1. Balancing QFAGG vs. STPFS
Kristina Stæhr Vest
Israel 2013

2. General data sources, QFAGG
Agency for the modernization of general government, monthly deliveries
The Danish Central Bank, quarterly deliveries
Local Government Accounts, quarterly on transactions, yearly for stock values
Government Accounts, yearly deliveries in May/June
Accounts for Social Security Funds, yearly deliveries
Quoted stock values from OMX
Various data received from within DST
As I mentioned befor lunch, we use the same datasources in the financial and non-financial accounts initially. Later we replace some datasources for others in the financial accounts as this provides us with improved data on transactions and thus on revaluations.
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3. Present system Based on the government accounts, stock values
And local government accounts, stock values
Government debt from Danish National Bank to supply data on revaluations.
A few other sources to supplement accounts data by providing data on revaluations.
Data on taxes to transform from cash to cost basis
Net lending/net borrowing from STPFS
The largest problem at present is that the non-financial accounts are transaction based whereas a lot of the data on financial transactions in the financial accounts system are calculated as a residual using stock values.
Some data such as what is delivered from the Central bank, consists of information on both stock values, transactions and more. Luckily this is the case with most of the major data entries but enough dataentries lack information on transactions to make it a problem which is reflected in the balancing adjustment.
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4. QFAGG is compiled using the appropriate accounts
Balancing QFAGG
QFAGG is compiled using the appropriate accounts
Differences between the preliminary fourth quarter and the accounts based data are entered into the fourth quarter.
Balancing conducted by entering the difference between the STPFS and the QFAGG net lending/net borrowing on the financial side, thus improving the financial transactions.
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5. Balancing adjustment Step 1 Step 2 Step 3
Compiling financial accounts using mostly the same datasources as for the non-financial accounts
Step 2
Adding the net lending/ net borrowing calculated in the non financial accounts to the compilation system
Step 3
balancing the financial accounts system using F.79 assets for the residual
Adjustments are made to the financial net lending by using the non financial net lending, because the sources on the non financial side, concerning net lending, is considered to be better. Work on a more precise split of the F7 items is in process.
Regarding quarterly data, until the year is complete, adjustments to the transactions are allowed to have an effect on the balance (please see explanation above), but as the year becomes more final and end of the year accounts are received, the effect of the adjustments are neutralized (in regards to stock values) as the stock values from the final accounts are considered the most correct sources. The effect on the stock values of the adjusted transactions are neutralized, by use of the “Other changes in volume” account. The effect on the transactions remains.

6. Balancing adjustment 2007-2012
2008
2009
2010
2011
2012
Produced 2008
2.863
Produced 2009
-7.286
-1.278
Produced 2010
2.865
-6.950
Produced 2011
6.999
1.772
Produced 2012
-205
3.869
-2.718
260
Produced 2013
3.219
-2.309
-1.490
-1.846
A lot of time and effort goes into managing and hopefully improving the balancing adjustment. Most of the previous improvements have concerned F.7 items thereby supporting our hypothesis of the difference between the two systems stemming from incompleted/lacking data on F.7 transactions. Part of this has been data on accrued taxes, part has been other timing issues and some have concerned items such as trade credits which have been to some extend included in F.79.

7. Balancing adjustment 2007-2012
2008
2009
2010
2011
2012
Produced 2008
2.863
Produced 2009
-7.286
-1.278
Produced 2010
2.865
-6.950
Produced 2011
6.999
1.772
Produced 2012
-205
3.869
-2.718
260
Produced 2013
3.219
-2.309
-1.490
-1.846
end 2013 estimate
10.000
A lot of time and effort goes into managing and hopefully improving the balancing adjustment. Most of the previous improvements have concerned F.7 items thereby supporting our hypothesis of the difference between the two systems stemming from incompleted/lacking data on F.7 transactions. Part of this has been data on accrued taxes, part has been other timing issues and some have concerned items such as trade credits which have been to some extend included in F.79.
Unfortunately I have discovered a problem in 2011 which when corrected will effect the balancing adjusment in both 2011 and By correcting the error the balancing adjustments will change to about -16 billion in 2011 and 10 billion in 2012.
Experience have taught me where to look for solutions to this type of problems, but onfortunately I have checked all the usual problematic areas and none can give me an explanation for this enlarged balancing adjustment.
The data is to be corrected by the beginning of November, which leaves me 2 weeks after our EDP notification is done to find a solution. If no solution can be found, we will publish the data with these data. We only close 2010 to revisions in November, the rest is open again next year, which luckily provides me with another chanse of finding a solution, but I would rather not have to explain this increase in the balancing adjustment to Eurostat.

8. New version of the system
Stock values are still to be of the highest priority.
Transactions are to be matched to the corresponding non-financial transaction whenever possible.
Accounts data to be used to provide stock values, other sources to be considered in regards to revaluations.
Balancing still to be done on the financial side by adding the Net lending/net borrowing difference.
We are working both on changing the system from an excel based system to an Oracle based system programming in PL/SQL and on changing datasources on transactions.
The change of system is in order to prevent basic errors occuring for example when copying formulaes and reduce production time spend on checking the updates have gone well.
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9. The END
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