The requirements for key EMB financial processes — such as budgeting, procurement, expenditure authorizations, financial reporting and auditing — may be contained in law, accounting and financial reporting codes, or in EMB or government regulations. A clear legal framework for managing EMB finances ensures certainty, regularity and consistency, and fosters good governance within the EMB. As well as the legal framework, there are fundamental principles that are the basis of good-practice EMB financial policies and procedures.
Transparency
Financial transparency raises stakeholder and public awareness of the EMB’s structures and programmes, financial policies and challenges, and can bolster stakeholders’ confidence in the EMB’s capacities. Financial transparency also promotes good governance and serves as a strong deterrent to corruption and fraud within the EMB. When there are allegations of bad or dishonest practices, the EMB can better protect its credibility by rigorously exposing such practices, rather than seeking to hide them, including ensuring that whistle-blowers are protected.
Transparency in the preparation, justification and approval of an electoral budget builds public confidence in the EMB’s management. Rigorous public scrutiny and legislative accountability give the EMB the opportunity to publicly demonstrate its commitment to financial integrity. It is good practice for the EMB to be transparent in its procurement practices, especially where fast-track methods have to be used to meet electoral deadlines.
Prompt public disclosure of EMBs’ financial audits, and of reports on the awarding of procurement contracts, guards against financial irregularity and corruption or patronage in contracting. The most fundamental way an EMB can promote financial transparency is by publishing its annual performance reports, including audited financial statements, and submitting them to the legislature and other stakeholders, including political parties and the general public.
Efficiency and Effectiveness
As a guardian of public funds, the EMB has an obligation to expend these responsibly and to be efficient and effective in managing its financial, human and material resources. An outcome-based approach to the EMB’s budgets, regular monitoring of staff performance, and regular auditing of financial records help promote efficiency and effectiveness in the use of its funds, which can enhance public confidence in its management of electoral processes.
Integrity
The commitment of all EMB members and staff to integrity in their conduct is the basis of the organization’s integrity. Strong codes of conduct and policies on conflicts of interest promote integrity. Integrity in financial management covers monetary transactions as well as issues such as respect for intellectual property. The development of integrated financial management systems with clear audit trails enables breaches of financial integrity standards to be discovered and reported. A strict regime of sanctions for breaches of integrity requirements, and fearlessness in using them, will enhance public confidence in the EMB.
