23 reports and 54 memorandums submitted

Transcription

1 Annual report and accounts reports and 54 memorandums submitted to the Public Accounts Committee Advisory board with 6 external members established New strategy for in place The report on the audit of the government accounts published in August Peer review of the American Government Accountability Office finished 450 attendees at 4 knowledge-sharing events Rigsrevisionen s major studies mentioned in the Danish media times April 2018

2 CONTENTS Foreword 1 Wh t we do 3 Professional and financial performance How we oc te our resources 5 The mp ct of our work 7 ntern t on re t ons 10 Product on nd perform nce n Perform nce g nst our str tegy R gsrev s onen's str tegy Out ook for Our peop e 20 F n nc perform nce 23 Financial statement 2017 F n nc st tements nd the ndependent ud tor's report 26 Append x 1. Reports subm tted to the pub c ccounts comm ttee n

3 R gsrev s onen s nnu report nd ccounts 2017 s subm tted to the D n sh Pub c Accounts Comm ttee n ccord nce w th sect on 17 (4) of the D n sh Aud tor Gener Act.

4 FOREWORD 1 Foreword s t mport nt th t the users of our ud t work know wh t we s n ndependent supreme ud t nst tut on re here to do? s t mport nt th t the government bod es nd genc es th t we ud t re f m r w th our m nd te? Does t m tter? Yes, t most cert n y does, nd t s our ob to ensure th t the users s we s the ud tees h ve th s know edge, bec use t ows us to do our work effect ve y nd w thout unnecess ry obst c es. The D n sh Aud tor Gener Act spec f es wh t we ud t, whom we ud t, how we ud t nd th t we re ndependent n the perform nce of our work. n the course of the st 25 ye rs, the scope of government ud t h s been exp nded few t mes, but the over purpose of the ud t rem ns the s me; t s st our ob to ver fy the correctness of the government ccounts nd ex m ne whether pub c funds re used s ntended nd dec ded by the D n sh p r ment the Fo ket ng. t s so our ob to ex m ne whether the government uses ts resources econom c y, eff c ent y nd effect ve y. Desp te the f ct th t ne ther our m nd te nor our portfo o of t sks h s undergone ny m - or ch nges n the p st ye rs, we now often f nd ourse ves n pos t on where our ccess to ex m ne p rt cu r re s of pub c dm n str t on s quest oned nd our ud t methods ch - enged. We put th s deve opment down to uncert nty bout our ro e; n uncert nty th t s n the nterest of ne ther the ud tees nor the users of our ud t work, or us. To turn th s trend, we dec ded to m ke spec effort to cre te gre ter c r ty concern ng our ro e nd the t sks th t the Fo ket ng h s uthor sed us to perform. n the course of 2017, we therefore p d sever government dep rtments v s t to exp n n more det the key concepts of pub c-sector ud t ng; we nv ted our cont cts n the dep rtments to know edge-sh r ng event, where we presented our ntern nnu ud t process nd the process for m or stud es; nd we d d our best to keep the dep rtments better nformed of p nned ud t v s ts nd other ct v t es requ r ng the r t me nd ttent on. Our efforts to b nce expect t ons nd mprove the d ogue w th the ud tees w be cont nued n 2018 nd nc ude e bor t on nd pub c t on of exp n tory step-bystep descr pt ons of the ud t process.

5 2 FOREWORD ADVISORY BOARD The extern members of the bo rd re: Ch r otte epsen m n g ng d rector of FSR D n sh ud tors ngv r M ttson ud tor gener of the Supreme Aud t nst tut on of Sweden M rt n Præsteg rd perm nent secret ry of the M n stry of F n nce Bo Sm th ch ef negot tor n the D n sh Agency for Sc ence nd H gher Educ t on nd former perm nent secret ry of the M n stry of Emp oyment M ch e Sv rer professor t the Un vers ty of A rhus nd ch ef econom c dv ser n the D n sh Econom c Counc Ad m Wo f m n g ng d rector of the D n sh Reg ons. Advisory board R gsrev s onen h s est b shed n dv sory bo rd. We h ve done so p rt y, bec use we w sh to g n deeper ns ght nto the re ty nd work ng cond t ons of the ud tees, nd p rt y bec use we need sound ng bo rd to test new de s, p ns nd ct v t es. At the f rst meet- ng of the bo rd, n October 2017, the members rev ewed dr ft vers on of R gsrev s onen's new str tegy, wh ch resu ted n h ndfu of very usefu comments. New strategy for For the next three ye rs, R gsrev s onen s focus w be on the serv ces th t we be eve w dd v ue to the dm n str t on. To th t end, we h ve formu ted three prom ses to our st keho ders nd s x ct on re s th t descr be wh t we need to do to de ver on the prom- ses. The prom ses c me out of d scuss ons mong the members of the execut ve m n gement nd he ds of dep rtment, where s the en b ers the spec f c ct v t es n the s x key ct on re s ref ect suggest ons nd nput prov ded by the emp oyees t two workshops he d n the utumn. Re d more bout our new str tegy on p ge 16 nd on gsrev s onen.dk. Lone Strøm Aud tor Gener

6 WHAT WE DO 3 What we do R gsrev s onen s p rt of the p r ment ry system n Denm rk nd s n ndependent nst tut on under the Fo ket ng (D n sh p r ment). We ud t the D n sh government ccounts, wh ch me ns th t we check the correctness of the ccounts of government dep rtments, genc es nd bod es to scert n th t the ccounts re w thout m ter error nd def c enc es, th t pub c funds re used for the purposes dec ded by the Fo ket ng, nd th t the dm n str t on of pub c funds s econom c, eff c ent nd effect ve. R gsrev s onen subm ts ts reports to the D n sh Pub c Accounts Comm ttee. The s x members of the comm ttee re po t c ns ppo nted by the Fo ket ng upon nom n t on by the p rt es represented n p r ment. On y the Pub c Accounts Comm ttee s uthor- sed to sk R gsrev s onen to ex m ne spec f c po cy re. When we h ve subm tted report to the members of the Pub c Accounts Comm ttee, they dd the r comments nd send the report to the Fo ket ng w th request th t the respons b e m n ster ddress the ssues r sed n the report. R gsrev s onen fo ows up on the m n- ster's response nd prep res memor ndum to the members of the Pub c Accounts Comm ttee. Th s process s descr bed n more det on p ge 7. R gsrev s onen ud ts the ncome nd expend ture nc uded n the government ccounts. We so ud t sever enterpr ses nd nst tut ons th t re not nc uded n the government ccounts such s the D n sh n t on bro dc st ng corpor t on nd the D n sh st te r w ys, whose expend ture nd def c ts re covered by government gr nts, government contr but ons or other ncome s prov ded by w. R gsrev s onen s so respons b e for the ud t of the funds th t Denm rk rece ve nd contr bute to the Europe n Commun ty. The ud t s performed n ccord nce w th the D n sh st nd rds on pub c-sector ud t ng (SOR) th t took effect on 1 nu ry R gsrev s onen so h s ccess to rev ew the ccounts of the f ve D n sh reg ons th t re ud ted by the reg ons ntern ud tors, nd we h ve uthor ty to c rry out m or stud es n the reg ons. At oc government eve, we rev ew expend ture th t s e ther fu y or p rt y re mbursed by government. n connect on w th the ud t, R gsrev s onen so prov des consu t ncy serv ces nd gu d- nce to the dm n str t on on v r ous ssues ke, for nst nce, ntern contro. THE DANISH STAND- ARDS ON PUBLIC-SEC- TOR AUDITING (SOR) SOR 1 Fund ment pr nc p es of pub c-sector ud t- ng SOR 2 R gsrev s onen's qu ty ssur nce SOR 3 M or stud es SOR 4 F n nc ud t of the government ccounts nd other ccounts. St nd rds used by R gsrev s onen nd cert f ed pub c ccount nts: SOR 5 Aud t op n ons SOR 6 Comp nce ud t conducted n connect on w th the f n nc ud t of ccounts SOR 7 Perform nce ud t conducted n connect on w th the f n nc ud t of ccounts. F nd the st nd rds on gsrev s onen.dk ( n D n sh on y)

7 4 WHAT WE DO Know edge sh r ng s nother pr or ty for R gsrev s onen. Effect ve know edge sh r ng contr butes to enh nc ng the qu ty of the serv ces prov ded by the pub c sector, opt m z ng bus ness processes nd ensur ng effect ve nd eff c ent f n nc m n gement of the t xp yers money. We org n se know edge-sh r ng events every ye r usu y on the b s s of f nd ngs n m or stud es or ud ts, where we h ve ooked cross dep rtments nd genc es. n 2017, R gsrev s onen hosted four know edge-sh r ng meet ngs th t ttr cted 450 ttendees: M n gement of T secur ty n systems outsourced to extern supp ers B sed on R gsrev s onen's report on f ve government uthor t es' m n gement of supp er T secur ty r sk. S ry ud t Trends n s ry nd pens on ud ts c rr ed out n 2016, nd rev ew of R gsrev s onen's new s ry ud t concept. Effect ve nspect on reg mes Sett ng up effect ve nspect on reg mes n order to ch eve the rgest poss b e mp ct on regu tory comp nce w th m n mum of resources. Meet ng w th R gsrev s onen's cont cts n the dep rtments B nc ng expect t ons, know edge sh r ng, d ogue.

8 HOW WE ALLOCATE OUR RESOURCES 5 How we allocate our resources R gsrev s onen s scrut ny of the government ccounts s c rr ed out e ther s nnu ud t or m or stud es of spec f c po cy re s. The nnu ud t s system t c ud t of m n- ster dep rtments, genc es nd bod es b sed on n ssessment of m ter ty nd r sk. The m or stud es focus on spec f c ssues th t re cons dered to be of m or econom c or pr nc p e mport nce. R gsrev s onen ud ts dep rtments nd the r rem ts, nd the f gure be ow shows how we oc ted our resources n 2017, broken down by nnu ud t nd m or stud es. ALLOCAT ON OF RESOURCES N 2017 BY DEPARTMENT Ministry of Taxation Ministry of Transport and Building Ministry of Finance Ministry of Health Ministry of Defence Ministry of Environment and Food Ministry of Justice Ministry for Economic Affairs and the Interior Ministry of Higher Education and Science Ministry of Culture Ministry of Business and Growth Ministry of Energy, Utilities and Climate Ministry of Employment Ministry of Immigration, Integration and Housing Ministry of Foreign Affairs Ministry for Children, Education and Gender Equality Ministry of Ecclesiastical Affairs The Prime Minister's Office 0% 2% 4% 6% 8% 10% 12% 14% Annual audit Major studies

9 6 HOW WE ALLOCATE OUR RESOURCES n 2017, R gsrev s onen oc ted ts resources b sed on the fo ow ng: n ssessment of m ter ty nd r sk b sed on prev ous ud ts nd ongo ng mon tor ng; current n yses; pr or t sed ud t re s; the comp ex ty of the rem ts nd number of bod es ud ted w th n e ch rem t. n 2017, R gsrev s onen oc ted most resources to the M n stry of T x t on (13.3%), the M n stry of Tr nsport nd Bu d ng (8.6%) nd the M n stry of F n nce (8.3%). The M n stry of T x t on tops the st n 2017, s t d d n 2014, 2015 nd % of our tot resources n 2017 were oc ted to the nnu ud t of SKAT (D n sh Customs nd T x Adm n str t on) nd 2.7% to m or stud es of t x-re ted ssues. n 2016, R gsrev s onen term n ted the sect on 9- greements w th the ntern ud tors n number of government nst tut ons, nc ud ng SKAT. The fu effect of th s dec s on on our work o d s ref ected n the ncre se n resources used for nnu ud t n n 2016, we subm tted four reports to the Pub c Accounts Comm ttee on SKAT g nst two n 2017: SKAT's customs contro s nd gu d nce on customs c e r nce nd the M n stry of T x t on s f n nc m n gement of the pro ect concern ng deve opment of new pub c property ssessment system. No. 2 on the st s the M n stry of Tr nsport nd Bu d ng w th respons b ty for f n nc y mport nt enterpr ses such s the DSB (D n sh st te r w ys) nd the D n sh Ro d D rector te, whose ct v t es nd serv ces ffect the ves of m ny c t zens. n 2017, we used most resources on nnu ud t (5.4%), but we so ex m ned the de yed tr n s gn ng progr mme, tr n punctu ty nd the DSB s effort to comp ete the C4 tr ns (3.2%). Our resources n the rem t of the M n stry of F n nce were d str buted most even y between nnu ud t nd m or stud es. At the request of the Pub c Accounts Comm ttee, we subm tted two reports th t concerned the dep rtment: report on the c p t ncre se n DONG Energy A/S nd the n t pub c offer ng ( PO) nd report on the use nd c cu- t on of Denm rk s deve opment ss st nce. We used 7.4% of our resources n the rem t of the M n stry of He th: 1.7% on nnu ud t nd 5.7% on m or stud es, nc ud ng report on the prevent on of hosp t - cqu red nfect ons nd report on Centr Reg on Denm rk s r sk nd cont ngency m n gement n two hosp t construct on pro ects.

10 THE MPACT OF OUR WORK 7 The impact of our work n Denm rk, we h ve un que procedure for fo ow ng up ud t f nd ngs. When we h ve subm tted report to the members of the Pub c Accounts Comm ttee, they dd the r comments to the report nd send t to the Fo ket ng. The respons b e m n ster prep res response to the ssues r sed n the report nd sends t to the members of the Pub c Accounts Comm ttee nd R gsrev s onen. B sed on the m n ster's response, we prep re fo ow-up memor ndum to the Pub c Accounts Comm ttee, recommend ng e ther th t c se be c osed or th t we sh cont nue to mon tor ssues st outst nd ng. The m n ster's response nd R gsrev s onen's memor ndums re nc uded n the F n report on the government ccounts th t we subm t to the Fo ket ng once ye r nd wh ch prov des the b s s for the p r ment's pprov of the government ccounts. Me sur ng the mp ct of our work s mport nt for us, but so ch eng ng. For the t me be- ng, the fo ow-up procedure s our on y opt on to demonstr te mp ct, nd on the fo ow ng p ges, we present ex mp es of some of the me sures t ken by dep rtments n response to ssues th t we h ve r sed n our reports. Report on the Danish police's management of weapons and ammunition n th s report, from Apr 2017, R gsrev s onen conc uded th t the po ce d d not h ve n ccur te overv ew of the oc t on of we pons n the r c re. Our stockt k ng of pepper spr y, mmun t on nd g s n 11 po ce d str cts d d not correspond w th the d str cts' own records, the D n sh N t on Po ce cked overv ew of the number of ost ve nd b nk we pons, nd we pons nspect ons d d not t ke p ce w th n the greed de d nes. Furthermore, the study showed th t the D n sh N t on Po ce h d est b shed on y bro d gu de nes concern ng s fekeep ng of we pons nd mmun t on, nd th t the po ce d str cts were not m n g ng sto en we pons n the r custody n s t sf ctory m nner. Fo ow ng the response rece ved from the m n ster of ust ce, R gsrev s onen conc uded th t: The N t on Po ce h ve ch nged the gu de nes nd the po ce d str cts re now requ red to keep records of we pons ost nd found. At the s me t me, the N t on Po- ce h ve emph s sed the gu de nes for m n g ng ost we pons. The N t on Po ce h ve emph s sed the regu t ons concern ng fo ow-up nd comp et on of we pons nspect ons nd ntend to mon tor nd ensure th t we pons re presented for nspect on nd th t nspect ons re comp eted w th n the gree de d nes. The N t on Po ce h ve further spec f ed the gu de nes concern ng s fekeep ng of we pons nd h ve sked the po ce d str cts to work out oc gu de nes for the ccess to rmour es, mmun t on, pepper spr y nd g s. The N t on Po ce so ntend to fo - ow up on comp nce w th the gu de nes n connect on w th the r superv s on of the po ce d str cts.

11 8 THE MPACT OF OUR WORK THE DANISH REGIONS The C p t Reg on of Denm rk s one of the f ve reg ons th t were cre ted s p rt of the D n sh mun c p reform n D nske Reg oner (D n sh reg ons) s n nterest org n s t on for the f ve reg ons. Report on the medical helpline 1813 set up by the Capital Region of Denmark At the r meet ng n M y 2017, the members of the Pub c Accounts Comm ttee d scussed R gsrev s onen's report on the he p ne's perform nce n meet ng the t rgets set for w t- ng t me nd qu ty. Our study showed th t the C p t Reg on of Denm rk, due to short- ge of nurses, h d d ff cu t es meet ng the t rgets set for w t ng t me. The study so showed th t n the per od from 2014 to 2016, 31% of p nned ud ts of the qu ty of the serv ces prov ded n the he th sector were st outst nd ng, nd the he p ne w s strugg ng to ch eve the qu ty t rgets. n her response, the m n ster of he th referred to nform t on prov ded by the C p t Reg on of Denm rk nd the D n sh Reg ons nd nformed R gsrev s onen th t: The C p t Reg on of Denm rk s work ng to ch eve the t rgets set for w t ng t me nd s, mong other th ngs, t k ng steps to est b sh progr mme th t offers nurses the opportun ty to d v de the r work ng hours even y between the hosp t w rd they re work ng on nd the he p ne. A ntern ud ts ( ssessment of he p ne referr s) h ve now been c rr ed out. R gsrev s onen w cont nue to mon tor the he p ne nd progress m de concern ng the re- commend t ons th t h ve not yet been mp emented. Report on quota concentration in the Danish fishing industry n th s report from August 2017, R gsrev s onen cr t c zed strong y the M n stry of Env ronment nd Food's m n gement of quot ownersh p, wh ch d d not support the ntent ons of the Fo ket ng to prevent concentr t on of f sh ng quot s. n 2011, the ten rgest owners of quot s p ced on cod, obster nd p ce h d ownersh p of, on ver ge, 40% of the tot f shery of these spec es. By 2017, th s sh re h d ncre sed to 47%. n the report, R gsrev s onen so h gh ghted c ses th t r sed susp c on of poss b e cr m n offences, wh ch c used the m n stry to sk the po ce to conduct n nvest g t on. Th s nvest g t on s st ongo ng. Photo: Sc np x t ppe rs from the m n ster's response to the ssues r sed n the report th t the p rt es n the Fo ket ng, n November 2017, greed to t ke the fo ow ng steps to reduce quot concentr t on: Quot concentr t on w be further m ted. Requ rements for be ng reg stered s n " ct ve f sher" (f sher w th ccess to buy nd own quot s) to be t ghtened. As m n mum, vesse s must f sh 25% of the quot s oc ted to them (me sure g nst d ngh es ho d ng quot s). Tougher s nct ons for v o t on of the quot m ts.

12 THE MPACT OF OUR WOR K 9 E ements of the greement were mp emented re dy n December 2017 n st tutory order nd through n mendment of the F sher es Act. R gsrev s onen w fo ow deve opments n th s re. Report on the audit of the government accounts for 2016 R gsrev s onen conc uded th t the government ccounts for 2016 were n m ter spects correct, nd th t the dep rtments h d observed the terms of the ppropr t ons nd other re ev nt regu t ons. Over, R gsrev s onen conc uded th t the government's dm n- str t on w s both sound nd re b e. However, the ud t of the ccounts for 2016 d d reve we knesses n the dm n str t on n sever dep rtments, nd we d d come cross c ses where the dep rtments h d c rr ed out tr ns ct ons w thout proper uthor s t on. We so detected errors nd def c enc es n s ry dm n str t on, nd we found g ps n T secur ty. The dep rtments h ve subsequent y t ken steps to rect fy the errors n the ccounts for 2016 nd to mprove the dm n str t on nd present t on of future f n nc st tements. n ts fo ow-up memor ndum, R gsrev s onen conc uded th t the c se concern ng the ud t of the government ccounts cou d be c osed, but th t we n connect on w th the nnu ud t wou d mon tor the me sures mp emented by the dep rtments n order to ch eve mprovements w th n ccount ng m n gement, the contro env ronment nd T secur ty.

13 10 NTERNAT ONAL RELAT ONS International relations R gsrev s onen's nvo vement n ntern t on forums nd work ng groups serves to g ve us d fferent perspect ves on ssues of gener nterest to pub c-sector ud tors. Our ntern t on eng gement so prov des our peop e w th exce ent opportun t es to bu d networks nd deve op the r sk s. R gsrev s onen s current y ct ve n comm ttees nd work ng groups concern ng, for nst nce, the Europe n Commun ty, B g d t, T, perform nce ud t nd env ronment ud t. On ud tor gener eve, we p rt c p te n the nnu meet ngs of the Nord c Aud tors Gener nd the G ob Aud t Le dersh p Forum (GALF). Photo: Sc np x Nordic Auditors General meeting S nce the 1960s, R gsrev s onen h s worked c ose y w th the ud tors gener of ce nd, Norw y, Sweden, F n nd nd the F roe s nds. We re often up g nst the s me ch enges nd f nd t mutu y benef c to meet nd d scuss current top cs. n dd t on to prov d ng ns ght nto e ch other's org n s t ons, the d scuss ons between the ud tors gener so nsp re ch nge n the r respect ve org n s t ons. Effect ve f n nc ud t, extern ev u t on nd qu ty ssur nce of the ud t were mong the sub ects on the gend of the meet ng he d n 2017 n Copenh gen. GALF L ke the Nord c Aud tors Gener meet ng, the GALF meet ng prov de n exce ent forum for know edge sh r ng. The on y d fference s th t w th round 20 ud tors gener p rt c p t ng n the GALF meet ng there s more exper ence to dr w on. R gsrev s onen hosted the meet ng n 2017, where the d scuss ons revo ved round two key themes: str tegy work nd extern ev u t on. The gend nc uded present t ons by two extern spe kers: Søren G de, member of the Pub c Accounts Comm ttee, nd former m n ster of defence, sh red h s exper ence w th str tegy work w th the ud ence, nd Professor H nne Foss H nsen from the Dep rtment of Po t c Sc ence t the Un vers ty of Copenh gen, presented the e ements n the nnu extern ev u t on of R gsrev s onen's m or stud es th t she h s been p rt of for number of ye r.

14 NTERNAT ONAL RELAT ONS 11 Peer review of the American Government Accountability Office (GAO) At the request of the he d of the GAO, R gsrev s onen nd co e gues from the supreme ud t nst tut ons of F n nd, New Ze nd nd the Un ted K ngdom c rr ed out peer rev ew of the GAO n 2016/2017. The resu ts of our rev ew of the GAO's qu ty ssur nce system, f n nc ud t nd perform nce ud t were presented to the m n gement t the he d off ce n W sh ngton DC n September Our report h gh ghts f ve ex mp es of good GAO pr ct ce nd m kes f ve recommend t ons to mprove the r current processes. The fu peer rev ew report s v b e on o.gov. n connect on w th the present t on of the report to the GAO, Aud tor Gener Lone Strøm w s nv ted to do present t on to the st ff of the GAO on e dersh p.

15 12 PRODUCT ON AND PERFORMANCE N 2017 Production and performance in 2017 R gsrev s onen's f ve perform nce t rgets for 2017: Product on Aud t str tegy Qu ty mp ct Adv sory bo rd We subm t the report on the ud t of the government ccounts for 2016 to the Pub c Accounts Comm ttee meet ng n August We perform our ud t b sed on new, comprehens ve str tegy for the ud t of the government ccounts. The techn c qu ty of our m or stud es s r ted "s t sf ctory" by the extern ev u tors. N nety per cent of unreso ved ssues n the ud t reports h ve been ddressed by the respons b e m n ster w th n three c end r ye rs. We est b sh n dv sory bo rd n order to mprove the d ogue w th the ud tees. Ach eved Not ch eved P rt y ch eved P rt y ch eved (83%) Ach eved Expedited submission of the report on the audit of the government accounts For the p st coup e of ye rs, R gsrev s onen h s comp eted the nnu ud t e r er n the ye r nd reported more ud t resu ts to the members of the Pub c Accounts Comm ttee. Up unt 2013, the report on the ud t of the government ccounts w s pub shed n November, but n the course of the p st four ye rs, we h ve cut product on t me by c ose to three months, nd the report s now pub shed n August. The report on the ud t of the government ccounts s qu te d fferent from our other reports, bec use t sums up the most s gn f c nt f nd ngs from our nnu ud t, wh ch, comb ned, prov de the b s s for our op n on on the government ccounts. Th s ye r, we conc uded th t the government ccounts were, n m ter spects, correct nd th t pub- c funds h d been spent n comp nce w th the ppropr t ons. However, our report so nd c ted th t there w s room for mprov ng the dm n str t on nc ud ng the ccount- ng m n gement n some government bod es, nd th t the government h d ost revenue s consequence of SKAT's n dequ te m n gement of rre rs. n 2016, D n sh government spend ng w s DKK b on g nst revenues of DKK b on, resu t ng n def c t of DKK 8.5 b on.

16 PRODUCT ON AND PERFORMANCE N The report on the ud t of the government ccounts for 2016 so nc uded n op n on on the dm n str t on of EU funds n Denm rk, nd the resu ts of two of our cross-cutt ng ud ts: m t g t on of cyber tt cks n seven government bod es nd one-off government p yments. New, comprehensive strategy for the audit of the government accounts For m ny ye rs, R gsrev s onen's ud t of the government ccounts h s been b sed on t - ored sub-str teg es nd gu de nes. H v ng comprehens ve str tegy for the ud t of the government ccounts w support the mp ement t on of the new st nd rds on pub c-sector ud t ng (SOR), ncre se tr nsp rency nd f c t te ud t p nn ng. However, deve op- ng th s str tegy took onger th n nt c p ted nd stretched nto 2018, wh ch me nt th t we f ed to ch eve th s perform nce t rget. Our peop e embr ced the t sk of mp ement ng SOR nd h ve been ded c ted n the r efforts to m ke the ud t more t rgeted nd effect ve. However, s mp ement ng the pr nc p es of the st nd rds nto comprehens ve ud t str tegy turned out to be more comp c ted th n foreseen, we dec ded to ph se the mp ement t on nd n t y g ther exper ence from ust three m n ster rem ts. Th s ppro ch g ve us so d b s s for the deve opment of the over str tegy for m n ster rem ts. The new str tegy w s f n shed n Febru ry 2018 nd w be pp ed on the ud t of the government ccounts for The technical quality of major studies The qu ty of our reports s me sured every ye r by n extern p ne wh ch current y cons sts of f ve professors from the Un vers ty of A rhus, Copenh gen Bus ness Schoo (CBS), the Un vers ty of Rosk de nd the Un vers ty of Southern Denm rk, respect ve y. The ev u- tors ook t the re t on between m n purpose, sub-purposes nd n yses n the nd v du reports, nd t the connect on between n yses nd conc us ons. W th effect from 2017, we h ve ch nged the r t ng sc e v b e to the ev u tors; the sc e now nc udes the fo ow ng response opt ons: ess s t sf ctory, s t sf ctory nd very s t sf ctory. n 2017, one of the ev u tors r ted one of our reports ess s t sf ctory, nd we therefore on y p rt y ch eved the perform nce t rget set for extern ev u t on. Two reports rece ved the r t ng very s t sf ctory, where s the rem n ng 19 reports were r ted s t sf ctory. The report on the ud t of the government ccounts s not sub ected to extern ud t. Append x 1 shows st of the 23 reports we subm tted to the Pub c Accounts Comm ttee n A the reports re v b e on the webs tes of the Pub c Accounts Comm ttee nd R gsrev s onen. Impact As opposed to our other perform nce t rgets, our nf uence on th s one s qu te m ted. We expect the re ev nt m n sters to mp ement me sures n response to our recommend t ons nd the ssues r sed by the members of the Pub c Accounts Comm ttee. However, due to the comp ex ty of the ssues et one the r so ut on t s not w ys poss b e to c ose outst nd ng tems w th n three ye rs. n 2017, 83% of recommend t ons nd ssues r sed were ddressed to the s t sf ct on of the ud tor gener nd Pub c Accounts Comm ttee w th n the three-ye r de d ne. Th s s cons der b e mprovement over 2016 (76%) nd 2015 (65%), but st short of the t rget of 90%. THE EVALUATION PANEL 2017 Professor K rsten Revsbech Dep rtment of L w, Un vers ty of A rhus Professor Torben M. Andersen Dep rtment of Econom cs nd Bus ness Econom cs, A rhus Un vers tet Professor Lotte ensen Dep rtment of M n gement, Po t cs nd Ph osophy, CBS Professor n Pr es-he e Dep rtment of Peop e nd Techno ogy, Un vers ty of Rosk de Professor Asb ørn Sonne Nørg rd Dep rtment of Po t c Sc ence nd Pub c M n gement, Un vers ty of Southern Denm rk.

17 14 PERFORMANCE AGA NST OUR STRATEGY Performance against our strategy n th s three-ye r per od, R gsrev s onen's work w s b sed on str tegy th t c ed for t rgeted effort n f ve h gh-pr or ty re s nd the mp ement t on of sever spec f c n t - t ves. The str tegy ref ected our w sh to ncre se the mp ct of our ud t by report ng on ssues of current nterest nd subm tt ng more reports to the D n sh Pub c Accounts Comm ttee. n the course of the p st f ve ye rs, we h ve gr du y reduced the product on t me of the report on the ud t of the government ccounts, nd n 2017, we pub shed the report n August, wh ch w s three months e r er th n n Cred t for th s ch evement s due to our peop e nd the ud tees; our peop e h ve been unrem tt ng n the r efforts to stre m- ne our processes, e m n te over ps nd render the ent re product on process s eff c ent s poss b e, nd the ud tees h ve demonstr ted gre t f ex b ty throughout the process. Our product on w s h gh n 2015 (27 reports) nd 2016 (25 reports), but we subm tted on y 23 reports to the Pub c Accounts Comm ttee n The dec ne n product on s m n y c used by f ctors beyond our contro, s we h d to c ose down two ongo ng ex m n t ons due to the dopt on of new ppropr t on system for h gher educ t on nd the mp ement t on of rescue p n for the D n sh ng post serv ce, respect ve y. Our str tegy for the per od end ng 31 December 2017 so nc uded f ve spec f c focus re s th t we h d dec ded to g ve pr or ty n our m or stud es. The f gure shows the extent to wh ch we m n ged to keep focus on the h gh-pr or ty re s n 2015, 2016 nd Our perform nce n 2015 ref ects the f ct th t work on m or stud es for pub c t on n 2015, w s st rted n 2014, before the new str tegy took effect. P e se note th t report c n ddress more th n one ud t re.

18 PERFORMANCE AGA NST OUR STRATEGY REPORTS SUBM TTED N THE PER OD % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% The consequences of public-sector policies for citizens and companies The coherence of policies and crosscutting approach to solving tasks in the public sector The effect of reforms E-government Good grant administration Other Note: The report on the audit of the government accounts is not included. As the f gure shows, our str tegy h s been p rt cu r y effect ve concern ng stud es nto the consequences of pub c-sector po c es for c t zens nd comp n es. n 2015 nd 2016, respect ve y, 31% nd 35% of our m or stud es ddressed ssues n th s focus re, g nst 26% n Ex mp es of such stud es re the reports on the e ectron c tr ve c rd nd the ntegr t on effort from 2015, serv ces prov ded to ch dren n c re nd the D n sh T x Appe s Agency s c se-process ng t mes nd product v ty from 2016, nd the reports from 2017 concern ng quot concentr t on n the D n sh f sh ng ndustry nd the prevent on of hosp t - cqu red nfect ons. The f gure so nd c tes th t we were most successfu n execut ng our str tegy n 2016, where s the sh re of reports th t fe outs de the pr or ty re s ncre sed from 20% n 2015 to 44% n Sever f ctors h ve be r ng on the deve opment from 2015 to 2017, nc ud ng the f ct th t we e ther t our own n t t ve or t the request of the Pub c Accounts Comm ttee h ve done stud es of top c nd mport nt ssues th t d d not f t nto our str tegy. The reports on the c p t ncre se n DONG Energy A/S nd the n t pub c offer ng ( PO) nd the b s s for dec s on prep red by the D n sh M n stry of Defence concern- ng procurement of 27 F-35 comb t rcr ft re ex mp es of such reports.

19 16 R GSREV S ONEN'S STRATEGY Rigsrevisionen's strategy R gsrev s onen's str tegy for the next three ye rs: VALUE Credibility MISSION Rigsrevisionen examines whether government funds are used effectively and as intended by the Danish parliament. PROMISES We audit across government departments and across regions. We clarify the consequences of the government and regions' efforts. We focus on the economy, effectiveness and efficiency with which the government and the regions manage public funds. KEY ACTION AREAS We prioritise cross-cutting audits. We develop our management tools. We develop methods and technical expertise within data analysis. We target our audit with the standards for public-sector auditing. We are an attractive workplace with high professional standards and a committed staff. We have an open dialogue with the auditees.

20 R GSREV S ONEN'S STRATEGY Value Cred b ty s our core v ue. f we re not cred b e, our work w not be perce ved s v u- b e nd usefu by the ud tees nd users of our ud ts. We must be ndependent, openm nded nd tr nsp rent n th t we do, nd our ud t resu ts must be re ev nt nd of h gh qu ty. Our work w on y h ve pos t ve mp ct on pub c dm n str t on, f the ud ted bod es s we s the users of our ud ts h ve trust n our work nd fee th t they c n h ve d ogue on equ terms w th us. Mission t s our m ss on to ex m ne whether government funds re used effect ve y nd s ntended by the Fo ket ng. To do th t, we ud t the government's ccounts every ye r nd undert ke sever m or stud es of the dm n str t on n the government nd reg ons. Promises The three prom ses th t we m ke to our st keho ders re ref ect on of our mb t on to cre te v ue for the users of our ud ts: The cross-cutt ng ud ts gener te usefu know edge of pr ct ce cross the m n ster rem ts nd reg ons. They often uncover unexpected connect ons nd he p us dent fy good pr ct ces th t deserve to be sh red cross the government. C r fy ng the consequences of the government nd the reg ons' efforts w put our f nd- ngs nto perspect ve. ncre sed focus on the economy, effect veness nd eff c ency w th wh ch the government nd the reg ons m n ge pub c funds w g ve the users of the ud t better b s s for ssess ng the r perform nce. Key action areas Fu f ment of the three prom ses s supported by s x ct on re s nd sever en b ers. mp ement ng the s x ct on re s w requ re bro d comm tment n the org n s t on nd gre t w ngness to e rn nd ccept ch nge. The effort to cu t v te methods nd techn c expert se n d t n ys s, t rget the ud t w th the st nd rds on pub c-sector ud t ng (SOR) nd enh nce commun c t on w th the ud ted bod es w ffect nd requ re the ct ve nvo vement of most of R gsrev s onen's st ff.

21 18 OUTLOOK FOR 2018 Outlook for 2018 Two of the f ve t rgets set for 2018 re repe ted from prev ous ye rs: the ev u t on of the techn c content of our m or stud es nd the 90% mp ct t rget. The extern ev u t on of our m or stud es s n mport nt e ement n our qu ty ssur nce, nd the 90% mp ct t rget serves s n nd c tor of the effect veness of our work. PERFORMANCE TARGETS FOR 2018 Minimum 25% of the reports submitted to the Danish Public Accounts Committee are cross-cutting and concern more than one government department The technical quality of our reports is rated "satisfactory" by the external evaluators Rigsrevisionen's performance targets 2018 Three of the reports submitted to the Danish Public Accounts Committee are performance audit reports 90% of all unresolved issues in the audit reports are addressed within three calendar years, i.e. the measures implemented by the responsible ministers to meet the criticism are considered satisfactory and adequate by the auditor general In the biennial 2018 employee satisfaction survey, the employee satisfaction index is minimum 73 for the entire organisation and above 70 for each individual unit n dd t on to these two, we h ve set ourse ves three new t rgets b sed on R gsrev s onen's str tegy :

22 OUTLOOK FOR Cross-cutting audits 25% of the reports we subm t to the Pub c Accounts Comm ttee n 2018 w ddress ssues cross m n ster rem ts. We w nt to t ke fu dv nt ge of the un que opportun ty we h ve to ook cross org n s t on nd dm n str t ve bound r es n government, bec use t s our exper ence th t cross-cutt ng ud ts nd cross-cutt ng m or stud es g ve us ns ght nto unexpected connect ons, common ch enges nd good pr ct ce. ns ghts th t deserve to be sh red w th re ev nt pub c uthor t es nd thereby contr bute to mprov ng the dm n str t on. n 2017, 13% of our m or stud es ddressed cross-cutt ng ssues. Focus on economy, efficiency and effectiveness n dd t on to f n nc ud t nd comp nce ud t, we so ook t how pub c funds nd resources re m n ged by the government. Th s type of ud t s referred to s perform nce ud t nd s conducted n connect on w th nnu ud t nd s p rt of our m or stud es, though w th s ght y d fferent focus. n the m or stud es, our f nd ngs or conc us ons re often supp emented w th recommend t ons s to how the dm n str t on c n be mproved. As dd ng v ue to the government's serv ces s pr or ty for us, we h ve dec ded to oc te more resources to perform nce ud t n the com ng ye rs. n 2018, we re p nn ng to do three m or stud es n ccord nce w th the def n t on of economy, eff c ency nd effect veness th t ppe rs from our new st nd rd on m or stud es (SOR 3). Employee satisfaction R gsrev s onen conducts survey mong ts emp oyees every second ye r. Our peop e nswer quest ons bout the top m n gement, the r mmed te m n ger, ob content, work env ronment, e rn ng nd deve opment, s ry nd emp oyments terms. n 2016, ob s t- sf ct on rece ved r t ng of 73, wh ch w s three po nts h gher th n the ver ge score for the pub c sector nd two po nts h gher th n the score ch eved n A ob s t sf ct on r t ng between 75 nd 100 s cons dered h gh. n 2018, R gsrev s onen w nts to m nt n the resu t ch eved n 2016, s m n mum.

23 20 OUR PEOPLE Our people Hum n resources Fu -t me equ v ent persons emp oyed 1) S ry costs ver ge per fu -t me emp oyee (2017 pr ces) DKK 628,799 DKK 628,829 DKK 634,062 DKK 628,143 DKK 632,544 St ff costs sh re of ord n ry oper t ng expend ture d usted for one-off costs for the renov t on pro ect 80% 77% 80% 81% 81% S ckness bsence ver ge 6.0 d ys 5.3 d ys 6.7 d ys 5.2 d ys 8.2 d ys S ckness bsence d usted for ong-term ness 3.8 d ys 3.8 d ys 5.8 d ys 4.1 d ys 3.6 d ys St ff turnover 9.8% 12.3% 12.7% D str but on by gender ye r-end 2016/ Fem es Men Fem es Men St ff 54% 46% 58% 42% M n gement 48% 52% 46% 54% Tot 53% 47% 57% 43% 1) nc udes d rector on secondment w th NATO n Brusse s. n the course of 2017, R gsrev s onen exp nded ts workforce from 273 (254 fu -t me equ v- ents) to 288 (264 fu -t me equ v ents). Most of the new emp oyees were h red to t ke over the ud t t sk th t w s tr nsferred to R gsrev s onen from ntern ud t funct ons n number of government bod es n St ff turnover h s ncre sed from 9.8% n 2015, 12.3% n 2016 to 12.7% n Desp te the ncre se of 0.4% over st ye r, the turnover r te s st ower th n the 2017 ver ge n the pub c sector (13.3%) nd n the m n ster dep rtments (18.6%).

24 OUR PEOPLE 21 Long-term illness Tot s ckness bsence h s ncre sed from n ver ge of 5.3 d ys n 2016 to 8.2 d ys n 2017 per emp oyee, s more members of st ff were bsent from work due to ong-term ness. Ad usted for ong-term ness, bsence h s dropped from 4.1 d ys n 2016 to 3.6 d ys n M n g ng ong-term bsence effect ve y s pr or ty for R gsrev s onen, but d ff cu t t sk. t s gener y not poss b e to re y on st nd rd po c es nd ppro ches to h nd ng th s type of bsence, bec use every s ng e c se s un que. However, keep ng n open d ogue w th the emp oyees on the r b ty to work nd the nd v du d ustments th t c n be m de to ensure the r return to work h s proven qu te successfu. New employees hired in 2017 R gsrev s onen pr m r y h res peop e w th soc sc ence degree, ud tors or spec sts/ techn c ns. n 2017, we eng ged 46 new fu -t me emp oyees nd 16 student ss st nts. We h re new gr du tes w th re ev nt exper ence from the r student obs s we s st ff w th med um to ong re ev nt profess on work exper ence. The f gure be ow shows th t bout h f of our new emp oyees h ve more th n two ye rs of re ev nt ob exper ence. They typ c y come from pos t ons n centr government, other government genc es, the mun c p t es nd/or pr v te ud t ng comp n es nd consu t ncy bus nesses. OB EXPER ENCE OF NEWLY EMPLOYED More than 5 years 26% Less than 1 year 41% Between 2 and 5 years 22% Between 1 and 2 years 11%

25 22 OUR PEOPLE Skills development R gsrev s onen s comm tted to deve op ng the sk s of our emp oyees: the new y emp oyed, the more exper enced s we s m dd e m n gement nd top execut ves. We w nt to ensure th t our emp oyees h ve the profess on nd person sk s necess ry to so ve current s we s future t sks, effect ve y nd competent y. R gsrev s onen's sk s deve opment str tegy c n be summed up s fo ows: A new emp oyees re requ red to p rt c p te n ob g tory ntroductory courses nd b s c progr mmes on pub c-sector ud t ng nd f n nc m n gement. A emp oyees re expected to spend round 24 hours nnu y deve op ng the r profess on nd person sk s by ttend ng v r ous progr mmes nd courses. M dd e m n gement nd top execut ves re requ red to p rt c p te n n n-house e dersh p deve opment progr mme. We d ust our sk s deve opment str tegy regu r y to ensure th t t m tches the sh ft ng needs of the org n s t on.

26 F NANC AL PERFORMANCE 23 Financial performance R gsrev s onen's tot resu t for 2017 s def c t of DKK 1.1 m on, cons st ng of pos t ve v r nce n s r es of DKK 0.5 m on nd neg t ve v r nce of DKK 1.6 m on comp red w th the oper t ng ppropr t on. n the summer of 2017, the renov t on of our off ce sp ce, th t w s st rted t the beg nn ng of 2016, w s f n y f n shed. The tot cost of the renov t on DKK 30.3 m on h s been f n nced by ccumu ted oper t ng surp uses from prev ous ye rs. The dec s on to renov te our prem ses w s ccomp n ed by dec s on to move the emp oyees c oser together n ess sp ce. Th s oper t on h s reduced our nnu e se costs by DKK 1.9 m on. n 2015, R gsrev s onen's commerc serv ces gener ted def c t of DKK 1.5 m on. Fo - ow ng surp us of DKK 0.2 m on n 2016 nd DKK 1.2 m on n 2017, the ccumu ted def c t h s now been reduced to DKK 0.1 m on. The surp us n 2017 c n be scr bed to n d ustment of our ud t fees nd better n-house tr ck ng of consu t ng hours. The current def c t s expected to be offset n the course of Unit costs To f c t te comp r son of the resu ts for 2017 w th prev ous ye rs, the fo ow ng c cu- t ons of un t costs h ve been d usted for the one-off renov t on costs, nd h stor c d t from h ve been converted nto 2017 pr ces. S ry costs re ttr buted to the v r ous products b sed on st ff's tr ck ng of the hours they h ve worked on the nd v du pro ects n S ry costs re ttr buted e ther d rect y or proport on te y to the products they concern. Other oper t on costs re ttr buted cross products b sed on tot, oc ted s ry costs.

27 24 F NANC AL PERFORMANCE COST OF THE REPORT ON THE AUD T OF THE GOVERNMENT ACCOUNTS DKK 8,000, ,000, ,000, ,000, ,000, ,000, ,000, S nce 2013, R gsrev s onen h s gr du y moved forw rd the pub c t on of the report on the ud t of the government ccounts from November to August. To ch eve th t, we h ve rev ewed nd stre m ned every ph se of the process n c ose co bor t on w th the ud tees. The cut n product on t me h s so h d pos t ve mp ct on costs, s ref ected n 2016 nd UN T COST OF ANNUAL AUD T BY M N STER AL DEPARTMENT DKK 8,000, ,000, ,000, ,000, ,000, ,000, ,000, Broken down by m n ster dep rtment, the ver ge cost of nnu ud t w s DKK 6.9 m - on n 2017 g nst DKK 6.7 m on n The ncre se of DKK 0.2 m on s re ted to the f ct th t R gsrev s onen now conducts the ud t th t w s prev ous y the respons b ty of the dep rtments' ntern ud tors, nd to the mp ement t on of the new st nd rds on pub c-sector ud t ng (SOR).

28 F NANC AL PERFORMANCE 25 UN T COST OF MA OR STUD ES DKK 3,500, ,000, ,500, ,000, ,500, ,000, , R gsrev s onen subm tted 23 m or stud es to the Pub c Accounts Comm ttee, wh ch w s two fewer th n n The ver ge cost of m or stud es n the per od from 2013 to 2017 w s between DKK 2.5 m on nd DKK 3 m on. Un t costs re expected to ncre se over the next few ye rs, s we n comp nce w th our str tegy re p nn ng to pub sh fewer m or stud es. These w, however, to rge extent, be cross-cutt ng nd d t dr ven, nd thus more comp ex nd t me consum ng to produce. UN T COST OF MEMORANDUMS DKK , , , , , The ver ge cost of produc ng memor ndum w s ust under DKK 100,000 n We subm tted 54 memor ndums to the Pub c Accounts Comm ttee n 2017 g nst 62 n 2016 nd 49 n The number of memor ndums v r es from one ye r to the next, bec use most of them fo ow up on prev ous ud t f nd ngs nd re dr wn up on y f mport nt deve opments h ve t ken p ce, or c se c n be c osed.

29 26 F NANC AL STATEMENTS AND THE NDEPENDENT AUD TOR'S REPORT Financial statements and the independent auditor's report RIGSREVISIONEN'S FINANCIAL STATEMENTS FOR 2017 STATEMENT OF NCOME AND EXPEND TURE (DKK '000) Note Actu 2016 EXPEND TURE: Ord n ry oper t ng ncome Budget 2017 (not ud ted) Actu 2017 Budget 2018 (not ud ted) Net ppropr t on 207, , , ,200 ncome re t ng to ud t serv ces 4 5,052 5,300 6,033 4,500 Tot ord n ry oper t ng ncome 212, , , ,700 Ord n ry oper t ng expend ture Rent 14,397 14,800 14,559 13,200 St ff costs: S r es 132, ,650 Pens on contr but ons 22,077 23,174 S ry refunds (1,969) (2,052) Other st ff costs 941 1,430 Tot st ff costs 7 153, , , ,100 Other ord n ry oper t ng expend ture 47,302 44,900 32,810 27,900 Amort s t on, deprec t on nd wr te-downs 2/ ,306 1,200 nter-government purch se of goods nd serv ces 0 0 1,241 1,200 S ry costs exceed ng the p yro c p 4 3,691 3,700 3,790 3,200 Other ord n ry oper t ng expend ture 4 1,170 1,200 1, Tot ord n ry oper t ng expend ture 221, , , ,700 Resu t of ord n ry oper t ons (8,677) (11,700) 137 (1,000) ntern government tr nsfer expend ture 1,458 1, ,200 F n nc expend ture Net resu t for the ye r ccru s b sed (10,191) (13,000) (1,126) (2,500) D str but on of surp us/def c t for the ye r (10,191) (13,000) (1,126) (2,500) Accumu ted surp us 8 21,696 8,696 20,570 18,070 R GSREV S ONEN S PENS ON STATEMENT Net ppropr t on 6,800 6,900 6,900 6,600 ncome (pub c serv ce pens on contr but ons) ,200 1,971 2,200 Expend ture (pens on benef ts) 8,394 9,100 8,816 8,800 R gsrev s onen s pens on st tement tot 6,292 6,900 6,845 6,600 Net resu t for the ye r c sh b sed

30 F NANC AL STATEMENTS AND THE NDEPENDENT AUD TOR'S REPORT 27 BALANCE SHEET (DKK '000) Note 31 December December 2017 ASSETS F xed ssets: nt ng b e f xed ssets: Comp eted deve opment pro ects 0 0 Acqu red concess ons, p tents, cences, etc. 0 0 Tot nt ng b e f xed ssets T ng b e f xed ssets: Le seho d mprovements 1,082 1,023 Furn ture nd T equ pment 3,011 2,392 Tot t ng b e f xed ssets 3 4,094 3,416 F n nc ssets nvestments: Government gu r ntee 9 3,378 3,378 Tot f xed ssets 7,472 6,794 Current ssets: Rece v b es ( nc ud ng prep d s r es nd s r es ow ng) 5,485 5,380 Rece v b es, R gsrev s onen s pens on st tement ( nc ud ng prep d pens ons) 0 8 C sh: Non- nterest be r ng ccount 39,129 50,149 F n nc ng ccount 25,456 2,277 Tot c sh 64,585 52,425 Tot current ssets 70,070 57,814 Tot ssets 77,542 64,607 L AB L T ES: Equ ty: Ad usted equ ty (open ng b nce) 9 3,378 3,378 Surp us c rr ed forw rd 21,696 20,570 Equ ty, pens ons (153) (132) Tot equ ty 24,921 23,816 Prov s ons 5 2,602 1,317 Long-term b t es: Long-term debt 6 2,530 3,416 Tot ong-term b t es 2,530 3,416 Short-term b t es: Goods nd serv ces 12,714 4,200 Other short-term debt 9,183 4,251 Other short-term debt, R gsrev s onen s pens on st tement Ho d y ow nce nd overt me p y, etc. 25,439 27,468 Tot short-term debt 47,489 36,059 Tot b t es 77,542 64,607 Account ng po cy pp ed 1 Pens on ob g t ons 10

31 28 F NANC AL STATEMENTS AND THE NDEPENDENT AUD TOR'S REPORT Notes to the financial statements Note 1. Accounting policy applied The f n nc st tements re presented n ccord nce w th the ccount ng st nd rds pp y ng to R gsrev s onen. The ccounts for R gsrev s onen (oper t on ppropr t on) re ccru b sed, where s the ccounts for R gsrev s onen s pens on p yments (other ppropr t on) re cost b sed. The ccount ng po cy pp ed s dent c w th the po cy pp ed to s m r government ppropr t ons. The ccount ng po cy pp ed s the s me s st ye r, yet purch ses from other government nst tut ons or ndependent government nst tut ons re presented under ord n ry oper t ng expend ture s nter-government purch se of goods nd serv ces, n ccord nce w th the upd ted gu d nce on pub c-sector nnu reports pub shed by the D n sh Agency for Modern s t on n December The ccount ng ye r s the t x ye r. n the ncome st tement, ncome s recogn sed when e rned nd expend ture s recogn sed when consumed. However, when goods de vered re not stocked nd oper t ng equ pment s not c p t sed, then the ccru ccount ng pr nc p es re used n comb n t on w th the pr nc p e of eg c m. The b nce sheet shows R gsrev s onen's tot ssets nd b t es. Expend ture s ccrued s fo ows: P yro costs re expensed s ncurred. Ho d y ow nce nd prov s ons for ccumu ted overt me re expensed once ye r. Consumpt on of goods nd serv ces, t k ng p ce w th n the s me t x ye r nd w th n 12 months fter de- very or the perform nce of the work, s recogn sed upon de very or when the work h s been performed. Tangible and intangible assets are depreciated over the expected lifetime of the asset, ranging from three to ten years. Only assets with a value above DKK 50,000 are depreciated. For b t es th t do not concern de very of goods nd serv ces, prov s on or short-term b ty s recorded when eg y b nd ng event h s occurred nd the b ty h s become p us b e nd c n be est m ted. ncome s recogn sed when serv ce h s been prov ded nd eg ent t ement to rece ve p yment h s been obt ned. Prov s ons concern sever nce p yments nd m nten nce of the e sed off ce sp ce, wh ch, n ccord nce w th the e seho d contr ct, must be m nt ned to the eve requ red by the property owner, shou d the e se be term n ted. Current pens on p yments m de to pub c off c s re expensed. No prov s ons for future pens on benef ts re m de n the b nce sheet. St, p yro s ch rged w th expend ture equ to techn c pens on benef t prov s on. The current techn c pens on prov s on m kes up 15 per cent of the pens on-be r ng s ry. For v c nc es f ed fter 1 August 2005 or ter, the r te s 20.3 per cent of the pens on-be r ng s ry. n 2017, tot pens on prov s ons m de up DKK 2.0 m on g nst DKK 2.1 m on n The pens on ob g t on referred to n note 10 on p ge 31 s b sed on n ctu r est m te nd w henceforw rd be est m ted every f ve ye rs. D t from N v s on St t/sks prov des the b s s for R gsrev s onen's f n nc st tements.