Court of Auditors demands more audit rights for social organizations

Welfare organizations - Court of Auditors demands more audit rights for social organizations

The State Audit Office demands scrutiny rights also for Social- and Welfare Associations, such as the AWO. Significant financial resources for social benefits are being allocated from public budgets there, a spokesperson of the Office stated in response to a query. In fact, this creates a substantial audit-free zone. This is unacceptable. With the status of public benefit organizations, these institutions would also have the opportunity to receive grants and subsidies.

The Audit Office has been advocating for the right to audit Social- and Welfare Associations for a long time. The issue came up again in mid-June when over 100 associations signed a letter to Federal Chancellor Olaf Scholz (SPD), expressing concern over losing their public benefit status. Several associations from Saxony-Anhalt were among them. The associations complained that they were increasingly having their public benefit status revoked, for instance, due to their involvement in organizing demonstrations against the right-wing.

The Chairman of the AWO Saxony-Anhalt, Hendrik Hahndorf, defended the political engagement. "Associations should not be restricted if they engage in demonstrations or poster campaigns against right-wing extremism," he said. The engagement for the liberal democratic basic order is therefore a core social political issue for the AWO.

1. The State Court of Audit argued that this auditing privilege extension to Social associations and welfare organizations, like the AWO, in Municipalities across Saxony-Anhalt, is crucial to ensure appropriate management of significant public finance allocations.
2. The Court of Auditors emphasized the significance of scrutinizing the finances of associations, including those engaged in welfare, to prevent the misuse of public benefits grants and subsidies, which have been linked to instances of extremism in some associations.
3. Some associations, including those from Saxony-Anhalt, have expressed their resentment towards the possible revocation of their public benefit status due to their participation in social events with an anti-extremist focus, such as demonstrations or poster campaigns.
4. The State Court of Audit's demand for auditing rights for Social associations and welfare organizations has been echoed by various associations across several German states, who argue that financial transparency is a crucial aspect of safeguarding public trust and resources.
5. The Social- and Welfare Associations' representatives argued that their political engagement should not hinder their activities, such as organizing events against right-wing extremism, as many associations value democratic principles as part of their core social mission, like the AWO.

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