Report on the audit of the Danish public accounts for 2019
The purpose of the audits has been to assess whether the information presented by the government departments in the public accounts is correct. We have also checked whether the departments are complying with the terms of appropriations. The report answers the following questions:
- Are the public accounts in all material respects correct, i.e. prepared in compliance with the relevant appropriation acts and the government accounting regulations?
- Has the government in all material respects complied with the appropriations and transaction regulations?
The Danish public accounts for 2019 are in all material respects correct, and the government has in all material respects complied with the terms of the appropriations, with the exception of the consequences of Rigsrevisionen's qualified opinion on the correctness of Section 38. Taxes and duties and a number of specific errors across the public accounts.
Our qualification concerning the correctness of Section 38. Taxes and duties is based on the following facts: 1. The Ministry of Taxation's long-standing illegal practice of charging penalty interest on amounts overdue is not reflected in the annual accounts. 2. The Ministry of Taxation has no reliable estimation of the value of money owed by the citizens and businesses to the public sector. 3. The Ministry of Taxation's estimation of the value of claims that may not be legally enforceable is inaccurate and/or affected by uncertainty concerning the quality of data on the accounts receivable. 4. The financial statements concerning Section 38 are affected by a number of specific errors in the amount of DKK 1,615.9 million.
The audit also disclosed that a considerable number of government bodies across 10 ministerial remits had failed to ensure segregation of duties and adequate internal controls relating to payments and collection of revenues, which entail unnecessary risk of fraud and misstatement. Rigsrevisionen has not detected misstatements due to fraud, but has established that in several government bodies staff have access to de-activate or delete logs, which makes it very difficult to detect potential abuse. The ministries need to either reduce the risk or establish compensating controls.
Last updated on 08 October 2020