United Nations Economic Commission for African Centre for

United Nations Economic Commission for African Centre for Statistics Administrative data sources EN/ADM/2014/Pres/08 Clementina Ivan-Ungureanu Expert Group Meeting on the Use of Administrative Data in National Accounts 23 -27 June 2014 Kigali, Rwanda

Content of the presentation • • • Objectives and scope of the Guidebook Need for the Guidebook Data sources for compiling national accounts Administrative data Administrative statistics to national accounts African Centre for Statistics

Objectives and scope of the Guidebook • The main objective has been to bring together African country experiences and practices on use of administrative data in the compilation of national accounts. • It aims to include only the main types of administrative data such as the financial accounts and statements of government, non-financial corporations, financial corporations (central bank, commercial banks, life insurance and non-life insurance companies), tax data, customs records and balance of payments (Bo. P) statistics. African Centre for Statistics

Need for Guidebook • Administrative sources constitute a key component in national accounts compilation in most countries. • Data from administrative sources is generally available, cost effective and can be efficiently used to improve the national accounts and implement 2008 SNA. • Intended to present at one place the best African country practices in each of the major types of administrative statistics. African Centre for Statistics

Structure of the guidebook • Chapter 1: Introduction provides a brief description of objectives, scope and contents of the Guidebook and also discusses the advantages in using administrative data in the compilation of national accounts. Chapters 2 to 8 deal with a range of administrative statistics and their translation to national accounts. • Chapter 2 is on government accounts, • Chapters 3 and 4 deal with financial and non-financial corporations. African Centre for Statistics

Structure of the guidebook (cont. ) • Chapters 3 and 4 deal with financial and nonfinancial corporations, respectively • Chapter 5 discusses the transition from balance of payments statistics to national accounts. • Chapter 6 and 7 concern the value added tax and income tax respectively. • Country specific uses of administrative statistics are presented in Chapter 8. African Centre for Statistics

Data sources for compiling NA • NA use a large number of data sources that include censuses and surveys; administrative statistics; records held by businesses or industry associations; and, a large number of other ad hoc sources. • Data sources vary considerably among the developing countries mainly on account of the administrative structure, procedures and rules, internal priorities, availability of resources, and economic and political situation prevailing in those countries. African Centre for Statistics

Statistical sources Two main categories: 1. Censuses 2. Surveys • A survey is an investigation about the characteristics of a given population by means of collecting data from a sample of that population and estimating their characteristics through the systematic use of statistical methodology. • A census is a survey conducted on all members of the population instead of just a sample. African Centre for Statistics

Statistical sources ( cont) advantages (+) and disadvantages (-): • Census: enumerate the whole target population – Complete , detailed and specific information (+) – Time consuming, costly (-) • Sample survey: enumerate part of target population – Fast, cheap (+) – Incomplete information of target population (-) African Centre for Statistics

Census • Agricultural census; the observation unit is the agricultural holding, which is the techno-economic unit of agricultural production • Economic census : the observation unit is the nonagricultural establishment with a fixed structure (size) and location characterized by a unique economic activity. • Population census: the observation unit is the household and the person. African Centre for Statistics

Surveys Whereas a census is carried out infrequently, e. g. once in ten years, a survey is carried out frequently, once a year, or even every quarter or month. There are four main categories of surveys relevant for national accounts: • Agricultural surveys • Business surveys • Price surveys • Household surveys • Mixed household-enterprise surveys. African Centre for Statistics

Administrative sources Definitions • Administrative sources are data holdings containing information which is not primarily collected for statistical purposes. Source: Using Administrative and Secondary Sources for Official Statistics: A Handbook of Principles and Practices, UNECE 2001 African Centre for Statistics

Definition • The administrative source is the register of units and data associated with an administrative regulation (or group of regulations), viewed as a source of statistical data. Source: Glossary of Statistical Terms, OECD, 2007 http: //www. oecd. org/dataoecd/9/20/1963116. pdf African Centre for Statistics

Examples of Administrative Sources • Accounts of Government containing revenue and expenditure details; • Accounts of businesses (financial and non-financial companies); • Databases and accounts of central bank; • Income tax data; • VAT data; • Customs statistics on imports and exports of goods; African Centre for Statistics

Examples of Administrative Sources (cont. ) • Statistics compiled by industry associations, research institutions and other professional bodies; • Other administrative statistics such as the building permits, hotel occupancy, electricity sales, sales of manufactured goods (computers, consumer durables, etc. ) indicators on postal and telecommunication, net tonne kms and passenger kms (road, water and air), cargo handled in ports, etc. ; • Social security records; • Employment registers. African Centre for Statistics

Advantages • They are ‘cheaper’ than other sources and oft en even free. • Provide complete, or almost complete, coverage of the population to which the administrative process applies. Very high response rates, no survey errors, providing more accurate and detailed estimates of sub-populations. • Timeliness of the statistical variables derived from administrative sources could be improved. • Reduce the response burden on businesses • They may increase business register quality, which are used for carrying out statistical surveys, thus improving their quality. African Centre for Statistics

Coverage • Administrative sources usually offer better coverage of target populations, and can make statistics more accurate: – No survey errors – No (or low) non-response. • Better coverage gives: – Better small-area data – More detailed information. African Centre for Statistics

Timeliness • Producing statistics from administrative sources can sometimes be quicker than using surveys • No need for: – forms design; – pilot surveys; – sample design etc. African Centre for Statistics

Disadvantages ACCESS Key barrier to the use of administrative data WAYS – depend of the existing conditions in each country GENERAL DIMENSSION OF THE FRAME: - Legal - Policy - Organizational African Centre for Statistics

Legal framework • Legal frameworks are constructed at the national level, and are specific to national sources and circumstances. • In some cases, relevant legislation at the international level : legislation of the European Union • IMPORTANT : STATISTICAL LAW African Centre for Statistics

Organizational Frameworks Organizational arrangements to facilitate data flows by written agreements and protocols. Key elements: - Legal basis - Defining the data - Frequency of data supply - Quality standard - Confidentiality rules - Technical standards - Provision of metadata. African Centre for Statistics

Problems 1. Obtaining access to administrative sources. 2. The information used in administrative sources does not directly correspond to the statistical indicator definitions. 3. The classification systems used within administrative sources may be different to those used in the statistical world. African Centre for Statistics

Problems (2) 4. Timeliness. Data may either not be available in time to meet statistical needs or refers to a period that does not coincide with that required for statistical purposes. 5. Inconsistency between sources. 6. Administrative sources are generally set up for the purpose of collecting taxes or monitoring government policies. For this reason, they are susceptible to political change. African Centre for Statistics

1. Obtaining data • The level of public concern about government departments sharing data varies from country to country; • There is usually some suspicion of the motives for data sharing; • Sometimes public opinion favours data sharing. African Centre for Statistics

Solutions • Adopt and publish a code of practice following international standards; • Clearly stated limits and rules may help reduce concerns; • The principle of the “one-way flow” of sensitive data must be understood by all; • Publish cost-benefit analyses of the use of different sources. African Centre for Statistics

2. Definitions of Variables • Administrative data are collected according to administrative concepts and definitions; • Administrative and statistical priorities are often different, so definitions are often different. African Centre for Statistics

Example: Unemployment • Statistical definition (ILO) – Out of work – Available for work – Actively seeking work • Administrative definitions are often based on those claiming unemployment benefits. African Centre for Statistics

Solutions • Know and document the differences and their impact, • Use other variables to derive or estimate the impact of the difference, • Statistical adjustments during data processing. African Centre for Statistics

3. Classifications • Used for different purposes • May not be a priority variable for the administrative source • Different classification rules for the same classification • Different classifications used African Centre for Statistics

Solutions • Understand how classification data are collected and what classification is used; • Collaboration for the use of the same classifications (help of Government); • Stress the advantages of using a common classification • Provide coding expertise, tools and training to administrative data suppliers; • Stress the advantages of using a common classification; • Offer expertise to help re-classify administrative sources. African Centre for Statistics

Solutions (cont) • Give early notice of classification changes and help implement them across government; • Use text descriptions to re-code administrative data; • Use probabilistic conversion matrices to convert codes – This results in individual unit classifications not always being correct, but aggregate data should be OK African Centre for Statistics

4. Timeliness Two Issues • Data arrive too late • Data relate to a different time period. African Centre for Statistics

a. Data arrive too late • Data from annual tax returns are often only available several months after the end of the tax year, so they are unsuitable for monthly or quarterly statistics • Lags in registering “real world” events. African Centre for Statistics

Solutions • Understand the length and impact of lags • Adjust data accordingly • Look for ways to reduce lags where possible. African Centre for Statistics

b. Different Time Periods • Administrative reference period (e. g. Financial/tax year) may not be the same as the statistical reference period • Monthly average versus point in time (e. g. employment data). African Centre for Statistics

Different Time Periods African Centre for Statistics

Solutions • Statistical corrections • Estimations using data from other reference periods. African Centre for Statistics

5. Inconsistency between sources • Data from one source may appear to contradict those from another. This may be due to different definitions or classifications, differences in timing, or simply to an error in one source. • Could be between: - Administrative and statistical sources - Two administrative sources. African Centre for Statistics

Solutions • Establish priority rules • Analysis of the variable evolution and trend. African Centre for Statistics

6. Change Management • Risk of changes in: – Government / administrative policy – Thresholds – Definitions – Coverage – Systems Happed: • Immediately after an election • Change of government, of minister African Centre for Statistics

Solutions Manage the Risk by: – Legal provisions – Contractual agreements – Regular contact with administrative colleagues – Anticipating changes African Centre for Statistics

Administrative statistics to NA • Translating administrative data to national accounts requires good understanding of the scope, coverage, definitions and concepts of the source data being used. • It is a complex process, • It is not a standardised process, but specific to each country, according to its specific administrative data sources. Two main steps involved: - Constructing transition tables (so-called “bridge ”from administrative data sources to SNA aggregates; - Applying adjustments in order to fulfill the SNA conceptual requirements, when needed. African Centre for Statistics

Administrative statistics to NA Preparation of “bridge tables”: a) Identification of administrative data sources; b) Analysis of content in respect of national accounting methodological requirements; c) Collection of data source indicators; d) Translation of each indicator from administrative data sources into national accounts concepts; e) Application of adjustments to meet national accounting requirements; f) Estimation of the national accounts indicators. African Centre for Statistics

African Centre for Statistics

Administrative statistics to NA (cont. ) “Bridge tables” – to be developed for all administrative sources, the most important being : - Financial statements of enterprises ( financial and nonfinancial); - Budgetary statements of general government institutional units; - Balance of payments. “Bridge tables” are specific to each country, depending on the content and availability of data sources. African Centre for Statistics

Administrative statistics to NA (cont. ) For an efficient use of administrative data in national accounts: • Understanding the scope, coverage, concepts, definitions and quality of administrative data; • Sharing the administrative data, preferably the microdata in electronic form; • Improving the timeliness and periodicity to match with national accounts releases; African Centre for Statistics

Administrative statistics to NA (cont. ) • Improving the content and quality of data in line with the recommended international standards, such as International Accounting Standards and International Financial Reporting Standards; • Giving a feedback to the source data agencies on how they have used the data in the national accounts and compiled the economic variables. This will bring the source data agencies getting involved in the national accounts compilation and in assessing their contribution to the national economy. African Centre for Statistics

Handbooks and manuals • UNECE Handbook of Using Administrative and Secondary Sources for Official Statistics: A Handbook of Principles and Practices, 2011 • UN Handbook: Links Between Business Accounting and National Accounting, Studies in Methods, 2000 • UN Handbook of National Accounting: Financial Production, Flows and Stocks in the System of National Accounts, 2013 • Guide méthodologique pour l’élaboration des comptes nationaux dans les états membre d’Afristat, Serie Méthodes No. 4, 2001; Chapter II-III: ‘ Le comptes des administrations publiques ’; chapter II-IV: ‘ Le commerce extérieur et la balance des paiements ’; Chapters II-VII: ‘ Le traitement des données d’entreprises African Centre for Statistics

Handbooks and manuals (cont. ) • Eurostat handbook Essential SNA: Building the basics, 2013 • European Commission, IMF, OECD, UN, World Bank System of National Accounts, 1993 and 2008 • United Nations, European Central Bank: Handbook of National Accounting: Financial Production, Flows and Stocks in the System of National Accounts, 2014 • UN Handbook of National Accounting National Accounts: A Practical Introduction: Studies in Methods, 2003 • OECD, IMF, ILO, CIS Stat (2002) Measuring the Non. Observed Economy: A Handbook African Centre for Statistics

Handbooks and manuals (cont. ) • IMF (2001): Government Finance Statistics Manual • IMF (2014): Government Finance Statistics Manual ( draft) • IMF (2009): Balance of Payments and Investment Position, Sixth Edition; • United Nations (2010): International Merchandise Trade Statistics: Concepts and Definitions • IAS Plus: Summaries of IFRSs and IASs at http: //www. iasplus. com/standard. htm. African Centre for Statistics

Points for discussions • What is the administrative data in the country? • What are the actual and potential benefits of using administrative sources in your countries? • What are the content, frequency, and deadline for dissemination of administrative sources? • Could it be useful for national accounts purposes? Do you use it? African Centre for Statistics

Points for discussions • What is the current situation concerning the use of administrative data for national accounts and in other statistical fields? • What are the problems for using administrative sources for statistical purposes? • Is it possible to gain access to these sources? Do agreements and memorandum for collaboration need to be set up? • Are the proper ways of collecting administrative records and using them for statistical purposes in place? African Centre for Statistics