What is financial independence and why is it important for NPMs?

Financial independence: an OPCAT requirement. 

Ensuring the independence of NPMs is among the most important obligations for OPCAT states party. Article 18 of the OPCAT says, in particular, that “States Parties shall guarantee the functional independence of the national preventive mechanisms” (A.18.1) and that “States Parties undertake to make available the necessary resources for the functioning of the national preventive mechanisms” (A.18.3). 

Without financial independence NPMs are unlikely to be able to fulfil their mandates. NPMs that lack financial independence may suffer interventions in their work plan, for example, or be inhibited from carrying out their planned activities. Without adequate resources and the power to decide how to use them, NPMs will be unable to independently decide on their strategy or carry out their operational plan. 

Financial independence includes several linked elements. 

Ability to define its own budget 

The first element of independence is the fact that NPMs should take part in the process to define their own budget. Budgeting is a complex issue and each state has specific processes and procedures. The budgeting process may also vary according to the type of NPMs: whether it is part of an NHRI, a multiple-body or a specialised institution. Each government determines it national budget according to its own resources and priorities. Nevertheless, it is good practice for NPMs to be able to prepare their own budget proposal on the basis of their strategic and operational plans, which is then submitted directly (or as part of the overall NHRI budget for NHRIs as NPMs) to the relevant authority and / or the parliament. 

Being granted adequate resources 

The second element is that NPMs should have adequate resources for carrying out their mandates, including for staff, travel, external experts, and other operational costs (see below for details). What is considered adequate will depend on what is in the NPM strategy and operational plan, and may change over time. 

Control over spending 

The third element is that, once they receive their budget, NPMs should be given control over spending priorities and use of funds, without controls or restrictions that might unduly affect their independence.

Predictability 

A fourth element of independence is predictability and the fact that NPM budgets should be protected from arbitrary reductions from one year to the next. Preventive work is long term and focused on addressing risk factors and root causes at the levels of laws, practices and institutions. Many of these changes take years to achieve, which makes adequate and stable budgets essential if NPMs are to have a team in place who can follow-up on issues and contribute to change over time. Stability allows NPMs to plan their work and not be wary of financial reprisals should their work displease the government of the day.       

In addition, when faced with difficult economic circumstances, state budgets may sometimes have to be reduced. In such circumstances, at a minimum, any NPM budget reduction should not be out of proportion to other core state functions. 

Ability to receive external funding 

It may also be important for NPM independence that they be permitted to receive additional funding from external donors, including the United Nations (in particular the OPCAT Special Fund), the EU and other states. Although it is important to underline that additional funding for specific projects does not release the government from its obligation to properly fund NPMs – a point also made by the SPT. 

A fixed percentage of larger institutional budgets 

For NPMs that are part of larger institutions, such as NHRIs, these same broader principles apply with the added caveat that, to ensure predictability, the NPM budget should be a fixed percentage of the overall institutional allocation.