Skip Ribbon Commands
Skip Navigation LinksHome > For media > Press releases > Document no. 1 (2000–2001)

Document no. 1 (2000–2001)

Annotations concerning the Central Government Financial Statements for 1999 and matters for information purposes.
Published 11/6/2000 12:00 PM

Document no. 1 (2000–2001) takes up a total of 37 matters; 25 of these were annotations and twelve were matters for information purposes. The Office of the Auditor General was unable to approve the 1999 accounts for Ila State Prison and Institution for Preventive Detention, the Norwegian College of Veterinary Medicine, Nord-Trøndelag Regional College, the National Hospital Dispensary and the Norwegian Radium Hospital Dispensary. The accounts of the Directorate of Customs and Excise, Statistics Norway and the Norwegian Government Consultative Office for Inventors have been approved with certain reservations. No matters were taken up in respect of the Ministry of Children and Family Affairs, the Ministry of the Environment, the Ministry of Petroleum and Energy and the Ministry of Cultural Affairs.

In connection with auditing of the accounts of the National Insurance Administration and the accounts of the Norwegian Public Service Pension Fund, a number of errors and deficiencies have been discovered concerning the calculation of pensions from both the Norwegian Public Service Pension Fund and the National Insurance. To some extent these errors have resulted in significantly incorrect payments. Since individuals are required to check whether pension payments are correct, the Office of the Auditor General considers this to be a serious matter. The introduction of new financial management systems continues to cause problems, and many agencies still fail to understand the importance of reconciliation routines that can reveal errors and deficiencies in the accounts throughout the year. The result of this is that significant yet inexplicable reconciliation discrepancies may emerge, and substantial resources will be required to determine where the problem lies and to carry out the necessary corrections. Several matters have also been taken up concerning the large number of outstanding cases and arrears relating to the collection of duties, including the collection of inheritance duty. Audits carried out also indicate a need to draw up guidelines as to how the disposal of state-owned companies shall be prepared and implemented with regard to, among other things, which valuations shall be used in connection with the transfer of assets.

Ministry of Labour and Government Administration

The auditing of pension payments made by the Norwegian Public Service Pension Fund has revealed payment of both too much and too little pension – in some cases considerably more or less. These errors are generally related to weaknesses in the system and routines.

The Office of the Auditor General’s follow-up of an earlier annotation concerning the Directorate of Labour shows continued discrepancies between routines, guidelines and administrative procedure in respect of incorrect payments and the abuse of rehabilitation benefits.

Ministry of Finance and Customs

In connection with the Directorate of Taxes’ use of private tax accounting offices, the Office of the Auditor General has taken up, among other things, deficiencies regarding agreements entered into, follow-up by the directorate, and IT security and documentation.

Developments in respect of outstanding taxes/duties and the collection of taxes/duties from municipality 2312 Continental Shelf/Abroad are of concern. The Office of the Auditor General assumes that the situation concerning outstanding taxes/duties will improve and that the work of strengthening the task of collection will be given high priority.

The Office of the Auditor General has also taken up one matter concerning the large number of cases outstanding with regard to inheritance duty. The long period of time taken to calculate inheritance duty has been taken up on a number of occasions before. The Office of the Auditor General considers the lengthy period of administrative handling to be extremely unfortunate, since it may cause problems for both the heirs and the collection of duties.

In connection with the auditing of the 1999 accounts for the Directorate of Customs and Excise, the Office of the Auditor General has taken up the issue of deficient reconciliation and control of approximately NOK 45 billion between the system for determining duties and the accounting system. The accounts have been approved with certain reservations concerning the above-mentioned weaknesses and deficiencies.

The 1999 accounts of Statistics Norway fail to comply with the requirements concerning the grant regulations and the financial management regulations with functional requirements. The nature and extent of the errors and deficiencies discovered are such that the accounts have been approved with certain reservations.

Ministry of Fisheries

The Storting will be informed that the 1999 accounts of the Norwegian National Coastal Administration can be approved, but that the accounts still contain errors and deficiencies. The Office of the Auditor General has also taken up the deficiency in the ministry’s quality assurance of its explanations to the Central Government Financial Accounts and the reported capital account data.

Ministry of Defence

The Office of the Auditor General is critical of the Ministry of Defence for the deficient management of weaponry and ammunition in the Army and Home Guard. This criticism includes the follow-up and collection of mobilisation weapons, the control of weapons issued to members of the Home Guard and the control of ammunition.

The Defence forces also receive critical comments for errors and deficiencies in the accounts of the Norwegian Defence Building Services and in some subordinate accounts of the Defence forces’ military organisations.

Ministry of Justice and the Police

Control of bookkeeping routines at Ila National Prison and Institution for Preventive Detention in 1999 has been unsatisfactory. This has resulted in significant errors and deficiencies in the presentation of accounts. The Office of the Auditor General was therefore unable to approve the accounts for 1999.

Ministry of Education, Research and Church Affairs

There is a great deal of uncertainty concerning the accounts presented at the Norwegian College of Veterinary Medicine and Nord-Trøndelag College. The Office of the Auditor was therefore unable to approve the colleges’ accounts for 1999.

The Office of the Auditor General also has critical comments regarding the fact that the Executive Board of the Research Council of Norway converted the NORSAR division to an independent foundation without obtaining the necessary authorisation pursuant to the regulations.

The Office of the Auditor General will inform the Storting about the accounts of the Information Services Fund.

Ministry of Local Government and Regional Development

The Office of the Auditor General takes up the fact that the Central Government Procurement Rules have not been observed in connection with the establishment and operation of new central government refugee camps. In addition, control of the financial and administrative aspects of operations has been criticised.

The Office of the Auditor General will inform the Storting about grants for election expenses.

Ministry of Agriculture

The Office of the Auditor General has critical comments regarding the lack of security in the IT systems used in connection with the management and payment of agricultural grants by the county governors.

Insufficient clarification of the tax deduction for input VAT in the Norwegian Grain Corporation has been taken up. The Office of the Auditor General criticises the Norwegian Institute of Land Inventory for its unauthorised purchase of shares in a private limited company.

Ministry of Trade and Industry

The Office of the Auditor General takes up several conditions concerning the financial management of the Norwegian Government Consultative Office for Investors, and the accounts have been approved with certain reservations.

The Norwegian Storting will be informed about certain weaknesses in the financial management of the Norwegian Patent Office and the Norwegian Metrology and Accreditation Service.

Ministry of Transport and Communications

The Office of the Auditor General has critical comments to the project management and use of consultants in connection with the introduction of a new financial management system in the Civil Aviation Administration. Among other things, the Office of the Auditor General has highlighted deficient budget management, poor control of costs, underrating of the computing challenges and a lack of control and follow-up of external consultants.

The Office of the Auditor General has discovered that in connection with the acquisition of 26 regional airports from former airport owners there has been some confusion concerning bookkeeping routines and valuation. This means that substantial central government investments are not evident in the 1999 accounts of the Civil Aviation Administration.

Deficiencies in the Civil Aviation Administration’s routines and computer systems have led to the incorrect reporting of its operating result and cash deposits in the Central Government Financial Statements for 1999.

One matter concerning procurement activities in the Public Roads Administration has been submitted to the Storting for information purposes.

Ministry of Health and Social Affairs

Auditing of the accounts of the National Insurance has revealed deficiencies in internal control measures relating to the calculation and payment of pensions. In addition, a number of errors were found in pensions already paid out. Unsatisfactory control routines in connection with requisitions and invoices for support for hospital transport have resulted in errors and deficiencies in payments. In addition, several other flaws were discovered in the accounts submitted.

The Office of the Auditor General was unable to approve the accounts of the National Hospital Dispensary and the Norwegian Radium Hospital Dispensary. Attention has been drawn to serious errors and deficiencies in their accounting practices.

The Norwegian Storting will be informed of flaws and deficiencies concerning the National Hospital’s presentation of its accounts for 1999.

Ministry of Foreign Affairs

The Office of the Auditor General takes up the fact that the Ministry of Foreign Affairs still has problems presenting satisfactory accounts. The ministry has spent a long time rectifying the highlighted deficiencies.

In addition, the Storting will be informed about the management of Norwegian relief assistance channelled via Norwegian Church Aid and the Norwegian People’s Relief Association to Ethiopia and Bosnia, and relief funds channelled via the Food and Agriculture Organisation of the United Nations. The Storting will also be informed of the management of bilateral assistance to Vietnam, and of bonus schemes in connection with NGOs’ management of public grant schemes.


This document may be downloaded from the website of the Office of the Auditor General in Norway – www.riksrevisjonen.no – or ordered from the bookshop Akademika, tel. +47 22 11 67 70.

The document is not to be released until 12:00 noon on Monday 6 November 2000.

Document no. 1 (2000–2001) Cases distributed by type and ministry

Ministry

For observation

Admissible

Admitted

For information purposes

Total

Ministry of Labour and Government Administration

2

2

Ministry of Children and Family Affairs

0

Ministry of Finance and Customs

3

2

5

Ministry of Fisheries

2

2

Ministry of Defence

1

1

2

Ministry of Justice and the Police

1

1

Ministry of Education, Research and Church Affairs

3

1

4

Ministry of Local Government and Regional Development

1

1

2

Ministry of Cultural Affairs

0

Ministry of Agriculture

1

3

4

Ministry of the Environment

0

Ministry of Trade and Industry

1

2

3

Ministry of Petroleum and Energy

0

Ministry of Transport and Communication

2

1

1

4

Ministry of Health and Social Affairs

2

1

3

Ministry of Foreign Affairs

1

4

5

Total

9

12

4

12

37

Riksrevisjonen, Storgata 16, P.O. Box 8130 Dep, 0032 Oslo, Norway

Phone: +47 22 24 10 00

Org.nr: 974 760 843