In its comments on the 2025 financial statements, the municipal administration describes a financial situation lacking oversight, an IT security system that is “extremely vulnerable and outdated,” and a cost-cutting plan that has cut into the services citizens are legally entitled to receive.
It is not a critical auditor who is painting a bleak picture of Kommune Kujalleq’s finances. It is the municipality’s own administration.
In the explanatory notes to the 2025 financial statements, which the municipal council will consider on Wednesday, the administration states that the municipality is unable to present the investment plans and multi-year budget estimates required by law.
“A realistic budget requires a complete overview of the municipality’s finances and sound financial management. Both of these are lacking in the Municipality of Kujalleq,” the administration writes.
The financial statements show a surplus of 14.8 million DKK. At the same time, operating expenses exceeded the budget by 36.8 million DKK. According to the administration, the surplus does not reflect actual operations because expenses were posted to the wrong accounts. The municipality’s cash and accounting regulations date from 2011 and have never been updated.
The administration also states that the previous cost-cutting plan has led the municipality to disregard its legal obligations and has resulted in a significant deterioration in the services to which residents are entitled. Furthermore, the layoffs mean that the municipality cannot carry out all the internal controls recommended by the audit.
The auditing firm BDO assesses that the municipality’s IT security is managed satisfactorily. The administration disagrees.
“The municipality’s IT security is extremely vulnerable and outdated,” the administration writes.
The administration nevertheless recommends approving the financial statements, but with a clear caveat: Approval merely means that revenues and expenses are in balance, and does not imply that the municipal council is taking a position on the overall financial situation.
