Item 7 - Roadmap and mandate for the Task Force on UOE Education Expenditure Data Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018

Phase 2: Discussing and agreeing a roadmap for future developments of expenditure data on education (April to September 2018) Outcome of the Workshop on Development of Education Expenditure Data → Draft roadmap including 3 work-packages: Work-package 1 - Improving the UOE methodology Work-package 2 - Improve understanding and documentation of the links between the UOE and National Accounts Work-package 3 - Develop and support the way forward to improve the timeliness of the UOE finance data Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 2

Work-Package 1-Improving the existing UOE methodology: Objective: to improve the quality of the UOE methodology regarding expenditure on education data Focus: on geographical scope, private expenditure (households and other non-educational private entities), ancillary services, R&D expenditure, Public transfers to private sector, student loans; Expected outcomes: concrete proposals for clarifications or changes to be implemented in the UOE manual, to the structure of the National Quality report and/or to the UOE questionnaire. Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 3

WP2- Improve understanding and documentation of the links between the UOE and National Accounts Objective: to investigate more in-depth the links and differences between the UOE framework and the National Accounts framework. Focus: scope of education, education sectors (institutional sectors, educational institutions), accounting principles, capital and current expenditure, national reconciliation exercise; Expected outcomes: Recommendations to adapt the UOE framework when the UOE methodology could benefit from the use of some concepts available in the National Accounts framework (with or without adaptation) Improving the existing framework and material of the reconciliation exercise to facilitate the participation of additional countries Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 4

WP3- Develop and support the way forward to improve the timeliness of the UOE finance data: Objective: to define and develop/implement a strategy to significantly improve the timeliness of UOE finance data Focus on four possible options: Option 1: Improving the timeliness within the existing UOE framework Option 2: Collecting a subset of the UOE-finance data with a shorter timeliness Option 3: Estimating data on expenditure on education Option 4: Building on the links with National Accounts: developing National Education Accounts Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 5

Consultation about the priorities of the roadmap (WP1 and WP2) took place between 25 April and 25 May 2018 → 6 criteria: Methodological impact Expected improvement Maturity of the topic Expected workload Connection with other theme(s) National relevance Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 6

Results of the consultation about the priorities of the roadmap – Work-Package 1: Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 7

Results of the consultation about the priorities of the roadmap – Work Package 2 Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 8

Results of consultation with DG EAC about the priorities of the roadmap – Work-Package 3 DG EAC emphasised and requested that the roadmap should consider: Collecting a subset of the UOE-finance data with a shorter timeliness (option 2) as a priority; Shorter timeliness = disseminating data of reference year N at N+2 (i.e. Eurostat collects data of reference year N at the end of N+1); Subset should be understood as: Public (General Government) educational expenditure by education level, programme orientation and expenditure category; Public subsidies to the private sector by education level and programme orientation Financial aid to students by education level Population of students aligned with financial data Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 9

Proposal for the roadmap for future development of the Education Expenditure Data Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 10

WP1-Improving the existing UOE methodology Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 11

Gradually from End 2018 to maximum End 2021 Theme Actors Timeline Eurostat Task Force 1 Geographical scope X UOE2019 (May2019) 2 Private expenditure – HH Gradually from End 2018 to maximum End 2021 3 Public transfers to private sectors 4 Ancillary services 5 Students loans 6 R&D expenditure 7 Private expenditure – OPE Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 12

WP2-Improve understanding and documentation of the links between the UOE and National Accounts Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 13

A X B C D E F G H Theme Actors Timeline Eurostat Task Force ESS members A Education Sectors – Institutional sectors X Gradually from End 2018 to 2019// UOE2019 (May2019) B Reconciliation exercise From End 2018 to End 2020 C Scope of education Gradually from End 2018 to maximum End 2021 D Accounting principle E Capital expenditure F Education Sectors – Educational instituttions G Current expenditure – Compensation of personnel H Cur. Exp – Other than Comp. of personnel Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 14

WP3 - Develop and support the way forward to improve the timeliness of the UOE finance data Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 15

(ref. year T-1 in November T) Options Potential actions Resources Timeline Eurostat TaskF ESS members Other Option 2: Collecting a subset of the UOE-finance data with a shorter timeliness (ref. year T-1 in November T) Main users define a limited set of data that would meet their specifics needs X DGs From End 2018 to maximum End 2021 Gradual contribution to the voluntary exercise From End 2019 to 2022 Option 1: Improving the timeliness within the existing UOE framework (ref. year T-2 in November T) Sending the UOE-Finance questionnaire earlier than the current timeline UOE2018 (May 2018) Developing and agreeing on an additional set of validation rules aiming at shortening the data validation process UOE2019 (May 2019)

(ref. year T-1 in November T through provisional accounts) Options Potential actions Resources Timeline Eurostat TaskF ESS members Other Option 4: Building on the links with National Accounts: developing National Education Accounts (ref. year T-1 in November T through provisional accounts) Deepening the analysis of the links UOE- National Accounts frameworks + disseminating it to members of the ESS X NAs From End 2018 Analysing the relevance and expected benefits to set up at EU level a methodology of National Education Accounts DGs From End 2018 to maximum End 2019 Defining a EU methodology of National Education Accounts and its feasibility From End 2018 to maximum End 2021

Option 3: Estimating data on expenditure on education Options Potential actions Resources Timeline Eurostat TaskF ESS members Other Option 3: Estimating data on expenditure on education (ref. year T-1 in T) Key users identify the indicators that should be estimated X DGs From End 2018 to End 2019 Identifying and developing relevant methods to perform such estimations Ad hoc projects TF: from end 2018 Developing method: From End 2019/Beginning 2020; Testing phase at national level: not before 2021 or 2022

In case of: Option 2: Collecting a subset of the UOE-finance data with a shorter timeliness Option 4: Building on the links with National Accounts: developing National Education Accounts Option 3: Estimating data on expenditure on education Discuss the opportunity to adapt and revise the current EU Regulation (From End 2022/Beginning 2023) Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 19

Summary The ETS Working Group is invited to take note of: The conclusions of the workshop on Development of Education Expenditure Data (DEED WS) and the results of consultation on the roadmap Participants of the ETS Working Group are invited to express their views and discuss: The Eurostat proposal for roadmap and further activities (in the medium and long term) in two key areas: Improving the comparability of data and the UOE methodology on education expenditure (incl. the adaptation of the national quality report and a revision of the UOE manual); Developing the consistency between the UOE methodology and the National Accounts methodology. The options to improve the timeliness of UOE finance data (including the proposal of DG EAC to focus on priority on option 2). Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 20

Summary Participants of the ETS Working Group are invited to approve: The draft mandate of the UOE Education expenditure Task Force   Participants of the ETS Working Group are invited to nominate: Members of the Task Force. The first meeting (two days) of the Task Force is planned in 11-12 December 2018. Eurostat Education and Training Statistics Working Group - Luxembourg, 18 -19 June 2018 - 21