23 reports and 54 memorandums submitted

to the Public Accounts Committee• Advisory board with 6 external members

established • New strategy for 2018-2020 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 3.720 times

Annual report and accounts 2017

April 2018

CONTENTS

Foreword 1

Wht we do 3

Professional and financial performance

How we octe our resources 5

The mpct of our work 7

nternton retons 10

Producton nd performnce n 2017 12

Performnce gnst our strtegy 2015-2017 14

Rgsrevsonen's strtegy 2018-2020 16

Outook for 2018 18

Our peope 20

Fnnc performnce 23

Financial statement 2017

Fnnc sttements nd the ndependent udtor's report 26

Appendx 1. Reports submtted to the pubc ccounts commttee n 2017 37

Rgsrevsonen’s nnu report nd ccounts 2017 s submtted to the Dnsh Pubc Accounts Com-mttee n ccordnce wth secton 17 (4) of the Dnsh Audtor Gener Act.

F O R E W O R D 1

Foreword

s t mportnt tht the users of our udt work know wht we – s n ndependent supreme udt nsttuton – re here to do? s t mportnt tht the government bodes nd gences tht we udt re fmr wth our mndte? Does t mtter? – Yes, t most certny does, nd t s our ob to ensure tht the users s we s the udtees hve ths knowedge, be-cuse t ows us to do our work effectvey nd wthout unnecessry obstces. The D-nsh Audtor Gener Act specfes wht we udt, whom we udt, how we udt nd tht we re ndependent n the performnce of our work. n the course of the st 25 yers, the scope of government udt hs been expnded few tmes, but the over purpose of the udt remns the sme; t s st our ob to verfy the correctness of the government c-counts nd exmne whether pubc funds re used s ntended nd decded by the Dnsh prment – the Foketng. t s so our ob to exmne whether the government uses ts resources economcy, effcenty nd effectvey. Despte the fct tht nether our mndte nor our portfoo of tsks hs undergone ny m-or chnges n the pst yers, we now often fnd ourseves n poston where our ccess to exmne prtcur res of pubc dmnstrton s questoned nd our udt methods ch-enged. We put ths deveopment down to uncertnty bout our roe; n uncertnty tht s n the nterest of nether the udtees nor the users of our udt work, or us. To turn ths trend, we decded to mke spec effort to crete greter crty concernng our roe nd the tsks tht the Foketng hs uthorsed us to perform. n the course of 2017, we therefore pd sever government deprtments vst to expn n more det the key concepts of pubc-sector udtng; we nvted our contcts n the deprtments to knowedge-shrng event, where we presented our ntern nnu udt process nd the process for mor studes; nd we dd our best to keep the deprtments better nformed of pnned udt vsts nd other ctvtes requrng ther tme nd tten-ton. Our efforts to bnce expecttons nd mprove the dogue wth the udtees w be contnued n 2018 nd ncude eborton – nd pubcton – of expntory step-by-step descrptons of the udt process.

2 F O R E W O R D

Advisory board Rgsrevsonen hs estbshed n dvsory bord. We hve done so prty, becuse we wsh to gn deeper nsght nto the rety nd workng condtons of the udtees, nd prty becuse we need soundng bord to test new des, pns nd ctvtes. At the frst meet-ng of the bord, n October 2017, the members revewed drft verson of Rgsrevsonen's new strtegy, whch resuted n hndfu of very usefu comments.

New strategy for 2018-2020 For the next three yers, Rgsrevsonen’s focus w be on the servces tht we beeve w dd vue to the dmnstrton. To tht end, we hve formuted three promses to our stkehoders nd sx cton res tht descrbe wht we need to do to dever on the prom-ses. The promses cme out of dscussons mong the members of the executve mnge-ment nd heds of deprtment, wheres the enbers – the specfc ctvtes – n the sx key cton res refect suggestons nd nput provded by the empoyees t two workshops hed n the utumn. Red more bout our new strtegy on pge 16 nd on www.rgsrevsonen.dk. Lone Strøm Audtor Gener

ADVISORY BOARD The extern members of the

bord re: • Chrotte epsen – mngng

drector of FSR – Dnsh

udtors

• ngvr Mttson – udtor

gener of the Supreme

Audt nsttuton of Sweden

• Mrtn Præstegrd – per-

mnent secretry of the

Mnstry of Fnnce

• Bo Smth – chef negottor

n the Dnsh Agency for

Scence nd Hgher Educ-

ton nd former permnent

secretry of the Mnstry of

Empoyment

• Mche Svrer – professor t

the Unversty of Arhus nd

chef economc dvser n

the Dnsh Economc Counc

• Adm Wof – mngng drec-

tor of the Dnsh Regons.

W H A T W E D O 3

What we do

Rgsrevsonen s prt of the prmentry system n Denmrk nd s n ndependent nst-tuton under the Foketng (Dnsh prment). We udt the Dnsh government ccounts, whch mens tht we check the correctness of the ccounts of government deprtments, gences nd bodes to scertn tht the ccounts re wthout mter error nd defcen-ces, tht pubc funds re used for the purposes decded by the Foketng, nd tht the d-mnstrton of pubc funds s economc, effcent nd effectve. Rgsrevsonen submts ts reports to the Dnsh Pubc Accounts Commttee. The sx members of the commttee re potcns pponted by the Foketng upon nomnton by the prtes represented n prment. Ony the Pubc Accounts Commttee s uthor-sed to sk Rgsrevsonen to exmne specfc pocy re. When we hve submtted report to the members of the Pubc Accounts Commttee, they dd ther comments nd send the report to the Foketng wth request tht the respon-sbe mnster ddress the ssues rsed n the report. Rgsrevsonen foows up on the mn-ster's response nd prepres memorndum to the members of the Pubc Accounts Com-mttee. Ths process s descrbed n more det on pge 7. Rgsrevsonen udts the ncome nd expendture ncuded n the government ccounts. We so udt sever enterprses nd nsttutons tht re not ncuded n the government ccounts such s the Dnsh nton brodcstng corporton nd the Dnsh stte r-wys, whose expendture nd defcts re covered by government grnts, government con-trbutons or other ncome s provded by w. Rgsrevsonen s so responsbe for the udt of the funds tht Denmrk receve nd contrbute to the Europen Communty. The udt s performed n ccordnce wth the Dnsh stndrds on pubc-sector udtng (SOR) tht took effect on 1 nury 2017. Rgsrevsonen so hs ccess to revew the ccounts of the fve Dnsh regons tht re udted by the regons’ ntern udtors, nd we hve uthorty to crry out mor studes n the regons. At oc government eve, we revew expendture tht s ether fuy or prty rembursed by government. n connecton wth the udt, Rgsrevsonen so provdes consutncy servces nd gud-nce to the dmnstrton on vrous ssues ke, for nstnce, ntern contro.

THE DANISH STAND-ARDS ON PUBLIC-SEC-TOR AUDITING (SOR)

• SOR 1 – Fundment prnc-

pes of pubc-sector udt-

ng

• SOR 2 – Rgsrevsonen's

quty ssurnce

• SOR 3 – Mor studes

• SOR 4 – Fnnc udt of

the government ccounts

nd other ccounts. Stndrds used by Rgsrev-

sonen nd certfed pubc

ccountnts: • SOR 5 – Audt opnons

• SOR 6 – Compnce udt

conducted n connecton

wth the fnnc udt of

ccounts

• SOR 7 – Performnce udt

conducted n connecton

wth the fnnc udt of

ccounts.

Fnd the stndrds on

www.rgsrevsonen.dk (n

Dnsh ony)

4 W H A T W E D O

Knowedge shrng s nother prorty for Rgsrevsonen. Effectve knowedge shrng con-trbutes to enhncng the quty of the servces provded by the pubc sector, optmzng busness processes nd ensurng effectve nd effcent fnnc mngement of the tx-pyers’ money. We orgnse knowedge-shrng events every yer – usuy on the bss of fndngs n mor studes or udts, where we hve ooked cross deprtments nd gences. n 2017, Rgsrevsonen hosted four knowedge-shrng meetngs tht ttrcted 450 tten-dees: • Mngement of T securty n systems outsourced to extern suppers

Bsed on Rgsrevsonen's report on fve government uthortes' mngement of sup-per T securty rsk.

• Sry udt Trends n sry nd penson udts crred out n 2016, nd revew of Rgsrevsonen's new sry udt concept.

• Effectve nspecton regmes Settng up effectve nspecton regmes n order to cheve the rgest possbe mpct on regutory compnce wth mnmum of resources.

• Meetng wth Rgsrevsonen's contcts n the deprtments Bncng expecttons, knowedge shrng, dogue.

H O W W E A L L O C A T E O U R R E S O U R C E S 5

How we allocate our resources

Rgsrevsonen’s scrutny of the government ccounts s crred out ether s nnu udt or mor studes of specfc pocy res. The nnu udt s systemtc udt of mn-ster deprtments, gences nd bodes bsed on n ssessment of mterty nd rsk. The mor studes focus on specfc ssues tht re consdered to be of mor economc or prncpe mportnce. Rgsrevsonen udts deprtments nd ther remts, nd the fgure beow shows how we octed our resources n 2017, broken down by nnu udt nd mor studes.

ALLOCATON OF RESOURCES N 2017 BY DEPARTMENT

0% 2% 4% 6% 8% 10% 12% 14%

The Prime Minister's Office

Ministry of Ecclesiastical Affairs

Ministry of Foreign Affairs

Ministry of Employment

Ministry of Energy, Utilities and Climate

Ministry of Business and Growth

Ministry of Culture

Ministry of Higher Education and Science

Ministry for Economic Affairs and the Interior

Ministry of Justice

Ministry of Environment and Food

Ministry of Defence

Ministry of Health

Ministry of Finance

Ministry of Transport and Building

Ministry of Taxation

Annual audit Major studies

Ministry for Children, Education and Gender Equality

Ministry of Immigration, Integration and Housing

6 H O W W E A L L O C A T E O U R R E S O U R C E S

n 2017, Rgsrevsonen octed ts resources bsed on the foowng: • n ssessment of mterty nd rsk bsed on prevous udts nd ongong montorng; • current nyses; • prortsed udt res; • the compexty of the remts nd number of bodes udted wthn ech remt. n 2017, Rgsrevsonen octed most resources to the Mnstry of Txton (13.3%), the Mnstry of Trnsport nd Budng (8.6%) nd the Mnstry of Fnnce (8.3%). The Mnstry of Txton tops the st n 2017, s t dd n 2014, 2015 nd 2016. 10.6% of our tot resources n 2017 were octed to the nnu udt of SKAT (Dnsh Customs nd Tx Admnstrton) nd 2.7% to mor studes of tx-reted ssues. n 2016, Rgsre-vsonen termnted the secton 9-greements wth the ntern udtors n number of government nsttutons, ncudng SKAT. The fu effect of ths decson on our workod s refected n the ncrese n resources used for nnu udt n 2017. n 2016, we submt-ted four reports to the Pubc Accounts Commttee on SKAT gnst two n 2017: SKAT's customs contros nd gudnce on customs cernce nd the Mnstry of Txton’s fnn-c mngement of the proect concernng deveopment of new pubc property ssess-ment system. No. 2 on the st s the Mnstry of Trnsport nd Budng wth responsbty for fnncy mportnt enterprses such s the DSB (Dnsh stte rwys) nd the Dnsh Rod Drec-torte, whose ctvtes nd servces ffect the ves of mny ctzens. n 2017, we used most resources on nnu udt (5.4%), but we so exmned the deyed trn sgnng progrmme, trn punctuty nd the DSB’s effort to compete the C4 trns (3.2%). Our resources n the remt of the Mnstry of Fnnce were dstrbuted most eveny be-tween nnu udt nd mor studes. At the request of the Pubc Accounts Commttee, we submtted two reports tht concerned the deprtment: report on the cpt ncrese n DONG Energy A/S nd the nt pubc offerng (PO) nd report on the use nd ccu-ton of Denmrk’s deveopment ssstnce. We used 7.4% of our resources n the remt of the Mnstry of Heth: 1.7% on nnu udt nd 5.7% on mor studes, ncudng report on the preventon of hospt-cqured nfec-tons nd report on Centr Regon Denmrk’s rsk nd contngency mngement n two hospt constructon proects.

T H E M P A C T O F O U R W O R K 7

The impact of our work

n Denmrk, we hve unque procedure for foowng up udt fndngs. When we hve sub-mtted report to the members of the Pubc Accounts Commttee, they dd ther comments to the report nd send t to the Foketng. The responsbe mnster prepres response to the ssues rsed n the report nd sends t to the members of the Pubc Accounts Commt-tee nd Rgsrevsonen. Bsed on the mnster's response, we prepre foow-up memorn-dum to the Pubc Accounts Commttee, recommendng ether tht cse be cosed or tht we sh contnue to montor ssues st outstndng. The mnster's response nd Rgsrevsonen's memorndums re ncuded n the Fn report on the government ccounts tht we submt to the Foketng once yer nd whch pro-vdes the bss for the prment's pprov of the government ccounts. Mesurng the mpct of our work s mportnt for us, but so chengng. For the tme be-ng, the foow-up procedure s our ony opton to demonstrte mpct, nd on the foowng pges, we present exmpes of some of the mesures tken by deprtments n response to ssues tht we hve rsed n our reports.

Report on the Danish police's management of weapons and ammunition n ths report, from Apr 2017, Rgsrevsonen concuded tht the poce dd not hve n c-curte overvew of the octon of wepons n ther cre. Our stocktkng of pepper spry, mmunton nd gs n 11 poce dstrcts dd not correspond wth the dstrcts' own rec-ords, the Dnsh Nton Poce cked overvew of the number of ost ve nd bnk wep-ons, nd wepons nspectons dd not tke pce wthn the greed dednes. Furthermore, the study showed tht the Dnsh Nton Poce hd estbshed ony brod gudenes concernng sfekeepng of wepons nd mmunton, nd tht the poce dstrcts were not mngng stoen wepons n ther custody n stsfctory mnner. Foowng the response receved from the mnster of ustce, Rgsrevsonen concuded tht: • The Nton Poce hve chnged the gudenes nd the poce dstrcts re now re-

qured to keep records of wepons ost nd found. At the sme tme, the Nton Po-ce hve emphssed the gudenes for mngng ost wepons.

• The Nton Poce hve emphssed the regutons concernng foow-up nd compe-ton of wepons nspectons nd ntend to montor nd ensure tht wepons re pre-sented for nspecton nd tht nspectons re competed wthn the gree dednes.

• The Nton Poce hve further specfed the gudenes concernng sfekeepng of wepons nd hve sked the poce dstrcts to work out oc gudenes for the ccess to rmoures, mmunton, pepper spry nd gs. The Nton Poce so ntend to fo-ow up on compnce wth the gudenes n connecton wth ther supervson of the poce dstrcts.

8 T H E M P A C T O F O U R W O R K

Report on the medical helpline 1813 set up by the Capital Region of Denmark At ther meetng n My 2017, the members of the Pubc Accounts Commttee dscussed Rgsrevsonen's report on the hepne's performnce n meetng the trgets set for wt-ng tme nd quty. Our study showed tht the Cpt Regon of Denmrk, due to short-ge of nurses, hd dffcutes meetng the trgets set for wtng tme. The study so show-ed tht n the perod from 2014 to 2016, 31% of pnned udts of the quty of the ser-vces provded n the heth sector were st outstndng, nd the hepne ws struggng to cheve the quty trgets. n her response, the mnster of heth referred to nformton provded by the Cpt Re-gon of Denmrk nd the Dnsh Regons nd nformed Rgsrevsonen tht: • The Cpt Regon of Denmrk s workng to cheve the trgets set for wtng tme

nd s, mong other thngs, tkng steps to estbsh progrmme tht offers nurses the opportunty to dvde ther workng hours eveny between the hospt wrd they re workng on nd the hepne.

• A ntern udts (ssessment of hepne referrs) hve now been crred out. Rgsrevsonen w contnue to montor the hepne nd progress mde concernng the re- commendtons tht hve not yet been mpemented.

Report on quota concentration in the Danish fishing industry n ths report from August 2017, Rgsre-vsonen crtczed strongy the Mnstry of Envronment nd Food's mngement of quot ownershp, whch dd not sup-port the ntentons of the Foketng to prevent concentrton of fshng quots. n 2011, the ten rgest owners of quo-ts pced on cod, obster nd pce hd ownershp of, on verge, 40% of the to-t fshery of these speces. By 2017, ths shre hd ncresed to 47%. n the report, Rgsrevsonen so hghghted cses tht rsed suspcon of possbe crmn offences, whch cused the mnstry to sk the poce to conduct n nvestgton. Ths nvestgton s st ongong. t ppers from the mnster's response to the ssues rsed n the report tht the prtes n the Foketng, n November 2017, greed to tke the foowng steps to reduce quot con-centrton: • Quot concentrton w be further mted. • Requrements for beng regstered s n "ctve fsher" (fsher wth ccess to buy nd

own quots) to be tghtened. • As mnmum, vesses must fsh 25% of the quots octed to them (mesure gnst

dnghes hodng quots). • Tougher snctons for voton of the quot mts.

THE DANISH REGIONS The Cpt Regon of Denmrk

s one of the fve regons tht

were creted s prt of the D-

nsh muncp reform n 2007. Dnske Regoner (Dnsh re-

gons) s n nterest orgns-

ton for the fve regons.

Phot

o: S

cnp

x

T H E M P A C T O F O U R W O R K 9

Eements of the greement were mpemented redy n December 2017 n sttutory or-der nd through n mendment of the Fsheres Act. Rgsrevsonen w foow deveopments n ths re.

Report on the audit of the government accounts for 2016 Rgsrevsonen concuded tht the government ccounts for 2016 were n mter s-pects correct, nd tht the deprtments hd observed the terms of the pproprtons nd other reevnt regutons. Over, Rgsrevsonen concuded tht the government's dmn-strton ws both sound nd rebe. However, the udt of the ccounts for 2016 dd re-ve weknesses n the dmnstrton n sever deprtments, nd we dd come cross cses where the deprtments hd crred out trnsctons wthout proper uthorston. We so detected errors nd defcences n sry dmnstrton, nd we found gps n T securty. The deprtments hve subsequenty tken steps to rectfy the errors n the ccounts for 2016 nd to mprove the dmnstrton nd presentton of future fnnc sttements. n ts foow-up memorndum, Rgsrevsonen concuded tht the cse concernng the udt of the government ccounts coud be cosed, but tht we – n connecton wth the nnu udt – woud montor the mesures mpemented by the deprtments n order to cheve mprovements wthn ccountng mngement, the contro envronment nd T securty.

10 N T E R N A T O N A L R E L A T O N S

International relations

Rgsrevsonen's nvovement n nternton forums nd workng groups serves to gve us dfferent perspectves on ssues of gener nterest to pubc-sector udtors. Our ntern-ton enggement so provdes our peope wth exceent opportuntes to bud networks nd deveop ther sks. Rgsrevsonen s currenty ctve n commttees nd workng groups concernng, for n-stnce, the Europen Communty, Bg dt, T, performnce udt nd envronment udt. On udtor gener eve, we prtcpte n the nnu meetngs of the Nordc Audtors Gene-r nd the Gob Audt Ledershp Forum (GALF).

Nordic Auditors General meeting Snce the 1960s, Rgsrevsonen hs worked cosey wth the udtors gene-r of cend, Norwy, Sweden, Fnnd nd the Froe snds. We re often up gnst the sme chenges nd fnd t mutuy benefc to meet nd dscuss current topcs. n ddton to provdng nsght nto ech other's orgnstons, the dscussons between the udtors gener so nspre chnge n ther re-spectve orgnstons. Effectve fnn-

c udt, extern evuton nd quty ssurnce of the udt were mong the subects on the gend of the meetng hed n 2017 n Copenhgen.

GALF Lke the Nordc Audtors Gener meetng, the GALF meetng provde n exceent forum for knowedge shrng. The ony dfference s tht wth round 20 udtors gener prtc-ptng n the GALF meetng there s more experence to drw on. Rgsrevsonen hosted the meetng n 2017, where the dscussons revoved round two key themes: strtegy work nd extern evuton. The gend ncuded presenttons by two extern spekers: Søren Gde, member of the Pubc Accounts Commttee, nd former mnster of defence, shred hs experence wth strtegy work wth the udence, nd Professor Hnne Foss Hnsen from the Deprtment of Potc Scence t the Unversty of Copenhgen, present-ed the eements n the nnu extern evuton of Rgsrevsonen's mor studes tht she hs been prt of for number of yer.

Phot

o: S

cnp

x

N T E R N A T O N A L R E L A T O N S 11

Peer review of the American Government Accountability Office (GAO) At the request of the hed of the GAO, Rgsrevsonen nd coegues from the supreme udt nsttutons of Fnnd, New Zend nd the Unted Kngdom crred out peer re-vew of the GAO n 2016/2017. The resuts of our revew of the GAO's quty ssurnce system, fnnc udt nd performnce udt were presented to the mngement t the hed offce n Wshngton DC n September 2017. Our report hghghts fve exmpes of good GAO prctce nd mkes fve recommendtons to mprove ther current processes. The fu peer revew report s vbe on www.go.gov.

n connecton wth the presentton of the report to the GAO, Audtor Gener Lone Strøm ws nvted to do presen-tton to the stff of the GAO on edershp.

12 P R O D U C T O N A N D P E R F O R M A N C E N 2 0 1 7

Production and performance in 2017

Rgsrevsonen's fve performnce trgets for 2017:

Producton We submt the report on the udt of the govern-ment ccounts for 2016 to the Pubc Accounts Commttee meetng n August 2017.

Acheved

Audt strtegy We perform our udt bsed on new, compre-hensve strtegy for the udt of the govern- ment ccounts.

Not cheved

Quty The technc quty of our mor studes s rted "stsfctory" by the extern evutors.

Prty cheved

mpct Nnety per cent of unresoved ssues n the udt reports hve been ddressed by the re- sponsbe mnster wthn three cendr yers.

Prty cheved (83%)

Advsory bord We estbsh n dvsory bord n order to m-prove the dogue wth the udtees.

Acheved

Expedited submission of the report on the audit of the government accounts For the pst coupe of yers, Rgsrevsonen hs competed the nnu udt erer n the yer nd reported more udt resuts to the members of the Pubc Accounts Commttee. Up unt 2013, the report on the udt of the government ccounts ws pubshed n Novem-ber, but n the course of the pst four yers, we hve cut producton tme by cose to three months, nd the report s now pubshed n August. The report on the udt of the government ccounts s qute dfferent from our other re-ports, becuse t sums up the most sgnfcnt fndngs from our nnu udt, whch, com-bned, provde the bss for our opnon on the government ccounts. Ths yer, we con-cuded tht the government ccounts were, n mter spects, correct nd tht pub-c funds hd been spent n compnce wth the pproprtons. However, our report so ndcted tht there ws room for mprovng the dmnstrton – ncudng the ccount-ng mngement – n some government bodes, nd tht the government hd ost revenue s consequence of SKAT's ndequte mngement of rrers. n 2016, Dnsh govern-ment spendng ws DKK 688.6 bon gnst revenues of DKK 680.1 bon, resutng n defct of DKK 8.5 bon.

P R O D U C T O N A N D P E R F O R M A N C E N 2 0 1 7 13

The report on the udt of the government ccounts for 2016 so ncuded n opnon on the dmnstrton of EU funds n Denmrk, nd the resuts of two of our cross-cuttng u-dts: mtgton of cyberttcks n seven government bodes nd one-off government py-ments.

New, comprehensive strategy for the audit of the government accounts For mny yers, Rgsrevsonen's udt of the government ccounts hs been bsed on t-ored sub-strteges nd gudenes. Hvng comprehensve strtegy for the udt of the government ccounts w support the mpementton of the new stndrds on pubc-sec-tor udtng (SOR), ncrese trnsprency nd fctte udt pnnng. However, deveop-ng ths strtegy took onger thn ntcpted nd stretched nto 2018, whch ment tht we fed to cheve ths performnce trget. Our peope embrced the tsk of mpementng SOR nd hve been dedcted n ther efforts to mke the udt more trgeted nd effectve. However, s mpementng the prncpes of the stndrds nto comprehensve udt strtegy turned out to be more compcted thn foreseen, we decded to phse the mpementton nd nty gther experence from ust three mnster remts. Ths pproch gve us sod bss for the deveopment of the over strtegy for mnster remts. The new strtegy ws fnshed n Februry 2018 nd w be pped on the udt of the government ccounts for 2018.

The technical quality of major studies The quty of our reports s mesured every yer by n extern pne whch currenty con-ssts of fve professors from the Unversty of Arhus, Copenhgen Busness Schoo (CBS), the Unversty of Roskde nd the Unversty of Southern Denmrk, respectvey. The evu-tors ook t the reton between mn purpose, sub-purposes nd nyses n the ndvd-u reports, nd t the connecton between nyses nd concusons. Wth effect from 2017, we hve chnged the rtng sce vbe to the evutors; the sce now ncudes the foowng response optons: ess stsfctory, stsfctory nd very stsfctory. n 2017, one of the evutors rted one of our reports ess stsfctory, nd we therefore ony pr-ty cheved the performnce trget set for extern evuton. Two reports receved the rtng very stsfctory, wheres the remnng 19 reports were rted stsfctory. The report on the udt of the government ccounts s not subected to extern udt. Appendx 1 shows st of the 23 reports we submtted to the Pubc Accounts Commttee n 2017. A the reports re vbe on the webstes of the Pubc Accounts Commttee nd Rgsrevsonen.

Impact As opposed to our other performnce trgets, our nfuence on ths one s qute mted. We expect the reevnt mnsters to mpement mesures n response to our recommendtons nd the ssues rsed by the members of the Pubc Accounts Commttee. However, due to the compexty of the ssues – et one ther souton – t s not wys possbe to cose outstndng tems wthn three yers. n 2017, 83% of recommendtons nd ssues rsed were ddressed to the stsfcton of the udtor gener nd Pubc Accounts Com-mttee wthn the three-yer dedne. Ths s consderbe mprovement over 2016 (76%) nd 2015 (65%), but st short of the trget of 90%.

THE EVALUATION PANEL 2017 • Professor Krsten Revsbech

– Deprtment of Lw, Unver-

sty of Arhus

• Professor Torben M. Andersen

– Deprtment of Economcs

nd Busness Economcs,

Arhus Unverstet

• Professor Lotte ensen –

Deprtment of Mngement,

Potcs nd Phosophy, CBS

• Professor n Pres-Hee –

Deprtment of Peope nd

Technoogy, Unversty of

Roskde

• Professor Asbørn Sonne

Nørgrd – Deprtment of

Potc Scence nd Pubc

Mngement, Unversty of

Southern Denmrk.

14 P E R F O R M A N C E A G A N S T O U R S T R A T E G Y 2 0 1 5 - 2 0 1 7

Performance against our strategy 2015-2017

n ths three-yer perod, Rgsrevsonen's work ws bsed on strtegy tht ced for trgeted effort n fve hgh-prorty res nd the mpementton of sever specfc nt-tves. The strtegy refected our wsh to ncrese the mpct of our udt by reportng on ssues of current nterest nd submttng more reports to the Dnsh Pubc Accounts Com-mttee. n the course of the pst fve yers, we hve grduy reduced the producton tme of the report on the udt of the government ccounts, nd n 2017, we pubshed the report n Au-gust, whch ws three months erer thn n 2013. Credt for ths chevement s due to our peope nd the udtees; our peope hve been unremttng n ther efforts to strem-ne our processes, emnte overps nd render the entre producton process s effcent s possbe, nd the udtees hve demonstrted gret fexbty throughout the process. Our producton ws hgh n 2015 (27 reports) nd 2016 (25 reports), but we submtted ony 23 reports to the Pubc Accounts Commttee n 2017. The decne n producton s mny cused by fctors beyond our contro, s we hd to cose down two ongong exmntons due to the dopton of new pproprton system for hgher educton nd the mpemen-tton of rescue pn for the Dnsh ng post servce, respectvey. Our strtegy for the perod endng 31 December 2017 so ncuded fve specfc focus res tht we hd decded to gve prorty n our mor studes. The fgure shows the extent to whch we mnged to keep focus on the hgh-prorty res n 2015, 2016 nd 2017. Our performnce n 2015 refects the fct tht work on mor studes for pubcton n 2015, ws strted n 2014, before the new strtegy took effect. Pese note tht report cn d-dress more thn one udt re.

P E R F O R M A N C E A G A N S T O U R S T R A T E G Y 2 0 1 5 - 2 0 1 7 15

REPORTS SUBMTTED N THE PEROD 2015-2017

Note: The report on the audit of the government accounts is not included.

As the fgure shows, our strtegy hs been prtcury effectve concernng studes nto the consequences of pubc-sector poces for ctzens nd compnes. n 2015 nd 2016, respectvey, 31% nd 35% of our mor studes ddressed ssues n ths focus re, gnst 26% n 2017. Exmpes of such studes re the reports on the eectronc trve crd nd the ntegrton effort from 2015, servces provded to chdren n cre nd the Dnsh Tx Appes Agency’s cse-processng tmes nd productvty from 2016, nd the reports from 2017 concernng quot concentrton n the Dnsh fshng ndustry nd the preven-ton of hospt-cqured nfectons. The fgure so ndctes tht we were most successfu n executng our strtegy n 2016, wheres the shre of reports tht fe outsde the prorty res ncresed from 20% n 2015 to 44% n 2017. Sever fctors hve berng on the deveopment from 2015 to 2017, n-cudng the fct tht we – ether t our own nttve or t the request of the Pubc Ac-counts Commttee – hve done studes of topc nd mportnt ssues tht dd not ft nto our strtegy. The reports on the cpt ncrese n DONG Energy A/S nd the nt pubc offerng (PO) nd the bss for decson prepred by the Dnsh Mnstry of Defence concern-ng procurement of 27 F-35 combt rcrft re exmpes of such reports.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

The consequences of public-sector

policies for citizens and companies

The coherence of policies and cross-cutting approachto solving tasks inthe public sector

The effect of reforms

E-government Good grant administration

Other

2015 2016 2017

16 R G S R E V S O N E N ' S S T R A T E G Y 2 0 1 8 - 2 0 2 0

Rigsrevisionen's strategy 2018-2020

Rgsrevsonen's strtegy for the next three yers:

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.

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.

Rigsrevisionen examines whether government funds are used effectively andas intended by the Danish parliament.

MISSION

VALUE

Credibility

R G S R E V S O N E N ' S S T R A T E G Y 2 0 1 8 - 2 0 2 0 17

Value Credbty s our core vue. f we re not credbe, our work w not be perceved s vu-be nd usefu by the udtees nd users of our udts. We must be ndependent, open-mnded nd trnsprent n tht we do, nd our udt resuts must be reevnt nd of hgh quty. Our work w ony hve postve mpct on pubc dmnstrton, f the u-dted bodes s we s the users of our udts hve trust n our work nd fee tht they cn hve dogue on equ terms wth us.

Mission t s our msson to exmne whether government funds re used effectvey nd s ntend-ed by the Foketng. To do tht, we udt the government's ccounts every yer nd under-tke sever mor studes of the dmnstrton n the government nd regons.

Promises The three promses tht we mke to our stkehoders re refecton of our mbton to crete vue for the users of our udts: • The cross-cuttng udts generte usefu knowedge of prctce cross the mnster

remts nd regons. They often uncover unexpected connectons nd hep us dentfy good prctces tht deserve to be shred cross the government.

• Crfyng the consequences of the government nd the regons' efforts w put our fnd-ngs nto perspectve.

• ncresed focus on the economy, effectveness nd effcency wth whch the govern-ment nd the regons mnge pubc funds w gve the users of the udt better b-ss for ssessng ther performnce.

Key action areas Fufment of the three promses s supported by sx cton res nd sever enbers. m-pementng the sx cton res w requre brod commtment n the orgnston nd gret wngness to ern nd ccept chnge. The effort to cutvte methods nd technc ex-pertse n dt nyss, trget the udt wth the stndrds on pubc-sector udtng (SOR) nd enhnce communcton wth the udted bodes w ffect – nd requre the ctve nvovement of – most of Rgsrevsonen's stff.

18 O U T L O O K F O R 2 0 1 8

Outlook for 2018

Two of the fve trgets set for 2018 re repeted from prevous yers: the evuton of the technc content of our mor studes nd the 90% mpct trget. The extern ev-uton of our mor studes s n mportnt eement n our quty ssurnce, nd the 90% mpct trget serves s n ndctor of the effectveness of our work.

PERFORMANCE TARGETS FOR 2018

n ddton to these two, we hve set ourseves three new trgets bsed on Rgsrevsonen's strtegy 2018-2020:

Rigsrevisionen's performance targets 2018

Minimum 25% of the reports submitted

to the Danish Public Accounts Committee are

cross-cutting and concern more than one

government department

Three of the reports submitted to

the Danish Public Accounts Committee

are performanceaudit reports

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

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

The technical qualityof our reports is rated "satisfactory" by the external evaluators

O U T L O O K F O R 2 0 1 8 19

Cross-cutting audits 25% of the reports we submt to the Pubc Accounts Commttee n 2018 w ddress s-sues cross mnster remts. We wnt to tke fu dvntge of the unque opportunty we hve to ook cross orgnston nd dmnstrtve boundres n government, be-cuse t s our experence tht cross-cuttng udts nd cross-cuttng mor studes gve us nsght nto unexpected connectons, common chenges nd good prctce. nsghts tht deserve to be shred wth reevnt pubc uthortes nd thereby contrbute to mprovng the dmnstrton. n 2017, 13% of our mor studes ddressed cross-cuttng ssues.

Focus on economy, efficiency and effectiveness n ddton to fnnc udt nd compnce udt, we so ook t how pubc funds nd resources re mnged by the government. Ths type of udt s referred to s performnce udt nd s conducted n connecton wth nnu udt nd s prt of our mor studes, though wth sghty dfferent focus. n the mor studes, our fndngs or concusons re often suppemented wth recommen-dtons s to how the dmnstrton cn be mproved. As ddng vue to the government's servces s prorty for us, we hve decded to octe more resources to performnce udt n the comng yers. n 2018, we re pnnng to do three mor studes n ccordnce wth the defnton of economy, effcency nd effectveness tht ppers from our new stndrd on mor studes (SOR 3).

Employee satisfaction Rgsrevsonen conducts survey mong ts empoyees every second yer. Our peope n-swer questons bout the top mngement, ther mmedte mnger, ob content, work envronment, ernng nd deveopment, sry nd empoyments terms. n 2016, ob st-sfcton receved rtng of 73, whch ws three ponts hgher thn the verge score for the pubc sector nd two ponts hgher thn the score cheved n 2014. A ob stsfcton rtng between 75 nd 100 s consdered hgh. n 2018, Rgsrevsonen wnts to mntn the resut cheved n 2016, s mnmum.

20 O U R P E O P L E

Our people

Humn resources 2013 2014 2015 2016 2017

Fu-tme equvent persons empoyed1) 261 253 254 254 264

Sry costs – verge per fu-tme empoyee (2017 prces)

DKK 628,799 DKK 628,829 DKK 634,062 DKK 628,143 DKK 632,544

Stff costs – shre of ordnry opertng ex-pendture dusted for one-off costs for the renovton proect 80% 77% 80% 81% 81%

Sckness bsence – verge 6.0 dys 5.3 dys 6.7 dys 5.2 dys 8.2 dys

Sckness bsence – dusted for ong-term ness 3.8 dys 3.8 dys 5.8 dys

4.1 dys

3.6 dys

Stff turnover 9.8% 12.3% 12.7%

Dstrbuton by gender yer-end 2016/17 2016 2017 Femes Men Femes Men

Stff 54% 46% 58% 42%

Mngement 48% 52% 46% 54%

Tot 53% 47% 57% 43%

1) ncudes drector on secondment wth NATO n Brusses.

n the course of 2017, Rgsrevsonen expnded ts workforce from 273 (254 fu-tme equv-ents) to 288 (264 fu-tme equvents). Most of the new empoyees were hred to tke over the udt tsk tht ws trnsferred to Rgsrevsonen from ntern udt functons n number of government bodes n 2016. Stff turnover hs ncresed from 9.8% n 2015, 12.3% n 2016 to 12.7% n 2017. Despte the ncrese of 0.4% over st yer, the turnover rte s st ower thn the 2017 verge n the pubc sector (13.3%) nd n the mnster deprtments (18.6%).

O U R P E O P L E 21

Long-term illness Tot sckness bsence hs ncresed from n verge of 5.3 dys n 2016 to 8.2 dys n 2017 per empoyee, s more members of stff were bsent from work due to ong-term -ness. Adusted for ong-term ness, bsence hs dropped from 4.1 dys n 2016 to 3.6 dys n 2017. Mngng ong-term bsence effectvey s prorty for Rgsrevsonen, but dffcut tsk. t s genery not possbe to rey on stndrd poces nd pproches to hndng ths type of bsence, becuse every snge cse s unque. However, keepng n open dogue wth the empoyees on ther bty to work nd the ndvdu dustments tht cn be mde to ensure ther return to work hs proven qute successfu.

New employees hired in 2017 Rgsrevsonen prmry hres peope wth soc scence degree, udtors or specsts/ techncns. n 2017, we engged 46 new fu-tme empoyees nd 16 student ssstnts. We hre new grdutes wth reevnt experence from ther student obs s we s stff wth medum to ong reevnt professon work experence. The fgure beow shows tht bout hf of our new empoyees hve more thn two yers of reevnt ob experence. They typcy come from postons n centr government, oth-er government gences, the muncptes nd/or prvte udtng compnes nd con-sutncy busnesses.

OB EXPERENCE OF NEWLY EMPLOYED

Between2 and 5 years

22%

More than 5 years26%

Less than 1 year41%

Between1 and 2 years

11%

22 O U R P E O P L E

Skills development Rgsrevsonen s commtted to deveopng the sks of our empoyees: the newy empoyed, the more experenced s we s mdde mngement nd top executves. We wnt to en-sure tht our empoyees hve the professon nd person sks necessry to sove cur-rent s we s future tsks, effectvey nd competenty. Rgsrevsonen's sks deveop-ment strtegy cn be summed up s foows: • A new empoyees re requred to prtcpte n obgtory ntroductory courses nd

bsc progrmmes on pubc-sector udtng nd fnnc mngement. • A empoyees re expected to spend round 24 hours nnuy deveopng ther profes-

son nd person sks by ttendng vrous progrmmes nd courses. • Mdde mngement nd top executves re requred to prtcpte n n n-house ed-

ershp deveopment progrmme. We dust our sks deveopment strtegy regury to ensure tht t mtches the shftng needs of the orgnston.

F N A N C A L P E R F O R M A N C E 23

Financial performance

Rgsrevsonen's tot resut for 2017 s defct of DKK 1.1 mon, consstng of postve vrnce n sres of DKK 0.5 mon nd negtve vrnce of DKK 1.6 mon compred wth the opertng pproprton. n the summer of 2017, the renovton of our offce spce, tht ws strted t the begn-nng of 2016, ws fny fnshed. The tot cost of the renovton – DKK 30.3 mon – hs been fnnced by ccumuted opertng surpuses from prevous yers. The decson to renovte our premses ws ccompned by decson to move the empoyees coser to-gether n ess spce. Ths operton hs reduced our nnu ese costs by DKK 1.9 mon. n 2015, Rgsrevsonen's commerc servces generted defct of DKK 1.5 mon. Fo-owng surpus of DKK 0.2 mon n 2016 nd DKK 1.2 mon n 2017, the ccumuted defct hs now been reduced to DKK 0.1 mon. The surpus n 2017 cn be scrbed to n dustment of our udt fees nd better n-house trckng of consutng hours. The current defct s expected to be offset n the course of 2018.

Unit costs To fctte comprson of the resuts for 2017 wth prevous yers, the foowng ccu-tons of unt costs hve been dusted for the one-off renovton costs, nd hstorc dt from 2013 – 2016 hve been converted nto 2017 prces. Sry costs re ttrbuted to the vrous products bsed on stff's trckng of the hours they hve worked on the ndvdu proects n 2017. Sry costs re ttrbuted ether d-recty or proportontey to the products they concern. Other operton costs re ttr-buted cross products bsed on tot, octed sry costs.

24 F N A N C A L P E R F O R M A N C E

COST OF THE REPORT ON THE AUDT OF THE GOVERNMENT ACCOUNTS

DKK

Snce 2013, Rgsrevsonen hs grduy moved forwrd the pubcton of the report on the udt of the government ccounts from November to August. To cheve tht, we hve revewed nd stremned every phse of the process n cose coborton wth the u-dtees. The cut n producton tme hs so hd postve mpct on costs, s refected n 2016 nd 2017.

UNT COST OF ANNUAL AUDT BY MNSTERAL DEPARTMENT

DKK

Broken down by mnster deprtment, the verge cost of nnu udt ws DKK 6.9 m-on n 2017 gnst DKK 6.7 mon n 2016. The ncrese of DKK 0.2 mon s reted to the fct tht Rgsrevsonen now conducts the udt tht ws prevousy the responsb-ty of the deprtments' ntern udtors, nd to the mpementton of the new stndrds on pubc-sector udtng (SOR).

2.000.000

3.000.000

4.000.000

5.000.000

6.000.000

7.000.000

8.000.000

2013 2014 2015 2016 2017

2.000.000

3.000.000

4.000.000

5.000.000

6.000.000

7.000.000

8.000.000

2013 2014 2015 2016 2017

8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000

8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000

F N A N C A L P E R F O R M A N C E 25

UNT COST OF MAOR STUDES

DKK

Rgsrevsonen submtted 23 mor studes to the Pubc Accounts Commttee, whch ws two fewer thn n 2016. The verge cost of mor studes n the perod from 2013 to 2017 ws between DKK 2.5 mon nd DKK 3 mon. Unt costs re expected to ncrese over the next few yers, s we – n compnce wth our strtegy 2018-2020 – re pnnng to pubsh fewer mor studes. These w, however, to rge extent, be cross-cuttng nd dt drven, nd thus more compex nd tme consumng to produce.

UNT COST OF MEMORANDUMS

DKK

The verge cost of producng memorndum ws ust under DKK 100,000 n 2017. We submtted 54 memorndums to the Pubc Accounts Commttee n 2017 gnst 62 n 2016 nd 49 n 2015. The number of memorndums vres from one yer to the next, becuse most of them foow up on prevous udt fndngs nd re drwn up ony f mportnt de-veopments hve tken pce, or cse cn be cosed.

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

2013 2014 2015 2016 2017

50.000

100.000

150.000

200.000

250.000

2013 2014 2015 2016 2017

3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000

500,000

250,000

200,000

150,000

100,000

50,000

26 F N A N C A L S T A T E M E N T S A N D T H E N D E P E N D E N T A U D T O R ' S R E P O R T

Financial statements and the independent auditor's report

RIGSREVISIONEN'S FINANCIAL STATEMENTS FOR 2017

STATEMENT OF NCOME AND EXPENDTURE

(DKK '000) Note Actu 2016

Budget 2017 (not udted)

Actu 2017

Budget 2018 (not udted)

EXPENDTURE:

Ordnry opertng ncome

Net pproprton 207,300 214,600 212,100 217,200

ncome retng to udt servces 4 5,052 5,300 6,033 4,500

Tot ordnry opertng ncome 212,352 219,900 218,133 221,700

Ordnry opertng expendture

Rent 14,397 14,800 14,559 13,200

Stff costs:

Sres 132,917 140,650

Penson contrbutons 22,077 23,174

Sry refunds (1,969) (2,052)

Other stff costs 941 1,430

Tot stff costs 7 153,965 166,200 163,202 175,100

Other ordnry opertng expendture 47,302 44,900 32,810 27,900

Amortston, deprecton nd wrte-downs 2/3 504 800 1,306 1,200

nter-government purchse of goods nd servces 0 0 1,241 1,200

Sry costs exceedng the pyro cp 4 3,691 3,700 3,790 3,200

Other ordnry opertng expendture 4 1,170 1,200 1,088 900

Tot ordnry opertng expendture 221,029 231,600 217,996 222,700

Resut of ordnry opertons (8,677) (11,700) 137 (1,000)

ntern government trnsfer expendture 1,458 1,200 929 1,200

Fnnc expendture 56 100 334 300

Net resut for the yer – ccrus bsed (10,191) (13,000) (1,126) (2,500)

Dstrbuton of surpus/defct for the yer (10,191) (13,000) (1,126) (2,500)

Accumuted surpus 8 21,696 8,696 20,570 18,070

RGSREVSONEN’S PENSON STATEMENT

Net pproprton 6,800 6,900 6,900 6,600

ncome (pubc servce penson contrbutons) 2.102 2,200 1,971 2,200

Expendture (penson benefts) 8,394 9,100 8,816 8,800

Rgsrevsonen’s penson sttement tot 6,292 6,900 6,845 6,600

Net resut for the yer – csh bsed 508 0 55 0

F N A N C A L S T A T E M E N T S A N D T H E N D E P E N D E N T A U D T O R ' S R E P O R T 27

BALANCE SHEET

(DKK '000) Note 31 December 2016 31 December 2017

ASSETS

Fxed ssets:

ntngbe fxed ssets:

Competed deveopment proects 0 0

Acqured concessons, ptents, cences, etc. 0 0

Tot ntngbe fxed ssets 2 0 0

Tngbe fxed ssets:

Lesehod mprovements 1,082 1,023

Furnture nd T equpment 3,011 2,392

Tot tngbe fxed ssets 3 4,094 3,416

Fnnc ssets nvestments:

Government gurntee 9 3,378 3,378

Tot fxed ssets 7,472 6,794

Current ssets:

Recevbes (ncudng prepd sres nd sres owng) 5,485 5,380

Recevbes, Rgsrevsonen’s penson sttement (ncudng prepd pensons)

0 8

Csh:

Non-nterest berng ccount 39,129 50,149

Fnncng ccount 25,456 2,277

Tot csh 64,585 52,425

Tot current ssets 70,070 57,814

Tot ssets 77,542 64,607

LABLTES:

Equty:

Adusted equty (openng bnce) 9 3,378 3,378

Surpus crred forwrd 21,696 20,570

Equty, pensons (153) (132)

Tot equty 24,921 23,816

Provsons 5 2,602 1,317

Long-term btes:

Long-term debt 6 2,530 3,416

Tot ong-term btes 2,530 3,416

Short-term btes:

Goods nd servces 12,714 4,200

Other short-term debt 9,183 4,251

Other short-term debt, Rgsrevsonen’s penson sttement 153 140

Hody ownce nd overtme py, etc. 25,439 27,468

Tot short-term debt 47,489 36,059

Tot btes 77,542 64,607

Accountng pocy pped 1

Penson obgtons 10

28 F N A N C A L S T A T E M E N T S A N D T H E N D E P E N D E N T A U D T O R ' S R E P O R T

Notes to the financial statements

Note 1. Accounting policy applied The fnnc sttements re presented n ccordnce wth the ccountng stndrds ppyng to Rgsrev-sonen. The ccounts for Rgsrevsonen (operton pproprton) re ccru bsed, wheres the ccounts for Rgsrevsonen’s penson pyments (other pproprton) re cost bsed. The ccountng pocy pped s dentc wth the pocy pped to smr government pproprtons. The ccountng pocy pped s the sme s st yer, yet purchses from other government nsttutons or ndependent government nsttutons re presented under ordnry opertng expendture s nter-govern-ment purchse of goods nd servces, n ccordnce wth the updted gudnce on pubc-sector nnu reports pubshed by the Dnsh Agency for Modernston n December 2017. The ccountng yer s the tx yer. n the ncome sttement, ncome s recognsed when erned nd expend-ture s recognsed when consumed. However, when goods devered re not stocked nd opertng equpment s not cptsed, then the ccru ccountng prncpes re used n combnton wth the prncpe of eg cm. The bnce sheet shows Rgsrevsonen's tot ssets nd btes. Expendture s ccrued s foows: • Pyro costs re expensed s ncurred. • Hody ownce nd provsons for ccumuted overtme re expensed once yer. • Consumpton of goods nd servces, tkng pce wthn the sme tx yer nd wthn 12 months fter de-

very or the performnce of the work, s recognsed upon devery or when the work hs 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 btes tht do not concern devery of goods nd servces, provson or short-term bty s

recorded when egy bndng event hs occurred nd the bty hs become pusbe nd cn be est-mted.

ncome s recognsed when servce hs been provded nd eg enttement to receve pyment hs been obtned. Provsons concern severnce pyments nd mntennce of the esed offce spce, whch, n ccordnce wth the esehod contrct, must be mntned to the eve requred by the property owner, shoud the ese be termnted. Current penson pyments mde to pubc offcs re expensed. No provsons for future penson benefts re mde n the bnce sheet. St, pyro s chrged wth expendture equ to technc penson bene-ft provson. The current technc penson provson mkes up 15 per cent of the penson-berng sry. For vcnces fed fter 1 August 2005 or ter, the rte s 20.3 per cent of the penson-berng sry. n 2017, tot pen-son provsons mde up DKK 2.0 mon gnst DKK 2.1 mon n 2016. The penson obgton referred to n note 10 on pge 31 s bsed on n ctur estmte nd w hence-forwrd be estmted every fve yers. Dt from Nvson Stt/SKS provdes the bss for Rgsrevsonen's fnnc sttements.

F N A N C A L S T A T E M E N T S A N D T H E N D E P E N D E N T A U D T O R ' S R E P O R T 29

Note 2. Intangible fixed assets Rgsrevsonen's ntngbe fxed ssets re prmry n the form of cences. Cost nd ccountng vue ws zero t the begnnng of 2017.

Note 3. Tangible fixed assets

(DKK '000) Lesehod

mprovements Furnture nd T equpment

Tot tngbe fxed ssets

Cost, openng bnce 5,126 6,279 11,405

Addtons durng the yer 58 570 628

Dsposs durng the yer 0 0 0

Cost, cosng bnce 5,184 6,849 12,033

Accumuted deprecton s t 31 December 2017 (4,160) (4,457) (8,617)

Net sset vue s t 31 December 2017 1,023 2,392 3,416

Deprecton durng the yer (117) (1,189) (1,306)

Fxed ssets retng to esehod mprovements re fxtures nd fttngs n the esed premses pd for by Rgsrevsonen, nd fxed ssets retng to furnture nd T equpment re mny T cences.

Note 4. Commercial services provided

(DKK '000) Actu

2017 Approprton

2017 Vrnce

2017 Openng bnce

2017

Tot ccumuted

resut

Sres exceedng the pyro cp 3,790 3,600 (190) (2,061) (2,251)

Other ordnry opertng expendture 1,088 1,200 112 (555) (443)

Expendture 4,877 4,800 (78) (2,616) (2,694)

ncome retng to udt servces (6,033) (4,800) 1,233 1,340 2,573

Tot (1,156) 0 1,156 (1,277) (121)

Wth postve vrnce n 2017 of DKK 1,156,000, the ccumuted defct hs been reduced to DKK 122,000. Ths mount s ncuded n the tot resut for prncp ccount no. 03.31.11 Rgsrevsonen. We expect to offset the defct n the course of 2018.

30 F N A N C A L S T A T E M E N T S A N D T H E N D E P E N D E N T A U D T O R ' S R E P O R T

Note 5. Provisions At the end of the fnnc yer 2016, Rgsrevsonen mde provson of DKK 1.2 mon for refurbshment of the remnng 45 per cent of our offce spce ncudng the 4th foor of Sct. Annæ Pæ. Wth the competon of the refurbshment proect t the end of 2017, the need for 2018 provson n ths respect hs been em-nted. Rgsrevsonen hs returned the vcted offce spce on the 4th foor to the propretor, nd the stnd-rd of our current offce spce s now such tht t coud be returned to the propretor wthout ncurrng dd-ton costs. Rgsrevsonen hs mde provson for severnce commtments mde n 2017, reesng pyments n 2018. The severnce commtments hve been recognzed n the sry ccounts for 2017 nd set off gnst pro-vsons mde. At yer-end 2017, provsons for severnce commtments ws DKK 1.3 mon.

Note 6. Follow-up on cash flow Rgsrevsonen hs deprected ts fxed ssets on monthy bss nd mde the reevnt csh trnsfers on the respectve SKB bnk ccounts (government pyment system). n ccordnce wth the csh fow rrnge-ment, Rgsrevsonen hs dusted the non-nterest berng SKB ccount end of nury 2018 to ensure tht the bnce corresponds to the net btes s t 31 December 2017 (provsons, current ssets, short-term btes nd surpus crred forwrd).

UTLSATON OF BORROWNG LMT

(DKK '000) 2017

Tot ntngbe nd tngbe fxed ssets 3,416

Borrowng mt 7,500

Utston rte 45.5%

Note 7. Follow-up on payroll cap

(DKK '000) Accumuted svngs,

openng bnce 2017.

Crred forwrd s pproved by

the Foketng

Actu 2017 Accumuted svngs

cosng bnce 2017

Pyro cp 163,700

Sres 163,202

Vrnce 6,871 498 7,369

ust s government nsttutons, Rgsrevsonen s requred to keep wthn pyro cp nd keep stff costs wthn the mt set by the Fnnce nd Approprton Act. However, subect to pprov by the Foketng, Rgs-revsonen my exceed the mt by crryng forwrd svngs n sry costs recorded n prevous yers. Rgsrevsonen recorded svngs n sres of DKK 0.5 mon n 2017, whch ncreses Rgsrevsonen’s c-cumuted surpus t yer-end 2017 to DKK 7.4 mon.

F N A N C A L S T A T E M E N T S A N D T H E N D E P E N D E N T A U D T O R ' S R E P O R T 31

Note 8. Appropriations

(DKK mon) Actu 2016 Budget 2017 (not udted)

Actu 2017 Vrnce 2017

Budget 2018 (not udted)

Approprton Act/Addton

Approprton 2018

Net pproprton 207.3 214.6 212.1 2.5 217.2 217.2

ncome 5.1 5.3 6.0 0.7 4.5 6.3

Expendture 222.5 232.9 219.3 13.6 224.2 223.5

Resut for the yer (10.2) (13.0) (1.1) 11.9 (2.5) 0.0

Accumuted resut:

Accumuted surpus openng bnce 2017 21.7

Resut for the yer (1.1)

Accumuted surpus to be crred forwrd by yer-end 20.6

The negtve resut for the yer of DKK (1.1) mon s deducted from the surpus crred forwrd from pre-vous yers. The defct conssts of surpus of DKK 0.5 mon n pyro nd negtve vrnce to budget n other opertng expendture of DKK (1.6) mon. Rgsrevsonen competed the refurbshment of ts offce spce n 2017 nd t the sme tme termnted prt of ts ese, whch reduced ts nnu ese costs by DKK 1.9 mon wth effect from 2018. Rgsrevsonen expects to return to the Dnsh prment pproxmtey DKK 5 mon of the estmted ccumuted sv-ngs on the ddton pproprton for 2018.

Note 9. Government guarantee and adjusted equity (opening balance) Adusted equty (openng bnce) represents the fundng octed to Rgsrevsonen by the Dnsh govern-ment. n the bnce sheet, the dusted equty s offset by government gurntee. The vue of the d-usted equty nd the government gurntee equs the mt of fuctuton set for Rgsrevsonen’s ccumu-ted defct. Orgny, the government gurntee ws ccuted s 2 per cent of gross expendture for 2006.

Note 10. Pension benefit obligation

(DKK mon) 31 December 2017 31 December 2018

Penson beneft obgton 203.1 310.4

Rgsrevsonen’s ggregte penson beneft obgton to current pubc offcs nd retred pubc offcs (ncudng cpt vue of ny future ncrese n retrement ge) mounted to DKK 310.4 mon s per 31 December 2017 gnst DKK 203.1 mon s per 31 December 2016. New regutons concernng ccuton of the penson beneft obgton were pubshed by the Mnstry for Economc Affrs nd the nteror on 5 uy 2017. Accordng to the new regutons, the vue of pubc servce pensons re ncresed consderby mny becuse the dscount rte hs been reduced from 2 per cent to pproxmtey zero, nd n ddton 2 per cent nfton rte shoud be fctored n, resutng n bse n- terest rte of mnus 2 per cent.

32 F N A N C A L S T A T E M E N T S A N D T H E N D E P E N D E N T A U D T O R ' S R E P O R T

Our ccutons refect the consequences of the retrement reform, whch rsed the retrement ge, nd re bsed on the ssumpton tht retrement w tke pce two yers fter the erest possbe retrement ge, s stputed n the Muncp Penson Regutons. The ccutons so tke nto consderton the rues concernng cuts n the penson f retrement tkes pce before the sttutory retrement ge, whch depend on 1) yer of brth – before or fter 1 nury 1959 – nd 2) the dte the empoyee oned Rgsrevsonen – be-fore or fter 1 nury 2007. The nnu growth rte corresponds to n nnu verge contrbuton percen-tge of 45.1 per cent of the penson-berng sry. The nnu growth rte nd sres hve been weghted gnst the perod n whch the growth s expected. The penson beneft obgton hs been ccuted bsed on the most recent benchmrk for fe expectncy pubshed by the Dnsh Fnnc Supervsory Authorty, whch ncudes benchmrk for future mprovements n fe expectncy, nd tkes nto consderton both gender nd ge. Remnng ccutons nd the prncpes of cptston re bsed on the G82-mode.

F N A N C A L S T A T E M E N T S A N D T H E N D E P E N D E N T A U D T O R ' S R E P O R T 33

MANAGEMENT STATEMENT

Tody the mngement of Rgsrevsonen presented the nnu report nd fnnc stte-ments for 2017 for prmry ccount no. 03.31.11. Rgsrevsonen, nd for subsdry ccount no. 03.41.01.60. Rgsrevsonen’s pensons. The fnnc sttements hve been prepred n ccordnce wth the ccountng provsons ppcbe to Rgsrevsonen nd form n n-tegr prt of the fnnc sttements of the Foketng. t s our opnon tht • the nnu report s correct, .e. free from mter mssttement or omssons, nd tht

trget settng nd reportng re dequte; • the trnsctons ncuded n the fnnc sttements re consstent wth pproprtons

grnted, egston nd other regutons, greements mde nd genery ccepted prctce;

• tht busness procedures estbshed ensure fnncy pproprte dmnstrton of the fundng for whch the fnnc sttements re presented.

Copenhgen, 5 Apr 2018

Lone Strøm Audtor Gener

Nnn Hennng Assstnt Audtor Gener

INDEPENDENT AUDITOR’S OPINION

To the Presdum of the Foketng Conclusion We hve udted the fnnc sttements of Rgsrevsonen for the fnnc yer 1 nury – 31 December 2017 whch comprse ncome sttement, bnce sheet nd notes, ncud-ng summry of sgnfcnt ccountng poces on pges 26-33. The fnnc sttements re prepred n ccordnce wth the ccountng provsons ppcbe to Rgsrevsonen nd form n ntegr prt of the fnnc sttements of the Foketng. n our opnon, the fnnc sttements re, n mter spects, correct. The fnnc sttements hve been prepred n ccordnce wth the ccountng provsons ppcbe to Rgsrevsonen nd form n ntegr prt of the fnnc sttements of the Foketng.

34 F N A N C A L S T A T E M E N T S A N D T H E N D E P E N D E N T A U D T O R ' S R E P O R T

Basis for opinion We conducted our udt n ccordnce wth nternton udtng stndrds nd ddton provsons ppcbe n Denmrk, nd the pubc-sector udtng stndrds s the udt s conducted on the bss of the provsons of the udt nstructons ssued by the Presdum of the Foketng to the udtor of the Foketng. Our responsbtes under those stndrds nd requrements re further descrbed n the Audtor’s responsbtes for the udt of the fnnc sttements secton of our report. We re ndependent of the Foketng n ccord-nce wth nternton ethc prncpes for udtors (ESBA’s ethc stndrds) nd ny ddton provsons ppcbe n Denmrk, nd we hve fufed our other obgtons n ccordnce wth these ethc stndrds nd requrements. n our opnon, the udt ev-dence we hve obtned s suffcent nd pproprte to provde bss for our udt opnon.

Emphasis of matter The ncome nd expendture sttement nd note 8 for the fnnc yer 1 nury – 31 De-cember 2017 ncude the pproved budget for 2017. As t ppers from the fnnc stte-ments, these budget fgures re not subect to udt. Ths does not ffect our udt opnon.

Management’s responsibility for the financial statements Mngement s responsbe for the preprton of fnnc sttements tht gve true nd fr vew n ccordnce wth the ccountng provsons tht ppy to Rgsrevsonen nd form n ntegr prt of the fnnc sttements of the Foketng. Mngement s so re-sponsbe for such ntern contro s mngement determnes s necessry to enbe the preprton of fnnc sttements tht re free from mter mssttement, whether due to frud or error. n preprng the fnnc sttements, mngement s responsbe for ssessng Rgsrev-sonen’s bty to contnue s gong concern, dscosng, s ppcbe, mtters reted to gong concern nd usng the gong concern bss of ccountng n preprng the fnn-c sttements, uness mngement ether ntends to cese opertons, or hs no restc terntve but to do so.

Auditor’s responsibility for the audit of the financial statements Our obectves re to obtn resonbe ssurnce bout whether the Fnnc Sttements s whoe re free from mter mssttement, whether due to frud or error, nd to ssue n udtor’s report tht ncudes our opnon. Resonbe ssurnce s hgh eve of ssur-nce, but s not gurntee tht n udt conducted n ccordnce wth nternton u-dtng stndrds, the ddton provsons tht ppy n Denmrk, ncudng the pubc-sec-tor udtng stndrds, the provsons of the udt nstructons ssued by the Presdum of the Foketng to the udtor of the Foketng, w wys detect mter mssttement when t exsts. Mssttements cn rse from frud or error nd re consdered mter f, ndvduy or n the ggregte, they coud resonby be expected to nfuence the eco-nomc decsons of fnnc sttements users tken on the bss of these fnnc stte-ments. As prt of n udt conducted n ccordnce wth nternton udtng stndrds, the d-dton provsons tht ppy n Denmrk, ncudng the pubc-sector udtng stndrds, the provsons of the udt nstructons ssued by the Presdum of the Foketng to the u-dtor of the Foketng, we exercse professon udgment nd mntn professon scep-tcsm through the udt. We so:

F N A N C A L S T A T E M E N T S A N D T H E N D E P E N D E N T A U D T O R ' S R E P O R T 35

• dentfy nd ssess the rsks of mter mssttement of the fnnc sttements, whether due to frud or error, desgn nd perform udt procedures responsve to those rsks, nd obtn udt evdence tht s suffcent nd pproprte to provde bss for our opnon. The rsk of not detectng mter mssttement resutng from frud s hgher thn for one resutng from error s frud my nvove couson, forgery, nten-ton omssons, msrepresenttons or the overrde of ntern contro.

• Obtn n understndng of ntern contro reevnt to the udt n order to desgn u-dt procedures tht re pproprte n the crcumstnces, but not for the purpose of ex-pressng n opnon on the effectveness of Rgsrevsonen’s ntern contro.

• Evute the pproprteness of ccountng poces used nd the resonbeness of ccountng estmtes nd reted dscosures mde by mngement.

• Concude on the pproprteness of mngement’s use of the gong concern bss of ccountng n preprng the fnnc sttements nd, bsed on the udt evdence ob-tned, whether mter uncertnty exsts reted to events or condtons tht my cst sgnfcnt doubt on Rgsrevsonen’s bty to contnue s gong concern. f we concude tht mter uncertnty exsts, we re requred to drw ttenton n our udtor’s report to the reted dscosures n the fnnc sttements or, f such dsco-sures re ndequte, to modfy our opnon. Our concusons re bsed on the udt ev-dence obtned up to the dte of our udtor’s report. However, future events or cond-tons my cuse Rgsrevsonen to cese to contnue s gong concern.

We communcte wth those chrged wth governnce regrdng the pnned scope nd tmng of the udt nd sgnfcnt udt fndngs, ncudng ny sgnfcnt defcences n the ntern contro tht we dentfy durng our udt.

Statement on the management’s review Mngement s responsbe for the mngement’s revew. Our opnon on the fnnc sttements does not cover the mngement’s revew nd we do not express ny form of ssurnce concuson on the mngement's revew. n connecton wth our udt of the fnnc sttements, our responsbty s to red through the mngement’s revew nd, n dong so, consder whether the mngement’s revew s mtery nconsstent wth the fnnc sttements or our knowedge obtned n the u-dt, or otherwse ppers to be mtery msstted. Moreover, we consder whether the mngement’s revew ncudes dscosures requred by the ccountng provsons tht ppy to Rgsrevsonen. Bsed on the work performed by us, we beeve tht the mngement’s revew s n ccord-nce wth the fnnc sttements nd hs been prepred n ccordnce wth the ccount-ng provsons tht ppy to Rgsrevsonen. We dd not dentfy ny mter mssttement n the mngement’s revew.

36 F N A N C A L S T A T E M E N T S A N D T H E N D E P E N D E N T A U D T O R ' S R E P O R T

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

Statement on compliance audit and performance audit Mngement s responsbe for the consstency of trnsctons comprsed by the fnnc reportng wth pproprtons, egston nd other regutons s we s wth greements concuded nd genery ccepted prctce, nd for due fnnc consdertons hvng been tken nto ccount n the dmnstrton of the funds nd the operton of the enter-prses comprsed by the fnnc sttements. Mngement s n ths connecton respons-be for estbshng systems nd processes tht support economy, effcency nd effectve-ness. n ccordnce wth the pubc-sector udtng stndrds, t s our responsbty, n connec-ton wth our udt of the fnnc sttements, to seect the subect mtters reevnt to both the compnce udt nd the performnce udt. Durng compnce udt, we ver-fy wth resonbe ssurnce for the subect mtters seected whether the trnsctons comprsed by the fnnc reportng re consstent wth pproprtons, egston nd other regutons s we s greements concuded nd genery ccepted prctce. Dur-ng performnce udt, we ssess wth resonbe ssurnce whether the systems, pro-cesses or trnsctons exmned support tht due fnnc consdertons re tken nto ccount n the dmnstrton of the funds nd the operton of the enterprses comprsed by the fnnc sttements. f we, bsed on the work performed, concude tht our udt gves rse to mter crtc comments, we re to report on these. We do not hve ny mter crtc comments to report n ths respect.

Copenhgen, 5 Apr 2018

PrcewterhouseCoopers Stte-uthorsed ccountnts

CVR no. 33 77 12 31

ens Otto Dmgrd Stte-uthorsed Pubc Accountnt

esper Rnd Petersen Stte-uthorsed Pubc Accountnt

R E P O R T S S U B M T T E D T O T H E P U B L C A C C O U N T S C O M M T T E E N 2 0 1 7 37

APPENDIX 1. REPORTS SUBMITTED TO THE PUBLIC ACCOUNTS COMMITTEE IN 2017

The deyed Sgnng Progrmme nury 2017 The Mnstry of Empoyment's dt on resource progrmmes nury 2017 Centr Regon Denmrk's rsk nd contngency mngement n two hospt constructon proects Februry 2017 The regons' mngement of dmnstrtve nd medc mngers' py Februry 2017 The bss for documentng the effect of soc nterventons Mrch 2017 The poce's mngement of wepons nd mmunton Apr 2017 Effectve nspecton regmes Apr 2017 The cpt ncrese n DONG Energy A/S nd the nt pubc offerng (PO) My 2017 The medc hepne 1813 set up by the Cpt Regon of Denmrk My 2017 The Mnstry of Txton's fnnc mngement of the proect concernng the deveopment of new property ssessment system une 2017 The regons' use of consutnts une 2017 The use nd ccuton of Denmrk's deveopment ssstnce une 2017 The udt of the government ccounts for 2016 August 2017 Quot concentrton n the Dnsh fshng ndustry August 2017

38 R E P O R T S S U B M T T E D T O T H E P U B L C A C C O U N T S C O M M T T E E N 2 0 1 7

The energy effcency obgton scheme (EEO) September 2017 Tuton nd ctvton of syum seekers September 2017 DSB’s effort to compete the C4 trns October 2017 The bss for decson prepred by the Mnstry of Defence concernng procure-ment of 27 F-35 combt rcrft October 2017 Trn punctuty October 2017 The protecton of T systems nd heth dt n three regons November 2017 Preventon of hospt-cqured nfectons November 2017 Knowedge of effectveness creted n connecton wth soc-sector fundng schemes November 2017 SKAT's customs contros nd gudnce on customs cernce December 2017 Summres n Engsh of Rgsrevsonen's reports cn be found on www.rgsrevsonen.dk.