The financial statement for The Royal Civil List includes the Parliamentary allowance for The Queen, Prince Henrik and Princess Benedikte and associated expenses.

Accounting principles used

General

The annual statement is presented in accordance with the Danish Financial Statements Act’s provisions for accounting Class A enterprises with additional choice of specific provisions for accounting Class C enterprises.

The annual report is presented in accordance with the same accounting principles as last year.

General re: inclusion and measuring

Assets are included in the balance when, as a result of a past event, it is probable that future economic benefits will accrue and the asset’s value can be measured reliably.

Liabilities are included in the balance when they, as a result of a past event, are legal or actual liabilities and it is likely that future economic benefits will be deducted, and the liability can be measured reliably.

At the initial recognition, assets and obligations are measured at the cost value. Subsequent measuring takes place as described for each individual account item below.

The inclusion and measuring take into account risks and losses which result before the annual report is presented and which strengthen or weaken the situation that existed on the reporting date.

Revenues are included in the final report as they are earned, while expenses are included with the amount pertaining to the financial year.

Final report

Parliamentary allowance

The final report includes the Parliamentary allowance pertinent to the financial year. The Parliamentary allowance is paid out by the state monthly in advance. Under the terms of current law, 10% of the Parliamentary allowance goes to Prince Henrik and 1.5% to Princess Benedikte.

Other revenue

Other revenue includes income from the leasing of service buildings, admission fees from tours at Fredensborg Palace and fees related to the distribution of medals of reward.

Personnel expenses

Personnel expenses include salaries and wages as well as pension contributions and pensions, etc. which are paid to The Queen and Prince Henrik’s and Princess Benedikte’s employees and temporary workers. Furthermore, personnel expenses include courses, uniforms and health insurance as well as liability and accident insurance.

The Court’s operational expenses

​​The Court’s expenses include costs for The Queen and Prince Henrik’s official duties, including state visits, festive theatrical performances, operation of vehicles, the keeping of horses, travel, etc. Furthermore, The Queen’s contribution to the Chapter of the Royal Danish Orders of Chivalry and expenses for Princess Benedikte’s official duties are included, except for wages and salaries, which are included under personnel expenses.

The Court’s administrative expenses

Administrative expenses include The Queen and Prince Henrik’s costs for the administration of the Court, including office expenses, insurance, consulting services, IT operation, legal advice, accounting, subscriptions, etc.

Property expenses

Property expenses include The Queen and Prince Henrik’s expenses for interior maintenance of the castles and palaces, which rest with The Queen under the terms of the Civil List law. The property expenses further include costs for heating and electricity as well as cleaning and window washing done by outside contractors.

Expenditure cap for The Queen and Prince Henrik

Of the Parliamentary allowance received for The Queen and Prince Henrik, a fixed share is allocated as an expenditure cap for The Queen and Prince Henrik for internal apportionment. The amount is used for, among other things, clothing, furnishings, other private expenses, advising and secretarial assistance of non-official character as well as maintenance costs and operational costs at Marselisborg Palace, the Trend Skov Hunting Estate and the residence at Chateau de Cayx. The amount is also used for operational expenses connected with stays at Gråsten Palace.

Financial items

Financial income includes interest on cash deposits and interest on bonds as well as dividends from trust certificates. Financial costs include value adjustments of securities.

The balance

Fixed assets

Entered at cost minus accumulated write-offs and write-downs. Vehicles and machines are primarily written off for depreciation in a linear manner in relation to the expected salvage value after 5-8 years. IT systems are written off linearly over eight years, while investments in IT equipment are written off over five years. Refurbishment of buildings for workshops and laundry facilities is written off linearly over fifteen years. The accounting value of fixed assets is evaluated annually for signs of decreasing value other than what is expressed by depreciation. If there are indications of decreasing value, a write-off of the specific asset to the expected net selling price is carried out.  

Receivables 

Receivables are included at the nominal value.

Accruals

Accruals include incurred costs relating to subsequent financial years.

Securities

Securities include stock exchange-listed bonds and investment trust certificates, which are included at the market price on the date of the balance sheet. Drawn bonds are included at par rate.

Liquid cash

Liquid cash includes cash in hand and deposits in financial institutions.

Debt obligations

Debt obligations are measured at the net realisation value.

Certification

Certification of the annual report of The Royal Civil List

We have on (day’s date) read and approved the annual report for the financial year 1 January 2016 - 31 December 2016 for The Royal Civil List.

The annual report is presented in accordance with the Danish Financial Statements Act.

It is our view that the annual report gives an accurate and fair picture of the assets, debts and financial situation as of 31 December 2016 and of the result of the activities for the financial year 1January 2016 – 31 December 2016.

The section of the report concerning The Royal Civil List contains, in our view, an accurate and fair statement of the matters the report deals with.

Amalienborg, the 24 April 2017

The independent auditor’s report

To Her Majesty The Queen and His Royal Highness Prince Henrik

Conclusion

We have audited the annual report of The Royal Civil List for the financial year 1January 2016 – 31 December 2016, which covers the final statement, balance and notes, including the accounting principles used. The annual report is prepared in accordance with the Danish Financial Statements Act.

It is our view that the annual report provides a true and fair picture of The Royal Civil List’s assets, debts and financial situation as of 31 December 2016 and of the result of the activities of The Royal Civil List’s activities for the financial year 1 January 2016 – 31 December 2016 in compliance with the Danish Financial Statements Act.

Basis for conclusion

We have carried out our audit in accordance with international standards for auditing and the additional requirements applicable in Denmark. Our responsibilities pursuant to these standards are described further in the audit report section “Auditor’s responsibility for the audit of the annual accounts”. We are independent of The Royal Civil List in accordance with the international ethics rules for auditors (IESBA’s Ethics rules) and the additional requirements applicable in Denmark, just as we have fulfilled our other ethical duties in compliance with these rules and requirements. It is our view that the audit evidence obtained is sufficient and appropriate as a basis for our conclusion.

Management’s responsibility for the annual report

The management has the responsibility for preparing an annual financial statement which provides an accurate and fair picture in compliance with the accounts act. Furthermore, the management has the responsibility for the internal controls the management considers necessary for preparing a financial statement without significant misinformation, whether due to fraud or errors.

With the preparation of the annual statement, the management is responsible for evaluating the ability to continue operation, to inform about the situation concerning continued operation when this is relevant, and to prepare the financial statement on the basis of the management’s expectations for continuing operation.

Auditor’s responsibility for the examination of the annual statement

Our goal is to achieve a high degree of certainty that the annual statement on the whole is without significant misinformation, whether due to fraud or errors, and to submit a certification with a conclusion. A high degree of certainty is a high level of certainty but not a guarantee that an audit carried out in accordance with international standards on accounting and the additional requirements applicable in Denmark will always uncover significant misinformation when such exists. Such misinformation can arise due to fraud or errors and can be viewed as significant if it can reasonably be expected that they, separately or collectively, influence the economic decisions the users of the financial statement make on the basis of the annual accounts.

As part of an audit carried out in accordance with international standards on accounting and the additional requirements applicable in Denmark, we make professional evaluations and maintain professional scepticism during the audit. In addition to this:

• We identify and evaluate the risk of significant misinformation in the annual statement, whether due to fraud or errors, work out and implement auditing procedures as a reaction to these risks, and obtain audit evidence which is sufficient and appropriate to create the basis for our conclusion. The risk of not discovering significant misinformation brought about by fraud is higher than for significant misinformation brought about by errors in that fraud can include conspiracy, document falsification, conscious omissions, misrepresentation or neglect of internal controls.
• We obtain understanding of the internal controls relevant to the audit to be able to work out auditing procedures which are suited to the circumstances, but not to express a conclusion about the effectiveness of The Royal Civil List’s internal controls.
• We take a position on whether the accounting principles used by the management are suitable and whether the accounting estimates and associated information the management has prepared are reasonable.
• We conclude whether the management’s preparation of the annual statement on the basis of the accounting principle on continuous operation is suitable, and whether, on the basis of the auditing evidence obtained, there is significant uncertainty connected with events or circumstances which can create significant doubt about the ability to continue the operation. If we conclude there is significant uncertainty, we, in our audit certification, call attention to such information or, if the information is not sufficient, modify our conclusion. Our conclusions are based on the auditing evidence obtained up to the date of our audit certification.
• We take a position on the overall presentation, structure and content of the annual statement, including the information in notes and whether the annual report reflects the underlying transactions and events in such a way that an accurate and fair picture hereof is provided.

Among other things, we communicate with the top management on the planned extent and timing of the audit as well as significant audit-related observations, including possible significant deficiencies in internal controls, which we identify during the audit.

Statement about the report

The management is responsible for the report.

Our conclusion about the annual statement does not include the report, and we express no type of conclusion with certainty about the report.

In connection with our examination of the annual statement, it is our responsibility to read the report and, in this connection, consider whether the report is significantly inconsistent with the annual statement or our knowledge obtained through the audit or in another way appears to contain significant misinformation.

In addition to that, it is our responsibility to consider whether the report contains the information required under the terms of the Danish Financial Statements Act.

Based on the work done, it is our view that the report is in keeping with the accounts act and has been prepared in conformity with the requirements of the accounts act. We have found no significant misinformation in the report.

Copenhagen, the 24 April 2017


Deloitte
State Certified Auditing Firm
CVR no. 33963556

The annual statement covers the annuities for The Crown Prince and The Crown Princess.

Accounting priniciples used

General

The annual statement is presented in accordance with the Danish Financial Statements Act’s provisions for accounting Class A enterprises with additional choice of specific provisions for accounting Class C enterprises.

The annual statement is presented in accordance with the same accounting principles as last year.

General re: inclusion and measuring

Assets are included in the balance when, as a result of a past event, it is probable that future economic benefits will accrue and the asset’s value can be measured reliably.

Liabilities are included in the balance when they, as a result of a past event, are legal or actual liabilities and it is likely that future economic benefits will deducted, and the liabilities can be measured reliably.

At initial recognition, assets and obligations are measured at the cost price. Subsequent measuring takes place as described for each individual account item below.

The recognition and measuring take into account risks and losses which result before the annual report is presented and which strengthen or weaken the situation that existed on the reporting date.

Revenues are included in the final report as they are earned, while expenses are included with the amount pertaining to the financial year. 

The final report

Annuity

The final report includes the annuity pertinent to the financial year. The annuity is paid out by the state monthly in advance. Under the terms of current law, 10% of the annuity goes to The Crown Princess.

Personnel expenses

Personnel expenses include salaries, regulation of holiday pay obligations, pension contributions, pensions, etc. Furthermore, personnel expenses include costs for courses and uniforms as well as liability, health and accident insurance.

The Court’s operational expenses

These include expenses for the Crown Prince Couple’s official duties, travel, operation of vehicles, etc.

The Court’s administrative expenses

These include expenses for administration of the Court, including office expenses, insurance, consulting services, IT operation, legal advice, accounting, subscriptions, etc.

Property expenses

Property expenses include expenses for interior maintenance and refurbishment of the properties, which under the terms of the Civil List law rest with The Queen and which are made available to the Crown Prince Couple by The Queen. The property expenses further include costs for heating and electricity as well as cleaning and window washing done by outside contractors.

Depreciations

These include write-offs and write-downs as well as gains/losses from the sale of vehicles and IT equipment.

Expenditure cap for the Crown Prince Couple

Of the annuity received, a fixed share is allocated as an expenditure cap for the Crown Prince Couple. The amount is used for, among other things, clothing, furnishings and other expenses of a private character, including consulting and secretarial assistance which are not a part of the official work.

The BALANCE

Fixed assets

Reported at cost minus accumulated write-downs and write-offs. Vehicles are primarily written off for depreciation in a linear manner in relation to the expected salvage value over five years. Investments in IT equipment are written off over five years. The accounting value of fixed assets is evaluated annually for signs of decreasing value other than what is expressed by depreciation. If there are indications of decreasing value, a write-off of the specific asset to the expected net selling price is carried out. 

Receivables

Receivables are included at the nominal value.

Accruals

Accruals include incurred costs relating to subsequent financial years.

Liquid cash

Liquid cash includes cash in hand and deposits in financial institutions.

Debt obligations

Debt obligations are measured at the net realisation value.

Certification

Certification of the annual statement for The Crown Prince’s annuity

We have on (day’s date) read and approved the annual report for The Crown Prince’s annuity for the financial year 1 January 2016 – 31 December 2016.

The annual report is distributed in accordance with the Danish Financial Statements Act.

It is our view that the annual statement provides a true and fair picture of the assets, debts and financial situation as of 31 December 2016 and of the activities of the financial year 1 January 2016 – 31 December 2016.

The portion of the report concerning The Crown Prince’s annuity contains, in our view, a true and fair statement of the matters the report deals with.

Amalienborg, the 24 April 2017

The independent auditor’s report

To Their Royal Highnesses The Crown Prince and The Crown Princess

Conclusion

We have audited the annual statement of The Crown Prince’s annuity for the financial year 1January 2016 – 31 December 2016, which covers the final report, balance and notes, including the accounting principles used. The annual statement is prepared in accordance with the Danish Financial Statements Act.

It is our view that the annual statement provides a true and fair picture of the assets, debts and financial situation of The Crown Prince’s annuity as of 31 December 2016 and of the result of the activities of The Crown Prince’s annuity for the financial year 1 January 2016 – 31 December 2016 in accordance with the accounts act.

Basis for conclusion

We have carried out our audit in accordance with international standards for auditing and the additional requirements applicable in Denmark. Our responsibilities pursuant to these standards are described further in the audit report section “Auditor’s responsibility for the audit of the annual accounts”. We are independent of The Crown Prince’s annuity in accordance with the international ethics rules for auditors (IESBA’s Ethics rules) and the additional requirements applicable in Denmark, just as we have fulfilled our ethical duties in compliance with these rules and requirements. It is our view that the audit evidence obtained is sufficient and appropriate as a basis for our conclusion.

Management’s responsibility for the annual statement

The management has the responsibility for preparing an annual financial statement which provides an accurate and fair picture in compliance with the accounts act. Furthermore, the management has the responsibility for the internal controls the management considers necessary for preparing a financial statement without significant misinformation, whether due to fraud or errors.

With the preparation of the annual statement, the management is responsible for evaluating the ability to continue operation, to inform about the situation concerning continued operation when this is relevant, and to prepare the financial statement on the basis of the management’s expectations for continuing operation.

Auditor’s responsibility for the examination of the annual statement

Our goal is to achieve a high degree of certainty that the annual statement on the whole is without significant misinformation, whether due to fraud or errors, and to submit a certification with a conclusion. High degree of certainty is a high level of certainty but not a guarantee that an audit carried out in accordance with international standards on accounting and the additional requirements applicable in Denmark will always uncover significant misinformation when such exists. Such misinformation can arise due to fraud or errors and can be viewed as significant if it can reasonably be expected that they, separately or collectively, influence the economic decisions the users of the financial statement make on the basis of the annual accounts. As part of an audit carried out in accordance with international standards on accounting and the additional requirements applicable in Denmark, we make professional evaluations and maintain professional scepticism during the audit. In addition to this:

• We identify and evaluate the risk of significant misinformation in the annual statement, whether due to fraud or errors, work out and implement auditing procedures as a reaction to these risks, and obtain audit evidence which is sufficient and appropriate to create the basis for our conclusion. The risk of not discovering significant misinformation brought about by fraud is higher than for significant misinformation brought about by errors in that fraud can include conspiracy, document falsification, conscious omissions, misrepresentation or neglect of internal controls.
• We obtain understanding of the internal controls relevant to the audit to be able to work out auditing procedures which are suited to the circumstances, but not to express a conclusion about the effectiveness of the internal controls on The Crown Prince’s annuity.
• We take a position on whether the accounting principles used by the management are suitable and whether the accounting estimates and associated information the management has prepared are reasonable.
• We conclude whether the management’s preparation of the annual statement on the basis of the accounting principle of continuous operation is suitable, and whether, on the basis of the auditing evidence obtained, there is significant uncertainty connected with events or circumstances which can create significant doubt about the ability to continue the operation. If we conclude there is significant uncertainty, we, in our audit certification, call attention to such information or, if the information is not sufficient, modify our conclusion. Our conclusions are based on the auditing evidence obtained up to the date of our audit certification.
• We take a position on the overall presentation, structure and content of the annual statement, including the information in notes and whether the annual statement reflects the underlying transactions and events in such a way that an accurate and fair picture hereof is provided.

Among other things, we communicate with the top management on the planned extent and timing of the audit as well as significant audit-related observations, including possible significant deficiencies in internal controls, which we identify during the audit.

Statement about the report

The management is responsible for the report.

Our conclusion about the annual statement does not include the report, and we express no type of conclusion with certainty about the report.

In connection with our examination of the annual statement, it is our responsibility to read the report and, in this connection, consider whether the report is significantly inconsistent with the annual statement or our knowledge obtained through the audit or in another way appears to contain significant misinformation.

In addition to that, it is our responsibility to consider whether the report contains the information required under the terms of the Danish Financial Statements Act.

Based on the work done, it is our view that the report is in keeping with the accounts act and has been prepared in conformity with the requirements of the accounts act. We have found no significant misinformation in the report.

Copenhagen, the 24 April 2017


Deloitte
State Certified Auditing Firm
CVR no. 33963556