The Integrated Approach toThe Integrated Approach toEconomic StatisticsEconomic Statistics
“The Canadian Approach” “The Canadian Approach” Friends of the Chair Group on Integrated Economic Friends of the Chair Group on Integrated Economic StatisticsStatistics
Marie Brodeur, Michel GirardMarie Brodeur, Michel GirardBern, SwitzerlandBern, Switzerland
June, 2007June, 2007
Statistics CanadaStatistique Canada
Overview of the presentation
1. Historical Context
2. UES Background
3. Integrated Approach Principles
4. Survey Characteristics
4. Business Register
6. Sampling
7. Enterprise Financial Program
8. Use of Tax Data/Chart of Accounts
9. Data Processing
10. Management of the UES
11. Future Directions
Statistics CanadaStatistique Canada
1. Historical Context
Before 1986, various production accounts were not synchronized and developed independently of IE accounts
1986: From 3 GDP measures to a unique one Beginning of the reconciliation period
1997 Historical Revision Further integration of concepts + SNA 1993 Implementation of NAICS/Harmonization of
classificationsMake uniform definition public sectorFirst real step towards integration
Program to Improve Provincial Economic Statistics (PIPES)Fiscal programs
Statistics CanadaStatistique Canada
Fiscal Programmes
Tendency to use SNA statistics because of their coherence From survey data and government statistics –
Financial Management System to,To production accounts, IE accounts
Higher quality and coherence of regional statisticsHST allocationEqualization Eventually First Nation Sales Tax
Coherence (structure) - consistency (frequency)
Statistics CanadaStatistique Canada
2. UES Background
Major project to improve provincial statistics (1996)
Occasion to improve consistency, coherence, breadth and depth of business survey data
More detailed Industry & Commodity data
Creation of Enterprise Statistics Division (ESD)
Gradual Expansion of Surveys; Covers 65% of GDP
Statistics CanadaStatistique Canada
3. Integrated Approach Principles
Use of Single, Unduplicated Frame -- the BR
Common Sample Design Methodology
Maximum Use of Tax Data
Reduction of Response Burden
Integrated Questionnaire simple language; harmonized concepts / common variables
Statistics CanadaStatistique Canada
3. Integrated Approach Principles (continued)
Centralized Data Collection
Enterprise Portfolio Managers
Common Generic Processing Systems and Methods
Centralized Warehouse for processing and analytical purposes
Statistics CanadaStatistique Canada
4. Survey Characteristics
Separate Enterprise & Establishment Surveys 64 Establishment Surveys Over 55,000 collection entities representing about
68,000 establishments (17K replaced by tax for RY 2007)
Centralized Collection -- $3.5 million budget Smallest businesses estimated through tax data
Statistics CanadaStatistique Canada
5. Business Register (BR)
BR covers all sectorsAll economic units producing goods and
services in Canada Incorporated and unincorporated businesses Complex and simple enterprises Structure for Reference Year 2007
LegalOperational
Updated with Administrative Data
Statistics CanadaStatistique Canada
Types of Administrative (Tax) Data
From the Canadian Revenue Agency (CRA)
Agreement between CRA and STC T1 (unincorporated businesses) T2 (incorporated businesses) T4 (pay slips) GST (goods and service tax) PD7 (payroll deduction accounts)
Statistics CanadaStatistique Canada
BR Structure
Business Accounting
Investment centreProfit centreCost centreRevenue centre
Statistical Structure
EnterpriseCompanyEstablishmentLocation
Statistics CanadaStatistique Canada
Deliniation of the statistical units
Statistical structure: Conversion of operating structure Pros:
Creates standardized structures that support sampling Provides the basis for complete and unduplicated reporting
Cons: Creates many units that are identical to the units recorded in the
operating structure Creates units and structures that do not correspond to the real world
organizational components Do not treat each enterprise the same way Add complexity to the data collection process Coherence analysis is more difficult to perform
Use the operating structure instead of the statistical structure starting with RY 2007
Recommandations
Statistics CanadaStatistique Canada
ABCLtd
Profit centre
Profit centre
Investment centre
Using the operating structure
Cost Centre
ABCLtd
Profit centre
Profit centre
Profit centre
Profit centre
Using the operating structure
Cost Centre
Cost Centre
5. Sampling
Stratified Random Sample
Industry (NAICS 4) Province Size
1 Take-all stratum2 Take-some strata (50% of units replaced by
tax)Take-none strata (under thresholds)
6. Sampling
Statistics CanadaStatistique Canada
Stratification in One Look
Take-some 2
Cell
Must takeunits
Exclusion Thresholds:
To reduce response burden on small enterprises
Sam
plin
g re
venu
e
Take-all
Take-some 1
Take-none
T2
T1 Take-None:
Sample of e-filers
T2 Take-None:
Census of General Index of Financial Information (GIFI)
ROYCE-MARANDA THRESHOLDS
Main sample to be surveyed
Not eligible for tax : questionnaire
Tax replaced
Characteristic survey (some Services surveys) or
questionnaire (all other divisions)
T1
Main sample to be surveyed
RY2007 Methodology: Tax Replacement
Monitor the size, the financial structure and position of the corporate sector
Business Register Survey of complex enterprises over $250 millions in
revenues or assets Consolidated Balance Sheets and Income
Statements, corporate taxation Use of Tax data
7. Enterprise Financial Program
Statistics CanadaStatistique Canada
Enterprise Content
QFSS: Quarterly Survey of Financial StatementsBS, income statements, change in financial
position, financing position, rate of return and other financial ratios
Corporate profits and CCASector accounts
AFTS: Annual Financial and Taxation SurveyQSFS + Public Accounts (GBE) + Tax Data
Statistics CanadaStatistique Canada
8. Use of Tax data
Objective is to substitute 50% of simple establishments.
Direct Data Replacement for annual surveys usingT1(unincorporated)T2 (incorporated)
Facilitated by the Chart of Accounts (COA). Result
Almost 65% of units replaced by tax data Impact of 27% in the total estimate
Statistics CanadaStatistique Canada
DISSEMINATION
COLLECTION
Chart of Accounts
SalesOperatingrevenue Cost of
sales
Grossprofit Expenses
EBIT
OutputsInputs
Valueadded
Shipments OperatingSurplus
GDP
LINK, BRIDGE, CONCORDANCE
Expected Benefits of a Chart of Accounts
Standardization in business data collection Higher survey response Increase in quality of data Comparison of data from various sources Increase efficiency in using administrative data
Statistics CanadaStatistique Canada
Links to Chart of Accounts
CHART OF
ACCOUNTEstablishment
Legal entity
Enterprise
UES: Use of Tax Data
Validation (comparison)Verify dubious collected data against the
equivalent tax data record Imputation
One of the methods used for non-response Estimation
Below take-noneDirect Data Replacement Some annual surveys 100% tax (Taxi &
Limousines, Survey of Mapping) Update Business Register Allocation of survey data (use tax revenues, salaries and
expenses)
Statistics CanadaStatistique Canada
Develop centralized systems Move away from stand-alone Single point of access for security
Integrated Questionnaire Metadata System Edit and imputation Allocation and Estimation Data Warehouse
9. Centralized Processing Systems and Databases
Statistics CanadaStatistique Canada
Centralized CollectionCentralized Collection
Mailout(38K CEs)
Pre-Contact(17K Businesses)
Edit / Verification(BLAISE)
Receipt(75% target)
Delinquent Follow-Up
Capture / Imaging
“Clean” Records
Score Function
Enterprise Portfolio Managers
Top 350 enterprises in Canada Status
Platinum, Gold, Silver, Bronze Personal visits Enterprise Profiling Coordination of mail-out and collection Enterprise/ Establishment coherence Holistic Response Management
Strategic Response UnitEscalation Process / Statistics Act
Statistics CanadaStatistique Canada
Post-Collection ProcessingPost-Collection Processing
Pre-Grooming
Allocation / Estimation
Edit & Imputation
“Clean” Records
Central Data Store
Subject Matter Review & Correction
Tool
Tax Data
USTART
10. Management of the UES
ESD provides functional support and coordination A series of committees is charged with process
clarification & decision making
Project Management Team
Operations Management Committee
FrameOperations
SamplingTax Data
OperationsContent /Collection
ProcessingOperations
11. Future Directions
Business Register Redesign for RY2007
North American Product classification System
Service inputs
Data Integration Project
Make a more efficient use of tax data
“Holistic Response Management” strategy
Welcome new surveys
Statistics CanadaStatistique Canada