The State Audit Office of Hungary (SAO) is required by law to audit every two years the financial management of political parties that have received regular funding from the central budget. The newly published reports present the results of the audits of the Democratic Coalition (DK), the Jobbik – Conservatives (Jobbik), the Hungarian Socialist Party (MSZP) and the LMP – Hungary’s Green Party (LMP).
The objective of the audits was to assess whether the published annual financial statements of the parties for the years 2021-2022 complied with legal provisions, whether the audited parties complied with the relevant legal and internal regulations in their accounting and financial management, whether the parties used the funds available for their operation in accordance with the law, and whether they performed the economic and business activities permitted by the relevant act. The audit also aimed to assess whether the parties had implemented the tasks set out in the action plan drawn up in accordance with the findings of the previous report.
The audit found that MSZP, Jobbik and LMP had established their regulatory environment in accordance with legal regulations, their financial statements were substantiated, the control of their financial management activities (except for LMP on asset management) was functioning properly, and most of the measures set out in the action plan based on SAO’s previous findings were implemented on time.
In the case of DK, the audit revealed that the accounting rules were not properly designed and the financial statements were not fully substantiated, but the control of their financial management activities was adequate, except for the cash control. Of the actions planned on the basis of the results of the previous audit, three were implemented on time and three were not implemented by DK.
In order to address the irregularities detected, the State Audit Office of Hungary has made recommendations to the presidents of the political parties.