Udenrigsudvalget 2013-14, Finansudvalget 2013-14, Klima-, Energi- og Bygningsudvalget 2013-14
URU Alm.del Bilag 42, FIU Alm.del Bilag 26, KEB Alm.del Bilag 74
Offentligt
Notification of the Auditor General of Denmark in cases of fraud, corruption orfinancial mismanagementFile no.: 104.DAN.6-6.cDate: March 2012Expiration Date: 31 December 2013_____________________________________________________________________________________________
InstructionNotification of the Auditor General of Denmark (Rigsrevisionen) in cases of fraud,corruption or financial mismanagement in connection with administration of funds fordevelopment assistance1. BackgroundPursuant to section 10, subsection 1 in The Auditor General's Act,Rigsrevisorloven(Consolidated Act no. 101,19 January 2012), it is the duty of authoritiesadministering government funds to inform the Auditor General of matters considered ofimportance for the audit. Reporting of cases of fraud, corruption or financial mismanagementis a part of the Ministry of Foreign Affairs’ fulfilment of this obligation.Based on this statutory provision and the ministerial instructions applying to the overallministerial domain of the Ministry of Foreign Affairs, it is the practice of the Ministry ofForeign Affairs to notify the Auditor Generalin cases described in section 2 below. Thispractice applies to the development assistance funds administered by the Foreign Service andthe funds administered by others (authorities in recipient countries, international organisations,institutions, NGOs, etc.).2. What matters should be notified about?Anyprobable cause to suspect fraud, corruption or financial mismanagement in connectionwith the administration of development assistance funds must be reported.The obligation to notify the Auditor General includes all substantial cases of theaforementioned irregularities. This implies that, as a rule, notification will not be relevant incases of e.g. burglary or simple theft committed by third-parties (not employees of program orpartner institutions),unintentional minor cash differences, liquidation/bankruptcy, lack ofdocumentation for small amounts, temporary delays in bookkeeping and other similar,temporary delays in administrative procedures that are not considered to reflect irresponsibleadministration.Incidents caused bytraffic accidents, fire, natural disasters or similar shall not bereported, unless there is suspicion of deliberate and ill intentions behind the incident.If the reporting unit initiates a forensic audit or other investigation performed by externalpersonnel it is in particular necessary to report the matter.Matters about irregularities concerning multilateral assistance are reported to the AuditorGeneralonly if these are of a certain magnitude or have a character, which specifically relates toDanish interests (e.g. contract with Danish companies).
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Relevant incidents must be attended to without unnecessary delay and reported to KVA via thec-case system (re. below)no later than two weeks after the irregularities have come to theattention of the unit responsible for the grant. In cases of doubt whether to report or not KVAmust be consulted.3. How to notify?The case must be submitted by the unit responsible for the grant via the web based c-casesystem on the intranet of the Ministry of Foreign Affairs. Detailed description on how to reportis found in the c-case system.The unit responsible for the grant is requested to estimate thesuspected amount of the potential loss of Danish funds (Danish share) involved in the incidentand report it via the c-case system.In addition to the reporting to the Auditor General it is mandatory to inform the Minister forDevelopment Cooperation if the incident involves a suspected amount (potential loss) ofDanish funds of 1 million DKK or more. However, incidents involving a suspected potentialloss below 1 million DKK should also be reported to the Minister if special reasons warrantthis (political aspects, publicity etc.). It is the responsibility of the unit responsible for the grantto carry out any notification of the minister.The report sent to KVA via the c-case system should explain the matter in a clear and preciseway so, including amount involved and actions taken to investigate and/or rectify thematter.The report will be forwarded to the Auditor General.By default, the letter sent to the Auditor Generalwill be published on the Ministry of ForeignAffairs’ website. Under special conditions the letter or parts of it can be exempted publicationcf. Law of public access to files (Offentlighedsloven).4. Follow-up and documentationThere are two ways of following-up on a c-case:To submit a report to the Auditor General via the c-case system.This option is chosen when there is a development in the case with new events orinformation regarding the case since last report sent to the Auditor General.To create a follow-up note in the c-case system for future documentation.This option is chosen if there has been no substantial development in the case since lastreport sent to the Auditor General. The follow-up note contains information on actionstaken and events happened in connection with the case since last report or follow-upnote, the reason for choice of new follow-up date and the reason for not informing theAuditor General at time of creation of the follow-up note.
It is the responsibility of the unit responsible for the grant to consider and document whetheror not to submit a report continually and at least every six months until the case is closed. Thereport(s) and the follow-up note(s), saved in the c-case system, serve as documentation.Quality Assurance of Development Assistance (KVA)
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