Before making a return party secretaries should read Party donations disclosure - an overview and this page, consult the Electoral Act 1993, and seek independent legal advice as required.

How does a registered political party file its return?

The Electoral Commission provides a form for the secretaries of registered political parties to complete and return by 30 April each year. It must be accompanied by an auditor's report as to whether the return fairly reflects the party donations received. Party secretaries are expected to schedule the work and audit so that the deadline is met.

Under the Downloads box on the right hand side of this page are:

• Return form
• A draft representation letter for the optional use of party secretaries and auditors.

Note that under the Electoral Act an accompanying statutory declaration is not required.The draft representation letter contains a set of questions to help identify which donations should be included in the return.

Does a party need to make a return if it did not receive any qualifying donations?

Yes, a nil return and an accompanying auditor’s report are still required.

Do component parties need to report on their donations?

Yes, a component party that is a registered political party must make its own return.

What about when a party is only registered for part of the year?

A newly registered party must file a return from the date of its registration to the end of the year concerned.

A party that has its registration cancelled is not required to file a donation return in respect of donations received in the year registration was cancelled.

What does the Commission do with returns and audit reports received?

• Checks to see that the return and audit report are in order.
• Puts the return and audit report on public display within 3 working days of their receipt, and online shortly thereafter.
• Extracts information from them for summary tables, which are also made available online and in its annual report to Parliament.
• Raises any outstanding matters with the party secretary or auditor.
• Considers any response to any matters raised before deciding whether it believes an offence may have been committed. 

What records are party secretaries expected to keep?

Party secretaries must keep proper records of all party donations received.

For the purposes of audit and possible investigation, every party secretary is required to take all reasonable steps to ensure that all records, documents, and accounts are retained that are reasonably necessary to enable the return to be verified.

What information should the party secretary provide for the auditor?

• details of all party donations
• the completed return form
• representation letter (if used) along with covering explanation
• the web address of this guidance.

Can the auditor take a sample of donations rather than look at them all?

The auditor’s review must be of the party's entire party donations so that the auditor can form an opinion on the matters which are required to be covered in the audit report, such as whether the return is accurate and proper records are being kept. Any sampling, drawn in accordance with normal professional auditing practice, must be from across the entire party organisation without excluding any area of the party's receipts. The Commission does not accept any of the following as a 'reasonable excuse' for not providing an audit report on a party's entire party donations:

• cost or time involved in the preparation of the auditor’s report or the servicing of it
• alleged difficulties arising from the location of relevant documentation
• alleged autonomy of organisations within the party.

What should the auditor do if they are unable to give an unqualified opinion?

If the party secretary does not provide all the information required or fails, in the auditor's opinion, to fairly reflect the party's donations in the return or to keep proper records of party donations sufficient to earn an unqualified opinion then the auditor may give a qualified opinion, an adverse opinion, a disclaimer of opinion, or an 'except-for opinion' in accordance with the New Zealand Institute of Chartered Accountants Auditing Standard No.702 "The Audit Report on an Attest Audit".

What happens if an auditor's report does not comply with requirements?

If the auditor’s report does not comply with the requirements of section 210A the party secretary may be required to get a new one.

What should a party secretary do if they find an error or omission in a return already made?

Prepare an amended return, obtain an auditor's report on the amended return, and send both to the Commission as soon as possible.

Could a party secretary be charged with an offence for not complying with the legal requirements?

Where the Commission believes that an offence has been committed it must report the facts on which the belief is based to the police, but before forming any belief it will give the party secretary an opportunity to provide an explanation.

Offences may be committed by a party secretary who fails to, for instance:

• keep proper records of donations and associated accounts information

• supply a full and accurate return with required auditor's report by the deadline.

Party secretaries should familiarise themselves with the precise offence provisions in sections 207N, 210D & 210E of the Electoral Act, as the maximum penalties are substantial.

Where can I get further assistance concerning donation returns?

Contact the Electoral Commission, enquiries@elections.govt.nz or phone (04) 495 0030.