Inventory of methods, procedures and sources used
for the compilation of deficit and debt data and the
underlying government sector accounts according to
ESA2010
Republic of Slovenia
December 2015
Background
Compilation and publishing of the Inventory of the methods, procedures and sources used to
compile actual deficit and debt data is foreseen by Council Regulation 479/2009, as amended.
According to Article 8.1: “The Commission (Eurostat) shall regularly assess the quality both
of actual data reported by Member States and of the underlying government sector accounts
compiled according to ESA 95.... Quality of actual data means compliance with accounting
rules, completeness, reliability, timeliness, and consistency of the statistical data. The
assessment will focus on areas specified in the inventories of Member States such as the
delimitation of the government sector, the classification of government transactions and
liabilities, and the time of recording.”
In line with the provisions of the Regulation set up in Article 9, "Member States shall provide
the Commission (Eurostat) with a detailed inventory of the methods, procedures and sources
used to compile actual deficit and debt data and the underlying government accounts. The
inventories shall be prepared in accordance with guidelines adopted by the Commission
(Eurostat) after consultation of CMFB. The inventories shall be updated following revisions
in the methods, procedures and sources adopted by Member States to compile their statistical
data".
The content of the Inventory and the related guidelines have been endorsed by the Committee
on Monetary, Financial and Balance of Payments statistics in June 2012 and are followed by
all EU Member States. This version introduces references to the ESA2010 as well as some
updates of the relevant topics mirroring the changes introduced by the ESA2010.
2
Contents
A.
Institutional arrangements, sources, procedures and methods used
for the calculation of deficit and debt data ............................................. 7
1.
General government ..................................................................................................... 7
1.1.
Central government sub-sector (S.1311) .............................................................. 7
1.2.
State government sub-sector (S.1312) .................................................................. 8
1.3.
Local government sub-sector (S.1313) ................................................................. 8
1.4.
Social security funds sub-sector (S.1314) ............................................................. 8
2. Institutional arrangements .......................................................................................... 9
2.1.
Institutional responsibilities for the compilation of general government deficit
and debt data ........................................................................................................ 9
2.1.1
Existence of an EDP unit/department .......................................................... 11
2.1.2
Availability of resources for the compilation of GFS data .......................... 11
2.2.
Institutional arrangements relating to public accounts..................................... 12
2.2.1
Legal / institutional framework.................................................................... 12
2.2.2
Auditing of public accounts ......................................................................... 13
2.2.2.1
2.2.2.2
General government units .....................................................................13
Public units, not part of general government ..........................................15
2.3.
Communication ................................................................................................... 16
2.3.1
Communication between actors involved in EDP ....................................... 16
2.3.1.1
2.3.1.2
2.3.2
Agreement on co-operation ...................................................................16
Access to data sources based on public accounts .................................17
Publication of deficit and debt statistics ...................................................... 17
2.3.2.1
2.3.2.2
3.
Publication of EDP data .........................................................................17
Publication of underlying government ESA2010 accounts .....................18
EDP tables and data sources ..................................................................................... 19
3.1.
EDP table 1 .......................................................................................................... 19
3.1.1
Compilation of Maastricht debt ................................................................... 19
3.1.1.1
3.1.1.2
3.1.1.3
3.1.1.4
Specification of debt instruments ...........................................................19
Data sources used for the compilation of Maastricht debt ......................19
Amendments to basic data sources .......................................................20
Consolidation of Maastricht debt ............................................................20
3.2.
Central Government sub-sector, EDP table 2A and 3B..................................... 20
3.2.1 Data sources for main Central Government unit : “The State” ....................... 20
3.2.1.1
3.2.1.2
3.2.1.3
Details of the basic data sources ...........................................................23
Statistical surveys used as a basic data source .....................................24
Supplementary data sources and analytical information ........................24
3.2.1.3.1
3.2.1.3.2
3.2.1.4
3.2.2
Supplementary data sources used for the compilation of non-financial accounts .. 24
Supplementary data sources used for the compilation of financial accounts ......... 25
Extra-budgetary accounts (EBA) ...........................................................25
Data sources for other Central Government units ...................................... 28
3.2.2.1
3.2.2.2
3.2.2.3
Details of the basic data sources ...........................................................30
Statistical surveys used as a basic data source .....................................31
Supplementary data sources and analytical information ........................31
3.2.2.3.1
3.2.2.3.2
3.2.3
Supplementary data sources used for the compilation of non-financial accounts .. 31
Supplementary data sources used for the compilation of financial accounts ......... 31
EDP table 2A ............................................................................................... 32
3.2.3.1
3.2.3.2
3.2.3.3
3.2.3.3.1
Working balance - use for the compilation of national accounts .............32
Legal basis of the working balance ........................................................32
Coverage of units in the working balance ..............................................32
Units to be classified outside the subsector, but reported in the WB ..................... 32
3
3.2.3.3.2
3.2.3.4
3.2.3.4.1
3.2.3.4.2
3.2.3.4.3
3.2.3.5
3.2.3.6
3.2.3.8
3.2.4
Units to be classified inside the subsector, but not reported in the WB ................. 32
Accounting basis of the working balance ...............................................33
Accrual adjustment relating to interest D.41, as reported in EDP T2 ...................... 33
Accrual adjustments reported under other accounts receivable/payable F.8 in EDP
T2 ............................................................................................................................. 34
Other accrual adjustments in EDP T2 ....................................................................... 36
Completeness of non-financial flows covered in the working balance ....36
Financial transactions included in the working balance ..........................36
Net lending/net borrowing of central government ...................................37
EDP table 3B ............................................................................................... 38
3.2.4.1
3.2.4.2
3.2.4.3
Transactions in financial assets and liabilities ........................................38
Other stock-flow adjustments.................................................................39
Balancing of non-financial and financial accounts, transactions in F.8 ...40
3.3.
State government sub-sector, EDP table 2B and 3C .......................................... 43
3.4.
Local government sub-sector, EDP table 2C and 3D ........................................ 44
3.4.1
Data sources for Local Government main unit: local budgets .................... 44
3.4.1.1
3.4.1.2
3.4.1.3
Details of the basic data sources ...........................................................44
Statistical surveys used as a basic data source .....................................45
Supplementary data sources and analytical information ........................45
3.4.1.3.1
3.4.1.3.2
3.4.2
Supplementary data sources used for the compilation of non-financial accounts .. 45
Supplementary data sources used for the compilation of financial accounts ......... 45
Data sources for other Local Government units.......................................... 46
3.4.2.1
3.4.2.2
3.4.2.3
3.4.3
Details of the basic data sources ...........................................................46
Statistical surveys used as a basic data source .....................................47
Supplementary data sources and analytical information ........................47
EDP table 2C ............................................................................................... 47
3.4.3.1
3.4.3.2
3.4.3.3
Working balance - use for the compilation of national accounts .............47
Legal basis of the working balance ........................................................47
Coverage of units in the working balance ..............................................47
3.4.3.3.1
3.4.3.3.2
3.4.3.4
Accounting basis of the working balance ...............................................48
3.4.3.4.1
3.4.3.4.2
3.4.3.4.3
3.4.3.5
3.4.3.6
3.4.3.7
3.4.3.8
3.4.4
Units to be classified outside the subsector, but reported in the WB ..................... 47
Units to be classified inside the subsector, but not reported in the WB ................. 48
Accrual adjustments relating to interest D.41, as reported in EDP T2C................... 48
Accrual adjustments reported under other accounts receivable/payable F.8 in EDP
T2C ........................................................................................................................... 48
Other accrual adjustments in EDP T2C ..................................................................... 48
Completeness of non-financial flows covered in the working balance ....48
Financial transactions included in the working balance ..........................48
Other adjustments reported in EDP T2C................................................48
Net lending/net borrowing of local government ......................................48
EDP table 3D ............................................................................................... 49
3.4.4.1
3.4.4.2
Transactions in financial assets and liabilities ........................................49
Other stock-flow adjustments.................................................................50
3.5.
Social security sub-sector, EDP table 2D and 3E .............................................. 51
3.5.1
Data sources for Social Security Funds main units : xxx ............................ 51
3.5.1.1
3.5.1.2
3.5.1.3
Details of the basic data sources ...........................................................51
Statistical surveys used as a basic data source .....................................52
Supplementary data sources and analytical information. .......................52
3.5.1.3.1
3.5.1.3.2
3.5.2
3.5.2.1
3.5.2.2
3.5.2.3
Supplementary data sources used for the compilation of non-financial accounts .. 52
Supplementary data sources used for the compilation of financial accounts ......... 52
Data sources for other Social Security units ............................................... 53
Details of the basic data sources ...........................................................53
Statistical surveys used as a basic data source .....................................53
Supplementary data sources and analytical information ........................54
4
3.5.2.4
3.5.3
Extra-budgetary accounts ......................................................................54
EDP table 2D ............................................................................................... 54
3.5.3.1
3.5.3.2
3.5.3.3
Working balance - use for national accounts compilation .......................54
Legal basis of the working balance ........................................................54
Coverage of units in the working balance ..............................................54
3.5.3.3.1
3.5.3.3.2
3.5.3.4
Accounting basis of the working balance ...............................................55
3.5.3.4.1
3.5.3.4.2
3.5.3.4.3
3.5.3.5
3.5.3.6
3.5.3.7
3.5.3.8
3.5.4
3.5.4.1
3.5.4.2
Units to be classified outside the subsector, but reported in the WB ..................... 54
Units to be classified inside the subsector, but not reported in the WB ................. 54
Accrual adjustments relating to interest D.41, as reported in EP T2D ..................... 55
Accrual adjustments reported under other accounts receivable/payable F.8 in EDP
T2D ........................................................................................................................... 55
Other accrual adjustments in EDP T2D .................................................................... 55
Completeness of non-financial flows covered in the working balance ....55
Financial transactions included in the working balance ..........................55
Other adjustments reported in EDP T2D................................................55
Net lending/net borrowing of social security funds .................................55
EDP table 3E ............................................................................................... 56
Transactions in financial assets and liabilities ........................................56
Other stock-flow adjustments.................................................................57
3.6.
Link between EDP T2 and related EDP T3 ....................................................... 58
3.6.1
Coverage of units ......................................................................................... 58
3.6.2
Financial transactions ................................................................................. 58
3.6.3
Adjustments for accrued interest D.41......................................................... 59
3.6.4
Other accounts receivable/payable F.8 ....................................................... 59
3.6.5
Other adjustments/imputations .................................................................... 60
3.7.
General comments on data sources .................................................................... 61
3.8.
EDP table 4 .......................................................................................................... 61
3.8.1
Trade credits and advances ......................................................................... 61
3.8.2
Amount outstanding in the government debt from the financing of public
undertakings ................................................................................................................. 61
4. Revision policy used for annual GFS ........................................................................ 62
4.1.
Existence of a revision policy in Slovenia .......................................................... 62
4.1.1
Relating to deficit and non-financial accounts ............................................ 62
4.1.2
Relating to debt and financial accounts....................................................... 63
4.2.
Reasons for other than ordinary revisions ......................................................... 63
4.3.
Timetable for finalising and revising the accounts ............................................ 63
B. Methodological issues ................................................................................... 64
5.
Sector delimitation – practical aspects ..................................................................... 64
5.1.
Sector classification of units ............................................................................... 64
5.1.1
Criteria used for sector classification of new units ..................................... 65
5.1.2
Updating of the register ............................................................................... 65
5.1.3
Consistency between different data sources concerning classification of
units
66
5.2.
Existence and classification of specific units ..................................................... 66
6. Time of recording ....................................................................................................... 68
6.1.
Taxes and social contributions ........................................................................... 68
6.1.1
Taxes ............................................................................................................ 68
6.1.2
Social contributions ..................................................................................... 69
6.2.
EU flows ............................................................................................................... 70
6.2.1
General questions ........................................................................................ 70
6.2.2
Cash and Schengen facility:......................................................................... 71
6.2.3
Jeremie/Jessica ............................................................................................ 71
5
Market Regulatory Agencies ........................................................................ 71
6.2.4
6.3.
Military expenditure ............................................................................................ 73
6.3.1
Types of contracts ........................................................................................ 73
6.3.2
Borderline cases........................................................................................... 73
6.3.3
Recording in national accounts ................................................................... 73
6.4.
Interest expenditure............................................................................................. 73
6.4.2
Interest Revenue ........................................................................................... 74
6.4.3
Consolidation ............................................................................................... 74
6.4.4
Recording of discounts and premiums on government securities ................ 74
6.5.
Time of recording of other transactions ............................................................. 74
7. Specific government transactions ............................................................................. 76
7.1 Guarantees, debt assumptions .................................................................................. 76
7.1.1
Guarantees on borrowing ............................................................................ 76
7.1.1.1
7.1.1.2
7.1.1.3
7.1.1.4
7.1.1.5
New guarantees provided ......................................................................76
Treatment of guarantees called .............................................................77
Treatment of repayments related to guarantees called ..........................77
Treatment of write-offs by government in public accounts of government
assets that arose from calls, if any ........................................................78
Data sources .........................................................................................78
7.1.2
Guarantees on assets ................................................................................... 78
7.2 Claims, debt cancellations and debt write-offs ......................................................... 78
7.2.1
New lending ................................................................................................. 78
7.2.2
Debt cancellations ....................................................................................... 79
7.2.3
Repayments of claims ................................................................................... 79
7.2.4
Debt write-offs ............................................................................................. 79
7.2.5
Sale of claims ............................................................................................... 79
7.3 Capital injections in public corporations ................................................................. 79
7.4 Dividends ................................................................................................................... 80
7.5 Privatization ............................................................................................................... 80
7.6 Public Private Partnerships ...................................................................................... 81
7.7 Financial derivatives ................................................................................................. 82
7.7.1
Types of derivatives used ............................................................................. 83
7.7.2
Data sources ................................................................................................ 83
7.7.3
Recording ..................................................................................................... 83
7.8 Payments for the use of roads ................................................................................... 83
7.9 Emission permits ....................................................................................................... 84
7.10 Sale and leaseback operations ................................................................................ 84
7.11 Securitisation ........................................................................................................... 85
7.12 UMTS licenses ......................................................................................................... 85
7.13 Transactions with the Central Bank ....................................................................... 85
7.14 Lump sum pension payments .................................................................................. 86
7.15 Pension schemes ...................................................................................................... 86
Annex I –
List of general government units
6
Institutional arrangements, sources, procedures and methods used for the calculation of deficit
and debt data
A. Institutional arrangements, sources, procedures and methods
used for the calculation of deficit and debt data
This chapter provides a summary description on the general government sector components
and specifies institutional responsibilities and basic data sources used for EDP tables and for
the compilation of general government national accounts. Special attention is given to EDP
tables: detailed description of components of the working balance and the transition into EDP
B.9 (net lending/net borrowing); compilation of Maastricht debt and of stock-flow
adjustments; explanation of the link between EDP table 2 and 3, balancing process and
statistical discrepancies.
1. General government
This section describes the coverage of the general government sector and its sub-sectors. In
attached Annex 1 complete list of the general government units is given for 2013 and 2014.
In the general government sector three groups of units are distinguished. The first group is
“direct budget units” at the central and at the local government level. Direct budget units are
with all transactions included in the budgetary statistics at the central and at the local
government level and are by definition included in the general government sector. The second
group is “indirect budget units”; this group includes those public service providers (hospitals,
universities, schools, etc.) which are according to the 50% criterion classified as non-market
units. The third group includes public corporations which are identified as non-market
producers after applying the 50% criterion, the Slovenian Restitution Fund and the Capital
Fund. Delimitation of the general government sector is regularly maintained. In 2004 the
Statistical Office of the Republic of Slovenia (SORS) set up an official expert group
composed of representatives of SORS, the Ministry of Finance, the Bank of Slovenia and the
Agency for Public Records and Related Services (AJPES, for details see chapter 2.1.2) with
the purpose of maintaining the institutional sector of all units in the Business Register of
Slovenia in line with ESA2010. According to ESA2010 criteria all together 22 units were
reclassified from inclusive 2010 on into the general government sector, of which 18 units at
the central government level and 4 at the local government level.
The general government sector is composed of three sub-sectors: central government
(S.1311), local government (S.1313) and social security funds (S.1314).
1.1. Central government sub-sector (S.1311)
The main units of the central government sub-sector are direct budget units: ministries, state
bodies, courts, offices and administrative units established by central authorities (108 units).
This subsector includes also public funds at the central government level (9 units), . public
service providers and public agencies (340 units, of which 27 hospitals and 30 universities
and their members), legal persons of private law (6 units) and non-market public corporations
(16 units; after the reorganization of the Slovenian Railways into four units in 2011, two of
them, namely the Slovenian Railways Passenger Transport and the Slovenian Railways
Infrastructure, were included in the central government sub-sector as non-market producers).
7
Institutional arrangements, sources, procedures and methods used for the calculation of deficit
and debt data
Among corporation is one extra budgetary public fund included – Slovenian Sovereign
Holding (SSH) restructured from the Slovenian Restitution Fund (SRF). With ESA 2010 also
the Agency of the Republic of Slovenia for Commodity Reserves (SPE) was included in the
central government sector. For two funds managed by SID Bank (Slovenian Export Bank) on
the account and in the name of central government all transactions with effect on B.9 were
with ESA2010 revision included in the central government as other B.9 adjustments. Number
of units is given for 2014 and all these units have annual accounting data as the main data
source for the compilation of non-financial accounts and EDP tables. In 2014 the central
government sub-sector thus in total includes 479 units.
1.2. State government sub-sector (S.1312)
Not applicable.
1.3. Local government sub-sector (S.1313)
The main units of the local government sub-sector are municipalities as direct budget units
(211 units as local budgets). The local government level also includes public funds at local
level (9 units), local communes (795 units), indirect budget units of public service providers
and public agencies (1011 units), legal persons of private law (9 units), associations of
municipalities (3 units) and non-market public corporations (19 units). The local government
sub-sector in 2014 in total includes 2057 units having annual accounting data as the main data
source for the compilation of non-financial accounts and EDP statistics.
1.4. Social security funds sub-sector (S.1314)
The sub-sector social security funds include three units: the Health Social Security Fund, the
Pension Social Security Fund and the Capital Fund (extra budgetary fund).
Further details relating to practical aspects of sector classification for individual units into
general government sector could be found in Chapter B, section 1.
8
Institutional arrangements, sources, procedures and methods used for the calculation of deficit
and debt data
2. Institutional arrangements
This section provides general information on institutional arrangements relating to the
production and dissemination of government deficit and debt statistics:
• responsibility of national authorities for the compilation of individual EDP tables and
underlying government national accounts, as defined by the ESA2010 Transmission
Programme;
• institutional arrangements relating to public accounts which are used by statistical
authorities for the compilation of government national accounts and EDP tables;
• general overview about bookkeeping system used by public units, internal quality
checks and external auditing;
• communication between individual national authorities involved in EDP;
• publishing of deficit and debt statistics.
Legal basis for the compilation of GFS and EDP data
Fiscal data of budgets and accounting data of government units (direct and indirect budget
units) are prepared according to the Accounting Act (2002) and relevant accounting standards.
Government national accounts and EDP statistics are prepared in line with relevant EU
legislation, the National Statistics Act and the Annual Programme of Statistical Surveys.
Responsibilities for the compilation of these statistics is further specified in the Memorandum
of Understanding in the Field of Macroeconomics Statistics (2004, amended in 2007 and
2009) signed between SORS, the Ministry of Finance and the Bank of Slovenia. The
Memorandum of Understanding in the Field of Macroeconomics Statistics is in Annex 3.
2.1. Institutional responsibilities for the compilation of general government
deficit and debt data
This section describes institutional responsibilities for compilation of Government Finance
Statistics (national accounts for general government and EDP tables). Further related
information is described in section 2.3 Communication.
National accounts data for general government are transmitted to Eurostat1 via the following
tables (see the related EU legislation)2 :
Table 2 – Main aggregates of general government (annual data)
Table 6 – Financial accounts by sector (annual data)
Table 7 – Balance Sheets for financial assets and liabilities (annual data)
Table 801 – Non-financial accounts by sector (quarterly)
Table 9 – Detailed Tax and Social Contribution Receipts by Type of Tax or Social
Contribution and Receiving Sub-sector (annual data)
Table 11 – Expenditure of General Government by function (annual data)
Table 25 - Quarterly Non-financial Accounts of General Government
1
2
http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:174:0001:0727:EN:PDF
9
Institutional arrangements, sources, procedures and methods used for the calculation of deficit
and debt data
Table 26 – Balance sheets for non-financial assets (annual data)
Table 27 – Quarterly Financial Accounts of General Government
Table 28 – Quarterly Government Debt (Maastricht Debt) for General Government
Data on government deficits and debt levels are reported to Eurostat twice a year (in April and
October) in EDP notification tables3.
Table 1 - Institutional responsibilities for the compilation of general government
national accounts and EDP tables
Institutional responsibilities
SORS
(appropriate cells are crossed)
Ministry of
Finance
Bank of
Slovenia
Compilation of national accounts for general government:
Non-financial
accounts
Financial
accounts
Maastricht debt
annual
X
quarterly
X
annual
X
quarterly
X
quarterly
X
X
Compilation of EDP tables:
actual data
EDP table 1
planned data
EDP table 2
(actual data)
EDP table 3
(actual data)
EDP table 4
deficit/surplus
X
Debt
X
other variables
X
deficit/surplus
X
X
X
Debt
X
other variables
X
2A central government
X
2B state government
-
2C local government
X
2D social security funds
X
3A general government
X
X
X
3B central government
X
X
X
3C state government
-
3D local government
X
X
3E social security funds
X
X
X
General government national accounts and EDP tables are the responsibility and compiled by
SORS (in Slovene: Statistični urad Republike Slovenije). ESA non-financial accounts tables,
3
http://epp.eurostat.ec.europa.eu/portal/page/portal/government_finance_statistics/excessive_deficit/edp_notificat
ion_tables
10
Institutional arrangements, sources, procedures and methods used for the calculation of deficit
and debt data
debt, EDP tables and reporting are the responsibility of SORS. Financial accounts data
compiled by the Bank of Slovenia are used in EDP tables 3. All data for debt compilation are
prepared by the Ministry of Finance. Planned figures for each EDP reporting are prepared by
the Ministry of Finance and SORS. Work on each round of EDP reporting is supported by a
permanent working group of experts from all three institutions. EDP tables with annexes,
signed by the director-general of SORS, are transmitted to Eurostat in electronic form and by
surface mail by SORS. The same arrangements apply to April and October reporting.
2.1.1
Existence of an EDP unit/department
EDP statistics in SORS is responsibility of the National Accounts Department within the
Sector for Macroeconomics Statistics. Within the National Accounts Department a group of
four persons is responsible for the compilation and transmission of ESA non-financial
accounts and relevant tables for general government annually (Tables 2, 9 and 11) and
quarterly (Table 25) together with the preparation of EDP tables/annexes and notification.
Annual and quarterly financial accounts including general government are responsibility of
the Bank of Slovenia. Data for quarterly debt are prepared by the Ministry of Finance with the
cooperation of the Bank of Slovenia and with some adjustments finalized and transmitted to
Eurostat by SURS.
2.1.2
Availability of resources for the compilation of GFS data
The compilation of GFS data (ESA and EDP) by a rather small group of persons in SORS is
possible due to complete, exhaustive and timely data collection system for all units of the
general government sector.
The first main data sources for GFS are budgets: at basic account level all budget data (central
budget, municipality budgets and the budgets of the Health and the Pension Social Security
Fund – in EDP working balance). Budget reporting includes current and capital transactions
(revenue and expenditure) and financial transactions. Budgets are to SORS via the Ministry of
Finance available quarterly within one month after the end of the period in the Microsoft
Office Excel format.
The second main data source is annual accounting statements (profit and loss account and
balance sheets) of public units and corporations. For public units reporting from 2000 on
includes accrual profit-loss accounts and also parallel cash statements. These accounting
statements are adapted to statistical needs (national accounts) and are electronically collected
by a special public unit, the Agency for Public Legal Records and Related Services (AJPES).
AJPES was established in 2002; its main tasks are the collection of annual accounting
statements from all institutional sectors and the maintenance of the Business Register of
Slovenia. With part of its activities it is included in the system of official statistics as so-called
authorised producer of official statistics determined by the Medium Term Programme of
Statistical Surveys. All accounting statements are available to SORS by the end of April for
the previous year. For government units and public service providers the questionnaires
collected by AJPES are prescribed by the Ministry of Finance. Exhaustive and complete data
for all government units are for work of the GFS group prepared and analysed in the National
Accounts Department within the work on GDP compilation. GFS group is also responsible for
11
Institutional arrangements, sources, procedures and methods used for the calculation of deficit
and debt data
providing data of the general government sector upon request to other international and
national organizations (OECD, VAT Report for EU own resources, etc.).
The third main data source is the Whole Government Accounts (WGA – Premoženjske
bilance) collected by the Ministry of Finance (from 2005 onwards). This data are much more
detailed and all government units are included (except public corporations in general
government, for which accounting data and balance sheets for corporations are available).
However, the source is available in June/July each year and is used for the second EDP
notification in the October.
2.2. Institutional arrangements relating to public accounts
Generally, “public accounts” are basic data source for the GFS compilation, i.e. EDP tables as
well as annual and quarterly accounts for general government. Public accounts are used by
public units and refer to accounting records and relating accounting outputs (e.g. financial
statements) based on the accounting framework defined by a national legislation. This section
provides a general overview on institutional responsibilities relating to public accounts.
Further details on public accounts for individual government sub-sectors are described under
relevant sections on data sources and EDP tables.
2.2.1
Legal / institutional framework
The compilation of public accounts for direct and indirect budget units is prescribed by the
Ministry of Finance in the Accounting Act and accounting rules in the Accounting Manual.
Budgets of the central (1) and of the local government level, of the Health Social Security
Fund and the Pension Social Security Fund, as well as accounts and balance sheet for direct
and indirect budget units (public service providers) are based on actual (cash) transactions and
include current account, capital account, financial account transactions and balance sheets.
The forms of accounts and statements are different for direct and for indirect budget units and
are prescribed by the Ministry of Finance. The system is consistent with the International
Monetary Fund's recommendations for Government Finance Statistics. Public service
providers parallel to cash balances annually prepare also profit and loss account on an accrual
basis according to similar accounting standards and rules as non-financial corporations. Public
corporations use the same accounting standards and rules as private corporations in line with
the international accounting standard for corporations. Accounting rules and standards for
corporations are prescribed by the Slovenian Institute of Auditors.
Designing of accounting statements and questionnaires for annual reporting to AJPES are for
direct budget units and for public service providers prescribed by the Ministry of Finance.
At present there is no plan for further major changes or improvements of the present
accounting system and standards used by public units.
12
Institutional arrangements, sources, procedures and methods used for the calculation of deficit
and debt data
2.2.2
Auditing of public accounts
2.2.2.1 General government units
All general government units (direct and indirect budget units) should provide internal audit.
The audit is done by internal audit services or by external private experts. The internal
financial control and internal audit is developed, harmonized and supervised by the Budget
Supervision Office. Frequency of audits depends on the size of unit; for units with a budget
above approximately two million euro a budget internal audit must be performed annually and
for other units every three years.
Units in the general government sector are therefore subject to internal audit according to the
Public Finance Act which regulates the composition, preparation and execution of the budget
of the Republic of Slovenia and the budgets of local government units, the management of
assets, debts, guarantees, borrowings of central and local government and the accounting and
financial control, auditing. Provisions of this act relate to direct and indirect budget units, the
Health Social Security Fund, the Pension Social Security Fund, public funds, public
institutions and agencies. Article 100 determines that financial control of direct budget units
at central level and local government level is a system of internal inspections and internal
audits. Direct budget units organize appropriate forms of financial control for all state bodies
and organizations and other indirect budget units within their competence. The system of
control may be supplemented by organizing services of internal authorized auditors, acting
under direct budget unit. The Accounting Act defines in article 53 more in detail which
indirect budget units are obliged to internal audit (for description of article 53 see chapter
2.2.2.2).
According to the Court of Audit Act also external audit is obligatory for most units in the
general government sector and the Court of Audit is responsible for audit realization. Article
25 defines that the Court of Audit can independently determine which audits will be carried
out in a calendar year. In the selection of audits that will be carried out in a calendar year, the
Court of Audit considers also proposals of working bodies of the National Assembly, the
Government, ministries and local authorities, and it is obliged to consider at least five
proposals from the National Assembly. The Court of Audit is obliged to audit annually the
regularity of the implementation of the central budget, regularity of the business operations of
the Health Social Security Fund, the Pension Social Security Fund, and business operations of
suitable number of important municipalities, other direct and indirect budget units including
public corporations in accordance with annual programme.
In principle all units of the general government sector are audited according to above
mentioned criteria.
The subject and coverage of auditing depends on the system of internal inspections and
internal audits organized by direct and indirect budget units. With internal audits, financial
statements auditing – auditing of accounting – and auditing of compliance with regulations is
done. The subject of audit is similar to financial audit in corporations. Audit is done by bodies
and persons who are set up within the internal auditing system. In scope of audit also
monitoring of the use of funds transferred from central budget can be done.
For external auditing the Court of Audit is responsible. In implementing audits it follows the
international auditing standards adopted by the INTOSAI (the International Organization of
Supreme Audit Institutions), European guidelines for the implementation of international
13
Institutional arrangements, sources, procedures and methods used for the calculation of deficit
and debt data
INTOSAI auditing standards, and international Standards on auditing and international views
on auditing adopted by the IFAC (International Federation of Accountants). The main types
of audit are tax auditing and budget auditing. Tax auditing, which can be also referred to as
auditing of settlement and payment of taxes, has the aim to examine whether taxes were
properly accounted and paid in accordance with applicable laws, acts and decisions. For
budget auditing the main objective is to check the purposeful, correct (compliance with
regulations and accounting standards) and rational use of funds from central and local
budgetary resources, assessing the economic efficiency of units that use the resources from
the budget intended for public use, assessing the achievement of goals in other areas for
which budget resources have been provided. In this case business operations, performance
and its effectiveness and efficiency are audited – performance governmental auditing and
value for money auditing. In the scope of audit the system and subsystem of business
operations and accounting are checked, accounting documents and other documents related to
business operations are reviewed, premises, facilities and equipment used for business are
inspected and other necessary audit steps are taken to achieve the goals of audit.
Simultaneously, it is the goal of audit the reduction of costs and increase of benefits in the use
of budget funds. Audit is done in accordance with the Court of Audit Act and the rules of
procedure of the Court of Audit which sets out the organization and working methods of the
Court of Audit.
With internal and external audits all flows and accounts of units in general government sector
are audited. Regardless whether the flows and accounts are inside or outside the budget, they
are audited when the unit is under internal or external audit.
Internal audits take place for the whole time in the accounting year. The external audit by the
Court of Audit, for example of the regularity of the implementation of the central budget takes
place from 31 March, when the financial statements and accounts of the central budget are
submitted to the Court of Audit, till 1 October at the latest when all financial data, accounts,
reports and the final audit report of the Court are submitted to the National Assembly. The
procedure of preparation and adoption of the central budget is further explained in article 97
of the Public Finance Act. External audit of regularity of business operations of direct and
indirect budget units takes place based on the annual programme of the Court of Audit. Audit
begins when the decision of the audit is issued; in the decision the unit, the type of audit,
extent and timing of audit is defined. The audit cannot be carried out before 28 February of
the current year for the previous accounting year till when units are obliged to prepare the
financial statements, accounts and reports according to articles 98 and 99 of the Public
Finance Act. External audit ends when the Court of Audit submits the final audit report to the
National Assembly, the Prime Minister and the competent minister or the competent authority
of the local community.
The results of audited financial statements and financial reports are available to GFS
compilers when they are published by the Court of Audit on its website4,5. Reports are
published according to the annual programme of the Court of Audit. Audit reports mostly do
not include a risk analysis and relevant details, e.g. on payables, contingent liabilities.
4
http://www.rs-rs.si
http://www.rs-rs.si/rsrs/rsrs.nsf/PorocilaArhiv?
OpenForm&appSource=91F2455D38551D7CC1257155004755A7&start=31
5
14
Institutional arrangements, sources, procedures and methods used for the calculation of deficit
and debt data
Formally, audits by the Court of Audit are not part of the EDP compilation. The flows and
processes under audits and the results of audits do not influence and were not yet relevant for
the compilation of EDP statistics. However, GFS compilers are regularly contacted by the
Court of Audit to clarify the differences in bookkeeping transactions in public accounts
(working balances) and in the EDP statistics according to ESA.
2.2.2.2 Public units, not part of general government
According to article 57 of the Companies Act, annual accounting statements and annual
business reports of large and medium corporations, associated corporations and those small
corporations whose securities are quoted on the stock exchange are obliged to external review
or audit by an independent audit corporation in accordance with the Auditing Act which is the
basic act for this matter.
Another act that defines which units are obliged to audit is the Accounting Act. In article 53 it
provides that legal persons of public law whose revenue financed from government budget for
the accounting period exceeds around EUR 0.5 million or if the funding share of central or
local government exceeds around EUR 2.1 million are obliged to internal audit.
In several cases auditing of annual accounting statements of public corporations is done by
the Court of Audit in accordance with the Court of Audit Act. In this case tax and budget
auditing is done.
According to above mentioned criteria almost all units in the public corporation sector as
defined in ESA2010 are audited.
Audit can be carried out by a unit or person who is not in a relationship with the unit that is
being audited. In accordance with the Auditing Act, auditing in Slovenia can be carried out
only by audit companies and independent auditors that meet statutory requirements and are
enrolled in the register of auditing firms maintained by the Slovenian Institute of Auditors.
Auditors are further on supervised by the Agency for Public Oversight Over Auditing. The
main role of this agency is to provide an efficient supervision of certified auditors, auditing
companies, authorized reviewers and supervision over the work of the Slovenian Institute of
Auditors.
According to article 24 of the Court of Audit Act, the Court can independently determine
which audits will be carried out in a calendar year; this applies also to auditing of public
corporations. The plan of audits of public corporations is determined by the annual
programme of the Court of Audit.
Depending on the object and the purpose of auditing three types of audits are distinguished:
audit of financial statements and accounts, audit of compliance and audit of business.
Financial statements auditing is the most typical one and it is mostly carried out by external
auditors – it is also referred as auditing of accounting. It begins with the testing of internal
controls and continues with the examination of data from financial statements. In some cases
it is extended to other parts of accounting, especially in the forecast financial statements and
financial analysis methodology. With audit of financial statements an opinion on the truth and
fairness and reality and objectivity of financial information which the corporation presents in
its statements has to be given. By audit of financial statements and accounts all flows and all
accounts of the unit are audited.
15
Institutional arrangements, sources, procedures and methods used for the calculation of deficit
and debt data
Audit of compliance with regulations assesses whether acts, laws and other regulations, like
statutes, internal policies, regulations and professional standards, are respected and if not to
inform the competent authority to take appropriate preventive measures.
Audit of business is focused on the auditing of operations, like auditing of performance and
its effectiveness and efficiency. It covers all basic business functions (technical, personnel,
production, sales and financial), management functions (planning, preparation and
implementation of control) and information functions (handling data about the past and the
future, monitoring and analysis of data).
The external audit takes place for six months after the accounting year which is in most cases
equal to calendar year. So it takes place from January till June next year. On the other hand
internal audit takes place for the whole time in accounting year.
In accordance with article 24 of regulation on the submission of annual reports and other data
of corporations, cooperatives and unincorporated enterprises, public corporations are obliged
to submit results of audit in eight months after accounting year. The results of audited
financial statements and financial reports are published by AJPES on its website6 30 days
after the last possible day for submitting the results by corporations being audited.
The extent of audit is not the same in all cases. In most cases it includes financial statements
auditing and compliance with regulations. In some cases also auditing of operations is carried
out which contains also risk analysis. This kind of audit is carried out especially in larger
public corporations.
Regardless, in this kind of analysis AJPES is engaged as it assesses according to data received
from financial statements and financial and business reports the credit ratings of corporations.
A model used for calculating credit ratings includes European standards for credit rating
agencies and classifies Slovenian corporations into 10 credit rating scores according to their
credit risk.
2.3. Communication
2.3.1
Communication between actors involved in EDP
2.3.1.1 Agreement on co-operation
In 2004 SORS, the Ministry of Finance and the Bank of Slovenia signed the first
Memorandum of Understanding in the Field of Macroeconomics Statistics; the Memorandum
was amended in 2007 and 2009. The Memorandum is signed by the director-general of
SORS, the minister for finance and the governor of the Bank of Slovenia. It covers all aspect
of institutional responsibilities and cooperation in preparing ESA accounts and tables together
with ESA2010 transmission obligations as well as other obligations to the EU and other
international organizations in the macroeconomics statistics. Implementation of the
Memorandum is monitored by the group of representatives of the three institutions.
6
http://www.ajpes.si
16
Institutional arrangements, sources, procedures and methods used for the calculation of deficit
and debt data
Memorandum is attached in Annex 2 of this document. Work in areas covered by the
Memorandum can be organized in working groups.
EDP statistics and reporting is the responsibility of SORS. Work and cooperation with the
Ministry of Finance and the Bank of Slovenia is organized in the permanent working group of
experts of three institutions and is chaired by SORS. Group meets regularly during each
reporting round and meetings cover methodological and current statistical problems of EDP
tables’ preparation. Minutes are prepared for meetings on methodological improvements and
plans for future work and not for daily meetings covering current work and timing problems
at each reporting.
Data collection system is described in chapter 2.1.2 above. All additional and detailed data for
the compilation of EDP tables and particularly Annex 3 tables are available to the permanent
working group by inviting relevant experts from both institutions, particularly from the
Ministry of Finance.
SORS has agreements also with all other institutions providing data sources, specifying the
scope of data as well as deadlines and other modalities of delivery and availability (the
Financial Administration (before 2014 Tax Administration Office and the Custom Office),
AJPES, etc.). The obligation of these institutions to provide data is primarily determined by
the Annual Programme of Statistical Surveys.
2.3.1.2 Access to data sources based on public accounts
As mentioned in chapter 2.1.2 all data of general government units and budgets data of the
central budget, municipality budgets and of social security funds are available in electronic
format to SORS and processed accordingly for needs of the general government accounts and
EDP work. Data in sources are available at unit level and at basic account level. From all
other databases of the Ministry of Finance (Treasury, individual transactions within the
central budget accounts, etc.) detailed data are available on request to the GFS group for EDP
statistics.
2.3.2
Publication of deficit and debt statistics
2.3.2.1 Publication of EDP data
SORS publishes main EDP figures on the last working day in March and September each
year. This is done with a press release and a press conference and includes main aggregates of
the general government sector (table 2 of the ESA Transmission Programme and debt
figures); data are also published in the SI-STAT database7. After the competition of EDP
verification all EDP tables of Annex 1 are published with the press release one or two days
before publishing by Eurostat and are available at SORS website.8 SORS also makes available
the whole history of EDP tables of Annex 1.9 All forms of publications are available in
Slovene and English. In this document, only links to English publications are provided.
7
http://pxweb.stat.si/pxweb/Database/Economy/03_national_accounts/25_03149_
government_accounts/25_03149_government_accounts.asp
8
http://www.stat.si/doc/vsebina/03/EDP_Slovenija_ang.xls
9
http://www.stat.si/doc/vsebina/03/Historical%20EDP%20tables.xls
17
Institutional arrangements, sources, procedures and methods used for the calculation of deficit
and debt data
The Ministry of Finance also publishes regular annual EDP report with explanatory notes
after EDP verification in April and October10. The same document is available at SORS's
website11.
2.3.2.2 Publication of underlying government ESA2010 accounts
ESA2010 accounts of the general government sector (tables 2, 9 and 11), quarterly Maastricht
debt (table 28) and quarterly general government non-financial accounts (table 25) are
published with a press release12 before transmission to Eurostat and are available at SORS
website in standard ESA tables in Excel format and in the SI-STAT database.13 At SORS
website are also relevant explanatory notes of sources and methods are provided.14
Annual and quarterly financial accounts (tables 6, 7 and 27) are prepared, published15 and
transmitted to Eurostat by the Bank of Slovenia.
10
http://www.mf.gov.si/si/delovna_podrocja/tekoca_gibanja_v_javnih_financah/
porocilo_o_primanjkljaju_in_dolgu_sektorja_drzave/
11
http://www.stat.si/doc/vsebina/03/Poročilo%20o%20primanjkljaju%20in%20dolgu
%20(Ministrstvo%20za%20finance).pdf
12
http://www.stat.si/eng/tema_ekonomsko_nacionalni.asp
13
http://www.stat.si/eng/tema_ekonomsko_nacionalni_racunidrzave.asp
14
http://www.stat.si/eng/metodologija_pojasnila.asp?pod=3
15
http://www.bsi.si/en/publications.asp?MapaId=923
18
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
3. EDP tables and data sources
This section reports on availability and use of basic data sources for the compilation of
national accounts and EDP tables, by general government subsectors and main units/groups of
units. It also aims at describing adjustments to basic data source in order to compile ESA2010
based deficit/surplus; EDP tables compilation techniques, balancing practices; link between
EDP table 2 and 3.
3.1. EDP table 1
EDP table 1 provides the core, summary information for the reporting period, as requested by
the related EU legislation16: net borrowing (-)/net lending (+) (EDP B.9) for general
government sector and its subsectors, outstanding amount of Maastricht debt by instruments,
Gross Domestic Product (GDP), gross fixed capital formation (GFCF) for GG sector and data
on interest expenditure (ESA2010 D.41 and EDP D.41)17 .
This section focuses on Maastricht debt only. A detailed description of EDP B.9 calculation
and data sources for individual subsectors is covered under section 3.2.
3.1.1
Compilation of Maastricht debt
3.1.1.1 Specification of debt instruments
In the attached Annex 5 detail specification of Maastricht debt by instruments, including
maturity, creditors and interest rates (when possible) and by subsectors/units is shown
separately for securities and for loans. The valuation of instrument is in face value except
bills, which are in nominal value. Figures are shown gross and net, after intra-subsector and
between subsectors consolidation. Data are consistent with the official figure of Maastricht
debt, which is shown on the first page of Annex 5.
3.1.1.2 Data sources used for the compilation of Maastricht debt
Maastricht debt is compiled quarterly by the Ministry of Finance Treasure Department in
cooperation with the financial account group in the Bank of Slovenia. Two sets of unit
(instrument) level data are prepared by the Treasure Department and available in national
accounts for ESA and EDP reporting. The first set of data includes direct budgetary units at
central and at local government level and of social security funds. The second set of data
includes indirect budgetary units at central and at local government level. Both sets of data are
complemented with debt of relevant non-financial corporations according to data sources for
financial accounts compilation by the Bank of Slovenia. However, far the most important is
debt of the central government (central budget) at the amount of almost 96 % of the total
Maastricht debt. Borrowing in securities is only possible in central budget and exceptionally
by the SSH/SRF (SOS 2E, 1994).
Debt figures are already final for the April EDP notification without any further routine
revisions. However, revisions are possible due to changes in sector classifications.
16
17
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2014:069:0101:0101:EN:PDF
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2001:344:0001:0004:EN:PDF
19
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
3.1.1.3 Amendments to basic data sources
Securities are valued in face value without accrued and unpaid interest at the end of the
period. Loans at central government level are according to data base of the Ministry of
Finance in face value. In compilation data at local government level figures are according to
data sources of the Bank of Slovenia for financial accounts and the final figure is adjusted for
interest each quarter by SORS with average bank interest rates. Financial leasing loans
include interest; we do not exclude them due to small amounts. Treasury bills at central
government level are in nominal value and interest are adjusted in tables 3 accordingly
(issuances below nominal value).
3.1.1.4 Consolidation of Maastricht debt
Statistical survey for financial accounts conducted by the Bank of Slovenia and data base of
Central Securities Clearing Corporation provide all relevant information for intra government
transactions in securities and consolidation of Maastricht debt at unit level. Additionally
information’s are available in statistics of banks and in the Bank of Slovenia where all
relevant transactions in financial instruments by resident abroad must be reported.
Available data sources for financial accounts are on who/whom basis and with these data
sources rather small adjustments are necessary for intra-subsectors consolidation for loans at
central and at local level. In these intra-subsector transactions of loans extra-budgetary funds
at central and at local level are lenders. Intra central government consolidation of securities is
slightly bigger and again extra-budgetary funds, the SSH/SRF and Radio/TV of Slovenia are
included in these transactions. Also the majority of deposits in the Single Treasure Account
are consolidated within central government and rather small amounts between subsectors
deposits of social security funds in the Single Treasure Account are consolidated.
Securities are consolidated for investment of the Capital Fund in the central government
securities. The most important amount of consolidation between subsectors is loans of the
Single Treasure Account to the Health Social Security Fund and rather small amounts are
loans of the Slovenian Dwellings Fund to local dwellings funds.
3.2. Central Government sub-sector, EDP table 2A and 3B
Information provided in this section refers to data sources available for the Central
Government (S.1311), indicates what sources are used for compilation of non-financial and
financial accounts and EDP tables for S.1311, and explains the adjustments made in order to
comply with ESA2010.
3.2.1 Data sources for main Central Government unit : “The State”
This section describes data sources available and used for compilation of national accounts
and EDP tables for the main Central Government unit:
-
Basic data sources
Complementary data sources used for the purpose of special ESA2010 adjustments
(e.g. accrual adjustments, recording of specific government transactions, etc.).
Figure as reported in the working balance of EDP T2A refers to current deficit (surplus) of the
central budget (Proračun Republike Slovenije). Central budget is prepared by the Ministry of
Finance in line with the International Monetary Fund standards. Transactions are shown
20
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
according to the cash principle and in three balances: balance A Current revenue and
expenditure with deficit (surplus) as balancing item, balance B Financing and lending, and
balance C Borrowing. Preliminary central budget data are at the basic account level available
15 days after the end of the period (year, month) and central budget is finalised until the end
of February, send to the Court of Audit at the end of March and approved by the Parliament
until the end of September each year. Regarding central budget as the basic source for the
working balance of EDP T2A there is no difference between the April and the October EDP
notification.
Central budget balances A, B and C was the main data source for compilation of EDP tables
2A and tables 3B until 2006. In 2007 for EDP tables 3 financial accounts data were used for
the first time with the exception of F.8 assets and liabilities. F.8 instruments were according to
accrual adjustments in non-financial accounts in EDP table 2A with some additional
adjustments (EU flows, adjustments due to the SSH/SRF model, etc.). In 2012 for the period
from 2008 on SORS started to use also F.8 instruments according to WGA. With this WGA
as a data source became the main source also for adjustments in EDP table 2.A of revenue
(except taxes and social security contributions) and expenditure. WGA is also the source for
other groups of units for adjustments of cash deficit to B.9 in national accounts. This process
of the use of WGA as new data source was gradually completed in the years from 2012 on.
21
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
Table 2 – Availability and use of basic source data for the main central government unit
Source data used for
compilation of
Available source data
Accounting
basis
(C/A/M)
1
Periodicity
(M/Q/A/O)
2
Time of availability
of annual results
for T-1
First
Final
results
data
3
4
T + days
Source Data Accounting
5
WB
B.9
(NFA)
B.9f
(FA)
6
7
8
X
X
T+months
Budget Reporting
C
M
T+15
T+9
(1) Current revenue and
expenditure
(2) Current and capital
revenue and expenditure
(3) Current and capital
revenue and expenditure and
financial transactions
(4) Balance sheets
Financial Statements
C
A
T+120
T+4
(5) Profit and loss accounts
A
A
T+120
T+4
(6) Balance sheets
X
X
A
A
T+180
T+6
(7) Balance sheets (PB)
X
X
Other Reporting
A
Q
T+40
T+2
(8) Statistical surveys
X
(9) Other:
Accounting basis (column 1): C- cash, A- accrual, M-mixed
Periodicity (column 2); M - monthly, Q - quarterly, A - accrual, O - other, to be specified.
Time of availability (column 4): availability of annual results for T-1 = number of months and days after the
reporting period.
Column 6, 7 and 8 – those cells are crossed which refer to data sources used for compilation of the WB, B.9
(non-financial accounts) and B.9f (financial accounts), respectively.
Empty cells in column 1, 2, 3 and 4 mean that the data source does not exist.
Current revenue and expenditure balance (including capital transactions, deficit/surplus) of
the central budget is shown in the first line of EDP T2A and the figure is on cash basis.
Profit and loss accounts (item 5) for direct budgetary units at the central level on cash basis
are for the previous year available in April each year. However, this source has no effect on
B.9 calculation because all transactions of direct budgetary units are already included in the
central budget. The source is relevant for production accounts of the general government
within GDP calculation by activities.
WGA (item 7) is new source introduced in 2005 by the Ministry of Finance and this source
covers all units of the general government sector (except corporations, see section 3.2.2.).
This source is available in June/July and can be used only for the October EDP notification.
The source is detailed by instruments and exhaustive and it is important data source for
22
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
annual financial accounts compilation by the Bank of Slovenia. The source shows
approximately one hundred items, including fixed assets and inventories, components of
financial assets and liabilities, interest flows, intra government transactions, etc. In 2012 (for
the period 2008-2011) the source was for the first time used also for the compilation of nonfinancial accounts and particularly for B.9 adjustments from the cash basis for all groups of
units within subsectors of general government. The reason for this was in the reduction of
statistical discrepancy and for calculation F.8 assets and liabilities in line with the financial
accounts also in EDP T3. Before F.8 assets and liabilities in EDP T3 were calculated from
non-financial accrual adjustments in EDP T2 and with some further adjustments used in EDP
T3 and were not the same as in financial accounts.
Statistical sample survey (item 8) is conducted by the Bank of Slovenia for quarterly and
annual financial accounts. Data are collected via AJPES. For general government financial
accounts this source is now supplemented by WGA (item 6) for the October EDP notification.
3.2.1.1 Details of the basic data sources
Data sources used for compilation of national accounts
Data of the central budget as the basic data source for the main entity are available at the basic
level of accounts. For compilation of national accounts the bridge table from transactions in
public accounts to ESA revenue/expenditure components is used. As mentioned above with
this all so called direct budgetary units at the central government level are included. Data are
the same as at unit’s level cash accounting statements, which are used only for production
accounts of GDP calculation at the activity level and are not detailed as central budget data.
With central budget data at basic accounts it is possible to distinguish all important flows
including intra-government flows and transactions with other sectors of national accounts as
well as to solve problems of non-financial versus financial transactions.
Bridge tables for central budget, local budgets, Health and Pension Social Security Fund, for
indirect budgetary units and for non-financial corporations are shown in the attached Annex 4.
According to the Memorandum of Understanding when relevant it is possible to get more
detail information and further split of basic accounts data on individual or unit level
transaction.
The main source for financial accounts compilation is quarterly data based on direct reporting
system, introduced for financial accounts. Each individual unit report data on stocks and net
transactions in the financial instruments as assets or liabilities and also information on
counterpart sector. For financial accounts compilation for each important unit of general
government sector three different sources are thus available: statistical survey of direct
reporting, WGA (available at the annual level for the October EDP notification) and budget
balances together with annual unit level financial reports (financial reports are available for all
units and include standard budget type balances A, B and C). As direct reporting includes also
non-financial and financial corporations, data from banking and securities statistics,
International Investments Position/Balance of Payments data, monetary and statistics of
investment funds are also regularly available, all instruments and transactions with the general
government units can be distinguished, valued and verified with other sources. Due to detail
in data sources the consolidation within and between subsectors of general government can be
applied in line with national accounts purposes. All important and bigger transactions are
23
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
clarified and must be explained by relevant unit. In compilation F.8 assets and liabilities
within financial accounts all relevant accrual adjustment in EDP T2A are taken into account.
Working balance (WB)
In the first line of EDP T2A data of the main entity (WB) deficit is used.
3.2.1.2 Statistical surveys used as a basic data source
Not applicable, see above.
3.2.1.3 Supplementary data sources and analytical information
This section describes supplementary data sources used to amend basic data sources when
compiling national accounts. In order to meet ESA2010 requirements, supplementary data
could be used for e.g. for accrual adjustments, reclassification of specific transactions,
consolidation, amendments of revenue and expenditure structure, amendments of structure of
assets and liabilities, identification of a counterpart sector, etc.
Basic data sources for non-financial and financial accounts as mentioned above are complete
and the supplementary data sources are used only for accrual calculation of taxes and relevant
accrual adjustments in EDP table 2.A: custom declarations (for import duties and taxes),
excise duties (monthly report of accrual excises by type) and data on annual final payment of
income tax by households and of tax on income (profit) of corporations. These tax data
reporting is arranged with the agreement according to the Memorandum of Understanding
with the Ministry of Finance, the Financial Administration (before 2014 Tax Administration
Office and the Custom Office).
3.2.1.3.1
Supplementary data sources used for the compilation of non-financial accounts
For calculating gross fixed capital formation (GFCF) the primary source is the Survey on
Gross Fixed Capital Formation (INV-01) and data are available approximately 12 months
after the end of the year. The survey on GFCF includes all legal units as investors with 10 or
more persons in paid employment, except general government units, which are included
regardless of the number of employees. Survey has three separately sets of data: acquisitions
of new assets, acquisitions of existing assets and disposals of existing assets. Due to
conceptual differences between budget statistics and national accounts in GFCF the survey is
important source for improvement of bridge tables between public and national accounts as
well as for calculating the discrepancy between cash and accrual data. This is particularly
relevant for important direct budgetary units at the central government level and for balancing
flows with other sectors, because in public accounts GFCF data include subsidies and
intragovernment flows. Also for the Ministry of Defence all non-military and military GFCF
according to GFCF survey are excluded from intermediate consumption. However, the
weakness is that survey data can be used only with rather big delay in EDP reporting (T+20
months). Therefore, in the first and in the second EDP reporting one month time-lagged
method is used for GFCF accrual adjustment. In EDP table 2A the difference in GFCF
between cash and accrual figure is divided into the difference due to financial leasing and
accrual adjustment. Financial leasing adjustment is shown within other adjustments of B.9 in
the working balance.
24
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
3.2.1.3.2
Supplementary data sources used for the compilation of financial accounts
Not applicable, see above.
3.2.1.4 Extra-budgetary accounts (EBA)
Usually, not all flows of a non-financial nature are recorded in the so called budgetary
accounts which enter the WB, as reported in the first line of EDP table 2. Some funds could
be put aside as reserves, special purpose funds and are booked in so called “extra-budgetary
accounts” - EBA. In some cases, according to national legislation, transactions which are not
scrutinized by budgetary rules can be booked in EBA and not in ordinary budgetary accounts.
It is very important that all non-financial flows of the main entity, including those entering
EBA, are appropriately incorporated into calculations of deficit.
Public funds at the central government level (9 units) and the Slovenian Sovereign Holding
(SSH) restructured from Slovenian Restitution Fund (SRF). SSH have complete set of annual
accounting data and balance sheets for corporations. Public funds at the central government
level use the same cash accounting system as other direct budgetary units. The SSH/SRF is
specific fund and was set up as public corporation in 1994 with the purpose of restitution of
private property nationalized after the Second World War. The SSH is now responsible for
managing and disposal of all assets of the RS in the name of the RS and for the account of the
RS. The B.9 of these units is in EDP T2A shown within B.9 of other units (separately for
public funds and for the SSH/SRF). With bridge tables between accounting data and national
account all categories and components of ESA expenditure and revenue are estimated for
these funds.
Non-financial flows recorded in EBA
Data sources for public funds are for non-financial and for financial accounts complete. In
data sources all flows with the CB and with other units can be identified within available
accounting scheme. However, it is necessary to contact accounting departments of important
funds to clarify specific transactions and this is regular annual practice. This was particularly
important for compilation of national account for the SSH/SRF which performs rather large
set of functions in the process of privatization. Accounts for the SSH/SRF are annually
compiled with close cooperation and support by the accounting department of the unit.
The calculation with the use of WGA for public funds (9) improved in the same way as for all
other groups of units: to cash deficit accounts receivable are added and accounts payable
deducted according to WGA (in compilation to accounting standards increase of payables has
positive sign and not negative as in EDP).
The total revenue of public funds at the central government level (9 funds, 2014) amounted to
EUR 98 mio, of which the most important are current miscellaneous transfers (50%), rental
and other market revenue (15%) and interest receivable (15%). The total expenditure
amounted to EUR 82 mio, of which the most important are intermediate consumption
expenditure (26%), capital transfers (22%) and current miscellaneous transfers (13%). The
main functions and characteristics of public funds at the central government level are:
1. Fund for Decomposition of Nuclear Power Plant Krško and the Storage of Radioactive
Waste: the main revenue are monthly contributions paid by the Nuclear Power Plant Krško
as component of D.29 Other taxes on production in national accounts (EUR 9 mio of the
total EUR 15 mio revenue 2011) and interest receivable. On expenditure side the fund
25
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
2.
3.
4.
5.
6.
7.
8.
9.
transfer part of income for financing the Agency for Radioactive Waste and to local
government for environment damage on location of plant. This public fund constantly
generates budgetary surplus.
Dwellings Fund of the Republic of Slovenia: the main functions of the fund are stimulating
construction, adaptation and renovation of flats. Fund purchases, rents and resales flats and
supports purchase of dwellings by households with loans. The main revenue are rentals and
interest (EUR 10 mio of the total EUR 16 mio revenue 2011). The capital of the fund is
approximately EUR 100 mio and the amount was part of government revenue from sales of
social dwelling to household in 1992.
Slovenian Environmental Fund: fund supports environmental investments and policy with
current transfers to households and by offering loans with low interest. The main revenue
from inclusive 2010 on are payments by traders with main energy products (EUR 17 mio of
the total revenue EUR 23 mio in 2011 and EUR 7 mio of the total revenue EUR 13 mio
2010) and in small amount from EU funds and interest receivable.
Public Fund of the Republic of Slovenia for Regional and Rural Development: the main
function of the fund is creating the regional development policy, annual total revenue of the
fund are EUR 3 mio in 2011.
Public Fund of the Republic of Slovenia for Cultural Activities: the fund supports cultural
activities and performances and is financed mostly by central and also by local budgets
(EUR 7 mio of the total EUR 8 mio revenue). The main expenditure are intermediate
consumption (33% of the total expenditure), compensation of employees (31%) and current
transfers to non-profit institutions (16%).
Public Guarantee, Maintenance and Disability Fund of the Republic of Slovenia. Public
Guarantee and Maintenance Fund of the Republic of Slovenia was set up in 1997 with the
purpose to pay of obligations of the Republic of Slovenia to employees of enterprises in
liquidation or bankrupt enterprises and for rights of children to get maintenance. The main
revenue was current miscellaneous transfers (claims and revenue from liquidation of
companies) and the main expenditure social benefits in cash (EUR 3 mio of the total EUR 4
mio expenditure in 2011). In 2013 the Disability Fund of the Republic of Slovenia merged
with the fund. The disability fund performs different services for employment of disabled.
The main source is miscellaneous transfers (90% of the total revenue at EUR 21 mio). The
main expenditure are intermediate consumption (67% of the total EUR 20 mio expenditure)
and subsidies for employment of disabled (30%).
Public Fund of the Republic of Slovenia for Scholarship: the fund was partly financed by
the central budget and by concession paid at the student work (employment) until the mid of
2012 when the Fiscal Balance Act was introduced. By this Act the concession at the student
work became the central budget revenue and consequently the fund become mainly financed
by the central budget. The main expenditure is current miscellaneous transfers to
households.
Public Fund of the Republic of Slovenia for Entrepreneurship: the fund financially supports
small enterprises with loans. The main revenues are interest receivable (50% of the total
EUR 3 mio revenue) and sales of services (36%). The main expenditures are compensation
of employees (43%) and subsidies (17%).
Public Fund of the Republic of Slovenia for Succession: this fund was set up in 2006 with
the purpose to solve the problems of succession of ex-Yugoslavia property, assets and
claims and to take over the obligations of Slovenia. The only revenue of the fund comes
from interest (EUR 0.12 mio). The deficit (EUR 1.3 mio in 2011) is financed with available
initial capital (approximately EUR 15 mio).
26
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
The Slovenian Restitution Fund (SSH/SRF): for the restitution of nationalized private
property after the Second World War and when this restitution is not possible in kind the SRF
received part of the value of all social enterprises available for privatization. The process
started in 1994 by law. For restitution in cash and when each case is confirmed by court the
SRF has to issue bonds SOS2E (in DEM/EUR at 6% interest rate from 1994 on and with the
maturity in 2016). Transaction of this process was in national accounts initially included in
1995 as capital transfer to households at the planned total amount of restitution in cash at SIT
139 320 mio or 5.6% of GDP. In financial accounts the amount was recorded as stock of other
accounts payable and each year 6% interest rate was calculated as interest payable. The
issuing of SOS2E each year was included in the general government gross debt and as
reduction of other accounts payable at the same time. The stocks of other accounts payable at
the end of 2011 amounted to EUR 337 mio or 0.9 % of GDP. It is possible that the whole
process will not be finished until 2017.
The same approach was used also for bonds RS21 and RS39 with which by 2000 law the SRF
settled claims for war damages and for war victims. Initial capital transfer and partly current
transfer was recorded in 2001 at the total amount of EUR 168 mio or 0.8% of GDP. However,
initial amount of other account payable was exceeded for RS39 already in 2007 and for RS21
in 2009. All amounts above initially planned value of other accounts payable were from
2007/2009 on recorded as current capital transfer. Amounts of claims below EUR 300 were
settled by cash as current transfer.
In 2007 the SRF started to settle investment by individual persons into TELECOM
infrastructure in the total amount of EUR 190 mio in 2007-2011. This transaction was in
national accounts shown as capital transfer. In 2006-2009 equity injections by the SRF in loss
making public enterprises were in national accounts recorded as capital transfers in the total
amount at EUR 10 mio.
In 2011 the central budget supported the SRF with equity injection at the amount of EUR 60
mio and this was in national account recorded and consolidated as intra central government
capital transfers. In 2012 part of this amount was used for capitalization of Nova Ljubljanska
Banka and was at the amount of EUR 28 mio recorded as capital transfer.
In 2010 the government recognized all payments made by the SRF which were not planned
by basic law (RS21, RS39 and TELECOM payments) as claim at the amount of EUR 360 mio
and this amount will be paid by the central budget in the next five years starting from 2012. In
national accounts this was consolidated as intra central government capital transfer. From
inclusive 2009 the central budget regularly also refunds all additional payments by the SRF in
cash (RS21, RS39, and TELECOM).
The main current revenue of the SRF is property income (58% of the total EUR 42 mio
revenue 2011) and refunds by the central budget (D.73, 35%). The main expenditure is
interest payments (83% of the total EUR 80 mio expenditure 2011) and above mentioned
current and capital transfers (12%). Deficit of the SRF in 2011 was estimated at EUR 39 mio.
B.9 of the SRF doesn’t include specifically transactions mentioned above (transactions of
bonds SOS2E/1995, RS21 and RS39/2001, TELECOM settlement, capital injections) and all
these transactions are shown separately within other adjustments of B.9. In 2011 only EUR
0.7 mio of TELECOM payments was shown separately.
27
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
Financial flows recorded in EBA
The main data source for public funds at the central government level and for the SSH/SRF
are quarterly financial accounts data based on direct reporting system. As each unit reports
information on counterpart sector, the consolidation within and between subsectors of general
government can be applied. For each fund and the SSH/SRF all larger and also specific
transactions are regularly clarified. In the quarterly compilation process all instruments and
transactions are valued and verified also with other sources and on annual level again with
balance sheet data and annual reports.
3.2.2
Data sources for other Central Government units
This section describes data sources available and used for compilation of national accounts
and EDP tables for other Central Government units (those not reported in the working balance
in EDP T2A).
Other central government units are public service providers and public agencies (340 units),
public corporations (16 units), public funds (9 units), local communes (795 units), legal
persons of private law (9 units) and associations of municipalities (3 units). Public service providers
and agencies have two types of annual accounts: cash statement similar to direct budget units
(balances A, B and C) and accrual statement similar to accounting schemes and rules for
corporations. For the compilation of production accounts within GDP calculation the profit
and loss accrual accounting scheme is used and for other components of revenue and
expenditure the cash statement scheme is used due to detail it provides. Calculation for these
units is with the use of WGA (item 4) improved and all components in national accounts are
accrual: B.9 is calculated as the sum of cash deficit plus accounts receivable minus accounts
payable according to WGA data. Accounting data for public service providers and agencies
are available at the end of April and WGA in July and both are used for the October EDP
notification. The Ministry of Finance collects preliminary cash statements in March and these
data are used for the April EDP notification.
Non-market public corporations use accrual accounting system for corporations and these
data are available at the end of April and therefore available only for the October EDP
notification. However, for the April notification from all important public corporations
preliminary accounting data for the previous year are redeived. In 2011 two units of
reorganized Public Railways System (from one into four independent units) were included in
the general government sector (SŽ Passenger Transport and SŽ Infrastructure) and for these
two units preliminary accounting data are received from unit’s accounting department for the
April notification. Due to importance also accounting data for D.S.U. (remains of public
corporation the Slovenian Development Company d.d. - Slovenska Razvojna Družba d.d.
which was set up in the process of privatization of social enterprises and the company
managed and privatized social enterprises which were not privatized in time according to law)
are received in advance for the April EDP notification. Central Stockholding Entities is by the
government controlled Agency of the Republic of Slovenia for Commodity Reserves (Javni
zavod za blagovne rezerve) which is engaged with the establishment and utilisation of
commodity stocks and with the compulsory stocks of crude oil and/or petroleum products.
The Bank Assets Management Company (BAMC) was established in March 2013 as a
government-owned company with the task of facilitating the restructuring of banks with
systemic importance that were facing severe solvency and liquidity problems. In annex 3 T3
28
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
adjustments for sector delimitation breakdown of B.9 in addition to groups of units individual
information is shown for in this paragraph mentioned corporations.
29
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
Table 3 – Availability and use of basic source data for other central government units:
public funds, other public service providers and agencies and public corporations
Source data used
for compilation of
Available source data
Accounting
basis
(C/A/M)
1
Periodicity
(M/Q/A/O)
2
Time of availability
of annual results
for T-1
First
Final
results
data
3
4
T + days
Source Data Accounting
5
B.9
(NFA)
B.9f
(FA)
7
8
X
X
T+months
Budget Reporting
A
A
T+180
T+6
(1) Current revenue and
expenditure
(2) Current and capital
revenue and expenditure
(3) Current and capital
revenue and expenditure and
financial transactions
(4) Balance sheets (PB)
Financial Statements
A
A
T+120
T+4
(5) Profit and loss accounts
X
X
X
A
A
T+120
T+4
(6) Balance sheets
C
A
T+120
T+4
(7) Cash flow statements
X
Other Reporting
A
Q
T+40
T+2
(8) Statistical surveys
X
(9) Other:
See notes to table 2, on the used abbreviations.
3.2.2.1 Details of the basic data sources
For public service providers and public agencies (340 units in 2014) cash flow statements are
similar as for direct budgetary units and enough detailed for calculation of ESA expenditure
and revenue components. The main units of this group are in health (hospitals) and in
education (universities) and also the Public Radio and TV Slovenia from inclusive 2008 on.
These units are mostly financed by budgets and by the Health Social Security Fund. From the
total revenue (EUR 2 796 mio 2011) market sales are 14% and transfers from the central
budget 43%, from the Health Social Security Fund 36% and from local budgets less than 1%.
Other current taxes as main revenue of the Public Radio and TV Slovenia amounts to 3% of
the total revenue. The main inputs of the total expenditure at EUR 2 865 mio are
compensation of employees (58%) and intermediate consumption (34%). Components of
production accounts (intermediate consumption, compensation of employees, market sales,
etc.) are calculated from accrual accounting data (item 5 Profit and loss accounts) and B.9 is
therefore mixed, between cash and accrual calculation. For 2008-2011 SORS started to use
WGA (item 4) and with this F.8 components were calculated according to financial accounts
and used for rather small further B.9 adjustments to the level of B.9f in financial accounts.
Intra subsector flows and flows between subsectors can be identified in data sources and ESA
consolidation is consistent, the only rather minor problem is the allocation of F.8 for B.9
adjustment at the level of ESA expenditure and revenue components. In current work for EDP
30
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
T2A for calculation of B.9 of non-financial accounts WGA were included in 2013 October
EDP notification (for 2012).
Public non-market corporations is the last group of units within the central government and
for these units calculation of all ESA revenue and expenditure is done separately according to
accrual profit and loss accounts. As already mentioned in 2014 in this group (16 units in
2014), also two new units, SŽ Passenger Transport and SŽ Infrastructure were reclassified in
2011 as non-market units into the general government sector. Available data sources are
complete and with some direct additional information from accounting department of SŽ
Holding and from D.S.U. complete non-financial expenditure and revenue data can be
calculated on accrual basis. This group is mostly financed by the central budget (65% of the
total revenue at EUR 318 mio in 2011) and from market sales (30%). The main expenditure
are compensation of employees (32%), intermediate consumption (51%) and expenditure for
gross fixed capital formation (14%) of the total expenditure at EUR 346 mio. In this group
from 2013 is also Company for management bank claims (Bank Assets Management
Company – BAMC) set up for reconstruction of banks due to financial crisis.
3.2.2.2 Statistical surveys used as a basic data source
The main source for financial accounts compilation is quarterly data based on direct reporting
system. Statistical survey includes units of general government sector with total assets more
than EUR 8 mio; sample thus covers 99% of the assets value of sector S.1311 and survey
response rate is 100%. All units report data on stocks and net transactions in the financial
instruments as assets or liabilities and also information on counterpart sector. At annual level
for the October EDP notification, also WGA are used as supplementary data source. For units
included in direct reporting system balance sheet data are used for verification, for remaining
units balance sheet data are used as main source.
3.2.2.3 Supplementary data sources and analytical information
This section describes supplementary data sources which are used to amend basic data
sources while compiling national accounts. In order to meet ESA2010 requirements,
supplementary data could be used for, e.g., accrual adjustments, reclassification of specific
transactions, consolidation, amendments of revenue and expenditure structure, amendments of
structure of assets and liabilities, identification of a counterpart sector, etc.
3.2.2.3.1
Supplementary data sources used for the compilation of non-financial accounts
Basic data sources for non-financial accounts are complete and no supplementary sources are
used.
3.2.2.3.2 Supplementary data sources used for the compilation of financial accounts
Supplementary data sources which are available in financial accounts on a regular basis are:
-
banking statistics
investment fund statistics
International Investment Positions and Balance of Payments statistics
securities statistics
31
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
All stocks and transactions which are reported for financial accounts purposes by individual
general government units are compared also with above mentioned supplementary sources. In
case of differences reasons should be found and eliminated.
3.2.3
EDP table 2A
This section provides detailed information on individual lines reported in EDP T2A.
3.2.3.1 Working balance - use for the compilation of national accounts
As mentioned above the figure of deficit in the first line of EDP T2A is according to the
central budget balance of current revenue and expenditure.
3.2.3.2 Legal basis of the working balance
The figure as reported in the working balance of EDP T2A refers to current deficit (surplus)
of the central budget (Proračun Republike Slovenije). The central budget is prepared by the
Ministry of Finance in line with the International Monetary Fund standards and according to
the Act on Implementation of the Budget of the Republic of Slovenia. Transactions are shown
according to the cash principle and in three balances: balance A Current revenue and
expenditure with deficit (surplus) as balancing item, balance B Financing and lending and
balance C Borrowing. Preliminary central budget data are at the basic account level available
15 days after the end of the period (year, month) and central budget is finalised until the end
of February, send to the Court of Audit at the end of March and approved by the Parliament
until the end of September each year. Regarding central budget as the basic source for the
working balance of EDP T2A there is no difference between the April and the October EDP
notification.
3.2.3.3 Coverage of units in the working balance
Two adjustment lines due to sector delimitation appear in EDP T2. The purpose of the first
adjustment is to exclude flows relating to units which do not belong to the government sector
(or to the particular subsector) according to ESA2010 definition. The second adjustment
refers to B.9 of other units which are classified within the particular government subsector,
but related inflows/outflows are not included in the working balance.
3.2.3.3.1
Units to be classified outside the subsector, but reported in the WB
Not relevant.
3.2.3.3.2
Units to be classified inside the subsector, but not reported in the WB
As explained in sections 3.2.1.4 Extra-budgetary accounts and 3.2.2 Data sources for other
Central government units B.9 of altogether four groups of units is calculated separately and
added to the WB in the section “Net borrowing (-) or net lending (-) of other Central
government bodies”: Public Funds (1), the SSH/SRF (2), public service providers and public
agencies (3) and non-market public corporations (4). B.9 of the SSH/SRF and of public
corporations is accrual. For public funds and public service providers and public agencies the
32
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
calculation of B.9 equals to cash deficit plus accounts receivable less account payable by
WGA. As mentioned in section 3.2.1.4 calculation of B.9 of the SSH/SRF doesn’t includes
specific transactions (transactions of bonds SOS2E/1995, RS21 and RS39/2001, TELECOM
settlement, capital injections) and all these transactions are shown separately within other
adjustments of B.9 in table 2A.
3.2.3.4 Accounting basis of the working balance
As mentioned in section 3.2.1, figure as reported in the working balance of EDP T2A refers to
current deficit (surplus) of the central budget (Proračun Republike Slovenije) and transactions
are shown according to the cash principle.
In principle the central budget revenue and expenditure are shown as pure cash transactions in
line with transactions in F.2 (in public accounts F.2 is balancing item of all revenue and
expenditure in balances A, B and C). However, some accounts due in current year can be paid
at the beginning of next year (depends on holiday/working days at the end of a year). There
were in the past examples when all accounts of the previous year have not been paid and were
included in the next year budget. Recognitions of claims to public enterprises by court
decisions are in public accounts shown later and when paid and the total amounts are in
national accounts shown in the year of court decision.
3.2.3.4.1
Accrual adjustment relating to interest D.41, as reported in EDP T2
As interest expenditure is booked in the central budget (WB) on cash basis, adjustment to
accrual value is done according to individual contracts taking into account valuation of the
instrument and interest rate by the Ministry of Finance. The main sources are amortization
schedules according to each individual contract/instrument. Accrued non-paid interest equal
(a) accrued interest from last payment (coupon) to the end of the year n minus (b) accrued
interest from the beginning of the year n to the first payment (coupon). Accrued interest for
planned new borrowing are calculated from (a) amount of new borrowing for current year
multiplied by (b) weighted average interest rate (actual interest rate at the auction) for longterm securities in the year n-1 and (c) average maturity of auctions till the end of the current
year. If figures are used according to data sources of the Bank of Slovenia it is necessary to
adjust loans for interest part (e.g. local government loans) and accrual adjustments for interest
equals the total accrued interest less cash payments.
Due to inflation in the past adjustments were necessary particularly for valuation/indexation
of instruments (USD, EUR, HICP, etc.). For bonds issued by the Slovenian Restitution Fund
due to restitution of nationalised private property after the Second World War accrual interest
are by SORS estimated (imputed) by each paper for the period when interest are due (for
SOS2E from inclusive 1996 and for RS21 and RS39 from inclusive 2002 on). This interest is
not shown separately but included in the calculation of net lending/net borrowing of the
SSH/SRF.
Payment of discount is recorded and can be identified in the WB. In the WB for a treasury
bills interest are paid in the last year and are recalculated on accrual basis (discount accrual)
for all years of the whole period. The whole amount of interest (discount cash) is in EDP T3B
shown in the first year as issuance below (+) nominal value. For bonds below par the
procedure is similar except the fact that cash interest are paid in the first year.
33
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
Inflow from premium is not relevant in last years. Borrowing in SWAP (USA bond in $) was
introduced in the October 2012 for the first time. All transactions in the WB and relevant
adjustments in EDP tables 2A and 3B were identified for this type of instrument and were
presented to and confirmed by Eurostat. Issuance below nominal value in table 3B is shown in
the first year.
Accrual adjustment is for interest payable in EDP T2A shown in item “Difference between
interest paid (+) and accrued (-) (D.41) (-)” at the amount of EUR 94 mio and in 2011 this
amount includes accrued adjustment, advanced payment accrual for bonds, interest for
guarantees called and for EFSF correction.
Interest receivable/payable is according to data sources partly in cash (direct budgetary units
and public funds) and accrual (public service providers and agencies, the SSH/SRF, the
Capital Fund and public corporations).
Within accrual revenue correction in EDP T2A in the October 2012 reporting 2008-2011
were for the first time included also accrual adjustments for surplus of the Single Treasure
Account (EZR). In the system of EZR are direct and indirect budgetary units at central
government level and at local government level together with social security funds. Theirs
assets are deposited in the banks and this can be done for all assets only via EZR. This
correction of receivables refers to annual surplus of EZR which is paid to the Central budget.
The figure is the difference between cash and accrual flow: in year t surplus of year t-1 is
replaced with surplus for year t (surplus of year t is paid in year t+1). The surplus (B.9) of
EZR is now in the total amount included in interest revenue and the amount is accrual annual
interest payments by banks for the central government deposits. In 2011 this accrual
correction amounted to EUR 15 mio and added to cash EUR 49 mio and the total EUR 64 mio
is now included in interest revenue.
3.2.3.4.2
Accrual adjustments reported under other accounts receivable/payable F.8 in EDP T2
In EDP T2A accrual receivable adjustments are reported for interest (1), market sales and
other commercial revenue (2), taxes on production and imports (3), current taxes on income,
wealth, etc. (4), transfers between government subsectors (5), miscellaneous current transfers
(6) and for costs of collecting traditional own resources (7):
(1) Adjustment for EFSF interest revenue.
(2) Market sales and other commercial revenue according to WGA.
(3) Taxes on production and imports: cash data in the central budget (WB) are adjusted by
one month time lag for VAT. Custom duties and agricultural levies data are according to
custom declarations and for excise duties according to monthly declarations collected by the
Financial Administration (before 2014 by the Custom Office) and for these taxes accrual
adjustments (the difference between cash and accrual figures) are further adjusted for taxes
unlikely to be collected. Coefficients for taxes unlikely to be collected are estimated with data
basis of the Financial Administration (before 2014 by the Tax Administration Office). In 2013
October EDP reporting VAT was calculated with one month time lag method for the first time
(from inclusive 2009 on) due to increasing difference between cash and accrual figure
according to tax declarations.
(4) Payments of tax on profits of companies and income tax of households include advance
payments during a year and the final payments next year (additional payment minus refunds
of excess payments). From cash data in year T net final payments for year T-1 are deducted
and net final payment for year t are added.
34
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
(5) Adjustment for transfers between government subsectors is by WGA.
(6) Miscellaneous current transfers are estimated by one month time lag method and not by
WGA with revision in 2015 because WGA cannot be used correctly.
(7) Accrual adjustment for costs of collecting traditional own resources (25% of duties, export
of services to EU institutions) is the difference between cash figure in the central budget and
accrual figure according to custom declarations.
Annual surplus of the Single Treasure Account and budget reserves adjustment are shown
within non-financial transactions not included in WB. Annual surplus of the Single Treasure
Account is revenue of the central budget and the surplus for year T is paid in year T+1 and the
time adjustment is necessary (see more in section 3.2.3.4.1 above).
In EDP T2A accrual payable adjustments are reported for intermediate consumption (1),
compensation of employees (2), subsidies (3), social benefits in cash and in kind (4) and for
gross fixed capital formation (5). For adjustments of intermediate consumption, compensation
of employees and social benefits in cash and in kind “one month time lag approach” is used
for April notification (in October notification by WGA). Adjustment for subsidies is
estimated for domestic part of the total payments of agriculture subsidies, which are mostly
paid with one year delay. However, in EDP October 2013 it was agreed that accrual
adjustment for total subsidies in the future is not necessary (from inclusive 2013 on) because
final data for this calculation are available in more than one year delay. This adjustment
includes only domestic part of subsidies (without agriculture subsidies) by one month time
lag. Adjustment for intermediate consumption (1), compensation of employees (2), social
benefits in cash and in kind (4) and gross fixed capital formation (5) are estimated by WGA
(from 2008 on) in October notification
In April 2015 EDP notification SORS started to publish EU funds neutralisation for central
government (central budget). In agreement the Ministry of Finance prepared all expenditure
by type which are financed with EU funds for central budget. With these data it was possible
to neutralise the use of EU funds on B.9 and with this new component was included in EDP
table 2A (accrual receivable adjustment as well as in EDP table 3B, EU funds neutralisation)
showing this neutralisation of B.9 as deficit on cash basis adjustment. With new data also all
EU funds via central budget to other institutional units were excluded from government
accounts. As the Ministry of Finance prepared data for the whole period from 2004 on
(quarterly) this neutralisation was calculated and included in all government accounts and
tables (also EDP historic tables from 2004 on) with B.9 revision in 2015.
Within accrual payable adjustments in 2010 and 2011 also the recognition of the Slovenia
Railways claims by court decision was shown.
In 2010 the government recognized all payments made by the SRF which were not planned
by basic law (RS21, RS39 and TELECOM payments) as claims at the amount of EUR 360
mio and this amount will be paid by the central budget in the next five years starting with
2012. In national accounts this was consolidated as intra central government capital transfer.
In EDP T3B F.8 assets and liabilities were with some additional adjustments (EU flows,
SSH/SRF other account payables according the model for SOS2E, RS21 and RS39, etc., see
section 3.2.1.4 Extra-budgetary funds above) used according to above accrual adjustments of
receivables and payables in table 2A until the April 2012 EDP reporting. In the October 2012
EDP reporting also F.8 assets and liabilities in EDP T3B were according to WGA as a main
35
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
source together with specific adjustments in table 2A for taxes, the SRF model, EU flows, etc.
and with this for the first time in line also with financial accounts.
3.2.3.4.3
Other accrual adjustments in EDP T2
No other accrual adjustments.
3.2.3.5 Completeness of non-financial flows covered in the working balance
Within “non-financial transactions not included in the working balance” we show two
adjustments: Single Treasury Account (see above) and Budget reserves. For so called “Budget
reserve funds”, figure in the central budget current account shows the amount which is for this
purpose foreseen in a year. This figure is replaced with actual expenditure from the funds in a
year. Three internal funds are included in this item: fund for natural disasters, fund for
investments in health and fund for investments in education and from 2013 on also fund for
scholarships.
3.2.3.6 Financial transactions included in the working balance
INFRA d.o.o. was public corporation set-up for construction of hydroelectric power plants on
the river Sava. Loans of INFRA (under government guarantee) are included (see the next
sections 3.2.3.7 Other adjustments reported in EDP T2A) in the general government
consolidated gross debt. However, loans are repaid by INFRA and refunded by the central
budget and this is shown as current transfer to public corporations in the central budget.
Therefore INFRA debt is included in government debt (at the amount of EUR 33 mio in 2010
as debt assumption in other adjustments). New guarantees to INFRA each year (EUR 10 mio
in 2011) are shown as other adjustment in table 2A. Loans repaid by INFRA and refunded by
the central budget are deducted as financial transaction included in the working balances,
refunds of interest payments are reclassified into interest expenditure.
According to national legislations recognitions of claims of public corporations by court
decisions is in the central budget (working balance) shown as current or capital cash transfer
to public corporations and the total amount is usually split on longer period while in national
accounts the total amount is recorded in the year of court decision.
In 2010 the clearing debt by Russia (EUR 103 mio) has been repaid and shown within current
revenue in the central budget. The total amount was shown as adjustment for financial
transactions included in the working balance.
Other adjustments reported in EDP T2
(1) The item debt assumptions shows the capital transfer associated to debt assumptions
benefiting Slovenian Railways (2003, 2004), the Health Fund and the Pension Fund (2005)
and INFRA (2010 and 2011).
(2) The item guarantees called less repayments shows the impact of calls on guarantees.
Guarantees called are recorded as capital transfer expenditure net of repayments by the
debtor. Guarantees being systematically called three years in a row lead to a debt assumption
in national accounts: the whole outstanding amount of debt guaranteed though not yet called
at the end of third year is booked as a capital transfer.
(3) The item conversions of claims into acquisition of equity in loss-making companies
correspond to capital injections (in the form of capital equity in public accounts) recorded as
capital transfers in national accounts. This item covers capital transfers to loss-making
36
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
companies (in the central budget and also capital injections via public companies responsible
for privatization – Slovenska razvojna družba, DSU and PDP, extra budgetary fund – the
SSH/SRF 2007-2009). Capital injections were significant in 2011 into the Nova Ljubljanska
Banka d.d. and other loss-making public enterprises (EUR 399 mio).
(4) Capital transfers by the Slovenian Restitution Fund to individual persons for compensation
of investments into TELECOM infrastructure is as specific transaction shown here and not
within B.9 of the Slovenian Restitution Fund.
(5) Statistical discrepancy shows the difference between figures in payer and in receiver
account. These adjustments are relevant for important transactions between subsectors
(Central budget/Pension social security fund, Central budget/Local budgets) and within
subsectors (Pension social security fund/ Health social security fund).
(6) The item GFCF adjustment for financial leasing is from 2007 on excluded from GFCF
cash/accrual adjustment and shown here.
(7) Super dividends according to super dividends test for all payment of profits into central
budget.
(8) With ESA2010 all transactions of two funds covering loses in exports managed by the
SID Bank in the name and on the account of government are from 2010 on included in
government accounts and net (B.9) is shown among other adjustments.
3.2.3.8 Net lending/net borrowing of central government
As explained above the final figure of B.9 for subsector central government in the last line in
EDP T2A is calculated in two main steps. The first step includes all relevant adjustments to
deficit in the working balance (central budget) and in the second step separately B.9 for four
other groups of units is added.
As explained in sections 2.2.2 Auditing of public accounts, 3.2.1 Data sources for main
Central Government unit: “The State” and 3.2.2 Data sources for other Central Government
units, annual accounting data and balance sheet data are exhaustive and available for all units
within central government. Data are regularly audited by the Court of Audit and by internal
control. The results of audited financial statements and financial reports are available to GFS
compilers when they are published by the Court of Audit on its website. Accounting basis is
cash (central budget/direct budgetary units, extra-budgetary funds), cash/accrual (other public
service providers and public agencies) and accrual (SSH/SRF and public corporations).
Cash/accrual adjustments are important for data in the central budget (WB) for main
components of revenue (taxes and social contributions, interest) and expenditure
(intermediate consumption, compensation of employees, interest, social benefits and gross
fixed capital formation).
Net lending/net borrowing for other groups of units is estimated according to data sources. If
data sources are on cash basis the accrual figure of B.9 is calculated with adjustments for
other accounts payable/receivable according to WGA. If data base is accrual to “profit after
tax” in data sources the capital transactions are added (GFCF and capital transfers). Both
approaches are possible for units with mix, cash/accrual statements, and the accrual B.9 is
almost the same.
37
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
Transactions in F.8 instruments were in EDP reporting in the past booked differently. In the
first period until inclusive 2006 in T3B all financial instruments were according to central
budget data (WB, balances B Lending and C Borrowing) and according to financial
statements for other units (balances B and C). At that time instruments F.8 with some
additional adjustments were according to cash/accrual adjustments in T2A. With the use of
financial accounts data for financial transactions in T3B both F.8 assets and liabilities were
still calculated in the same way also from 2007 on and not according to financial accounts.
For the October 2012 EDP reporting in the compilation of B.9 for other central government
units as well as for adjustments to cash data of the central budget (WB), WGA were used for
the first time also for F.8 assets and liabilities for all groups of units within the central
government (central budget, extra-budgetary funds, SSH/SRF, other public service providers
and public agencies, public corporations). With this F.8 instruments in T3B are from 2008
inclusive on in line with financial accounts data and with some additional adjustments (EU
flows, SRF model, etc.) also in line with cash/accrual adjustment in T2A.
3.2.4
EDP table 3B
3.2.4.1 Transactions in financial assets and liabilities
Data of financial accounts prepared by the Bank of Slovenia were in the compilation of EDP
T3B for the first time used in the October 2009 reporting (for 2005-2008). Before this budget
statistics and cash financial statements of other units (balances B and C) were used for
financial assets in EDP T3B except F.8 assets and liabilities which were with some additional
adjustments used according to accrual adjustments in table 2A. In the October 2012 EDP
reporting also F.8 assets and liabilities in EDP T3B were according to WGA as a main source
and with this for the first time in line also with financial accounts.
Table 4. Data used for compilation of transactions and of stocks of financial assets and
liabilities
Assets
Source Data
Liabilities
F.2 F.3 F.4 F.5 F.6 F.8 F.2 F.3 F.4 F.5 F.6 F.8
Calculation of transactions
Transaction data
( integrated in public accounts)
Other transaction data
X
Stock data
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Calculation of stocks
Transaction data
Stock data
X
X
X
X
X
X
X
X
X
Main data source for compilation of transactions and stocks of financial assets and liabilities
is quarterly data based on direct reporting system. Each unit reports data on stocks and net
transactions in financial instruments as assets or liabilities and also information on counterpart
sector. Thus for all main units of the central government sector individual data are available.
38
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
Important source for all units (especially for instrument F.8), available only for the October
EDP notification, are also balance sheet data. For units included in direct reporting system
balance sheet data are used for verification, for remaining units balance sheet data are used as
main source. On regular quarterly basis we use as supplementary data also banking statistics,
Investment fund statistics, International Investment Positions (IIP) and Balance of Payments
statistics (BOP) and also securities statistics. All stocks and transactions which are reported
for financial accounts by individual general government units are compared with above
supplementary sources. In case of differences reasons should be found and eliminated. All
larger and specific transactions should be clarified on regular quarterly basis. Data sources
should be regular amended for specific transactions: debt cancellation, debt assumption,
super-dividends, capital injections, etc. Due to detail in data sources no amendment due to
consolidation should be done. Financial transactions are recorded on accrual basis and in
market value. In compilation of F.8 assets and liabilities also supplementary data sources for
accrual calculation of taxes are used. At the final stage of compilation process we also
compare transactions with change in stocks and all differences should be explained.
Assets
F.2 – direct reporting data for stocks and transactions, balance sheet data and banking
statistics for verification
F.3 – direct reporting data for stocks and transactions, balance sheet data and securities
statistics for verification
F.4 – direct reporting data for stocks and transactions, balance sheet data for verification,
additional information for debt cancellation
F.5 – securities statistics for stocks for F.511 and F.512, Investment fund statistics for stocks
F.52, direct reporting data for stocks F.513 and for all F.5 transactions, additional information
for special transactions (super-dividends, capital injections etc.)
F.6 – counterpart information
F.8 – balance sheet data for stocks (WGA), direct reporting data, supplementary data sources
for accrual calculation of taxes, other accrual adjustment from EDP T2A
Liabilities
F.2 – direct reporting data for stocks and transactions, balance sheet data for verification
F.3 – Ministry of finance data, securities statistics
F.4 – direct reporting data for stocks and transactions, Ministry of finance data, banking
statistics, IIP and BOP data
F.5 - direct reporting data for stocks and transactions
F.8 – balance sheet data for stocks (WGA), direct reporting data, supplementary data sources
for accrual calculation of taxes, other accrual adjustment from EDP T2A
3.2.4.2 Other stock-flow adjustments
“Other stock-flow adjustments” in EDP T3B are according to data prepared by the
Department for public debt of the Ministry of Finance. For “net incurrence (-) of liabilities in
financial instruments” so far no transactions were relevant.
For EDP October 2013 reporting all transactions regarding different financial instruments
(securities, treasure bills, SWAPs) and relevant cash/accrual interest in WB, EDP tables 2 and
3 were canalized in the way that statistical discrepancy for these instruments/transactions in
tables 3 is zero. In EDP table 3B “issuances below (+) nominal value” and relevant
adjustments for interest in tables 3 are with this revision shown separately.
39
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
Premature redemption of debt instruments was intensive particularly in 2008 after Slovenia
entered euro area. In this year five auctions were organized for altogether 13 bonds and
repurchase transactions increased debt by EUR 8.6 mio and the amount was shown in this
stock-flow adjustment. In 2011 redemption of RS 33 and purchase of RS59 at the same time
also increased debt by EUR 10.7 mio. The “redemption of debt above (+)/below (-) nominal
value” was relevant in 2007. However, redemption in this year reduced debt at the amount of
EUR 9.1 mio and this was shown as negative stock-flow adjustment (4 auctions and 11
bonds).
In the period when Slovenia entered EU (2004) part of debt instruments were in other
currencies (USD, SFR, etc.) and adjustments were relevant for “appreciation (+) /
depreciation (-) of foreign currency debt”. In the period after 2007 the debt in foreign
currency was gradually reduced and only small adjustments were necessary in this item of
other stock-flow adjustment (EUR 0.7 mio in 2011).
With the use of financial accounts for T3B no transactions are shown in “other volume
changes in financial liabilities” (from inclusive 2007 on). Before this year in this item
adjustment according to the model used for bonds issued by the SSH/SRF was shown (until
inclusive 2006).
For new units reclassified into general government sector in the first year all current annual
transactions as well as debt figures at the end of the year are included in EDP reporting tables.
In item “Changes in sector classifications” adjustment for debt at the beginning of year is
shown. The last case was in 2011 with the reorganization of the Slovenian Railways into four
units, of which SR Passenger Transport and SR Infrastructure were included into general
government sector (together with 5 non-market public corporations).
Difference between interest accrued (-) and paid (+) are explained above in the section
3.2.3.4.1. and transaction due to “interest flows attributed to swaps and FRAs” were not
applicable until inclusive 2011.
3.2.4.3 Balancing of non-financial and financial accounts, transactions in F.8
This section aims at describing of techniques and methods for balancing non-financial and
financial accounts applied generally for the whole general government sector.
Allocation of discrepancy B.9 vs. B.9f
Analysis and allocation the observed difference in B.9f and B.9 at the level of other groups of
units according to different accounting schemes (cash, cash/accrual and accrual) started for
the first time with the use of WGA for F.8 instruments for the period 2008-2011 with the
October 2012 EDP reporting. The problem of statistical discrepancy in tables 3 increased with
the use of financial accounts for financial assets data in these tables (in the October 2009 EDP
reporting financial accounts were used for financial assets for the period 2005/2008 for the
first time). Before this period for compilation tables 3 financial statements (cash) with
balances A, B and C were used for all groups of units and F.8 instruments were according to
tables 2 with some additional adjustments. In data sources F.2 currency and deposits is
balancing item (residuum as all incomes minus all expenditures in tables A, B and C) and the
statistical discrepancy in tables 3 was not significant.
40
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
With the use of financial accounts data for tables 3 the problem of statistical discrepancy
increased and the main reason was inconsistency in F.8 instruments which were not calculated
according to financial accounts but in the same way as before according to cash/accrual
adjustments in tables 2 with some additions. In the first step debt data were analysed and
revised backward. In 2010 the whole quarterly debt figures were revised from the first quarter
1999 onwards and this revision included calculation of annual gross debt figures also for the
period from the end of 1994 on.
In the last step (EDP October 2012 reporting, 2008-2011) WGA data were used for
calculation F.8 other assets and liabilities at level of each group of units according to different
data sources (central budget/direct budgetary units, public funds, SSH/SRF, public service
providers and public agencies, public corporations). In the permanent working group of
experts from SORS, Bank of Slovenia and Ministry of Finance it was agreed that data
according to financial accounts are used for financial assets in tables 3 regardless the
statistical discrepancy (particularly data of F.2 were not replaced with figures in other sources
even the results would be much more plausible). In the final calculation by groups of units
B.9 was estimated by WGA if main data source for non-financial accounts are cash or
cash/accrual basis (B.9 was slightly revised for public service providers and public agencies)
and for other groups with accrual accounting data sources (SSH/SRF and public corporations)
and B.9f was revised via adjustments in F.8 instruments.
The use WGA for tables 2 and F.8 instruments in tables 3 is still work in progress and due to
availability of these data (only for the October EDP reporting) for current work it was used
for 2012 reporting for the first time. In the October 2013 reporting it was agreed that in the
next step of this revision for April 2014 EDP reporting the Single Treasure Account will be
entirely as independent unit within other B.9 adjustments at central level included with all
transactions in tables 2A and 3B. The same approach is used for transactions of two funds by
SID Bank in the name and on account of government. With ESA2010 introduction all EDP
tables 2 and 3 including debt figures were analysed again and improved for the period from
2010 on. Several inconsistencies were found in debt calculation, intragoverment transactions
(D.73 within S.1311 Central government) and in financial transactions due to inclusion the
Single Treasure Account and Government funds within SID bank in the whole period and
with this the statistical discrepancy is not significant in all year from 2010 on.
Changes to intermediate data
As mentioned above with the use of balance sheet data B.9 is further adjusted according to
F.8 transactions according to WGA for direct (central level, local level and public funds,
social security funds) and indirect budgetary units (public services providers and public
agencies). The problem by this approach is only allocation of transactions in accounts
payable/receivable to individual non-financial components of revenue and expenditure. If data
sources for B.9 calculation are accrual (Slovenian Restitution Fund and public corporations)
transactions on capital accounts are added (capital transfers and GFCF) with some other
transactions for SRF as explained above.
Complementary elements on stocks
As mentioned above financial instruments are according to financial accounts and are due to
exhaustive data sources reliable and therefore not changed. The change of F.8 assets and F.9f
was relevant only in 2009 and particularly 2010 for the SSH/SRF Slovenian Restitution Fund.
41
EDP tables and data sources - Central Government sub-sector, EDP table 2A and 3B
In these two years together with the experts of the fund we were not able to find the reason for
this rather big difference in B.9 and B.9f and the discrepancy was allocated to B.9f via F.8
assets adjustment.
Accruals
As explained above with the use of new source of WGA we work on allocation of statistical
discrepancy by each of other groups of units and for central budget (Working Balance). With
this work (for 2008-2011 for the October 2012 EDP reporting) problems of statistical
discrepancy was minimised with B.9 revision with the use of F.8 instruments according to
data sources of financial accounts for all other groups of units, except the Slovenian
Restitution Fund (2009, 2010) and for central budget. For the Slovenian Restitution Fund the
B.9 is accrual and due to accrual data sources correct and the statistical discrepancy can be
eliminated only with revision of other components. We plan (in 2013) to do some small
further adjustments in B.9 according to new source (WGA) also for the central budget.
Ex-post monitoring
As already explained the present work with new data source (WGA) rather completely new
and improved methods are possible to allocate statistical discrepancy more exactly and to
solve the problem for each other groups of units at subsectors level and for working balances
(budgets). In the future we hope that with this new source already at the second EDP
notification the problem of statistical discrepancy will be if not solved at least clarified and in
the last stage without any reconciliation of F.8 instruments according to new data source.
42
EDP TABLES AND DATA SOURCES - State government sub-sector, EDP table 2B and 3C
3.3. State government sub-sector, EDP table 2B and 3C
The state government subsector (S.1312) is not applicable.
43
Local government sub-sector, EDP table 2C and 3D
3.4. Local government sub-sector, EDP table 2C and 3D
3.4.1
Data sources for Local Government main unit: local budgets
Table x – Availability and use of basic source data for main local government units
Source data used for
compilation of
Available source data
Accounting
basis
(C/A/M)
1
Periodicity
(M/Q/A/O)
2
Time of availability
of annual results
for T-1
First
Final
results
data
3
4
T + days
Source Data Accounting
5
WB
B.9
(NFA)
B.9f
(FA)
6
7
8
cross appropriate cells
T+months
Budget Reporting
C
M
T+45
T+9
(1) Current revenue and
expenditure
(2) Current and capital
revenue and expenditure
(3) Current and capital
revenue and expenditure and
financial transactions
(4) Balance sheets
X
X
Financial Statements
(5) Profit and loss accounts
A
A
T+180
T+6
(6) Balance sheets
X
X
(7) Cash flow statement
Other Reporting
A
Q
T+40
T+2
(8) Statistical surveys
X
(9) Other:
Accounting basis (column 1): C- cash, A- accrual, M-mixed
Periodicity (column 2); M - monthly, Q - quarterly, A - accrual, O - other, to be specified.
Time of availability (column 4): availability of annual results for T-1 = number of months and days after the
reporting period.
Column 6, 7 and 8 – those cells are crossed which refer to data sources used for compilation of the WB, B.9
(non-financial accounts) and B.9f (financial accounts), respectively.
Empty cells in column 1, 2, 3 and 4 mean that the data source does not exist.
3.4.1.1 Details of the basic data sources
Current and capital revenue and expenditure balance of the local budgets is shown in the first
line of EDP T2C and the figure is on cash basis. The source is available within 2 months after
the end of the period and is in SORS available quarterly (monthly data). Data base is
exhaustive and always includes all local units (211 local government budgets). Public
accounts unit receives this data base directly from MoF at the basic account level in Microsoft
44
Local government sub-sector, EDP table 2C and 3D
Excel Format. Data available are identical as for central budget (balance A, B and C) as well
as the use in national accounts via bridge table from components in source to national
accounts categories.
Balance sheets data (item 6) is new source introduced in 2005 by the Ministry of Finance and
this source is important for non-financial and financial accounts. These sources and their use
is at local level similar as for the central government level (see chapter 3.2.1). The source is
only available for the second EDP notification.
3.4.1.2 Statistical surveys used as a basic data source
For financial accounts compilation the Bank of Slovenia introduced direct reporting system
on quarterly basis. At local level the coverage of survey is good as all important local
government units are included. On annual level this source is completed with WGA which
covers all units (see chapter 3.2.2.1).
3.4.1.3 Supplementary data sources and analytical information
Basic data sources for non-financial and financial accounts as mentioned above are complete.
3.4.1.3.1
Supplementary data sources used for the compilation of non-financial accounts
For calculation gross fixed capital formation (GFCF) the primary source is the Survey on
Gross Fixed Capital Formation (INV-01) ant the source is explained in chapter 3.2.1.3.1.
3.4.1.3.2
Supplementary data sources used for the compilation of financial accounts
Not relevant, see above.
45
Local government sub-sector, EDP table 2C and 3D
3.4.2
Data sources for other Local Government units
Table x – Availability and use of basic source data for other local government unit:
public funds, other public service providers and agencies, local communes and public
corporations
Source data used for
compilation of
Available source data
Accounting
basis
(C/A/M)
1
Periodicity
(M/Q/A/O)
2
Time of availability
of annual results
for T-1
First
Final
results
data
3
4
T + days
Source Data Accounting
5
WB
B.9
(NFA)
B.9f
(FA)
6
7
8
cross appropriate cells
T+months
Budget Reporting
A
A
T+120
T+6
(1) Current revenue and
expenditure
(2) Current and capital
revenue and expenditure
(3) Current and capital
revenue and expenditure and
financial transactions
(4) Balance sheets (PB)
X
X
Financial Statements
A
A
T+120
T+4
(5) Profit and loss accounts
X
A
A
T+120
T+4
(6) Balance sheets
X
T+4
(7) Cash flow statement
X
C
A
T+120
Other Reporting
A
Q
T+40
T+2
(8) Statistical surveys
X
(9) Other:
Accounting basis (column 1): C- cash, A- accrual, M-mixed
Periodicity (column 2); M - monthly, Q - quarterly, A - accrual, O - other, to be specified.
Time of availability (column 4): availability of annual results for T-1 = number of months and days after the
reporting period.
Column 6, 7 and 8 – those cells are crossed which refer to data sources used for compilation of the WB, B.9
(non-financial accounts) and B.9f (financial accounts), respectively.
Empty cells in column 1, 2, 3 and 4 mean that the data source does not exist.
3.4.2.1 Details of the basic data sources
At the local government level other groups of units are divided into several groups of units:
public funds (9 units), local communes (795 units), public service providers and agencies
(1011 units), non-market public corporations (19 units) and associations of municipalities (3
units). Public funds, local communes and associations have the same accounts as direct
budgetary units: cash flow statement and the source has the same structure as for local
budgets. Public service providers and agencies have annually two set of accounting data, cash
46
Local government sub-sector, EDP table 2C and 3D
flow statement (the basic structure is the same as for direct budgetary units with less detail)
and accrual profit and loss accounts with the same structure as non-financial corporations.
Data sources are detailed and with the standard bridge tables components in the sources are
reclassified in national accounts non-financial components.
All groups of units have at the same time (item 6, t + 4 months) also balance sheets data.
WGA (item 4) are available later (t + 6 months) and the source is more detailed and covers all
groups of other units at local level exhaustive (see chapter 3.2.1.).
3.4.2.2 Statistical surveys used as a basic data source
For financial accounts compilation the Bank of Slovenia introduced direct reporting system
on quarterly basis. At local level the coverage of survey is good and all important local
government units are included. On annual level this source is completed with the WGA which
covers all units (see chapter 3.2.2.1).
3.4.2.3 Supplementary data sources and analytical information
For calculation gross fixed capital formation (GFCF) the primary source is the Survey on
Gross Fixed Capital Formation (INV-01) ant the source is explained in chapter 3.2.1.3.1.
3.4.3
EDP table 2C
3.4.3.1 Working balance - use for the compilation of national accounts
As mentioned above the first line of EDP T2C the figure of deficit is according to the local
budgets balance of current and capital revenue and expenditure.
3.4.3.2 Legal basis of the working balance
The figure, as reported in the working balance of EDP T2C, refers to current deficit (surplus)
of the local budgets (Občinski proračuni RS). Monthly data on local budgets are collected by
the Ministry of Finance and the budgets are in line with the International Monetary Fund
standards. Transactions are shown according to cash principle and in three balances: balance
A Current revenue and expenditure with deficit (surplus) as balancing item, balance B
Financing and lending and balance C Borrowing. Preliminary local budgets data are at the
basic account level available approximately 60 days after the end of the period (year, month)
and local budgets are finalised until the end of February. Budgets are regularly audited by the
Court of Audit and approved at the local level government council until the end of September
each year. Regarding local budgets as the basic data source for the working balance of EDP
T2C there is usually no significant difference between the April and the October EDP
notification.
3.4.3.3 Coverage of units in the working balance
Coverage of the units in the working balance is complete.
3.4.3.3.1
Units to be classified outside the subsector, but reported in the WB
Not relevant.
47
Local government sub-sector, EDP table 2C and 3D
3.4.3.3.2
Units to be classified inside the subsector, but not reported in the WB
See other units at local level government.
3.4.3.4 Accounting basis of the working balance
3.4.3.4.1
Accrual adjustments relating to interest D.41, as reported in EDP T2C
Local government debt includes only bank loans and stocks are adjusted for interest: In EDP
T2C the difference between accrual interest and cash figure in data sources is shown. The
calculation of accrual interest based on average quarterly bank interest rate according to data
of the Bank of Slovenia and average local government debt. In 2011 the total accrual interest
for local government amounted to EUR 20.8 mio, of which accrual adjustment EUR 3.4 mio.
3.4.3.4.2
Accrual adjustments reported under other accounts receivable/payable F.8 in EDP T2C
More than 70% of the total revenue of local budgets are transfers from central budget. For all
other mostly small scale revenue cash data are used in national accounts and in EDP
reporting.
Main cash data for expenditure components are adjusted with WGA accounts payable:
compensation of employees, intermediate consumption, social benefits in cash and gross fixed
capital formation. Current transfers (D.75) are estimated by one month time lag approach and
not with WGA due to problems with this source. This revision was implemented in EDP
October 2015 (from 2011 on).
3.4.3.4.3
Other accrual adjustments in EDP T2C
As explained above also interest payable cash data are adjusted to accrual figure. In 2011 and
2012 unpaid bills of Health Social Security Fund at the end of the year to health services
(health homes) at local level are shown as accrual receivable adjustment (D.73 from S.1314 to
S.1313).
3.4.3.5 Completeness of non-financial flows covered in the working balance
Non-financial flows in the working balance are complete.
3.4.3.6 Financial transactions included in the working balance
Not relevant.
3.4.3.7 Other adjustments reported in EDP T2C
At local government level two items are shown within other adjustments in EDP T2C:
guarantees called and adjustments for GFCF purchases by financial leasing. The source for
guarantees called is local budgets balance B. Adjustment of GFCF due to purchases via
financial leasing is shown within other adjustments and this in principle GFCF adjustment is
estimated with data on stocks of financial leasing loans at the beginning and at the end of year
in financial accounts by the Bank of Slovenia.
3.4.3.8 Net lending/net borrowing of local government
48
Local government sub-sector, EDP table 2C and 3D
Net lending/net borrowing calculation at the local level government is similar as at the central
level. B.9 for groups of other units is in the first step from data sources cash (except public
corporation with accrual accounting standards) and in the second step adjusted with balance
sheet WGA data of F.8 receivables and payables to accrual figure. For these groups in EDP
table 3D the statistical discrepancy is minimal. For working balances (local budgets) this
approach showed some more problem and B.9 adjustment with balance sheet data probably
will not be enough for elimination of statistical discrepancy. Comparison of working balance
data (balances A, B and C) showed that the problem could be minimal if F.2 in working
balance is used for table 3D. However, we decided to use data base of financial accounts for
all financial instruments, including F.2 due to consistency.
3.4.4
EDP table 3D
3.4.4.1 Transactions in financial assets and liabilities
Table x. Data used for compilation of transactions and of stocks of financial assets and
liabilities
Assets
Source Data
Liabilities
F.2 F.3 F.4 F.5 F.6 F.8 F.2 F.3 F.4 F.5 F.6 F.8
Calculation of transactions
Transaction data
( integrated in public accounts)
Other transaction data
X
Stock data
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Calculation of stocks
Transaction data
Stock data
X
X
X
X
X
Main data source for compilation of transactions and stocks of financial assets and liabilities
is quarterly data based on direct reporting system. Each unit reports data on stocks and net
transactions in the financial instruments as assets or liabilities and also information on
counterpart sector. Thus for all main units of local government sector we have individual data
available. Important source for all units (especially for instrument F.8), available only for the
October EDP notification, are also balance sheet data. For units included in direct reporting
system balance sheet data are used for verification, for remaining units balance sheet data are
used as main source. On regular quarterly basis we use as supplementary data also local
budgets balance B, banking statistics, Investment fund statistics, International Investment
Positions (IIP) and Balance of Payments statistics (BOP) and also securities statistics. All
stocks and transactions, which are reported for FA by individual local government unit are
compared with above supplementary sources. In case of differences reasons should be found
and eliminated. All larger and specific transactions should be clarified on regular quarterly
basis. Due to detail in data sources no amendment due to consolidation should be done.
Financial transactions are recorded on accrual basis and in market value. At final stage of
49
Local government sub-sector, EDP table 2C and 3D
compilation process we also compare transactions with change in stocks and all differences
should be explained.
Assets
F.2 – direct reporting data for stocks and transactions, balance sheet data and banking
statistics
F.3 – direct reporting data for stocks and transactions, balance sheet data and securities
statistics
F.4 – direct reporting data for stocks and transactions, balance sheet data for verification,
F.5 – securities statistics for stocks for F.511 and F.512, Investment fund statistics for stocks
F.52, direct reporting data for stocks F.513, balances B and additional information for all F.5
transactions
F.6 – counterpart information
F.8 – balance sheet data for stocks, direct reporting data
Liabilities
F.4 – direct reporting data for stocks and transactions, balance sheet data, banking statistics
F.8 – direct reporting data, balance sheet data for stocks,
3.4.4.2 Other stock-flow adjustments
Not relevant.
50
EDP tables and data sources - Social security sub-sector, EDP table 2D and 3E
3.5. Social security sub-sector, EDP table 2D and 3E
3.5.1
Data sources for Social Security Funds main units : xxx
Table x – Availability and use of basic source data for social security funds
Source data used for
compilation of
Available source data
Accounting
basis
(C/A/M)
1
Periodicity
(M/Q/A/O)
2
Time of availability
of annual results
for T-1
First
Final
results
data
3
4
T + days
Source Data Accounting
5
WB
B.9
(NFA)
B.9f
(FA)
6
7
8
cross appropriate cells
T+months
Budget Reporting
C
Q
T+15
T+9
A
A
T+180
T+6
(1) Current revenue and
expenditure
(2) Current and capital
revenue and expenditure
(3) Current and capital
revenue and expenditure and
financial transactions
(4) Balance sheets
X
X
X
X
Financial Statements
(5) Profit and loss accounts
(6) Balance sheets
(7) Cash flow statement
Other Reporting
A
Q
T+40
T+2
(8) Statistical surveys
X
(9) Other:
Accounting basis (column 1): C- cash, A- accrual, M-mixed
Periodicity (column 2); M - monthly, Q - quarterly, A - accrual, O - other, to be specified.
Time of availability (column 4): availability of annual results for T-1 = number of months and days after the
reporting period.
Column 6,7 and 8 – those cells are crossed which refer to data sources used for compilation of the WB, B.9
(non-financial accounts) and B.9f (financial accounts), respectively.
Empty cells in column 1, 2, 3 and 4 mean that the data source does not exist.
3.5.1.1 Details of the basic data sources
Three units are in this subsector: Health Social Security Fund (Zavod za zdravstveno
zavarovanje Slovenije - ZZZS) and Pension Social Security Fund (Zavod za pokojninsko in
invalidsko zavarovanje Slovenije - ZPIZ) and the Capital Fund d.d. (Kapitalska družba d.d.).
Current and capital revenue and expenditure balance of the ZZZS and ZPIZ is shown in the
first line of EDP T2D and the figure is on cash basis. The source is available within one
months after the end of the period and is in SORS available quarterly (monthly data). Public
accounts unit receives this data base directly from MoF at the basic account level in Microsoft
Excel Format. Data available are identical as for central and local budgets (balance A, B and
51
EDP tables and data sources - Social security sub-sector, EDP table 2D and 3E
C) as well as the use in national accounts via bridge table from components in source to
national accounts categories.
3.5.1.2 Statistical surveys used as a basic data source
For financial accounts compilation the Bank of Slovenia introduced direct reporting system
on quarterly basis. On annual level this source is completed with the WGA which covers all
units (see chapter 3.2.2.1).
3.5.1.3 Supplementary data sources and analytical information.
3.5.1.3.1
Supplementary data sources used for the compilation of non-financial accounts
No supplementary data needed.
3.5.1.3.2
Supplementary data sources used for the compilation of financial accounts
No supplementary data needed.
52
EDP tables and data sources - Social security sub-sector, EDP table 2D and 3E
3.5.2
Data sources for other Social Security units
Table x – Availability and use of basic source data for other social security units
Source data used for
compilation of
Available source data
Accounting
basis
(C/A/M)
1
Periodicity
(M/Q/A/O)
2
Time of availability
of annual results
for T-1
First
Final
results
data
3
4
T + days
Source Data Accounting
5
WB
B.9
(NFA)
B.9f
(FA)
6
7
8
cross appropriate cells
T+months
Budget Reporting
(1) Current revenue and
expenditure
(2) Current and capital
revenue and expenditure
(3) Current and capital
revenue and expenditure and
financial transactions
(4) Balance sheets
Financial Statements
A
A
A
A
T+120
T+120
T+4
(5) Profit and loss accounts
X
T+4
(6) Balance sheets
X
X
(7) Cash flow statement
Other Reporting
A
Q
T+40
T+2
(8) Statistical surveys
X
(9) Other:
Accounting basis (column 1): C- cash, A- accrual, M-mixed
Periodicity (column 2); M - monthly, Q - quarterly, A - accrual, O - other, to be specified.
Time of availability (column 4): availability of annual results for T-1 = number of months and days after the
reporting period.
Column 6,7 and 8 – those cells are crossed which refer to data sources used for compilation of the WB, B.9
(non-financial accounts) and B.9f (financial accounts), respectively.
Empty cells in column 1, 2, 3 and 4 mean that the data source does not exist.
3.5.2.1 Details of the basic data sources
Annual accounting data for the Capital Fund d.d. (Kapitalska družba d.d. – KAD) are accrual
according to corporation law. The KAD was established with certain amount of capital at the
beginning of privatisation with the purpose to cover part of annual loses of ZPIZ
(approximately at least EUR 50 mio annually – 0.2% of GDP, in non-financial accounts this is
shown as intra sub-sector transfer).
3.5.2.2 Statistical surveys used as a basic data source
No additional data sources.
53
EDP tables and data sources - Social security sub-sector, EDP table 2D and 3E
3.5.2.3 Supplementary data sources and analytical information
Annual Report of KAD is important source for final compilation of non-financial accounts.
The source is available approximately 7 months after the end of the year.
3.5.2.4 Extra-budgetary accounts
This section provides information on the so called "extra-budgetary accounts" of the main
local government entities, i.e. about flows, which are not recorded in budgetary accounts
which enter the WB, as reported in the first line of EDP table 2.
Non-financial flows recorded in EBA
Not applicable.
Financial flows recorded in EBA
Not applicable.
3.5.3
EDP table 2D
3.5.3.1 Working balance - use for national accounts compilation
As mentioned above the first line of EDP T2D the figure of deficit is according to the ZZZS
and ZPIZ budgets balance of current and capital revenue and expenditure.
3.5.3.2 Legal basis of the working balance
The figure, as reported in the working balance of EDP T2D, refers to current deficit (surplus)
of ZZZS and ZPIZ. Monthly data are collected by the Ministry of Finance and the budgets are
prepared in line with the International Monetary Fund standards. Transactions are shown
according to cash principle and in three balances: balance A Current revenue and expenditure
with deficit (surplus) as balancing item, balance B Financing and lending and balance C
Borrowing. Preliminary budgets data are at the basic account level available approximately 30
days after the end of the period (year, month) and social security funds budgets are finalised
until the end of February. Budgets are regularly audited by the Court of Audit and approved at
the council of unit until the end of September each year. Regarding social security budgets as
the basic data source for the working balance of EDP T2D there is usually no difference
between the April and the October EDP notification.
3.5.3.3 Coverage of units in the working balance
Coverage is complete (2 units: ZZZS and ZPIZ).
3.5.3.3.1
Units to be classified outside the subsector, but reported in the WB
Not applicable.
3.5.3.3.2
Units to be classified inside the subsector, but not reported in the WB
Capital Fund d. d.
54
EDP tables and data sources - Social security sub-sector, EDP table 2D and 3E
3.5.3.4 Accounting basis of the working balance
3.5.3.4.1
Accrual adjustments relating to interest D.41, as reported in EP T2D
Accrual adjustment is not necessary because interest flows are negligible.
3.5.3.4.2
Accrual adjustments reported under other accounts receivable/payable F.8 in EDP T2D
Other accounts payable are in October notification adjusted by WGA and preliminary time
lagged in April notification, for intermediate consumption, compensation of employees,
social benefits in cash and in kind and GFCF. Transfers to other sub-sectors of general
government (D.73) are already in April notification adjusted with data of financial accounts
and the estimate are the same as with WGA data base in October notification.
Other accounts receivable only show time lagged adjustment for social security contributions
(one month) as the main revenue of ZZZS and ZPIZ.
3.5.3.4.3
Other accrual adjustments in EDP T2D
Except social security contributions (one month time lag adjustment) all other accrual
adjustment in EDP T2D are according to WGA..
3.5.3.5 Completeness of non-financial flows covered in the working balance
Non- financial flows are complete in the working balance.
3.5.3.6 Financial transactions included in the working balance
Not relevant.
3.5.3.7 Other adjustments reported in EDP T2D
In other adjustment two adjustments are shown: adjustments for purchases of GFCF with
financial leasing and for statistical discrepancy due to differences between intra government
flows (between ZZZS and ZPIZ, D.73). For KAD other adjustments include capital injections
of this unit in loss making companies in the period from 2007 on (including bank in 2012 – in
NLB d.d. EUR 33 mio) and capital injection in KAD from central budget in 2011 (EUR 90
mio).
3.5.3.8 Net lending/net borrowing of social security funds
Cash deficit in public accounts of ZPIZ is by definition zero because the central budget (partly
also KAD) annually must pay all difference between current revenue and expenditure. ZZZS
according to public finance regulation cannot borrow and in the last years substantial accrual
adjustments were necessary due to unpaid accounts at the end of the year (to other general
government subsectors and also to other sectors). After all adjustments B.9 and B.9f are
almost equal and there is no other statistical discrepancy for WB in table 3.E. Regardless of
all efforts KAD has always rather significant statistical discrepancy and this has not been
clarified so far (statistical discrepancy in S.1314).
55
EDP tables and data sources - Social security sub-sector, EDP table 2D and 3E
3.5.4
EDP table 3E
3.5.4.1 Transactions in financial assets and liabilities
Table x. Data used for compilation of transactions and of stocks of financial assets and
liabilities
Assets
Source Data
Liabilities
F.2 F.3 F.4 F.5 F.6 F.8 F.2 F.3 F.4 F.5 F.6 F.8
Calculation of transactions
Transaction data
( integrated in public accounts)
Other transaction data
X
Stock data
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Calculation of stocks
Transaction data
Stock data
X
X
X
X
X
Main data source for compilation of transactions and stocks of financial assets and liabilities
is quarterly data based on direct reporting system. All three units report data on stocks and net
transactions in the financial instruments as assets or liabilities and also information on
counterpart sector. Thus we have individual data available. Important source for ZPIZ and
ZZZS (especially for instrument F.8), available only for the October EDP notification, are
also balance sheet data, which are used for verification. On regular quarterly basis we use as
supplementary data also banking statistics, Investment fund statistics, International
Investment Positions (IIP) and Balance of Payments statistics (BOP) and also securities
statistics. All stocks and transactions, which are reported for FA are compared with above
supplementary sources and in case of differences reasons should be found and eliminated. All
larger and specific transactions should be clarified on regular quarterly basis. Due to detail in
data sources no amendment due to consolidation should be done. Financial transactions are
recorded on accrual basis and in market value. In compilation of F.8 assets also
supplementary data sources for accrual calculation of social contributions are used. At final
stage of compilation process we also compare transactions with change in stocks and all
differences should be explained.
Assets
F.2 – direct reporting data for stocks and transactions, balance sheet data and banking
statistics for verification
F.3 – direct reporting data for stocks and transactions, balance sheet data and securities
statistics for verification
F.4 – direct reporting data for stocks and transactions, balance sheet data for verification,
F.5 – securities statistics for stocks for F.511 and F.512, Investment fund statistics for stocks
F.52, direct reporting data for stocks F.513, direct reporting data for all F.5 transactions,
additional information for special transactions (super-dividends, capital injections etc.)
56
EDP tables and data sources - Social security sub-sector, EDP table 2D and 3E
F.6 – counterpart information
F.8 – balance sheet data for stocks, direct reporting data, supplementary data sources for
accrual calculation of social contributions
Liabilities
F.4 – direct reporting data for stocks and transactions, banking statistics for verification
F.5 – direct reporting data for stocks and transactions
F.8 – balance sheet data for stocks, direct reporting data
3.5.4.2 Other stock-flow adjustments
Not relevant.
57
EDP tables and data sources - Link between EDP T2 and related EDP T3
3.6. Link between EDP T2 and related EDP T3
The monitoring of the link between the individual adjustments in EDP T2 and the related
transactions reported in EDP T3 is important for the assessment of GFS data quality.
It is not expected that the adjustments from EDP T2 would be clearly identified in EDT3.
− First, this is due to different coverage of units, because the adjustments in EDP T2
should refer only to the main entity reported in the WB, while transactions in EDP T3
reflect the whole subsector.
− Second, due to the accounting basis and coverage of transactions reported in the WB.
For the former, if the WB is on accrual basis, theoretically there is no need for
adjustments in other accounts receivable/payable F.8 in EDP T2, but it should be
ensured that the accrual recordings in non-financial accounts are linked to transactions
in F.8 reported in EDP T3 and in FA. For the latter (coverage of transactions), the WB
balance as reported in EDP T2 typically does not cover all financial flows, since some
are booked in the so called extra-budgetary accounts of the main entity.
− Third, adjustments/transactions reported in EDP T2A are non-consolidated, since they
refer to the main entity only, as recorded in the working balance (e.g. loans, other
accounts receivable/payable, etc.), while financial transactions recorded in EDP T3
refer to the whole subsector and are consolidated.
As far as specific imputations are concerned, such as debt cancellation, debt assumption etc.,
which are reported in EDP T2, these should be reflected also in financial accounts and EDP
T3 under the related financial instrument.
Therefore, in order to ensure consistency between non-financial and financial accounts and
quality of GFS data, statisticians are to be able to explain and to quantify a link between flows
reported in EDP T2 and EDP T3.
3.6.1
Coverage of units
With Government Decree (1998, revision 2004 and 2013) the Standard Classification of
Institutional Sectors according to ESA 1995 was introduced in the Business Register. Current
work on institutional sectorisation is organised in the permanent working group of 2
representatives from SORS (chair), Bank of Slovenia, Ministry of Finance and AJPES.
General government units have additional codes and are divided into direct and indirect
budget units by groups (see other groups of units) at subsectors level. With this the same list
of general government units by groups and subgroups at subsector level is used for financial
and non-financial accounts compilation. Therefore, non-financial accounts and financial
accounts are at group (unit) level exhaustive and comparable and the coverage of units in
EDP tables 2 and 3 is the same.
3.6.2
Financial transactions
Financial transactions which are excluded from the WB are rather exceptional and relevant
only for WB at central level. Main data sources for financial accounts based on direct
reporting (quarterly statistical survey for financial accounts, banking statistics and WGA) and
not on balances of WB. Each financial transaction in WB is discussed in working group and
there is usually no inconsistency with relevant instruments of financial accounts data.
58
EDP tables and data sources - Link between EDP T2 and related EDP T3
3.6.3
Adjustments for accrued interest D.41
Interest receivable/payable is according to data sources partly in cash (direct budgetary units
and public funds) and accrual (public service providers and agencies, the SSH/SRF, the
Capital Fund and public corporations).
As explained in chapter 3.2.3.4.1 adjustments for accrued interest refer to expenditure as well
as to revenue. The main adjustment to cash payments is necessary in WB of central
government and this is accrual adjustments for interest unpaid at the end of the year by each
instrument/security. Accrual adjustment also includes correction for interest paid at
guarantees called, interest paid for EFSF loan (from 2011 on) and net difference between
advanced payments of interest between cash and accrual (in 2012 also for SWAP in USD for
the first time). The figure of accrual adjustment for interest expenditure is not the same in
EDP table 2A and in table 3B. In table 3 only accrued and unpaid interest at the end of year
are shown. At local level cash expenditure for interest includes only loans in banks (debt at
local level entirely consists of loans) and these are adjusted according to average quarterly
interest rates to accrual figure. The figure of accrual adjustment for interest expenditure is the
same in EDP table 2C and in table 3D.
Interest receivable is according to data sources partly in cash (direct budgetary units and
public funds) and in accrual (public service providers and agencies, the SSH/SRF and public
corporations). The only correction is due to EZR revenue for deposits in the banks which is as
annual surplus of EZR included in WB (more detail see in chapter 3.2.3.4.1). From 2011
interest receivable includes also adjustment for EFSF loan revenue.
3.6.4
Other accounts receivable/payable F.8
As already mentioned in the chapter 3 above in the EDP reporting in the first period only cash
WB as main data source (balances A, B and C) for EDP T3 were used. In this period
statistical discrepancy was rather small because in the system of balances A, B and C
currency and deposits (F.2) was residual item. With some additional adjustments F.8 in all
tables 3 was the same as in tables 2 and this covered only accrual adjustments to WB.
In the second period data of financial accounts (from 2004 on) were used for all transactions
in tables 3 except for F.8. Calculation of F.8 was the same as in the first period. In this period
in some years significant increase of statistical discrepancy appeared.
To solve the problem of statistical discrepancy in EDP tables 3 SORS first checked and
revised quarterly debt figures and completed time series for debt from the first quarter 1999
on. The second step was the use of new source of WGA in adjustments in tables 2 and tables
3. With this also F.8 instruments in tables 3 were the same as in financial accounts. This work
started and was included in figures of EDP September 2012 notification. However, this work
as well as figures 2008-2011 was preliminary because new source is not yet completely
utilised and analysed.
In new source (WGA) F.8 components are divided into business (relevant for B.9 calculation)
and on the financial part (advances and similar). In table 3 all accrual adjustments for taxes
and social security contributions from table 2 and also for EU advances are added in F.8
receivables. Tables 3 also include F.8 instruments for all other government groups of units.
59
EDP tables and data sources - Link between EDP T2 and related EDP T3
3.6.5
Other adjustments/imputations
Other adjustments in EDP T2 are mostly in T3 included and already reflected in relevant
instruments according to data sources for financial accounts correctly. Other adjustments are
relevant for central government. At local level only guarantees called are relevant and at
social security funds, capital injections (transfers) in loss making companies by the Capital
Fund.
Specific transactions are analysed and imputed if necessary:
- debt assumption increase liabilities (debt),
- super-dividends reduce F.5 and increase F.2,
- capital transfers in banks and in loss making companies only reduce F.2.
60
EDP tables and data sources - General comments on data sources - EDP table 4
3.7. General comments on data sources
As mentioned in this chapter above data sources for non-financial and financial accounts are
complete and cover all units. It is important that Standard Sectorisation of Institutional
Sectors (SSIS) according to ESA 2010 is official by government decree (2013) and
institutional code is included in the Business Register maintained by AJPES. With SSIS
government units are explicitly divided into direct budgetary units and indirect budgetary
units and this distinctions simplified the correctly use of WB and sources for other units
(indirect budgetary units not included in WB) in both, non-financial and financial accounts
compilation. This distinction is also taken into accounts in compilation budgetary statistics
and it was in SSIS included by MoF proposal.
Present accounting rules and standards together with the system of accounts (cash for all units
and parallel also accrual for other units) were introduced in 2002 and no changes are planned
in the near future.
3.8. EDP table 4
Table 4 – The statements on the provision of additional data contained in the Council minutes
of 23/11/1993 request the submission of trade credits and advances, amounts outstanding in
the government debt from the financing of public undertakings, differences between the face
value and the present value of government debt and GNI at market prices.
3.8.1
Trade credits and advances
In compilation the stock of liabilities in trade credits and advances against units outside
general government in EDP table 4 two data sources are used and in these sources coverage is
complete. For direct and indirect budgetary units the source is WGA which shows two
relevant accounts: short term liabilities for received advances and securities (1) and short term
liabilities to suppliers (2). The second source is balance sheet data for non-market public
corporations included in the general government (source is relevant also for the Capital Fund
and the SSH/SRF): short term (1) and long term liabilities to suppliers (2).
For compilation “net incurrence of other liabilities” in EDP T3 the same source is used and
data are in both tables consistent.
3.8.2
Amount outstanding in the government debt from the financing of public
undertakings
Not relevant.
61
Revision policy used for annual GFS
4. Revision policy used for annual GFS
This section relates to the revision policy concerning annual non-financial and financial
government accounts. It describes the country policy for revisions with and without impact on
the deficit (non-financial accounts for general government) and debt (financial accounts for
general government).
4.1. Existence of a revision policy in Slovenia
There are several basic principles regarding revisions of government accounts and EDP
tables. The first principle is simple: EDP data and ESA2010 tables of government accounts
must be consistent, published and publicly available before being transmitted to Eurostat. In
the routine revisions policy we also try to avoid big differences between the first and the
second EDP notification because almost all basic data sources are only available for the
second EDP notification. Therefore, for the first notification the most important data and data
for major units are collected partly by the Ministry of Finance and partly by SORS directly
from some important units (SŽ Passenger Transport, SŽ Infrastructure, SSH/SRF, Capital
Fund, DSU – Družba za upravljanje). Also for a rather unpredictable annual accrual
adjustment for profit tax of companies at the first notification EDP tables are revised between
10-15 April when final annual data for the previous year for this tax become available.
At each EDP reporting, data for the last four years are open to revision. Methodological
changes and improvements are included in all years, if necessary. Reclassifications of units
are included only in the second notification (October) because these effect GDP level and are
in the EDP and ESA2010 tables included together with GDP revision work which is always
published for the last four years in August each year. As data sources are completed for the
second EDP notification, many small routine revisions are possible between the first and the
second notification. This implies that, in general, the first complete revision can be followed
with other small routine revisions in the next three years due to improvement of methods and
due to mistakes and inconsistency in methods used.
For general government gross debt data are completely available already at the first EDP
notification in April and routine revisions are usually for this component not necessary. Debt
of new general government units due to reclassifications is included at the end of the year
with relevant adjustment in EDP T3 within other adjustments.
4.1.1
Relating to deficit and non-financial accounts
All backward revisions with simultaneous impact on deficit and GDP level (components) are
possible only in the October notification. Therefore, in the April notification work is mainly
focused on the first estimate for the previous year and only to revisions not GDP relevant for
years before t-1.
Revisions not relevant for deficit are mostly the consequence of improved bridge tables
between components in data sources and national accounts. This type of revisions is part of
regular work particularly for WB at the central level (central budget) because volatile monthly
data are checked with more detailed information on individual transactions obtained from the
Ministry of Finance. Until 2012 only EU agricultural subsidies were not shown in government
accounts. In 2013 also all other EU flows passing through government to non-government
62
Revision policy used for annual GFS
units of other institutional sectors were excluded from general government accounts for the
period from 2004 on. Data were provided by the Ministry of Finance and prepared at
quarterly level and are now part of current work starting with the September 2013 data
transmission. In 2011 EUR 435 mio or 1.2% of GDP and 68% of the total EU inflows are not
included in government accounts.
4.1.2
Relating to debt and financial accounts
Routine revisions of financial accounts usually take place twice a year in March and in
September in order to assure consistency with the EDP reporting. In March there are usually
only small revisions; major revisions also with impact on B.9f are made in September because
all data sources are available only for the second EDP notification. September revisions
include also eventual methodological changes, improvements in data sources, reclassification
of units and correction of errors found. Because general government gross debt data are
completely available already in the first EDP notification, later revisions are not necessary.
Some revisions of financial accounts data have a small scale impact on B.9f revision.
4.2. Reasons for other than ordinary revisions
Reasons for other than routine revisions are rather exceptional and are in new or improved
data detail or new information or facts in WB transactions. The case was a surplus of the EZR
which was in WB shown as non-tax revenue and it was necessary to reclassify it into interest
revenue together with difference between cash/accrual principle. Such revisions are usually
done for the whole period under revision (last four years). Also important revisions due to
new data sources and methods (such as WGA) are integrated into accounts for all years under
revision.
4.3. Timetable for finalising and revising the accounts
With timetable for finalising and revising the accounts we follow the ESA transmission
programme. Non-financial accounts for local government and for social security funds are
usually revised only once because all data sources are available for the previous year already
for the October EDP notification. At the central level routine revisions are possible also later
because for some components (income tax of households) final data for year t are available in
t + 15 months.
The majority of basic data for financial accounts are available within 2 months after the end
of the year/quarter. Only small revisions are possible after data sources are completed with
WGA in June/July each year. Some changes in EDP T2 relevant for financial accounts are
incorporated later and sometimes after the regular transmission of EDP and ESA2010 tables
in the October notification.
63
Sector delimitation – practical aspects - Sector classification of units
B. Methodological issues
5. Sector delimitation – practical aspects
5.1. Sector classification of units
General government is defined by ESA2010 §2.111 as "… institutional units which are nonmarket producers whose output is intended for individual and collective consumption, and are
financed by compulsory payments made by units belonging to other sectors, and institutional
units principally engaged in the redistribution of national income and wealth". Moreover,
§20.05 specifies that the general government sector “consists of all government units and all
non-market non-profits institutions (NPIs) that are controlled by government units. It also
comprises other non-market as identified in paragraphs 20.18 to 20.39”.
It is necessary to determine:
a. if it is an institutional unit (ESA2010 2.12 describes the rules according to which an entity
can be considered as an institutional unit)
b. if it is a public institutional unit (ESA 2010 §20.18 and MGDD I.2.3 – define the notion of
control by the government over an entity as "the ability to determine the general policy or
programme of that entity”…. According to the list of criteria listed in ESA 2010 §20.309 )
c. if it is a non-market public institutional unit - reference to "Market-non-market
delineation" (ESA 2010 §20.19 to §20.28 and MGDD I.2.4)"
Subsectors of general government include institutional units which are treated as non-market
producers according to ESA2010. Three groups of units are distinguished. The first group are
direct budget units at the central and at the local government level. The second group are
indirect budget units (public service providers) which are according to the 50% criterion
classified as non-market producers. The third group are public corporations identified as nonmarket producers following the 50% rule.
Delimitation of the general government sector is regularly maintained. The shares of
production cost covered by sales are calculated for each indirect budget unit and each public
corporation once a year considering annual accounting statements. Decisions on
reclassification of units, for which the calculation for consecutive years indicate that their
institutional sector indication is not correct, are taken by the Commission for solving
controversial cases considering also qualitative information.
The business register contains the records of all business units. The date of creation is one of
basic information kept in the business register.
When unit enters the business register the institutional sector indication is assigned by AJPES
(by a desk officer at the time of registration). Monitoring and reclassification of institutional
sector indication is responsibility of the Commission for solving controversial cases.
64
Sector delimitation – practical aspects - Sector classification of units
5.1.1
Criteria used for sector classification of new units
The classification of new units is based on the legal organisational form, the main activity
code, the type of ownership and on other information. For new units information on market /
non-market behaviour is not available and because of that the sector classification for new
units is closely checked when accounting statements are available for them; they are then
reclassified using one year information only, if necessary.
5.1.2
Updating of the register
The business register is updated regularly by data from various registers on business units
within five days after data have been changed. When properties of a business unit have been
significantly changed in such a way that the institutional sector indication has to be changed
(e.g. ownership of individual unit), AJPES often changes the sector code. However, SORS
once a year re-checks if changes in units’ ownership are reflected in institutional sub-sector
indication using information from other registers.
Availability of data on ownership in the business register depends on the legal organisational
form; for limited liability companies the data on ownership is available and updated, for
several legal organisational forms only data on owners are available. For joint stock
companies data on ownership is not available – for those units information from the Central
securities clearing corporation are used.
The calculation of the 50% rule for market / non-market delineation is performing by SORS
using data on accounting statements. The test is applied once a year.
For public service providers and public agencies we use accounting statements. The relevant
variables are:
- sales of goods and services
- other current transfers
- capital revenue
- rents
- cost of sold goods and materials for resale
- labour cost
- depreciation
- cost of materials
- cost of services
- interest.
For public corporation we use accounting statements for corporation. The relevant variables
are:
- net sales
- increase/decrease in inventories of finished and unfinished production
- capitalized own-account production
- cost of goods, material and services
- value of sold goods purchased for resale
- other costs of services
- labour costs
- depreciation
- other costs
- interest.
65
Sector delimitation – practical aspects - Sector classification of units
As non-market public corporations we treat units below the 50% rule and those receiving
subsidies from general government.
Reclassification of institutional sector indication is implemented in the business register after
decision is taken and usually no backwards revisions are made. The main benefit of this
approach is consistency at the national level using institutional sector information from the
business register. Exceptionally, for specific units backward revision are implemented
following discussions (and decisions) with Eurostat.
5.1.3
Consistency between different data sources concerning classification of units
The basic data source concerning institutional classification for national accounts, statistical
survey and other statistics is the business register. The possible inconsistency is caused by
different vintages of data compilation and the time lag needed for updating individual
databases.
5.2. Existence and classification of specific units
1. Non-profit institutions (NPI)
In the general government sector we include public non-profit institution (public service
providers and public corporations which are according to the 50% rule classified as
non-market). Public NPIs are those units which are controlled (owned) by the general
government sector. Private NPIs have different accounting statements and reports.
2. Quasi-corporations
Not relevant.
3. Infrastructure companies
SŽ Passenger transport d.o.o. and SŽ Infrastructure d.o.o. were with a reorganisation from one
unit into four units in 2011 included in the general government sector as non-market producers.
Sales are relevant only for a passenger transport (approximately 50% of total output by the cost
approach), while sales of the infrastructure maintenance unit are marginal (10% of total output
by the cost approach). Slovenian Railway (SŽ) Holding and SŽ Freight transport are included in
the sector of non-financial corporations.
In accounting statements for corporations all subsidies receivable from general government are
shown separately and can be clearly identified. Public utility companies (ports, airports, roads,
etc.) are included in the sector of non-financial corporations as clearly market producers.
4. Universities, schools
Universities and secondary schools are classified within the central government and primary
schools are within the local government.
5. Public TV and radio
Radio Television of Slovenia is included in the central government subsector and subscription
fees are treated as tax.
66
Sector delimitation – practical aspects - Sector classification of units
6. Public hospital
All public hospitals are included in the central government. Market sales are constantly
approximately 11-12% of total output by the cost approach and the annual market/non-market
test is not relevant.
7. SPE
Not relevant.
8. Specific public corporations involved in financial activities
Two specific units involved in financial activities are included in the general government
sector: Slovenian Restitution Fund (S.1311) and Capital Fund of Slovenia (S.1314); functions
of these two units are explained above. Also privatisation agencies were always included in the
general government sector: “Slovenska razvojna družba” / “Družba Slovenije za upravljanje” /
“Posebna družba za podjetniško svetovanje” (remains of the DSU – 2010). Public financial
company Slovenian Export Bank is included in the sector of financial corporations. Also
“Družba za upravljanje terjatev bank” - BAMC (defeasance structures) set up in 2013 is
included in the central government.
9. Other specific units
Not relevant.
67
Time of recording
6. Time of recording
This section describes the time of recording for taxes and social contributions, EU flows,
military expenditure, interest and other transactions (subsidies, current and capital transfers
and financial transactions.
The time of recording is defined in ESA2010 §1.101. It is the accrual basis, meaning when
economic value is created, transformed or extinguished, or when claims and obligations arise,
are transformed or are cancelled.
6.1. Taxes and social contributions
Council Regulation 2516/2000 amended the Regulation on European system of national and
regional accounts in the Community (ESA) 95 as concerns taxes and social contributions and
clarified the rules concerning both the time of recording and the amounts to be recorded.
6.1.1
Taxes
This section describes the methods of recording of taxes on an accrual basis. The time of
recording of taxes is defined in ESA2010 §4.26 and §4.82 as the time "…when the activities,
transactions or other events occur which create the liabilities to pay taxes".
The main data source for recording taxes and social contributions is monthly budget data on
the central budget, the Pension Fund, the Health Fund and the local government budgets. Data
set is provided by the Ministry of Finance and is on cash basis. These data are complemented
by customs declarations containing monthly data on import duties and VAT from imports as
well as monthly data on excise duties. These data are on accrual basis and are provided by the
Customs Administration. For estimation of personal (households) income tax and profit tax of
companies some additional information is provided by the Financial Administration (before
2014 by the Tax Administration Office) regarding final settlement. The same data source is
used for both, the first and the second EDP notification.
The method “assessed amounts recorded entirely as revenue, the amounts of taxes unlikely to
be collected is recorded as capital transfer” is used only for excise duties, and import duties
and taxes. Coefficients for the estimation of taxes accrued but unlikely to be collected for
these taxes are negligible and are based on unpaid and written off amounts in the previous
periods (before five years and more).
The method “time adjusted cash amounts which are attributed to the period when the activity
takes place” is used for VAT, profit tax of companies, personal income tax and compensation
for the use of the building ground. For VAT the first method was used until 2008. Time
adjusted method for VAT is T + 30 days and relevant data are available from the Financial
Administration (before by the Tax Administration Office). For profit tax of companies’ cash
data in year t are adjusted in two steps: final payment for year t-1 (all annual additional
payments less refunds of prepaid tax) is deducted and final payment for year t is added. All
data are available in t + 100 days and are already used for the first EDP notification. For
personal income tax the time lag is one month and the final figure for year t is estimated in
two steps: all annual payments for year t -1 are deducted and all final annual payments for
year t are added. Final figures for year t are available in t + 13 months. For the calculation of
68
Time of recording
compensation for the use of the building ground (D.29 other taxes on production, local
government level revenue) time adjustment of two months is used as the tax may be paid in
monthly instalments.
Information on taxes and social contributions are collected by different institutions (the
Ministry of Finance, the Financial Administration (before the Tax Administration Office and
the Customs Administration Office) and the Statistical Office uses these data for compilation
of taxes and social contributions for the purpose of EDP and related ESA questionnaires.
Reimbursements and refunds are recorded on a cash basis as well as interest on late payments.
Interest for late payments are shown separately and are recorded under interest revenue.
As already mentioned the main source for recording taxes and social contributions are
monthly budget data (WB). The calculation of VAT requires 30 days’ time lag so final data
are available within t + 3 months. Data on excise duties are provided 45 days after the end of
the period. Data on customs duties and VAT on imports are provided within t + 50 days and
final data are in t + 7 months. Final data on personal income tax are provided in t + 13
months.
In compilation taxes and social security contributions with ESA2010 altogether 4 new taxes
were estimated from inclusive 2010 on:
1. Part of trade margin of Public unit for management of government stocks is by law
compulsory payments for providing public services. This part is in national accounts
treated as D.21 Taxes on products.
2. With Law on management of public finance due to deficit crisis new taxation of
student work was introduced in the mid of 2012. With this revenue of Fund for human
resource development in public sector and scholarships became in the mid of 2012
revenue of the central budget. Due to consistency two additional D.29 taxes were
included in government accounts from inclusive 2010 on: for the whole period from
inclusive 2010 Student organisation of Slovenia (S.15 NPISHs) is financed with part
of gross payment for student work and this part is not included in the central budget.
The same was with revenue of Fund for development of human resources and
scholarships in public sector in the period 2010-2012.
3. Two NPISHs units, Foundation for financing disability and humanitarian
organisations in the RS (FIHO) and Foundation for sport (FŠO) are under government
control and were therefore from inclusive 2010 on reclassified into the general
government sector. These two units are directly financed by Lottery of Slovenia and
these payments are now rerouted as D.29 of game of chance (NACE Rev1 code
92.002 Game of chance, without gambling industry).
6.1.2
Social contributions
The time of recording of social contributions is defined in ESA2010 §4.94 as "… the time
when the work that gives rise to the liability to pay the contribution is carried out…" for
employers and employees social contributions, and as "… when the liabilities to pay are
created" for self-employed and non-employed persons.
The sources used for calculating social contributions are the central budget, the Pension
budget and the Health budget provided on monthly bases by the Ministry of Finance. Data for
social contributions paid by employer and employee are time adjusted by one month while
69
Time of recording
social contributions of self-employed and non-employed are recorded on cash basis. To time
adjusted figure social security contributions unlikely to be collected are added and recorded as
a capital transfer (until inclusive 2012). From 2013 onwards, social security contributions
unlikely to be collected are no longer added to time adjusted figure.
The Ministry of Finance collects the information and the Statistical Office compiles the data
for EDP tables and related questionnaires.
Interests on late payments are recorded under interest revenue.
As data on social contributions are cash based the final information is available one month
after the end of the period. In order to calculate one month time lag final data are available in
T + 3 month.
6.2. EU flows
The issue of recording EU flows is important for national accounts, especially government
accounts, because – due to the institutional arrangements – in general all amounts transit via
government accounts. In order to avoid potential effects on the level of government deficits,
countries have to eliminate these flows from public accounts. Eurostat, after the consultation
with Member States, released a decision in February 2005. The ESA2010 Manual on
government deficit and debt Chapter II. 6 “Grants from the EU budget” provide further details
concerning the recording of these flows.
Revision of EU flows recording and the neutralisation of EU funds on B.9 in the periods
2004-2014 is explained in Chapter 3.2.3.4.2.
6.2.1
General questions
All flows receivable from EU are first recorded in a special bank account (there are two
accounts: central budget account and account of the Regional Fund for Development). In the
central budget EU flows as revenue are recorded when complete relevant documentation is
available for each project. In the central budget all transactions related to EU flows can be
identified in detail: EU flows receivable by type and by final beneficiary, EU payments to EU
(traditional own resources, VAT payments and GNI contribution). With revision explained in
chapter 3.2.3.4.2. effect of EU flows on B.9 of general government is neutralised for the
period from 2004 on. In EDP table 3 the adjustment is in F.8 to offset changes in F.2 due to
effect of receivables from EU less payables from the bank account to central budget and
advances (+, -) due to neutralisation revenue and expenditure of EU funds differences in time.
With revision of all annual and quarterly data in 2013 covering the period from 2004 on, all
EU flows via the central budget and via the local budgets to final beneficiary units of other
institutional sectors (non-government units) were excluded from general government accounts
(Tables 02, 11 and 25). These adjustments have no effect on B.9 and more detail is given in
subchapter 3.2.3.4.2 and 4.1.1 above.
70
Time of recording
6.2.2
Cash and Schengen facility:
The time of recording of payments received by the beneficiary Member States through
Schengen and Transitional Facilities would be accounted according to the Eurostat decision
on EU flows, while the time of recording of Cash-flow Facility is when the transfers are to be
made by the Commission. In practice, in this particular case, the amounts would be recorded
as revenue in the years in which they were received by the beneficiary countries.
As mentioned above, EU flows receivable are first recorded on a special bank account and are
in the central budget included in a year when the amounts are used. Schengen facility were
received from EU in the 2005-2007 period in the total amount of EUR 116 mio, of which the
majority was used in 2007, EUR 91 mio. In national accounts the amounts are the same as in
the central budget.
6.2.3
Jeremie/Jessica
The European Commission and the European Investment Bank Group and other International
Financial Institutions on financial engineering in cohesion policy, the European Commission
drew up new initiatives for improving access to finance of European corporations. These
initiatives require the involvement of EU governments (as in the case for other cohesion and
structural policy instruments). EU Member States implement the JEREMIE and JESSICA
initiatives by establishing a Holding Fund funded through their Structural Fund receipts from
the European Commission and national contributions. The Holding Fund (HF) can be
managed either by the EIF or by other financial institutions, according to the EU Structural
Funds legislation applicable In this context, the "Managing Authorities" can award
management either directly to the EIF or any national institution which benefits from public
procurement exemption under national law through a grant agreement, or indirectly by way of
tender to a financial institution through a service contract. Holding Funds can be set up either
as “ring-fenced blocks of finance” or as bank accounts managed by the Holding Fund
manager on behalf of and in the name of the Managing Authority, or as an independent legal
entity (Special Purpose Vehicle – SPV).
Jeremie/Jessica is not relevant in Slovenia.
6.2.4
Market Regulatory Agencies
Market regulatory agencies are bodies whose intervention activities are mostly characterised
by buying and selling products, often on behalf of the EU, with an aim to stabilize prices and
to maintain purchasing prices to farmers at a sufficiently high level: they offer buying
agricultural products from domestic producers at a predetermined price (often higher than
"market" prices) and reselling them usually at a lower price later on and occasionally
arranging for giving them away free of charge. These agencies can be involved in storing
agricultural inventories, or in arranging for storage, as well as in distributing subsidies.
The question is whether the principle of re-arranging EU transactions would also apply to the
recording of changes in inventories (P.52) arising from the interventions of agricultural
market regulatory agencies in the market. According to the guidance, in those circumstances
where a market regulatory agency acting on behalf of the EU is classified inside general
71
Time of recording
government, the creation of a unit in S.11 is recommended in order to capture the changes in
agricultural inventories, and to avoid that such changes in inventories are recorded in national
government accounts (as changes in government inventories, with an impact on the
government deficit/surplus) or in the rest of the world accounts (as exports and imports). The
unit to be created to capture these changes in inventories is a quasi-corporation, rather than a
notional unit, in order to ensure an equality of treatment with cases where market regulatory
agencies are classified outside government. This is also appropriate because any temporary
difference in value arising from changes in market value of these inventories not yet covered
by subsidies is likely to be small and on average zero.
The only market regulatory agency in Slovenia is “Zavod RS za blagovne rezerve” (The
Agency of the Republic of Slovenia for Commodity Reserves). It is classified as market
public corporation owned by government and its annual accounting statements are in
standards for corporations. The calculation of changes in inventories is the same as for all
corporations: within GDP calculation it is prepared for four types of inventories: finished
good, work-in-progress, materials and supplies, and tradable goods. The unit shows
substantial profits after the tax, particularly in the 2010-2012 periods.
72
Military expenditure
6.3. Military expenditure
.
With ESA 2010 revision all military expenditure (weapons) were excluded from intermediate
consumption and shown as gross fixed capital formation. This includes relevant calculation of
consumption of fixed capital by PIM with effect on GDP level for the period from inclusive
1995 on. Data were prepared by the Ministry of Defence as recorded in the Central Budget
(cash). In the last years due to financial crisis military expenditure are very small.
Intermediate consumption expenditure and GFCF (including weapons) cash data are from
2008 on adjusted with WGA to accrual figures.
6.3.1
Types of contracts
Part of military equipment was until inclusive 2011 (purchased by “Temeljni razvojni
programi” (Basic Development Programmes – TRP1, 2 and 3). According to this arrangement
WB of central government showed TRP loan repayment as current transaction (intermediate
consumption) and this was in EDP table 2A excluded as financial transaction and replaced
with figure on delivery of equipment in the period. Within TRP trade credits were used only
at the beginning (until 1996) and later all TRP purchases based on loans All relevant data
were available to SORS from the Ministry of Finance.
In the annual GFCF survey the Ministry of Defence, according to the agreement with SORS,
reports all purchases of military equipment as GFCF except weapons. With this data source
intermediate consumption in WB is annually adjusted and thus includes only weapons which
were with ESA2010 revision shown as GFCF.
6.3.2
Borderline cases
According to the GFCF survey significant part of military equipment was included in GFCF
as civil investment and deducted from intermediate consumptions in WB.
6.3.3
Recording in national accounts
See above.
6.4. Interest expenditure
Table x Availability and basis of data on interest
S.1311
S.1312
Instrument
State
OCGB Main unit OSGB
Deposits (AF.2) L
L
M
M
Securities other
than shares
(AF.3)
C
A
M
M
Loans (AF.4)
C
A
M
M
Other accounts
receivable
(AF.8)
L
L
M
M
Cash/accrual, M (not applicable) or L (not available)
S.1313
Main unit OLGB
L
L
S.1314
Main unit OSSB
L
L
M
C
M
A
M
C
M
A
L
L
L
L
73
Military expenditure
In basic data sources interest are on cash basis (WB – direct budgetary units) and on accrual
basis (other units and non-market public corporations). In the WB of central and local
government and of social security funds data on interest payable are split on different loans
and other instruments (domestic/abroad). Securities other than shares are relevant only for the
central budget and the SSH/SRF. The Ministry of Finance provides SORS annually with
cash/accrual adjustments by instruments. Amounts for accrual adjustments are not the same
in EDP table 2A and 3B. More detail is given in chapters 3.2.3.4.1 and 3.4.3.4.1.
6.4.2
Interest Revenue
The sources for interest revenue are the same and are partly cash and partly accrual. Accrual
adjustments are relevant for central and local budgets and are included in other accrual
adjustments and accounts receivable.
6.4.3
Consolidation
In consolidating gross Maastricht debt all holdings of debt instruments within general
government sector by other government units are indicated and consolidated first within
subsectors and at the end between subsectors. For consolidation of interest relevant interest
are annually estimated with average interest rates. Consolidation has no impact on B.9.
6.4.4
Recording of discounts and premiums on government securities
Only recording of discounts on government securities in the WB of central government
(central budget) is relevant here. In the source discounts are cash and are replaced with the
accrual interest, which are spread over the life of each instrument. These adjustments are
included in accrual adjustments for interest. Repayment of discount is identifiable from
repayments of debt.
6.5. Time of recording of other transactions
For units with cash accounting data (budgets at the central and at the local level, social
security funds and other direct budgetary units) different accrual adjustments are made and for
other units (public service providers, public corporations) accrual accounting data are
available.
For direct budgetary units at the central and at the local level and for social security funds
cash data on main expenditure components are time lagged for one or two months:
intermediate consumption, compensation of employees, social benefits in cash and in kind,
current transfers, intragovernment transfers, subsidies (only subsidies paid by own funds) and
gross fixed capital formation (final figure is according to the annual statistical survey). With
the use of WGA further reconciliation and adjustments of accounts payable and receivable to
accrual value is possible and the use of this source is still work-in-progress. For revenue
components cash/accrual adjustments cover main taxes and social security contributions,
interest, current transfers and sales (25% collection costs for EU own resources as export of
service is calculated accrual). Other rather small amounts of expenditure and revenue
components are in cash because time lagged adjustments would be negligible. According to
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Military expenditure
budgets rules and principles there are usually only small amounts of accounts payable after
the budgets are executed.
It is expected that in the future privatization will be much more intensive (from inclusive 2014
on). In the last years there were almost no transactions due to privatization.
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7. Specific government transactions
Methodological rules applicable for recording of specific government transactions are set up
in the Manual on Government Deficit and Debt (implementation of ESA2010), 2013
edition18.
7.1 Guarantees, debt assumptions
Generally, government guarantees are recorded off-balance sheet in government accounts
(contingent liability), and neither government debt nor deficit is impacted. However, when a
guarantee is activated (called), the payment made by government on behalf of the debtor is
normally recorded as government expenditure. In case of repeated guarantee calls, the whole
outstanding amount of the guaranteed debt should be assumed by government. The latter
leads to a one-off increase of government debt as well as of deficit. The accounting rules are
explained in the Chapter VII.4 on Government guarantees of the ESA2010 Manual on
government deficit and debt. This chapter describes also specific cases and related treatment
in national accounts.
Transactions of “debt assumptions” were as a capital transfer in other adjustments of EDP
table 2A relevant for the Slovenian Railways debt (2003, 2004), for the Health Social Security
Fund and the Pension Social Security Fund debt (2005) and INFRA debt (2010). “INFRA
d.o.o.” is public corporation owned by government and was set-up for construction of
electricity power plants on river Sava. All its loans are under government guarantee.
However, in the WB of the central budget all relevant debt costs (interest and repayments of
debt) are shown. In EDP table 2A all new borrowing of INFRA is shown as capital transfer
with relevant adjustments for financial transactions included in the WB. INFRA debt is thus
included in the consolidated general government debt.
7.1.1
Guarantees on borrowing
7.1.1.1 New guarantees provided
Recording in public accounts
Activated (called) guarantees and repayments of guarantees called are in public accounts
shown as financial transactions in balance B of the central budget (the same in local budgets).
Guarantees are given to public (market, non-market) and to private corporations by the
Ministry of Finance, which regularly publish all figures of so called and standard “Publicly
guaranteed debt”. The majority of public guaranteed debt at the central level is given to public
market corporations for new motorways construction (DARS) and to the “Slovenian Export
18
http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-GQ-13-006/EN/KS-GQ-13-006-EN.PDF
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Specific government transactions
Bank”. Part of this debt is guaranteed also to general government units and this debt is
included in general government consolidated gross debt.
Special schemes were introduced in financial crisis (guarantees to banks, to legal units and to
unincorporated persons). The Ministry of Finance regularly publishes data of publicly
standard and due to financial crisis guaranteed debt.
Recording in national accounts
All data of publicly guaranteed debt at the end of each year are to SORS available from the
Ministry of Finance at unit level. Data base include stocks, guarantees called, repayments of
guarantees called, provisions, relevant interest and new guarantees provided. Data base
includes all types of guarantees (regularly and due to financial crisis) at unit level.
In national accounts and EDP tables data from balance B are included in other adjustments of
EDP tables 2 at the central and at the local level. Interest is shown within accrual adjustments
for interest. According to data in Balance B, other adjustments for guarantees called are in
national accounts (EDP table 2A and 2C) shown net, guarantees called minus repayments
without interest. Provisions are included in the WB. Guarantees called due to financial crisis
always include all guaranteed debt (in one call) and these calls started in 2009. In the last
years calls for standard guarantees are negligible at the central and at the local level. In last
years (2011 and 2012) only guarantees called due to financial crisis are relevant (2012 EUR
22 mio). Guarantees called are booked as capital transfer expenditure. Repayments by debtors
are booked as capital transfer revenue. Guarantees being systematically called three years in a
row lead to a debt assumption in national accounts: the whole outstanding amount of debt
guaranteed though not yet called at the end of third year is booked as a capital transfer, for the
total amount.
7.1.1.2 Treatment of guarantees called
Recording in public accounts
Activated (called) guarantees are in public accounts shown as financial transactions in balance
B of the central budget (the same in local budgets). Provisions are included in the WB and in
ESA government account shown as other commercial revenue (P.131).
Recording in national accounts
Guarantees called are booked as capital transfer expenditure. Guarantees being systematically
called three years in a row lead to a debt assumption in national accounts: the whole
outstanding amount of debt guaranteed though not yet called at the end of third year is booked
as a capital transfer, for the total amount.
7.1.1.3 Treatment of repayments related to guarantees called
Recording in public accounts
Repayments of guarantees called are in public accounts shown as financial transactions in
balance B of the central budget (the same in local budgets). Provisions are included in the
WB.
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Specific government transactions
Recording in national accounts
Repayments by debtors are booked as capital transfer revenue.
7.1.1.4 Treatment of write-offs by government in public accounts of government assets that
arose from calls, if any
Not applicable.
7.1.1.5 Data sources
As explained above data base at central level include all relevant individual data by units for
all different schemes of government guarantees. For local level data of balance B (guarantees
called and repayments of guarantees) are available.
7.1.2
Guarantees on assets
Guarantees on assets, student loans, housing loans, etc. are not relevant.
7.2 Claims, debt cancellations and debt write-offs
Providing loan capital is generally a financial transaction not impacting the net borrowing/net
lending (B.9). Government, as a lender, is expecting that the debtor will be in a position to
repay the loans, according to a schedule agreed at inception. However, if the loan is nonrecoverable, the recording of government expenditure might be considered. The related
accounting rules are set up in ESA2010 and further clarified in the Chapter III.2 on Capital
injections and Chapter VII.2 on Debt assumption and cancellation of the ESA2010 Manual on
government deficit and debt.
7.2.1
New lending
Loans granted by government units are according to financial accounts data base (quarterly
survey for financial accounts) typical for some extra budgetary funds with certain surpluses
(Slovenian ECO Fund, Slovenian Dwellings Fund, Slovenian Regional and Rural
Development Fund, etc.) and by Enotni zakladni račun (Single Treasure Account) at the
central level while at the local level lending is negligible. Total lending at the central level
include loans to Greece, to other government subsectors (from central level to local
government level) and to non-government sectors (currently stocks are less than 1% of GDP,
of which 72% to S.11 and 22% to S.14). In the data base of the Bank of Slovenia for
preparing quarterly financial accounts, data on transactions and on stocks are available by
general government subsectors and by receiving subsectors, including intra-government
lending. By some other central government units small amounts of loans are only granted to
households. So far there are no evidence that loans were not paid or written-off.
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Specific government transactions
7.2.2
Debt cancellations
Debt cancellations were not relevant.
7.2.3
Repayments of claims
In the last period relevant adjustments were necessary in EDP table 2A for recognitions of
claims by central government due to court or internal government decisions. In 2010 and 2011
government recognized claims of Slovenian Railways (in 2011 EUR 119 mio claims by SŽ
Cargo Transport d.o.o. – S.11) and in 2011 also claims of the SSH/SRF (EUR 335 mio,
consolidated within S.1311) for payments not included in the law (Telecom payments, etc.).
Usually these claims are not paid at once but in longer period and if these transactions are
included in the WB current account then adjustments for financial transactions are necessary.
7.2.4
Debt write-offs
Debt write-offs were not relevant.
.
7.2.5
Sale of claims
Sales of claims are not relevant.
7.3 Capital injections in public corporations
Government capital injections are transactions which occur when governments provide assets
(in cash or in kind) to public corporations (or assume liabilities), in their capacity of owner /
shareholder, with an aim to capitalize or recapitalize them. The accounting rules are set out in
ESA2010 paragraphs 20.197-20.203 and clarified in the Chapter III.2 on Capital injections of
the ESA2010 Manual on government deficit and debt. These chapters devotes considerable
space to set the operational rules for the recording of capital injections in national accounts
either as transactions in equity (financial transaction = financing = “below-the-line”), or as
capital transfers (non-financial transaction = expenditure = “above-the-line”).
It is recalled that the MGDD also indicates that payments by government to public units,
structured in the legal form of a loan or a bond, might be considered in specific circumstances
as capital injections, and to be classified in certain cases as a non-financial transaction
(predominantly capital transfer D.9); cf. MGDD III.2.3.2.2.
Capital (equity) injections are in the WB booked in balance B account 441 and only cash
injections are relevant. Individual unit level data on capital injections are available on request
from the Ministry of Finance and are in SORS checked with the accounting data. For
companies with current losses equity injections are in national accounts treated as capital
transfer.
At the central government level capital injection test is applied for all amounts. Beside capital
injections as capital transfers in banks due to financial crisis in 2013 and 2014 capital transfers
into loss making public corporations were significant only in 2011.
At the local government level amounts of equity injections are very small (less than EUR 1 mio
at local unit level) and are therefore not tested. Exceptions were some amounts above EUR 1
mio in 2011 and in 2012. However, after the test these cases were equity injections also in
national accounts.
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Specific government transactions
Capital (equity) injections are also relevant for public government units involved and
responsible for privatization process (“Slovenska razvojna družba”, DSU and PDP, see chapter
5.2 above) and capital injections as capital transfers in loss making companies were in the past
particularly in “Slovenska razvojna družba” significant.
Capital (equity) injections are given also by SOD and KAD. Unit level data are obtained
directly from these extra-budgetary funds. For SOD capital injections as capital transfer in loss
making public companies were identified in period 2007-2009 and for KAD in 2007-2010.
7.4 Dividends
The accounting rules are set out in ESA2010 paragraphs 20.205-20.207. It is recalled, that the
ESA2010 Manual on Government Deficit and Debt chapter III.5 indicates that large and
exceptional payments out of reserves which significantly reduce the own funds of the
corporation should be treated as super dividends, i.e. transaction in shares and other equity (a
capital withdrawal). It also sets out that the resource available for distribution by a unit (a
corporation) is the distributable income of the unit, as defined in the ESA2010, paragraph 4.55.
Total distributions could therefore comprise one part recorded as distributed income of
corporations, D.42, and another recorded as transactions in equity, F.5. The former data is
reported to Eurostat in ESA2010 table 2 and table 8 within “other property income” category,
and the latter is included within transactions in equity in financial accounts. Within the latter,
for the benefit of analysis, one should also distinguish between amounts received
from the National Central Bank, and amounts received from other public corporations.
Data on revenue from dividends and withdrawals from profits of corporations are available
separately in central and in local budgets balance A Current revenue and expenditure account
7100. For the super dividend test unit level data on withdrawals of profits are available from
the Ministry of Finance for central budget. Super dividend is estimated as the difference
between total withdrawals and profit after tax in the previous year. Super dividends were
estimated in several cases, in 2010 it was estimated at eur 16 mio and in 2011 at eur 21 mio.
At the local level the super dividend test is not performed because amounts are small.
7.5 Privatization
The accounting rules are set out in ESA2010 paragraphs 20.210-20.213. The proceeds collected
by government when disposing of shares in public corporations are often called privatization
proceeds. The counterpart entity (i.e. the acquirer of shares) is the private sector. Privatization
can be indirect when the proceeds are forwarded to government after the sale of a subsidiary.
The MGDD chapter V.2 indicates that such indirect privatization proceeds are not government
revenue. MGDD chapters V.3 and chapters V.4, respectively, provide the guidance on the
treatment of privatisation proceeds from public corporations and restitution and use of vouchers
for privatisation.
Specifically, chapter V.3.1 of the ESA2010 Manual on government deficit and debt mentions
that in some EU Member States, holding companies have been set- up by the government to
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Specific government transactions
restructure the public sector with the aim of making the enterprises more competitive and
profitable and, in the long run, disengaging the government. Often their main activity is to
organise the privatisation efficiently and transfer the proceeds of the sale of shares to other
public corporations (owned by the holding company or not), through grants, loans or capital
injections.
The main issue is: what is the relevant sector classification of this sort of unit managing
privatisation and possibly making grants to other enterprises? Should this activity been
considered as taking place on behalf of the government?
Privatization proceeds are included in the central budget as financial transaction (Balance B)
and have no effect on deficit/surplus in the working balance. In the last years these proceeds
were rather small (in the central budget around EUR 2 mio per year (2010-2012) and EUR 5.2
mio in 2009. In year 2009 new unit was created due to the reorganization of the DSU (remains
of Slovenska razvojna družba, d.o.o. which was from the beginning of privatization process
responsible for privatization process in Slovenia). New unit “Posebna družba za podjetniško
svetovanje, d.d.” (PDP) was created by the Capital Fund, by the SSH/SRF and by the DSU as
owners and with transferring part of their property to this unit. The initial value of equity and
shares of PDP in 2009 at the amount of EUR 67 mio was reduced in 2010-2012 to EUR 13 mio
due to weakening (of this EUR 60 mio is shown in 2010-2012 unit’s current accounts). With
reclassification in 2013, unit is included in the central government from inclusive 2010 on.
Capital injections in loss making companies by the PDP (in 2010 EUR 3.2 mio and in 2011
EUR 0.5 mio) are as capital transfer included in other adjustments in table 2A. Without capital
transfers deficit of the PDP was in 2010-2012 between EUR 0.3 and 0.8 mio.
Privatization proceeds at the local government level are negligible, less than EUR 1 mio and
are shown in balance B of local budgets.
The SSH is responsible for managing and disposal of all assets of the RS in the name of the RS
and for the account of the RS. The SRF was transformed into the SSH. The management of
assets held in direct and indirect ownership of the RS became one of the main activities of the
SSH. This activity includes the disposal or use of capital assets and the implementation of
shareholder's rights. Management of all state assets is separated from other functions of the
Government.
7.6 Public Private Partnerships
The term “Public-Private Partnerships” (PPPs) is widely used for many different types of longterm contracts between government and corporations for the provision of public infrastructure.
In these partnerships, government agrees to buy services from a non-government unit over a
long period of time, resulting from the use of specific “dedicated assets”, such that the nongovernment unit builds a specifically designed asset to supply the service. The accounting rules
are set out in ESA2010 paragraphs 20.276-20.282 and clarified in the Chapter VI.4 of the
ESA2010 Manual on government deficit and debt.
The key statistical issue is the classification of the assets involved in the PPP contract – either
as government assets (thereby immediately influencing government deficit and debt) or as the
partner’s assets (spreading the impact on government deficit over the duration of the contract).
This is an issue similar to the one of distinguishing between operating leases and finance leases,
which is explained in Chapter 15 of ESA2010.
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Specific government transactions
As a result of the methodological approach followed, in national accounts the assets involved in
a PPP can be considered as non-government assets only if there is strong evidence that the
partner is bearing most of the risk attached to the asset of the specific partnership. In this
context, it was agreed among European statistical experts that, for the interpretation of risk
assessment, guidance should focus on three main categories of risk: “construction risk”
(covering events like late delivery, respect of specifications and additional costs), “availability
risk” (covering volume and quality of output) and “demand risk” (covering variability of
demand).
PPP assets are classified in the partner's balance sheet if both of the following conditions are
met: the partner bears the construction risks and the partner bears at least one of either
availability or demand risk, as designed in the contract.
If the conditions are not met, or if government assumes the risks through another mechanism,
(e.g. guarantees, government financing) then the assets are to be recorded in the government's
balance sheet. The treatment is in this case similar to the treatment of a financial lease in
national accounts requiring the recording of government capital expenditure and borrowing. In
borderline cases it is appropriate to consider other criteria, notably what happens to the asset at
the end of the PPP contract.
In Slovenia the PPP Act entered into force in March 2007 (Official Journal No. 127/2006) and
the term PPP incorporates various types of cooperation between public and private sector not
just PPP defined in MGDD. The Slovenian term is “Javno zasebno partnerstvo”, otherwise
English terminology is used.
Within the Ministry of Finance a special department for monitoring and controlling PPP was
established. In its last report, prepared for year 2009 (published in 2011), the Ministry of
Finance reported on analysis conducted on all forms of PPP, which comprised granted
concessions, licenses and public permits together with legal foundation on which they were
made (i.e. more than 8000 PPP). It found out that there were no significant changes in
comparison with previous years. The governments on local and central levels the most often
grant concessions to perform services. Complex forms of PPP that would include construction
of infrastructure facilities such as works concessions where private partners take majority of
risks do not exist at the moment. But it should be mentioned that since penalty provisions have
not been included in the law the Ministry faced with problems of reporting. It also found out
that despite the relevant legislation PPP projects have not been always prepared in accordance
with legislation and contracts are still concluded without tender.
In the EDP supplementary table two cases of PPP are reported and both were found out from
the media. In reported cases the assets are recorded on general government balance sheet and
the data are included in budgetary statistics on the cash basis. We include them in reporting
because we have to monitor them to make accrual adjustments when necessary as part of
regular GFCF corrections.
7.7 Financial derivatives
This part describes the use of financial derivatives and the recording of derivative related flows
in EDP tables and national accounts.
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Specific government transactions
Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013
on the European system of national and regional accounts in the European Union does not
distinguish between the ESA and EDP definition of interest. The Regulation No 549/2013
paragraph 4.47 reads: Payment resulting from any kind of swap arrangement is recorded as a
transaction in financial derivatives in the financial account, and not as interest recorded as
property income. Transactions under forward rate agreements are recorded as transactions in
financial derivatives in the financial account, and not recorded as property income.
ESA2010 paragraph 20.133 specifies the treatment of so called of market swaps: “Lump sums
exchanged at inception on off-market swaps are classified as loans (AF.4) when the lump sum
is received by government. Off-market swaps are partitioned in the balance sheet into a loan
component and a regular, 'at-the-money' swap component.”
7.7.1
Types of derivatives used
The first borrowing in swap arrangement was in October 2012. The central budget borrowed on
the USA market in USD bond. In the working group all relevant transactions included in the
WB and relevant accruals were discussed. In the WB three transactions were included: in
advance payments of interest (issuance below nominal value), USD depreciation effect and fees
paid.
In EDP table 2A adjustments were: accrual interest, cash advance payments were replaced with
accrual figure and deduction for USD depreciation effect. In EDP table 3B transactions were:
B.9, increase of F.2 and partly of F.3 (securities), difference between interest accrued and paid
from EDP table 2A and the increase of debt at zero statistical discrepancy.
7.7.2
Data sources
See above.
7.7.3
Recording
See above.
7.8 Payments for the use of roads
The main issue is whether payments for road, both in the case of tolls and vignettes, should be
considered as sale of services or as a tax, when the infrastructures are owned by public units.
The issue is important also because the classification of payments made for the usage of roads,
either as sales or taxes, influences the assessment of the 50% criterion, which is fundamental
for the purpose of assessing whether a given institutional unit (in some cases, a governmentcontrolled entity receiving the payment of the toll or vignette) is a market or a non-market
producer.
Payments for the use of roads will generally be classified as a sale of a service in the case of
tolls. They will also be classified as a sale of a service in the case of vignettes whenever users
have sufficient choice both in terms of selecting specific roads and of choosing a determined
length of time for the vignette.
Motorways are in Slovenia constructed and maintained by DARS (Company for Motorways in
the Republic of Slovenia, 100% owned by government, market S.11 non-financial corporation).
DARS also collects tolls. The system of vignettes was introduced in July 2007. At the
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beginning there were only one year and half a year vignettes (only for motorcycles); later on, in
2009, also one month and one week vignettes were introduced. In national accounts revenue
from vignettes are treated as market revenue.
7.9 Emission permits
There are two main trading systems, where European Union Member States can participate:
The Kyoto Protocol is a 1997 international treaty which came into force in 2005. In the treaty,
most developed nations agreed to legally binding targets for their emissions of the six major
greenhouse gases.[33] Emission quotas (known as "Assigned amounts", AAUs) were agreed
by each participating 'Annex 1' country,
The European Union Emission Trading Scheme (or EU ETS) is the largest multi-national,
greenhouse gas emissions trading scheme in the world. It is one of the EU's central policy
instruments to meet their cap set in the Kyoto Protocol. The so-called EU emission Allowance
(EUA) is traded.
The ESA2010 MGDD part VI, chapter VI.5 is dealing with the statistical recording of the
emission trading allowances.
Trading with emission permits via general government (central budget) was not relevant until
2012. In 2013 according to the latest information this trading started also by general
government and transactions are shown in the central budget balance A. According to law
payments are collected by SID Bank (“Slovenska izvozna družba, Bank”) and monthly
transferred to the central budget. 50% of the total payments are purposely used by the Fund of
Climate Changes. Revenue in trading with emission permits of the central budget can be in
national accounts shown as K2 transaction or as concession in other taxes on production.
We record emission trading permits in NA from 2013 onwards under D.29 F (Taxes on
pollution). The data source is part of revenues designated to Slovenia from the sales of
emission permits on the stock exchange in Leipzig. The revenues are transferred to central
budget on monthly basis.
7.10 Sale and leaseback operations
Government sells an asset and immediately leases it back from the purchaser. The issue is
whether the sale is to be considered as a "true sale" (transaction in GFCF improving B.9) or
the transaction is to be treated differently and an asset should remain on government's balance
sheet.
MGDD part VI, chapter VI.2 is dealing with sale and lease back operations
Sales and leaseback operations are not relevant.
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Specific government transactions
7.11 Securitisation
Securitisation is when a government unit transfers the ownership rights over financial or
nonfinancial assets, or the right to receive specific future cash flows, to a special-purpose
vehicle (SPV) which in exchange pays the government unit by way of financing itself by
issuing, on its own account, asset backed bonds.
The classification of the proceeds received by government as disposal of an asset may lead to
an impact on the government deficit, when the asset is a nonfinancial asset or if it is
determined that a revenue should accrue. All securitisation of fiscal claims should be treated
as borrowing, as well as all securitisation with a deferred purchase price clause and all
securitisation with a clause in the contract referring to the possibility of substitution of assets.
Also if the government compensates the SPV ex-post, although this was not required
according to the contract, the operation should be reclassified as government borrowing.
MGDD part V, chapter V.5 and the Eurostat decision of 25 June 2007, "Securitisation
operations undertaken by general government" are dealing with securitisation operations.
Securitisation is not relevant.
7.12 UMTS licenses
The sale of UMTS licenses is to be recorded as the sale of a non-financial asset (the license)
at the time the license is allocated. Thus, sale proceeds have a positive effect on B.9 in the
year when the license is allocated. The actual payment of cash payment does not influence the
recording of this transaction.
In some special cases, the sale of UMTS could be seen as a rent for the use of a non-financial
asset, recorded over the life time of the license. In this case, the impact on government B.9 is
spread over the duration of the license.
MGDD part V, chapter V.2 and Eurostat decision of 14 July 2000 on the allocation of mobile
phone licences (UMTS) are dealing with the sale of UMTS licenses.
UMTS licenses were sold in 2001 at the amount of EUR 124 mio, in 2002 (EUR 2 mio) and
in 2006 (EUR 13 mio). These transactions were in national accounts shown as sales of nonproduced non-financial assets (K2).
In 2014 central budget sold radio frequencies for providing mobile communication services in
the amount eur 149 mio eur, of which eur 57 mio will be applicable in 2016 I. quarter
(advances, financial transaction included in WB 2014).
7.13 Transactions with the Central Bank
The management of asset portfolios and interventions in foreign exchange markets for
monetary policy purpose may generate capital gains for central banks which are liable to be
distributed to general government. The amounts involved may sometimes be very large.
Capital gains are not income in national accounts and therefore payments to government
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Specific government transactions
financed out of capital gains cannot be recorded as property income but have to be recorded
as financial transactions.
It also proposes to apply the rules on capital injections when government makes a payment to
the Central Bank. Such payments by government may be made to cover losses made by the
Central Bank. Capital losses may occur due to foreign exchange holding losses. Operational
losses may occur due to the fact that interest and other operational income do not cover
operational costs made by the central bank. Capital losses cannot be recorded as equity
injection, therefore capital gains and losses are somehow not treated symmetrically. This
asymmetrical treatment is nevertheless justified for the purpose of appropriately measuring
government deficit.
As stipulated by law, 25% of annual surplus of the Bank of Slovenia (central bank) is
transferred to the central budget as property income (EUR 26 mio in 2010, EUR 10 mio in
2011, EUR 15 mio in 2012). According to law the capital gains should not be included in this
surplus and must be recorded in a special reserve fund.
7.14 Lump sum pension payments
ESA2010 paragraphs 20.273-20.275 define the accounting rules for recording of the lump
sum pension payments. The related accounting rules are further described in the ESA2010
MGDD and debt Part III.6 Impact on government accounts of transfer of pension obligations.
Lump sum pension payments are not relevant.
7.15 Pension schemes
National pension system includes old age pensions, disability pensions, survivors’ and
widows pensions, anticipated old age pensions, partial pensions and early retirement pensions.
The main pension and disability insurance in Slovenia is social security scheme managed by
the Pension Social Security Fund. The scheme is imposed, controlled and financed by
government units. Participation in the scheme is compulsory for all employees in the country
(employed, self-employed and other persons with earnings on regular basis). All other persons
can join insurance on a voluntarily basis. The benefits include pensions and also other
benefits. The scheme is established by the law. The scheme is financed from social security
contributions (rates are 15.5% for employees and 8.85% for employers). The difference
between expenditure and income from social contribution is paid from the central budget. The
amount of pension depends on age, gender and working period. Expenditure for pension in
2014 represents 12% of GDP.
From 2000 on several pension schemes by insurance companies or autonomous pension funds
were introduced. In general all these schemes are supplementary and taken voluntarily on the
private initiative. Government provides the licenses to carry out the pension schemes and
encourage citizens to join such insurance (premiums are tax relief). Other pension schemes
are carried out by insurance corporations and pension funds.
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