– We have informed the association that they will not receive money from us in the future. We don’t trust them, says department director Elise Husum in the Directorate of Health to news. For three months, the association behind the children’s hospice Andreas Hus in Kristiansand has been under scrutiny for how they have spent NOK 90 million. news revealed in October that large sums have been spent on handball advertising, design furniture and PR consultants. One week later, the Directorate of Health launched a comprehensive investigation of the association’s finances. Now the conclusion from the investigation is clear: Questions are being asked about the use of just over NOK 20 million. The findings are listed further down in this article. – The costs are far too high. They have done everything to maximize the subsidy and inflated the project costs in order to get the most out of a subsidy scheme, says Husum. She believes the report shows that the association has received far too much money. In October, news wrote that the association had spent close to one million state kroner on furnishing an apartment they own in Byhaven in Kristiansand. The Directorate of Health has concluded that the sum is 1.6 million for furnishing and refurbishing this apartment. Graphics: Henrik Bøe / news Demanding back several millions The Directorate of Health has notified the association that they will demand back part of the subsidy they have received over the past three years. – I assume we end up with a double-digit number of millions. We haven’t worked out the amount yet, because some of it is discretionary. – What do you think is the most serious thing that comes out? – That they have played tricks with the accounts. They have led things on projects that should have been led on the association. They also have very high consultancy costs, says Husum. Department director for subsidies in the Directorate of Health Elise Husum. Photo: Directorate of Health – What do you think that they have played a trick with the accounts? – It is highly objectionable. They have received money that they should not have received. The association must respond to the notice of repayment by 10 February. Husum says they will not make a decision until they have received this feedback. Chairman Ansgar Gabrielsen of FFB does not want to make a statement until after the board meeting which the association will have on Thursday morning. Secretary General Natasha Pedersen has not responded to news’s inquiries. The Norwegian Directorate of Health and auditors from PwC inspected Andreas Hus in Kristiansand in November. Photo: John-André Samuelsen / news May have earned money from grants Auditors from PwC have gone through accounting documents, account statements, customer agreements and possible bindings. – It gives the impression that the spending of money must occasionally be said to be perceived as being in the upper echelon of what can be categorized as reasonable and necessary, the report states. In the report from PwC, several findings are described as objectionable: PR and advertising: In total, the association has spent just over NOK 16 million on PR, marketing, advertising and consultants. news has previously calculated that this sum was just over 14 million, but it turns out to be higher. “There is reason to question whether the reasonableness requirement has been fully complied with,” writes PwC. Renovation of own apartment: The association has spent NOK 1.6 million on furnishing and refurbishing an apartment they own in Byhaven in Kristiansand. PwC believes this is objectionable. They also question whether the apartment can be partly financed through government grants. Sponsorship of Vipers: The association has spent just over NOK 680,000 on Vipers, something that news has also previously mentioned. PwC believes this is objectionable, and emphasizes that this should not have been carried out. Rent: The association has spent more than NOK 200,000 on paying rent to itself. They believe the amount should have been lower, and point out that NTNU was invoiced after use of the apartment in December 2022. “This appears incorrect, if the project pays rent for the apartment first”. Office premises in Tollbodgata: PwC questions whether it is correct that 1.2 million from the Andreas Hus money went to pay rent in the association’s former premises in Tollbodgata in Kristiansand. An internal invoice of just over NOK 600,000: PwC believes the association has wrongfully transferred these funds to its own finances. NOK 1.2 million in “unreported refunds and cost reductions”: Money that has gone to the association’s own finances. Plants: Around NOK 100,000 in government grants have been spent on plants for the association’s premises. Altogether, this amounts to just over NOK 20 million. – PwC does not question whether parts of these expenses should have been charged to the project. In contrast, it appears unreasonable that everything was charged to the project, says the report. May be relevant with notification In the last two years, only two organizations have received a claim for repayment as a result of incorrect use of money. The Directorate of Health has previously stated this following questions from news. Husum believes that the internal control routines have not been in place. – It is not often that we see errors as gross as this. I am very surprised that this has not been discovered either by the board or by the auditor, she says. Natasha Pedersen is secretary general of the Association for Child Palliation (FFB), which is now receiving criticism for how they have used the money from the state. Photo: JOHN-ANDRE SAMUELSEN / news The association can be reported to the police for misuse of money. This has never happened before, according to the Directorate of Health. – Are you considering reporting the association? – We have considered that we will demand repayment now. We will consider any notification at a later date, says Husum in the Directorate of Health. In the past, the association has been promised NOK 30 million a year from the state budget. They lost this ear tag in the autumn. The association applied for NOK 30 million for 2023. Hello! Did you think of anything in particular when you read this story? Or do you have tips on something else we should write about? Feel free to send us an email!
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The association for children’s palliation must pay back several millions after incorrect spending – news Sørlandet – Local news, TV and radio
