1. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz System of methodological audits in CZSO (Final (Final review, May 2010) Jiří Kubín, CZSO

2. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Methodological audits in CZSO – short historical hindsight (1/3)  New Top Management of CZSO was established in May 2003.  First goals were identified, e.g. to recognize the status quo in key statistical areas. 2

3. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Methodological audits in CZSO – short historical hindsight (2/3)  Methodological audits were proposed by Jiří Křovák, 1 st vice-president of CZSO, directly in May 2003.  General principles of methodological audits, competences and liabilities of auditors, expected outputs of audits (minimal range of final report) were worked out. 3

4. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Methodological audits in CZSO – short historical hindsight (3/3)  Czech Statistical Council agreed to Principles of the system of methodological audits including time schedule on 1 st July 2003.  System of methodological audits started in the Quarterly National Accounts Department during the 4th quarter 2003. 4

5. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Roles in methodological audits President of the CZSO Vice- presidents Head of Auditing Group Auditors Secretary of Auditing Group Director of Department Experts from Department 5

6. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Goal of methodological audit  Generally: methodological audit is a management tool.  The goal of methodological audit is to explore adequacy of used methodological possibilities, principles, tools and practices, correspondence between standards and practice of EU statistical service. 6

7. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Verified practice  Auditing group usually consists of 3 external and 2 internal experts.  Outcome: Final report, prepared according to the general scheme.  Final report is discussed by the Top Management, the Head of Auditing Group and Director of Department.  Time schedule of further steps is prepared and monitored. 7

8. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz General scheme of Final report (selected items) 1.Audit assignment including rough time-schedule 2.Correspondence between standards and practice of EU statistical service 3.Satisfaction of users needs (statistical outputs) 4.Assessments - sufficiency of written methodology documentation - quality dimensions of output (like in EUROSTAT quality report) - benchmarking 5. Suggested further actions and improvements (including miscellaneous opinions of auditing group members) 8

9. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Time schedule of the methodological audit (1/4) Middle of the previous quarter (Q-1) Audit assignment, suggestion of the Auditing Group (Vice-president, Director of the Department) Agreement of the external auditor ??? NO – searching for a new auditor (Q-1) YES, agreement with the external auditor (Q-1) 9

10. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Time schedule of the methodological audit (2/4) (The End of Q-1, beginning of Q) 1 st meeting of the Auditing Group. The importance is stressed by participation of the Vice-president. First methodological documents prepared at the discretion of the audited Department (printed, electronic). They often include technical specification of the statistical project. (first month of Q) Prepared documents studied by members of Auditing Group. 10

11. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Time schedule of the methodological audit (3/4) (usually beginning of the second month of Q) 2nd meeting of Auditing Group: Exchange of knowledge and opinions, further details requested from audited Department. Auditing group specifies the deadline of the delivery of the revised documents and the date of the next meeting. (Provable contacts between Auditing group and audited Department via Secretary of Auditing group by E-mail.) (usually the end of the second month of Q) 3rd meeting of Auditing Group: Discussion of revised documents. First version of Final report, preparation of detailed questions for audited Department. 11

12. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Time schedule of the methodological audit (4/4) (usually beginning of the third month of Q) Audit meeting at audited Department. All members of Auditing G, experts from audited Dep. Direct questions and answers are useful as they lead to full clarification of status quo in the given statistical area. (The End of Q) Based on the acquired knowledge, Auditing G completes Final report (modifications via e-mail) which is signed at the last meeting of AG. (usually beginning of Q+1) Final report is discussed by the Top Management (including the President of CZSO), the Head of Auditing Group and Director of Department. Time schedule of further steps is prepared and monitored. 12

13. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Roles in audit and closing remarks Provable E-mail communication between AG and AD got right in practice. Scheduled output of the system of Methodological audits during 2003 to 2008: 23 Final reports. All of them are finished by 10 th December 2008. President of CZSO approves Audit assignment, members of the Auditing Group, time schedule of further steps after Final report discussed by Top Management Vice-president monitors the formation of the Auditing Group, approves bonus payment for external auditors Head of Auditing Group (external auditor) manages the work of the Auditing Group Director of audited D prepares requested documents and the work of his/her experts Secretary of AG Communication, organisational and methodological support, monitoring abidance by rules 13

14. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz List of audits – 1/4 1.Quarterly National Accounts 2.Industrial Production Index 3.Construction Statistics 4.Annual National Accounts 5.Quarterly survey as a support of GDP preliminary estimate 6.Annual Structural Survey 14

15. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz List of audits – 2/4 7.Consumer Price Statistics 8.Agricultural, Construction and Services Prices Statistics 9.Labour and Earning Statistics 10.Household Budget Survey 11.Environmental Statistics 12.Industrial Prices Statistics and External Trade Prices Statistics 15

16. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz List of audits – 3/4 13.External Trade Statistics 14.Tourism Statistics 15.Agricultural Statistics 16.Public databases 17.Population Statistics 18.Statistics on Public Health and Safety at Work 16

17. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz List of audits – 4/4 19.Retail Trade Statistics 20.Information Society Statistics 21.Energy Statistics – production of electricity and other energy sources, energetic balances 22.R&D and Innovation Statistics 23.Statistics of Financial, Governmental and Non-profit Organisations 17

18. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Ratio of significant findings to findings of lower significance in methodological audits finished in 2007 and 2008

19. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Auditors during the 1 st round of methodological audits – short overview Altogether 120 auditors (some of them asked repeatedly), actually 92 persons - 60 external experts and 32 experts from CZSO Among them  14 University Professors,  1 senator of the Parliament of Czech Republic, specialists from other national institutions and financial sphere:  Czech National Bank,  Ministry of Finance  Ministry of Industry and Trade,  Ministry of Labour and Social Affairs,  Ministry for Regional Development,  Customs Administration of the Czech Republic,  Czech Moravian Confederation of Trade Unions. 18

20. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Final Review by the Czech Statistical Council On 27 th March 2009 the Czech Statistical Council evaluated the first round of methodological audits to be satisfactory and highly appreciated the work of Auditing Groups and Audited Departments. Reports from the second round, when the gained experience will be exploited, are anticipated. Arrangements for the second round of methodological audits are almost completed. 19

21. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz Acknowledgements Professors of University of Economics, Prague: Prof. Stanislava Hronová and Prof. Jaroslav Jílek Prof. Stanislava Hronová contributed to the successful start of the auditing cycle in a decisive way. Prof. Jaroslav Jílek led four Auditing Group perfectly. Unfortunately, he died in 2007.

22. CZECH STATISTICAL OFFICE Na padesátém 81, CZ - 100 82 Praha 10, Czech Republic www.czso.cz. Thank you for your attention. jiri.kubin@czso.cz