Annual Audit Plan 2024/25

2. Risk of deficiencies in public finances

The Swedish National Audit Office continuously monitors and audits central government finances and how they are reported. In this chapter, we present current and planned audits that concern risks of deficiencies in public finances. We plan audits in response to risks related to large collection flows in the central government and the risk of deficiencies in measures to combat undeclared work. Public finance audits also focus on the risk of shortcomings in the application of the fiscal policy framework and the impact of specific measures implemented during the COVID-19 pandemic. Finally, we report an audit that concerns the risks of inefficiency in the central government’s provision of premises.

2.1 Risks related to the collection of taxes and fees under public law

For government agencies such as the Swedish Tax Agency, the Swedish Enforcement Authority and Swedish Customs, collecting taxes and fees involves significant financial flows in proprietary IT systems, in which accounting is also complex. Government agencies are often dependent on automated controls in the IT systems functioning as intended. In addition, the Swedish Tax Agency and Swedish Customs are required to report the tax gap, which includes complex calculation models. These factors increase the risk of conscious and unconscious errors in the management of taxes and fees. The Swedish National Audit Office generally focuses its auditing on ensuring that collection revenues have been correctly reported in the annual reports.

In government agencies’ annual reports, taxes are to be reported on a cash basis, meaning that they are reported when payments are actually made. In the central government annual report, on the other hand, taxes are to be reported on a revenue basis; that is, in the period in which the revenue belongs.[7] Therefore, the central government annual report uses a special method to calculate how much tax revenue is to be attributed to a certain budget year. As the method is based on estimates, the Swedish National Audit Office sees a risk of the accounting not being true and fair.

We audit measures against undeclared work

The Swedish National Audit Office regularly audits whether central government commitments that affect central government revenue and expenditure are performed efficiently. Undeclared work is a threat to the funding of the public sector, effective conditions in the labour market and healthy competition between companies. Estimates show that income from undeclared work may be substantial and that effective measures against undeclared work may lead to increased tax revenues. This is why we are auditing the Swedish Tax Agency’s measures against undeclared work.

2.2 Application of the fiscal policy framework

In 2024, we have audited the Government’s application of the fiscal policy framework in the 2024 Spring Fiscal Policy Bill and the 2024 Budget Bill. The fiscal policy framework helps ensure long-term sustainable and transparent fiscal policy and plays an important role in maintaining sound public finances. This is why the Swedish National Audit Office regularly examines the Government’s application of the fiscal policy framework in the fiscal policy bills. The audits also contribute to the external follow-up included in the framework.

2.3 Measures carried out during the COVID-19 pandemic

Central government finances are affected by specific measures implemented to address crises and temporary strains on the economy, such as the COVID-19 pandemic or the high energy prices that followed Russia’s full-scale invasion of Ukraine in 2022. The Swedish National Audit Office is currently auditing two measures implemented during the COVID-19 pandemic.

• We are examining whether temporary government grants amounting to SEK 35 billion to municipalities was an effective fiscal policy measure to stabilise the economy and maintain municipal activities. There are indications that parts of the raised government grants were not translated into municipal and regional activities and thus did not contribute to combating the crisis.
• We are examining whether the possibility for companies to defer their payments of taxes, employer contributions and VAT was an effective measure to sustain otherwise viable companies. If deferment means that unprofitable companies are sustained before they fail after building up a tax debt, the central government may lose tax revenue. The possibility of deferring tax payments now also applies to companies affected by high energy prices. Payments have amounted to SEK 135 billion so far.

2.4 Auditing government agencies’ supply of premises

We are examining whether government agencies’ procurement and use of office premises is efficient. Our examination is justified by the fact that the central government’s total rental expenses for office premises constitute a large expense item. In addition, the central government has extensive expenses for items such as improvements, renovations and restoration. Central government control of government agencies’ procurement and use of premises has remained unchanged since the 1990s. Government agencies were then given greater freedom to determine how much of their appropriations would be allocated to costs for premises, which was expected to improve efficiency. Various inquiries have noted that office space per employee has not decreased significantly over time, that office space per employee is significantly larger in the public sector than in other sectors of society and that government agencies with office premises have reduced costs of premises only to a limited extent.

3. Risk of deficiencies in governance, follow-up and reporting

In this chapter, we present current and planned audits that concern risks of deficiencies in governance, follow-up and reporting. We describe risks that may give us reason to examine transfers and powers to place orders, and risks related to fee-based and multi-funded activities. We also address risks related to central government assets, recognition of liabilities and loans, and risks linked to complex accounting rules. In addition, we describe audits that concern risks within defence, the judiciary, sustainable development, education and skills supply.

3.1 Risk of misstatements related to transfers

Transfers refer to the conveyance of funds, such as grants and support, from the central government to other bodies. For some fifty government agencies, the Swedish National Audit Office considers that there is a high risk of misstatement in the annual report associated with transfers. These include large government agencies such as the Swedish Public Employment Service, the Swedish Social Insurance Agency and the Swedish International Development Cooperation Agency, but also county administrative boards and cultural agencies.

The risk of incorrect reporting of transfers may be due to:

• extensive or complex regulations that govern grants, with government agencies’ decisions sometimes being based on subjective assessments of to whom grants should be awarded
• the fact that the government agency processes several different grant types, for which both regulations and handling procedures may differ
• major IT dependencies in processing and payment processes.

The Swedish National Audit Office examines both the government agency’s compliance with prevailing rules and whether the funds have been correctly reported. This often means that we audit the government agencies’ procedures for both deciding on and following up on the grants. When regulations are designed such that subjective assessments are needed, it is important that procedures and processes are clear and guide administrators to make uniform assessments. When dependence on information technology is high, it is important that the systems operate as intended, as errors may otherwise arise that can become systematic.

3.2 Risk of errors related to powers to place orders

For government agencies to perform their remits, they may need to make financial commitments that extend over several years. Numerous government agencies therefore have powers to place orders linked to their appropriations, which means that they have the right to enter into commitments that entail expenditure in future budget years, thereby tying up part of their future appropriations. This primarily applies to appropriations for transfers and infrastructure investments.

For about fifteen government agencies, the Swedish National Audit Office considers that there is a high risk of error linked to powers to place orders. Some examples of such government agencies are the Swedish Energy Agency, the Swedish Agency for Economic and Regional Growth and the Swedish Transport Administration. This involves both a risk of government agencies exceeding their authorisation frameworks and a risk of accounting errors. Some of the reasons for risks are related to the large amounts involved, while manual processing of the commitments is still common. Some government agencies also need to make assessments to calculate commitments, which increases the risk of error. Another reason is a lack of clarity in the Government’s management of powers to place orders, which leads to ambiguities at the government agencies, which can in turn lead to accounting errors.

The Swedish National Audit Office examines that all outstanding commitments are reported, that they are accounted for in the correct amount and that the government agencies have not exceeded the allotted frameworks for their powers.

Support for broadband expansion

For several years, the Swedish Post and Telecom Authority has received appropriations to pay out support for the expansion of broadband in Sweden. This year, the Authority’s authorisation framework for awarding grants is significantly larger than before, and the Authority has also developed a new process for issuing support. These changes mean that the Swedish National Audit Office will expand its audit of the Authority’s authorisation reporting.

3.3 Fee-based activities pose a high risk of misstatement

Many government agencies finance parts of their activities with fees. The Swedish National Audit Office checks that the government agencies adhere to the financial targets for the fee-based activities, that all income is reported and that it is reported correctly.

The economic objective of fee-based activities is full cost coverage, unless otherwise decided by the Riksdag or the Government. This means that government agencies are to calculate fees so that, in the long term, revenues cover all costs.

Several different risks linked to fee-based activities

For some forty government agencies, the Swedish National Audit Office considers that there is a high risk of misstatement linked to fee-based activities, in different ways.

For several government agencies, the Swedish National Audit Office considers that there is a risk of failing to achieve full cost coverage for their activities, which may lead to major surpluses or deficits. The Swedish National Audit Office has noted that the Government’s decisions on fees – in ordinances or appropriation directions – in some cases can lead to interpretation issues for government agencies unless the decision also specifies whether or not the general rule of full cost coverage applies.

There are also other risks within fee-based activities that can lead to material misstatements in the annual report. For example, it may relate to how the government agency allocates its costs, or a complex model for calculating its fees. Some government agencies also have several different types of fees or manual steps for processing their fees, which may also increase the risk of error.

Fee-based services for companies

The Swedish National Audit Office has repeatedly seen problems whereby government agencies amass significant surpluses over time from fee-based services that should report a zero balance, according to the regulations. Therefore, we are auditing how efficiently different government agencies manage fee-based services for companies. Central government agencies annually charge just over SEK 20 billion in fees under public law to finance their services, such as permits, certifications and supervision. These are fees that companies and individuals are required to pay. It is important that these services are produced efficiently, contribute to well-functioning markets and that the companies paying the fees have confidence in the government agencies that provide the services. It is the government agencies that set the fees, and the fee revenues are at their disposal.

3.4 Multi-funded activities entail various risks

Government agencies’ activities are often financed by several sources of funding, such as appropriations, grants and fees. We audit these from different perspectives and using different methods.

Unclear terms and conditions for appropriations, and mixed funding

Appropriations are usually subject to financial terms and conditions that may be both extensive and ambiguous. These include temporary appropriations that the government agencies may use for special purposes, or the possibility of financing administrative costs with targeted appropriations. A government agency with multi-funded activities or funding subject to financial terms and conditions needs to have clear procedures to ensure that appropriations and other revenue are properly used and finance the right costs.

For some forty government agencies, the Swedish National Audit Office considers that there is a high risk of misstatement in the annual report linked to the government agencies having mixed funding or extensive or ambiguous appropriation terms and conditions. In these cases, we audit whether the government agencies use and report appropriations and other revenue correctly.

Exceeded appropriation credit

There is also a risk of government agencies exceeding their allotted appropriation credit. In some cases, we consider this risk to be high. This may be because the government agency has a complex financing structure or strained finances. The Swedish National Audit Office examines whether the government agencies keep within the limits decided by the Government.

3.5 We audit central government assets from different perspectives

Material assets is another area in which there is a high risk of material misstatement in annual reports. The central government owns substantial assets, such as infrastructure and real estate.

The Riksbank manages a large volume of assets and we see risks related to asset valuation and recognition. Asset management affects the Riksbank’s entire balance sheet and income statement and will be included in the Swedish National Audit Office’s audit.

Valuation, recognition and efficiency of central government assets

Some government agencies, such as the Swedish Armed Forces, the Nationalmuseum, the Swedish Transport Administration and the National Property Board, acquire and manage assets to large amounts. These mainly involve non-current assets such as infrastructure, contingency assets and real estate, as well as cultural assets.

For these government agencies, the Swedish National Audit Office considers that there are risks linked to the valuation of the assets and recognition of ongoing investments. The Swedish National Audit Office focuses its auditing on the risks that are relevant to the government agency in question.

The Government controls the National Property Board using a yield requirement, and the properties must be leased on a commercial basis. We have initiated an audit that examines whether the Swedish National Property Board conducts efficient management of central government real estate holdings and whether the Government exercises efficient governance in this area. In 2023, real estate owned by the National Property Board, the Swedish Fortifications Agency and Akademiska Hus were valued at approximately SEK 152 billion. In addition, major parts of the real estate portfolio have a high cultural heritage value and are important to preserve for future generations.

3.6 Recognition of liabilities and loans is associated with a risk of misstatement

Some government agencies report and manage large debts. This includes the central government debt reported by the Swedish National Debt Office and pension liabilities reported by the Swedish Pensions Agency and the National Government Employee Pensions Board. Central government debt management involves many transactions and a number of financial instruments, which increases the risk of misstatements in the annual report.

Concerning pension liabilities, we need to take into account complex accounting rules, since the liabilities are recognised as actuarial provisions. The same applies to guarantees issued by the central government through the Swedish National Debt Office, the Swedish Export Credit Agency and the National Board of Housing, Building and Planning. Insurance accounting often features large components of estimates and advanced calculations made in complex IT systems. For government agencies with this type of activity, the risk of misstatement in the annual report is therefore often high. Since these calculations form the basis of fees and provisions in the annual report, we focus our auditing on the calculations.

The Swedish Board of Student Finance reports liabilities and receivables linked to student loans amounting to large sums. The Swedish National Audit Office considers that there are risks in the valuation of items such as the provision for loan losses and therefore often focuses its audit on valuation.

3.7 Complex accounting rules increase the risk of error

Insurance accounting is complex and often involves a higher risk of misstatement in the annual report. Insurance accounting affects several different parts of the annual report and is included in the audit.

Another area with complex regulatory frameworks is the processing of EU funds by government agencies such as the Swedish Board of Agriculture and the Council of the European Social Fund in Sweden. This accounting also affects several different parts of the annual report and is therefore included in the Swedish National Audit Office’s audit of government agencies.

3.8 Risks within defence and the judicial system

The Swedish National Audit Office is currently examining whether central government efforts within contingency planning and capability-enhancing measures in civil defence are effective. Due to the worsening state of security in Europe, in 2015 the Government decided to resume planning for total defence, of which civil defence is an important part. It involves the ability to protect the lives and health of the population, maintain essential services such as energy supply, transport and health care, and support the Swedish Armed Forces.

The worsening state of security and the heightened threat against Sweden have also led to the expansion of the Swedish Security Service. For this reason, we are auditing whether the government agency’s activities are being conducted efficiently.

In previous audits of the Swedish Police Authority, the Swedish National Audit Office has seen recurring problems related to governance and follow-up of activities. We have therefore initiated an audit of whether the Swedish Police Authority has achieved the intentions of the 2015 police reform.

3.9 Audits to achieve climate and sustainability objectives

The central government assumes an important role for Sweden’s ability to efficiently achieve the climate and environmental objectives set out by Sweden and the EU. Sweden has also adopted goals for sustainable development in other areas. The Swedish National Audit Office is now conducting the following audits in this area:

• We are examining whether the Government and the state-owned enterprise LKAB acted according to a business logic in the planned reorganisation of the company. LKAB is planning to transition its activities into a climate-neutral state by shifting to the production of sponge iron using fossil-free hydrogen gas. A complete transformation of its operations would require investing hundreds of billions of Swedish kronor and there are risks of profitability shortcomings. If the investments fail, the central government will have to face the consequences in the form of reduced dividends and capital losses.
• We are auditing the Government’s work to implement the 2030 Agenda. The Riksdag has adopted a goal for the implementation of the 2030 Agenda aimed at sustainable development that encompasses economic, social and environmental dimensions. It affects almost all policy areas.

We have also initiated audits concerning:

• whether central government measures for the climate transition of the agricultural sector have been effective. Agriculture accounts for about 14% of Sweden’s greenhouse gas emissions, but this is not decreasing to the same extent as in other sectors.
• central government efforts concerning environmental accidents at sea. Such accidents are costly to deal with. At the same time, the risk of accidents has increased, since several of the ships operating in the Baltic Sea are old, environmentally hazardous, have unclear ownership and lack insurance.
• whether central government efforts concerning international climate initiatives are effective. International climate measures form a supplementary measure that, under the climate policy framework, can be used to achieve the Swedish climate goals. At the same time, there is criticism that efforts initiated in other countries have not led to lasting emission reductions.

3.10 Investments in public services and infrastructure

Sweden needs to ensure and develop important public services and infrastructure. In the past year, the Swedish National Audit Office has published audits of the maintenance of roads and railways through the formation of Svevia and Infranord. The Swedish National Audit Office is currently performing the following audits:

• We are examining whether central government measures related to bicycle traffic are effective. Research indicates that investing in bicycle traffic infrastructure can be economically efficient. The Riksdag has expressed a willingness to promote this mode of transport and the importance of a local and regional cohesion in bicycle traffic infrastructure. However, there are indications that these ambitions are not being translated into sufficiently effective measures.
• We are auditing central government governance, guidance and supervision of municipalities’ efforts in providing public water services. Many municipalities need to make major investments in basic public services, for example to secure access to water and sewerage systems. The central government has an important role to play in ensuring that municipalities fulfil their responsibilities, for example through supervision and by developing guidelines and providing guidance. There are indications of deficiencies in the county administrative boards’ supervision and that central government division of responsibilities is unclear.

3.11 Better education and skills supply

An education system and a labour market that function properly are important for Sweden’s prosperity and for the development and well-being of individuals. This requires effective governance by the central government within education and matching in the labour market.

Auditing preschool, compulsory school and upper secondary school

The Swedish National Audit Office audits central government governance of preschool, compulsory school and upper secondary school. In this area, we are currently performing the audits listed below.

• We are examining whether the Government, the National Agency for Education and the Swedish Schools Inspectorate are working effectively to achieve the goal of equitable preschool education. High-quality preschool education paves the way for lifelong learning and helps children to better manage their further studies. Under the Education Act, education in preschool must be equitable, but earlier audits show that the quality of preschools varies.
• We are examining whether the introduction of certification for teachers in 2011 has led to higher quality in teaching, greater attraction to the teaching profession and better due process of the law for children and pupils. That was the purpose of introducing certification for teachers.

We have also initiated an audit of whether school authorities effectively ensure that education rests on a scientific basis. Under the Education Act, education must be founded on a scientific basis and tried-and-tested experience, but criticism has been levelled at the scientific basis in teaching.

Long-term unemployment and attachment to the labour market

The Swedish National Audit Office is auditing whether the Swedish Public Employment Service works effectively to support people with disabilities that cause reduced working capacity. In the current recession, unemployment is rising, even though the employment rate is generally high. Long-term unemployment and a weak attachment to the labour market among certain groups pose a particular challenge, including for people with disabilities. The Swedish Public Employment Service is an important player for improving the labour market situation for this group, but there are some indications that the government agency’s processing is slow and passive.

Efficiency in higher education

For some occupations, there is great demand for labour, while the available workforce does not have the skills that employers are seeking. The central government has a broad responsibility for the provision of skills, for example through higher education programmes. In some programmes, there is a high proportion of drop-outs, while in other programmes, there is a fierce competition for places. Therefore, the Swedish National Audit Office is auditing the following:

• We are examining whether the central government is working effectively to reduce student drop-outs from higher education in shortage occupations. We place a special focus on programmes for compulsory school teachers, nursing and engineering, which have a high proportion of drop-outs.
• We are auditing the efficiency of admission to the police education programme, which struggles to fill the number of places.
• We are auditing the selection system for higher education institutions, as there are indications that it is not effective.

Higher education and foreign competency

The Swedish National Audit Office is auditing whether the system of admission and organisation for third-country students works effectively. One reason for recruiting students from other countries is to enhance the quality of higher education and to serve as a base for recruiting to continued research and employment in Sweden. Foreign competency can also meet some of the labour market needs. However, numerous problems have been highlighted regarding admissions and recruitment of third-country students. This includes the fact that higher education institutions have incentives to recruit third-country students without making sufficient demands on necessary prior knowledge. There are also indications that residence permits for studies are used to circumvent the rules for labour immigration. In addition, long processing times at the Swedish Migration Agency can impede recruiting qualified students.

3.12 Effective supervision and control

Effective supervision and control ensure that public sector activities comply with applicable legal requirements and other binding regulations, and that errors and irregularities are detected and managed. This is important for achieving good quality in various public services, reducing costs, counteracting mismanagement of resources and ensuring confidence in public sector activities.

The Swedish National Audit Office has repeatedly observed deficiencies and low achievement of objectives in central government supervision and control, for example in an audit of incorrect disbursements related to foreign income. That is why we are currently auditing:

• the effectiveness of controls concerning who should be included in Swedish social insurance coverage related to international mobility.
• supervision of medical devices.

We have also initiated an audit of how the Health and Social Care Inspectorate processes individuals’ complaints about health and medical care.

4. Risk of deficiencies in organisation, responsibility and coordination

In this chapter, we present current and planned audits that concern risks of deficiencies in organisation, responsibility and coordination. Here, we describe risks related to development cooperation policy, central government work on digitalisation and shortcomings in coordination for a society for all. Finally, we also address risks associated with government agencies’ procurement and risks related to coordination and organisation in migration policy.

4.1 Changing development cooperation policy

During certain periods, specific policy areas are reformed. In 2024, for example, development cooperation policy has changed, leading to amended strategies, reallocation of appropriations and budget cuts that have affected the Swedish International Development Cooperation Agency. The Agency’s Director General has initiated a major reorganisation at the end of 2024. The Director General has made it clear that the Agency will transition from being a development cooperation agency to an administrative authority. These circumstances affect both the Agency and the Swedish National Audit Office’s risk assessment.

Sweden’s international development cooperation is broken down into development cooperation and humanitarian assistance. The humanitarian assistance amounts to approximately SEK 10 billion per year and involves many actors both in Sweden and in partner countries. Our previous performance audits of Sweden’s development cooperation have noted shortcomings in assessments made prior to decisions on funds and follow-up of assistance measures. We have therefore initiated an audit to examine whether central government efforts related to humanitarian assistance are efficient.

4.2 We audit central government efforts within digitalisation

Sweden has high ambitions for the digitalisation of society. In recent years, the Swedish National Audit Office has audited several aspects of digitalisation, including central government governance of digitalisation and information security efforts in different sectors. Many government agencies view digitalisation as a way of streamlining their operations, for example in information management or to automate processing. However, digitalisation projects are often costly. We are therefore auditing the effectiveness of central government work on strategic digitalisation projects.

We are also examining how increased remote work at central government agencies affects the efficiency of their operations. While the transition has positive aspects, it has also led to challenges in conducting efficient activities and having a good working environment. For example, it may be more difficult for managers to lead remotely. Other aspects that may be adversely affected are knowledge transfer, communication and social relations.

4.3 Coordinating and organising for a society for all

In 2014, Sweden ratified the Council of Europe Convention on preventing and combating violence against women and domestic violence. However, there are indications that central government measures against economic violence are lagging. For this reason, we are now auditing central government measures to combat economic violence in close relationships.

A cross-disciplinary government commitment is to make society accessible to people with disabilities. Follow-ups show that the disability perspective has not had enough impact in the public sector and that government agencies do not fulfil their sectoral responsibility. We are examining whether central government measures to implement disability policy have been effective.

We are also auditing central government efforts to promote the national minority languages, recognised by the Riksdag – Finnish, Yiddish, Meänkieli, Romani Chib and Sami. This is due to indications that progress in supporting the languages is slow and that minority rights in the linguistic field are not always met.

We have also initiated an audit to examine whether central government efforts to tackle gambling problems is efficient. Gambling is associated with a risk of developing gambling problems, which in turn can lead to social, health and financial problems.

4.4 Terms and conditions of labour law in public procurement

The Swedish National Audit Office has initiated an audit of whether the Government and contracting government agencies have taken effective measures to ensure that people performing work under public procurements have good working conditions. EU Member States are required to take measures to ensure good working conditions in public procurements. In 2017, Swedish legislation was tightened and contracting government agencies are now obliged in some cases to set terms and conditions under labour law in their procurements.

4.5 Coordination and organisation in migration policy

The Swedish National Audit Office has initiated an audit to examine whether central government measures in detention activities are efficient. The Swedish Migration Agency and the Swedish Police Authority may decide that a person is to be taken into custody for the purpose of preparing or carrying out an enforcement of a decision on refusal of entry or expulsion. Deficiencies in organisation and coordination can lead to increased costs and affect due process.

We are also auditing the effectiveness of processing of citizenship cases. This examination is brought on by the fact that the Swedish Migration Agency’s average processing time for citizenship cases is over 500 days and has increased significantly over the past ten years.

5. Premises for the Swedish National Audit Office’s audit operations

In this chapter we describe the premises for our auditing operations within financial audit and performance audit based on legal provisions and international standards.

5.1 Remit and mandate of financial audit

The Swedish National Audit Office is to carry out financial audits of annual reports of the central government and agencies under the Government and the Riksdag.[8] This audit aims to assess whether the accounts and underlying documentation are reliable and the accounting records true and fair, and whether the administration by the management complies with prevailing agency regulations and special decisions.

The audit covers 226 annual reports, the majority of which relate to administrative agencies under the Government.

In the audit plan, we present areas where we consider that there is often a high risk of material misstatement and where the audit is then more extensive. However, a large proportion of financial audit resources are used to audit areas that have a lower level of risk, but which constitute material amounts. An example of such an area is the government agencies’ personnel costs, which are often assessed to have a low risk of material misstatement.

Audit implementation

Financial audit is performed in accordance with generally accepted auditing standards.[9] Generally accepted auditing standards for public sector audit are determined by the Auditor General, meaning essentially that, for its financial audit operations, the Swedish National Audit Office applies international standards as set out by the International Standards for Supreme Audit Institutions (ISSAI). Financial audit of performance reporting and other information in the annual reports complies with the Swedish National Audit Office’s internal policy documents, since there are no standards related to these areas.

Our audit is based on the risk of material misstatement in the annual report. This means that we focus our audit on items or information in the annual report where there is a high risk of misstatement, but also that we audit less risky areas if they involve material amounts.

If there are no significant changes in the government agencies’ activities from year to year, the audit focus often remains the same over time. New risks can arise and previous risks can subside in cases where government agencies receive new remits, new management or if there are external changes that affect the government agencies.

Every year, the financial audit performs a risk analysis and a materiality assessment of each agency. The purpose is to assess audit needs during the year and determine the most effective audit method. A higher risk of material misstatement leads to a more extensive audit.

Since the audit proceeds on the basis of risk of material misstatement, most of the audit normally focuses on major or complex items in the annual reports, which is often where there are material payment flows.

Important parts of the risk assessment include an analysis of the Government’s governance of the agency, the agency’s internal control environment and the processes that are material for the agency’s financial reporting in its annual report. The state of the agency’s internal governance and control may also affect the choice of audit method.

Over the course of the audit, we use various audit procedures to examine the agency’s internal control activities and financial flows. The audit is conducted throughout the year.

5.2 Remit and mandate of performance audit

The principal task of performance audit is to examine the implementation and outcome of central government activities and commitments. The purpose is to provide guidance on how central government efforts can be improved to generate greater benefit in relation to input of resources. The audits are also to provide the Riksdag with a basis for accountability.

Our performance audits are always focused on central government efforts. This means that we usually audit the Government and government agencies. We may also audit the operations of state-owned enterprises or foundations. In some cases, we may also audit the use of central government resources by enterprises, associations, municipalities and other entities. Finally, we have the mandate to audit the processing of unemployment benefit by the unemployment insurance funds.[10]

Audit implementation

The choice of audit topic and method is informed by Swedish legislation and international standards that have been developed by the member countries of the International Organisation of Supreme Audit Institutions (INTOSAI).[11] The audit must focus chiefly on prudent financial management, efficient use of resources and objective fulfilment.[12]

The Auditor General decides which audits are to be performed. Choice of audit is based on an analysis of efficiency problems of economic or principled significance in central government activities.

Performance audit is to provide added value for the Riksdag.[13] The Swedish National Audit Office’s constitutional mandate allows us to take a broader audit perspective than other actors. We give priority to audits of central government activities associated with material societal issues and areas that are of great importance to the central government budget from a principled or quantitative perspective. We strive to audit the most essential elements of each parliamentary committee area over a term of office.[14]

We frequently audit the entire chain of command for responsibilities in the central government; from the Government to the actor or actors that carry out various actions, and ultimately how the actions affect the business community and citizens. We can also audit several government agencies, implementing numerous different initiatives to help achieve objectives within an area, such as integration. The audits can also focus on activities that are not always particularly extensive at each individual government agency, but that have a highly significant combined outcome, such as procurement. Our audits can also draw attention to possible conflicting objectives within and between different policy areas.

The Swedish National Audit Office’s reports are quality assured internally and externally. External actors monitor our compliance based on various regulations and standards, while we ourselves have internal procedures for quality assurance. For example, draft reports are subject to factual examination by those most closely affected by the audit.

5.3 The audit is presented in several different ways

Each year, the Auditor General submits a report to the Riksdag containing the most important findings from the performance audit of the central government and observations in the government agencies’ annual reports.[15] We also publish an annual follow-up report that is to provide the Riksdag with a basis for assessing the outcome of our audit, and whether it has contributed to better central government activities. In addition, we continuously report the results of financial and performance audits in different ways and to different recipients.

Financial audits are reported in writing and verbally

On concluding a financial audit, the Swedish National Audit Office submits one auditor’s report per government agency to the Government or the Riksdag.[16] If there are material misstatements in the annual report, the Swedish National Audit Office issues a modified auditor’s report. A modified auditor’s report is often supplemented by an audit report that describes the misstatement and our recommended measures. The audit reports are sent to the government agencies’ management, with a copy to the Government, where relevant.

The Swedish National Audit Office also issues audit reports when there are significant deficiencies in internal governance and control, even if the deficiencies have not led to material misstatements in the annual report. In the audit report, we describe the deficiency and explain its possible effects. In its audit reports, the Swedish National Audit Office also gives recommendations to government agencies to take various measures to rectify the deficiencies. The Swedish National Audit Office follows up on the government agencies’ measures. Financial audits always report observations and recommendations verbally to the government agencies, in addition to written reporting.

Performance audit issues performance audit reports

Performance audit reports from performance audits are submitted to the Riksdag.[17] The Riksdag forwards them to the Government. Within four months, the Government must report to the Riksdag, giving an account of the measures it has taken or intends to take in response to the observations of the report.[18]

The Swedish National Audit Office generally includes recommendations in its performance audit reports. The recommendations are directed at the actors covered by the audit and aim to promote effectiveness and efficiency in the audited activities. We can also issue recommendations with suggestions as to how the intended outcome can be achieved with alternative initiatives.[19]

Annex 1. Ongoing performance audits

Ongoing performance audits are presented below as at 31 October 2024. The estimated year of publication is given in brackets. Both title and year of publication are subject to change.

Audits relating to a single Riksdag Committee

Riksdag Committee on the Labour Market

See audits relating to multiple Riksdag Committees.

Riksdag Committee on Civil Affairs

• Central government initiatives for access to public water and sewerage systems (2025)

Riksdag Committee on Finance

• Government agencies’ remote work (2024)
• Application of the fiscal policy framework (2024)
• Central government work on the 2030 Agenda (2025)
• Central government real estate management (2025)
• Central government office premises (2025)
• Temporary general government grants as a fiscal policy crisis measure (2025)

Riksdag Committee on Defence

• Civil defence (2025)

Riksdag Committee on Justice

• Implementation of the police reform (2025)
• The Swedish Security Service’s activities (2024)

Riksdag Committee on the Constitution

• Promotion of the national minority languages (2025)

Riksdag Committee on Cultural Affairs

See audits relating to multiple Riksdag Committees.

Riksdag Committee on Environment and Agriculture

• The climate policy framework (2025)
• International climate initiatives (2025)
• Climate transition in agriculture (2025)

Riksdag Committee on Industry and Trade

• The transformation of LKAB (2025)

Riksdag Committee on Taxation

• The Swedish Tax Agency’s efforts to combat undeclared work (2025)
• Central government initiatives in connection with estate administration (2025)
• Temporary deferral of tax payment (2025)

Riksdag Committee on Social Insurance

• Detention activities (2025)
• The Swedish Migration Agency’s processing of citizenship cases (2025)

Riksdag Committee on Health and Welfare

• Implementation of disability policy (2024)
• Central government supervision of medical devices (2024)
• The Health and Social Care Inspectorate’s complaints process (2025)
• Central government initiatives concerning dental care (2025)

Riksdag Committee on Transport and Communications

• Prerequisites for bicycle traffic (2025)

Riksdag Committee on Education

• Drop-outs from higher education (2024)
• Equivalence in preschools (2024)
• The education system for third-country students (2024)
• Teacher certification (2025)
• The scientific basis of schooling (2025)
• The admissions system for higher education programmes (2025)

Riksdag Committee on Foreign Affairs

• Sweden’s humanitarian assistance (2025)

Audits relating to multiple Riksdag Committees

Riksdag Committee on the Labour Market, Riksdag Committee on Civil Affairs, Riksdag Committee on Justice, Riksdag Committee on Social Insurance and Riksdag Committee on Health and Welfare

• Central government initiatives to combat economic violence in close relationships (2025)

Riksdag Committee on the Labour Market and Riksdag Committee on Finance

• Labour law conditions in public procurement (2025)

Riksdag Committee on the Labour Market and Riksdag Committee on Health and Welfare

• Labour market policy related to people with disabilities (2025)

Riksdag Committee on Finance and Riksdag Committee on Industry and Trade

• Government agencies’ fee-based services for companies (2025)

Riksdag Committee on Defence and Riksdag Committee on Justice

• Admission to the police education programme (2025)

Riksdag Committee on Defence and Riksdag Committee on Transport and Communications

• Environmental accidents at sea (2025)

Riksdag Committee on Social Insurance and Riksdag Committee on Taxation

• Social insurance in connection with international mobility (2025)

Riksdag Committee on Health and Welfare and Riksdag Committee on Cultural Affairs

• Central government efforts to address problems with gambling (2025)

Riksdag Committee on Transport and Communications and Riksdag Committee on Social Insurance

• Strategic digitalisation projects in the central government (2025)