amount and structure of the funds raised and spent on election campaign of submitters of election lists for 2012 Audit duration: 90 auditing days Collegium members: Mr Branislav Radulovic, PhD, member of Senate – Head of Collegium Mr Dragisa Pesic, member of Senate – member of Collegium Page 245 Annual Report of the State Audit Institution for the Period October 2012 – October 2013 Page 246 Annual Report of the State Audit Institution for the Period October 2012 – October 2013 I. GENERAL PART 1. Legal Basis The legal basis for conducting the audits is contained in: . Law on State Audit Institution (“Official Gazette of Montenegro” № 28/04, 27/06 and 78/06 and “Official Gazette of Montenegro” № 15/07, 73/10 40/11); . Law on Financing Political Parties (“Official Gazette of Montenegro”, № 49/08, 49/10, 40/11, 42/11, 60/11, 01/12); . Annual Plan on Audits of the State Audit Institution for 2012 (№ 4011-06-01 dated 9th January 2012) and Amendments to the Annual Plan (№ 4011-06-01/ 4 dated 1st November 2012); . Decision passed by Collegium IV responsible for carrying out this audit (№ 40113-04-1284, dated 23rd November 2012). 2. Subject of Audit The subject of audit is: Reports on the origin, amount and structure of the funds raised and spent on election campaign for the national and local elections of the following submitters of election lists: . Coalition European Montenegro - Milo Djukanovic; . Democratic Front - Miodrag Lekic; . SNP - A word and a deed; . Positive Montenegro - Darko Pajovic; . Bosniak parties - Rafet Husovic; . Croatian Civic Initiative - resolutely; . Democratic Union of Albanians; . Serbian National Alliance - Dr. Ranko Kadic . Coalition "Together"; . The Albanian Coalition - the Democratic Alliance in Montenegro; . FORCA for Unity; . The Albanian Youth Alliance; . A Coalition of Serbian Unity. In addition to the audit of the said reports, the audit of the Report of Liberal party and Social democratic party of Montenegro have also been performed, as these two parties participated independently in the local elections in Kotor. 3. Audit Objective The audit objectives were to verify the following: . whether the Reports on origin, amount and structure of the funds raised and spent on election campaign were compiled and submitted in accordance with statutory requirements; . whether the Reports provide true, fair and accurate disclosure of revenues and expenditures; . regularity in generating revenues and executing expenditures; . whether the Reports are based on valid documentation. Page 247 Annual Report of the State Audit Institution for the Period October 2012 – October 2013 4. Audited Entities The audited entities are submitters of confirmed and declared electoral lists that participated in national and local elections, held on 14th October 2012. The President of Montenegro announced the elections (Decision № 01-999 as of 31st July 2012, "Official Gazette of Montenegro" № 42/12) for the election of deputies to the Parliament of Montenegro (Decision № 01-1000,01-1001 and № 01-1011 as of 31st July 2012), and for the election of municipal Assembly delegates for the municipality of Kotor, Niksic and Budva, with dates of election as of 14th October 2012. Pursuant to Article 25 of the Law on Financing Political Parties, submitters of electoral lists are obliged to submit a Report on origin, amount and structure of the funds raised and spent on election campaign to the State Audit Institution within 30 days, with supporting documents, and the SAI is required to perform an audit of the submitted reports. 5. Audit Metodology The respective audit was an in-office, documentary audit. The audit has examined the submitted Reports on origin, amount and structure of the funds raised and spent on election campaign and other supporting documentation of the submitters of the electoral lists at the national and local level. 6. Finansing of Election Campaigns Budget funds for financing the costs of the election campaign referred to in Article 9 of the Law, shall be provided in the year in which regular elections are held, in the amount of 0.25% of the current budget planned for the year which the budget is adopted for (current budget for 2012 amounted to EUR 596,035,556.53). Pursuant to Article 10 of the Law on Financing Political Parties, funds from the budget of Montenegro, in the amount of 20% are paid in equal instalments to the submitters of electoral lists, totalling EUR 298,017.78 (EUR 22,924.00 x 13 confirmed electoral lists at the national level). Funds in the amount of 80% were paid to submitters of electoral lists in proportion to the number of mandates won, in the amount of EUR 1,192,071.78. 7. Raised Funds The audit has found that the submitters of electoral lists for the election of deputies to the Parliament of Montenegro and the election of municipal assembly delegates in the Municipal Assembly of Kotor, Niksic and Budva, for the elections held on 14th October 2012 raised funds totalling EUR 1,726,559.48, out of which the funds generated from public funds amounted to EUR 1,518,623.23, i.e. 87.96% of the aggregate amount, from private funds, amounting EUR 207,938.25, i.e. 12.04% of the aggregate amount. The funds raised from public sources, included the funds from the budget of Montenegro, in the amount of EUR 1,490,088.83 and the budget of municipalities, in the amount of EUR 28,534.00. Pursuant to Article 10, Paragraph 2 of the Law on Financing Political Parties, submitters of electoral lists raised from the budget of Montenegro the aggregate amount of EUR 298,017.72 (20%) of related resources, and on the basis of mandates won, the sum of EUR 1,192,071.11 (80% of resources). Page 248 Annual Report of the State Audit Institution for the Period October 2012 – October 2013 The submitters of electoral lists raised funds from the budget of local self-governments in the amount of EUR 17,090.25 (20% of related resources) and on the basis of mandates won, the sum of 11,444.15. The funds raised from private sources, amounting to EUR 207,938.25, are related to the donations of legal entities in the amount of EUR 1,100.25, i.e. 0.06% of the total revenue, and donations made by natural persons, in the amount of EUR 206,836.00, i.e. 11.98% of the total revenue. Tabular overview of the funds raised by submitters of confirmed electoral lists In EUR State Municipal Revenues Revenues Total per Share per Budget Municipal Budget from from State Budget Total Submitters Submitters № Political Party Revenues Budget Revenues Legal Natural Share % Revenues Revenues of Electoral of Electoral (mandates Revenues (mandates Entities Persons Lists Lists won) won) Donations Donations 1 Coalition European Montenegro Milo Djukanovic 22,924.44 573,960.17 187,050.00 783,934.61 45.40% 1.1 European Budva - local elections 1,000.00 1,000.00 0.06% 793,197.61 45.94% 1.2 European Kotor - local elections 498.00 6,143.00 6,641.00 0.38% 1.3 European Budva-local elections 622.00 1,000.00 1,622.00 0.09% 2 Social Democratic Party of Montenegro (SDP CG) 12,314.34 0.71% - local elections Kotor 2,414.34 9,900.00 12,314.34 0.71% 3 Croatian Civic Initiative (HGI) - national level 22,924.44 14,716.93 37,641.37 2.18% 38,622.34 2.24% 3.1 Croatian Civic Initiative (HGI) - local elections Kotor 498.03 482.94 980.97 0.06% 4 134,949.93 7.82% Positive Montenegro 22,924.44 103,018.49 4,157.96 1,448.79 100.25 3,300.00 134,949.93 7.82% 5 67,075.20 3.88% Bosniak Party (BS) - national level 22,924.44 44,150.76 67,075.20 3.88% 6 Socialist People's Party of Montenegro (SNP CG) - national level 22,924.44 132,452.35 1,765.00 157,141.79 9.10% 6.1 SNP - local elections Budva 1,589.38 1,589.38 0.09% 162,767.61 9.43% 6.2 SNP - local elections Kotor 498.03 1,916.65 2,414.68 0.14% 6.3 SNP - local elections Niksic 621.76 1,000.00 1,621.76 0.09% 7 Democratic Front - national and local level (NK, 320,072.16 18.54% KOTOR and BUDVA) 22,924.44 294,338.55 2,709.17 100.00 320,072.16 18.54% 8 Albanian coalition (DS in CG, DP, AA) - national 37,641.37 2.18% level 22,924.44 14,716.93 37,641.37 2.18% 9 37,641.37 2.18% Coalition Forca for Unity - national level 22,924.44 14,716.93 37,641.37 2.18% 10 22,924.44 1.33% Democratic Union of Albanians (DUA) 22,924.44 22,924.44 1.33% 11 22,924.44 1.33% Albanian Youth Alliance - national level 22,924.44 22,924.44 1.33% 12 Coalition of Serbian Unity - national level 22,924.44 22,924.44 1.33% 23,546.20 1.36% 12.1 Serbian Unity for Niksic - local elections 621.76 621.76 0.04% 13 Coalition Serbian National Alliance - dr Ranko Kadic - national level 22,924.44 1,521.00 24,445.44 1.42% 13.1 Coalition Serbian National Alliance - local 26,048.17 1.51% election Kotor 498.03 482.94 980.97 0.06% 13.2 Coalition Serbian National Alliance - local election Niksic 621.76 621.76 0.04% 14 Coalition Together (communists and pensioners) - national level 22,924.44 22,924.44 1.33% 23,545.44 1.36% 14.1 Coalition Together (communists and pensioners) - local level Niksic 621.00 621.00 0.04% 15 2,467.86 0.14% Liberal Party - local elections Kotor 498.03 969.83 1,000.00 2,467.86 0.14% 16 Workers Movement of Niksic Z.
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