Annex a1 9 local government accounts in denmark (gitte frej) HEBREW

Local government accounts in Denmark Accounting data from local governments units By Gitte Frej Knudsen Helene Gjermansen Overview Collection, processing, sources, accounting systems Structure of local government in Denmark Data delivery to Statistics Denmark Structure of entries and sources Data collection – time schedule Data processing (primary data)  Debugging, validation and outside assistance Responsibilities concerning primary data Legality to collect final data and non final data  The standardized accounting system  Contract, gentleman's agreement Problems with non final primary data Structure of local government - municipalities and regions • regions  • (populations of 0,6 – 1,7 million) 98 municipalities  (populations of 2.000 – 560.000) Structure of local government - responsibilities for the municipalities  Primary education  Child care  Care for the elderly  Granting and payment of cash assistance, pensions, and other social benefits  Care of mentally and physically disabled people  Job activation and employment projects  Supply of water, heat, electricity, removal of refuse, and purification of discharge water  The local road network  Libraries, local sports facilities, and other cultural activities Structure of local government - responsibilities for the regions • Hospitals and health insurance • Infrastructure • Environmental protection Structure of local government - delegation of tasks  Municipalities:  Responsible for tasks close to the citizens  Democratically elected municipal board  Financed by taxes  Regions  Responsible for tasks requiring a larger population base  Democratically elected regional board  Financed by transfers from central government Structure of local government - public expenditure by subsector Public expenditure by sector (2012) DKK Bn Compensation of employees Consumption of fixed capital Intermediate consumption Other taxes on production/subsidies, net Produktion Social benefits in kind General government Central Local government - government - - ‫ממשלה כללי‬ ‫ממשלה מרכז‬ ‫'ממשלה מקומ‬ 334,8 35,5 183,4 95,1 17,0 64,9 237,3 18,5 117,7 -4,8 548,9 27,4 0,8 177,9 0,4 -5,6 367,9 27,0 Sales of goods and services -54,7 -23,5 -31,2 ‫מכירות של סחורות ושירותים‬ Final consumption expenditure Final consumption expenditure (in percent) 521,6 154,9 363,7 ‫הוצאות צריכה סופי‬ 69,7 ‫הוצאות צריכת הסופי‬ ‫))באחוזים‬ 100,0 29,7 ‫)כתר דני )מיליארדים‬ ‫משכרות עובדים‬ ‫צריכת הון קבוע‬ ‫צריכת ביניים‬ ,‫תמיכות‬/‫מסים אחרים על ייצור‬ ‫נטו‬ ‫הפקה‬ ‫)תשלומי רווחה )בטובין‬ Data delivery to Statistics Denmark Database in KMD (61 municipalities) Database in Statistics Denmark 61 – ‫מאגר נתונים מוניציפליים‬ ‫רשויות‬ Accounting systems in the municipalities (37 municipalities) – ‫מערכות החשבונות המוניציפליות‬ ‫רשויות‬37 Accounting systems in the regions (5 regions) ‫ אזורים‬5 –‫מערכות החשבונות האזוריות‬ ‫מאגר נתונים בלשכה הדנית‬ ‫לסטטיסטיקה‬ Electronic report with detailed data from the individual municipality ‫דיווח אלקטרוני עם נתונים‬ ‫מפורטים לכל רשות נתונה‬ Electronic report with detailed data from the individual region Mailbox in Statistics Denmark ‫תיבת דוא"ל‬ ‫בלשכה הדנית‬ ‫לסטטיסטיקה‬ ‫דיווח אלקטרוני עם נתונים‬ ‫מפורטים לכל אזור נתון‬ Data delivery to Statistics Denmark  The accounting system is standardized by the Ministry for Economic Affairs and the Interior  The committee for the standard accounting system has the following institutions represented:  Ministry for Economic Affairs and the Interior  Ministry of Finance  Nationwide organization for the municipalities (KL)  Nationwide organization for the regions (Danish Regions)  Statistics Denmark  Accountants  The committee is used for information, decisions and informal talks Structure of entries and sources Data sources:  Municipality and region detailed accounts  A standardized accounting system  Electronic transfers Entry line: MMMFFFFFKNGGGTTXXXXXXXXX (24 digits) ⁻ ‫סמל הרשות‬ ⁻ ‫ קשישים וכ‬,‫ בריאות‬,‫)'פונקציה )ביה"ס‬ ⁻ ‫ פיננסים‬,‫)סוג פעולה )חשבונות שוטפים‬ ⁻ ‫לא בשימוש סטטיסטי‬ ⁻ ‫"פונקציה‬-‫)"קבוצה )פירוט לגבי ה‬ ⁻ ‫סייוג הפעולה‬ ⁻ ‫ הכנסה‬- ,‫ הוצאה‬+ ) ‫)סכום‬ Digits 1-3: Digits 4-8: Digit 9: Digit 10: Digits 11-13: Digits 14-15: Digits 16-24: Municipality number Function (eg schools, elder care, health care) Kind of transaction (current account, financial acc.) Not used for statistical purposes Group (further details about function) Type of transaction Amount (+ expenditure, – revenue) 10 Structure of entries and sources Example: Input data from a municipality 147322011199910000292431 147322011199929000010764 147322011199945000004903 147322011199979-00000788 Etc       ⁻ ‫ – פרידריקסברג )באזור קופנהגן‬147 – ‫)סמל הרשות‬ ⁻ ‫ בתי ספר יסודיים‬- 32201 – ‫פונקציה‬ ⁻ ‫ העברות שוטפות‬-1 – ‫סוג פעולה‬ ⁻ ‫ אין נתונים נוספים על הפונקציה‬- 999 – ‫מספר קבוצה‬ ⁻ ‫ משכורות‬- 10 – ‫סייוג הפעולה‬ ⁻ 000292431 – (‫ אלפים‬,‫סכום )כת"ד‬ Municipality number 147: Frederiksberg (part of Copenhagen region) Function number 32201: Primary schools Kind of transaction number 1: Current transfers Group number 999: No further details about function Type of transaction is number 10: Wages Amount in 1000 DKK 11 Data collection – time schedule Time of data collection, (year t) - ‫מועד איסוף נתונים‬ Publication of accounts/budgets - ‫תקציבים‬/‫פרסום חשבונות‬ Type of data - ‫סוג הנתונים‬ February, year (t+1) Provisional accounts March, year (t+1) Publication in the national accounts - ‫פרסום בח' לאומיים‬ March, year (t+1) ‫חשבונות ביניים‬ April, year (t+1) Final accounts and balance sheets May, year (t+1) June, year (t+1) January, year (t) March, year (t) ‫חשב' סופיים ומאזנים‬ November, year (t-1) Budgets ‫תקציבים‬ April, year (t) Quarterly accounts (1st quarter) ‫ רבעוני‬- May, year (t) June, year (t) (partly May) July, year (t) Quarterly accounts (2nd quarter) August, year (t) September, year (t) (partly August) October, year (t) Quarterly accounts (3rd quarter) November, year (t) December, year (t) (partly November) January, year (t+1) Quarterly accounts (4th quarter) February, year (t+1) March, year (t+1) (partly February) 12 Data processing (primary data) – debugging  Pooling of data – one database with all primary accounting data  Debugging by comparing data to the standard accounting system  Debugging by comparing data to budgets, previous accounts or quarterly data  Contacting the individual municipality or region if:  There are larger errors that must be corrected  Delayed delivery of data  Using accounts that does not exist in the standardized accounting system 13 Data processing (primary data) – corrections in the system  All corrections are made through a SAS-program – no manual corrections in the database  Everything is documented  Easy to roll back the database if needed, or ‘recorrect’ errors if a municipality or region wants something changed later  Easy to see changes in previous datasets in case of similar (or identical) errors in later delivered datasets 14 Data processing (primary data) – corrections in the system  Corrections after publication of annual data happen only in case of larger errors in data, or errors that significantly influence central government reimbursement  Quarterly accounts are not final accounts, but only a view of the situation around 10 days after the end of the quarter Corrections happen if new data is received, but will generally not be changed until the next publication in the following quarter 15 Data processing (primary data) – validation and outside assistance  Outside assistance in regards to data validation of the annual budgets and accounts (not quarterly data)  Ministry for Economic Affairs and the Interior  Ministry of Finance  Nationwide organization for the municipalities (KL)  Nationwide organization for the regions (Danish Regions)  Preliminary results only The final accounts are not shared until the publication date  Assistance only No influence on decisions or results 16 Data processing (primary data) – validation and outside assistance Advantages:  Agreement about the results of the accounts and budgets at the time of publication  The four institutions have more knowledge of the current situation in the municipalities and regions – better and faster validation Disadvantages  Political interests and the desire to have numbers early  Potential leak of data – one contact person in each institution who is responsible 17 Responsibilities (primary data)  Data collection: Statistics Denmark ‫איסוף נתונים‬:  Debugging: Statistics Denmark ‫איתור באגים‬: ‫אימות‬:  Validation: Statistics Denmark, with assistance from (annual data only):  Ministry for Economic Affairs and the Interior  Ministry of Finance  Nationwide organization for the municipalities (KL)  Nationwide organization for the regions (Danish Regions)  Final decisions about data: Statistics Denmark ‫עם סיוע )לגבי נתונים שנתיים( מ‬- : ‫קבלת החלטות סופית לגבי הנתונים‬: ‫פרסום‬:  Publication: Statistics Denmark 18 Legality to collect final data Legal demands:  Final accounts and balance sheets  Budgets The Local Government Act: “The Ministry for Economic Affairs and the Interior prescribe the form of budget and account for the municipalities and regions” In practice: The standardized accounting system for municipalities and regions:  Standard accounts numbers and bookkeeping rules  Standard form and procedural requirements for budgets and final accounts  Time schedule for delivery of budgets and final accounts to Statistics Denmark 19 Legality to collect non final data Non-legal demands:  Quarterly accounting data  Provisional accounts for the year  Used for the GFS of the year in March (t+1) and for the forth quarter in March (t+1) No legality by law – but contract and gentleman's agreement Quarterly data: Contract between The Ministry for Economic Affairs/Interior and Statistics Denmark:  Statistics Denmark collect the quarterly accounting data from the accounting systems Delivery of accounting data for every single municipality and region  The ministry using the data only for budgetary control  The primary financial accounting data is published by Statistics Denmark on aggregated level  Statistics Denmark is responsible for the statistical results calculated from the accounting data to the Quarterly Government Finance Statistic 20 Legality to collect non final data Provisional accounts for the year A gentleman's agreement between the municipalities/regions and Statistics Denmark:  Statistics Denmark only uses the aggregated data in the communication with ministries and other interested parties  No publishing of detailed primary data  The detailed accounting data are only used for statistical purposes  Statistics Denmark is responsible for the statistical results calculated from the accounting data 21 Problems with non final primary data Problems with non final quarterly accounting data and provisional accounts for the year according to statistical purposes:  The data are not final  Not all transactions are accrued  The accounts are not balanced or checked by an auditor  Some times data is not complete (there are not accounting data from all municipalities and regions)  Big revisions between provisional accounting data and final accounting data  Explaining the big revision to the users of the statistics  The data is flagged as preliminary in the publication 22 Problems with non final primary data Using non final quarterly accounting data and provisional accounts for the year:  Statistics Denmark estimate macro adjustments according to the accrual principle  Macro adjustments to main categories in national accounts (based on experience on macro level from previous years)  If some data is missing and it is not possible to get information from the municipality/region then Statistics Denmark add some macro corrections based on accounting data from previous years  For some entries in the national accounts other data sources is used (for example taxes)  Supplementary accounting period in (t+1) 23 [...]... sources Example: Input data from a municipality 147322011 199 910000 292 431 147322011 199 9 290 00010764 147322011 199 94500000 490 3 147322011 199 9 79- 00000788 Etc       ⁻ ‫ – פרידריקסברג )באזור קופנהגן‬147 – ‫)סמל הרשות‬ ⁻ ‫ בתי ספר יסודיים‬- 32201 – ‫פונקציה‬ ⁻ ‫ העברות שוטפות‬-1 – ‫סוג פעולה‬ ⁻ ‫ אין נתונים נוספים על הפונקציה‬- 99 9 – ‫מספר קבוצה‬ ⁻ ‫ משכורות‬- 10 – ‫סייוג הפעולה‬ ⁻ 000 292 431 – (‫ אלפים‬,‫סכום... accounting data and final accounting data  Explaining the big revision to the users of the statistics  The data is flagged as preliminary in the publication 22 8 Problems with non final primary data Using non final quarterly accounting data and provisional accounts for the year:  Statistics Denmark estimate macro adjustments according to the accrual principle  Macro adjustments to main categories in. .. accounting data from the accounting systems Delivery of accounting data for every single municipality and region  The ministry using the data only for budgetary control  The primary financial accounting data is published by Statistics Denmark on aggregated level  Statistics Denmark is responsible for the statistical results calculated from the accounting data to the Quarterly Government Finance... something changed later  Easy to see changes in previous datasets in case of similar (or identical) errors in later delivered datasets 14 5 Data processing (primary data) – corrections in the system  Corrections after publication of annual data happen only in case of larger errors in data, or errors that significantly influence central government reimbursement  Quarterly accounts are not final accounts, ... Government Act: “The Ministry for Economic Affairs and the Interior prescribe the form of budget and account for the municipalities and regions” In practice: The standardized accounting system for municipalities and regions:  Standard accounts numbers and bookkeeping rules  Standard form and procedural requirements for budgets and final accounts  Time schedule for delivery of budgets and final accounts. .. Statistics Denmark 19 7 Legality to collect non final data Non-legal demands:  Quarterly accounting data  Provisional accounts for the year  Used for the GFS of the year in March (t+1) and for the forth quarter in March (t+1) No legality by law – but contract and gentleman's agreement Quarterly data: Contract between The Ministry for Economic Affairs/Interior and Statistics Denmark:  Statistics Denmark. .. previous accounts or quarterly data  Contacting the individual municipality or region if:  There are larger errors that must be corrected  Delayed delivery of data  Using accounts that does not exist in the standardized accounting system 13 5 Data processing (primary data) – corrections in the system  All corrections are made through a SAS-program – no manual corrections in the database  Everything... Quarterly accounts (3rd quarter) November, year (t) December, year (t) (partly November) January, year (t+1) Quarterly accounts (4th quarter) February, year (t+1) March, year (t+1) (partly February) 12 5 Data processing (primary data) – debugging  Pooling of data – one database with all primary accounting data  Debugging by comparing data to the standard accounting system  Debugging by comparing data... to collect non final data Provisional accounts for the year A gentleman's agreement between the municipalities/regions and Statistics Denmark:  Statistics Denmark only uses the aggregated data in the communication with ministries and other interested parties  No publishing of detailed primary data  The detailed accounting data are only used for statistical purposes  Statistics Denmark is responsible... publication in the following quarter 15 5 Data processing (primary data) – validation and outside assistance  Outside assistance in regards to data validation of the annual budgets and accounts (not quarterly data)  Ministry for Economic Affairs and the Interior  Ministry of Finance  Nationwide organization for the municipalities (KL)  Nationwide organization for the regions (Danish Regions)  Preliminary ... Structure of entries and sources Example: Input data from a municipality 147322011 199 910000 292 431 147322011 199 9 290 00010764 147322011 199 94500000 490 3 147322011 199 9 79- 00000788 Etc       ⁻ ‫ – פרידריקסברג... processing, sources, accounting systems Structure of local government in Denmark Data delivery to Statistics Denmark Structure of entries and sources Data collection – time schedule Data processing... accounting data  Debugging by comparing data to the standard accounting system  Debugging by comparing data to budgets, previous accounts or quarterly data  Contacting the individual municipality