Summary of Rigsrevisionen's client survey

In the first three weeks of September 2009, Rambøll Management Consulting conducted a client survey on behalf of Rigsrevisionen. Rambøll Management Consulting interviewed well over 60 permanent secretaries, directors general, managing directors of government-owned companies, financial managers, other relevant employees in central government, and the six members of the Public Accounts Committee.

The objective of the client survey was to establish whether the audits performed by Rigsrevisionen are perceived as adding value to the institutions under audit. Rigsrevisionen was in particular interested in the clients' assessment of the quality of the services we provide, the usefulness of our audit conclusions, and the clients' perception of the working relationship with Rigsrevisionen.

1. Financial auditing (annual audit)

The quality of Rigsrevisionen's financial audit (annual audit) is generally rated as being very high. Still, the respondents see potential for further development in the following areas:

• The new approach to annual audit introduced by Rigsrevisionen in 2009 should be continued. Many of the respondents consider the new approach as an opportunity to establish more constructive working relationships with the institutions under audit.

• Taking up new areas for audit such as performance contracts, organisational development projects and large investments is challenging Rigsrevisionen's core competencies and thereby its strong auditing profile. Rigsrevisionen should consider the risk of expanding into "new" areas.

• Ensuring a development towards an up-to-date administrative culture with in-depth understanding of the framework under which the institutions under audit are operating, should continue to be a focus area for Rigsrevisionen. Rigsrevisionen should consider how it can create value for central government and establish a more strategic approach to the development of an effective administrative culture and organization.

• According to the respondents, the competencies of Rigsrevisionen's staff could be raised to a more uniform level.

• Rigsrevisionen should consider the match between staff's competencies and the focus of the IT audit. Some respondents are of the opinion that Rigsrevisionen should be more focused on IT operations. • Some respondents state that Rigsrevisionen is not sufficiently focused on "supplier-related challenges" (a term introduced by Rigsrevisionen), but is directing its criticism only towards the government institution. Rigsrevisionen could develop guidelines for an appropriate approach to government IT projects in a co-operation with the digital task-force established under the Ministry of Finance and the National IT and Telecom Agency.

• Rigsrevisionen should consider the possibility of moving forward the issue of the audit opinion so that management/permanent secretaries are not required to sign the accounts before they have read the audit opinion.  • Rigsrevisionen should ensure clear communication on auditing principles and distribution of responsibility in relation with the central government Administrative Service Center. Many respondents are asking for an audit practice according to which the Administrative Service Center - and not the individual institutions - is responsible for ensuring achievement of the projected efficiency gain.

2. Performance auditing (major examinations)

A large group of respondents generally are of the opinion that Rigsrevisionen's reports are of a high quality, as the assessments and conclusions appear to be correct, fair and well researched. However, a large minority of the respondents are of the opinion that the professional quality of many of the reports is inadequate. They state two factors as the main cause of this rating: (1) The standards that Rigsrevisionen are using to audit the institutions up against are not sufficiently well established, and (2) Rigsrevisionen's understanding of the political framework and practice in central government is inadequate. Another minority of the respondents are of the opinion that the quality of Rigsrevisionen's audit memoranda and to some extent also the draft reports is not up to standard.

The respondents are pointing to the following areas where Rigsrevisionen could improve its performance further:

• Ensure firm establishment and application of auditing standards that the institutions can be measured up against.  • Ensure understanding of the practice of central government, including decision processes, political and financial framework, etc. Increased knowledge in the area could be achieved, for instance through recruitment of staff with practical experience from central government, introduction of exchange and stationing agreements. • Further development of Rigsrevisionen's competencies within audit methodologies.

• The quality of audit memoranda could be improved before they are sent to the institutions under audit. Also the quality of draft reports could be raised, and in particular the quality of the very complex reports or the reports that are giving rise to particular political interest.

• Rigsrevisionen could be more responsive to the institutions under audit, in particular in the phase where the audit memoranda and draft reports are being prepared.

3. Coordination, planning and counselling

The respondents are pointing to coordination, planning and counseling as areas, which Rigsrevisionen could develop further:

• Rigsrevisionen could keep the institutions under audit better informed of time schedules and deadlines: When is the institution expected to participate actively in the audit, when is the institution expected to submit various information/material, etc.

• Rigsrevisionen could improve its planning and thus avoid subjecting the institutions to an undue work pressure during the summer holidays.

• Rigsrevisionen could improve its coordination and timing of the various audits in the same institution to reduce the strain on the institution to a minimum. Rigsrevisionen could, for instance devote more attention to knowledge sharing internally and thereby ensure that information on the institution under audit is used to its full potential before the institution is approached.

• Many of the respondents would like to receive more counselling from Rigsrevisionen, as it would help them in their daily work and also contribute to the streamlining of central government.

4. Public Accounts Committee

The Public Accounts Committee is of the opinion that Rigsrevisionen's performance within financial and performance auditing is on a very high level. The Public Accounts Committee also states that it has a well functioning cooperation with Rigsrevisionen. The Committee is making various suggestions concerning the interaction between Rigsrevisionen and the Committee and the activities of Rigsrevisionen.

For further information please contact Nanna Henning (Phone +45 33 92 85 75).