During the reign of King Frederick IV, a magnificent administration building was constructed in 1716-21 next to the palace adjacent to the Supply Depot. This new building was to house the chancelleries, thus replacing the previous chancellery building situated by the canal. The new chancellery building was connected to the castle by an arched passageway, thus allowing the king to stay in close contact with his government. The Chancellery Building (also known as the "Red Building" or the "Building of Colleges") has functioned as the heart of the central administration for almost 300 years, and is today used by the Ministry of Finance.