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### Executive Summary — mission purpose and context
- Mission: technical assistance mission from the IMF’s Statistics Department visited the Bank of Jamaica (BOJ), Kingston, Jamaica during November 28–December 9, 2016.
- Purpose: follow up on the flow of funds (FOF) statistics mission of August 2015; FOF project covers both transactions and balance sheet data.
- Funding: Caribbean Regional Technical Assistance Centre (CARTAC).
- FOF role: provides a framework to integrate financial and nonfinancial aspects of the economy; integral part of the System of National Accounts 2008.

### Executive Summary — mission findings: progress and data coverage
- Considerable progress had been made on many items in the August 2015 mission’s action plan.
- BOJ outputs and data:
  - BOJ has prepared quarterly sector financial balance sheets for almost all of the financial sector.
  - Most of these data are available on a from-whom-to-whom basis.
  - BOJ prepares positions data for the rest of the world (from the international investment position (IIP)).
  - BOJ obtains balance sheet data for several larger nonfinancial corporations (both public and private).
  - All these data have been compiled from March 2013 to March 2015.
- Data supplier situation:
  - Monetary statistics prepared by BOJ; individual bank reports used in FOF construction.
  - 1SR and 2SR are not currently compiled in sufficient detail to meet FOF needs.
  - FSC provides data for other financial corporations, but no standardized report form presently; pension funds data are less comprehensive.
  - MOFPS prepares government finance statistics largely for transactions, not positions; progress on developing financial balance sheet for general government but several areas still missing.
  - Private nonfinancial corporations and households data remain under development; most available information drawn from counterpart datasets.
- Inter-agency cooperation:
  - Most data shortcomings are from agencies outside BOJ (MOFPS, FSC, Tax Administration Jamaica (TAJ), Statistical Institute of Jamaica (STATIN)).
  - All these agencies are cooperative and supportive; STATIN is seriously resource-constrained.
- BOJ completed all four benchmark actions from August 2015 mission report:
  1. Establishment of an inter-agency working party to coordinate data supply and ensure consistency.
  2. Establishment of a team for the FOF (staff not solely dedicated to FOF).
  3. Preparation of preliminary financial balance sheets for the financial sector and general government, on a from-whom-to-whom basis.
  4. Use of data from the FSC to complete the FOF instrument detail for regulated parts of the financial sector.
- FSC pension funds reporting: BOJ requested a new report form; FSC indicated it will finalize the form in early 2017.
- TAJ engagement: indicated willingness to add a schedule on selected balance sheet items to corporate tax forms; mission provided BOJ with a draft proposal requiring prompt action for a 2016 year-end deadline.

### Revised action plan and high-level benchmark actions (selected)
- Agreed updated action plan with revised target dates where prior progress lagged.
- Key revised benchmark actions (high priority):
  - BOJ establish a two-person team in BOJ solely dedicated to the development of FOF/sector balance sheet accounts.
  - BOJ continue to develop quarterly sector tables and FOF matrices of financial positions, by instrument and counterpart sector, from March 2013 onwards (through to end-2016), while improving reported data and exploring ways to fill data gaps.
  - BOJ explore with TAJ how to collect selected balance sheet data reported by nonfinancial corporations on a tax schedule, and sign a memorandum of understanding to allow BOJ staff access to individual tax records of nonfinancial corporations.
- Additional new benchmark actions:
  - Using the same matrix as for financial balances (instrument by sector and subsector), BOJ produce interim/preliminary sector tables and the FOF matrix from March 2013 through end 2016 (for internal use) of financial transactions, by sector and instrument, to show, as far as possible, from-whom-to-whom relationships, using counterpart data where necessary. The matrix will initially have empty cells that can be filled as other data sources are developed.
  - Development of a database for the FOF datasets to replace the current Excel-based approach.

### Detailed priority actions and target dates (selected items)
- Action Plan for All Agencies (BOJ, FSC, STATIN, TAJ)
  - TAJ be invited to join the inter-agency working group on the FOF project. Target date: January 2017.
  - BOJ begin an outreach program with potential users of the FOF data. Target date: June 2017.
  - BOJ ensure minutes of quarterly working group meetings assign responsibility for action items. Target date: March 2017.
  - BOJ ensure the working group decides on sector classification of the National Housing Trust. Target date: March 2017.
- Action Plan for BOJ (Stage I, selected high-priority actions)
  - BOJ establish a two-person team dedicated solely to the development of the FOF. Target date: December 2017. Benchmark action.
  - BOJ compile the 1SR and 2SR in sufficient detail for FOF purposes. Target date: March 2017.
  - BOJ obtain quarterly balance sheet data for the eight major public entities for which it does not currently receive quarterly data and map instrument detail and sector. Target date: June 2017.
  - BOJ continue to develop quarterly sector tables and FOF matrices of financial positions, by instrument and counterpart sector, from March 2013 through end-2016, and ongoing thereafter. Target date: June 2017 for data through end-2016 and ongoing thereafter. Benchmark action.
  - EIPD have ongoing consultation with data users (such as Financial Stability Department) to obtain input. Target date: January 2017 and ongoing thereafter.
  - BOJ explore possibility of a survey of nonfinancial corporations’ balance sheets with a view to having a survey in place in 2018, subject to availability of additional resources. Target date: December 2017.
  - BOJ explore with TAJ how to collect selected balance sheet data from nonfinancial corporations on a schedule as part of tax submissions. Target dates: December 2016 submission of request by BOJ; December 2017 for inclusion on tax schedule. Benchmark action.
  - BOJ submit a proposed MOU to TAJ to allow BOJ staff access to tax records of nonfinancial corporations; if not feasible: MOU for TAJ to supply aggregated data to avoid confidentiality issues. Target date: March 2017. Benchmark action.
  - BOJ develop a database for use in FOF to replace the current Excel-based system. Target date: December 2017. Benchmark action.
  - As direct data sources become available, BOJ compare with indirect sources to determine better sources. Target date: December 2018.
  - BOJ publish the data on the BOJ website once quality is satisfactory. Target date: December 2018.
- Action Plan for BOJ (Stage II — transactions)
  - Using the same matrix as for financial balances, BOJ produce interim/preliminary sector tables and the FOF matrix from March 2016 onwards (for internal use) of financial transactions. Target date: December 2017. Benchmark action.
  - Produce interim/preliminary sector tables and the FOF matrix from March 2013 to end-2015 (for internal use) of financial transactions. Target date: December 2018.
  - For the above, where only balance sheets are available, BOJ derive transactions by accounting for price, volume, and exchange rate changes so “other flows” are not treated as transactions. Target dates: December 2017 for the high priority item above and December 2018 for the medium priority.
  - BOJ publish the financial transactions data once quality is satisfactory. Target date: December 2018.
- Action Plan for BOJ (Stage III — sector accounts)
  - Using data from STATIN, BOJ prepare fully articulated accounts for the financial and general government sectors, subject to STATIN’s resources. Target date: June 2019.
  - Using data from STATIN, BOJ prepare fully articulated accounts for all sectors, subject to STATIN’s resources. Target date: June 2021.
  - BOJ publish the fully articulated accounts once quality is satisfactory. Target date: December 2021.
- Action Plan for FSC
  - FSC, in conjunction with BOJ, develop a new quarterly report form to capture instrument and counterpart detail for pension funds’ balance sheets. Target date: June 2017.
  - FSC, in conjunction with BOJ, develop a standardized report form for nonbank financial institutions to obtain quarterly balance sheet data. Target date: June 2018.
- Action Plan for MOFPS
  - MOFPS provide quarterly data of general government’s financial assets and liabilities positions, including accounts receivable and payable and estimates of future payments of pensions to GOJ current and former staff. Target date: December 2016 and ongoing thereafter.
  - MOFPS assist BOJ to obtain quarterly balance sheet data of the 16 largest public entities, using instrument detail by counterparty, to match the 2008 SNA instrument breakdown and provide data within two months of the end of the reference quarter. Target date: June 2017.
  - MOFPS provide BOJ with transactions data of general government’s financial assets and liabilities on a quarterly basis, using 2008 SNA instrument detail, from the first quarter of 2016 forward, and provide these data within two months of the end of the reference quarter. Target date: June 2017.
- Action Plan for STATIN
  - STATIN explore with BOJ means to obtain quarterly data on the largest nonfinancial corporations’ balance sheets. Target date: December 2017.
  - STATIN develop current and capital sector accounts for the financial and general government sectors, subject to resources. Target date: December 2018.
  - STATIN develop current and capital sector accounts for the nonfinancial corporations and household sectors, subject to resources. Target date: December 2020.
- Action Plan for TAJ
  - TAJ explore with BOJ how to collect selected balance sheet data reported by nonfinancial corporations on a schedule as part of tax submissions. Target dates: December 2016 submission of request by BOJ; December 2017 for inclusion on tax schedule.
  - Once the MOU between TAJ and BOJ to allow BOJ staff access to tax records of nonfinancial corporations is agreed, it be signed by the Governor and the Minister. Target date: March 2017. Benchmark action.

### Mission findings by counterparty agency (selected)
- BOJ
  - Completed the four benchmark actions from August 2015 mission report.
  - Most financial sector positions completed; nonfinancial corporations sector largely incomplete; household sector compiled from counterpart information.
  - Credit unions currently included with other financial institutions; BOJ may reclassify if liabilities are included in monetary aggregates.
- FSC
  - Collects data for most nonbank financial institutions; quarterly data submitted to BOJ on a timely basis.
  - Pension funds data need improvement; new pension funds report form to be finalized for 2017.
  - Some smaller brokers are not reporting; larger brokers/dealers account for approximately 90 percent of the industry’s assets.
- TAJ
  - MOU under discussion; proposal due to be submitted to TAJ in early 2017.
  - TAJ files not machine-readable; inclusion of FOF items in tax schedules requires BOJ request before end-December 2016 for 2017 inclusion.
- MOFPS
  - GOJ domestic debt securities data available at nominal value; MOFPS indicated market prices could be calculated and agreed to explore providing balance sheet information at market prices.
  - Accounts receivable/payable calculated monthly and to be provided to BOJ.
  - MOFPS can provide estimates of future pension payments; mission noted they need discounting to present value.
  - 8 of the 16 major public entities report quarterly; MOFPS to seek quarterly reporting from the remaining 8.
- STATIN
  - Severely resource-constrained; sector accounts development contingent on additional resources.
  - STATIN cannot conduct survey of largest nonfinancial corporations in the foreseeable future.

### Training, staffing, outreach, and IT resources
- Training and outreach:
  - Mission delivered two presentations on uses of FOF datasets for policy purposes; attendees included staff from all involved agencies.
  - Training sessions on compilation and conceptual issues provided to BOJ’s Economic Information and Publications Department (EIPD) staff; STATIN staff also attended.
  - Mission recommended involving Financial Stability Department on an ongoing basis.
- Staffing:
  - Currently two staff compile the datasets, with support from a supervisor; these staff have many other responsibilities (IIP, external financial flows, external debt data, reserves template) that take priority.
  - Mission strongly recommended increasing staff resources and establishing a group dedicated to the FOF project to accelerate progress.
  - Implementation note: Development of a new project requires more resources than an established production project given identical data needs.
- IT resources:
  - Mission strongly recommended development of a database for FOF datasets; Excel sufficient for early development but a proper database necessary once ongoing given dataset size.

### Annex — suggested selected balance sheet items of nonfinancial corporations for TAJ tax schedule
- Assets:
  - Equity investments in entities with:
    - residents
    - nonresidents
  - Loans to entities:
    - residents
    - nonresidents
  - Other accounts receivable residents
    - nonresidents
    - (o/w trade credit) residents
    - nonresidents
- Liabilities:
  - Loans from nonfinancial entities:
    - residents
  - Other loans from:
    - nonresidents
  - Other accounts payable residents
    - nonresidents
    - (o/w trade credit) residents
    - nonresidents
- Shareholders' funds:
  - Total shareholders' funds: residents
    - nonresidents
  - (o/w share capital (including share premium))
  - Retained earnings
  - Other shareholders' funds

*Report of an STA technical assistance mission to the Bank of Jamaica, November 28–December 9, 2016.*

### Executive Summary ......................................................................................................

### Executive Summary

### Mission purpose and context
- A technical assistance mission from the IMF’s Statistics Department visited the Bank of Jamaica (BOJ), Kingston, Jamaica during November 28–December 9, 2016.
- Purpose: follow up on the flow of funds (FOF) statistics mission of August 2015. The FOF project covers both transactions and balance sheet data.
- Funding: Caribbean Regional Technical Assistance Centre (CARTAC).
- FOF role: provides a framework to integrate the financial and nonfinancial aspects of the economy, drawing together financial transactions and positions, for analysis of interlinkages between sectors; integral part of the System of National Accounts 2008.

### Mission findings — progress and data coverage
- Considerable progress had been made on many items in the August 2015 mission’s action plan.
- BOJ outputs and data:
  - BOJ has prepared quarterly sector financial balance sheets for almost all of the financial sector.
  - Most of these data are available on a from-whom-to-whom basis.
  - BOJ prepares positions data for the rest of the world (from the international investment position (IIP)).
  - BOJ obtains balance sheet data for several larger nonfinancial corporations (both public and private).
  - All these data have been compiled from March 2013 to March 2015.
- Data supplier situation:
  - Monetary statistics prepared by BOJ; individual bank reports used in FOF construction.
  - 1SR and 2SR are not currently compiled in sufficient detail to meet FOF needs.
  - FSC provides data for other financial corporations, but no standardized report form presently; pension funds data are less comprehensive.
  - MOFPS prepares government finance statistics largely for transactions, not positions; progress on developing financial balance sheet for general government but several areas still missing.
  - Private nonfinancial corporations and households data remain under development; most available information drawn from counterpart datasets.
- Inter-agency cooperation:
  - Most data shortcomings are from agencies outside BOJ (MOFPS, FSC, Tax Administration Jamaica (TAJ), Statistical Institute of Jamaica (STATIN)).
  - All these agencies are cooperative and supportive; STATIN is seriously resource-constrained.
- BOJ completed all four benchmark actions from August 2015 mission report:
  1. Establishment of an inter-agency working party to coordinate data supply and ensure consistency.
  2. Establishment of a team for the FOF (staff not solely dedicated to FOF).
  3. Preparation of preliminary financial balance sheets for the financial sector and general government, on a from-whom-to-whom basis.
  4. Use of data from the FSC to complete the FOF instrument detail for regulated parts of the financial sector.
- FSC pension funds reporting: BOJ requested a new report form; FSC indicated it will finalize the form in early 2017.
- TAJ engagement: indicated willingness to add a schedule on selected balance sheet items to corporate tax forms; mission provided BOJ with a draft proposal requiring prompt action for a 2016 year-end deadline.

### Revised action plan and benchmark actions (high-level)
- Agreed updated action plan with revised target dates where prior progress lagged.
- Key revised benchmark actions (high priority):
  - BOJ establish a two-person team in BOJ solely dedicated to the development of FOF/sector balance sheet accounts.
  - BOJ continue to develop quarterly sector tables and FOF matrices of financial positions, by instrument and counterpart sector, from March 2013 onwards (through to end-2016), while improving reported data and exploring ways to fill data gaps.
  - BOJ explore with TAJ how to collect selected balance sheet data reported by nonfinancial corporations on a tax schedule, and sign a memorandum of understanding to allow BOJ staff access to individual tax records of nonfinancial corporations.
- Additional new benchmark actions:
  - Using the same matrix as for financial balances (instrument by sector and subsector), BOJ produce interim/preliminary sector tables and the FOF matrix from March 2013 through end 2016 (for internal use) of financial transactions, by sector and instrument, to show, as far as possible, from-whom-to-whom relationships, using counterpart data where necessary. The matrix will initially have empty cells that can be filled as other data sources are developed.
  - Development of a database for the FOF datasets to replace the current Excel-based approach.

### Detailed priority actions and target dates (selected items)
- Action Plan for All Agencies (BOJ, FSC, STATIN, TAJ)
  - TAJ be invited to join the inter-agency working group on the FOF project. Target date: January 2017.
  - BOJ begin an outreach program with potential users of the FOF data. Target date: June 2017.
  - BOJ ensure minutes of quarterly working group meetings assign responsibility for action items. Target date: March 2017.
  - BOJ ensure the working group decides on sector classification of the National Housing Trust. Target date: March 2017.
- Action Plan for BOJ (Stage I, selected high-priority actions)
  - BOJ establish a two-person team dedicated solely to the development of the FOF. Target date: December 2017. Benchmark action.
  - BOJ compile the 1SR and 2SR in sufficient detail for FOF purposes. Target date: March 2017.
  - BOJ obtain quarterly balance sheet data for the eight major public entities for which it does not currently receive quarterly data and map instrument detail and sector. Target date: June 2017.
  - BOJ continue to develop quarterly sector tables and FOF matrices of financial positions, by instrument and counterpart sector, from March 2013 through end-2016, and ongoing thereafter. Target date: June 2017 for data through end-2016 and ongoing thereafter. Benchmark action.
  - EIPD have ongoing consultation with data users (such as Financial Stability Department) to obtain input. Target date: January 2017 and ongoing thereafter.
  - BOJ explore possibility of a survey of nonfinancial corporations’ balance sheets with a view to having a survey in place in 2018, subject to availability of additional resources. Target date: December 2017.
  - BOJ explore with TAJ how to collect selected balance sheet data from nonfinancial corporations on a schedule as part of tax submissions. Target dates: December 2016 submission of request by BOJ; December 2017 for inclusion on tax schedule. Benchmark action.
  - BOJ submit a proposed MOU to TAJ to allow BOJ staff access to tax records of nonfinancial corporations; if not feasible: MOU for TAJ to supply aggregated data to avoid confidentiality issues. Target date: March 2017. Benchmark action.
  - BOJ develop a database for use in FOF to replace the current Excel-based system. Target date: December 2017. Benchmark action.
  - As direct data sources become available, BOJ compare with indirect sources to determine better sources. Target date: December 2018.
  - BOJ publish the data on the BOJ website once quality is satisfactory. Target date: December 2018.
- Action Plan for BOJ (Stage II — transactions)
  - Using the same matrix as for financial balances, BOJ produce interim/preliminary sector tables and the FOF matrix from March 2016 onwards (for internal use) of financial transactions. Target date: December 2017. Benchmark action.
  - Produce interim/preliminary sector tables and the FOF matrix from March 2013 to end-2015 (for internal use) of financial transactions. Target date: December 2018.
  - For the above, where only balance sheets are available, BOJ derive transactions by accounting for price, volume, and exchange rate changes so “other flows” are not treated as transactions. Target dates: December 2017 for the high priority item above and December 2018 for the medium priority.
  - BOJ publish the financial transactions data once quality is satisfactory. Target date: December 2018.
- Action Plan for BOJ (Stage III — sector accounts)
  - Using data from STATIN, BOJ prepare fully articulated accounts for the financial and general government sectors, subject to STATIN’s resources. Target date: June 2019.
  - Using data from STATIN, BOJ prepare fully articulated accounts for all sectors, subject to STATIN’s resources. Target date: June 2021.
  - BOJ publish the fully articulated accounts once quality is satisfactory. Target date: December 2021.
- Action Plan for FSC
  - FSC, in conjunction with BOJ, develop a new quarterly report form to capture instrument and counterpart detail for pension funds’ balance sheets. Target date: June 2017.
  - FSC, in conjunction with BOJ, develop a standardized report form for nonbank financial institutions to obtain quarterly balance sheet data. Target date: June 2018.
- Action Plan for MOFPS
  - MOFPS provide quarterly data of general government’s financial assets and liabilities positions, including accounts receivable and payable and estimates of future payments of pensions to GOJ current and former staff. Target date: December 2016 and ongoing thereafter.
  - MOFPS assist BOJ to obtain quarterly balance sheet data of the 16 largest public entities, using instrument detail by counterparty, to match the 2008 SNA instrument breakdown and provide data within two months of the end of the reference quarter. Target date: June 2017.
  - MOFPS provide BOJ with transactions data of general government’s financial assets and liabilities on a quarterly basis, using 2008 SNA instrument detail, from the first quarter of 2016 forward, and provide these data within two months of the end of the reference quarter. Target date: June 2017.
- Action Plan for STATIN
  - STATIN explore with BOJ means to obtain quarterly data on the largest nonfinancial corporations’ balance sheets. Target date: December 2017.
  - STATIN develop current and capital sector accounts for the financial and general government sectors, subject to resources. Target date: December 2018.
  - STATIN develop current and capital sector accounts for the nonfinancial corporations and household sectors, subject to resources. Target date: December 2020.
- Action Plan for TAJ
  - TAJ explore with BOJ how to collect selected balance sheet data reported by nonfinancial corporations on a schedule as part of tax submissions. Target dates: December 2016 submission of request by BOJ; December 2017 for inclusion on tax schedule.
  - Once the MOU between TAJ and BOJ to allow BOJ staff access to tax records of nonfinancial corporations is agreed, it be signed by the Governor and the Minister. Target date: March 2017. Benchmark action.

### Training, staffing, outreach, and resources
- The mission delivered two presentations on the uses of FOF datasets for policy purposes; attendees included staff from all involved agencies.
- Training sessions on compilation and conceptual issues of the FOF were provided to BOJ’s Economic Information and Publications Department (EIPD) staff; STATIN staff also attended.
- Staff situation and recommendation:
  - Currently two staff compile the datasets, with support from a supervisor, but these staff have many other responsibilities (IIP, external financial flows, external debt data, reserves template) that take priority.
  - Mission strongly recommended increasing staff resources and establishing a group dedicated to the FOF project to accelerate progress.
- Implementation note: Development of a new project requires more resources than an established production project given identical data needs.

*Executive Summary — IMF Statistics Department technical assistance mission to the Bank of Jamaica, November 28–December 9, 2016.*

### 1. A technical assistance mission from the IMF’s Statistics Department (STA) visited

### 1. A technical assistance mission from the IMF’s Statistics Department (STA) visited

### Mission overview
- Mission location and dates: Bank of Jamaica (BOJ), Kingston, Jamaica during November 28–December 9, 2016.
- Purpose: follow up on the flow of funds (FOF) statistics mission of August 2015; FOF project covers both transactions and balance sheet data.
- Funding: Caribbean Regional Technical Assistance Centre (CARTAC).

### Rationale: need for the FOF
- FOF provide a fully integrated framework, linking positions with transactions in financial instruments and between the real and financial parts of the economy.
- FOF: integral part of the System of National Accounts 2008 (2008 SNA).
- Uses: assist macroeconomic analysis and policy; highlight where financial instability problems might arise; reveal data problems via consistent definitions and classifications.

### Progress since August 2015 and overall findings
- The BOJ launched an FOF project in 2015 and STA conducted an August 2015 technical assistance mission; a detailed action plan was agreed to assemble preliminary balance sheet data from existing sources for financial sector (and subsectors), general government, public nonfinancial enterprises, and the rest of the world.
- The current mission’s purpose: examine progress and make further recommendations within a revised action plan.
- The mission found considerable progress in constructing sector tables and the FOF matrix for positions data from March 2013 to March 2015.
- Many of the August 2015 action plan’s main recommendations have been completed or are on track for completion.

### A. Bank of Jamaica (BOJ) — findings and actions
- Completed all four benchmark actions from the August 2015 mission report:
  - (i) establishment of an inter-agency working party to coordinate data supply, monitor progress, and ensure consistency in classification and data sharing between agencies;
  - (ii) establishment of a team for the FOF (though these staff are not solely dedicated to the FOF project);
  - (iii) preparation of preliminary financial balance sheets for the financial sector and general government from existing datasets, on a from-whom-to-whom basis, for the most part;
  - (iv) use of data from the FSC to complete the FOF instrument detail for the part of the financial sector that the FSC regulates.
- FSC pension funds report form: BOJ submitted request; FSC indicated it will finalize the form in early 2017.
- Coverage status:
  - Most of the financial sector’s financial balance sheet positions completed, together with the rest of the world and general government.
  - Nonfinancial corporations’ sector: financial balance sheet position largely incomplete (expected, as most difficult sector).
  - Household sector: compiled from counterpart information in the financial sector (households include nonprofit institutions serving households).
- Data quality notes:
  - Central bank and other deposit-taking corporations data drawn from datasets that feed into the 1SR and 2SR; most instruments have counterpart sector detail and are high quality.
  - Some detail missing from the 1SR and 2SR; FOF team must obtain data from actual submissions.
- Credit unions:
  - Not currently regulated; BOJ expected to take responsibility in the not-too-distant future.
  - BOJ Supervision Department already obtains balance sheets regularly; included in FOF data (currently included with other financial institutions).
  - If BOJ Monetary Policy Committee decides to include their liabilities in monetary aggregates, treat as part of deposit-taking corporations subsector.

### B. Financial Services Commission (FSC)
- FSC collects data for most nonbank financial institutions (insurance companies, pension funds, investment dealers and security brokers, unit trusts, investment and pension fund managers).
- FSC submits quarterly data to BOJ on a timely basis; data are of good quality for the most part, though pension funds data need improvement.
- Discussions and outcomes:
  - FSC finalizing new pension funds report form for 2017; BOJ draft based on Annex III of August 2015 mission report to be incorporated into quarterly return.
  - Issue of under- or over-funded defined benefit schemes discussed; FSC to explore whether shortfalls/surpluses are recorded as claims of pension fund (sponsor) on sponsor (pension fund) and advise BOJ.
  - Pension funds appraised every three years to assess under/over-funding; actuarial reassessments and reasons (discount rate, demographic changes, terms of employment) should be provided to FOF.
  - Timeliness: some insurance companies have timeliness problems with quarterly data; preliminary data with later revisions acceptable for statistical purposes.
  - Smaller investment brokers and security dealers: some do not provide quarterly information; larger brokers and dealers that report regularly account for approximately 90 percent of the industry’s assets — BOJ may gross up results if universe figure and reporting consistency are known.
  - Recommendation: BOJ to provide inter-agency working group with mapping of instruments in FSC forms to FOF (2008 SNA) framework; BOJ to provide classifications by sector and instrument for FSC consistency.
  - Data transmission: mission advised a secure site is needed to submit individual enterprise data to BOJ to ensure confidentiality.

### C. Tax Administration Jamaica (TAJ)
- Two issues discussed: (i) memorandum of understanding (MOU) between BOJ and TAJ; (ii) obtaining selected balance sheet items of nonfinancial corporations.
- MOU status and timelines:
  - MOU under discussion; reviewed within BOJ by data requesting divisions and legal department.
  - A proposal due to be submitted to TAJ in early 2017; then TAJ review; subsequently to be submitted to Governor and Minister for signatures.
  - If MOU not signed by March 2018, TAJ should be able to provide aggregate data in the meantime.
- Data provision and constraints:
  - BOJ seeks balance sheet items for which no alternative source exists (listed in this report’s annex).
  - TAJ files are not machine-readable at present; exploring options to make files machine-readable, but many small corporate entities do not file balance sheets.
  - TAJ suggested inclusion of FOF items in tax schedules (tax schedules are required by law); BOJ must provide request before end-December 2016 to be considered for inclusion in 2017 tax year filing requirements. If deadline missed, request likely delayed by a year.
  - Annex is maximalist; TAJ could pare back request if too much information is sought, with consequent loss of FOF data quality.

### D. Ministry of Finance and the Public Sector (MOFPS)
- Discussed provision of Government of Jamaica (GOJ) balance sheets and transactions and assistance in obtaining balance sheet data of public entities.
- Current data sources and issues:
  - GOJ domestic debt securities: obtained from MOFPS website (currently at nominal value, not market price).
  - Foreign loans and debt securities issued abroad: from BOJ-compiled IIP; transactions data available.
- MOFPS indicated market prices could be calculated (nominal value, term to maturity, coupon rate, current market interest rate available) and would explore providing balance sheet information at market prices.
- Accounts receivable/payable are calculated monthly; MOFPS said these data would be provided to BOJ within a few days of the meeting.
- GOJ pension liabilities:
  - MOFPS estimates future cash flows and could provide to BOJ for FOF; agreed data may be used internally until publication agreement reached.
  - Mission noted future cash flows need discounting to present value; discount rate not discussed — mission proposed long-term GOJ Jamaican dollar bond rate could be used.
  - MOFPS asked to indicate causes of changes in estimation of future cash flows (actuarial assumptions, terms and conditions of employment) to determine whether changes are other changes in volume/account rather than transactions.
- Major public entities reporting frequency:
  - At present 8 of the 16 major entities report to BOJ quarterly; 8 provide only annual data.
  - MOFPS indicated it would seek to ensure remaining 8 entities reported quarterly.
- Standardized report form: BOJ requested consideration; MOFPS to explore how to provide more detailed, less aggregated balance sheet information and notes.

### E. Statistical Institute of Jamaica (STATIN)
- Discussed development of sector accounts (production account through capital account) and STATIN’s assistance with a survey of nonfinancial private corporations.
- Resource constraints and timelines:
  - STATIN severely resource-constrained.
  - Development of sector accounts from production to capital account not possible until 2018, at the earliest, for the financial and general government sectors.
  - For nonfinancial corporations and households (and non-profit institutions serving households), current and capital accounts would take a further two years (and possibly later).
  - Both target dates predicated on STATIN receiving additional resources; without resources STATIN cannot provide these sector accounts.
  - If possible, STATIN would expect to provide data back to 2014, but only on an annual basis.
- Survey of balance sheets of largest nonfinancial corporations: STATIN cannot conduct in the foreseeable future; alternative of BOJ-conducted survey discussed but response rates are declining.

### F. Other data sources
- Jamaica Stock Exchange (JSE) website: posts financial statements of listed enterprises; BOJ uses balance sheet information of largest listed enterprises and data on price and number of shares to derive market values.

### Training, staffing, outreach, and computer resources
- Outreach and training:
  - Mission presented uses of the FOF to BOJ staff and external data providers; sessions well attended, with questions from Financial Stability Department (likely major users).
  - Mission recommended involving Financial Stability Department on an ongoing basis.
  - Two days of training provided to FOF staff and data providers within BOJ; many staff are new and would benefit from formal training.
  - One FOF staff applied for IMF Institute and Capacity Department course for February/March 2017.
- Staffing needs:
  - Current staffing: two staff who compile the datasets, coupled with a supervisor; all staff have many other responsibilities (IIP, external financial flows, external debt data, reserves template).
  - Mission strongly recommended increasing dedicated staff resources; recommended a group dedicated solely to the FOF project.
- IT resources:
  - Mission strongly recommended development of a database for FOF datasets; Excel sufficient for early development but a proper database necessary once ongoing given dataset size.

### Annex — suggested selected balance sheet items of nonfinancial corporations for TAJ tax schedule
- Assets:
  - Equity investments in entities with:
    - residents
    - nonresidents
  - Loans to entities:
    - residents
    - nonresidents
  - Other accounts receivable residents
    - nonresidents
    - (o/w trade credit) residents
    - nonresidents
- Liabilities:
  - Loans from nonfinancial entities:
    - residents
  - Other loans from:
    - nonresidents
  - Other accounts payable residents
    - nonresidents
    - (o/w trade credit) residents
    - nonresidents
- Shareholders' funds:
  - Total shareholders' funds: residents
    - nonresidents
  - (o/w share capital (including share premium))
  - Retained earnings
  - Other shareholders' funds

*Report of an STA technical assistance mission to the Bank of Jamaica, November 28–December 9, 2016.*

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_Source: https://www.imf.org/-/media/files/publications/cr/2017/cr1785.pdf_