## _cr06125 — DQAF July 2003—Summary Results (selected excerpts) ## Source details **Canonical URL:** [_cr06125 — DQAF July 2003—Summary Results (selected excerpts)](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06125.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06125.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06125.pdf.json) --- ### Overall assessment - Israel subscribed to the Special Data Dissemination Standard (SDDS) on April 23, 1996 and met all requirements on June 5, 2000. - Country is generally in observance of the SDDS; one of two flexibility options is used: the industrial production index is disseminated one week later than prescribed. - Monitoring indicates delays in monetary and financial statistics dissemination, particularly analytical accounts of the central bank. - Interagency coordination and communication are not fully manifested; undue burden falls on the Central Bureau of Statistics (CBS) as national coordinator. - Macroeconomic statistics are generally high quality and broadly adequate for effective surveillance, with shortcomings in timeliness, concepts and definitions, and classification of monetary statistics. - Agencies need adequate and sustained resources to improve scope and timeliness—notably for national accounts, producer prices, and government finance statistics. - The report applies the July 2003 IMF Data Quality Assessment Framework (DQAF) and organizes findings by agency (Dimensions 0 and 1) and by dataset (Dimensions 2–5). ### Key dataset ratings (exact entries preserved) - Datasets: National Accounts; Consumer Price Index; Producer Price Index; Government Finance Statistics; Monetary Statistics. - Dimension 0 — Prerequisites of quality - 0.1 Legal and institutional environment: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics LO - 0.2 Resources: National Accounts LNO; CPI LO; PPI LO; Government Finance Statistics LNO; Monetary Statistics LO - 0.3 Relevance: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics LNO - 0.4 Other quality management: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics LO - Dimension 1 — Assurances of integrity - 1.1 Professionalism: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics LO - 1.2 Transparency: National Accounts O; CPI O; PPI O; Government Finance Statistics LO; Monetary Statistics LO - 1.3 Ethical standards: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics O - Dimension 2 — Methodological soundness (selected) - 2.1 Concepts and definitions: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics LNO - 2.2 Scope: National Accounts O; CPI O; PPI LO; Government Finance Statistics LO; Monetary Statistics LO - 2.3 Classification/sectorization: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics NO - 2.4 Basis for recording: National Accounts LO; CPI O; PPI LO; Government Finance Statistics LO; Monetary Statistics LO - Dimension 3 — Accuracy and reliability (selected) - 3.1 Source data: National Accounts LO; CPI O; PPI LO; Government Finance Statistics LO; Monetary Statistics O - 3.2 Assessment of source data: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics O - 3.3 Statistical techniques: National Accounts LO; CPI LO; PPI LO; Government Finance Statistics O; Monetary Statistics O - 3.4 Assessment and validation of intermediate data and statistical outputs: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics NA - 3.5 Revision studies: National Accounts LO; CPI O; PPI LO; Government Finance Statistics O; Monetary Statistics NA - Dimension 4 — Serviceability (selected) - 4.2 Consistency: National Accounts O O; CPI O O; PPI O O; Government Finance Statistics O O; Monetary Statistics LO LO - 4.3 Revision policy and practice: National Accounts O; CPI O; PPI LO; Government Finance Statistics O; Monetary Statistics O - Dimension 5 — Accessibility (selected) - 5.1 Data accessibility: National Accounts O; CPI O; PPI O; Government Finance Statistics LO; Monetary Statistics LO - 5.2 Metadata accessibility: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics LNO - 5.3 Assistance to users: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics LNO *Source: IMF staff report excerpt titled "DQAF July 2003—Summary Results" (selected pages and tables provided).* ### User survey — summary responses and key counts - Informal survey: Sent to 40 users; 18 responses received (academics, banks, public and private sector analysts, consulting companies). - Selected counts (exact): - Total Sent: 40; Total Received: 18 - Government: Sent 10; Received 4 - Banks: Sent 5; Received 4 - Universities (researcher): Sent 10; Received 8 - Which official statistics used regularly (# / 18): - National accounts (NA): 17 - Prices: 16 - Government finance statistics (GFS): 12 - Monetary statistics (Monetary): 11 - Balance of payments (BOP): 14 - Selected satisfaction counts (Yes / No): - Satisfaction with coverage — Monetary: 10 / 8 - Satisfaction with timeliness — CPI: 12 / 6; NA: 11 / 7 - Knowledge of release calendar — NA: 12 / 6; CPI: 12 / 6 - Are statistics released on announced dates — Monetary: 6 / 12 - Accessibility via official website: all 18 respondents indicated Official website use. - User concerns highlighted: - BOI and MOF websites and inquiry services need improvement. - Scope and dissemination of monetary data and MOF central government tax and expenditure data need enhancement. - Timeliness of CPI and other real sector data needs attention. - Lack of good-quality data on some service industries. - Large revisions in national accounts, including trade statistics. - CBS constrained by manpower and financial budget limits. --- ### Prerequisites of quality — CBS and BOI (assurances of integrity, resources) - Central Bureau of Statistics (CBS) - Legal basis: Statistics Ordinance [New Version], 5732-1972 (last amended 1978) mandates CBS responsibilities and confidentiality. - Independence: CBS mandated as independent authority under administrative supervision of the Prime Minister; Government Statistician appointed by government. - Resources and staffing (exact counts and statements): - Staff: currently 771 staff in total; 4 dedicated to government finance, 24 to national accounts, and 25 to price statistics. - Of total, 155 are enumerators; remaining 616 employees work the equivalent of 598.3 full-time employees. - IT budget for expenditures on material and services (excluding in-house software dev/maintenance) amounts to NIS7 million per year. - Staffing is increasingly overstretched; hiring freeze and reduced funding constrain capacity. - Quality management: implementing EFQM-based quality management system; CBS Code of Ethics (May 2004) published. - Confidentiality: Article 17 "Secrecy" strictly protects individual reporters’ data; criminal penalties apply for unauthorized disclosure (up to three years under Statistics Ordinance; up to five years under Protection of Privacy Law in Article 16). - Access to administrative records: Article 15 and 15A empower CBS to access records, with exceptions (Article 15A(b)) for data that might injure economic system or financial institutions as judged by MOF governor/BOI governor. - Bank of Israel (BOI) - BOI Law does not specifically mandate responsibility for monetary statistics; some clauses empower data collection and ensure confidentiality. - Resources: some shortage of human resources for monetary statistics; financial, computer resources, and premises are adequate. - Transparency shortcomings: lack of specific public information explaining monetary statistics compilation and dissemination; BOI methodological notice posted on DSBB but not on BOI website. - Professionalism and ethics: high-level ethical standards; staff encouraged to participate in research and international meetings but BOI staff had not attended IMF monetary statistics courses (though "in process" for new law and capacity building). ### Legal/confidentiality regime and data sharing - Statistics Ordinance provisions summarized (Article references preserved in source): - CBS empowered to require reporting; secrecy/confidentiality provisions strict. - Article 18A allows limited disclosure where Bureau acts as agent/cooperator of a state agency, with conspicuous notice. - One-way flow of identified data generally: CBS cannot share individual data except in specified circumstances. - Recommendations (prerequisites): - Ensure sustained funding and managerial discretion for CBS; urgent provision of additional staff and IT resources. - CBS, BOI, MOF and other agencies to formalize interagency working groups to standardize statistical production and exploit synergies (full adoption of 1993 SNA; migration to GFSM 2001). --- ### Methodological soundness — dataset highlights and recommendations - National Accounts (CBS) - Concepts and classification: Compiled according to 1993 SNA; classifications follow ISIC Rev. 3, CPA, COICOP, COFOG. - Basis for recording: Most transactions on accrual basis; deviation noted for GDP at market prices—net taxes on imports excluded and subsidies on exports included (recommendation to align GDP at market prices with international standards). - Scope and sources: All SNA-recommended tables compiled; income and capital accounts for all sectors not yet completed; supply and use tables being compiled. - Statistical techniques: Double deflation only partly used; volume measures chain-linked; quarterly techniques sound. - Timeliness: Periodicity meets and timeliness exceeds SDDS; quarterly aggregates published in 45 days. - Revisions: Revision studies limited; data on scale/direction examined but long-term revision studies not regularly undertaken. - Recommendations (exact): - Record GDP at market prices in accordance with international standards by including net taxes on imports and excluding subsidies received by exporters. - Obtain more comprehensive and timely inputs for national accounts; conduct revision studies. - Consumer Price Index (CPI) (CBS) - Coverage and methods: Follows 1993 SNA household consumption concept; HES used for weights; about 60,000 monthly prices from 3,000 outlets collected. - Timeliness: CPI compiled monthly and disseminated 15 days after the reference month; meets and exceeds SDDS; could be advanced further. - Treatment of owner-occupied housing: rental-equivalent method used; concerns noted about uncontrolled qualitative characteristics influencing month-to-month measures. - Revision policy: CPI series are final when first released; weight revisions studied every two years. - Recommendations (exact): - Consider earlier dissemination of the CPI and separate it from the WPI to better serve users in an inflation-targeting environment. - Research alternative quality adjustment methods (e.g., hedonic regression); investigate rental index quality issues. - Producer Price Index / Wholesale Price Index (WPI) (CBS) - Scope: WPI covers core manufacturing and mining for domestic market (~65 percent of manufacturing production); input price indices for residential building, road construction, and agriculture compiled. - Source and weights: Monthly price collection covers about 4,200 price quotes for some 1,800 product types; weights derived from annual summaries of 1993/94 monthly manufacturing surveys and updated in January 2006 (reference period average 2005). - Methodological shortcomings: Use of net transaction prices including VAT (not recommended by PPI Manual); elementary index uses arithmetic means rather than geometric means. - Revision policy: WPI series are not revised; no clear policy on weight revisions historically. - Recommendations (exact): - Update WPI weights more frequently; provide additional metadata on index construction. - Investigate alternative elementary aggregation formulas (geometric mean) and quality adjustment methods; extend coverage to services and export sector. - Government Finance Statistics (GFS) (CBS / MOF) - Scope: Annual general government statistics have full coverage of government subsectors; central government operations and debt data disseminated by MOF monthly/quarterly but do not fully cover all extrabudgetary units and NPIs. - Basis for recording: Generally market prices; transactions recorded on mixed cash/accrual basis and adjusted to accrual where possible; debt recorded at nominal values. - Source data issues: Deficiencies in scope, definitions, and classifications; financial accounts not timely apart from budgetary central government; final source data largely based on audited accounts. - Ongoing reforms: MOF "Merkava" project to improve assets/liabilities, develop ministry balance sheets, and prepare accrual-based financial statements; joint WG established to promote GFSM 2001 compatibility. - Recommendations (exact): - CBS to establish and lead interagency working group to address deficiencies in government finance source data and coordinate migration to GFSM 2001. - Validate and incorporate MOF “Merkava” accrual adjustments using bridge tables adopting GFSM 2001 definitions. - Accelerate compilation of the financial account of general government; publicly disseminate GFSM 2001–format time series on CBS website. - Monetary Statistics (BOI / CBS) - Concepts and scope: Overall structure does not follow MFSM; monetary statistics not presented as balanced surveys; scope covers BOI and commercial banks; money market mutual funds not covered. - Classification/sectorization: MFSM-recommended classification not applied; monetary statistics overly aggregated. - Basis for recording: Stocks at market prices; accrual accounting applied; loans reported net of specific provisions (contrary to MFSM recommendation of gross). - Source data: Depository corporations report monthly to BOI; essential breakdowns for better sectorization missing; accuracy checked by BOI’s Banking Supervision Department. - Timeliness and dissemination: Periodicity meets SDDS but timeliness problematic—analytical central bank accounts often delayed beyond SDDS two-week requirement; preannounced release schedule not posted on BOI website (posted on CBS and DSBB only). - Accessibility and metadata: Monetary data presented at overly aggregated level; methodological notice posted on DSBB but not on BOI website; contact person posted on DSBB but not BOI dissemination media. - Recommendations (exact): - BOI statistical program priorities: (a) compile monetary statistics in accordance with MFSM; (b) timely provision of monetary statistics and metadata to IMF for DSBB; (c) prepare SRFs for IMF submission. - Ensure new BOI Law explicitly authorizes BOI to compile/disseminate monetary statistics, broaden data-collection powers to all financial institutions, and cross-reference Statistical Ordinance Secrecy Clause for confidential sharing. - Revise BOI and CBS websites to post methodological notices and designate one comprehensive internally consistent dataset as "monetary statistics." - Authority responses (exact statements preserved): - BOI undertaking wide-ranging review of databases; a smaller project to compile MFSM-consistent monetary statistics underway focusing on bridge tables and commercial bank balance-sheet issues. - BOI committed to include authorization and expanded data-collection powers in new BOI Law text under preparation. - Timeliness issues reportedly resolved; SRF preparation included in the project. --- ### Cross-cutting recommendations (exact phrasing preserved where present) - Establish formalized interagency working groups (CBS, BOI, MOF, and other relevant agencies) to standardize statistical production, including: - Full adoption of the 1993 SNA. - Migration to the GFSM 2001 framework for compiling policy-relevant fiscal data. - Formalized mandate and modus operandi to exploit synergies (including website design). - Urgent provision of additional staff to the CBS and securing adequate funding for IT resources to ensure efficient execution of statistical responsibilities. - Investigate options to streamline CBS statistical operations to free resources for emerging statistical demands. - Improve coverage and timeliness of annual business surveys used for national accounts and price indices: - Generate more detailed information on composition of intermediate consumption in manufacturing and service industries. - Extend the range of price indices for compilation of constant price estimates. Authority actions already underway (exact items preserved) - SDDS coordinators from CBS, MOF, and BOI to meet every three months; first meeting held beginning of February 2006; IT experts to participate initially. - Working group established (Budget Department, Accountant General Department at MOF, National Accounts Division at CBS) to promote compilation of fiscal data according to GFSM 2001; first meeting beginning of February. - Informal and planned formal working groups between CBS and BOI staff on statistics of financial corporations; formal groups contingent on BOI reorganization. - Working group (Budget Department and CBS) to assess additional staff and funding needs for CBS. - CBS prepared detailed work program to improve coverage and timeliness of annual business surveys and update input-output tables; services surveys timing advanced to coincide with manufacturing surveys—further work contingent on approval of additional resources. --- ### Selected operational and numeric facts (preserved) - CPI: compiled monthly and disseminated 15 days after the end of the reference month. - WPI: compiled monthly and disseminated 15 days after the end of the reference month. - CBS staff totals: 771 staff; 155 enumerators; 616 employees (equivalent of 598.3 full-time employees). - CBS IT budget (excluding in-house software dev/maintenance): NIS7 million per year. - Quarterly national accounts timeliness: main quarterly aggregates published in 45 days after reference quarter. - GDP recording deviation: net taxes on imports are excluded from, and subsidies on exports are included in, GDP (policy change announced to publish GDP at market prices including net taxes on imports and excluding other revenue components received by exporters beginning July 2006; announced at press conference on January 1, 2006). - Business register completed in 2003 and updated thereafter. - HES: annual since 1997; sample size approximately 7,000 households; response rate close to 90 percent; HES covers urban and nonurban households except specified exclusions. - WPI product price collection: about 4,200 price quotes for some 1,800 types of products from some 800 establishments. - CPI structure (selected): 10 major groups, 38 subgroups at 2-digit level, 148 at 3-digit level, 420 at 4-digit level for the 1,322 items in the CPI basket. - WPI weight revision cycle referenced historically as five to seven years published on DSBB; latest aggregate-level weight revision prior to assessment dated to 1995 (weights updated in January 2006 based on 2005 reference period average). --- ### Final prioritized actions (synthesized from source recommendations) - Provide urgent additional staff and sustained IT funding to CBS (explicit recommendation). - Formalize interagency working groups (CBS, BOI, MOF) with mandates and timetables for: - Full adoption of 1993 SNA practices (including GDP market-price recording alignment). - Migration and publication of government finance statistics according to GFSM 2001. - Harmonization and clear attribution of monetary statistics; BOI to compile MFSM-consistent monetary statistics and prepare SRFs for IMF. - Improve timeliness and coverage of source surveys: - Expedite timeliness of annual manufacturing and services surveys used for national accounts and price indices. - Expand PPI coverage to services and export sector; update WPI weights on a regular cycle. - Enhance monetary-statistics metadata and dissemination: - BOI and CBS websites to post methodological notices, release calendars, and designate a single internally consistent "monetary statistics" dataset. - Ensure BOI Law explicitly authorizes BOI to compile/disseminate monetary and financial statistics and broaden data-collection powers. - Conduct revision studies and methodological research: - Undertake revision studies for national accounts and producer prices. - Research alternative quality adjustment methods (hedonic) and elementary aggregation formulas (geometric) for CPI and PPI where appropriate. *Source: INTERNATIONAL MONETARY FUND — ISRAEL — Detailed Assessments Using the Data Quality Assessment Framework (DQAF); Report prepared by the Statistics Department; Approved by Michael C. Deppler and William E. Alexander; March 13, 2006.* ### 1. DQAF July 2003—Summary Results................................................................................8 ### _cr06125 - 1. DQAF July 2003—Summary Results ### Overall assessment - Israel subscribed to the Special Data Dissemination Standard (SDDS) on April 23, 1996 and met all requirements on June 5, 2000. - The country is generally in observance of the SDDS, meeting specifications for coverage, periodicity, timeliness, and dissemination of advance release calendars. - One of two flexibility options is used: the industrial production index is disseminated one week later than prescribed. - Monitoring indicates some delays in dissemination of monetary and financial statistics, particularly analytical accounts of the central bank. - Interagency coordination and communication are not fully manifested, placing an undue burden on the Central Bureau of Statistics (CBS) as national coordinator. - Macroeconomic statistics are generally high quality and broadly adequate for effective surveillance, but shortcomings exist in timeliness, concepts and definitions, and classification of monetary statistics. - Agencies need adequate and sustained resources to improve scope and timeliness of data compilation and dissemination, notably for national accounts, producer prices, and government finance statistics. - The report applies the July 2003 IMF Data Quality Assessment Framework (DQAF) and organizes findings by agency (Dimensions 0 and 1) and by dataset (Dimensions 2–5). ### Prerequisites of quality and assurances of integrity (selected findings) - Statistics Ordinance clearly mandates responsibility to the CBS for compiling and disseminating national accounts, prices, and government finance statistics, requires confidentiality, and administers sanctions for noncompliance. - CBS resources are increasingly stretched; constrained financial and inflexible manpower budgets limit capacity, especially as the economy becomes more service-oriented. - The laws ensure independence of the CBS; compilation and dissemination are based solely on statistical considerations. - CBS management implements a quality management system and promotes professionalism, transparency, and ethical standards. - Bank of Israel (BOI) traditionally compiles and disseminates monetary statistics; Bank of Israel Law does not specifically spell out this mandate but empowers data collection and ensures confidentiality. - BOI resources are broadly adequate; BOI is undertaking an institutional review to improve efficiency while maintaining professionalism and transparency. ### Methodological soundness (selected findings) - Israeli macroeconomic statistics broadly follow internationally accepted standards and guidelines on concepts and definitions, scope, classification/sectorization, and basis for recording. - Recording basis for monetary statistics generally follows Monetary and Financial Statistics Manual (MFSM) recommendations, but classification/sectorization, concepts and definitions, and scope need improvement. - Government finance statistics are generally consistent with 1993 SNA and GFSM 2001 but could benefit from strengthened interagency coordination to improve scope and basis for recording. - Scope and recording basis for producer prices could be improved. - National accounts follow 1993 SNA, but recording of GDP at market prices should be brought in line with international standards. ### Accuracy and reliability (selected findings) - Macroeconomic statistics rate highly on accuracy and reliability, due largely to assessment of source data and validation across datasets. - CBS needs additional resources to improve source data for national accounts, producer prices, and government finance statistics. - Priority for national accounts and producer prices: obtain more comprehensive and timely inputs. - For government finance statistics: more timely source data on central and local government operations would improve consolidated general government accounts. - Revision studies for national accounts and, to a lesser extent, producer prices would enhance accuracy and reliability. - Source data for monetary statistics are very accurate. ### Serviceability and accessibility (selected findings) - Production and dissemination of real and fiscal sector statistics meet SDDS periodicity requirements and are commendably timely. - BOI has initiated steps to consolidate responsibility for monetary statistics and to improve timeliness. - Consistency across datasets is broadly adequate, with room for improvement in monetary statistics. - Most datasets provide clear and transparent information about revision schedules and revisions themselves. - Data and metadata are readily accessible due to CBS website improvements and responsiveness to user inquiries. - BOI is addressing problems affecting users’ access to monetary data and metadata, including upgrades to the BOI website. ### Impact of inflation-targeting monetary policy on data needs - Reorientation toward an inflation-targeting regime has expanded data requirements beyond traditional macroeconomic statistics to include forward-looking indicators: productivity, price indices, market-based inflation and interest rate expectations, and professional forecasters’ information. - BOI seeks more timely real sector indicators from the CBS to support the inflation-targeting regime and is strengthening statistical forecasting models to reduce overreliance on market-derived indicators. - Authorities are encouraged to expand coverage of forward-looking data and relevant metadata on national websites and the Dissemination Standards Bulletin Board (DSBB). ### Government finance statistics and Ministry of Finance (MOF) interaction - MOF (accountant general) is implementing the “Merkava” project to improve assets and liabilities information, develop balance sheets for central government ministries, and prepare accrual-based financial statements commensurate with international standards. - The MOF’s reforms create synergies with CBS implementation of GFSM 2001 for compiling annual consolidated general government accounts. - Recommended: creation of an interagency working group with a mandate and timetable to address basis of recording, classifications, coverage, periodicity, and timeliness. ### Assessment by agency and dataset (DQAF July 2003—Summary Results) - A four-point rating scale is used: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable. - Table 1 summary results (selected entries preserved exactly): - Datasets considered: National Accounts; Consumer Price Index; Producer Price Index; Government Finance Statistics; Monetary Statistics. - Dimension 0. Prerequisites of quality - 0.1 Legal and institutional environment: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics LO - 0.2 Resources: National Accounts LNO; CPI LO; PPI LO; Government Finance Statistics LNO; Monetary Statistics LO - 0.3 Relevance: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics LNO - 0.4 Other quality management: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics LO - Dimension 1. Assurances of integrity - 1.1 Professionalism: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics LO - 1.2 Transparency: National Accounts O; CPI O; PPI O; Government Finance Statistics LO; Monetary Statistics LO - 1.3 Ethical standards: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics O - Dimension 2. Methodological soundness - 2.1 Concepts and definitions: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics LNO - 2.2 Scope: National Accounts O; CPI O; PPI LO; Government Finance Statistics LO; Monetary Statistics LO - 2.3 Classification/sectorization: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics NO - 2.4 Basis for recording: National Accounts LO; CPI O; PPI LO; Government Finance Statistics LO; Monetary Statistics LO - Dimension 3. Accuracy and reliability - 3.1 Source data: National Accounts LO; CPI O; PPI LO; Government Finance Statistics LO; Monetary Statistics O - 3.2 Assessment of source data: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics O - 3.3 Statistical techniques: National Accounts LO; CPI LO; PPI LO; Government Finance Statistics O; Monetary Statistics O - 3.4 Assessment and validation of intermediate data and statistical outputs: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics NA - 3.5 Revision studies: National Accounts LO; CPI O; PPI LO; Government Finance Statistics O; Monetary Statistics NA - Dimension 4. Serviceability - 4.1 Periodicity and timeliness: (not reproduced as table cell entries in source excerpt) - 4.2 Consistency: National Accounts O O; CPI O O; PPI O O; Government Finance Statistics O O; Monetary Statistics LO LO - 4.3 Revision policy and practice: National Accounts O; CPI O; PPI LO; Government Finance Statistics O; Monetary Statistics O - Dimension 5. Accessibility - 5.1 Data accessibility: National Accounts O; CPI O; PPI O; Government Finance Statistics LO; Monetary Statistics LO - 5.2 Metadata accessibility: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics LNO - 5.3 Assistance to users: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics LNO - Key interpretations of symbols (preserved from source): - Practice observed: current practices generally in observance meet or achieve the objectives of DQAF internationally accepted statistical practices without any significant deficiencies. - Practice largely observed: some departures, but these are not seen as sufficient to raise doubts about the authorities’ ability to observe the DQAF practices. - Practice largely not observed: significant departures and the authorities will need to take significant action to achieve observance. - Practice not observed: most DQAF practices are not met. - Not applicable: used only exceptionally when statistical practices do not apply to a country’s circumstances. ### User survey and stakeholder feedback - An informal survey was sent to 40 users; 18 responses were received from academics, banks, public and private sector analysts, and consulting companies. - Users noted recent improvements in CBS data production and dissemination (notably the CBS website and responsiveness). - Concerns raised by users: - BOI and MOF websites and services to inquiries need improvement. - Scope and dissemination of monetary data and MOF central government tax and expenditure data need enhancement. - Timeliness of the CPI and other real sector data requires attention. - Lack of good-quality data on some service industries. - Large revisions in national accounts, including trade statistics. - CBS faces a daunting task due to substantial economic transformation, constrained by severe manpower and financial budget constraints; ad hoc funding has helped but is not a sustainable long-term solution. *Source: IMF staff report excerpt titled "DQAF July 2003—Summary Results" (selected pages and tables provided).* ### 0. Prerequisites of quality ### 0. Prerequisites of quality ### Central Bureau of Statistics — Assurances of integrity and institutional framework - Legal and institutional environment: - The CBS is the general authority for official statistics in Israel under the Statistics Ordinance [New Version], 5732-1972, last amended in 1978, which prescribes that the CBS must adhere to the principles of neutrality, objectivity, and scientific independence. - Individual data are required to be kept confidential according to the Statistics Ordinance and other national laws; the CBS has put detailed procedures and sanctions in place to prevent disclosure of such data. - The CBS has the legal mandate to require reporting from government agencies, enterprises, and individuals. - The Statistics Ordinance provides clear guidance regarding data sharing and coordination among data-producing agencies; formal agreements exist and, as a general rule, the CBS does not encounter major difficulties in dealing with other agencies. - Compilation of government finance statistics—consolidated general government accounts—could be improved through closer collaboration with the MOF and BOI. - Adhering to confidentiality provisions, the CBS cannot share individual data. - Resources: - Staffing is increasingly overstretched, especially in macroeconomic statistics. - Reduced funding combined with a hiring freeze make it difficult to undertake research on the data and new methods, or engage in important development work aimed at further implementing international standards (i.e., 1993 SNA, GFSM 2001, and price index manuals). - Qualifications, skills, and motivation of staff are high; internal training and participation in international forums are used to maintain and develop staff. - Significant investment in human resources development—given existing budget constraints—is embedded in the corporate culture of the CBS. - Computer resources are largely outdated; needed improvements require additional—and sustained—budgetary resources. - On-site facilities are excellent. - Without additional funding and greater managerial discretion in allocating funds and staff, it will be difficult to maintain excellence, strengthen existing functions, and implement planned programs. - The CBS has entered into ad hoc service-level contracts funded by some national organizations; these projects may not be sustainable. - Relevance: - The Public Council for Statistics (and other informal bodies) advise on the relevance of the CBS’s statistics. - Much statistical activity is driven by adherence to international standards. - General users are encouraged to provide comments; these are monitored closely. - Information on new and emerging requirements is obtained through participation in meetings organized by the OECD, UNECE, Eurostat, the IMF, etc. - Other quality management: - CBS management is implementing a quality management system based on the European Foundation for Quality Management framework. - Every department comprises at least one person responsible for quality management issues. - Various processes are in place to monitor the quality of the statistical program. - Professionalism: - Several provisions in the Statistics Ordinance support the CBS’s professional independence. - The Government Statistician manages activities and finances of the CBS and appoints staff. - The Ordinance stipulates Israel’s official statistics should be free from political or other pressure, particularly regarding techniques, definitions, and methodologies. - Recruitment and promotion are based on relevant aptitude and expertise. - The Ordinance requires that choice of data sources, statistical techniques, and dissemination be informed by statistical considerations. - The CBS has an active policy for responding to erroneous use or misinterpretation of statistics. - Transparency: - Information on terms and conditions for compiling statistics is available on the CBS website, in the Statistics Ordinance, and in the report prepared in accordance with the Freedom of Information Law, which can also be found on the CBS website. - Advance access by the MOF to national accounts and general government accounts data are indicated in Hebrew in the CBS sources. - Advance notice is given of major changes in methodology, source data, and statistical techniques. - Ethical standards: - Staff behavior is guided by the Statistics Ordinance, the Civil Service Code, and the CBS Code of Ethics, created in May 2004, which is given to all employees and published on the CBS website. ### Bank of Israel — Assurances of integrity and institutional framework - Legal and institutional environment: - The responsibility of the central bank for monetary statistics is not specified in the BOI Law or in any other official provision. - Coordination with the MOF, which forwards to the BOI statements from institutional investors, is good. - Some clauses in the BOI Law empower the central bank to collect source data from commercial banks and provide for confidentiality of data from individual providers. - Resources: - There is some shortage of human resources for the compilation of monetary statistics. - Financial and computer resources, as well as premises, are adequate. - There is scope for improving cooperation between various departments with regard to design and timely updating of the BOI website for posting monetary statistics. - Relevance: - Monetary statistics are adequate in meeting the data needs for the BOI’s inflation targeting monetary policy. - No regular surveys or meetings on the needs of monetary statistics users outside the BOI are conducted. - Specific requests on monetary statistics from users are not analyzed to improve the statistical program and dissemination formats. - Other quality management: - Strong awareness exists of monetary statistics quality as a contribution to effective monetary policy formulation. - Quality awareness is less observed with regard to consistency of monetary statistics with other macroeconomic datasets or dissemination of monetary statistics. - Professionalism: - Legal provisions targeting all levels of BOI staff warrant that monetary statistics are produced on an impartial basis. - The BOI promotes professionalism through support for research and analysis, publication of working papers, and participation in international conferences. - No BOI staff has attended courses or seminars on monetary statistics offered by the IMF despite specific invitations. - Choices of sources, statistical techniques, and dissemination are informed solely by statistical consideration; current bias toward the inflation-targeting monetary regime needs better balancing by other policy considerations. - Timely communication of the BOI to the public in the context of monetary policy decisions ensures monetary statistics are correctly interpreted. - Transparency: - The BOI Law lacks any mention of monetary statistics; this is not compensated by specific information on the terms and conditions under which source data are collected and processed and monetary statistics are disseminated to the public. - Government officials have no access to monetary statistics prior to their release to the public. - On the CBS website, there is no indication that the BOI is the source for monetary statistics. - Generally, the BOI provides advance notice of changes in methodology. - Ethical standards: - Ethical standards are at the highest level across BOI staff. - Guidelines for BOI staff behavior are set out in the BOI Law, the labor constitution regarding BOI employees, internal work procedures, and an information booklet for employees. - Provisions on secrecy under national penal law apply to BOI employees. ### National Accounts — Methodological soundness, accuracy, serviceability, accessibility - Concepts and definitions: - The CBS compiles the national accounts according to the conceptual framework of the 1993 SNA. - Scope: - The CBS compiles all the tables and accounts recommended in the 1993 SNA. - Income and capital accounts for all sectors have not yet been completed. - Supply and use tables are currently being compiled in the framework of the national accounts. - Delimitations of the economy and production boundary are largely defined in accordance with the 1993 SNA. - Asset boundaries for tangible assets are only partly in line with the 1993 SNA recommendations. - Classification/sectorization: - The CBS uses classifications and sectors derived from appropriate standards. - Basis for recording: - Valuation for recording flows and stocks is largely in accordance with the 1993 SNA. - Most transactions are recorded on an accrual basis, except part of taxes/subsidies and other expenditure in general government, which are recorded on a cash basis. - Compilation of GDP at market prices deviates from international standards: net taxes on imports are excluded from, and subsidies on exports are included in, GDP. - Source data: - Available sources are broadly adequate. - A business register was completed in 2003 and is currently being updated. - No survey of the detailed composition of intermediate input in the service industry exists. - Sources for construction activities could be improved. - A household expenditure survey (HES) is conducted annually. - Household consumption expenditure is estimated partly based on HES and partly on other sources (different volume indicators). - Government sources are sound. - Administrative data on financial institutions are comprehensive. - Available price indices are sound and sufficiently detailed, but coverage should be expanded. - Timeliness of the annual business surveys is inadequate. - Assessment of source data: - Source data are adequately checked. - Statistical techniques: - Statistical techniques are broadly sound. - Use of outdated fixed coefficients is limited. - Agricultural work-in-progress is not recorded. - Double deflation is only partly used. - Volume measures are chain-linked. - Quarterly national accounts compilation techniques are sound. - Assessment and validation: - Validation procedures are extensive. - Discrepancies between GDP by expenditure and GDP by production are only partly removed; the remaining discrepancy is explicitly shown on the production side (in current prices only). - Revision studies: - Data on the scale, direction, and magnitude of revisions are examined and discussed in publications. - Studies of long-term trends in revision patterns are not undertaken on a regular basis. - Periodicity and timeliness: - Periodicity meets, and timeliness exceeds, SDDS requirements. - Projections of GDP are published in October and revised in December for the current year. - Estimates/projections can be subject to substantial revisions from the first to the final version. - Consistency: - Statistics are internally consistent. - Time series according to 1993 SNA go back to 1995, while historic series according to System of National Accounts 1968 are available for 1950 to 1995. - National accounts are consistent with balance of payments and government finance statistics. - Revision policy and practice: - Periodic revisions follow a regular and transparent schedule. - Preliminary estimates are clearly indicated in press releases and in metadata in CBS publications, but not in databases or in tables in hard-copy publications. - Nature and effects of major revisions are explained in statistical publications. - Data accessibility: - National accounts are published in a clear manner with extensive explanations and definitions. - Different levels of detail are distinguished in publications and the database. - Relevant series are published on a seasonally adjusted basis. - National accounts are disseminated in a press release, and press conferences are held twice a year. - The advance release calendar is strictly followed and data are made available to all users at the same time, with the exception that three official agencies receive the data one day in advance under embargo. - Nonpublished data are made available on request for free or sometimes for a charge. - Metadata accessibility: - A comprehensive description of the methodology is published in Current Briefing in Statistics, which is available on request for a charge and for free on the Internet. - Assistance to users: - User support is excellent. - A comprehensive catalog detailing how to obtain a product or service, and their prices, is published. - The CBS website includes information on publication prices and charging policy for nonpublished data. ### Consumer Price Index — Methodological soundness, accuracy, serviceability, accessibility - Concepts and definitions: - The CPI follows the 1993 SNA household consumption concept and uses sufficiently detailed expenditure data from annual HES. - Scope: - Scope is broadly consistent with international standards. - Urban and nonurban households are included. - Differences from the 1993 SNA household expenditure concept are kept under review. - Classification/sectorization: - Goods and services are classified by branch and economic activity similar to CPC and aggregated to subgroups and groups very similar to COICOP. - Basis for recording: - Valuation rules used in the HES are consistent with the 1993 SNA. - Actual cash transaction prices that reflect conditions of sale at the time of purchase are collected monthly. - Source data: - Well-conducted annual HES is used for CPI weights. - Some 60,000 monthly prices from 3,000 outlets are collected for the index. - Assessment of source data: - Assessment and validation take into account stages of data collection, editing, and compilation. - Validation is well implemented and documented and guides the statistical process. - Statistical techniques: - International statistical technical guidelines are followed rigorously. - Some item indices would benefit from research in alternative quality adjustment methods, such as hedonic regression analysis. - The method for owner-occupied housing leaves room for uncontrolled qualitative characteristics to influence measures of month-to-month price changes. - Assessment and validation of outputs: - CPI division specialists analyze every item index to ensure movements are consistent with other information about commodity and retail markets. - Revision studies: - CPI series are not revised. - Weight revisions are studied every two years; information on changes is disseminated to the public. - Periodicity and timeliness: - The CPI is compiled monthly and disseminated 15 days after the end of the reference month. - CPI statistics already exceed the SDDS requirement for timeliness; they could be advanced further to better meet users’ needs. - Consistency: - Long-time series are maintained along with the current index using linking factors. - Revision policy and practice: - Data are final when first released and are not subject to revision. - Data accessibility: - CPI publication, Price Statistics Monthly, is clear and provides various levels of detail including short- and long-term index changes and is provided on the CBS website, accompanying a press release. - The CBS website being developed currently provides detailed explanations in Hebrew only. - Metadata accessibility: - A comprehensive methodology is published in technical series publication No. 60, Consumer Price Index, which is available also in English. - Overall metadata accessibility is very good, and the DSBB is updated regularly. - Assistance to users: - User support is excellent. - A comprehensive catalog, detailing how to obtain a product or service, and their prices, is published. - The CBS website includes information on publication prices and charging policy for nonpublished data. ### Producer Price Index — Methodological soundness, accuracy, serviceability, accessibility - Concepts and definitions: - The Wholesale Price Index of Industrial Output for the Domestic Market (WPI) measures developments in output prices for a fixed set of products during the first stage of marketing in Israel. - Concepts and definitions broadly conform to international guidelines. - The CBS also compiles input price indices for residential buildings, road construction, and agriculture that generally follow the PPI Manual. - Scope: - WPI covers core manufacturing and mining activities for domestic use—the very minimum recommended by the PPI Manual. - Coverage could be increased into services activities and the export sector to provide a more comprehensive index. - The survey covers production for the domestic market, or about 65 percent of total production in manufacturing activities. - Classification/sectorization: - Goods and services are classified according to the CPC and establishments by the national adaptation of ISIC. - Basis for recording: - Market prices are used in valuation of weights and in the price survey; prices refer to those actually paid by the purchaser “ex factory gate.” - Market prices and valuation for well-specified transactions are net transaction prices (after discount and credits) and include all taxes (also value-added tax), which is not recommended by the PPI Manual. - Source data: - Price data collected are sufficiently detailed to derive WPIs at the 2-digit activity level and 4-digit product level for covered activities. - Weights for current indices were obtained from annual summaries of monthly manufacturing surveys of 1993/94 and need updating. - Monthly price collection covers about 4,200 price quotes for some 1,800 types of products. - Assessment of source data: - Software used with prices collected in Computer Assisted Telephone Interviews performs logical and statistical checks. - Processes are in place to assess and validate data used for WPI compilation. - Statistical techniques: - International methodological guidelines are generally followed. - Shortcomings remain: use of input prices instead of market prices for some components; methods to account for quality change rely on imputation instead of explicit quality adjustment techniques. - The elementary index uses arithmetic means instead of preferred geometric means (also noted for CPI). - Assessment and validation of outputs: - Staff verifies prices against other sources when available; unusual movements are explained in the publication. - Revision studies: - WPI series are not revised. - Weight adjustments within activities are not investigated. - Periodicity and timeliness: - WPI is compiled monthly and disseminated 15 days after the end of the reference month, meeting SDDS requirements. - Consistency: - Long time series are maintained along with the current index using linking factors. - Revision policy and practice: - Data are final when first released and are not subject to revision. - No clear policy on weight revisions is followed. - Data accessibility: - WPI publication, Price Statistics Monthly, is clear and provides various levels of detail and is provided on the CBS website, accompanying a press release. - The CBS website currently provides detailed explanations in Hebrew only. - Metadata accessibility: - A description of the index methodology is included in Price Statistics Monthly No.1, 1995, available in Hebrew but not in English. - More detailed metadata should be disseminated on the CBS website. - Metadata on the DSBB are updated regularly. - Assistance to users: - User support is excellent. - A comprehensive catalog, detailing how to obtain a product or service, and their prices, is published. - The CBS website includes information on publication prices and charging policy for nonpublished data. *Source: _cr06125 - 0. Prerequisites of quality* ### 2. Methodological soundness ### 2. Methodological soundness ### Concepts and definitions - The CBS compiles and disseminates annual general government statistics in the context of national accounts based on the 1993 SNA. - The CBS’s government finance statistics are not presented as a distinct statistical output in a comprehensive fiscal analytical framework, but plans to follow the GFSM 2001 (in national presentations) are advancing. ### Scope - Annual general government statistics have full coverage of all government subsectors. - All material government activities are included in the statistics. - For general government, the CBS publishes a balance sheet for financial assets and liabilities and for nonfinancial assets (in the context of national accounts). - Central government operations and debt data are disseminated by the MOF on a monthly and quarterly basis, respectively, but do not fully cover all extrabudgetary units and nonprofit institutions (NPIs). ### Classification/sectorization - The CBS’s classifications are in accordance with the national accounts and the detailed revenue and expense classification of the GFSM 2001. - The sectorization of the general government is consistent with the GFSM 2001. ### Basis for recording - Generally, flows and stocks are valued at market prices. - Transactions are recorded on either a mixed cash and/or accrual basis and, where necessary, adjusted to accrual to the extent possible. - Debt is recorded at nominal values. - Grossing/netting procedures are appropriate. ### Source data and assessment - Source data on general government have deficiencies vis-à-vis the scope, definitions, and the classifications required for government finance statistics compilation and could usefully be brought into closer conformity with international guidelines. - These are largely accounting data received from the MOF, the extrabudgetary funds and the NPIs, the social security scheme, and the local authorities. - The data are adjusted and reclassified, where necessary, by the CBS in the national accounts context and according to the GFSM 2001. - The source data provide the CBS with all the necessary stock and flow data (except for some on the nonfinancial and financial accounts). - Financial accounts are not timely apart from budgetary central government. - The final source data are, to the greatest extent possible, based on audited accounts for all general government institutions. ### Statistical techniques and validation - The CBS makes estimates in compiling the data on the local government and the extrabudgetary sectors and in the preparation of the annual preliminary data for the general government sector. - The techniques used are sound. - All tables are checked for internal consistency. - The reliability of the statistics is assessed, internally, on a regular basis. ### Periodicity, timeliness, and consistency - The SDDS requirements are met. - Statistics are internally consistent for most of the accounts, even though some discrepancies occur in the underlying sources. - The discrepancy between net lending/borrowing and financing is difficult to assess given deficiencies in the financial accounts. - For the financial accounts, the differences between the opening and closing balance sheet for each asset and liability category, and the net transactions and other net economic flows, are not yet fully reconciled, because of a lag in securing data on other economic flows. - Reported transfers received equal reported transfers paid between subsectors of the general government. - Data are consistent with the national accounts, as well as the monetary statistics. - Ongoing work by the MOF under the multifaceted “Merkava” project should greatly improve the consistency of fiscal aggregates for compiling the budgetary central government accounts on an accrual basis. ### Revision policy and practice - Periodic revisions follow a regular and transparent schedule (in the context of national accounts). - Users are informed of these revisions when the data are disseminated. - The general government accounts are revised on an annual basis for use as an input in compiling the GFSM 2001 aggregates and balances. ### Data and metadata accessibility; assistance to users - The general government account data facilitate proper and meaningful interpretation within the national accounts framework. - They are not presented in a way that allows major revenue and expenditure aggregates and balancing items to be identified and related to detailed underlying data, as is the case in of the GFSM 2001 framework. - For the general government and its subsectors, metadata are provided on annual government operations, financing, and debt in publications and on the Internet. - Metadata on sources and methods are provided (in the context of national accounts) but could be usefully expanded for the data compiled using the GFSM 2001 framework. - User support is excellent. - A comprehensive catalog, detailing how to obtain a product or service, and its prices, is published. - The CBS’s website includes information on publication prices and charging policy for nonpublished data. ### Table 3e. Israel: Assessment of Data Quality—Dimensions 2 to 5—Monetary Statistics ### Concepts and definitions - The overall structure of monetary statistics does not follow concepts and definitions set out in the MFSM. - Monetary statistics are not presented in the form of surveys with balanced assets and liabilities. ### Scope - The scope of monetary statistics covers the BOI (central bank) and commercial banks (other depository corporations). - Money market mutual funds are not covered. (Checks cannot be written on mutual funds in Israel; however, there is a report to the public on mutual funds.) - One credit aggregate includes loans obtained by resident nonfinancial corporations from nonresident banks, while monetary statistics are deemed to cover transactions of resident financial institutions only. ### Classification/sectorization - Classification of financial assets and sectorization of the economy recommended by the MSFM are not applied. - Monetary statistics are overly aggregated. ### Basis for recording - Stocks are valued at market prices, and fair value is being implemented where applicable. - The BOI and commercial banks apply accrual accounting. - Loans are reported net of specific provisions for loan losses. ### Source data and assessment - Source data are comprehensive since all depository corporations report monthly to the BOI, but essential information, such as breakdowns that would permit better sectorization of the economy, are missing. - Accuracy of source data reported by commercial banks is checked on an ongoing basis by the BOI’s Banking Supervision Department. ### Statistical techniques and validation - Some data series are seasonally adjusted through well-established techniques. - In the absence of comprehensive sectoral surveys, standard checks usually applied to intermediate and statistical outputs in monetary statistics cannot be undertaken. ### Revision studies and policy - Monetary statistics are not subject to formal revision cycles since most data are deemed final when released. - There is no need for a regular and permanent revision schedule. ### Periodicity, timeliness, and consistency - Periodicity of monetary statistics meets SDDS requirements for dissemination while timeliness has been problematic, especially for central bank accounts. - Monetary statistics are available in the form of time series over a long period; thus, they are reconcilable and show consistency over time. - Foreign assets and foreign liabilities for commercial banks are identical to those in the international investment position because the latter are directly applied to monetary statistics. - Net position of the government in monetary statistics is broadly consistent with bank financing in government finance statistics. - Changes in net foreign assets of depository corporations are not assessed against corresponding transactions in the balance of payments statistics. ### Data and metadata accessibility; assistance to users - Monetary statistics are not presented in the form of comprehensive surveys. Instead, each major aggregate or component is presented at an overly aggregated level without a clear heading that would facilitate direct and immediate access to users. - The preannounced schedule for the release of monetary statistics to the public is not posted on the BOI website, but on the CBS and DSBB websites only. - Monetary statistics are made available to all users at the same time. - Some nonpublished detailed data series are available upon request to the BOI. - A summary methodological notice is posted on the DSBB, but is neither posted on the BOI website nor included in the publications of the BOI. - Methodological notices are not adapted to the needs of different audiences. - The name of a contact person for monetary statistics is posted on the DSBB, but not in the BOI’s own dissemination media. - A catalog of publications is available. ### Document structure note - The file proceeds to a section titled "III. STAFF’S RECOMMENDATIONS" following these assessments. *Source: _cr06125 - 2. Methodological soundness* ### 14. Based on the review of Israel’s statistical practices, discussions with the data- ### 14. Based on the review of Israel’s statistical practices, discussions with the data-producing agencies, and responses from data users ### Cross-cutting recommendations - Establishment of formalized interagency working groups (CBS, BOI, MOF, and other relevant agencies) to standardize statistical production, including: - Full adoption of the 1993 SNA. - Migration to the GFSM 2001 framework for compiling policy-relevant fiscal data. - Formalized mandate and modus operandi to exploit synergies (including website design). - Urgent provision of additional staff to the CBS and securing adequate funding for IT resources to ensure efficient execution of statistical responsibilities. - Investigate options to streamline CBS statistical operations to free resources for emerging statistical demands. - Improve coverage and timeliness of annual business surveys used for national accounts and price indices: - Generate more detailed information on composition of intermediate consumption in manufacturing and service industries. - Extend the range of price indices for compilation of constant price estimates. Authority responses and actions already underway: - SDDS coordinators from CBS, MOF, and BOI to meet every three months; first meeting held beginning of February 2006; IT experts to participate initially. - A working group established (Budget Department, Accountant General Department at MOF, National Accounts Division at CBS) to promote compilation of fiscal data according to GFSM 2001; first meeting beginning of February. - Informal meetings and planned formal working groups between CBS and BOI staff on statistics of financial corporations; formal groups contingent on expected BOI reorganization. - A working group (Budget Department and CBS) to assess additional staff and funding needs for the CBS. - CBS prepared a detailed work program to improve coverage and timeliness of annual business surveys and update input-output tables; services surveys timing advanced to coincide with manufacturing surveys. Further work contingent on approval of additional resources. ### National Accounts Recommendations: - Record GDP at market prices in accordance with international standards by including net taxes on imports and excluding subsidies received by exporters. Authority responses and actions: - GDP at market prices including net taxes on imports and excluding other revenue components received by exporters is currently published as additional information; beginning July 2006 this series in current and constant prices will be published as the main aggregate of Israel’s national accounts. Change announced at the press conference on January 1, 2006. - Integration of supply and use tables has been implemented "as far as possible"; surveys on intermediate consumption pending. Remaining difference between total supply and total use is 0.3 percent of total supply in year 2000. - Planned inclusion of adjustments from supply and use tables in the coming annual revision of national accounts; further surveys on intermediate consumption needed for full adjustment, contingent on resources. ### Consumer and Producer Price Indices Recommendations: - Consider earlier dissemination of the CPI and separate it from the WPI to better serve users in an inflation-targeting environment and to strengthen integration of input and output producer prices and give more prominence to the PPI. More resources needed for PPI. - Update WPI weights more frequently and provide additional metadata on index construction (weights derivation, sampling of establishments and products). - Conduct research on appropriateness of imputed prices for industries with high product-model turnover and unique-project products; investigate uncontrolled quality characteristics in the rental index for CPI housing component. Authority responses and actions: - CBS submitted a document to MOF on options to advance CPI release, including possible change in publication date or producing a flash estimate at beginning of month. CBS currently views separation of CPI and PPI publication as undesirable given indexation uses; additional resources required to integrate producer indices and increase PPI prominence. - WPI weights updated in January 2006 based on reference period average 2005; PPI program redesign planned to allow more frequent updating (once every five years) and include additional metadata. - CBS agrees on need for research on imputed prices and rental index quality characteristics; progress depends on approval of additional resources. Public advisory committees inform research priorities; CBS currently has minimal resources for research and development in this area. ### Government Finance Statistics Recommendations: - CBS to establish and lead interagency working group to identify deficiencies in government finance source data, propose recommendations and an action plan, and coordinate to improve coverage, classification, and recording for all central government units in line with GFSM 2001 migration. - Validate and incorporate MOF “Merkava” project accrual-accounting adjustments into annual general government accounts through detailed bridge tables adopting GFSM 2001 definitions of revenue and expense, nonfinancial assets, and financial assets and liabilities. - Accelerate compilation of the financial account of general government to improve validation and consistency with nonfinancial accounts, coordinated with MOF and BOI. - Publicly disseminate time series compiled according to GFSM 2001 presentation on the CBS website supplementing the 1993 SNA-based presentation. Authority responses and actions: - Joint working group established (CBS, Accountant General Department, Budget Department) to adjust state budget classification to be compatible with GFS and SNA requirements; WG to examine structural and substantive budget changes (base of recording, treatment/recording of transactions, detailing, current vs. capital distinction, imputed transactions, intragovernmental transactions, government financing data). - Implementation of the “Merkava” computerized accounting system is gradual; bridge tables between budget detail and required GFS/SNA data will be structured prior to full implementation, allowing for future improvements including accrual recording. - Compiling financial accounts of General Government is in the CBS work plan for 2006; work to proceed in stages starting with budgetary Central Government and local authorities, then public NPIs. For NPIs, additional data collection in NPI surveys, analysis of financial reports, and development of extrapolation/interpolation methods planned. Collaboration with MOF and BOI being developed and included in joint WG work. - GFS data in IMF-based presentation scheduled to be publicized on CBS website later in the year and then annually at time of submission to IMF for inclusion in GFS Yearbook. Hebrew version of GFSM-format tables under preparation. CBS intends to consult IMF about timing and presentation modalities. ### Monetary Statistics Recommendations: - BOI statistical program should prioritize: - (a) compilation of monetary statistics in accordance with the MFSM methodology; - (b) timely provision of monetary statistics and metadata to the IMF for updating the DSBB; - (c) preparation of new Standardized Report Forms (SRFs) for submission to the IMF of monetary statistics published in International Financial Statistics; SRFs as tools to promote international standards. - Ensure new BOI Law explicitly: - (1) authorizes the central bank to compile and disseminate monetary and financial statistics; - (2) broadens BOI authority to collect data from all financial institutions (not only depository corporations) for statistical purposes; - (3) cross-references the Statistical Ordinance’s Secrecy Clause to facilitate confidential data sharing among statistical agencies. - Apply ongoing participation of BOI staff in IMF courses and seminars on monetary statistics. - Revise BOI and CBS websites and other dissemination media to post methodological notices and clear warnings; designate one comprehensive and internally consistent dataset as "monetary statistics" and label others differently. Authority responses and actions: - BOI undertaking wide-ranging review of databases and data issues; a smaller timely project to compile monetary statistics according to MFSM methodology is under way, focusing on constructing bridge tables and resolving commercial banks’ balance sheets issues. Collection of additional sectoral data awaits larger review and inclusion in joint WG. - Timeliness issues reportedly resolved. - SRF preparation included in the smaller project; BOI agrees SRFs promote international standards and undertakes to meet standards as agreed with the mission. BOI also notes: - (1) data dissemination standards for monetary statistics should be more closely related to monetary policy and the country’s monetary framework; - (2) while IMF has promoted inflation targeting, MFSM methodology may not be the most useful framework for compiling monetary policy indicators under an IT framework; - (3) IMF should consider a flexible standard for dissemination of newly defined monetary statistics with modalities depending on monetary regime. Until any revision, BOI recognizes importance of adhering to existing standards and proposes inclusion of new market-derived monetary policy indicators as discussed with the mission. - BOI committed to include authorization and expanded data-collection powers in the new BOI Law text under preparation and to cross-reference secrecy provisions to facilitate data sharing. - BOI and CBS websites and dissemination media to be revised to improve clarity; recommendation to designate one comprehensive dataset as "monetary statistics" and adopt other names for other datasets noted. *International Monetary Fund — Report on the Observance of Standards and Codes (ROSC)—Data Module; Response by the Authorities; March 13, 2006.* ### references the Statistical Ordinance’s Secrecy Clause to facilitate sharing of confidential ### _cr06125 - references the Statistical Ordinance’s Secrecy Clause to facilitate sharing of confidential ### BOI law, data collection mandate, and capacity building - The new BOI law under preparation: - "does meet points (1) and (2) above, with clear authorization to the BOI to collect data from all financial institutions and compile and disseminate monetary and financial statistics." - "The issue of cross-referencing is under consideration in the preparation of a somewhat revised version of the new law that is expected to enter the legislative process at an appropriate time following general elections later this month and, most likely, the formation of a new government." - Capacity building: - Recommendation: "Apply, on an ongoing basis, for the participation of BOI staff in the courses and seminars on monetary statistics offered by the IMF." - Status: "In process." ### Dissemination, websites, and dataset clarity - Recommendation to revise dissemination media: - "Revise the design of the BOI and CBS websites, as well as other dissemination media, including the posting and publication of methodological notices and clear warnings." - Purpose: "help users access monetary statistics easily and prevent any confusion on which the dataset better meets their needs." - Specific guidance: "designate only one comprehensive and internally consistent dataset as 'monetary statistics' and adopt other names for the other datasets." - BOI response: - "These issues will be addressed within the comprehensive reform of data issues referred to above." - "A positive recommendation to adopt the IMF requirement regarding names of datasets will be made in the context of this reform and it will also be recommended to clearly indicate which data are used as measures of monetary expansion or contraction in policy formulation and which are best used for other purposes, such as analysis of financial stability." - CBS response: - "The work on coordination and cooperation of dissemination of statistics by the three institutions, mentioned under cross-cutting recommendations, will include a revision of the design of the CBS and BOI websites and other dissemination media to facilitate access of users to monetary statistics." ### Document identification and scope - Document title and authorities: - "INTERNATIONAL MONETARY FUND — ISRAEL — Detailed Assessments Using the Data Quality Assessment Framework (DQAF)" - "Prepared by the Statistics Department" - "Approved by Michael C. Deppler and William E. Alexander" - Date: "March 13, 2006" - Purpose: "This document contains a detailed assessment by dataset of the elements and indicators that underlie the data quality dimensions discussed in Israel’s Report on the Observance of Standards and Codes (ROSC)—Data Module. It also includes as appendices a summary of the Special Data Dissemination Standard (SDDS), the generic framework of the Data Quality Assessment Framework (DQAF), and the results of the users’ survey." ### Legal and institutional environment — CBS mandates and authorities - Statutory basis: - All CBS statistics "are governed by the Statistics Ordinance [New Version], 5732-1972, last amended in 1978." - The Statistics Ordinance (Article 3) assigns responsibility and authority to the CBS for: - "performing and publishing the results of statistical acts as to the population and its social, health, economic, commercial, industrial, and other activities and as to the physical conditions of the country;" - "cooperating with state agencies in performing statistical acts and publishing their results;" - "preparing, in consultation with the Public Council for Statistics, multi-annual general schemes for the statistical acts of state agencies;" - "prescribing, in consultation with the Public Council for Statistics and the agencies concerned, uniform statistical classifications for the use of government agencies;" - "assembling and publishing information on statistical acts that are performed or planned by or for the bureau or state agencies." - Institutional position: - "The Statistics Ordinance mandates the CBS as an independent authority under the administrative supervision of the Prime Minister, thus requiring ministerial approval for decisions on organizational structure, legal matters with regard to personnel, and finance." - The Government Statistician is appointed by the government under the recommendation of the Prime Minister and is empowered to: - "guide the statistical apparatus of the state agencies;" - "set the requirement for statistical surveys and statistical use of administrative files, including compliance with specific legal bases;" - "ensure arrangements for the compilation of official statistics; and" - "enforce the obligation to provide information and protect statistical confidentiality." - Principles governing CBS work: - Must adhere to "neutrality, objectivity, and scientific independence." - Article 8 of the Basic Law: Human Dignity and Liberty constrains data collection: "There shall be no violation of rights under this Basic Law except by a law befitting the values of the State of Israel, enacted for a proper purpose, and to an extent no greater than is required." - CBS Code of Ethics paragraph 4.1: "(a) The CBS shall collect only that information that is relevant to the purposes of the statistical activity that it is carrying out; (b) In cases in which the statistical activity could possibly invade privacy, the CBS shall act in order that this invasion of privacy does not exceed the minimum necessary." ### Coordination and data sharing framework - Legal framework for cooperation: - Article 3(2): CBS function "to cooperate with State agencies in performing statistical acts and publishing their results." - Article 4: Public Council for Statistics — advises Prime Minister and Statistician; receives and reviews state agencies' schemes; "making proposals for developing and rendering more efficient statistical acts of state agencies." - Article 5: Mandates consultation when state agencies perform statistical acts addressing the public; censuses require advance permission from the Prime Minister. - Access to administrative records: - Article 15: Empowers CBS to access records of the State, local authorities, and others for statistical completion or correction; practical implementation requires coordination on content, format, cost, and delivery. - Article 15A: Empowers CBS to access information that is otherwise secret, with the requirement to keep it secret "in the same manner the law requires it be kept secret by the state agency providing it." - Exceptions: Article 15A(b) — does not apply to information "the delivery of which, in the opinion of the Minister of Finance, may injure the economic system of the State or, in the opinion of the governor of the Bank of Israel (BOI), may injure the financial institutions of the State." - Joint statistical activity and disclosure: - Article 18A provides guidance on joint statistical activity and the sharing of data collected under that article. - Practical coordination: CBS "coordinates closely, including through regular meetings, with other data-producing agencies, such as the BOI and various government ministries" to ensure understanding of data requirements, avoid duplication, and minimize response burden. - Administrative data are used extensively by CBS in "education, health, finance, and tax, as well as statistics regarding aspects of the labor market." - Data sharing limitations: - "In general, there is no data sharing between the CBS and other state agencies or others. The strict confidentiality requirements imposed on the CBS by the Statistics Ordinance lead to a one-way flow of identified or identifiable data." - Exception (Article 18A(a)): where the Bureau collects statistics "in cooperation with, or as an agent of, any State agency authorized under law to require the same, it may, notwithstanding anything provided in this Ordinance, disclose them to that agency so long as it is indicated in a conspicuous position on the document by which they are requested that they are collected by the Bureau as aforesaid and the person from whom they are collected has been advised of such fact." - Additional clause for agencies not authorized under law: disclosure allowed if the document indicates "the provisions of the Ordinance concerning the duty to deliver particulars do not apply and the person from whom the particulars are collected has been advised of such fact." ### Confidentiality of individual reporters’ data - Principle and legal basis: - "The confidentiality of individual data is seen by the CBS as much more than a legal obligation; the statistical system depends on being trusted and accepted by the citizens, especially to ensure high-quality responses to statistical enquiries." - Article 17 on "Secrecy" of the Statistics Ordinance "strictly protects confidentiality." - CBS practices: - The report underscores the CBS view that individual reporters’ data "are to be kept confidential and used for statistical purposes only." *Prepared by the Statistics Department; Approved by Michael C. Deppler and William E. Alexander; March 13, 2006.* ### 1. No individual return, and no part of an individual return made, and no answer to any ### 1. No individual return, and no part of an individual return made, and no answer to any ### Legal and confidentiality framework - No individual return, no part of an individual return, and no answer to any question given for the purposes of this Ordinance shall be published except for the purposes of a prosecution under this Ordinance. - No information collected for the purposes of this Ordinance and derived from an individual return or the answer to a question, or from records or documents as referred to in section 15, shall be so published as to enable the identification of the person to whom it relates. - No person other than an employee shall see any individual return made for the purposes of this Ordinance, or any part of such a return, except for the purposes of a prosecution under this Ordinance. - Protection of confidentiality is also rooted in the Protection of Privacy Law, 5741-1981. Article 16: “No person shall disclose any data obtained by him by virtue of his functions as an employee, manager, or possessor of a database save for the purpose of carrying out his work or implementing this Law or under a court order in connection with legal proceedings. Any person, who infringes the provisions of this section, shall be liable to imprisonment for a term of five years.” - CBS Code of Ethics, paragraph 4.4: “The CBS must preserve, in accordance with the law, the confidentiality of information it receives under the Statistics Ordinance.” - CBS Code of Ethics, paragraph 4.2: “the CBS shall provide the respondent, at his or her request, information about the purpose of the statistical activity, the methods of preserving the confidentiality of the information gathered, and additional information regarding the statistical activity.” - Unauthorized disclosure by a CBS employee is criminally punishable. Pursuant to Articles 20 and 22 of the Statistics Ordinance, the penalty is imprisonment of up to three years. To date, there have been no criminal proceedings for violations of confidentiality. ### Access, anonymization, and researcher provisions - CBS provides researchers with two anonymized microdata file types under license: Public Use Files and Microdata Under Contract Files. - Some microdata are available through the CBS Research Room. - A rule of aggregation: all aggregations include data for at least three enterprises. If one enterprise is exceptionally large, more than three enterprises are aggregated. In some cases, permission from enterprises has been obtained to publish data that disclose the activity of a single enterprise. - Each method of making microdata available takes distinct measures to protect confidentiality. ### Physical and IT security measures - Central data storage with selective access operates at the CBS. - Secure deletion of files and disposal of paper and other data media (disks, CD-ROMs, hard disks, magnetic tapes, etc.) is guaranteed in accordance with data protection rules (secure-access storage until collection and shredding by a contractor). - Premises access: only possible with a service identity card (card reader) or with registration at reception. - Sensitive rooms (computing center, central data interchange points, telephone installations, data media and programming files archives, or other classified materials) are additionally monitored with access limited to specific individuals. - Individual offices are usually not locked. - IT access: registration on any IT system requires personal user identification and password, secured by cryptographic techniques. - Internal network is secured against unauthorized outside access by a redundant firewall architecture and is mostly a closed network. Internet connection and e-mail servers are not connected to internal networks used for compilation of statistics—resulting in the need for two separate computers for most staff. - Back-up systems for common servers exist. Further back-up for disasters and unusual events has been established or strengthened during various emergency periods. ### Statistical reporting mandate and respondent relations - Government Statistician empowered to determine extent of mandatory information provision. If obligation stipulated, all natural and legal persons (private and public), associations, public authorities, communities and local authorities shall be liable to reply to duly ordered questions. - Articles 11, 13, and 15 of the Statistics Ordinance make it mandatory for all respondents to provide requested information unless an exemption is obtained (Article 15A(b)). - Penalty for noncompliance: maximum 3-month prison term and/or fine of up to US$3,000. - CBS views mandatory reporting as an effective deterrent; CBS has never instituted legal proceedings for noncompliance against individuals in household surveys. Legal proceedings have been instituted against a handful of businesses over the last decade; businesses chose to comply rather than be prosecuted. - Every questionnaire indicates contact persons for assistance and contains legally required information on purpose, type, scope, obligation to provide information, reporting unit, confidentiality. Surveys cite: “The information provided in the questionnaire is intended for statistical purposes only, and shall be kept in the CBS and strict confidentiality shall be maintained. Anyone who violates this confidentiality shall be severely punished. The information shall not be published in a way that enables the respondent to be identified.” - To encourage future participation, CBS provides respondents with survey results upon request and in conformity with confidentiality guidelines. - Efforts to reduce respondent burden include: (1) restricting sample sizes and survey range/detail to essential minimum, (2) greater use of administrative registers, (3) applying rotation schemes in sample designs. ### Resources — staffing, computing, facilities, and financing - Staff: currently 771 staff in total work in the CBS, with 4 dedicated to government finance, 24 to national accounts, and 25 to price statistics. - Of the total, 155 are enumerators (under a separate budget), while the remaining 616 employees work the equivalent of 598.3 full-time employees (some staff employed part-time). - Staffing pressures: number of staff has decreased through attrition (principally retirement); hiring freeze imposed by the Prime Minister’s office has constrained recruitment of younger qualified professionals. - Existing staff deployment is insufficient for current and future needs (e.g., development of accounts and input/output tables to fulfill 1993 SNA, phased implementation of GFSM 2001, extending output and input price indices coverage). - Human resources development: significant investment despite budget constraints; most staff have advanced academic degrees in economics or statistics; many participated in IMF or Eurostat training; senior staff provide regional training; all staff participated in CBS-arranged training in programming, financial report analysis, economics, and statistics. Formal annual performance assessments institutionalized in 2005; intention to move to semiannual assessments in 2006. - Remuneration: in lower range for academics; recent private sector layoffs reduced wage differentials; some inconsistency with arrangements in wider public administration (e.g., BOI and MOF). - Computing resources: most PCs relatively old; many staff using outdated operating systems. Only a limited number of high performance computers with latest technology used. Data storage arrangements and wide area networks with high bandwidth could be strengthened. - IT budget for expenditures on material and services—excluding in-house software development and maintenance—amounts to NIS7 million per year. - Planned 2006 activities requiring additional resources: computerization of field work in household surveys, construction of a data warehouse, renewal of IT equipment and infrastructure. - Software: CBS uses SAS Version 9, Office XP, SQL, Oracle, and Adabas Databases, etc., complemented by in-house developed software. Internet technology (Sun Unix) used to a limited extent in distributed production system. - Security investments have consumed substantial resources, including disaster back-up strengthened during emergency periods. Recommendation (explicit) - Urgent action is needed to provide adequate staff to the CBS to discharge its mandate in terms of current and future work programs. - Adequate funding needs to be secured to ensure that IT resources are suitable for maximizing the efficient execution of the statistical work program. Physical facilities and financial management - CBS staff located in office building built in 1999; layout suited to efficient organization; staff generally satisfied with workplace conditions. - Budgeting planning for national statistics is based on an annual funding horizon; funding plans often changed by MOF, complicating medium- and long-term planning. - Funds are assigned by MOF with input orientation and allocated between categories (personnel, material and administrative, building investment, other investment). - Rigidities limit management’s ability to redeploy resources (e.g., away from censuses toward macroeconomic statistics) due to existing budget framework and MOF spending controls. - CBS works as subcontractor to MOF and BOI on projects (examples: development of balance sheets for financial sector (BOI); quarterly survey on capital formation (BOI); quarterly calculation of government spending in the Occupied Territories (MOF); annual OECD report on Israel’s overseas grants in aid). These projects help retain staff but their future is uncertain and may divert resources from core activities. Recommendation (explicit) - Investigate options for further streamlining responsibilities for statistical operations to free up resources to meet emerging demands for new statistics (0.2.1 and 0.2.2). ### Measures to ensure efficient use of resources and prioritization - Quarterly programs at department, division, and individual level used for planning and monitoring output targets and resource use; also used for quality assurance. - Division managers present explicit quality indicators evaluating goal achievement; quality indicators and overall performance evaluation used for dividing additional compensation on a quarterly basis. - CBS recognizes tight resource situation and has implemented measures to use resources efficiently, but resources remain insufficient for additional demands. - Need for a carefully considered and systematic multi-annual program and resource-planning scheme based on strategic goals; priorities should favor projects yielding the largest contribution to strategic goals. Recommendation (explicit) - CBS, together with BOI, MOF, and other relevant agencies, should establish working groups on standardizing statistical production (e.g., fully adopting the 1993 SNA and migrating to the IMF’s GFSM 2001 framework). The mandates and modus operandi of such working groups should be formalized to better exploit synergies in statistical processes. ### Relevance, user engagement, and quality management - Public Council for Statistics advises CBS and initiates development plans; comprises representatives of state agencies, institutions of higher education and research, public bodies, and experts. - Expert committees and statistical working parties advise CBS on specialist subjects (manufacturing, environmental, social statistics), enabling external input and feasibility clarification. - Feedback channels: seminars and meetings (e.g., national accounts data presented to NII, BOI, Ministry of Commerce, Manufacturing, and Employment); staff participation in OECD, UN/ECE, Medstat, and international working groups; staff membership in Israel Economic Association and participation in annual conferences. User surveys conducted periodically. Quality frameworks and processes - Israel adopted UN Fundamental Principles for Official Statistics and was an early subscriber to the IMF Special Data Dissemination Standard (SDDS). - CBS establishing a quality management system initially for CPI and national accounts based on European Foundation for Quality Management (EFQM). - EFQM has resulted in more efficient, transparent, and well-documented collection, validation, and compilation processes. - Improved interrelations between datasets through strengthened cooperation among national accounts, balance of payments, and foreign trade staff to ensure consistency and resolve conflicts. - Macro Economics Department prepares supply-use tables in cooperation with Business Economics Department; functions have been transferred recognizing economies of scale. - Managers held accountable for quality via annual planning cycle focused on results relative to strategic objectives. Staff training on data quality offered periodically; staff encouraged to participate in IMF and Eurostat training. Processes for monitoring quality - Quarterly planning and evaluation program is cornerstone of short-term quality monitoring; quality monitoring incorporated into employee compensation. - Methodological expertise exists in all subject-matter departments. Department of Methodology and Statistical Analysis and the recently established Chief Scientist function provide expert advice on quality and improvement strategies. Planned quality-related activities (as stated) - further adoption of the 1993 SNA and improvement of the GDP flash estimates; - preparation of input/output surveys; - development of a longitudinal survey; - further development of government finance statistics as part of the system of national accounts and in line with the GFSM 2001; - carrying out of weight revisions to update the wholesale price index (WPI) weights in 2006 and CPI weights in 2007 to comply with the Producer Price Index Manual, 2004 (PPI Manual) and Consumer Price Index Manual, 2004 (CPI Manual) recommendations; - increase in the coverage of the producer price index (PPI) to include services; - increase in the input and output price index coverage of additional industries; - improvement of the timeliness of annual surveys; and - improvement of the coverage of the rapidly expanding services industries. *Central Bureau of Statistics (CBS) — extracted content from the provided document.* ### 1. Integrity ### 1. Integrity ### 1.1 Professionalism - Legal and institutional framework: - Article 2 of the Statistics Ordinance establishes that the CBS is headed by the Government Statistician, who is appointed by the Government upon proposal of the Prime Minister. Official public notification is given in the Reshumot (Official Gazette). - The Government Statistician is authorized to direct the statistical systems in the institutions of the state and is required to act on the basis of scientific considerations. - The CBS decides independently what statistics to compile and develop, which sources to use, and what methods to apply. It also decides what the institution is to publish as official statistics and when and how this will be done, based on scientific and technical considerations and— increasingly—budget restrictions. - Staff and capacity: - Staff members with extensive professional experience are deployed at the level of directors and deputy directors. - Although staff are not necessarily recruited for their statistical skills, on-the-job training and mentoring enhance the cultivation of expertise in the respective fields of data compilation. - The CBS actively promotes professionalism through careful selection of staff, extensive staff development and training opportunities, and an active research and development program. - Staff frequently participate in international meetings. - The CBS provides staff each year with an opportunity to publish papers on research and development activities in Israeli statistics. - A promotion procedure requiring peer-reviewed professional and methodological research and analysis was introduced in recent years and has encouraged research and analysis. - Publication of working papers and methodological papers by staff has resulted in many improvements in methods applied. - Impartiality and dissemination: - Choices of sources and statistical techniques for national accounts, price statistics, and general government sector accounts are determined by availability of basic statistics and administrative records according to criteria of statistical reliability, coverage, and consistency over time. - The choice of source data and statistical techniques is primarily based on consideration of the accuracy of data. - Decisions to disseminate data are based solely on statistical considerations; no evidence exists of political interference in choice of data sources and statistical techniques. - The Statistics Ordinance (Article 3) requires that official statistics be published. - The statistical results are first published in a press release. - The CBS publishes more than 300 press releases per year—excluding the weekly update to the advance release calendar—and does not need political approval to publish statistical information. - Press release times and dissemination: - Press releases are published at 1:00 p.m. (national accounts) and at 5:00 p.m. (price statistics) in Jerusalem and disseminated to users by fax, satellite, e-mail, and on the Internet. - Price statistics, when disseminated on a Friday, are released at 1:30 p.m. - Decisions regarding timing and media are made at least four months in advance. - Regular publication dates are announced in a yearly and weekly advance release calendar. - Statistical data of top interest to journalists are announced in a press conference (about 10–20 events yearly). - Within defined preembargo access arrangements, statistics are made available to all users at the same time. In exceptional cases, ministries with specific subject-matter interests are provided with advance information at close of business on the day preceding publication. - Identified shortcoming: - While access arrangements to statistics prior to release are documented on the IMF’s Dissemination Standards Bulletin Board (DSBB), they are not documented on the CBS website. - Recommendation: - The CBS should provide documentation on the CBS website explaining preembargo data access to ministries with specific subject-matter interests. ### 1.2 Transparency - Availability of legal and procedural information: - The Statistics Ordinance, in English and Hebrew, is available to the public on the CBS website at http://www.cbs.gov.il. - Copies of the Statistics Ordinance are also available through the CBS Information Office (info@cbs.gov.il) and in the CBS library. - Information on the terms and conditions under which statistics are collected, processed, and disseminated is published annually (in Hebrew only) in the report prepared in accordance with the Freedom of Information Law, 1998, which can be found at http://www.cbs.gov.il/freeinfo06.pdf. - All publications mention contact persons, postal addresses, telephone numbers, facsimile numbers, e-mail addresses, and other relevant information. Contact details are provided for respective experts for individual statistical fields, including technical questions. - Communication on new statistics: - Journalists receive methodological information at press conferences and other events; all information for press conferences is also published on the website. - Respondent information: - When the CBS conducts surveys, it informs respondents of the general purpose of the particular survey, noting that the information received will be used for statistical purposes only. - Internal governmental pre-release access: - The CBS normally does not provide data to any external person or institution before it officially releases the data. - Preembargo access arrangements are available: internal government access to national accounts and government finance statistics is given a day before publication under strict embargo. - This is made known to the public on the IMF’s DSBB and in the CBS’s publications in Hebrew, but it is not indicated in the relevant English-language publications of the CBS. - Recommendation: - Clearly indicate terms under which the MOF and BOI may obtain access to data prior to their public dissemination in the relevant English-language publications. - Identification of products: - All CBS products can be clearly identified by the agency’s name and logo. In all statistical publications the public is informed that attribution is required. The Information Unit follows up in cases where statistics have been reproduced without attribution. - Advance notice of methodological changes: - Information on changes in methodology, source data, and statistical techniques is given to users in advance and when changes are introduced. Explanations are published on the website and in print publications. Major changes are discussed with users well in advance in dedicated seminars organized by the Information Unit. ### 1.3 Ethical standards - Legal, administrative, and ethical norms: - The Statistics Ordinance establishes a legal norm for the protection of confidentiality. - All new staff are informed of the obligation of maintaining statistical confidentiality, and they sign a declaration, in accordance with Article 10 of the Statistics Ordinance, stating they will not disclose information without authority. - Periodic training courses for new employees include the legal basis for the operations of the CBS, including confidentiality obligations. - Administrative norms are based on the Israel Civil Service Administration’s Rulebook (“TAKSHIR”), Part IV of which deals extensively with discipline and employee behavior. Relevant sections are made widely known to CBS staff. - New employees learn about the CBS work ethic and TAKSHIR particulars during training; international standards and methodological guidelines are explicitly pointed out. - Clear directives for specialized units have been discussed, adopted, and communicated by all heads of departments. - A CBS Code of Ethics was created in May 2004 and distributed to all employees; it is prominently available on the CBS Intranet and published in Hebrew in the yearly Freedom of Information Report on the CBS website. - Basis of the Code of Ethics: - The CBS Code of Ethics is based primarily on the Code of Ethics for Statisticians adopted originally by the Public Statistics Council and the Israel Statistical Association, with modifications related to the statutory status of the CBS. ### Summary of Recommendations - Urgent action is needed to provide adequate staff to the CBS to discharge its mandate in terms of current and future work programs. In addition, adequate funding needs to be secured to ensure that IT resources are suitable for maximizing the efficient execution of the statistical work program. - Investigate options for further streamlining the responsibilities for statistical operations with a view to freeing up resources to meet the emerging demands for new statistics (0.2.1 and 0.2.2). - The CBS, together with the BOI, the MOF, and other relevant agencies, should establish working groups on standardizing statistical production (e.g., fully adopting the 1993 SNA and migrating to the IMF’s GFSM 2001 framework for compiling policy-relevant fiscal data). The mandates and modus operandi of such working groups should be formalized to better exploit possible synergies in statistical processes. - The CBS should provide documentation on the CBS website explaining preembargo data access to ministries with specific subject-matter interests. - Clearly indicate terms under which the MOF and BOI may obtain access to data prior to their public dissemination in the relevant English-language publications. *Source: _cr06125 - 1. Integrity* ### 2.3 Classification/sectorization ### 2.3 Classification/sectorization ### Classification and sectorization systems used - The Israeli national accounts follow the 1993 SNA classifications for institutional units, transactions, and other flows. - Exception: government defense expenditures on assets that could be used for civilian purposes are included in general government consumption expenditures instead of fixed capital formation. - Classification systems used: - Production by economic activity: International Standard Industrial Classification of All Economic Activities, Rev. 3 (ISIC, Rev. 3). - Products: Classification of Products by Activity (CPA). - Household final consumption expenditure: Classification of Individual Consumption by Purpose (COICOP). - Functions of government: Classification of the Functions of Government (COFOG). ### Basis for recording — market prices and valuation issues - General valuation for recording flows and stocks is largely in accordance with the 1993 SNA. - Important deviation: GDP at market prices does not include net taxes on imports and includes subsidies received by exporters. - Data according to the 1993 SNA definition are disseminated, but only at current prices. - For international comparisons, data provided to international organizations are reported according to the 1993 SNA definition. - The deviation has been considered conceptually superior because import taxes on consumption durables such as cars are high in Israel; inclusion of import taxes may distort the rate of change in GDP at constant prices. - Since taxes on imports have been decreasing in recent years, the deviation is being reviewed, and, according to plans, the net taxes on imports, etc. will be included in GDP as recommended in the 1993 SNA in the near future. - Specific valuation practices: - Market output by activity is valued at basic prices. - Market output at producer prices is also available. - Estimates of output for own use are mostly valued at cost, due to lack of suitable data, even though market prices will be used if available. - Sales and excise taxes are included in the estimates of intermediate consumption. - Value-added tax (VAT) is included in the valuation of intermediate consumption, apart from the deductible part. - The deductible part of value-added taxes is excluded from the valuation of final uses. - Separate data on insurance on freight on imports are available. - Imports and exports are valued at f.o.b.; however, in the table “GDP and use of resources,” net taxes on imports and revenue components received by exporters are included in imports and exports respectively. - Foreign-currency data conversion: - Customs data and banking data on transactions in foreign currency are converted to U.S. dollars using the market exchange rate at the moment they take place. - For national accounts purposes, the aggregate monthly data in U.S. dollars are being converted to national currency, new Israeli sheqalim (NIS), using average exchange rates. - The method is currently being reviewed since at least customs data on transactions are available after conversion to NIS made at the moment they take place. - Recommendation: - Bring the recording of GDP at market prices in accordance with international standards by including net taxes on imports and excluding subsidies received by exporters. ### Recording basis — accruals - Most transactions are recorded on an accrual basis including those for general government transactions. - Owing to changes in the government accounting, which are currently being implemented by the Ministry of Finance (MOF), it may be possible to bring the recording of all government transactions in line with the 1993 SNA recommendations in the near future. - Recommendation: - The part of taxes and subsidies on products, and of other government expenditure that are still on a cash basis, should be recorded on an accrual basis. ### Grossing/netting procedures - Transactions between establishments (local kind of activity units) within the same enterprise are recorded on a gross basis, as recommended in the international guidelines. *Source: _cr06125 - 2.3 Classification/sectorization.* ### 3.1 Source data ### 3.1 Source data ### Overview of source data and scope - Available sources are broadly sufficient to prepare accurate and reliable national accounts statistics. - Some source data are scarce: prices covering services, financial statements for the construction industry, and some private personal service activities. - A survey on the composition of intermediate consumption is needed, particularly in the service industries. - Extrapolation models have been developed when recent data are lacking. - Data sources are kept under continuous review; new sources will be analyzed and, if appropriate, incorporated on the occasion of the next revision (example: new survey on imports and exports of services). - In Israel, GDP by expenditure is considered most reliable; a statistical discrepancy balances the GDP estimated from the production approach in the annual accounts. - Quarterly accounts: compiled only by expenditure until 2004; from August 2004 onward compilation is also carried out by the production approach. ### Business register - A business register in line with international recommendations was completed in 2003, including updated data this year. - The business register consolidates administrative business files (mainly VAT and National Insurance Security files). - VAT is updated monthly; employees’ data are updated two times a year; bimonthly files of new employers are added. - The business register provides annually: number of active businesses by size and economic branch, number of employees, new businesses (openings), mergers, splits, and inactive or dormant businesses (closures). - The register provides sampling frames for monthly and annual business surveys. - Since 2004, the business register has provided four new frames of business surveys (manufacturing indices, VAT revenue indices, Israeli employees’ jobs and wages, and foreign workers); one new frame is under preparation for the annual survey. - New process initiated to collect enterprise data distributed by local units (establishments) to enable statistics by local units. ### Business surveys: design, coverage, and estimation - CBS conducts annual business surveys for manufacturing, accommodation services, and all other services (exceptions: banking and insurance services, domestic services to private households, services of private teachers, sales of food/fruit/vegetables at stands and markets—data collected from other sources). - Up to 2004, samples were drawn with probability proportional to an estimated size within strata defined by industries. - From 2004 CBS redesign principles: - Annual sample stratified by industry and size levels; units drawn with equal probabilities within strata; take-all stratum exists; several samples take some strata for each industry. - Two types of update: (1) annual update reflecting frame changes during preceding year; (2) intraannual (e.g., bimonthly) update for newly created establishments. - Surveys are longitudinal with panel usually lasting about 5–7 years. - A sequential permanent random number scheme is applied each year to an updated frame to reallocate an annual-base sample to maximize overlap. - Methodology developed to modify permanent numbers of new establishments to overcome discrepancies and control overall sample size. - Presently, no sampling errors are computed for the business surveys. - CBS is developing estimation of sampling errors based on a subsample replication technique—the jackknife method. - Data from business surveys are broadly sufficiently detailed to derive national accounts aggregates, but surveys generating detailed information on composition of intermediate consumption are recommended (service industries and manufacturing; current manufacturing data based on a 1995 survey). - Administrative sources generally require more adjustments toward national accounts concepts and definitions. ### Main sources for the annual accounts — Production approach (summary of ISIC categories and main sources) - Agriculture, hunting, and forestry - Output from Annual Census of Agriculture carried out by the Ministry of Agriculture and the CBS - Intermediate consumption estimated (based on imports, domestic supply of fertilizer, etc.) - Wage data from the National Insurance Institute (NII) - Fishing - Annual Census of Agriculture - Estimation of intermediate consumption (fixed ratios) - Mining and quarrying - Annual survey of manufacturing (included mining and quarrying) - Questionnaire to establishments including financial statements - Manufacturing - See Mining and quarrying (diamonds are excluded) - Diamonds: Use data on imports and exports of diamonds by type - Electricity, gas, and water supply - Annual financial statements from the electricity company, gas - Revenue data from VAT - Estimations based on input-output tables for the last available year (water) - Intermediate consumption based on fixed ratios - Construction - Quarterly survey on construction - Intermediate consumption based on fixed ratios - Wholesale and retail trade, repair of motor vehicles, and personal and household goods - Annual survey of trade, services, transport, and communications based on financial statements - Covers all revenues and total inputs including capital formation - Hotels and restaurants - Annual survey of hotels - Guest-nights in hotels - Transport, storage, and communication - See wholesale and retail trade - Kilometers traveled by taxis and lorries, loads hauled by ships, number of passengers in Israeli airlines - Financial intermediation and insurance - Financial reports published by the Supervisor of Banks - Insurance services: financial reports prepared by the MOF - Real estate, renting, and business activities - See wholesale and retail trade - Public administration and defense; compulsory social security - General government accounts - Number of employees from the ministries and the NII’s wage files - Education, health and social work - Private services: see wholesale and retail trade - Public services: government accounts - Number of employees from the ministries and the NII’s wage files - Other community, social, and personal service activities - See wholesale and retail trade - Taxes and subsidies on products - General government accounts ### Main sources for the annual accounts — Expenditure approach (summary) - Household final consumption expenditure - Annual household expenditure survey - Commodity flow method for agricultural food products, Israeli Electric Corporation reports on electricity, fuel, hotel guest-nights, number of hospitalizations, cinema visits, imports data - Domestic sales/output of relevant industries providing households (monthly production indices) - Balance of payments regarding direct purchases in Israel by foreign residents and by Israelis abroad - Final consumption expenditure of nonprofit institutions serving households - Annual survey of nonprofit institutions serving households (NPISH), covers all NPISHs employing two or more employees - Wage data from the NII - Government final consumption expenditure - See production approach - Acquisitions less disposals of tangible fixed assets - Commodity flow method for transport equipment, machinery and other equipment - Physical data for buildings (included dwellings), based on square meters of building constructions - Monthly manufacturing survey (subsample) - Quarterly or annual reports from public institutions including general government and other major enterprises on expenditure on fixed capital - Acquisitions less disposals of intangible fixed assets - Imports of software - Customized software: fixed share of the revenues of the computer industry - Own-account produced software: estimations based on employment by type of profession - Mineral exploration: data from the Ministry of Infrastructure (energy department) - Additions to the value of nonproduced nonfinancial assets - Not included - Changes in inventories - Quantities of inventories of agricultural products, fuel, etc. - Annual survey of manufacturing - Annual survey of trade - Annual survey of transportation - Imports and exports of diamonds (monthly) - Acquisitions less disposals of valuables - Not included - Exports and imports of goods - Foreign trade statistics (customs declarations) - Exports and imports of services - Balance of payments ### Household expenditure survey (HES) - HES conducted annually since 1997 (previously every five years). - Sample drawn from municipal property tax files for local authorities and lists of households (usually in small villages). - Sample covers urban and nonurban households, except kibbutzim, collective moshavim, Bedouins living outside of localities, and residents of institutions. - Two-stage sampling: - First stage: sample of localities selected; some largest localities included with certainty. - Second stage: sample of residential dwellings drawn in each sampled locality. - Final sampling probability uniform for all dwellings. - Sampling frame updated annually. - Sample size has been approximately 7,000 households. - Response rate is close to 90 percent. - HES covers a full year; data collected over a 13-month period beginning in January of the survey year and ending in January the subsequent year. - Each sampling unit fills in a biweekly diary; sample spread across survey periods so all weeks are represented. - HES questionnaires constructed on sound design principles; HES data-processing applies comprehensive budget plausibility checks. - HES is primary source for consumption of housing services, business and personal services, and parts of products not available elsewhere — totaling approximately half of households’ consumption. - Other consumption expenditures estimated using flows of goods and services: monthly quantities of agricultural products, fish, production for own use, Israeli Electric Corporation reports, fuel companies, hotel statistics (guest nights), hospitalization days; adjusted with relevant price indices to obtain current price estimates; foreign trade data on imports of consumption goods used. - During backwards revisions, cross-checking with HES results is conducted. ### Government finance statistics and administrative data - Government finance statistics compiled each quarter covering central government operations including most extrabudgetary funds, all defense-related expenditure, local government, and NPIs mainly financed and controlled by the government. - Capital stocks of government estimated from fixed capital formation using the perpetual inventory method. - Detailed expenditure data obtained from the Accountant General, financial reports of local authorities, and a survey covering various NPIs that are part of central government. - Administrative data sources used: monthly VAT data (tax authorities), administrative data from finance/insurance/credit institutions collected by the Supervisor of Banks and BOI, customs data, and NII data. - Administrative data may deviate from national accounts concepts (examples: monthly VAT data on cash basis; taxes/social contributions/expenditure data from government administration only on cash basis). In special cases, adjustments are made; in other cases valuation adjustments are required (insurance, inventory data). - Customs authorities outsourced compilation of foreign trade statistics to a private company, requiring CBS to pay for receiving part of customs data—no extra resources allocated to CBS to finance this; sustainability of customs data as a source could become a problem. ### Price statistics - Price statistics used include CPI, PPI, and foreign trade price indices. - CPI available at very detailed level due to high inflation in many years. - PPI covers only part of industries (manufacturing); plans exist to extend coverage to service industries. - Recommendation to collect prices for output from construction. - Currently all price indices from foreign trade statistics are unit price indices; for technological products unit price indices are not recommended as they do not account for quality changes. - Price statistics generally close to national accounts needs in concepts and coverage. ### Sources for quarterly GDP and main sources assessment - Quarterly GDP estimates compiled both by expenditure and production; expenditure approach viewed as more reliable—discrepancy shown at production side. - A large number of monthly and quarterly indices support quarterly accounts and are broadly consistent with annual accounts. - Subannual surveys carried out for most industries (manufacturing, hotels and lodging, transportation). - Monthly data gathered on revenue by industries from VAT register; used for expenditure components. - Some indicators less satisfactory: output/value added for construction activities—main problem lack of output price information and use of input price indices based on 1995 input/output table structure. - Main sources table assessments (selected entries): - Agriculture, hunting, and forestry: Monthly statistics on production of agricultural goods — Good - Fishing: See agriculture — Good - Mining and quarrying: Monthly production index — Good - Manufacturing: Monthly production index — Good - Electricity, gas, and water supply: Revenue data from VAT — Good - Construction: Quarterly survey on construction — Less satisfactory - Wholesale and retail trade, repair of motor vehicles, and personal and household goods: Monthly revenue index based on VAT — Good - Hotels and restaurants: Guest-night in hotels (monthly) — Good - Transport, storage and communication: Kilometers traveled by taxis and lorries, loads hauled by ships, number of passengers in Israeli airlines (monthly) — Good - Financial intermediation: Quarterly financial statements from banks and insurance companies; VAT for other financial services — Good - Expenditure approach assessments for quarterly accounts: - Household final consumption expenditure: monthly industry output, commodity flow, guest nights, hospitalization days, transport volume indicators, monthly foreign trade, balance of payments — Satisfactory/good - Final consumption expenditure by government and NPISH: Quarterly government finance statistics; wages from NII — Good - Gross fixed capital formation: commodity flow, physical building data, monthly manufacturing subsample, quarterly public institution reports, imports of software, customized software fixed share, own-account software estimations, mineral exploration data — Satisfactory - Changes in inventories: government-held quantities, quarterly survey of manufacturing inventories, quarterly subsample, imports/exports of diamonds (monthly) — Satisfactory - Exports and imports: Customs foreign trade statistics (monthly) and balance of payments for services — Good for goods and satisfactory for services ### Ad hoc studies, institutional contacts, and staff practices - Ad hoc surveys seldom conducted, but can be used to fill gaps temporarily (example: Internet and cable-TV suppliers data collected when these were new). - CBS arranges no formal/regular meetings with business community; CBS representatives occasionally present work to business community and seek information on new developments. - Every three weeks internal seminars for national accounts staff covering reviews of international research papers. - Staff follows international activities via meetings and Internet; new international manuals posted on local network. - CBS units maintain close contact with supplying agencies; CBS staff may advise agencies on procedures for classification and data quality (example: customs data). ### Timeliness of source data and publication schedule - Publication schedule of national accounts statistics: - Quarterly national accounts: about 45 days after the reference quarter; - First annual flash estimate/projection: October of the reference year (year t); - Second annual flash estimate/projection: December, year t; - First preliminary annual accounts (based on more or less full coverage of short term indicators): March, year t+1; - Second revised preliminary annual accounts: July, year t+1; - Third revised preliminary annual accounts: July, year t+2; - Fourth revised preliminary annual accounts: July, year t+3; and - Fifth revised accounts: July, year t+4 (revisions will also take place annually after this, if necessary). - For quarterly accounts timeliness of sources is good; several indicators available monthly. - Annual manufacturing survey for a reference year available with a lag of two years and implemented in revised preliminary accounts in July of year t+3. - Survey results for service industries (trade, services, transport, and communication) available with a lag of three years and implemented in version published in July of year t+4. - Data collection and processing timetables less adequate to meet timeliness and periodicity for national accounts dissemination. - Plans exist to improve timeliness of service industry survey and recommended to improve timeliness of annual manufacturing survey. ### Key recommendations (as given) - Improve the coverage of source data: in particular, consider surveys generating detailed information on the composition of intermediate consumption in the manufacturing and service industries; extend the range of prices for compilation of constant price estimates. - Review modalities for obtaining customs data as a source in the national accounts statistics. - Consider improving the price indices for foreign trade statistics by moving away from unit price indices where appropriate. - Extend and improve the data collection for construction by collecting financial statements. - Improve the timeliness of annual business surveys, in particular for the service industries (trade, services, transport, and communication). *Source: 3.1 Source data (section text).* ### 3.2 Assessment of source data ### 3.2 Assessment of source data ### 3.2 Source data assessment — coverage, sampling and nonsampling errors - Source data (censuses, sample surveys, administrative records) are routinely assessed for coverage, sample error, response error, and nonsampling error; assessment results are monitored and made available to guide statistical processes. - Household surveys: - The accuracy of data collected through household surveys is routinely assessed. - Information on sampling errors is available on a regular basis. - Information on coverage, problems with survey operations, and nonresponse is available. - Business surveys: - Presently, no sampling errors are computed for the business surveys. - Following the redesign of the business surveys, the CBS is developing estimation of sampling errors based on a subsample replication technique — the jackknife method. - National accounts revisions: - National accounts are revised once a year. - During revisions all known data sources are analyzed for temporal consistency and consistency with other data sources. - Underreporting/misreporting will be adjusted for. - In working with supply and use tables and comparing GDP estimates obtained from different methods, CBS will analyze secondary sources for accuracy. ### 3.3 Statistical techniques — compilation and adjustments - General compilation practices: - Source data are first treated by sectoral specialists employing sound compilation practices. - Specialists investigate outliers by checking with the source rather than simply adjusting them. - Sectoral specialists compare basic data with external information on branches of industry. - The national accounts division checks information received before use and compares sources extensively for consistency (e.g., investigating plausibility of trade statistics using business surveys and VAT data). - Nonobserved economy and specific adjustments: - Estimates for the nonobserved economy are made for detailed items using various indirect indicators. - Examples of adjustments implemented: - Estimates of work and consumption of unregistered foreign workers. - Estimates of activity of start-up businesses not yet included in business surveys. - Adjustments for underreporting the value of diamond exports. - Adjustments for underreported transportation activities and various personal services. - Production approach procedures: - Estimates compiled at sufficient level of detail: output and intermediate consumption at least at the 2-digit industry level, in some cases 3-digit (manufacturing and agriculture). - Published at 1-digit level; more detail in CBS databases. - Reliance on fixed ratios is limited; only construction estimates use fixed ratios that are more than five years old. - Construction contributes less than 10 percent to GDP. - A special survey for the construction industry is planned. - Output of owner-occupied dwellings recorded as estimated rentals tenants would pay; rental information from the HES. - Data on growing crops, stock of fish, and livestock reared for food are not included as capital formation work-in-progress (1993 SNA recommendation) due to lack of suitable data; assumed of minor importance. - Work-in-progress recorded for large construction projects and for ongoing production of large equipment if not sold. - In Israeli national accounts, valuation of inventories of finished goods and goods for intermediate consumption adjusted for holding gain/losses, considering average period of holding and accounting method used by enterprises. - Perpetual inventory method used as conceptual basis for estimating consumption of fixed capital. - CBS converts to an accrual basis all expenditure on consumption by employees and some other expenditure data; taxes and subsidies on products and some government revenue data are recorded on a cash basis. - Double deflation (1993 SNA recommendation) is only partly used: - For final annual accounts, output at 3-digit level in manufacturing is deflated with an appropriate price index, normally the PPI. - Input in manufacturing is deflated with a weighted price index based on input information from the latest available input-output table. - For quarterly accounts and preliminary annual accounts, production indices for manufacturing and other volume indices are used to extrapolate value added. - In a few cases, value added at current prices is deflated directly by a general overall price index. - Volume measures of taxes and subsidies on products are estimated by extrapolating base year taxes/subsidies using volume changes for flows excluding taxes. - Output volume of trade margins estimated using base year margins; margins at current prices are being checked by various indirect methods. An indirect method has been developed and will be implemented in the near future. - Since 1998, volume changes in all aggregates are measured using annual chain indices. Earlier, a fixed base year was used and changed every five years. - Expenditure approach procedures: - Expenditure approach used to estimate GDP in Israel because expenditure data have better coverage and timeliness than production data. - Household final consumption expenditure relies partly on HES and partly on data on flow of goods and services (monthly data on quantities of agricultural products, fish, production for own use from agricultural surveys, etc.). - Gross-fixed-capital formation relies primarily on: 1. data on exports and import of goods (foreign trade statistics), 2. reports on revenues from sales of domestically produced investment goods to the domestic market, 3. physical data for dwellings and other buildings, 4. data from quarterly or annual business reports on actual expenditure on fixed capital. - Changes in inventory rely on: - quantities of inventories held by government of agricultural products, fuel, etc.; - Industry and Crafts Quarterly Survey on value of stocks held by enterprises and on imports and exports of diamonds. - Inventories of retail trade and wholesale are only measured annually and are not available until three years after the reference year; preliminary data for these inventories are obtained from the commodity flow method. - All expenditure categories are calculated at a sufficient level of detail; fixed ratios are not used in estimation of any main expenditure categories. - Specific GDP issues properly addressed: - Government final expenditure excludes incidental sales. - Expenses of residents abroad are included in household final consumption expenditure and in imports; expenditures of nonresidents in the economy are excluded from (domestic) household final consumption expenditure and included in exports. These data are derived from the balance of payments, including biannual surveys on expenditures of tourists and a benchmark survey (1997) on expenditures of Israelis abroad extrapolated from data on days traveled, by country. - Stores of wealth in the shape of valuables are not included due to lack of data. - Volume measures and deflators: - Dedicated price indices/deflators used to deflate GDP components at least at the 1-digit level. - Household final consumption uses mainly the CPI at the 3-digit level. - Investments in machinery and equipment: for domestically produced goods CBS uses PPI at a 3-digit level; for imported machinery and equipment uses an import price index for capital goods. - Household consumption implicit deflator is consistent with the CPI, though not identical due to different weights in national accounts and HES. - Government final consumption expenditure derived by deflating detailed cost components of output for final use with relevant input price indices including compensation of employees. - Changes in inventories at constant prices derived after excluding holding gains and losses and adjusted to average prices for the period, taking into account accounting methods used and length of holding periods. - Quarterly techniques: - Current benchmarking technique assumes gap between indicators and actual data widens over time according to a geometric model; iterations adjust quarterly indicators to revised data, then annual indicators adjusted, then quarterly data finally adjusted to annual results. - This method compared to the Denton technique: results are quite similar, Denton yields slightly smoother adjustments. - Some computer applications have been prepared so that the Denton technique can be used in the national accounts in the future. - Quarterly compilation system derives quarterly series from seasonally unadjusted source data; series are seasonally adjusted using the X-12 Arima software, and concurrent adjustment is made. - Recommendations (statistical techniques): - Further integrate GDP by production in the national accounts. - Volume measures of GDP should be compiled using the double deflation method for all industries as recommended in 1993 SNA. - Output of agricultural work-in-progress should be compiled. ### 3.4 Assessment and validation of intermediate data and statistical outputs - Validation and cross-checks: - Data compiled from main sources are routinely checked against each other and against other independent sources. - Statistical discrepancies: - Discrepancies in intermediate data are routinely investigated and measures are taken to remove them. - Tables exist to compare various methods of aggregating GDP and to compare sources of employment. - A monthly publication presents a table for comparisons between different indicators. - CBS staff carry out annual comparisons of HES data and data on the supply of goods and services by destination. - An internal CBS committee on employment data discusses discrepancies; adjustments made after deciding which source is most reliable, consistent, and complete. - Supply and use tables: - CBS staff have prepared supply and use tables in the framework of the national accounts and will publish tables for 2000 by end-2005. - Supply tables compiled in the Business and Economy Department in cooperation with the National Accounts Division; use tables mainly prepared in the National Accounts Division. - Supply and use tables will be used on a current basis to investigate discrepancies. - For full benefit, supply and use tables should be compiled concurrently with finalization of annual national accounts based on annual surveys. - Supply and use accounts are important for estimating value added at constant prices. - Remaining issues: - Discrepancies between GDP by expenditure components and GDP by activity are investigated but only partly removed because production-side data assumed less complete than expenditure-side; remaining discrepancy explicitly shown at current prices. - Series of composite indices published by BOI and a higher education institution cover only a few components and are not considered good-enough quality to validate official GDP estimates. - CBS does not perform studies to ensure that bias in the GDP estimate is negligible and stable over time. - Recommendation: - Further integrate and take advantage of the supply and use tables in the national accounts. ### 3.5 Revision studies - Revision analyses and practices: - Data on the scale, direction, and magnitude of revisions are examined and discussed in national accounts publications. - Studies of long-term trends in revision patterns are not undertaken regularly. - Agencies outside CBS have studied revisions; the most recent one was published more than 10 years ago. - CBS is planning a new revisions study in the near future. - There are no systematic studies of sources of errors, omissions, and fluctuations of data, although such issues are examined and mentioned in publications. - Revision cycles and documentation: - Israeli national accounts’ revision cycles are annual, timing adapted to deadlines to submit material for publication in the CBS Statistical Abstract of Israel. - Following examination of revisions, findings reported to relevant data-collecting units for further improvements. - Examination of revisions has in some cases led to changes in estimation methods. - Revisions are documented by responsible persons; no systematic documentation yet in place, but a system of rules is under preparation in the framework of the European Foundation for Quality Management (EFQM). - Recommendation: - Undertake studies to identify long-term trends or systematic biases in revisions, and publicize the major findings. ### 4 Serviceability — periodicity, timeliness, consistency, revision policy - 4.1 Periodicity and timeliness: - Periodicity of national accounts is annual and quarterly, in accordance with the Special Data Dissemination Standard (SDDS) requirement. - Timeliness of quarterly national accounts exceeds SDDS: CBS publishes main quarterly aggregates in 45 days. - First annual estimate or projections of GDP for year t: - Released in October of year t (partly based on monthly/quarterly indicators and partly on trends). - Revised in December of the same year. - In March of the subsequent year the first version based on a complete dataset is released. - In July this version again will be revised, together with revisions of previous years. - The time series will be revised backwards as long as needed. - Recommendation: - The first two estimates/projections of GDP should not be called preliminary GDP but should be renamed to show status as very early projections of GDP. - Metadata for the projections should be available, covering concepts, scope, basis of recording, data sources, and statistical techniques used in compiling the GDP projections. - Point should be underlined that such projections could be subject to substantial revision. - 4.2 Consistency: - Internal consistency: - Statistical discrepancies between estimates according to production and expenditure approaches are relatively small and amount to about 1 percent of GDP (current prices). - GDP estimates at current prices, volume measures, and deflators are consistent within the “value = volume x price” framework. - All totals are sum of details, except seasonally adjusted quarterly figures which are currently derived by adjusting at every aggregate; this method to be changed so totals of seasonally adjusted figures will be sum of details. - Temporal consistency: - Fully consistent national accounts time series according to the 1993 SNA are available for 1995 onward. - Historic data according to the System of National Accounts 1968 (1968 SNA) for 1950–95 are available. - A partial break occurs in 1964 due to change in methods of household surveys. - Methodological notes identify and explain two main breaks and discontinuities in time series and their causes. - Atypical changes in economic trends usually explained in analytical text in publications but not provided in or with databases accessible to users. - Consistency with other frameworks: - Rest-of-the-world account is nearly fully consistent with the balance of payments; both compiled within the same CBS department. - Government finance statistics compiled in national accounts unit in CBS. With implementation of Government Finance Statistics Manual 2001 (GFSM 2001), national accounts data are fully consistent with government finance statistics data. - 4.3 Revision policy and practice: - Revisions schedule and transparency: - Revision cycle for provisional estimates is predetermined and follows a regular pattern. - Revisions of annual national accounts normally take place in June/July for the current and previous year based on new data. - No rule determines how far back revisions will be taken; revision policy is not stated. - Revision cycle made known to public via Internet, press releases, and press briefings. - Reasons underlying revision cycle are explained in press releases if revisions deviate from general schedule. - Short documentation of revisions included in publication of statistical series but not in database accessible to users. - Revisions outside regular cycle do not normally happen; extraordinary revisions made when important new information obtained or important errors found and are made known to the public. - Identification of preliminary/revised data: - Preliminary estimates are clearly indicated in press releases and metadata publications of the CBS, but not in databases available to users or in tables in hard-copy publications. - Recommendation: Consider indicating in tables which estimates are still provisional, i.e., expected to be subject to revision. - Studies of revisions made public: - Nature and effects of major revisions are explained in statistical publications but not in databases available to users. *Source: _cr06125 - 3.2 Assessment of source data (PDF chapter content provided).* ### 5. Accessibility ### 5. Accessibility ### 5.1 Data accessibility - Presentation and documentation - National accounts data are published clearly. The annual national accounts publication includes about 17 pages of charts and explanatory text, including definitions, concepts, sources, and methods. - The Statistical Abstract of Israel contains several pages of explanatory text and time series back to 1950, providing explanations of breaks in the time series. - A complete overview is provided on the Internet at www.cbs.gov.il. - All main national accounts series are disseminated in a seasonally adjusted format. - Analysis of current-period developments accompanies dissemination: first in press releases and afterwards in introductory text to the main annual publication. - Dissemination media and format - National accounts are disseminated in press releases; twice a year press conferences are held. - The CBS provides paper publications and electronic copies; comprehensive and detailed statistics can be accessed for free through the Internet. - PowerPoint presentations (for instance from press briefings) are added to the website. - Release scheduling and simultaneity - The CBS publishes an advance release calendar for the coming four months and keeps mainly to the preannounced release dates and time. In a very few cases the four-month release calendar has been changed, and then the change has been announced a week in advance. - A week-ahead calendar giving precise release dates is posted at the end of every week. - National accounts data are released simultaneously at 1:00 PM on the CBS website and to all interested parties by fax in a press release; copies may be obtained by the public on request from the CBS Information Office. - A few selected users (MOF, BOI, and Prime Minister's Office) have access to the results, under strict embargo, the day before the official release. At press conferences, embargos are imposed to allow simultaneous availability to the public. - Access to non-routine data - Nonpublished (but nonconfidential) data are made available on request, either for free or sometimes for a charge. - Information about availability of additional statistics is given on the website and in paper publications. Most series are freely available from the database on the website. ### 5.2 Metadata accessibility - Documentation coverage - Documentation on sources and methods is given in hard-copy publications, including the Statistical Abstract of Israel, and on the Internet. - The documentation includes information on concepts, definitions, and classifications used; it is comprehensive but not very detailed. - Major differences from international guidelines are pointed out, and limitations on data are described. - A more comprehensive description of the methodology is published in the CBS’s Current Briefing in Statistics, which is available on request for a charge. - The SDDS metadata and summary methodologies for Israel are reviewed each quarter. - Levels of detail and user orientation - A catalog of the CBS’s publications is published. On the website, information by subject gives details on how to locate data. Special-use information is currently being added on the website. ### 5.3 Assistance to users - Contact points and user support - Each CBS publication, including press releases, contains contact information: name, telephone number, and e-mail address of the person to contact. - For each dataset, queries are answered by a staff member of the relevant division, in most cases by the head of the section or a senior executive officer. - Individual queries can be directed to the CBS information units by phone or mail. Assistance to users is monitored and reviewed periodically. The number and nature of user queries is recorded and analyzed by the CBS. - The series “Statistilite” is published to raise awareness, and seminars are held at educational institutions. Access points for clients are advertised on the government website, at conferences, and in some government publications. - Catalogs, pricing, and availability - The CBS maintains a comprehensive catalog of its products and services, detailing how to obtain the product or service and its price if there is a charge. - The website indexes current and previous issues of the quarterly and annual releases of national accounts and related tabulations of longer time series, and includes information on publication prices and charging policy for supply of nonpublished data. ### Observations and recommendations (from the source) - Documentation is comprehensive but not very detailed; a more comprehensive methodology description is available for a charge. - A few users receive results under strict embargo the day before release; embargos at press conferences are imposed to allow simultaneous public availability. - Recommendation from the CPI assessment: Investigate further and disseminate relevant information on the rental index calculation used for the housing component of the CPI. *Source: _cr06125 - 5. Accessibility (IMF content unit provided).* ### 3.2 Assessment of source data ### 3.2 Assessment of source data ### Source data assessment and documentation - Source data—including censuses, sample surveys and administrative records—are routinely assessed for coverage, sample error, response error, and nonsampling error; the results of the assessments are monitored and made available to guide statistical processes. - The accuracy of the HES is routinely estimated; information on sampling errors is monitored and used to improve the efficiency and accuracy of expenditure estimates. - Information on survey operations, biases, over/undercoverage, misclassification, processing, and nonresponse is reported in survey publications. - CPI compilers completed an EFQM self-assessment that improved process control and auditing, yielding more efficient, transparent and well-documented collection, editing, validation, and compilation processes. - Documentation produced as a result of the EFQM process includes: - An Editing Guide for the CPI central office. - Data Collection Guides for CATI and CAPI staff, updated as necessary and used for staff training. ### Data collection, editing, and automated checks - Field-level logical editing is implemented during price collection via handheld-computer software. - Automated checks include checks for extreme values (value ranges) and price changes (based on item level variance estimates on price changes); records are maintained. - Automated comprehensiveness checks ensure all data from each price collector are collected; possible missing prices and item description changes are confirmed and commented on. - The software requires CAPI and CATI price collectors to provide outlet-level change information. - Validation workflow: - Field staff validate data before sending to the database; field supervisors resolve problems and make random checks. - Central office staff review transferred data for comparability or change issues and decide case-by-case consulting field staff. - Any changes made to data are flagged and explained in the editing application weekly; senior staff review all flags and explanations. - Typical number of such changes is about 50 to 100 per month. - All atypical values that are confirmed and deemed nonerror are included in the calculation. - Second-level checks: auditing by survey-division officials at the end of each data collection period (non-automated); auditors occasionally accompany collectors and collectors sometimes rotate to check collector-effects. - Field verification: 10 percent of outlets are contacted to ensure collectors visited the outlet and items marked unsold or temporarily unavailable were indeed unavailable or not sold. ### Assessment of source and intermediate data - Item-level indices are assessed against other data, such as corresponding PPI product series; example: heating fuel price data from the field are checked against government sources. - Overall assessment of source and intermediate data is described as exemplary and on par with international best practices. ### Statistical techniques and treatment of missing/quality changes (from 3.3) - HPCs and the data editing system have logical checks to minimize coding and editing errors; comments from data collector or field supervisor are required for large price changes and any changes in specifications. - The system monitors transaction-specific characteristics, e.g., time of day and day of week for certain fruit and vegetable collections. - Items from outside the compiling system undergo strict double-checking by compiling employees; messaging devices facilitate communication between compiling staff and field collectors. - Missing observations: price changes estimated based on price movements of other observations of the same item. - Permanently unavailable products are replaced in the sample with replacements matching as many quality characteristics as possible; previous-period prices for replacements are sought and overlapping is used. New items generally introduced when the market basket is updated. - Quality change treatment: - Item specifications are marked with an asterisk if a noncomparable replacement must be selected when unavailable. - Large quality changes: varieties are linked into the index so introduction does not affect price level. - Small quality changes: treated as price changes; explicit quality adjustments are usually not made. - Hedonic methods are evaluated but not yet implemented. - Overlap method may give biased estimates for short product-cycle goods (cars, electronic appliances, computers); research limited by resources. - Seasonal products are imputed as if missing; procedures avoid too-early reintroduction of seasonal products. For clothing and footwear a bridge method is used when seasonal items are reintroduced. - Seasonal adjustment: X-12 Arima technique applied separately for each series; the all-item index is adjusted for seasonality by weighting adjusted series for clothing and footwear, fruits and vegetables, travel abroad, and some other items. - New products introduced as they gain market share; business and professional magazines monitored to identify new products. ### Index calculation, weighting, and aggregation - Household expenditure from the HES is used for CPI weights and reflects the economic cost to the consumer at the time of purchase regardless of payment method. - For CAPI observations: an unweighted arithmetic average price over weekly prices for a month is compared to the previous month’s average for each observation. - For CATI prices: the day-weighted average of actual prices over the month is used as an individual price quote in the index calculation, when possible. - CBS calculates indices for each observation, chaining the short-term price change to the previous month’s observation index. - Aggregation: Laspeyres aggregation (or Carli if weights within a branch are unknown) of observation indices with relatively recent base period weights; current weight reference period and price reference period for the index are the same (2004). - Index base period is 2002, and weights from the 2002 and 2003 HESs are price updated to the price reference period; the aggregated index is thus equivalent to a Lowe Index. - New weights will be introduced in January 2007 based on the HESs from 2004 and 2005. Index reference will remain the same on request by users. Members of the weight revision committee are consulted about the update of the CPI basket and whether to change the base period. ### Recommendations (from the source) - Investigate the use of alternative elementary aggregate level formulas and consider changing the formula to a geometric average, as recommended by the CPI Manual. - Research alternative quality adjustment methods, such as hedonic regression analysis, their feasibility, data requirements, and effects on the subindices. Some durable goods and the housing component could probably benefit most from experimenting with other methods. ### Validation of intermediate data and statistical outputs (from 3.4) - CPI is compared with relevant PPI indices (e.g., food products, paper products). - Some items (e.g., fuel) are compared with other market data and sometimes with other countries’ statistical agencies. - Price levels checked with the Purchasing Power Parity program. - Changes are routinely checked: contributions to the overall index, large month-to-month changes, and 12-month changes are listed, sorted, and examined at all levels of aggregation. - Aggregation structure is simple and imputation methods are consistent with aggregation to avoid discrepancies. - Steps are taken to control sample and nonsample error in the HES. ### Revision studies and practices (from 3.5 and 4.3) - CBS policy: CPI results are final when first published; there are no preliminary CPI data and CPI series are not revised after first release. - CPI basket and weights are updated every two years; users are informed via Internet and press releases; revisions are approved by public committees (e.g., weight revision committee) and documented. - Studies conducted on effects of weight changes and compilation process (example: updating fruits and vegetables compiling technique resulting in replacing over-the-month prices and quantities method with average of point-in-time weekly prices with fixed weights). - Housing index: changed to the rental equivalent method in 1999; continuous comparisons made with the old method and comprehensive study conducted prior to the change. Owner-occupied housing component changed to rental equivalent from estimation of changes in housing prices; the consumption alternative cost method was not conceptually changed. - For weight revisions, several small studies/methodological notes are produced; index changes from weight revisions compared at the 3-digit level; revisions explained in Price Statistics Monthly and on the CBS website. One-time studies (e.g., alternative index number formulas) have been published. ### Serviceability: periodicity, timeliness, consistency, dissemination (from Section 4 and 5) - Periodicity: CPI compiled monthly; meets SDDS periodicity standard. - Timeliness: monthly CPI estimates are published on the 15th at 5:00 p.m. of the following month, meeting and exceeding the SDDS requirement of one month after the end of the reference period. It is feasible to publish up to 5 days earlier if needed. - Recommendation: Consider disseminating the CPI earlier and separately from the WPI and other price indices to better serve users; separate publication would facilitate more prominence for the PPI but would require additional resources. - Consistency within dataset: CPI aggregation structure is consistent from observation to branch, branch to item, and item indices to higher levels. No geographical aggregation is used. Published income quintile CPIs are separate from the overall index. - Consistency over time: fully consistent time series available only for the last few years because when new weights are introduced historical series are not reconstructed beyond two years; long time series are produced by linking old and new indices using published factors. All-item CPI series published starting with September 1951; long disaggregated series available for some groups. - Major methodological changes since 1999: owner-occupied housing services switched to rental equivalent method; old housing price index still published but CPI not compiled with old method (links used). Fruits and vegetables method changed in 1989 to average of point-in-time weekly prices with fixed weights. Users are informed about changes on the CBS website and in press releases. - CPI is consistent and used for deflation of household final consumption expenditure in the NA. - Revision policy and practice: CPI series final at first release; weight revisions every two years; revision cycle published and disseminated with documentation. - Accessibility and dissemination: - Price Statistics Monthly published on the Internet, on CD-ROM, and in limited printed copies; includes WPI and input price indices for residential building, road construction, and agriculture. - Publications include tables, charts, analysis of latest movements and main contributors. Supplemental PowerPoint presentations often provided. - Detailed estimates and time series disseminated in published tables and in an online database accessible to the public; main aggregates also disseminated seasonally adjusted. - CPI included in annual publications such as the Statistical Abstract of Israel. - Dissemination schedule: an advance release calendar for the coming four months is published; statistics released on the 15th of every month at 5:00 p.m., or at 1:30 p.m. on the previous weekday if the 15th is Saturday or a holiday. A press conference is held and explanations provided via the Internet. - Simultaneous release: data are released simultaneously to all users via Internet, fax, and press release at a press conference; a strictly enforced embargo prevents early public disclosure. - Additional data: most series freely available on the CBS website; further details available upon request (procedures and contact details published); customized tabulations provided for a fee if considerable extra work is required. *Source: _cr06125 - 3.2 Assessment of source data* ### 5.2 Metadata accessibility ### 5.2 Metadata accessibility ### 5.2.1 Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques - Up-to-date documentation on concepts, scope, classification, data sources, and methods of CPI statistics is readily available on the CBS website and in various publications. - The documentation is described as "rather comprehensive." - Major English methodology publication: Consumer Price Index, Technical Publications Series No. 60, which describes detailed procedures for the treatment of special items in the index. - Note: "Although this publication does not completely refer to the latest index, it is still valid and will serve as a good reference when staff update or publish a new users’ manual." - Methodological notes are published in the price section of Current Statistics (released by the CBS each year) and contain material on concepts, definitions, classification, data sources, compilation methods, statistical techniques, and other relevant methodological aspects and procedures. - Brief methodological descriptions are available in the Statistical Abstract of Israel (issued in September/October each year and available on the CBS website). - Major differences from international guidelines are pointed out in these documents, and any limitations on data are described. - Further methodological information is available upon request. - The SDDS metadata and summary methodologies for Israel are reviewed annually and are clearly linked to (and from) the CBS website. - References to the SDDS metadata are given in press releases and in publications. ### 5.2.2 Levels of detail adapted to intended audience - The CBS disseminates metadata at different levels of detail. - CBS is producing an update of Know the Index, a manual for the CPI’s light users; this publication includes charts and pictures explaining the main uses of the index. - More detailed metadata are available in CBS publications quoted in the summary methodologies (e.g., Statistical Abstract of Israel refers to Technical Series 60). - Information for specialized users is currently being added to the CBS website. ### 5.3 Assistance to users #### 5.3.1 Contact points for each subject field - An information center at the CBS provides service and support to users. - If necessary expertise is not available at the center in the first instance, staff transfer queries to the relevant unit. - Contact points for enquiries by mail, phone, fax, and e-mail are given in publications, press releases, and on the website. - Users may visit the CBS library. - The CBS publishes information leaflets in the series Statistilite to raise public awareness on statistics and their use. - Various seminars are held at educational institutions. - Access points are advertised on the government website, in some government publications, and at conferences where the CBS often has a stand. - Individual queries can be directed to the information units at the CBS by phone or by mail. - Assistance to users is monitored and reviewed periodically; the number and nature of user queries is recorded and analyzed. #### 5.3.2 Catalogs of publications, documents, and other services (including charges) - An annual catalog is published and updated on a current basis on the CBS website. - The catalog gives information on how to obtain products and services and the price for each item. - A listing of publications is available in all major publications. - The website provides information on how to locate data by subject. ### Table 3: Data Quality Assessment Framework (summary for CPI) - The text includes a Data Quality Assessment Framework (July 2003) summary table for the Consumer Price Index (Compiling Agency: CBS) with a key to symbols: NA = Not Applicable; O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; SDDS = Complies with SDDS Criteria. - Selected assessment notes from the table: - 0.2 Resources: marked LO with comment "Additional resources are necessary to improve statistical adjustment methods and engage in research of alternative methods and data sources." - 3.3 Statistical techniques: marked LO with comment "Investigate alternative formulas for the elementary aggregate. Alternative quality adjustment methods should be investigated." *Source: _cr06125 - 5.2 Metadata accessibility* ### 3.1 Source data ### 3.1 Source data ### 3.1.1 Coverage, collection, and sample design for price source data - Price data collection is comprehensive for industries within the scope of the WPI; monthly prices are collected through an adequate and well-organized process. - Producer Price Index coverage and sample: - 4,200 transaction prices for more than 1,800 types of products collected from some 800 establishments. - For most industrial activities, the price survey coverage is more than 80 percent of total sales. - For some industries, the coverage is full; for less concentrated industries, price survey coverage of establishments is lower. - Of total manufacturing, the largest 2.7 percent of establishments covers 67.5 percent of the total sales revenue. - Establishment selection and sample maintenance: - Most large establishments are included; the sample of enterprises is kept under continuous review; new enterprises replace old as establishments drop out. - Implicit use of cut-off sampling methods combined with judgmental selection of representative small and medium establishments at the first stage. - Once an establishment is selected it is usually not dropped in subsequent resampling; this approach seeks maximum representative coverage with a minimum number of units, reflecting resource constraints. - The CBS does include small- and medium-sized establishments in the sample, but the selection process is not in line with international standards. - Practice may result in a misrepresentative sample in industries with many new entrants if establishments in the sample remain constant; in some cases product coverage considerations may dictate adding small units to the sample. - Price recording and specification: - Sampled product headings, establishments, and varieties, as well as periodic prices, follow well-considered designs. - For the most part, prices recorded are specified transaction prices for matched varieties so prices of like are compared with like. - Validation and stakeholder engagement: - Newspapers and magazines are monitored daily for price, weight distribution, and industry-specific information; these data are used in validation. - Periodic meetings with producers and associations are held to discuss developments and derive product-level weights. - CBS staff visit most firms in price collections to discuss market situation, raw materials, production, regulatory environment, product selection, and price definition policy. - International standards and methodological developments: - International standards are monitored; geometric means have been considered for low-level indices for service PPIs under development. - Consideration has been given to stage-of-processing indices, but current resources make this difficult. - Recommendation: - The selection of small- and mid-sized establishments could benefit, both in accuracy and in reduced respondent burden (but with increased costs for the CBS), from the introduction of scientific sampling methods and/or use of sample rotation for some activities where the number of these establishments is large. Also, for the accuracy of the industry index coverage, rough estimates could be derived. ### 3.1.1 Weights: sources, timeliness, and adequacy - Aggregate weight construction: - Aggregate level weights for the current index (base year and weight base period of 1994) were derived from annual summaries of the monthly survey of manufacturing indices for 1993/94 and price updated to represent the year 1994. - The monthly survey follows methodology of the annual surveys with attention to sample, survey design, and fieldwork; the monthly survey is based on a less comprehensive questionnaire intended for short-term sales revenue changes and other information on employment and labor costs. - A more recent manufacturing survey, conducted in 2001, was available but not used for WPI weights because of the long dissemination lag (almost three years after the end of the reference year). - Sampling frame and business register: - The sample of 1993/94 monthly surveys was based on a periodically updated list of enterprises combined with administrative datasets. - Since then, a business register has been developed and is being updated on a current basis; maintenance procedures include continuous addition of new units and updating of activity information. - The list of units in the register is based on the reporting of associations to the tax authorities, though efforts to locate such units are made. - The register now provides the sampling frame for the monthly manufacturing surveys, which will be used for the weight revision planned for January 2006. - Monthly survey role and limitations: - The monthly survey covers some 2,500 manufacturing establishments and serves as a reasonably good and timely source for all 2-digit and for some 3-digit level aggregate weights. - The monthly survey is not designed primarily to collect comprehensive annual data and provides less accurate, albeit more timely, source data for PPI weights. - Detailed product weights: - At detailed product and product group levels, weights are derived from special industry surveys asking establishments for main products and sales distribution; these surveys, together with industry sources, are used to derive detailed level weights and provided the initial sample basis. - Excluding noted shortcomings, source data are generally sufficiently detailed to derive PPIs at the 3-digit industry level and some product group levels. - Timeliness and bias concerns: - The weight data for the WPI index are outdated; the latest manufacturing survey used for current weights dates back to 1994. - The overall structure of the WPI refers to a hybrid where more aggregate indices are prone to bias from outdated weights. - Given structural changes, CBS considers it better to increase accuracy within product groups and subindustries than to rely on old data at all levels. - Recommendations: - Update the aggregate level weights according to existing plans. For future revisions, commit to a regular 2- to 5-year revision cycle taking into account the availability and timing of source data. - Take steps to speed up the editing process of annual surveys to better serve both national accounts and price index weights. ### 3.2 Assessment of source data and validation practices - Routine assessment and validation: - Similar assessment procedures are in place for CPI, WPI, and input price data collection. - CATI is the main collection method for the WPI and input price indices; automated checks identify atypical periodic responses and they are confirmed with respondents. - There is no automatic deletion process for outliers; large price changes are investigated and price changes at each CPC product level are examined for extreme, absolute, and relative values on both a 12-month and month-on-month basis. - Contribution analysis is used at higher levels to detect abnormal price changes. - CATI collection is supervised and employs random post-enumeration checks for data accuracy. - External validation sources: - World commodity prices, administrative sources, and press sources are used to validate some product prices (e.g., most metal prices, fuel, and food products are compared with world prices and reasons for world market changes are followed). - Weights assessment practices: - Surveys are rigorously planned; assessment processes consider the very skewed establishment size distribution and structure of the Israeli economy. - The monthly manufacturing survey produces annual estimates used in current and upcoming 2005 weight revisions; the survey does not give accuracy estimates for the annual figures but informs users about data limitations. ### 3.3 Statistical techniques for compilation and adjustments - Scope of published estimates: - Monthly price survey provides basis for compilation and public dissemination of some 100 3-digit product group estimates and 24 2-digit industry estimates. - Collection timing and price definition: - Collection window: prices are collected between the 20th in the current month and the 5th of the following month relating to the 20th of each month. - Except for a specific list of products, average prices are collected; the list includes products with few monthly price changes (poultry, meat, etc.) and products with controlled prices (bread, milk, fuel, etc.). - Prices collected are those received by producers “at factory gate.” Prices are net transaction prices after discounts and credits and include all taxes (also VAT). For input price indices, the VAT is excluded. - Prices in foreign currency units are converted to NIS using the average monthly exchange rate. - Imputation and handling of missing prices: - Missing prices are imputed based on the change of similar product prices, in accordance with the PPI Manual. - Permanently unavailable transactions are replaced with similar ones from the same producer; if product is no longer available at the original establishment, data from other sample establishments are sought and new establishments added if necessary. - Prices for seasonal products are imputed based on average change of the higher product group; early seasonal prices are used with caution and a bridge method is used to calculate overall seasonal product price change. - Quality change treatment: - Quality characteristics are divided into minor (quality changes considered as price changes) and significant (transactions considered too different to compare directly). - If value change from quality change cannot be explicitly determined, significant quality changes result in replacing the transaction (if permanently missing), imputing the price for the old product, or seeking the previous month price for the replacement. - Estimation of the value of quality change relies on expert judgment of the producer and PPI staff expertise. - Other explicit adjustment methods (production cost or hedonic adjustment) are not used. - New products are added when they gain market share, either via product substitutions or as completely new products; when a new product is added the observation index is linked to the upper level index and weights adjusted at the lowest aggregation level only. - Aggregation and formulas: - Gross sales are used for weights. - Structure in mining and manufacturing is based on a mix of industry-product structure. - Each observation is an elementary aggregate; simple price relatives for each observation are used for the observation index. - For the first aggregated level (product level), a chained Laspeyres aggregation formula is used. - Since weights are unknown for some products, the index is actually a Carli index for these; because there is no aggregation over prices and the chained Carli formula is applied for individual price relatives, no additional bias beyond Laspeyres upward bias is introduced. Use of chained Carli at the observation level also overcomes the bouncing effect. - Known methodological shortcomings: - For some industries, month-to-month pricing is difficult due to product uniqueness or long production processes; actual prices are not always used and input prices are followed instead (e.g., building of ships, boats, and aircraft uses contract pricing defined by a basket of inputs). - Use of imputation instead of explicit quality adjustment for products undergoing rapid technological change may understate effects of technical evolution. - Recommendations: - Investigate the effect of using an average of price relatives at the elementary aggregate level and consider changing the formula to a geometric average, as recommended by the PPI Manual. - Undertake more research on industries with high turnover of product models and industries where products typically result after long, unique projects. Review quality adjustment methods and consider alternative methods for different products and alternative output price measures. - Update the weight reference period according to plans. ### 3.4 Assessment and validation of intermediate data and outputs - Validation against external information: - Some product indices are validated against world commodity prices and against corresponding CPI items. - Product market condition information followed in the press is used to confirm logical changes and known reasons. - Investigation of discrepancies: - Unusual index movements from large sectoral movements are investigated and explained in monthly compilation meetings; staff explain and confirm their sector series within the price staff while ensuring individual data confidentiality. - The aggregation structure is simple and imputation methods are consistent with aggregation so discrepancies do not typically arise. - Steps are taken to control sampling and nonsampling error in the Household Expenditure Survey (HES). *Source: 3.1 Source data — Producer Price Index (extracted from the provided IMF chapter content).* ### 3.5 Revision studies ### 3.5 Revision studies ### Revision practices and findings - The CBS policy is that the WPI and input price indices are final when first published. - The latest weight revision was carried out more than 10 years ago. - At that time the effect of weight changes was not formally studied. - The weights at the detailed level have been updated, but the outcome or the effects of these revisions have not been investigated. - Since the data are final when first published, there are no revisions to the WPI index series. - The weight revisions carried out at the product and product group level within industries are not investigated: - The reasons and source data for these changes and their effects on industry series are not studied. - The extent of product attrition over time is not studied. ### Recommendations (revision studies) - With the increased metadata on the WPI compilation, the weight revision in 2006 provides an excellent opportunity to investigate the effects of weight revision at different levels of index aggregation. - Investigate both the major index revision―as well as updates―at a more detailed level of aggregation. ### Revision policy and practice (scheduling, identification) - A WPI revision cycle of five to seven years is published on the Dissemination Standards Bulletin Board (DSBB). - The weights have not been completely revised at the aggregate level since 1995. - The weights of the input price indices have been updated within the last five years. - The WPI is final when released. Some average input prices that are also published can be revised but not the actual index. - There are no preliminary WPI or input price index data. Revised average input price data are clearly identified. - Recommendation: Commit to a regular cycle of weight revisions and publish information on the effects of the revision together with other WPI metadata. ### Consistency issues and findings - The aggregation structures of input and output indices are consistent from transaction level to the industrial activity and all-item index. - The WPI structure is hybrid: at the 2-digit level the weights refer to industrial activities while below that they refer to product groups and products. - To overcome consistency problems, each activity includes a product group “products from other activities,” and a weight for that group is estimated. - This hybrid form is considered to provide reasonable estimates for both product and industry aggregations. - Historical WPI series are not reconstructed when new weights are introduced; instead, long time series are produced linking the different indices using linking factors, which are published, between old and new series. - The previous classification was based on the old ISIC classification. For divisions that could be paired, linking factors were derived, and the old series were published with the old index for a year. - The WPI is consistent with the manufacturing output index; however, to be consistent with the 1993 SNA and the PPI Manual recommendation on price concept, valuation should be made at basic prices, and the index should be compiled according to price concept, perhaps as a separate series for users who need international standard definitions. - Recommendation: The effects of cross-industry product aggregations based strictly on industry structure should be investigated. ### Serviceability: periodicity and timeliness - Israel meets the periodicity standard of the Special Data Dissemination Standard (SDDS) because the WPI is compiled monthly. - The monthly estimates of the WPI and input price indices are published on the 15th at 5:00 p.m. of the following month, thus meeting—and indeed exceeding—the SDDS requirement of one month after the end of the reference period. - Recommendation: Consider separating the CPI from other input and output price index dissemination; group them under a family of PPIs to raise the prominence of the PPI, especially if coverage is gradually increased into service activities and the export sector. The mission understands that the latter would require additional resources. ### Accessibility and dissemination practices - The main monthly publication, Price Statistics Monthly, is published on the Internet, on CD-ROM, and in a limited number of printed copies. - The same publication disseminates CPI and input price indices for residential building, road construction, and agriculture. - Tables and charts are explained with analysis of the latest index movements and the main contributors to the index. - The publication is posted in full on the Internet; PowerPoint presentations are often added to explain the data. - Detailed estimates and time series are disseminated in published tables and in an online database accessible to the public. The main aggregates are also disseminated in seasonally adjusted format. - The WPI is presented in annual publications, such as Statistical Abstract of Israel, with accompanying text and analysis. - Dissemination media and format are adequate: WPI series are published in a press release and a publication added to the CBS website at the same time. A press conference is held, and the press release is distributed in print and electronic format. - An advance release calendar for the coming four months is published on the CBS website and as a press release. - Statistics are released on the 15th of every month at 5:00 p.m., or at 1:30 p.m. on the previous weekday if the 15th is Saturday or a holiday. - Data are released simultaneously to all users via Internet, fax, and press release accompanying a press conference. A strictly enforced embargo prevents early public disclosure. - Most series are freely available on the CBS website; further details are available upon request. Customized tabulations are provided, for a fee if they require considerable extra staff work. ### Metadata and user assistance - Brief documentation on sources and methods for the WPI is updated and given in relevant publications and on the Internet. - A 1995 publication, Updating the Wholesale Price Index, 1994 in the Monthly Bulletin of Price Statistics, 1/1995 (in Hebrew only), provides basic information on WPI methodology. - Some methodological notes are published in the prices section of Current Statistics, released by the CBS each year. - Brief methodological descriptions are also available in the Statistical Abstract of Israel, issued in September/October of each year and available on the CBS website. - Generally, easily available documentation is not very comprehensive, but details are available upon request. For input price indices, summary methodologies are published on the Internet. - The SDDS metadata and summary methodologies for Israel are reviewed regularly and are accessible on the website and in publications; references to the metadata are given in press releases. - Recommendation: Add the detail of WPI methodology on concepts, their relation to international standards, data sources, and compilation and statistical methods to the CBS website. Also, information in English could be added to the CBS website to facilitate accessibility for international users. - An information center at the CBS provides service and support to users and transfers complex queries to the relevant unit. Contact points for mail, phone, fax and e-mail are given in publications and on the website. - The CBS publishes information leaflets in the series Statistilites and holds seminars; assistance to users is monitored and reviewed periodically. An annual catalog is published and updated on the CBS website with information on products, services, and prices. ### Data quality assessment highlights (summary table points) - The WPI scope is restricted to the core mining and manufacturing activities for domestic markets. - The valuation of WPI weights should be at basic prices. - The WPI weights are outdated, and the selection process of establishments does not meet international recommendations. - Quality adjustment methods could be improved and alternative elementary aggregate formulas investigated. - No clear policy on weight revisions is followed. - Additional staff resources are necessary to improve coverage of input and output price indices and to develop alternative collection and statistical adjustment methods. *Source: _cr06125 - 3.5 Revision studies* ### 2.2 Scope ### 2.2 Scope ### Coverage and institutional scope - The CBS compiles and disseminates annual general government statistics covering: - budgetary and extrabudgetary central government, - the NII (a social security scheme), - local governments, - NPIs mainly financed and controlled by government. - The scope is consistent with the principles, definitions, and concepts of the 1993 SNA. - Public corporations and quasi-corporations (financial or nonfinancial) are excluded when considered market producers. - Imputed transactions are shown of general government units (e.g., the Ministry of Housing, Jewish Agency, and some municipalities) that provide rent subsidies through government-owned housing companies (e.g., Amidar, Amigur). These transactions: - are shown, for reference, in the expenditure side, - are netted out in the revenue side. - All material general government activities are included in the general government statistics, with data available for the various levels of government, except some detailed breakdowns of expenditure items from local government accounts. - Local government coverage includes: - 70 municipalities, - 140 local councils, - 54 regional councils, - religious councils and municipal activities of rural units without municipal status (e.g., the kibbutzim and moshavim). ### Stocks, balance sheets, and compilation projects - Stock data on financial assets for the general government sector and its subsectors are compiled but are not yet disseminated by the CBS. - The absence of disseminated financial asset stock data complicates compilation of quality data on changes in financial assets and liabilities. - The CBS has embarked on projects to compile: - Other Economic Flows of all financial assets and liabilities (Table 4.3 in GFSM 2001), - Sources and Uses of Cash (Table 4.2 in GFSM 2001). - Stock data for the general government's financial assets and liabilities are published annually and are available in comparable time series, albeit not over a long period. - Consolidated financial balance sheets (Table 7.1 in GFSM 2001) are under development and are not yet published domestically. ### Source data and reporting arrangements - Basic sources of government finance statistics: central government fiscal accounts (Ministries of Finance and Defense), municipal and local authority accounts, NPIs’ administrative data, and social security fund accounts. - Preliminary government finance statistics data, which may include estimates for smaller units’ activities, are replaced by full-coverage data as soon as possible. - The MOF provides the CBS monthly data compiled by the Accountant General of the Treasury on the budgetary central government accounts, presented to monitor budget execution rather than according to international standards. - The MOF and CBS disseminate monthly central government debt data; the scope of the debt data is broadly in line with internationally accepted standards (GFSM 1986). - Government finance statistics presented by the CBS in the context of national accounts cover all transactions of units within its scope as presented in the Statement of Government Operations (Table 4.1 in GFSM 2001). ### Classification and sectorization (summary points drawn from subsequent sections) - Institutional sectorization for general government is largely consistent with GFSM 2001, with notable exceptions: - National institutions (the Jewish Agency, the World Zionist Organization, the Jewish National Fund, and the Jewish Foundation Fund) are included in general government despite not being financed nor fully controlled by government. - Local authorities subsector includes imputation of own-account municipal services of the kibbutzim and moshavim. - A small number of NPIs that sell services at significant economic prices remain in the general government sector rather than transferred to the corporate sector. - Data are disseminated for revenue by economic type, expense by economic type and function, and main 1993 SNA financial balances such as savings and net lending and borrowing. - General government data are classified by purpose according to COFOG. - The MOF’s publicly available central government data are comprehensive but highly aggregated and do not fully conform to GFSM 2001 classification for revenue and expenditure. ### Basis for recording and valuation - All flows in the 1993 SNA–based government finance statistics accounts compiled by the CBS are recorded at the amount of cash paid or received and thus valued at purchased (market) prices, except for some special items such as own-account gross fixed capital formation where full cost valuation is used. - Transactions in foreign currency are converted to NIS using the midpoint exchange rate prevailing in the market at the moment they take place. - Outstanding government debt is recorded at nominal value; nominal values are used for loans and deposits with banks and other nontraded financial assets and liabilities. - The perpetual inventory method is used in the national accounts to estimate written-down replacement costs of fixed assets, including infrastructure assets; values are original acquisition value adjusted for price changes and geometric depreciation profiles. - Recording is done on an accrual basis to the extent possible: - Annual consolidated general government finance statistics accounts are, to the extent possible, based on accrual recording. - Consumption of fixed capital and imputed government pension contributions are estimated on an accrual basis. - A further move toward accrual accounting is expected after completion of the “Merkava” accounting system, based on IPSAS, envisaged by end 2006. - Local authorities began implementing an accrual accounting system in 2004. - Government transactions are compiled on a gross basis for revenue, expenditure, and financing, consistent with the 1993 SNA. Acquisitions and disposal of nonfinancial assets are in most cases presented net in the national accounts. ### Source data quality, timeliness, and compilation challenges - The CBS uses detailed disaggregated data from MOF (Accountant General and Budget Departments), NII, extrabudgetary funds, local authorities, and NPIs. National accounts codes are embedded in original source files; GFSM 2001 codes are embedded in government accounts compiled in the national accounts framework. - Data for the budgetary central government and the social security scheme derive from detailed accounting records; local governments’ data derive from their accounts. - A special questionnaire is used for subannual surveys (e.g., quarterly local authorities’ fixed capital formation). Questionnaires and annual financial reports supplement administrative records for extrabudgetary units and NPIs. - Government debt data are mainly derived from MOF and BOI administrative records but are incomplete (extrabudgetary operations, maturities, and short-term debt not provided), definitions vary, and timeliness is inconsistent. - Specific deficiencies in source data and procedures: - MOF budget execution reports: - Coverage: Only budgetary activity covered; extrabudgetary transactions and transactions in kind are not included. - Recording: Mainly recorded on a cash basis; some net basis recording used. - Classification: Economic classification system not consistent with internationally accepted systems; many budgetary items are heterogeneous. - Source data for extrabudgetary units and NPIs require CBS to revert to original financial reports and seek transaction clarifications. - Preliminary annual data for extrabudgetary central government units are generally provided within twelve months after the reference year and cover 80 percent of the total expenditure of this subsector; final annual data are provided between two to three years after the reference year. - Preliminary local government data for the 70 municipalities (approximately 80 percent of this subsector) are generally available within 15 to 18 months after the reference year; final data for all local authorities are provided up to two years after the reference year. - Source data for financing and debt data are available for budgetary central government within three months after the reference period; for other subsectors substantial delays may occur. - Data are often provided in hard-copy format through informal mechanisms. ### Recommendations extracted from source - The MOF should accelerate ongoing work aimed at expanding the scope of government finance statistics to include all economic stocks (nonfinancial assets and financial assets and liabilities) of the central government in order to facilitate (CBS) compilation of a full set of general government accounts on an annual (and quarterly basis) and in line with the GFSM 2001 framework. - The MOF should adopt the classification scheme for revenue, expense, nonfinancial assets, and financial assets and liabilities of the GFSM 2001 framework. - Value all flows and stocks at market prices consistent with the GFSM 2001. - The MOF, in collaboration with the CBS, should validate and incorporate the data obtained from the ongoing adjustments being made for accrual accounting, in the context of the “Merkava” project, and incorporate findings in the annual general government accounts compiled by the CBS. - The CBS should establish and lead an interagency working group to identify deficiencies in data collection programs for government finance statistics source data and propose recommendations and an action plan, as relevant, and coordinate activity. - The MOF should collaborate with the CBS—through formalized and regular contacts—to improve the coverage, classification, and recording of the data on central government units in line with international standards. - Compilers of source data, in collaboration with CBS, should improve and formalize source data provision procedures and protocols so as to improve timeliness while also reducing the need for estimations. *Source: _cr06125 - 2.2 Scope* ### 3.2 Assessment of source data ### 3.2 Assessment of source data ### Source-data assessment practices - Source data include censuses, sample surveys, and administrative records; assessed routinely for coverage, sample error, response error, and nonsampling error. - Final source data are based on audited accounts of all general government units to the greatest extent possible. - Trade-off between timeliness and accuracy is recognized and balanced: preliminary data are compiled and published as soon as reasonably complete and accurate, then replaced by revised/final data after audited accounts are produced. - Status of the data and major quality reservations are routinely identified for follow-up during compilation and dissemination. - Assessments of past years’ annual and quarterly data are made once a year, at the time the IMF’s GFS Yearbook questionnaire is compiled. - During the current year, assessments of source data are made on an ongoing basis, as necessary. ### Statistical techniques (3.3) - Use of statistical techniques is sound; material differences between preliminary and revised/final data are regularly studied and analyzed. - Procedures are in place to estimate missing data and to minimize processing errors for the general government as a whole; procedures are based on accepted statistical processes. - Discrepancies between flows and stocks (for example, net lending/borrowing approached from real and financial sides) are identified and reconciled. - Final annual data are generally collected from administrative records and do not require estimation. - For nonreporting large units, reminders are issued; for smaller NPIs outside the four main branches, last year’s reports supplemented by other sources are used to derive preliminary estimates. - Perpetual inventory method is used to estimate written-down replacement costs of fixed assets (including infrastructure) to calculate consumption of fixed capital; asset values are original acquisition values adjusted for price changes with assumptions on remaining service life and written down for accumulated consumption of fixed capital. - Imputations (e.g., imputed pension contributions) use well-established procedures and constant price data known to source data providers. - Bridge tables exist between MOF’s, NPIs’, and local authorities’ accounting systems and the CBS national accounts databases. ### Assessment and validation of intermediate data and outputs (3.4) - Macroeconomic Department staff regularly analyze source data to ensure accurate and consistent time series. - Consistency checks: government consumption and net acquisition of fixed assets; taxes and transfers between general government sectors; comparisons with banking statistics, balance of payments statistics, data on foreign assets and liabilities, and administrative register of securities. - Some coverage problems in central government, particularly the extrabudgetary sector. - Incomplete compilation of the financial account by the CBS prevents full comparison between net lending/borrowing (nonfinancial accounts) and changes in net financial assets/liabilities. - Recommendation: The CBS should accelerate ongoing work aimed at compiling the financial account of the general government so as to allow for improved validation of the data derived from the nonfinancial accounts of the consolidated general government sector. This work should be coordinated with the activities of the MOF in this area. - Extensive plausibility checks are used to ensure compliance with timing, recording, and classification; data are checked against corresponding data from NPIs, local authorities, and CBS internal units. - Time-series are monitored for out-of-trend observations; unexplained discrepancies prompt examination of processing and economic causes and discussions with source reporters and CBS compilers. ### Revision studies (3.5) - Revisions are minimal due to extensive use of accounting data even at the preliminary stage. - Revision practice for general government account statistics follows that for national accounts. - Reliability of data sources and statistical techniques used for estimates are regularly reviewed by CBS Macro Economics Department staff. - Reasons for revisions are accounted for and analyzed by staff. - The CBS plans to complete compilation of the financial account in the next few months (as noted in the source). ### Serviceability — Periodicity and timeliness (4.1) - Israel meets the periodicity standard of the SDDS: - General government operations data are published annually and recorded on an accrual basis (except taxes and transfers, and purchases of goods and services for the budgetary central government, which are partly recorded on a cash basis). - Central government operations data, on a cash basis, are published monthly. - Central government debt data are published quarterly and are distinguished between foreign and domestic and maturity and currency. - Israel meets—or exceeds—the timeliness standard of the SDDS: - General government operations data are published, as part of the national accounts, within three months after the end of the reference year. - Central government operations data (budgetary central governments) are disseminated within six business days after the end of the reference month. - Central government debt data are disseminated three months after the end of the reference quarter. ### Serviceability — Consistency (4.2) - Annual government finance statistics stock and flow data follow the standards of the 1993 SNA and therefore the GFSM 2001 and are internally consistent for most accounts. - Subannual government finance statistics are not yet implemented in the CBS. - Aggregates are consistent with components; balances are consistent with aggregates; sum of subsectors after appropriate consolidation is consistent with consolidated general government. - Weaknesses on the financial side: reconciliation between stocks and flows could be improved; transactions in financial assets and balance sheet items are not yet compiled in the CBS government finance statistics framework due to lack of satisfactory information from MOF, local governments, and NPIs. - For CGO, cash surplus/deficit equals financing; major aggregates are sums of components. Monthly, quarterly, and annual cash data follow the same national classification and recording basis; differences in sums arise from recording differences. - A detailed reconciliation of monthly data with annual data is prepared but not published. - Time series changes from methodological improvements or system changes are explained; breaks are footnoted and explained in publications and press releases. - 1993 SNA-based financial balance sheets and government financial assets and liabilities (where reported in 2003) are broadly consistent with annual monetary statistics; CBS is developing a system of financial sector balance sheets for BOI use. - Accountant General’s management information system permits reconciliation of commitments, budgetary appropriations, payments, and bank account transactions and a prepared balance sheet permits reasonable reconciliation of cash deficit with financing and changes in assets and liabilities. - Cash data on central government provided by MOF are reconcilable with national accounts sector and with monetary statistics and balance of payments. ### Revision policy and practice (4.3) - Publication pattern: initial data are preliminary and replaced by final data; revisions occur at the same time as revisions for other national accounts aggregates. - Revisions may take place with every quarterly publication for current and previous years in June/July, based on availability of new data. - Revisions to align data with 1993 SNA go back until 1995. - Modifications due to revisions are published in Current Statistics with differences explained. - Revisions policy is not explicitly stated. - Preliminary data are identified; revised data are disseminated with same level of detail as preliminary data. - Coherence between preliminary and final data is sufficient to allow preliminary data to be used with confidence for policy determination and analysis. - Revisions are explained briefly in press releases (in Hebrew) and in Current Statistics; annual explanations appear in the Statistical Abstract of Israel. - For monthly central government data provided by MOF, routine small revisions are not subject to published specific studies or analyses. ### Accessibility (5.1) - General government operations data are sourced from national accounts; no dedicated government finance statistics publication currently exists (a dedicated publication is under preparation). - General government summary tables published in the Statistical Abstract of Israel; CBS national accounts in Current Statistics include major aggregates, balancing items, more detail, and longer time series. - Subsector data and consolidations are published in both sources; presentation includes highlights and analysis. - MOF disseminates detailed central government tables with commentary monthly; tables broadly consistent with GFSM 1986 recommendations but expenditure is presented by functional classification only (no expenditure by economic classification). - Recommendation: The CBS should publicly disseminate general government finance statistics according to the presentation outlined in the GFSM 2001. - CBS products available in Hebrew and English simultaneously; national accounts releases and summary general government sector statistics are available on the CBS Internet website without charge and for a charge in hard copy. - Special electronic data services available on request through Information Units (charges where relevant). - CBS publishes annual figures compiled in accordance with 1993 SNA and annual data on consolidated general government according to GFSM 2001 classification in the IMF’s GFS Yearbook. - Monthly, quarterly, and annual CGO data releases are posted on the MOF’s website; time series and detailed breakdowns available on request in paper or electronic formats. - MOF publishes quarterly and annual budgetary central government debt on its website. - Annual publications in the NII and local governments exist within national financial statements. - Recommendation: Supplement the 1993 SNA-based presentation through government finance statistics time series for the consolidated general government according to the presentation prescribed in the GFSM 2001 in publications and on the CBS website. - Statistics are released on a preannounced schedule; a calendar covering the next four months is published on the CBS website and updated routinely. - CBS press releases provide weekly updates to the publication calendar. - Statistics are released simultaneously to all users at a preannounced date and time, subject to preembargo arrangements; Internet is main channel and statistics are released at 1:00 p.m. - BOI and MOF may receive data before publication to prepare internal statements; press does not receive information prior to dissemination. - Nonpublished but nonconfidential data are made available on request for free or sometimes for a charge; availability, terms, and conditions are published on the CBS website. *Source: _cr06125 - 3.2 Assessment of source data* ### 5.2 Metadata accessibility ### 5.2 Metadata accessibility ### 5.2.1 Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques is available, and differences from internationally accepted standards, guidelines, or good practices are annotated - Published methodological sources: - Annual national accounts section of the Current Statistics (CBS), released in December each year: contains material on concepts, definitions, classifications, data sources, compilation methods, statistical techniques, and other methodological aspects and procedures. - Statistical Abstract of Israel (CBS), issued in September/October each year and available on the CBS website. - Further methodological information available upon request. - Summary methodology for the fiscal sector data posted on the Dissemination Standards Bulletin Board (DSBB) is reviewed and updated regularly; differences from internationally accepted standards (GFSM 2001) are annotated. - Gaps and user issues: - Very limited documentation on concepts, sources, and methods is provided with tables published by the Ministry of Finance (MOF), although commentary on developments is included in the annual budget publication. - Users may have difficulties linking MOF central government finance tables with similar CBS tables on the CBS website. - Recommendation: - The CBS should prepare documentation explaining the concepts, scope, classifications, basis of recording, data sources, and statistical techniques used in compiling the annual general government accounts, as well as differences from internationally accepted standards and guidelines, to guide future development work (in parallel with recommendations under 5.1.1 and 5.1.2). ### 5.2.2 Levels of detail are adapted to the needs of the intended audience - CBS publications: - Descriptions under National Accounts for each quarter and in Current Statistics on the CBS website are intended to be thorough enough for users to assess strengths and weaknesses of the general government accounts and to provide transparent information to a wide variety of users. - MOF releases: - The level of detail in the MOF’s monthly releases appears to meet the needs of most users. ### 5.3 Assistance to users #### 5.3.1 Contact points for each subject field are publicized - CBS practices: - Each CBS publication, including press releases, contains contact information (name, telephone number, and e-mail address) for further information. - For each dataset, queries are answered by a staff member of the relevant division—typically the head of the section or a senior executive officer. - Individual queries can also be directed to CBS information units by phone or mail. - Assistance to users is monitored and reviewed periodically; the number and nature of user queries is recorded and analyzed by the CBS. - MOF practices: - Information on contact persons for central government operations and debt is published by the MOF. #### 5.3.2 Catalogs of publications, documents, and other services, including information on any charges, are widely available - CBS catalog and website: - The CBS maintains a comprehensive catalog of its products and services, detailing how to obtain the product or service and its price if there is a charge. - The CBS website indexes current and previous issues of the quarterly and annual releases of national accounts, including general government accounts, and related tabulations of longer time series. - The website includes information on publication prices and charging policy for obtaining nonpublished data. *Italic: Source: _cr06125 - 5.2 Metadata accessibility (IMF staff report content).* ### 1.2 Transparency ### 1.2 Transparency ### 1.2.1 Terms and conditions for statistics collection, processing, and dissemination - Responsibility for collecting source data is set forth in the BOI Law and subsequent bank supervision regulations. - The BOI Law is posted on the BOI website. - The BOI Law does not explicitly mention monetary statistics as an area of responsibility of the central bank. - There is no clear and specific public information prepared by the BOI explaining: - why monetary statistics should be compiled; - the conditions under which they are compiled (independence, confidentiality of individual data, approval process); - actual practices governing dissemination (statistical secret, available media, timeliness, assistance to users). Recommendations: - Ensure that the draft BOI Law provides a clear mandate for the central bank to compile and disseminate monetary statistics. - Enhance the authority of BOI to collect data from all resident financial institutions — as defined in both the 1993 SNA and MFSM— for statistical purposes. This will permit the BOI to undertake the compilation of the financial sector survey as recommended in the MFSM. ### 1.2.2 Internal governmental access prior to release - Government officials have no access to monetary statistics prior to their release to the public. ### 1.2.3 Identification of statistical products and sources - In dissemination media other than those directly published or managed by the BOI, the source of monetary statistics is not systematically indicated (example: the CBS website has no indication that the BOI is the source of the monetary statistics). Recommendation: - The CBS and the BOI should agree to attribute the relevant data-producing agency—and whenever possible, the relevant dataset—when redisseminating statistics compiled outside the BOI. The same rule should apply internally at the department level in BOI dissemination media to streamline user requests. ### 1.2.4 Advance notice of major methodological changes - Generally, the BOI provides advance notice of changes in methodology. - Due to manpower shortages, full explanation of changes in methodology sometimes lags behind implementation. --- ### 1.3 Ethical standards ### 1.3.1 Guidelines for staff behavior - Most guidelines for BOI staff behavior are set out in: - the BOI Law; - the labor constitution covering BOI employees (the Constitution); - internal work procedures; - an information booklet for employees. - The BOI Law includes rules on prohibition of other employment (section 13), secrecy (section 65), and restrictions after retirement (section 66). - Employment positions are classified in security terms in accordance with the security rating of the information and intensity of the employee’s contact with it. - Every new employee must submit a document testifying no criminal record via a certificate of honesty issued by the police (General Secretariat, Personnel Department regulations, Administration of employees, chapter 2). - Employees must discharge duties loyally and acquire professional know-how (Constitution, section 25). - Secrecy obligations and declaration of observance of secrecy are required (BOI Law section 65, banking ordinance provision 15a, Israeli penal law). - Access to secure sites is limited to authorized employees (Information booklet, Securing information, section 3b). - Classified or sensitive documents must be shredded; non-sensitive documents collected in special receptacles (Information booklet, Securing information, section 3c). - Disciplinary actions for infringements include reprimand, suspension, or dismissal (Constitution, sections 32 and 33). - Restrictions on outside commerce and paid work apply; private work requires management permission (Constitution, section 34). --- ### Summary of Recommendations (from Transparency and Ethical sections) - Reassign responsibility for the compilation of monetary statistics unequivocally to a single unit in the BOI (e.g., research department or statistics department). Distinguish “high-frequency monetary data” (early monetary indicators for MD) from statistics compiled in accordance with international standards (designated as “monetary statistics”). - Keep staff resources commensurate with the workload of compiling and disseminating monetary statistics. - Conduct surveys on needs of monetary statistics users outside the BOI or hold meetings periodically (for instance every year); analyze specific user requests to improve statistical program and dissemination formats. - Make clear that the MD compiles early monetary indicators in accordance with a national methodology for monetary policy purposes within an inflation-targeting framework. - Establish a designated unit in the BOI for compiling official Israeli monetary statistics in accordance with internationally accepted standards, staffed with professional skills: economics, statistics, accounting, and database management. - Encourage monetary statistics compilers to participate in IMF courses or seminars on monetary statistics; consider participation of staff in BOI departments that provide source data. - Governor and other BOI spokespersons should proactively discuss erroneous interpretations and clarify BOI’s role in compilation and dissemination of high-quality monetary statistics. - Ensure the draft BOI Law provides a clear mandate for the central bank to compile and disseminate monetary statistics. - Enhance BOI authority to collect data from all resident financial institutions — as defined in both the 1993 SNA and MFSM— to enable compilation of the MFSM-recommended financial sector survey. - CBS and BOI should agree to attribute the relevant data-producing agency—and whenever possible, the relevant dataset—when redistributing statistics compiled outside the BOI and apply the same rule internally within BOI dissemination media. --- ### 2. Methodological soundness — Key points ### 2.1 Concepts and definitions - The overall structure of Israeli monetary statistics does not follow concepts and definitions set out in the MFSM. - Monetary statistics do not follow the Guide on Money and Banking Statistics Published in International Financial Statistics. - Monetary statistics compilers in the BOI are not aware of MFSM terminology for generic names of financial institutions, sectors/subsectors, and classes of financial assets. - Monetary statistics are not systematically prepared as comprehensive and balanced balance sheets and surveys, aggregated or consolidated (e.g., no survey of depository corporations similar to MFSM). ### 2.2 Scope - Scope covers the BOI (central bank) and commercial banks (other depository corporations), broadly consistent with MFSM methodology. - Offshore banks located in national territory are not currently in scope, whereas MFSM recommends their inclusion. - Possible extension of scope to developing money market mutual funds has not been examined. - Data on other financial intermediaries are provided to BOI by the MOF but are not used to compile a financial sector survey per MFSM. - One credit aggregate includes credits obtained by resident nonfinancial corporations from nonresident banks; MFSM recommends coverage be strictly limited to positions of resident financial institutions. ### 2.3 Classification/sectorization - Financial assets are not classified according to MFSM; main classification is by type of indexation. - Monetary aggregates lack MFSM-recommended sector breakdowns; central government is not singled out but kept within general government. Recommendations: - Improve source data to meet MFSM classification/sectorization systems. - Include in BOI statistical program, as highest priority, a project for (1) compilation of comprehensive monetary statistics in accordance with MFSM and (2) use of the new standardized report forms (SRFs) designed by STA for submission to the IMF. SRFs are consistent with MFSM principles. ### 2.4 Basis for recording - Stocks are valued at market prices when applicable; fair value adopted for nontraded financial assets similar to negotiable assets. - BOI and commercial banks use accrual accounting; accrued interests are recorded under separate accounts. In monetary statistics, accrued interests are not broken down with their underlying instrument, contrary to MFSM recommendation. - BOI and commercial banks record most transactions on a gross basis; no netting of liabilities and claims on same entity. - On balance sheets, loans are reported net of specific loan loss provisions, whereas MFSM recommends gross loans. Reports to MD on credit include specific loan loss provisions. --- ### 3. Accuracy and reliability — Key points ### 3.1 Source data - Source data for monetary statistics are collected from all depository corporations every month (balance sheets to the BSD) and on a daily basis (liquidity reports to the MD). - Collection of source data on other financial institutions is comprehensive as regards their financial assets. - Accounting records used do not contain sufficient details to classify data by financial instrument and economic sectors as defined in the MFSM. - Developments in the financial sector are carefully monitored by the MD and BSD; data sources and collection are revised as needed. ### 3.1.2 Approximation to required definitions and standards - Resident financial institutions apply more current international accounting standards for their balance sheets or other reports to the BOI. ### 3.1.3 Timeliness of source data - Source data are generally timely enough to allow dissemination of monetary statistics in conformity with Special Data Dissemination Standard (SDDS) requirements. ### 3.2 Assessment of source data - Accuracy of source data reported by commercial banks is checked on an ongoing basis by the BSD. ### 3.3 Statistical techniques - Compilation does not require particular statistical techniques because source data are collected from the entire target population of financial institutions. - In the RD, some monetary statistics data series are seasonally adjusted through well-established techniques. ### 3.4 Validation of intermediate data and outputs - In the absence of comprehensive sectoral surveys, standard checks usually applied to intermediate and statistical outputs in monetary statistics cannot be undertaken (applies to validation, assessment of discrepancies, and investigation of indicators of problems). ### 3.5 Revision studies - Monetary statistics are not subject to formal revision cycles because most data are deemed final when released. --- ### 4. Serviceability — periodicity and timeliness ### 4.1 Periodicity and timeliness - Periodicity of Israeli monetary statistics components compiled by the BOI meets SDDS requirements. - Collection of source data by the MD on the central bank and “banking sector,” and compilation of monetary aggregates, are mostly daily and monthly. - Many aggregates are compiled more frequently by the MD (weekly or daily) for internal use; these high-frequency data are not disseminated to the public. Only monthly monetary statistics components are disseminated publicly. - Dissemination of monetary data on the BOI often occurs more than two weeks after the end of the reference month and does not meet the two-week SDDS requirement. - Dissemination of monetary data on the “banking sector” generally occurs within one month after the end of the reference month and meets the SDDS requirement. - Some monetary statistics are also disseminated in the government official gazette and in the CBS Monthly Bulletin. Specific dissemination examples in the CBS Monthly Bulletin (most recent posted dates in source): - the BOI monthly balance sheet (the most recent posted on the website being as of August 2005); - a quarterly aggregated balance sheet for the “banking sector” prepared by the BOI BSD (the most recent being as of September 2005, quarter 3); - a large set of data series on the means of payments and other deposits of the public with the “banking system” prepared by the MD (the most recent data being as of May 2005); - a large set of data series on the credits granted to the public by the “banking system” also prepared by the MD (the most recent being as of July 2005). *Source: _cr06125 - 1.2 Transparency* ### 4.2 Consistency ### 4.2 Consistency ### 4.2.1 Statistics are consistent within the dataset - Monetary statistics components compiled by the MD are not derived from comprehensive balance sheets prepared by depository corporations (central bank and commercial banks). - Internal consistency of components cannot be assessed through standard checks normally used for comprehensive sectoral surveys. - It is not straightforward to verify whether central bank and other depository corporations’ records for claims on, and liabilities to, are consistent with each other. - No comprehensive monetary survey is established; therefore the magnitude of “other items net” cannot be gauged. ### 4.2.2 Statistics are consistent or reconcilable over a reasonable period of time - Most monetary statistics data series are readily available from 1988 on a daily basis and on a monthly basis even earlier. - Some data series are disseminated with seasonal adjustment. - Long-term time series are annotated to indicate changes in methodology, particularly those series available in the CBS monthly bulletin. ### 4.2.3 Statistics are consistent or reconcilable with those obtained through other data sources and/or statistical frameworks - Consistency of foreign assets and foreign liabilities of other commercial banks in the monetary statistics is ensured with the corresponding data in the international investment position because the latter are directly used as source data for the monetary statistics. - The net position of the government in the monetary statistics is broadly of the same magnitude as the bank financing in the government finance statistics. - Consistency checks on foreign assets and liabilities are not carried out between monetary statistics and balance of payments statistics. --- ### 4.3 Revision policy and practice ### 4.3.1 Revisions follow a regular and transparent schedule - Monetary statistics as compiled by the MD are deemed final when published. - Only the most recent monthly data are estimates and become final the next following month. - There is no regular and permanent revision schedule or implementation of a revision policy. ### 4.3.2 Preliminary and/or revised data are clearly identified - The most recent monthly monetary indicators compiled by the MD that are estimates are clearly identified as such by an asterisk in the binder, Current Information on the Money and Capital Markets (the Binder). ### 4.3.3 Studies and analyses of revisions are made public - Monetary statistics are not subject to formal revision cycles because most data are deemed final when released. --- ### 5 Accessibility ### 5.1 Data accessibility Findings on presentation and dissemination - Monetary statistics are disseminated monthly only as numerical tables presenting time series with monthly and annual data; month-to-month and year-to-year changes are presented as percentages. - Numerical tables are not accompanied by charts, commentaries, or explanations on aggregate evolution; footnotes provide some refinements on definitions of aggregates. - Most recent data are identified with an asterisk when provisional. - Inflation Report and Annual Report include charts and commentary; in the BOI Annual Report the MD’s volume includes a monetary statistics table with a chart on main components for M2 by degree of liquidity (short-, medium-, and long-term). Dissemination media and format - High-frequency dissemination is via the loose-leaf Binder and the BOI’s website. - The Binder’s “Current Data on the Money Market” comprises four tables in both Hebrew and English: - Table A-1: Monetary and Credit Aggregates presents two money aggregates, M1 and M2, and one credit aggregate, C3. Data series begin in 1991; - Table A-2: Monetary and Credit Aggregates—Principal Components presents breakdowns of aggregates in Table A-1. Data series begin in 1991; - Table B-1: Bank of Israel Sources and their Cost presents outstanding amounts of loans granted by the BOI for refinancing commercial banks, and nominal effective interest rates weighted by amounts for each loan type. Data series begin in 1991; - Table B-2: Monetary Deposits in Bank of Israel and their Cost presents outstanding amounts of deposits held by commercial banks with the BOI, and nominal effective interest rates weighted by amounts for each deposit type. Data series begin in 1996 (the data begin from this date). - No sectoral balance sheet (central bank or other depository corporations) and no sectoral survey (central bank survey, other depository corporations survey, depository corporations survey/monetary survey) are presented in the Binder. - The Binder is available via an annual subscription fee and is updated monthly. - The BOI website’s “Series database” presents multiple time series but in a noncomprehensive manner: - In the “Monetary” section, 10 data series relate to the BOI’s balance sheet but omit outstanding amounts for “money in circulation”; SDR holdings and allocations, “other assets,” and “other liabilities” are not available. - In the “Assets and Deposits” section, 21 data series apparently cover the “banking sector” only and not BOI data; the “Money Supply” series does not include currency in circulation and the last available data for “Money Supply” are as of July 2005. - The money stock M1 is not available in the “Series Database.” - In the “Credit” section, nine data series are presented with breakdowns by main types of credit (indexed, nonindexed, directed, granted against earmarked deposits, etc.). - In the “Series Database” there is often a discrepancy between the last update indicated in data series descriptors and the actual reference period for the last available data; the actual last available data are generally more current than stated. - Recommendation: Revise the design of the BOI and CBS websites, as well as other dissemination media, including the posting and publication of methodological notices and clear warnings, to help users access monetary statistics easily and prevent any confusion on which dataset better meets their needs; especially, designate only one comprehensive and internally consistent dataset as “monetary statistics” and adopt other names for the other datasets. Release schedule, access, and special requests - No preannounced schedule for dissemination of monetary statistics is posted on the BOI’s website or advertised by the BOI domestically; such a preannounced schedule is posted on the IMF’s Dissemination Standards Bulletin Board (DSBB) and on the CBS website. - Monetary statistics are made available to all users at the same time; government officials have no access prior to public release. - Under the Israeli Freedom of Information Act, the BOI must provide data upon request. Requests come mainly from academics and bank economists; sometimes users are redirected to the BOI website or the IMF’s DSBB. - When requested data series are not routinely disseminated, customized tabulations or spreadsheets are prepared by the MD and sent to users at no cost. - The availability of additional statistics and the procedure for obtaining them are not publicized. ### 5.2 Metadata accessibility Documentation and methodological notices - A summary methodological notice on the analytical accounts of the “banking sector” is prepared by the MD and forwarded to the IMF for posting on the DSBB. - Differences from internationally accepted standards, guidelines, or good practices are not annotated in that summary methodological notice. - No methodological notice on monetary statistics is routinely disseminated to the public directly by the BOI within the country; the BOI website redirects users to the IMF’s DSBB. - The methodological notice on monetary statistics is not available in various versions adapted to different intended audiences. ### 5.3 Assistance to users Contact points and catalogs - An MD staff is indicated in the IMF’s DSBB as the contact person for the analytical accounts of the “banking sector.” No contact person is posted on the BOI website or in its hard-copy publications. - The BOI does not make available a hard-copy catalog of its publications. The BOI website offers two catalogs (Hebrew and English): - One catalog lists most BOI periodical and nonperiodical publications; documents can be downloaded and printed. - Another catalog, managed by the BOI Publications Unit, lists publications available in hard copy against a fee indicated for each publication. - The Binder is mentioned in the Hebrew version of the catalog but not in the English version; monetary statistics tables in the Binder’s “Current Data on the Money Market” are bilingual. - Subscriptions to the Binder are against a NIS 265 one-time fee, plus a NIS 190 annual fee for the monthly updates. - There are 167 subscribers, of which 27 actually pay the subscription fees; the other subscribers receive the Binder as a courtesy from the BOI. - There is no hyperlink to navigate between the two catalogs. - The BOI does not publish a monthly statistical bulletin providing comprehensive monetary statistics; only the CBS monthly bulletin provides such monetary statistics, and the BOI website does not advertise the CBS monthly bulletin. --- ### Data Quality Assessment: Key summarized findings (Table 6 excerpts) - 0.1 Legal and institutional environment: The BOI Law does not mention the responsibility for monetary statistics. Different monetary statistics datasets are compiled by the MD, RD, and CBS. (Assessment symbol: O under NA column reflected in table.) - 0.2 Resources: There is human resource shortage for monetary statistics compilation in the MD. - 0.3 Relevance: Needs of users outside the BOI are not monitored. - 0.4 Other quality management: The BOI shows insufficient awareness with regard to consistency of monetary statistics with other macroeconomic datasets or dissemination of monetary statistics. - 1.1 Professionalism: BOI staff have not attended IMF courses or seminars on monetary statistics. - 1.2 Transparency: Incomplete documentation of terms and conditions under which source data are collected and processed, and statistical outputs disseminated. Monetary statistics posted on the CBS website are not identified as produced by the BOI. Advance notice of major changes in methodology, source data, and statistical techniques is not systematic. - 2.1 Concepts and definitions: Concepts and definitions follow neither the MFSM nor the predecessor Guide (SDDS countries are expected to apply MFSM). - 2.2 Scope: Credit granted by nonresident banks to resident nonfinancial corporations is included in credit aggregates. Possible inclusion of money market mutual funds has not been examined. Data on offshore banks are not included. - 2.3 Classification/sectorization: Financial instruments classification and economic units sectorization according to internationally accepted systems are not applied. Monetary statistics are overly aggregated. - 2.4 Basis for recording: Accrual accounting is applied, but accrued interests are not reported with the underlying instrument. Loans are reported net of specific provisions for loan losses. - 3.4 Assessment and validation of intermediate data and statistical outputs: In the absence of comprehensive sectoral surveys, standard checks usually applied cannot be undertaken. - 3.5 Revision studies: Monetary statistics are not subject to formal revision cycles because most data are deemed final when released. - 4.1 Periodicity and timeliness: Timeliness often does not meet SDDS requirements, particularly for the analytical accounts of the central bank. - 4.2 Consistency: There are some inconsistencies with government finance statistics. Consistency check with balance of payments statistics has not yet been carried out. - 5.1 Data accessibility: Monetary statistics are not available as comprehensive surveys and tables that would balance assets and liabilities. There are few charts and comments. Preannounced schedule is not posted on the BOI website. - 5.2 Metadata accessibility: No methodological notice available other than on the DSBB. Methodological information is not available with different levels of details. - 5.3 Assistance to users: Contact point for monetary statistics is not publicized on BOI dissemination media. *Source: _cr06125 - 4.2 Consistency* ### 0. Prerequisites of ### 0. Prerequisites of quality ### Assurances of integrity - Principle: The principle of objectivity in the collection, processing, and dissemination of statistics is firmly adhered to. - Professionalism — Statistical policies and practices are guided by professional principles: - 1.1.1 Statistics are produced on an impartial basis. - 1.1.2 Choices of sources and statistical techniques as well as decisions about dissemination are informed solely by statistical considerations. - 1.1.3 The appropriate statistical entity is entitled to comment on erroneous interpretation and misuse of statistics. - Transparency — Statistical policies and practices are transparent: - 1.2.1 The terms and conditions under which statistics are collected, processed, and disseminated are available to the public. - 1.2.2 Internal governmental access to statistics prior to their release is publicly identified. - 1.2.3 Products of statistical agencies/units are clearly identified as such. - 1.2.4 Advance notice is given of major changes in methodology, source data, and statistical techniques. - Ethical standards — Policies and practices are guided by ethical standards: - 1.3.1 Guidelines for staff behavior are in place and are well known to the staff. ### Methodological soundness - Principle: The methodological basis for the statistics follows internationally accepted standards, guidelines, or good practices. - Concepts and definitions: - 2.1.1 The overall structure in terms of concepts and definitions follows internationally accepted standards, guidelines, or good practices. - Scope: - 2.2.1 The scope is broadly consistent with internationally accepted standards, guidelines, or good practices. - Classification/sectorization: - 2.3.1 Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices. - Basis for recording — Flows and stocks are valued and recorded according to internationally accepted standards, guidelines, or good practices: - 2.4.1 Market prices are used to value flows and stocks. - 2.4.2 Recording is done on an accrual basis. - 2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices. ### Accuracy and reliability - Principle: Source data and statistical techniques are sound and statistical outputs sufficiently portray reality. - Source data: - 3.1.1 Source data are obtained from comprehensive data collection programs that take into account country-specific conditions. - 3.1.2 Source data reasonably approximate the definitions, scope, classifications, valuation, and time of recording required. - 3.1.3 Source data are timely. - Assessment of source data: - 3.2.1 Source data—including censuses, sample surveys, and administrative records—are routinely assessed, e.g., for coverage, sample error, response error, and nonsampling error; the results of the assessments are monitored and made available to guide statistical processes. - Statistical techniques: - 3.3.1 Data compilation employs sound statistical techniques to deal with data sources. - 3.3.2 Other statistical procedures (e.g., data adjustments and transformations, and statistical analysis) employ sound statistical techniques. - Assessment and validation of intermediate data and statistical outputs: - 3.4.1 Intermediate results are validated against other information where applicable. - 3.4.2 Statistical discrepancies in intermediate data are assessed and investigated. - 3.4.3 Statistical discrepancies and other potential indicators or problems in statistical outputs are investigated. - Revision analysis: - 3.5.1 Studies and analyses of revisions are carried out routinely and used internally to inform statistical processes (see also 4.3.3). ### Serviceability - Principle: Statistics, with adequate periodicity and timeliness, are consistent and follow a predictable revisions policy. - Periodicity and timeliness: - 4.1.1 Periodicity follows dissemination standards. - 4.1.2 Timeliness follows dissemination standards. - Consistency: - 4.2.1 Statistics are consistent within the dataset. - 4.2.2 Statistics are consistent or reconcilable over a reasonable period of time. - 4.2.3 Statistics are consistent or reconcilable with those obtained through other data sources and/or statistical frameworks. - Revision policy and practice: - 4.3.1 Revisions follow a regular and transparent schedule. - 4.3.2 Preliminary and/or revised data are clearly identified. - 4.3.3 Studies and analyses of revisions are made public (see also 3.5.1). ### Accessibility - Principle: Data and metadata are easily available and assistance to users is adequate. - Data accessibility: - 5.1.1 Statistics are presented in a way that facilitates proper interpretation and meaningful comparisons (layout and clarity of text, tables, and charts). - 5.1.2 Dissemination media and format are adequate. - 5.1.3 Statistics are released on a preannounced schedule. - 5.1.4 Statistics are made available to all users at the same time. - 5.1.5 Statistics not routinely disseminated are made available upon request. - Metadata accessibility: - 5.2.1 Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques is available, and differences from internationally accepted standards, guidelines, or good practices are annotated. - 5.2.2 Levels of detail are adapted to the needs of the intended audience. - Assistance to users: - 5.3.1 Contact points for each subject field are publicized. - 5.3.2 Catalogs of publications, documents, and other services, including information on any charges, are widely available. ### Results of Israel’s Users’ Survey - Survey context: - Questionnaires sent to 40 users; 18 responses received. - Respondents included academics, banks, public and private sector analysts, and consulting companies. - Key user feedback and concerns: - Recent improvements: CBS website and timely responses to inquiries. - Areas for improvement: BOI and MOF websites and services; scope and dissemination of monetary, government tax, and expenditure data; timeliness of the CPI and other real sector data; unavailability of quality data on some service industries; large revisions in national accounts, including trade statistics. - Capacity constraints: Severe manpower and financial budget constraints at CBS; ad hoc funding arrangements are not sustainable without a longer-term solution. - Table 7 (survey distribution and responses): - Total Sent: 40 - Total Received: 18 - Government: Total Sent 10; Total Received 4 - State-owned agencies (enterprises): Total Sent 5; Total Received 1 - Banks: Total Sent 5; Total Received 4 - Other enterprises: Total Sent 5; Total Received 1 - Universities (researcher): Total Sent 10; Total Received 8 - Embassies: Total Sent 5; Total Received 0 - Media: Total Sent 0; Total Received 0 - Supervisory, regulatory institutions (stock exchange): Total Sent 0; Total Received 0 - Table 8 (selected questionnaire results; counts are “# / 18” unless otherwise indicated): - Which official statistics used regularly: - National accounts (NA): 17 - Prices: 16 - Government finance statistics (GFS): 12 - Monetary statistics (Monetary): 11 - Balance of payments (BOP): 14 - Other: 2 - Production indices: 13 - Labor market: 13 - Merchandise trade: 12 - International reserves and foreign currency liquidity: 6 - External debt: 6 - International investment position: 6 - Other: 0 - Sources of official statistics: - Official press releases and publications on macroeconomic statistics: 16 - Private sector summaries and analyses: 3 - Official policy papers: 9 - Publications from international organizations about the country: 5 - Other sources: 1 - Do you refer to official descriptions of sources and methods: - Yes: 16 - No: 2 - Purposes for use: - Analysis of current developments for short-term decision making: 14 - Analysis of trends for longer-term policy formulation?: 12 - Econometric model building and forecasting: 13 - Economic research: 13 - Comparison with economic developments in other countries: 15 - General economic background: 12 - Other: 0 - Satisfaction with coverage (by domain; Yes / No): - NA: 15 / 3 - Prices: 16 / 2 - GFS: 13 / 5 - Monetary: 10 / 8 - BOP: 14 / 4 - Other: 3 / 0 - Satisfaction with level of detail (Yes / No): - NA: 13 / 5 - Prices: 14 / 4 - GFS: 11 / 7 - Monetary: 10 / 8 - BOP: 13 / 5 - Other: 3 / 15 - Frequency of compilation satisfaction (Yes / No): - NA: 14 / 4 - Prices: 14 / 4 - GFS: 11 / 7 - Monetary: 10 / 8 - BOP: 11 / 7 - Other: 3 / 14 - Timeliness satisfaction (Yes / No): - NA: 11 / 7 - Prices: 12 / 6 - GFS: 11 / 7 - Monetary: 10 / 8 - BOP: 10 / 8 - Other: 0 / 0 - Knowledge of a publicly disseminated release calendar (Yes / No): - NA: 12 / 6 - Prices: 12 / 6 - GFS: 9 / 9 - Monetary: 10 / 8 - BOP: 11 / 7 - Other: 3 / 14 - Are statistics released on announced dates (Yes / No): - NA: 13 / 5 - Prices: 13 / 5 - GFS: 10 / 8 - Monetary: 6 / 12 - BOP: 8 / 10 - Other: 2 / 16 - Is there enough information about revisions (Yes / No): - NA: 6 / 12 - Prices: 10 / 8 - GFS: 8 / 10 - Monetary: 6 / 12 - BOP: 5 / 13 - Other: 0 / 0 - Accessibility (Can you easily access official statistics? Yes / No): - NA: 15 / 3 - Prices: 14 / 4 - GFS: 14 / 4 - Monetary: 11 / 7 - BOP: 14 / 4 - Other: 3 / 15 - Accessibility of methodological information (Yes / No): - NA: 11 / 7 - Prices: 11 / 7 - GFS: 10 / 8 - Monetary: 6 / 12 - BOP: 9 / 9 - Other: 1 / 17 - Is methodological information sufficiently clear (Yes / No): - Aggregate: 11 / 7 - How respondents access official statistics (counts): - Official releases: 5 / 13 - Hard copy publications: 6 / 12 - Data specifically requested: 9 / 9 - Official website: 18 / 0 - Other: 0 / 0 - E-mail requests: 5 / 12 - Overall methodology soundness (Yes / No): - NA: 15 / 3 - Prices: 14 / 4 - GFS: 14 / 4 - Monetary: 11 / 7 - BOP: 11 / 7 - Other: 2 / 16 - Perception of bias and accuracy (Yes / No): - NA: 13 / 5 - Prices: 12 / 6 - GFS: 11 / 7 - Monetary: 10 / 8 - BOP: 11 / 7 - Other: 0 / 0 - Quality compared with other countries in the region (Better / Same / Worse): - NA: 11 / 7 / 0 - Prices: 10 / 8 / 0 - GFS: 7 / 10 / 1 - Monetary: 7 / 10 / 1 - BOP: 6 / 12 / 0 - Other: 0 / 0 / 0 - Overall quality ratings (scale 1 to 5, plus N.C.) — selected aggregates by domain: - NA: 5: 3; 4: 6; 3: 2; 2: 0; 1: 0; N.C.: 6 - Prices: 5: 10; 4: 2; 3: 0; 2: 0; 1: 0; N.C.: 6 - GFS: 5: 2; 4: 5; 3: 0; 2: 4; 1: 1; N.C.: 6 - Monetary: 5: 0; 4: 0; 3: 1; 2: 0; 1: 0; N.C.: 9 - BOP: 5: 2; 4: 6; 3: 2; 2: 0; 1: 0; N.C.: 6 - Other: 5: 0; 4: 0; 3: 0; 2: 0; 1: 0; N.C.: 0 - Note: NA = National Accounts; Prices refers to: CPI (Consumer Price Index) and PPI (Producer Price Index); GFS = Government Finance Statistics; Monetary = Monetary Statistics; and BOP = Balance of Payments Statistics. *Source: _cr06125 - 0. Prerequisites of (PDF).* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06125.pdf_