ESSnet Admin Data: usefulness of results

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1 ESSnet Admin Data: usefulness of results

2 Introductory and general remarks ESSnet Admin Data was part of MEETS Programme and ran for 4 years ( ); Focus was mainly on statistical outputs required by the Short Term Statistics (STS) and Structural Business Statistics (SBS) Regulations; Very ambitious work programme, divided between 8 workpackages; True partnership, with at least 3 co-partner NSIs involved in each work package.

3 Official Aim of the ESSnet Admin Data The use of administrative and accounts data for business statistics has country specific problems as well as problems common for most of the MSs. The common problems concern the methods of quality checking, editing and estimation of missing variables. One of the ways to help NSIs solve common problems is to create an ESSnet where several MSs interested in the topic can collaborate on the common task, and then disseminate the results to non-participating members.

4 Specific aims of ESSnet Admin Data To recommend best practices for dealing with the identified problems: Poor timeliness of admin data for STS; SBS definitions differ from those used in admin and accounts data; Some characteristics not available at all; No quality measures; Errors in admin data.

5 Membership of the ESSnet Admin Data All interested NSIs became co-partners of the ESSnet Admin Data UK, PT, NL, LT, IT, EE, DE and BE; Not enough grant finance made available for SGA 2011 (because 2.5 year period but amount in Commission s budget was for 1 year). Destatis (Germany) and INE (Portugal) therefore did not commit to any work in SGA 2011 period. Staff in both NSIs continued interest, and in fact the 2013 SBS workshop was held in Lisbon.

6 Overview of existing practices (WP1) Collection of all relevant literature in one place; Searchable database of literature and current practices of European NSIs; Glossary of terms relevant to the use of administrative data for business statistics; Current practices collected using questionnaires in 2010 and 2012, populated as much as possible in advance by ESSnet team, to minimise burden Results of both reviews have been published on our Information Centre (essnet.admindata.eu).

7 STS SBS EU+EFTA Area: Changed uses of admin sources by type of use and business statistics domain ( ) PRODCOM Annexes I-IV Annex V DISCONTINUED CURRENT Annex VI Annex VII Annex VIII Annex IX Building permits Employment New orders Prod. prices/costs Turnover Direct/Both direct and indirect (Not yet in use) Direct/Both direct and indirect (Indirect)

8 STS SBS No. of countries: changed responses to Why aren t admin data used?, by business statistics domain ( )* * Previous responses in brackets. Update covering 79.4% of 31/12/2010 information PRODCOM Annexes I-IV Annex V (No relevant AD exist) (AD not suitable) (Method. under dev.) (AD not suitable) Annex VI (Method. under dev.) (AD not suitable) Annex VII (AD not suitable) Annex VIII Annex IX (No relevant AD exist) (All data from BR) (AD not suitable) Building permits (No relevant AD exist) Employment New orders Prod. prices/costs Turnover (AD not suitable) (Method. under dev.) (Admin data are currently Admin used) data are being used Admin data available Methodology but not under suitable development Methodology under development Admin data available but not suitable No relevant admin No relevant data exist admin data exist (admin data used)

9 Influence of WP1 on rest of ESS ESSnet Admin Data s Report to the European Commission on changes in usage of admin data during the life of the MEETS Programme. ESS.VIP Admin Data will start work in 2015; Preliminary Task Force has decided that the relationship with data owners and the role of the NSIs in the collection and processing of administrative data will form one of the Work packages of the VIP.

10 List of basic quality indicators (WP6) Quantitative and qualitative quality indicators - Numeric and descriptive information Indicators of output quality, taking input and process into account Select indicators relevant to the output Flexibility - Certain parameters will be set by the statistical producer Accompanying examples of how to calculate each indicator - Specific SBS and STS tailored lists available

11 Influence of WP6 on rest of ESS Much interest at international conferences - Q2010, ISI 2011 and Q2012; ESS.VIP Admin Data will start work in 2015; Preliminary Task Force has decided that the work done by WP6 on quality indicators will be starting point for another of the VIP s Work packages; VIP will extend WP6 s recommendations for business statistics to all other areas of European statistics.

12 SBS v. IFRS definitions (WP7) Items in businesses Balance Sheets and Profit and Loss accounts look like SBS variables, but are not exactly the same; Compared the most important 21 SBS definitions with those in International Accounting Standards; Then real accounts data were compared with SBS survey data, to establish whether the definitional differences mattered in practice; If the accounts items were unsuitable for SBS, WP3 team members used admin data to try to estimate the variables in other ways.

13 WP7 s main recommendations Revenue might be used for the SBS variable Turnover, as discrepancies arising from differences between IAS/IFRS and SBS requirements are small (this excludes the impact of excise duty). Definition of Turnover should be amended to exclude excise duties; Data from the Notes to companies Financial Statements should be made available to NSIs in a useable format (e.g. using IFRS s xbrl Taxonomy).

14 Influence of WP7 on rest of ESS WP3 (definitions) of the MEETS ESSnet on Consistency used these recommendations as a starting point for its work; Task Force on Accounting and Statistics met in May 2013 and decided that its work had been carried out by the ESSnet Admin Data. The Task Force has therefore been disbanded.

15 Estimating for missing variables (WP3) It is necessary to have very well correlated admin variables in order to estimate accurately for the whole population; Various methods have been shown to give acceptable estimates for a range of SBS variables for the smaller businesses (retaining a survey for larger businesses); It may not be possible to estimate all SBS variables from admin data, e.g. there were no acceptable methods found for Payments for agency workers. 15

16 Timeliness issues for STS (WP4) Administrative data are incomplete at STS delivery dates, because the admin data (mainly VAT and social security) are due later. We therefore have to estimate the missing parts, in order to determine the growth rates of turnover and employment. Main recommendation is to retain a monthly survey of the largest businesses; use quarterly admin data trends to estimate for small businesses on a monthly basis, and benchmark monthly estimates to quarterly admin data.

17 Communication with other NSIs Dissemination strategy Information Centre; Plan of workshops and training events BSDG members consulted in 2010; 5 workshops held; No training events because no grant provided; Several presentations to STS and SBS working groups and BSDG; International conferences.

18 Workshops We have held a total of 5 workshops, starting in March 2010 with a seminar in Rome, at which we ensured that we were fully aware of the current state of admin data practices across Europe. We have recently hosted 2 large-scale workshops one for STS (April 2012 in Cardiff) and one for SBS (March 2013 in Lisbon), with over 70 attendees each and one smaller STS updating workshop (May 2013 in Tallinn).

19 Information Centre - essnet.admindata.eu Advanced search options - possibility to search within deliverables, reference library articles, glossary items etc. Project-wide Glossary which defines how various terms, related to the use of administrative data and accounts data, should be used within the context of the Admin Data ESSnet (Wiki functionality). Database of existing practices - user-friendly application database with up-to-date data and user interface (for online queries). Reference library - repository of 520 items.

20 Some IC pics IC search engine Reference library-520 items Glossary DB-overview of existing practices

21 Top 25 IC user countries, in the last year 20 May 2012 to 19 May ,427 visits from 95 countries Sequence Country Visits 1. United Kingdom Italy Belgium Estonia Netherlands Poland Germany Lithuania Bulgaria Austria Finland New Zealand Cyprus Hungary Switzerland Sweden Slovakia Spain Romania Latvia United States Croatia Turkey Slovenia Luxembourg 39

22 Thank you for your attention any questions?