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
1.
2.
3.
4.
5.

Structure of local government in Denmark
Data delivery to Statistics Denmark
Structure of entries and sources
Data collection – time schedule
Data processing (primary data)


6.
7.

8.

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

2


1. Structure of local government
- municipalities and regions

•

5 regions


•

(populations of 0,6 – 1,7 million)

98 municipalities


(populations of 2.000 – 560.000)

3


1. 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

4


1. Structure of local government
- responsibilities for the regions

•

Hospitals and health insurance

•

Infrastructure

•

Environmental protection

5


1. 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

6


1. 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

7


2. 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

8


2. 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

9

3. 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


3. 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


4. 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

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 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


5. 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


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, 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


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 results only. The final accounts are not
shared until the publication date
 Assistance only. No influence on decisions or results
16


5. 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


6. 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


7. 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


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 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

7. 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


8. 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


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 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