Recent audits reveal that three Danish ministries have significant issues with their financial accounts, leading the National Audit Office of Denmark (Rigsrevisionen) to issue reservations regarding their part of the national budget for 2023. The auditors have raised concerns specifically about the Ministry of Business (Erhvervsministeriet), the Ministry of Social Affairs, Housing, and Aging (Social-, Bolig- og Ældreministeriet), as well as the Ministry of Justice (Justitsministeriet).
The Ministry of Business reported an allocation of 1.1 billion Danish kroner (approximately 160 million USD) more than necessary for the decommissioning of oil and gas activities in the North Sea. Meanwhile, the Ministry of Social Affairs, Housing, and Aging underestimated its receivables in the housing sector by 138 million kroner, which means that the state’s surplus is actually 550 million kroner higher than previously reported. Additionally, the Ministry of Justice incorrectly accounted for penalty income worth 587 million kroner in the wrong fiscal year.
The auditors have expressed dissatisfaction with these reservations but noted that the financial accounts of other ministries were free from significant errors. However, the National Audit Office also pointed out important uncertainties within the Ministry of Taxation (Skatteministeriet) and the Ministry of Food, Agriculture, and Fisheries (Ministeriet for Fødevarer, Landbrug og Fiskeri). In the case of the Ministry of Taxation, concerns center around the assessment of state debt, as some debtors may be unable to repay. For the Ministry of Food, Agriculture, and Fisheries, there are uncertainties regarding compensation claims from mink farmers, a point of contention due to past decisions affecting the mink industry.
Furthermore, there are noted concerns regarding weak financial management within the Ministry of Defence (Forsvarsministeriet) and deficiencies in IT security across four other ministries, particularly in critical business systems.
While only three ministries are facing direct reservations, the audit highlights several areas where improvements are necessary across multiple government entities, indicating a broader need for enhanced fiscal oversight and management within the Danish government.