1. Statistics Estonia’s experience on cost accounting
RGD meeting
June 17, 2015
Tuulikki Sillajõe

2. Structure of costs in 2014 (mln euro)
Cost accounting in Statistics Estonia

3. Motivation to start with ABC
Discussions about introducing activity-based costing since the middle of 1990s. In 1998 even study-visit to Statistics Sweden
ABC was just a dream of some fanatics, the mainstream was against it – too resource consuming
Redrafting of the Official Statistics Act and obvious public expectation to know the cost of statistical programme by actions
Budget cuts in 2009 – need to know influence on strategy
Need to compile time sheets for Eurostat’s grant projects and for the projects funded by European Structural Funds
Cost accounting in Statistics Estonia

4. Evolution in time Retrospective analysis for 2007
A simple Excel solution for the first half of 2009
An almost tailor-made web-based solution Timelogic which has been in use starting from 1 July 2009
Cost accounting in Statistics Estonia

5. Time-recording system is the basis
GSBPM version 4.0 is used for reporting working time.
Working time is split between
direct time (statistical actions by the second level sub-processes of GSBPM)
indirect time (development, administration, representation, motivation, absence)
The guiding principle is to connect as much time as possible with statistical activities (items included in the statistical programme)
The system applies to everybody except interviewers
Cost accounting in Statistics Estonia

6. Time-recording system (timesheet view)
Table view, calendar view
Year of statistical programme
Statistical actions i.e. products in programme
Direct time
Indirect time
Cost accounting in Statistics Estonia

7. Distribution of working hours
2009
2014
Cost accounting in Statistics Estonia

8. Distribution of working hours by phases of GSBPM
Cost accounting in Statistics Estonia

9. Distribution of working hours by sub-processes of GSBPM, 2014
Cost accounting in Statistics Estonia

10. Model of statistical action price
Personnel costs
All activities of GSBPM
Administrative
costs
Invest-
ments
Cost accounting in Statistics Estonia

11. Data from WEB-based reports (SAP)
cash expenses
accrued expenses
Cost accounting in Statistics Estonia

12. Decisions taken based on the results
Starting with the statistical programme for 2011–2015, the statistical programme includes costs by statistical actions
Time sheets for all kinds of projects are generated automatically from the time reporting system
A software development project for the processing phase was initiated
Organisational consolidation of sub-processes within SE
Cost accounting in Statistics Estonia

13. Distribution of phases in organisational structure
2012
2015
Cost accounting in Statistics Estonia

14. Organisational structure of SE
Cost accounting in Statistics Estonia

15. Lessons learned
ABC is a powerful tool for fact-based decision-making, if you want to use it
Being equipped with fact-based data, managers and the staff can ask better questions about existing work routines and consider opportunities for changes
Better understanding of the staff, in terms of their personal contribution to the value chain
Improved awareness of the costs of all activities that fall under a statistical action
Cost accounting in Statistics Estonia

16. Thank you for your attention!
Cost accounting in Statistics Estonia

17.
Cost accounting in Statistics Estonia