Audit Reveals Financial Discrepancies in New Serbian Democracy

The financial audit of the Nova srpska demokratija (NSD), led by Assembly President Andrija Mandić, has revealed significant discrepancies in party funding practices. The Državna revizorska institucija (DRI) conducted the audit, providing a favorable opinion on the financial statements but highlighting inconsistent application of regulations governing party financing.

The audit team, chaired by Senator Vesna Mihailović and including Senator Siniša Čađenović, found that while the financial report was presented fairly, it also uncovered irregularities. The NSD was noted for having unfulfilled obligations related to the elections held in 2024, amounting to a total of 53,271 euros after the closure of election accounts.

In addition, the report indicated that certain travel expenses incurred domestically were not justified within the timeframe set by current regulations. Reports from official trips were not compiled, and costs for using personal vehicles for official purposes lacked written consent. The party also failed to establish an internal policy for justifying representation costs or setting limits for users. Furthermore, the NSD did not have its business premises lease agreement certified by the relevant authority.

In terms of finances, the NSD reported total revenues of 1.45 million euros in the previous year, against expenditures of 1.53 million euros. They received 1.2 million euros from state and local budgets, while private sources contributed 67,200 euros. Additional income amounted to 176,500 euros. The largest portion of spending, totaling 530,900 euros, went towards salaries and other compensations, with 493,300 euros dedicated to regular operations and over 143,600 euros for rent and utilities. The electoral campaign cost the party more than 328,000 euros.

The DRI issued five recommendations following the audit, which the NSD is required to address by creating an action plan by mid-November 2024. The party must also report on the implementation of these recommendations by mid-April 2025, ensuring compliance with financial regulations moving forward.

This audit underscores the importance of transparency and accountability in political financing, setting a precedent for future oversight in Serbian political parties.