At least 37.7 million leva are the expenses of the parties for 2023. Approximately the same - 37.2 million leva - are their revenues. 21 political parties were audited. It was established that their annual financial statements (AFS) for 2023 with the relevant annexes to them were submitted to the Court of Auditors within the statutory deadline and according to the requirements. The revenues generated during the audited period and the expenses incurred are documented.
These are data from the audit report of the National Audit Office for the audit of the financial activities and management of the property provided to political parties for the period from 01.01.2023 to 31.12.2023.
It was carried out by the institution in implementation of the Audit Activity Program for 2024 and is published on its website. The objectives of the audit are to analyze and assess the financial activities and management of the property provided to political parties in accordance with the requirements of the Political Parties Act (PPA) and the Accountancy Act (AA) and to ensure publicity and transparency of the financial activities and management of the property provided - state or municipal property, to political parties.
21 political parties were audited. It has been established that their annual financial statements (AFS) for 2023 with the relevant annexes thereto have been submitted to the National Audit Office within the statutory deadline and in accordance with the requirements. The revenues generated during the audited period and the expenses incurred are documented.
Expenses
During the audited period, expenses totaling approximately BGN 38 million were reported, of which BGN 9.7 million, or 26 percent, were determined as material for the purposes of the audit and verified. The expenses were incurred to ensure the work of the party structures, to organize and conduct elections, for advertising materials and campaigns, as well as for other inherent activities of the parties, in accordance with the requirements of the LPP. Approximately BGN 10.7 million is the largest amount of expenses incurred by a political party. Among the main expenses of political parties are for media services, consulting and accounting services, rent, salaries and fees, fines, training, business trips. Among the more significant payments are 50,000 dollars, transferred by a Bulgarian party under an agreement with a lobbying company from the USA. The Court of Auditors has checked the case and found that the expenses were incurred for activities that can be considered as inherent to the political party, since the LPP lacks a legal definition of the concept of “other expenses inherent to the party's activities“. Two political forces have allocated funds from their budget to support community centers, one donated for the restoration of a church, for social activities for children, for treatment, for the publication of a book. Another supported the participation of individuals in the Olympics.
Revenue
Of the revenues reported during the audited period in a total amount of 37.2 million leva. Nearly 23.9 million leva, or 64 percent, have been audited by the National Audit Office. Political parties generate revenue from sources regulated by the Law on Political Parties: membership fees, donations, interest on cash deposits in banks, income from regulated business activities and sale of their own fixed assets. The largest amount of revenue for a party is 10.3 million leva. It has been established that party coffers are in most cases funded mainly by state subsidies, but for several parties the share of donations is more significant. Less revenue comes from membership fees, and for some parties this item is absent. It has been established that 15 of the audited political parties receive a state subsidy in a total amount of almost 19 million leva, or 51 percent of the reported revenue. The state subsidy received for 2023 reflected in the parties' annual financial statements corresponds to the one transferred by the Ministry of Justice.
18 political parties reported income from donations from individuals in a total amount of BGN 10.5 million, of which about BGN 2.9 million (27 percent) were verified. Audit procedures on an audit sample were performed for three political parties that reported income from donations exceeding BGN 1 million. For the remaining parties included in the scope of the audit, the income from donations determined as material was verified in full. The verified income from donations is documented, accounted for according to the individual charts of accounts and corresponds to that reflected in the financial statements of the political parties. No funds received from: anonymous donors, legal entities and sole proprietors, religious institutions, foreign governments or foreign state-owned enterprises, foreign commercial companies or foreign non-profit organizations were identified. Two parties formed part of their budget from donations from MPs - the members of a parliamentary group representing the respective party or coalition transferred to a designated MP the additional money due to them under Art. 11 of the Financial Rules on the Budget of the National Assembly.
The collected amount was transferred to the bank account of the respective party. The budget of three parties included funds from the sale of cars that are their property, four added income from foreign exchange operations, with two of them having very insignificant amounts. During the audited period, 13 parties reported income from membership fees in the total amount of 4.6 million leva, of which a little over 2 million leva, or 44 percent, were verified. One party, when reflecting the information in the declaration under Art. 34, para. 4 of the Law on At the end of the audited period, one party was using premises provided by municipalities to carry out its activities in violation of the LPP, as it did not meet the regulatory requirements. A public register of the audited political parties was created on their websites. The circumstances arising from their activities in 2023, designated for registration under the Political Parties Act, have been disclosed in their public registers, with the exception of two parties that have not published declarations of origin of donated funds in the amount of more than one minimum wage, and one of them has not published reports on election campaigns.
Following the audit, the conclusions of the National Audit Office are as follows:
- The organization of the financial activities of political parties is in accordance with the requirements of the current legal framework and is maintained in accordance with the requirements of the Financial Accounting Act.
- The generation of income and the incurrence of expenses by political parties is in accordance with the requirements of the legal framework.
- The activity of managing the property provided by the state and/or municipalities is carried out in accordance with the legal framework and contracts, with the exception of of identified non-compliances in a material aspect of the activity, namely: - At the end of the audited period, one party used premises provided by the municipalities to carry out its activities without meeting the regulatory requirements.
- With regard to maintaining and updating information in the public register of political parties, compliance with the requirements of the legal framework was found, with the exception of identified non-compliances in a material aspect of the activity, as follows: - Declarations of origin of donated funds in an amount exceeding one minimum wage have not been published in the register of two parties, and one party has not published reports on election campaigns.
The Court of Auditors reminds that by March 31, 2025, political parties must submit their financial statements for 2024 and declarations in a standard format, which contain lists of individuals who have made donations. The documents (on paper and electronic media) are submitted to the building of the Court of Auditors in the city of Sofia, 17 “Antim I“ Str., 6th floor, room 604.