Transcript
Page 1: Session 1 – Use of profiling for public administration

Session 1 – Use of profiling for public administrationLinda Scott

Head of Business Register Operations

UK

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IDBR What is it?

• The IDBR (Inter Departmental Business Register)– Statistical business register– Complies with EU standards– 2 million enterprises (businesses)– 2.5 million local units (sites)– 98-99% of UK economic activity– Source for over 150 regular surveys– Used as an analysis tool

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Distribution of Enterprises (2008)

Agriculture, forestry & Fishing 7.2%

Production 6.8%

Construction 11.6%

Transport industries 3.1%

Wholesaling and dealing 5.2%

Retailing 9.2%

Finance 1.6%

Catering 6.3%

Motor trades 3.3%

Property & Business 31.8%

All other services 13.9%

All industries 100%

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Sources of data for the IDBR

• HM Revenue and Customs– VAT traders– Intrastat traders (identified by VAT reference)– PAYE employers

• Companies House - Company registrations• Dun and Bradstreet - Worldbase linkages• ONS (and Northern Ireland) surveys• Construction and farms surveys

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Data Held on the IDBR

• Name, address, geographic codes• Size (employment / turnover)• Economic activity (UK extensions of both

NACE Rev 1.1 and NACE Rev 2)• Legal status (company, sole proprietor, etc)• Birth and death dates• Survey selection and response history

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Enterprises operating in only in one region

Employment Size band

Private Sector and Public

Corporations

Central Government

Local Government

Total

1-19 1,983,592 73 2,314 1,985,979

20-49 62,261 45 297 62,603

50-99 16,501 50 168 16,719

100-249 7,092 81 324 7,497

250+ 2,509 236 91 2,836

Total 2,071,955 485 3,194 2,075,634

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Enterprises operating in more than one region

Employment size band

Private Sector and

public corporation

s

Central Govern

ment

Local Governm

ent

Total

1-19 10,610 1 151 10,762

20-49 6,873 6 35 6,914

50-99 5,000 16 16 5,032

100-249

4,934 25 36 4,995

250+ 5,239 384 436 6,059

Total 32,656 432 674 33,762

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What is profiling?

• Profiling is a method for analysing the legal, operational and accounting structure of an enterprise group at national and world level

• in order to establish the statistical units within that group and their relationships, and

• to create and maintain the most efficient structures for the collection of statistical data.

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Experience of Profiling

• UK has many years experience of profiling:– 1984 – move suggested from establishment (local

unit) to legal unit reporting– 1987 – review indicated that legal unit reporting

was not suitable for complex businesses – profiling of private sector started

– 2004 – comprehensive surveying of public sector starts following review of economic statistics

• ONS has retained a profiling team since 1987.

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Current criteria for profiling

• Private sector enterprises with 250+ persons employment with secondary activity of 125+ persons employment.

• Local Authorities with 3000+ employment.• Central Government with 2500+ employment.• Referrals because of survey response

problems, often through mergers and takeovers.

• Approx 2500 cases fall within the criteria, all profiled within a 4 year rolling programme.

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Tools used in profiling

• A computer generated template identifies existing enterprises and their legal units, local units and their reporting structures within domestic enterprise groups.

• A further tool permits graphical presentation of the legal unit tree structure.

• A separate template provides communication of the results of profiling in structured form to all users.

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Why profile Local Authorities and Central Government

• Recommendations from the Review of Statistics for Economic Policy-making by Christopher Allsopp 2004 to improve the range and usefulness of economic data produced by the ONS.

• Project set up in the Business Registers Unit (BRU) to look specifically at the treatment of the large complex businesses including local authorities and central government.

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Criteria for Local Authorities and Central Government

• Structures differ from private sector

• Initial concerns about the management of schools led to a focus on local authorities where employment was being reported incorrectly

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Reasons for the local authority employment problems

• Local authorities gave limited autonomy to schools who set up their own payroll schemes.

• This was aggravated by increases in the use of casual staff, e.g. supply teachers.

• This led to confusion in completing the Business Register Survey which updates the IDBR and the Monthly Wages and Salaries Survey

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Current situation

• This led to the creation of an employment based trigger for selection; ratio of taxed employees (PAYE) to survey employees outside the range 0.9 and 1.1.

• Used for both local and central government.

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Diagram of Local Authority

ENTERPRISE 1

RU FORTHE WHOLE OF ENTERPRISE 1

ISRU FORSCHOOL A

ISRU FORSCHOOL B

ISRU FORSCHOOL C

ISRU FORSCHOOL D

ISRU FORSCHOOL E

SITE OF SCHOOL

A

SITE OFSCHOOL

B

SITE OFSCHOOL

C

SITE OFSCHOOL

D

SITE OFSCHOOL

E

SITE OFTOWN HALL

SITE OF LIBRARY

SITE OF HOUSINGOFFICE

SITE OF HOSPITAL

SITE OF PARKS DEPT

PAYE FOR SCHOOL A

PAYE FOR SCHOOL B

PAYE FOR SCHOOL C

PAYE FOR ALL

EMPLOYEES EXCEPT

SCHOOLS

PAYE FOR SCHOOL D IN ENTERPRISE 2

OUTSOURCEDPAYROLL PROVIDER

PAYE FOR SCHOOL E IN ENTERPRISE 3

OUTSOURCEDPAYROLL PROVIDER

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Industrial Classification Issue

• Business Register Survey responses have highlighted the issue of misclassification of schools between primary and secondary education.

• Coding is now based on the business descriptions returned by the local authority

• An automated coding tool is used Automatic Coding Text Recognition (ACTR).

• ACTR knowledge based updated for the differences in educational establishments.

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Other issues for public sector profiling

• Arms Length Management Organisations set up by the local authority (LA) to manage building and maintenance of any property that they own.

• Private Finance Initiatives (PFIs) – provides a way of funding major capital investments. Works like a joint venture. Consists of a partnership between LA bodies, Health Authorities and construction companies

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Success of profiling

• Correct structure means benefits to survey response and coherence of national statistics

• Lessens the burden on the business

• Methodological Report concludes that business profiling is an important tool in ensuring the integrity of the IDBR both in accuracy and quality.

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Final Comments

• Any questions on how UK Profile?

• Any questions on example used?

• Any other questions?


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