ASSIGNMENT FOR MEETING 10

Public Sector Accounting

Namira Fathin Aminasa | 1801103010019

The types of political party financial reports should be divided into two, as follow:
(1) Annual financial reports.
Consists of statements of financial position, activity reports and cash flow reports, as well as notes to
financial statements;
(2) Election financial reports.
This report mainly explains the accountability of campaign activities.
Explain about each of these reports.

Answers :

In Law No.2 of 1999 and Law No.3 of 1999, routine funds and campaign funds. Routine reporting of
funds is carried out in reports annual report of political parties at the end of the year, while the
campaign finance report is done in the report campaign funds every five years, fifteen days in advance
and thirty days after voting.

In more detail:

(1) Annual financial reports:

Statements of financial position: These reports show the overall financial position of political parties,
including assets such as cash, investments, and property, as well as liabilities such as loans and debts.
These statements allow for an understanding of the overall financial health and stability of the party.

Activity reports: These reports show the party's financial activity for the year, including revenue,
expenses, and any gains or losses. This report allows for a better understanding of where the party's
funds are being spent and how effective their fundraising and spending strategies are.

Cash flow reports: These reports show the movement of cash in and out of the party's accounts over
the year. This report helps to monitor how much cash the party has on hand, and how much they are
spending compared to how much they are making.

Notes to financial statements: These notes explain in further detail the items reported in the financial
statements, including any assumptions made, and any changes in accounting policies.

(2) Election financial reports:

This report is specific to campaign activities during an election. It is required by law in many
countries to ensure transparency and accountability in election campaigns.

This report includes information on all expenses made during the campaign, including advertising,
travel, and salaries of campaign staff. It also shows where the funding for the campaign came from
and how it was spent.

These reports are crucial in ensuring fair and transparent elections, as they allow for accountability in
campaign spending and funding. They also help to prevent corruption and ensure that parties are not
receiving illegal funds.