Reporting irregularities in the work of associations

Find out to which institutions you can report irregularities in the work of an association and how

It is possible for various irregularities to occur in the work of any association, so it is good to know in which cases, to whom and in what way one can report certain irregularities.
 

Reporting irregularities in case of an infringement of the statute or other general act of the association

Pursuant to Article 42 of the Act on Associations, if a member of the association is of opinion that the association has infringed the statute or other general act of the association, the member is authorised to warn in this regard the body of the association specified in the statute, or the assembly if the statute does not specify the competent body.

If the warning is not considered within 30 days from the date of the written application and if the application is not acted upon, i.e. if the competent body or assembly is not convened within that period and the irregularities are not remedied within the following 30 days, the member may file a lawsuit with the municipal court having territorial jurisdiction over the place where the registered office of the association is located, for the purpose of protecting their rights under the statute of the association.
 

Reporting irregularities in the work of associations

For the purpose of conducting inspections, the following possible irregularities in the work of an association are reported to the competent administrative authorities in the county where the registered office of the association is located (or to the City Office for General Administration in the case of Zagreb):

• does not report changes regarding the statute, name, registered office address, selection of persons authorised for representation, and dissolution of the association
• uses data arising from changes in legal transactions, or acts in accordance with changes before their entry in the Register of Associations
• does not use the name under which it was entered in the Register of Associations
• does not hold meetings of the assembly and does not submit minutes from regular meetings of the assembly of the association
• does not keep a list of members of the association in the manner prescribed by law.

Reporting irregularities in the activities of associations

Depending on the scope of activities of the association, in accordance with special regulations, irregularities in the performance of activities aimed at achieving the objectives of the association as well as irregularities in the performance of economic activities may be reported to:

• The State Inspectorate
• The Tourism Inspectorate – Ministry of Tourism and Sports

Reports regarding infringements of tax regulations, non-compliance with fiscalisation obligations and distortion of competition are reported to the Tax Administration – Ministry of Finance by calling the toll-free number 0800-1001 or by visiting the local branch office of the Tax Administration in person; irregularities can also be reported to the Customs Administration by calling the toll-free number 0800-1222 or sending an e-mail to javnost@carina.hr.
 

Reporting irregularities in financial operations

Irregularities regarding financial operations, accounting, submission of financial statements, legal acquisition of funds from public and other sources, management of funds, and ascertainment whether funds are used to achieve the objectives for which the association or other non-profit organisation was established are reported to the Ministry of Finance.

Contact data that can be used to report irregularities:

Sektor za financijski i proračunski nadzor (Sector for Financial and Budgetary Supervision)
Veslačka ulica 4
tel: 01/4591-042, fax: 01/4591-123
e-mail: nepravilnosti@mfin.hr
 

Reporting irregularities in using funds acquired from public sources

Except to the Ministry of Finance, irregularities regarding the management of funds from public sources can also be reported to the competent state authorities, local and regional self-government units and other public institutions involved in the implementation of appropriations.
 

Irregularities in the use of EU funds

Find out more about this topic on the website of the Office for Cooperation with Non-Governmental Organisations (NGOs) of the Government of the Republic of Croatia

Irregularities in the use of EU funds.
 

Supervision of the work of an association

Supervision of the work of an association is performed by authorised officials of the competent administrative authority. Supervision is mainly focused on monitoring applications for the registration of changes that associations are required to report in accordance with Article 27 of the Act (changes regarding the statute, name, registered office address, selection of persons authorised for representation, and dissolution of the association) and monitoring whether associations use data arising from changes in legal transactions, act in accordance with changes before entering them in the Register of Associations, use the name under which they were entered in the Register of Associations, hold meetings of the assembly and submit minutes from regular meetings of the assembly of the association, keep a list of members of the association in the manner prescribed by law, and whether an association was dissolved (due to status changes, due to the fact that twice as much time has elapsed than is foreseen for holding regular meetings of the assembly without a meeting being held, and in case the number of members of the association has fallen below the number of founders required for the establishment of an association without a decision to admit new members being made by the competent body of the association within one year from the occurrence of this fact).

If an authorised official of the competent administrative authority finds that the Act on Associations has been infringed, he or she is authorised to order the rectification of deficiencies and irregularities within a specified period, and must submit a decision in this regard to the state administration authority the scope of activity of which encompasses the objectives of establishing the association in question as well as to the state administration authority the scope of activity of which encompasses the economic activities of that association.

An appeal may be lodged against this decision with the Ministry of Justice and Public Administration, and an administrative dispute may be initiated against a decision of the Ministry of Justice and Public Administration by filing a lawsuit with an administrative court having territorial jurisdiction. In this way, legal protection is provided against the decisions adopted in the course of this procedure, and decisions adopted as part of the supervision of the work of associations are executed in accordance with the provisions of the General Administrative Procedure Act regulating execution of decisions (Title V of the General Administrative Procedure Act).