## _cr06356 — Data Quality Assessment Framework / ROSC (Colombia) — Selected Findings ## Source details **Canonical URL:** [_cr06356 — Data Quality Assessment Framework / ROSC (Colombia) — Selected Findings](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06356.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06356.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06356.pdf.json) --- ### Overall assessment - General judgment: "The quality of the macroeconomic statistics is generally high, broadly conforming to international standards for compilation and dissemination, although coverage of illicit activities is poor." - Major institutional observations: - NADS: Ample legal framework, but "several of the key legal provisions are not implemented"; coordinating role effectively absent; head appointed by the President for a period coinciding with that of the government; "paucity of resources and comparatively low compensation" slow improvements; tradition of professionalism and high technical standards, high credibility for CPI. - AFPC (MFPC): Complex environment; AFPC compiles fiscal statistics for policymaking while other agencies compile for auditing/control; "lack of a legal mandate" for compilation/dissemination of NFPS statistics; "considerable duplication of collection efforts"; "Staff and computing resources are insufficient". - Bank of the Republic (BR): Legal basis for data collection good, no legal mandate to disseminate statistics; resources for statistical production "adequate, with highly qualified professional staff"; BR promotes training and professionalism; lacks a policy of consultations with users of MFS. ### SDDS subscription, dissemination, and timeliness - Colombia subscribed to the SDDS on May 31, 1996; started posting metadata on the IMF’s DSBB on April 25, 1997. - Colombia is in observance of the SDDS, meeting specifications for coverage, periodicity, timeliness, and dissemination of advance release calendars. - Flexibility options used: timeliness of the production index and the analytical accounts of the banking system. - Selected dissemination timeliness notes (as presented): - Quarterly GDP: preliminary estimate publication lag currently 90 days; recommendation to reduce to 45 days. - Production index timeliness: Colombia timeliness 9W (flexibility option). - Analytical accounts of the banking sector: Colombia timeliness for weekly data M 8 D and monthly data 6W; flexibility option taken on timeliness for certain data. - Official reserves: Colombia timeliness D (for official reserves) and M (for reserves template). ### DQAF-based summary ratings (dimensions 0–5; key symbol definitions: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed) - Prerequisites of quality (dimension 0) — selected items: - 0.1 Legal and institutional environment: Monetary Statistics = O; Balance of Payments = O; National Accounts = LO; Government Finance Statistics = LO. - 0.2 Resources: Monetary Statistics = O; Balance of Payments = O; Government Finance Statistics = LO; National Accounts = LNO. - 0.3 Relevance and 0.4 Other quality management (combined row): Government Finance Statistics = O; National Accounts = LO; Monetary Statistics = LO; Balance of Payments = LO. - Assurances of integrity (dimension 1): - 1.1 Professionalism: all four datasets = O. - 1.2 Transparency: Government Finance Statistics = LO; others = O. - 1.3 Ethical standards: all = O. - Methodological soundness (dimension 2) — selected items: - 2.1 Concepts and definitions: National Accounts = O; Government Finance Statistics = O; Monetary Statistics = LO; Balance of Payments = O. - 2.2 Scope: Government Finance Statistics = O; Monetary Statistics = O; National Accounts = LO; Balance of Payments = LO. - 2.3 Classification/sectorization and 2.4 Basis for recording: mixed LO/O ratings across datasets (see table). - Accuracy and reliability (dimension 3) — selected items: - 3.1 Source data: Monetary and BOP = O; National Accounts = LO; GFS = LO. - 3.5 Revision studies: National Accounts = NO; Government Finance Statistics = NO; Monetary Statistics = O; Balance of Payments = LO. - Serviceability (dimension 4) — selected items: - 4.1 Periodicity and timeliness: Monetary and BOP = O; GFS = O; National Accounts = LO. - 4.3 Revision policy and practice: Monetary Statistics = O; National Accounts = LO; Government Finance Statistics = LNO; Balance of Payments = LO. - Accessibility (dimension 5): - 5.1 Data accessibility: all four datasets = O. ### National Accounts — substantive findings and methodological issues - Concepts and scope: - Compilation has conformed to the recommendations of the 1993 SNA since 1995. - Coverage of illicit activities limited to value added in agriculture; "coverage of illicit activities limited to value added in agriculture." - Base year and indices: - GDP estimates based on an outdated base year (1994); work underway to change base year to 2000 (and planning later updates to 2005). - Volume measures: currently mix annual chain indices with a 1994-fixed base; recommendation to "Measure GDP volume changes using annual chain indices." - Source data and registers: - Major shortcoming: lack of an up-to-date business/establishments register to support surveys, especially for services. - Sectoral coverage: about 80 percent representative in value-added terms overall; "Coverage about 50 percent for other services." - Quarterly publication practice: - Quarterly GDP data are published 3 months following the reference period; the last full year published was 2002 at the time of assessment; preliminary estimate for 2003 delayed (estimates later published in February 2006 per authorities’ note). - Validation and revisions: - Revision studies: "Not prepared." - Revision policy: revisions identified, but studies and analyses of revisions are not published; revision cycle not made public. - Selected technical procedures: - Use of fixed technical coefficients (>30 percent of cases use coefficients more than five years old). - Double deflation and other recommended approaches used where possible; some government transactions recorded on a cash basis. ### Government Finance Statistics (GFS) — substantive findings - Compilation and coverage: - AFPC data cover NFPS; representative samples used for local governments and enterprises for above-the-line estimates (AFPC sample: 70 entities). - Financing data: BR compiles financing data covering the entire NFPS; AFPC does not compile exhaustive financing by entity. - Methodology: - AFPC compiles for policymaking following GFSM 1986; GAO and CO compile GFS broadly in line with GFSM 2001. - Functional classification of NFPS expenditure is not available. - Data quality and reconciliation: - "Considerable duplication of collection efforts"; "no system to monitor quality except under the IMF Stand-by Arrangement." - AFPC does not have a regular and transparent revision schedule; "Studies and analysis of data revisions are not made public." - Dissemination and metadata: - AFPC disseminates GFS in accordance with the advance release calendar in the DSBB, but methodological notes on GFS are not disseminated and published GFS are "excessively concise." - Detailed data published only for central government; NFPS publications do not include explanatory methodological notes. ### Monetary and Financial Statistics (MFS) — substantive findings - Concepts and classification: - Concepts broadly consistent with MFSM, but monetary aggregates include deposits of the central government (departure from MFSM); recommendation: "Publish monetary aggregates excluding the deposits of the central government." - Institutional coverage excludes mutual funds and capitalization societies; at end-July 2005 mutual funds represented about 2 percent of M3 and bank credit (document cites "about 2 percent of M3 and bank credit" and elsewhere "approximately 1.75 percent of M3 and 1.83 percent of credit"). - Sectorization and reporting forms: - New reporting form 338 introduced to improve sectorization; not yet fully used as of assessment. - Accrued interest not incorporated into all underlying instruments and sectors. - Timeliness and automation: - SDDS prescriptions on periodicity are exceeded and timeliness met; BR disseminates substantial data in advance of consolidated banking accounts. - Compilation highly automated; routine revision studies carried out and documented. - Recommendations: - Improve sectorization (use Formato 338), incorporate accrued interest across instruments, expand institutional coverage to mutual funds and OFCs as they become relevant, and introduce formal user consultation procedures. ### Balance of Payments (BOP) — substantive findings - Conformance: - BR compiles BOP broadly in conformity with BPM5. - Scope and gaps: - Contraband and illegal trade are not covered; recommendation to "develop, without delay, a methodology to include unrecorded trade in the balance of payments on a timely basis." - Some government bonds issued abroad and purchased by residents are included contrary to residency principle; BR is identifying and addressing these. - Some FDI intercompany debt transactions misclassified as other investment; plan to reclassify to FDI. - Source data and surveys: - Sources: surveys, ITRS, administrative records; sample surveys include Quarterly Survey of Trade in Services and quarterly cross-border expenditure survey. - Timeliness: quarterly BOP meets SDDS periodicity and timeliness; quarterly revision cycle predetermined and stable but not publicly disclosed. - Reconciliation: - Statistics broadly consistent with other frameworks; errors and omissions "have been stable over time and they have not been large" (example: "Over the last three years (2002-2004), errors and omissions as a percentage of exports have averaged 1.2 percent in Colombia"). - Revision studies: - Internal revision studies conducted and documented but not formally published. ### Cross-cutting priorities and capacity constraints (staff recommendations) - Strengthen legal/institutional framework and independence of NADS: - Appoint head for a period overlapping that of government; make budget subject to direct approval by Congress in a multi-year plan; enable sanctions on nonreporting government entities; increase budget. - Strengthen inter-agency collaboration and activate National Commission of Statistical Information (decree 1820 of 1990); limit membership to key producers: NADS, BR, MFPC, CO. - Improve resource endowment: - Address resource shortfalls at NADS and AFPC: increase staff compensation, staffing levels, and computing resources. - Provide more computing resources to AFPC (supporting FOSIT and GAO efforts). - Data systems and registers: - Update and maintain a business and establishments register to support service-sector coverage and sampling. - Elaborate a data model and build a data warehouse to improve micro-level source data consistency across national accounts, BOP, and fiscal statistics. - Revisions and metadata: - Implement a transparent revision schedule; expand revision studies on direction, magnitude, and long-term patterns; make studies public; specify time of day in advance release calendars. - Post summary methodologies and explanatory metadata on the DSBB and periodically update them. - Illicit activity and unrecorded trade: - Improve coverage of illicit activities beyond agricultural value added; develop statistical techniques to estimate illegal exports and counterpart transactions for timely BOP inclusion. - Timeliness and preliminary releases: - Reduce publication lag for preliminary quarterly GDP from 90 to 45 days; consider more frequent preliminary releases where appropriate. ### Selected authority responses and reported progress (highlights) - National Accounts (NADS response): - Estimates for 2003 published on NADS website in February 2006; work to change base year to 2000 underway with timetable for series 1998–2002 by end-2006 and data for 2005 by mid-2007. - Conducting a study of illicit activity focusing on agricultural and industrial sectors; two approaches under consideration regarding treatment of illicit activity. - Compilation of 2000-based accounts improves measurement of government services as GAO requires accrual financial statements from government units. - Monetary statistics (BR reported progress): - Form 338 increased operations monitored and counterpart sectors; institutional coverage increased to include mutual funds, pension and unemployment funds, and trust companies. - New reporting forms to be introduced in second half of 2006 to adopt DQAF recommendations on institutional coverage, accruals, and monetary aggregate definitions. - Redesigned BR Web page (January 2006) and outreach to Superintendency of Banks to maintain rapid data flows. - Balance of Payments (BR response): - Agrees on need to incorporate estimates of unrecorded trade and is discussing sources/methods with NADS. - Plans to reclassify FDI inter-company debt transactions into FDI and to continue efforts to identify bonds issued abroad purchased by residents. - Migrants’ transfers cannot be separately identified due to lack of suitable source data. ### User survey and user feedback (selected findings and statistics) - User satisfaction and usage: - Regular use of key statistics among respondents: National Accounts 91% (usage), CPI/PPI 91%, Monetary and Financial Statistics 91%, BOP 76%, GFS 67%. - Sources used regularly: NADS 96%, BR 98%, MFPC 72%. - Perceptions of coverage/detail/timeliness (selected survey results): - Users dissatisfied with timeliness of national accounts, fiscal statistics, and BOP; many unaware of release calendars. - Majority satisfied with accessibility, particularly monetary, price, and BOP statistics. - Specific tabulated responses (examples preserved verbatim): - National Accounts: regular use 91%42; users knowing release calendar 17%818%21% (response item VII.1.1). - CPI/PPI timeliness satisfaction: Yes 87%4091%91% (item 6.2.2). - GFS timeliness satisfaction: Yes 17%818%24% (item 6.2.3). - Formats of access: - Official website: 93%43; E-mail: 70%32; Official releases (hard copy): 50%23. ### Resources and staffing — selected numeric facts - NADS staffing (National Accounts Directorate): - Number of permanent staff on payroll: 22. - Number of contractual staff hired: 44. - Average experience among permanent staff: 10 years. - AFPC staffing: - AFPC has "two advisors and seven assistants." - BR monetary statistics staff: - Financial Sector Section (FSS) currently has 11 employees engaged in MFS tasks; deployment: seven staff for weekly tasks; three staff for compiling monthly analytical accounts. - Timeliness benchmarks and lags: - Quarterly GDP preliminary estimate publication lag: current 90 days; recommendation to reduce to 45 days. - Quarterly GDP data are published 3 months following the reference period (4.1 Periodicity and timeliness). - CBS (central bank survey) disseminated two weeks after the end of reference month; DCS disseminated six weeks after the reference month (flexibility option). ### Metadata accessibility, assistance to users, and transparency - Metadata and methodology: - BR posts documentation on definitions, concepts, sources, periodicity, institutional coverage, and compilation procedures on its web page; SDDS metadata and related descriptions reviewed quarterly. - AFPC-prepared NFPS operation data do not include explanatory methodological notes on the MFPC website; SDDS metadata posted in DSBB notes methodology aligned with GFSM 1986. - For many datasets, summary methodological statements have yet to be posted on the DSBB. - Assistance channels: - BR: contact information available; Client Services page with e-mail and phone numbers; prompt and knowledgeable assistance on request. - AFPC: provides assistance via MFPC website with electronic comment system; users may submit questions and suggestions; response times vary (readily available data sent immediately; otherwise 2–4 weeks). ### Revision policy and practice — summary - Revision cycles: - BOP: quarterly revision cycle predetermined and stable; not formally made known to the public; users informed when data are preliminary or revised; internal revision studies documented but not published. - National Accounts: revision policy focused on preliminary data; revisions identified but revision studies not prepared; revision cycle not made public. - AFPC (GFS): "does not have a regular and transparent schedule of revision"; revisions are not routinely analyzed or published. - Recommended actions: - Expand and publish revision studies; make revision cycle transparent to users; publish analyses of direction/magnitude/long-term patterns of revisions. *Source: _cr06356 - Data Quality Assessment Framework July 2003—Summary Results; _cr06356 - 5.2 Metadata accessibility; _cr06356 - 2. Methodological soundness; _cr06356 - 3.1/3.2/3.3/3.4; _cr06356 - 4.3 Revision policy and practice; _cr06356 - 0.1/0.2/0.3/0.4 other sections (Report on the Observance of Standards and Codes (ROSC)—Data Module and Detailed Assessments, Colombia).* ### 1. Data Quality Assessment Framework July 2003—Summary Results...............................8 ### Data Quality Assessment Framework July 2003—Summary Results ### Overall assessment - General judgment: "The quality of the macroeconomic statistics is generally high, broadly conforming to international standards for compilation and dissemination, although coverage of illicit activities is poor." - Institutional arrangements: - NADS: Ample legal framework, but "several of the key legal provisions are not implemented"; coordinating role effectively absent; head appointed by the President for a period coinciding with that of the government; "paucity of resources and comparatively low compensation" slow improvements; tradition of professionalism and high technical standards, high credibility for CPI. - AFPC (MFPC): Complex institutional environment; AFPC compiles fiscal statistics for policymaking while other agencies compile for auditing/control; "lack of a legal mandate" but AFPC releases data publicly and through SDDS; "considerable duplication of collection efforts"; no system to monitor quality except under the IMF Stand-by Arrangement; pre-release access to data by officials and IMF staff is not made known to the public; "Staff and computing resources are insufficient". - Bank of the Republic (BR): Legal basis for data collection good, no legal mandate to disseminate statistics; longstanding tradition of compiling and disseminating statistics; Governor elected by a board with staggered appointments; "resources devoted to statistical production are adequate, with highly qualified professional staff"; BR promotes training, research, professionalism; lacks a policy of consultations with users of MFS. - Methodological foundations: "generally sound"; national accounts compiled in line with best practice for over three decades; base-year update underway; coverage of illicit output limited to value added in agricultural production; GFS covers the entire nonfinancial public sector (NFPS) but uses a representative sample of local governments and enterprises for "above-the-line" estimates; some classification and BOP misclassification issues; need to publish monetary aggregates excluding central government deposits. - Accuracy and reliability constraints: - Major shortcoming: lack of an up-to-date business register to support sample surveys, especially for service-sector enterprises. - Source data for local governments poor; project at MFPC and GAO to improve data and reduce reporting burden—will require more resources. - Statistical techniques for BOP from surveys, ITRS, administrative records promote accuracy and minimize errors. - Serviceability and dissemination: - Serviceability "very good in most cases"; a delay in publication of GDP estimates noted: "the final estimate of annual GDP for 2003 is to be published by end-2005" (footnote indicates estimates were published in February 2006). - Data dissemination generally observes SDDS; users desire higher frequency and better timeliness for some variables. - GFS weakness: lack of systematic reconciliation of certain data (including public investment) with other datasets; AFPC has not implemented a regular and transparent revision schedule; revision studies seldom published. - Accessibility: detailed data and metadata readily available for most datasets; statistics disseminated according to a pre-announced calendar; unpublished nonconfidential data generally made available on request; AFPC disseminates GFS in accordance with the advance release calendar in the DSBB, but methodological notes on GFS are not disseminated and published GFS are "excessively concise." ### SDDS subscription and metadata - Colombia subscribed to the SDDS on May 31, 1996 and started posting metadata on the IMF’s DSBB on April 25, 1997. - Colombia is in observance of the SDDS, meeting specifications for coverage, periodicity, timeliness, and dissemination of advance release calendars. - Flexibility options used: timeliness of the production index and the analytical accounts of the banking system. - For most datasets, summary methodological statements have yet to be posted on the DSBB. ### User survey and user feedback - User survey results: - Price and monetary statistics rated highly by users. - Methodological basis and reliability viewed as appropriate, notably for monetary and BOP statistics. - Users dissatisfied with timeliness of national accounts, fiscal statistics, and BOP; many users unaware of release calendars. - Majority satisfied with accessibility, particularly monetary, price, and BOP statistics. - Users saw scope for improved access to fiscal metadata. - User meeting highlights: - Need for timely dissemination of key data for domestic financial markets with strict observance of advance release calendars. - Long delays in GDP publication create market uncertainty. - Timeliness of quarterly GDP and BOP data seen as insufficient. - Some users prefer earlier release of preliminary data (trade-off between timeliness and robustness). - Demand for more methodological information on national accounts, especially industrial activity and financial services indicators. - Demand for a monthly index of economic activity. - Fiscal statistics users: unaware of advance release calendars; time series for key fiscal aggregates unavailable; insufficient detail; various GFS compilers release different data for the same variable. ### DQAF-based summary results (Table 1) Key to symbols: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable - Dimensions 0–5 ratings by dataset (as presented in Table 1): - 0. Prerequisites of quality - 0.1 Legal and institutional environment: National Accounts = LO; Government Finance Statistics = LO; Monetary Statistics = O; Balance of Payments Statistics = O - 0.2 Resources: National Accounts = LNO; Government Finance Statistics = LO; Monetary Statistics = O; Balance of Payments Statistics = O - 0.3 Relevance and 0.4 Other quality management: National Accounts = LO; Government Finance Statistics = O; Monetary Statistics = LO; Balance of Payments Statistics = LO (note: table presents a combined row for 0.3 and 0.4 with these ratings) - 1. Assurances of integrity - 1.1 Professionalism: National Accounts = O; Government Finance Statistics = O; Monetary Statistics = O; Balance of Payments Statistics = O - 1.2 Transparency: National Accounts = O; Government Finance Statistics = LO; Monetary Statistics = O; Balance of Payments Statistics = O - 1.3 Ethical standards: National Accounts = O; Government Finance Statistics = O; Monetary Statistics = O; Balance of Payments Statistics = O - 2. Methodological soundness - 2.1 Concepts and definitions: National Accounts = O; Government Finance Statistics = O; Monetary Statistics = LO; Balance of Payments Statistics = O - 2.2 Scope: National Accounts = LO; Government Finance Statistics = O; Monetary Statistics = O; Balance of Payments Statistics = LO - 2.3 Classification/sectorization: National Accounts = O; Government Finance Statistics = LO; Monetary Statistics = LO; Balance of Payments Statistics = LO - 2.4 Basis for recording: National Accounts = O; Government Finance Statistics = O; Monetary Statistics = LO; Balance of Payments Statistics = LO - 3. Accuracy and reliability - 3.1 Source data: National Accounts = LO; Government Finance Statistics = LO; Monetary Statistics = O; Balance of Payments Statistics = O - 3.2 Assessment of source data: National Accounts = O; Government Finance Statistics = O; Monetary Statistics = O; Balance of Payments Statistics = O - 3.3 Statistical techniques: National Accounts = LO; Government Finance Statistics = O; Monetary Statistics = O; Balance of Payments Statistics = O - 3.4 Assessment and validation of intermediate data and outputs: National Accounts = LO; Government Finance Statistics = O; Monetary Statistics = O; Balance of Payments Statistics = O - 3.5 Revision studies: National Accounts = NO; Government Finance Statistics = NO; Monetary Statistics = O; Balance of Payments Statistics = LO - 4. Serviceability - 4.1 Periodicity and timeliness: National Accounts = LO; Government Finance Statistics = O; Monetary Statistics = O; Balance of Payments Statistics = O - 4.2 Consistency: National Accounts = O; Government Finance Statistics = LO; Monetary Statistics = O; Balance of Payments Statistics = O - 4.3 Revision policy and practice: National Accounts = LO; Government Finance Statistics = LNO; Monetary Statistics = O; Balance of Payments Statistics = LO - 5. Accessibility - 5.1 Data accessibility: National Accounts = O; Government Finance Statistics = O; Monetary Statistics = O; Balance of Payments Statistics = O ### Identified priorities and capacity constraints (implicit policy focus) - Strengthen NADS coordinating mandate and implementation of key legal provisions to improve oversight and dissemination across the statistical system. - Address resource shortfalls at NADS and AFPC: increase staff compensation, staffing levels, and computing resources to improve national accounts and fiscal statistics. - Improve inter-agency collaboration and reconciliation of overlapping fiscal statistics; clarify roles and reduce duplication in collection. - Enhance timeliness of national accounts, fiscal statistics, and BOP releases; consider more frequent preliminary releases where appropriate. - Publish more methodological notes and time series for fiscal statistics on the DSBB to meet user demand for metadata. - Update and maintain a business register to support service-sector coverage in surveys and in national accounts compilation. - Improve coverage of illicit activities in national accounts beyond agricultural value added and ensure related exports are appropriately treated in BOP statistics. - Implement a transparent revision schedule and produce revision studies, particularly for national accounts and fiscal statistics. - Continue projects to improve source data for local governments (departments and municipalities) and provide technical assistance to local governments as envisaged by MFPC/GAO project. *Source: Data Quality Assessment Framework July 2003—Summary Results (Colombia).* ### 5.2 Metadata accessibility ### _cr06356 - 5.2 Metadata accessibility ### Metadata accessibility and assistance to users - Metadata accessibility: headings indicate metadata concerning national accounts are disseminated; tables, charts, and brief descriptions of trends are published. - Assistance to users: - Public points of contact are indicated in publications, but users are often unable to reach compilers directly. - A library is open to the public, seminars are offered to students and journalists, and a catalogue of publications exists. - The AFPC provides assistance to users through the website of the MFPC; users may submit questions and send suggestions. ### Practice-observed definitions (as provided) - 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. ### Table 2a — Bank of the Republic (BR): key findings on prerequisites and assurances of integrity - Legal and institutional environment: - No law assigning responsibility to the BR for compilation and dissemination of the BOP and the MFS, but the BR has a long-standing tradition of discharging these tasks. - Formal collaborative arrangements with the superintendents of banks (SB), securities (SS), and companies (SC) established since 1992 through Law 31 and several decrees and resolutions. - Decree 2080 of 2000 designated the BR as responsible for registering capital flows. - BR lacks authority to request from nonfinancial private agents data on international trade transactions; generally relies on the NADS and the National Tax and Customs Department. - Agreements with private sector associations (hotels, communications) and other collaborative arrangements for external public assets and liabilities, tourism-related flows, and services. - Tradition of protecting confidentiality supported by Constitution and Financial System legislation; adequate penalties for nonreporting and misreporting. - Resources: - Resources for producing the BOP and the MFS are adequate; surveys conducted periodically to ensure salaries and benefits are competitive. - Efficiencies sought through periodic evaluation of staff performance and work processes, including for data selection. - Relevance: - Policy of periodic consultation with BOP users; compilers undertake studies and participate in technical committees. - A proactive policy of consultations with users of the MFS is lacking. - Other quality management: - Quality control programs and promotion of staff development; encouragement of training through courses and seminars. - Professionalism: - Constitution (Article 371) and the Law of the BR provide for autonomy; general manager appointed by Board for a four-year term renewable up to three times. - Hiring and promotion based on academic training, technical ability, and experience. - Data source choices based on statistical criteria; surveys designed according to international methodological standards. - Decisions on dissemination follow SDDS prescriptions; explanatory notes provided; informal contacts with the press to correct misinterpretations. - Transparency: - As SDDS subscriber, BR disseminates terms and conditions of data dissemination; summaries of laws and resolutions available on BR’s website. - Access to BOP and MFS prior to official release limited to relevant BR staff; no government agency or BR board directors have access to such aggregates. - Under data sharing arrangement with the NADS, selected services data provided ahead of release to national accounts staff. - BR announces methodological and source changes on its website and in its monthly publication; when MFS series modified, old and revised data are published for a reasonable period. - Ethical standards: - Guidelines in Law 734 of 2002; code of conduct included in BR’s Internal Work Regulations (on Intranet). - In September 2003 the BR created the Value Strengthening Group and issued the Ethics and Behavior Guide. - Employees expected to adhere to standards on conflict of interest and handling of confidential data; regulations include penalties; new recruits made aware and staff periodically reminded. ### Table 2b — Ministry of Finance and Public Credit (MFPC / AFPC): key findings on prerequisites and assurances of integrity - Legal and institutional environment: - No single law or formal arrangement defining responsibilities of public sector units compiling fiscal statistics. - Decree 111 of 1996 gives the MFPC’s AFPC responsibility for monitoring fiscal conditions and preparing projections, but does not require compilation/dissemination of statistics on NFPS operations. - The Comptroller’s Office (CO), National Planning Department (NPD), BR, and other MFPC units also prepare fiscal statistics. - AFPC receives voluntary data from a sample of public entities; does not compile financing of the NFPS and relies on the BR for quarterly preparation. - Each compiling unit circulates its own data gathering request, increasing reporting burden; credibility of penalties varies across units. - Collaboration and data sharing between AFPC and BR are excellent; scope exists for greater consultations involving other compilers. - Resources: - AFPC appears to have sufficient staff but needs more computing resources. - No system in place to measure the cost of statistical work. - Relevance: - AFPC publishes information through diskettes and the Internet; users’ needs are not monitored. - Other quality management: - Processes in place to monitor quality of reports received; no system to monitor quality of statistical programs except through staff meetings. - Professionalism: - Tradition of professionalism; quarterly data compiled in line with methodological agreements under IMF-supported programs. - Compilation methodology adheres to internationally accepted standards. - AFPC issues press releases and special studies on the Internet to avoid erroneous interpretation. - Transparency: - Only key officials of MFPC, BR, and IMF have pre-release access; this is not made known to the public. - Authorship of AFPC publications is clearly identified. - Changes in methodology associated with IMF agreements are announced on the Internet and via Technical Memorandum of Understanding. - Ethical standards: - Ethical standards well known; staff subject to Civil Service and Administrative Career Law and Code of Discipline; relevant regulations available on the Internet. ### Table 2c — National Administrative Department of Statistics (NADS): key findings on prerequisites and assurances of integrity - Legal and institutional environment: - NADS responsible for national accounts, CPI, and other statistics; activities supported by laws and decrees, but key legal provisions covering the statistical system are inoperative. - Decree 1820 of 1990 established a national statistical system and National Commission of Statistical Information; the commission has not met and only one Intersectoral Committee is active. - 1993 transfer of responsibilities for certain basic data weakened NADS capacity to ensure high-quality source data. - Inter-institutional coordination is broadly adequate; responsibilities for macroeconomic statistics clearly defined in practice. - Scope exists to improve data sharing and coordination with MFPC and, to a lesser extent, BR. - Resources: - Permanent staff insufficient for national accounts compilation; regular hiring of contractual personnel. - Low salaries relative to BR and MFPC complicate hiring and retention. - Computer resources and physical infrastructure not adequate. - Relevance: - User surveys occasionally conducted; no periodic consultation with users on usefulness and relevance. - Other quality management: - NADS obtained ISO 9001 certification in 2002; quality of statistical projects regularly assessed. - Professionalism: - Internal operations reflect highly professional staff; professional independence not supported by legislation (head appointed by President for coterminous period). - Recruitment and promotions decided on ability and performance. - Establishment of the Andean Center of High Studies within NADS to maintain and promote standards. - NADS monitors and adopts international methodological standards; uses press releases and seminars to strengthen understanding. - Transparency: - Website provides information on legal framework, organization, output, and staff. - Data released simultaneously to public and policymakers; selected users informed of impending methodological changes. - Ethical standards: - Staff subject to Civil Service and Administrative Career Law and Code of Discipline. - NADS issued “Ethics and Values at the NADS” to inform staff on ethical standards. ### Table 3a — National Accounts: methodological soundness, accuracy, serviceability, accessibility - Concepts and definitions: - Compilation has conformed to the recommendations of the 1993 SNA since 1995. - Scope: - Broadly in accordance with 1993 SNA; coverage of illicit activities limited to value added in agriculture. - Classification/sectorization: - Based on Standard International Industrial Classification, rev. 3; Central Product Classification (CPC) used; supply/use framework prepared for annual and quarterly GDP. - Basis for recording: - Broadly in line with accrual and valuation principles of 1993 SNA, except government transactions recorded on a cash basis. - Corrections made when transfer prices identified; transactions between establishments within same enterprise recorded on gross basis to extent possible; agricultural work in progress recorded in period produced. - Source data: - Based on censuses, surveys, and administrative records; enterprise registry outdated; certain services not well covered. - Assessment of source data: - Accuracy from surveys and administrative records routinely assessed. - Statistical techniques: - GDP and expenditure estimates based on an outdated base year (1994); NADS compiling new series with 2000 as the new base year. - Estimates of illicit activities focus on agricultural output and do not include downstream value added; such production assumed exported to a fictitious country. - GDP volume changes measured using annual chain indices mixed with a 1994-fixed base. - Assessment and validation: - Intermediate results assessed and consistency checked in a somewhat mechanical way. - Revision studies: - Not prepared. - Periodicity and timeliness: - Dissemination generally meets SDDS recommendations. - Quarterly GDP data are published 3 months following the reference period. - The last year for which GDP has been published is 2002, as the pre-announced release date for annual GDP figure for 2003 was not observed. - Consistency: - Overall consistency between output and expenditure estimates; data consistent across 1990–2002. - Discrepancies between above-the-line net lending (NADS) and below-the-line transactions (BR) in institutional accounts. - National accounts reconcilable with balance of payments, though latter exclude shuttle and illegal trade. - Coverage of public sector in national accounts more comprehensive than in fiscal statistics. - Revision policy and practice: - Revision policy focused on preliminary data; publications identify revised data and provide information on revision, but revisions are not studied. - Public provided with schedule for updating base year. - Data accessibility: - National accounts published on NADS’s website; longer series, more detail, and unpublished data available upon request. - Specialized publications and advance release calendars exist; data released simultaneously to all users. - Metadata accessibility: - Metadata concerning national accounts disseminated. - Assistance to users: - Publications indicate points of contact; users often unable to reach compilers directly; seminars and library available. ### Table 3b — Government Finance Statistics (GFS): methodological soundness, accuracy, serviceability, accessibility - Concepts and definitions: - GFS used for macroeconomic policymaking compiled by AFPC in collaboration with BR, following GFSM 1986. - GAO and CO compile GFS on an accrual basis broadly in line with GFSM 2001, reported in the GFSY. - Scope: - AFPC data cover NFPS; coverage of above-the-line operations of units outside national administration not exhaustive due to capacity constraints. - Representative samples used for local governments and enterprises; financing data cover NFPS exhaustively. - BR, GAO, and CO data cover all NFPS units. - Classification/sectorization: - In line with internationally accepted standards; AFPC, GAO, and CO data not adequate for functional classification of expenditure. - Basis for recording: - Flows and stocks valued and recorded according to internationally accepted practices; grossing and netting principles in line with recommendations. - Source data: - AFPC collects data from a limited sample of 70 entities to ensure timeliness and reliability; data from remaining entities not adequate partly due to weaknesses in local government official training. - Reporting from sample entities generally timely. - Assessment of source data: - AFPC, GAO, and CO routinely assess data reported by NFPS units. - Statistical techniques: - AFPC and BR compilation methodologies and practices in line with GFSM 1986. - Assessment and validation: - AFPC reconciles balance of revenue and expenditure with central government financing data; checks for rest of NFPS made with aggregate financing data compiled by BR. - GAO and CO use required accounting records of public sector units. - Revision studies: - AFPC reviews compilation methodology periodically, including to accommodate monitoring needs for IMF-supported program; included in Technical Memorandum of Understanding. - Periodicity and timeliness: - AFPC compiles and disseminates monthly, quarterly, and annual data for NFPS and central government according to SDDS prescriptions; quarterly dissemination exceeds SDDS prescriptions. - Consistency: - AFPC reviews internal (vertical) and temporal consistency; no routine reconciliation of GFS with other macroeconomic statistics. - Revision policy and practice: - AFPC does not have a regular and transparent schedule of revision; data labeled as preliminary when first published. - Studies and analysis of data revisions are not made public. - Data accessibility: - Monthly, quarterly, and annual statistics and AFPC reports disseminated through MFPC webpage; data compared with earlier periods and presented in percent of GDP. - Detailed data published only for central government. - Data disseminated according to advance release calendar in DSBB of the IMF. - Metadata accessibility: - AFPC-prepared NFPS operation data do not include explanatory methodological notes. - SDDS metadata posted in DSBB notes methodology aligned with GFSM 1986. - Data structured and summarized as presented to authorities for fiscal policymaking; users not consulted on needs but may request unpublished detail via MFPC website. - Assistance to users: - AFPC provides assistance through the MFPC website; users may submit questions and suggestions. *Source: _cr06356 - 5.2 Metadata accessibility* ### 2. Methodological soundness ### 2. Methodological soundness ### Monetary and financial statistics - Concepts and definitions - Are broadly consistent with those in the Monetary and Financial Statistics Manual (MFSM). - The monetary aggregates include the deposits of the central government, which is a departure from the MFSM. - Scope - Monetary statistics cover all depository corporations except mutual funds and capitalization societies. - At end-July 2005, the mutual funds represented about 2 percent of M3 and bank credit. - Classification/sectorization - BR accounts follow the MFSM. - Sectorization in the accounts of the other depository corporations (ODCs) excludes some positions with residents and nonresidents; this is available in the newly introduced report form 338, but is not being used yet. - Financial derivatives are recorded on a net basis and included in credit to other nonfinancial corporations. - The presentational format of the various surveys is not fully in line with the MFSM. - Basis for recording - Financial assets in the BR and ODCs accounts are valued at market prices. - Accrued interest is not incorporated into all underlying instruments and sectors. - Partial netting is applied to several aggregates in the depository corporations survey. - Source data - Provide sufficient detail to identify financial instruments and counterpart sectors, and to approximate the definitions recommended in the MFSM. - Source data are timely. - The Chart of Accounts allows adequate sectorization of transactions; BR routinely obtains (with cooperation from the SB) supplementary information from financial agents to adequately identify transactors. - Assessment of source data - Is sound. - Balance sheets are routinely reviewed and financial corporations consulted for clarification when unusual movements in the data are detected. - Statistical techniques - Are generally sound. - Compilation process is highly automated and electronic compilation procedures minimize the likelihood of compilation errors. - Assessment and validation of intermediate data and statistical outputs - Balance sheet data and additional sectorized information are routinely validated against data from other sources. - Statistical discrepancies and other potential problems are investigated and taken into account in future work programs. - Revision studies - Carried out routinely to ensure reliability of data. - Findings are documented and taken into account in the compilation of data for subsequent periods. - Periodicity and timeliness - SDDS prescriptions on periodicity are exceeded and those on timeliness are met. - Colombia takes the flexibility option on the timeliness of the analytical accounts of the banking sector. - The BR disseminates a substantial amount of data well in advance of the release of the consolidated accounts of the banking system. - Consistency - Monetary statistics are consistent within the dataset, over time, and with balance of payments and fiscal statistics. - Revision policy and practice - The BR revises monetary statistics when there have been changes in methodology, institutional and financial instrument coverage, and source; or data errors. - Preliminary data are clearly identified. - Significant revisions are documented in methodological notes that are disseminated to the public. - Data accessibility - Presentation of monetary statistics is clear and useful for meaningful purposes, and statistics are released on a pre-announced schedule. - Monetary statistics can be reconciled across published tables and the dissemination formats are user-friendly. - Metadata accessibility - Documentation on definitions, concepts, sources of data, periodicity, institutional coverage, and compilation procedures are posted on the BR’s web page, which has a section on the SDDS. - Posted SDDS metadata and other related descriptions are reviewed quarterly and updated regularly. - Summary methodologies and departures from internationally accepted standards are not disseminated. - Assistance to users - Provided on request. - BR’s publications and web page provide detailed contact information. - A catalog of publications and prices is available in the BR’s publications and web page. ### Balance of payments - Concepts and definitions - BR compiles balance of payments statistics in broad conformity with the guidelines of the BPM5. - Scope - Contraband and illegal trade are not covered. - As recommended by BPM5, resident-resident transactions, including transactions between the free trade zones and residents, are excluded from the balance of payments. - However, contrary to the residency principle underpinning the BPM5, some government bonds issued abroad and purchased by residents are included in the financial account. - Classification/sectorization - Broadly in line with BPM5 guidelines. - Some foreign direct investment transactions in equity and debt are misclassified in terms of functional category; related investment income series are also misclassified. - Basis for recording - Principle of market valuation is generally used. - Flows derived from stocks for debt securities (assets) of banks are not adjusted for valuation changes. - Recording is mostly done on an accrual basis; however, interest on external public debt and some dividend payments are recorded when paid. - Source data - Composition of data sources (surveys, ITRS, and administrative records) is broadly sufficient to compile balance of payments data. - Assessment of source data - Accuracy of data from surveys is routinely assessed to ensure the frame is current, and to monitor sampling and nonsampling errors. - ITRS misreported transactions are kept to a minimum and nonsampling errors are monitored. - External debt data are reviewed with the Statistical Committee on Public Finance. - Statistical techniques - Automated systems minimize errors. - Nonresponse is kept to a minimum by rigorous follow-up. - Estimates for travel data are verified through several sources. - Reliable estimation techniques to produce timely quarterly estimates of unrecorded trade have yet to be developed. - Assessment and validation of intermediate data and statistical outputs - Intermediate results are validated against other information. - Revision studies - Internal studies are conducted and documented but no formal analysis are undertaken of patterns and trends. - Periodicity and timeliness - Data meet SDDS periodicity and timeliness prescriptions. - Consistency - Statistics are broadly consistent and/or reconcilable with those obtained from other frameworks. - Errors and omissions have been stable over time and they have not been large. - Financial transactions are reconciled with changes in the international investment position. - Revision policy and practice - Quarterly revision cycle is predetermined and stable, but it is not formally made known to the public. - Annual and historical revisions are carried out as needed. - Users are informed when data are preliminary or revised. - Studies of revisions are made available internally but not published. - Data accessibility - Statistics are released on a pre-announced schedule through a press release. - A range of balance of payments data is readily available in press releases in different formats and presentations. - Statistics are made available to all users at the same time. - Metadata accessibility - A document describing sources and methods is available through the Revista del Banco de la República. - It is also available to users in Word format on request. - Different levels of metadata are available to meet users’ needs. - Assistance to users - Prompt and knowledgeable service and support are available to users. - Client Services page on the website includes the e-mail address and phone numbers of the Department of Economic Studies. - Direct contact points for balance of payments statistics are included in some studies and papers but not posted on the website. *Source: _cr06356 - 2. Methodological soundness* ### 13. Staff’s recommendations are aimed at redressing shortcomings identified in the ### 13. Staff’s recommendations are aimed at redressing shortcomings identified in the ### Cross-cutting Recommendations - Review the legal framework for statistical activity, including to strengthen the institutional and financial independence of the NADS. This will require: - appointing its head for a period overlapping that of the government; - making its budget subject of direct approval by Congress in the context of a multi-year plan for statistical improvement; - enabling it to apply sanctions on non-reporting government entities; and, - increasing its budget. - Strengthen inter-agency collaboration, including through activation of the National Commission of Statistical Information envisaged by decree 1820 of 1990. Raising the effectiveness of this commission would require limiting its membership to the entities that effectively carry the heavier responsibilities in the production of macroeconomic statistics: the NADS, the BR, the MFPC, and the CO. - Within the national information policy and the government’s connectivity agenda, launch a robust effort to strengthen statistical culture in central government ministries, local governments and enterprises with support from the highest political level. This could be done through a decree requiring statistical compilers within the public sector to adhere to compilation and reporting standards to be set by the National Commission of Statistical Information. - Adhere to a policy whereby only the responsible institution (that is a member of the National Commission of Statistical Information) may release official data. - Expand revision studies to include more analysis on the direction and magnitude of revisions as well as long-term revision patterns. Make these studies available to the public and inform the public of the revision cycle. - Specify the time of the day of publication in the advance release calendars. - Summary methodologies should be posted on the DSBB and periodically updated. ### National Accounts — High-priority recommendations and actions - Publish preliminary estimates of the national accounts for 2003 without further delay. - In collaboration with the NTCD, prepare a directory of establishments to provide an adequate basis for sample surveys. - Elaborate a data model to guide the building of a data warehouse aimed at improving the consistency of source data at the micro level that supports compilation of the national accounts as well as the balance of payments and fiscal statistics. - Press ahead with work to change the base year to 2000, preferably by end-2005. Looking ahead, consider a one-off shortening of the cycle for changing the base year in order to take advantage of the wealth of data stemming from the results of the ongoing comprehensive censuses that will become available in the first half of 2006. - Improve the treatment of the economic activity generated by the large illicit sector, moving beyond agricultural output. - Measure GDP volume changes using annual chain indices; the measuring of government transactions should be made on an accrual basis. - Reduce the publication lag of the preliminary estimate of quarterly GDP from 90 to 45 days, which would need to be reflected in the advance release calendar. - Maintain an external relations policy aimed at promptly dispelling doubts, misinterpretation, and questions about the compilation of the national accounts (including the GDP of the manufacturing sector). - Observe the (advanced) release calendar for annual GDP. Additional National Accounts notes from authorities (NADS response) - Estimates of the national accounts for 2003 were published on the NADS website in February 2006; final figures for 2004 are being prepared. - Work to change the base year to 2000 is underway, with results for the series 1998–2002 to be completed by end-2006 and data for 2005 by mid-2007. In the second half of 2006, NADS planned to initiate work to update the base year to 2005. - NADS is conducting a study of illicit activity focusing on the agricultural and industrial sectors and taking into account repatriated financial flows stemming from exports. Two approaches: (1) consider these activities part of the national economy; (2) treat these activities as part of an enclave. - Compilation of the new 2000-based national accounts improves measurement of government services as the General Accounting Office is requiring government units to present financial statements on an accrual basis. - A key factor preventing dissemination of quarterly GDP data 45 days following the reference period is that producers of source data submit data 45-60 days after the end of the quarter; subsequent compilation stages take four weeks and involve 12 listed procedural steps. - The new 2000-based national accounts ensure consistency and improve the link between methodology for calculating production of housing services and measurement of activity in the construction sector. - Technical assistance is needed to improve estimates of the financial sector GDP by separating capital profits/losses from interest earned on financial instruments. ### Government Finance Statistics — Recommendations and authority responses - Strengthen the authority of the MFPC/AFPC to collect information from any public sector institution. In addition, all proposals for legal action with a possible impact on the reporting, storing, or dissemination of fiscal data must be reviewed by the AFPC, with its opinion to be taken into account at the highest ministerial level. - Make the MFPC/AFPC responsible for undertaking systematic reconciliation of fiscal aggregates (including public investment) produced by the different institutions involved (GAO, CO, BR, NADS, NPD, NTCD, GDPC, as well as other internal units of the MFPC). This will require a greater resource endowment. - The AFPC should compile data on the financing of each of the NFPS entities, which will require requesting from reporting agencies data on below-the-line operations. The BR should disaggregate net credit to the public sector by individual entity. These actions by the AFPC and the BR will permit better validation of data on the fiscal outturn. - The MFPC should develop the functional classification of the nonfinancial public sector expenditure. - Monitor user needs, ensuring that published data meet demands for more detail, longer time series, and methodologies information. - Increase efforts to make users aware of data dissemination practices, including explaining differences between datasets used for policymaking (AFPC) and auditing and control (GAO, CO). Also, inform the public that selected officials in charge of formulating macroeconomic policy, policymakers, and the IMF receive fiscal data in advance of public release. Intensify efforts at publicizing the advance release calendar, including by hyper linking the MFPC’s website to the SDDS. - Provide more computing resources to improve the compilation of data in AFPC, which should support efforts undertaken by the MFPC’s Fiscal Support Directorate, FOSIT, and GAO. Government Finance Statistics — Authorities’ observations and legal context - AFPC was established in 1989 as an independent entity to provide input for fiscal policy decision making by the Fiscal Policy Council; its functions derive from Laws 38 of 1989, 179 of 1994, and 225 of 1995, and Decree Number 111 of 1996 (Organic Statute of the Budget). - The authorities state that Table 2b of the ROSC is incorrect in asserting that “Decree 111 of 1996 gives the AFPC responsibility for compiling and disseminating statistics on the operations of the nonfinancial private [sic] sector (NFPS).” - The authorities disagree with recommendations that would assign to the Fiscal Policy Council responsibility for systematically reconciling fiscal aggregates prepared by various institutions, arguing this function more properly belongs to the General Accounting Office (GAO). - The authorities note they agree with recommendations to: - conduct follow-up with users to guarantee that published data satisfy demand; - improve compilation and quality of data from regional and local governments (noting joint initiatives by the Fiscal Policy Council, DAF, DNP, and CGN); - increase capacity of information technology resources. ### Monetary Statistics — Recommendations and authorities’ actions - Publish monetary aggregates excluding the deposits of the central government, as recommended by the MFSM. - Press ahead with work underway to improve sectorization, including positions with nonresidents, now available in the call report form 338. In the medium-term, consider revising the chart of accounts to ensure that reporting from banks meets statistical needs comprehensively, reducing the need for supplementary information. - Incorporate accrued interest into all underlying financial instruments and sectors. - Introduce formal procedures for consultations with users, such as user surveys and periodic meetings. Authorities’ reported progress (Bank of the Republic) - Coverage of sectorized accounts has improved, with form 338 increasing the number of operations monitored and counterpart sectors. - Institutional coverage has been increased to include other financial intermediaries: mutual funds, pension and unemployment funds, and trust companies. - Adoption of recommendations of the new Monetary and Financial Statistics Manual, especially regarding monetary aggregates, accrual accounting, and valuation of financial assets. - New reporting forms to be introduced in the second half of 2006, aiming to adopt almost all DQAF recommendations on institutional coverage, use of all accounts of form 338, and compliance with international definitions regarding accruals and monetary aggregates. - Operational improvements: a redesigned BR Web page in January 2006 for better user responsiveness; outreach to the Superintendency of Banks of Colombia to maintain rapid data flows. ### Balance of Payments — Recommendations and authorities’ actions - In consultation with the NADS, develop, without delay, a methodology to include unrecorded trade in the balance of payments on a timely basis. A statistical technique would need to be designed to estimate illegal exports and counterpart transactions. - Reclassify FDI intercompany debt transactions from other investment to FDI. Based on the 10 percent ownership criteria of FDI, reclassify some FDI equity transactions to portfolio equity. Adjust the related investment income series accordingly. - Continue efforts to identify government bonds issued abroad and purchased by residents as well as those purchased by residents on the secondary market. Authorities’ response (Bank of the Republic) - Agrees on the need to incorporate estimates of unrecorded trade and is discussing sources and methods with the NADS. - Agrees on the need to exclude from the BOP Colombian government bonds issued abroad and purchased by residents, and those purchased by residents in the secondary market, but notes existing source data do not allow monitoring of secondary market transactions by Colombian residents at this moment. - Continues efforts to ascertain whether outward FDI equity transactions meet the 10 percent threshold to ensure appropriate classification. - Plans to reclassify FDI inter-company debt transactions currently recorded under “other investment” into FDI. - Transactions involving migrants’ transfers cannot be separately identified due to unavailability of suitable source data and are included indistinguishably in other BOP components. - Will study the feasibility of undertaking a study of partner country data to produce dividend data on an accrual basis. ### Dissemination practices compared to SDDS — Selected notes from Table 1 - National accounts: coverage meets SDDS requirement; periodicity Q; timeliness Q. - Production index/indices: coverage Yes; periodicity M; timeliness M; SDDS timeliness 6W (1M encouraged); Colombia timeliness 9W (Taking flexibility option on the timeliness of the data). - Employment and Unemployment: coverage Yes; periodicity Q; timeliness M; periodicity and timeliness exceed SDDS requirements. - Consumer price index: coverage Yes; periodicity M; timeliness M; timeliness NLT 5 WD (Timeliness exceeds SDDS requirements). - Nonfinancial public sector: coverage Yes; periodicity A; timeliness Q; Coverage, periodicity and timeliness exceed SDDS requirements. - Analytical accounts of the banking sector: coverage Yes; periodicity M (data on monetary and credit aggregates) and M (data on the external position and the split of monetary and credit aggregates between the public and private sectors); timeliness shows M 8 D (for weekly data) and 6W (for monthly data). Weekly data exceed periodicity and timeliness requirements, but do not include certain prescribed components—taking flexibility option on the timeliness of certain data. - Reserves template and official reserve assets: coverage Yes; periodicity M (W recommended); Colombia timeliness D (for official reserves) and M (for reserves template); Timeliness exceeds SDDS requirements. - International investment position: coverage Yes; periodicity A (Q recommended); Colombia periodicity Semi-annual; timeliness 3Q (1Q encouraged) and 6M (Periodicity and timeliness exceed SDDS requirements). *Report on the Observance of Standards and Codes (ROSC)—Data Module and Detailed Assessments (Colombia), October 3, 2006.* ### 1. Summary of Results for National Accounts...................................................................33 ### 1. Summary of Results for National Accounts ### Prerequisites of quality — Legal and institutional environment - Legal mandates and primary responsibilities - Decree 3167 of 1968 empowers the National Administrative Department of Statistics (NADS) to lead compilation and dissemination of the national accounts; the National Accounts Directorate (NAD) is the NADS unit responsible. - Article 14 of Decree 262 of 2004 specifies NAD functions: preparing annual, quarterly, national, regional, and satellite accounts; developing and implementing national accounts and summary methodologies; following international recommendations; performing methodological analyses; undertaking comparative analyses with other public and private research; supporting regional accounts; and disseminating the national accounts system. - Coordination and institutional weaknesses - Decree 1820 of 1990 created the National Statistical System and the National Statistical Information Council (NSIC) comprising 19 institutions, but the NSIC “has never met or fulfilled its coordination function.” - Multiple agencies produce estimates of the same variables (example: public investment and manufacturing sector value-added), leading to user confusion and inconsistent published estimates. - Examples of positive coordination exist without legal foundation (e.g., BR financial accounts are used by NADS for institutional sector accounts). - Independence and confidentiality constraints - No law or official provision underpins the professional independence of the NADS; the NADS director is appointed directly by the President and typically coterminous with the President’s term. - Conflicts between NADS responsibilities and legal provisions on confidentiality have impaired timeliness (example: NTCD supplied production data aggregated by ISIC, insufficient for institutional unit detail). - Legal provisions on confidentiality and reporting - Article 5 of Law 79 of October 1993 protects confidentiality: data supplied to NADS in censuses and surveys “may not be disclosed” except as aggregates that cannot identify individuals. - Chapter III, paragraph 21 of Law 734 of 2002 establishes penalties for unauthorized disclosure. - Article 6 of Law 79 of October 1993 authorizes NADS to impose fines on nonreporting and misreporting amounting to the equivalent of between 1 and 50 times the minimum monthly wage. - Data sharing and coordination among agencies - Internal NADS data-sharing mechanisms are adequate; coordination with the BR and units of the MFPC can be improved to enhance consistency of institutional sector accounts. - Multiple public entities (AFPC, NDP, GAO, CO) prepare public investment estimates; reconciliation procedures are not available to users. - NADS maintains good communication with other statistical bodies for classification and reconciliation tasks and holds meetings with BR to reconcile real and financial accounts where discrepancies in net lending occur. ### Prerequisites of quality — Confidentiality, reporting measures, and user interaction - Confidentiality protection and practices - NADS attaches a notice to surveys: “The data requested by the NADS in this form are strictly confidential. In no circumstances do they have fiscal purposes, nor can they be used as judicial evidence.” - Procedures include password-protected master files, aggregation prior to regional publication, manual checks to prevent indirect disclosure, and delivery of aggregates for research requests. - Physical and electronic security: some 40 closed circuit cameras; seven permanent guards supplied by specialized firms working 24 hours a day on a staggered shift basis. - Record destruction governed by internal NADS regulations on retention, filing and destruction of documents. - Measures to ensure statistical reporting - NADS uses pre-testing and piloting when designing questionnaires, hires skilled staff to assist respondents, and monitors response rates (example: 2005 annual surveys of commerce, services, and industry). - Decree 262 of 2004 supports collection powers to request information from private individuals, legal entities, and Colombians abroad. ### Resources - Staffing and human resources - Number of permanent staff on payroll: 22. - Number of contractual staff hired: 44. - Average experience among permanent staff: 10 years. - High turnover among contractuals creates persistent training challenges. - Wage levels equivalent to the middle-low central government range; compensation is uncompetitive relative to MFPC, NPD, and BR. - Facilities, computing resources, and IT systems - NAD invested in software tools for national accounts compilation, including applications developed using the open-license database manager Interbase 6.0. - 1994 base year coefficients cover “over 50 percent of the records”; software constructs a reconciled supply-use balance proposal using fixed coefficients and projects supply-use tables using Excel and a RAS-type variant of the bi-proportional method developed in-house. - Construction of the new national accounts series with base year 2000 used the Eretes software (created in France via INSEE and Université de Lyon collaboration) with Progress as the database engine; interfaces between local applications and Eretes have been developed; integration is ongoing and completion is pending. - Each permanent or contracted staff member has a computer connected to the network; current computing capacity is insufficient to handle the large volume of data processing. - Network backup is carried out on a monthly basis; working files are saved on two tapes by the central NADS systems office; one tape is kept in the NADS central office and the other is sent to the Bogota regional office. - Operating environment and budgets - Physical space is crowded; meeting spaces are extremely limited. - Ongoing implementation of the 2005 general census prompted restructuring of physical plant, with planned auditorium, cafeterias, and rest areas. - Transport services for data collection are adequate; investment budget for NADS research includes appropriations for transport depending on geographic coverage. - Current NADS budget has been stable, but the investment budget has deteriorated; the new 2000 base year series was delayed by a year because resources were not assigned in 2003 despite an allocation in 2002. - Measures to guarantee efficient use of resources - Staff performance evaluated annually using the Civil Service Office formula covering technical, operational, and interpersonal competencies. - Effectiveness promoted via cost/objective analysis, consistency in concepts/classifications, and use of external expert services. - Over the last eight years, several IMF missions have participated in evaluating institutional issues, sources, and methods. - NAD has a general planning system and a four-year track record of project execution enabling identification of relatively more expensive processes for minimization or cancellation. ### Relevance - Monitoring relevance and user needs - Decrees 3167 and 1968 require NADS to consult users; users are surveyed on data usefulness in terms of detail, periodicity, and timeliness; customer satisfaction is measured annually. - No periodic consultation process exists to evaluate suitability of existing statistics, but procedures exist to identify and analyze new needs via internal and external review of proposed research activities. - Examples of consultation: BR consulted on imports and exports of services in manufacturing; Narcotics Office consulted on measurement of output of illegal crops. - NAD routinely participates in international and regional statistical meetings and seminars, but recent budgetary constraints limit participation (example: inability to participate in upcoming discussions of issues relating to the upcoming review of 1993 SNA with the Andean Community and the Economic Commission for Latin America). *Summary based on the National Accounts section of the DETAILED ASSESSMENT USING THE DATA QUALITY ASSESSMENT FRAMEWORK (DQAF) in Colombia’s ROSC—Data Module.* ### 0.4 Other quality management ### 0.4 Other quality management ### 0.4.1 Processes are in place to focus on quality - The NADS was awarded the locally developed Quality Management System (SGC) certificate in 2002. - The award is based on the ISO 9001 standard (2000 version) and is given to entities producing statistical services. - Renewal of the respective certificate was obtained in July 2005 from the Colombian Technical Standards and Certification Institute. - The NADS maintains a quality management system that includes strategic and mission-based goals. - Project lifecycle: projects start with identification and analysis of customer requirements and conclude with the dissemination of statistics. - Current coverage of the management tool: quarterly accounts only. - Planned expansions: add the regional accounts project and the annual and satellite accounts. - Quality emphasis also implemented through staff training. ### 0.4.2 Processes are in place to monitor the quality of the statistical program - Systematic monitoring and evaluation use indicators of timeliness, reliability, coverage, and customer satisfaction. - Tools exist to assist personnel responsible for national accounts projects in evaluation and monitoring tasks (example: treatment of unusual output). - Procedures are in place for generating corrective, preventive, and improvement actions to enable different agencies to learn about and participate in action plans. - Control procedures and plans are periodically audited to: - verify compliance with requirements, and - generate action plans when correction or improvement is identified. ### 0.4.3 Processes are in place to deal with quality considerations in planning the statistical program - Quality issues are taken into account in planning the statistical program, including: - needs for quality improvements identified in monitoring tasks and periodic reviews, and - information on quality standards and the new information requirements of users. - Trade-offs between different dimensions of quality have only been partially addressed (example: trade-off between punctuality/timeliness and accuracy/reliability). *Source: _cr06356 - 0.4 Other quality management* ### 3.1 Source data ### 3.1 Source data ### Data collection programs and scope - Collection programs used to compile the national accounts are generally adequate and are reviewed periodically to ensure exhaustiveness. - The basic source programs used by the NADS are frequently redesigned in methodological, thematic, logistic, and sampling terms to ensure fulfillment of their national accounts purposes. - Annual statistics on enterprises and establishments are collected through a regular survey program. Main annual economic surveys comprise: manufacturing, commerce, hotels and restaurants, information technology services, travel agencies, temporary hiring of workers, security and surveillance, and postal services. - There is no complete and up-to-date record serving as a basis for surveys of enterprises and establishments, but there is a commercial register of establishments (RUE) which is partially updated annually through mini-surveys. - It is hoped to have a complete and up-to-date directory available as from 2006, with collaboration from the 2005 General Census, the NTCD and the Superintendency of Securities. This will also make it possible to review and periodically update the population parameters and weightings used in the estimation process. ### Survey design, sampling, and quality control - The calculation of sample sizes, monitoring of coefficients of variation, and statistical analysis of expanded figures serve to ensure sample representativeness. - The population of economic units is classified by activity and size, based on income, sales or production, and number of employees. - Survey questionnaires are prepared according to sound design principles: the general goal of the measurement is determined, specific objectives, required output tables, variables to be measured, and corresponding metadata. - Data collection instruments are tested through office tests, pretesting, and pilot schemes, and are reviewed regularly on the basis of the response rate for each variable. - The form design process includes a flow of self-administered questions to minimize nonsampling errors; short forms exist for monthly industry and trade surveys and broader batteries for annual surveys. - The calculation and monitoring aim that "the relative terror of the estimation does not exceed the 5 percent range accepted by the NADS." In the case of the monthly manufacturing survey, the relative error of the estimation is no greater than 2 percent. - Ad hoc surveys are carried out as necessary to fill gaps; these normally involve consulting professionals specializing in the issue to be investigated. - Data collection programs are relatively open and flexible as regards changes in sources; NADS consults entities on business changes such as mergers, privatizations, or changes in social purpose. ### Household and population sampling - Household income and expenditure surveys are performed regularly, roughly every 10 years. The next survey is expected to be carried out in 2006. - The statistical sample framework for the household survey is based on the 1993 Population and Housing Census, partly updated according to selected sampling segments and a previous count in the field. - Household surveys use a probabilistic, stratified, and multistage design, with selection probabilities calculated for each stage to calculate expansion factors. - The income and expenditure survey is performed throughout the year to take account of seasonal effects. - Household surveys cover residential units; geographic coverage is not complete, since it excludes nine of the 33 departments which have low-density disperse populations and difficult access. ### Price statistics and deflation - Price statistics are available in adequate detail for goods: producer and consumer price indices, index of housing construction costs, index of heavy construction costs, and index of foreign trade, all prepared by the NADS. - For services, adequate price indices exist mainly for public utilities; other services are covered variably: - Education, health, recreation, passenger transport, electricity, and water are covered by the consumer price index (CPI). - Financial, insurance and auxiliary financial services use the total producer price index (PPI) prepared by the BR. - Price statistics are generally consistent with the variables being deflated in terms of price concept, coverage, and reference period. The producer price index is prepared with adequate criteria and breakdown for the national accounts. ### Monthly/quarterly data and compilation sources - Monthly information is obtained for 48 ISIC-R3.AC industrial categories of production, sales and employment. - 68 ISIC-R3.AC industrial categories include information on production, intermediate consumption, fixed capital formation, and variations in inventories; this encompasses data on coffee, coal, and livestock, and inventory changes supplied by the annual manufacturing survey and the annual commerce survey (for large warehouses and general deposit warehouses). - Quarterly account compilers obtain direct monthly and/or quarterly data for all economic activities and, on exceptional basis, for certain products indirectly. - Compilers incorporate results from the Continuous Household Survey, the Survey of Large Stores and Hypermarkets, the Quarterly Building Census, and the Quarterly Indicator of Civil Works, plus foreign trade indices and financial statistics from the GAO on the general government and public financial and nonfinancial corporations. - Monthly/quarterly data and indicators provide a relatively adequate basis for compiling components of expenditure on GDP: - Final consumption draws on: Continuous Household Survey, Survey of Large Stores and Hypermarkets, monthly wholesale trade sample. - General government expenditure is obtained from budgetary executions, financial statements, balance sheets, and cash flow data from the MFPC. - Foreign trade statistics come from records of imports and exports compiled by the NTCD. - Gross capital formation uses: Monthly Manufacturing Sample, Census of Buildings and Civil Works, and import records by product. ### Administrative and government data - Complete government finance statistics are regularly available through financial reports and budgetary executions of the GAO, CO, and BR (balance of payments). The latter reports on current transfers received by the government from the rest of the world. - There could be unregistered accounts kept confidential by the state for national security reasons (examples: transfers from the rest of the world for military purposes and for the fight against drug trafficking). - Information from the CO on budgetary executions provides detailed data to calculate production, intermediate consumption, fixed capital formation, and final consumption expenditure by government services. - Data obtained from military records are generally adequate; clarifications or annexes are requested and taken into consideration in estimation processes. ### Coverage, representativeness, and gaps - Source data are generally in line with recommended definitions, scope, classifications, valuation and time of recording. - Statistics from economic surveys and accounting classifications of public and private institutions are governed by international classifications and use a single chart of accounts. - Basic data are valued at transaction prices and the fiscal period runs January to December. - Sectoral coverage, for both annual and quarterly data, is highly representative (about 80 percent in value-added terms). - Coverage complete for: agriculture, electricity, gas, water, financial services, and government services. - Coverage nearly complete for: communication services. - Coverage around 80 percent for: mining, industry, construction, and health services. - Coverage about 50 percent for: other services. - Services affected by data gaps include: land transport for passengers and freight, offshore maritime and inland waterway transport, certain business services (consulting, machinery leasing, and legal services) and personal services. ### Timeliness and responsiveness - Source data are generally timely, except for the annual manufacturing survey, annual and quarterly imports, and civil works. - Significant delays occur in provision of data to the NADS by public institutions; recent cases cited include ECOPETROL (affecting records for manufacturing industry) and the NTCD (which has still not filed import data for 2003 with the required breakdown and detail). The latter has impeded compilation of final estimates of the rest of the world account for 2003. - The response rate of the private sector is high at over 90 percent. - Data compilation programs set fixed deadlines for respondents and include a timetable for reception and preparation of the national accounts to monitor reception of required data. ### Assessment, consistency checks, and quality monitoring - Source data — censuses, sample surveys and administrative records — are routinely assessed for coverage, sample error, response error, and nonsampling error; results are monitored to guide statistical processes. - The Statistics Methodology and Production Office (DIMPE) presents monthly coverage and quality indicators used as the basis for improvement programs. This supported improvements in the monthly manufacturing sample and strengthening of physical volume indices by industrial establishment. - DIMPE analyzes internal consistency and context to identify atypical values, which are checked with sources; a record is kept of these situations. - Changes to questionnaires are trialed through pretesting; steps are taken to maintain consistency and continuity with previous versions. - A quality index is prepared as part of process control for collection, supervision, critique, and capture processes. In 2005, the annual industry surveys include randomly selected revision to produce a quality indicator. - The accuracy of administrative data and other complementary sources is periodically evaluated; systems exist to ensure data consistency (e.g., a directory of entities for government accounts). - Using data from the annual manufacturing survey and records of goods exports and imports, a Paasche price analysis is performed in accordance with the six-digit national accounts classification to calculate volume indices that capture effects on brands, size, qualities, and countries of origin. - For service surveys, operating income is cross-referenced with information from enterprises reported to the superintendencies and checked against physical indicators (number of passenger kilometers, number of impulses, number of affiliates, or number of students enrolled, as the case may be). *Source: 3.1 Source data (chapter content).* ### 3.3 Statistical techniques ### 3.3 Statistical techniques ### Data compilation and validation - Data compilation procedures are reasonably adequate. - The NADS has developed complete systems for control and output tables, assigning and reconciling the coding recommended in the 1993 SNA manual to each basic source operation. - Seemingly abnormal data are identified and investigated with the direct source and with reporting annexes to verify or amend results. - Imputation and adjustment procedures in cases of no response have reasonably sound foundations. - Auxiliary and reference data are used to compile population estimates. - Appropriate steps are generally taken to validate source data through collection, verification, and validation procedures established during the statistics production process. - Procedures allow adjustments to unit records when clearly justified and make use of annual tools, validation nets, reference ranges, and consistency and validation specifications. - Cluster technique is used in statistical imputation procedures and in analysis of structure and trend to capture homogeneous characteristics of observation units and to find similar donors for imputation, particularly for new observation units without a track record. ### Other statistical procedures and special estimates - Adjustments are made to ensure data compilation adheres to national accounts requirements. - Special and continuous statistics are established for illicit and illegal activities where no continuous statistical information exists, e.g., for the underground economy, illegal crops, and contraband. - Underground economy: estimates are made for the base year for participants registered as employed in household surveys. - Illegal crops: statistical estimation comes from satellite observations that measure cultivated area, to which known yield parameters are applied to calculate production. - Contraband: estimates are based on NTCD statistical procedures distinguishing between open and technical contraband; for open contraband, import declarations are analyzed by tariff line and reception in customs—method used particularly for merchandise arriving from Panama; goods from other origin markets are excluded. ### Production approach — methods and limitations - Detailed annual production estimates compiled for 464 elementary products and 60 economic activities. - Estimates of intermediate consumption compiled with a breakdown including at least all the divisions of the classification. - 25 economic activities: intermediate consumption ascertained indirectly through supply of main inputs (examples: chemical products and animal feed for agriculture; cement and other building materials for construction). - 14 cases: sector measurement uses surveys and financial statements to discern intermediate consumption. - Non-modern services (eight activities): technical coefficients are used (e.g., transport and personal services). - NADS monitors use of fixed coefficients from reference frameworks or other sources; fixed coefficients more than five years old are used frequently (over 30 percent of cases). - In some sectors (construction, education, and nonmodern services such as transport) the initial hypothesis involves a fixed technical coefficient, with subsequent adjustments for imports and supply-demand consistency in balance sheets. - Estimates of value added by the largest industrial groupings (e.g., one-digit ISIC) make significant use of fixed coefficients that are over five years old. - Financial sector valuation includes both interest and changes in prices of securities (capital gains); sources have not reported yields separately, so methods are being explored to break down values. FISIM thus contains a proportion of capital gains/losses which affects the sector’s value added (although not GDP). - Owner-occupied housing: housing modules in household surveys are used to ascertain real and imputed rental values; method for calculating production of housing rental services is independent of measurement of construction sector, producing significant differences between the two indicators. - Work in progress excludes large-scale equipment with long-term processes (e.g., ships) and fishing stocks; includes crops currently growing, standing trees, livestock bred for food purposes, and large-scale construction projects. - Inventory valuation adjustments: inventory data used to prepare production estimates (examples: coffee; refinery charges for refined petroleum products valued at replacement cost at time of use without including valuation gains or losses). - Permanent inventory method is the conceptual basis to estimate fixed capital consumption for the government sector. Fixed capital consumption is not estimated for public and private enterprises that produce financial statements because in 1994 (base year) there were no balance sheets for certain public corporations and only a manufacturing survey was available. - Cash figures are not converted into accruals for the government sector in the 1994 base. Procedures for compiling GDP volume measures are determined by the data sources. - Appropriate deflator/price indices are used to deflate annual production and intermediate consumption at the elementary product level (six digits), aggregated at 2–3 and 4 ISIC digits to give 59 branches of economic activity. Value added at constant prices is obtained through the double deflation method. - Quarterly accounts use indices/data on volume of production to extrapolate value added; volume extrapolators are representative. Technical coefficients calculated from annual accounts at the two-digit nomenclature level determine quarterly value added by branch, assuming short-term stability between value added and the representative production indicator at the given aggregation level. - Product taxes/subsidies volume: estimated by extrapolating tax/subsidy from the base year through a volume extrapolator of transactions subject to the specific tax/subsidy. - Commercial margins volume: estimated by extrapolating base year commercial margins through a sales volume extrapolator. - Volume change in GDP is measured through annual chain indices to better represent prevailing relative price situation. To preserve identities, chain volume index is applied to base year values and resulting discrepancies are distributed between different uses at the most disaggregated level. Base year is to be changed every five to ten years to update information base and preserve identities among macroeconomic aggregates. - Current approach mixes fixed and mobile bases. With an outdated base year (1994), economic structures and relative prices of the base year are out of date. Applying chain indices updates relative prices, but extrapolating base-year values using chain indices preserves base-year structure. Two alternatives to resolve additivity problems: (1) publish non-additive “constant price” data without adjustment (transparent), or (2) distribute discrepancies over components at each aggregation level (distorts component volume changes). The report suggests allowing users to decide on whether to eliminate discrepancies. ### Expenditure approach — methods and limitations - Estimates of GDP by expenditure components are not obtained independently; within supply-use tables at the individual product level, change in inventories tends to be determined residually (with validation efforts using available indicators). - Expenditure estimates compiled using insufficiently detailed classifications. Household consumption classified by purpose (COICOP) per 1993 SNA, but adoption of the GAO as information source has hindered classification of government expenditure by purpose (COFOG) because of data aggregation. - Neither gross capital formation nor change in inventories is compiled by activity type; compiled by type of asset and type of inventory respectively. - Widespread use of fixed coefficients more than five years old (over 30 percent) in estimating main expenditure categories when direct information is not available. - Appropriate techniques used to address compilation problems: final government consumption expenditure excludes secondary sales (concept is production for own use); expenditure by residents living abroad is included in final household consumption expenditure and imports; expenditure by nonresidents in the economy is excluded from final household consumption and included in exports. Expenditure on articles considered stores of value (e.g., jewelry and works of art) is included partially in estimation of objects of value due to shortcomings of basic information. - Adequate procedures for compiling volume measures of expenditure components: exclusive price indices or deflators used to deflate GDP components at higher-than-one-digit level; implicit household consumption deflator consistent with the CPI; final consumption expenditure by government derived by deflating components of cost of production for final use; inventories use the same price index as respective product (valued at basic prices). ### Specific quarterly compilation techniques - Specific quarterly compilation techniques align with internationally accepted good practices. - Denton proportional method used to combine annual estimates with quarterly indicators. - Quarterly compilation system stems from quarterly series based on deseasonalized source data, enabling deseasonalized quarterly estimates. - Supply-use table used includes 132 elementary products and 49 activities. At each level of output, change in inventories is the residual variable, but controlled by several quarterly inventory indicators. - X-11 ARIMA used to obtain deseasonalized quarterly estimates of the national accounts. --- ### 3.4 Assessment and validation of intermediate data and statistical outputs ### Validation against other information - Buyer-seller, income-expenditure, asset-liability, and debtor-creditor relations are compared depending on the case. - Excessive reliance appears to be placed on the information technology platform for these comparisons, risking omission of validation of intermediate results through comparison with other independent sources. ### Assessment and investigation of statistical discrepancies - Systematic procedures are established to assess potential discrepancies in intermediate data regularly. Necessary adjustments are made to eliminate discrepancies, but these should be examined more carefully because they might represent illegal economic activity if the assumption that all illegal crops produced are exported is not fulfilled. ### Investigation of discrepancies and other indicators of problems - Statistical discrepancies between GDP by activity and GDP by expenditure components are investigated within the supply-use table at two levels: reconciliation at current and previous-year prices, chain volume indices calculated, then indices applied to base year values introducing discrepancies stemming exclusively from differences in relative prices between the previous year and the base year; discrepancies are distributed between different uses. - Data are not validated with unofficial estimates from government entities, universities, nongovernmental organizations, and international organizations because their assumptions and methods (econometric methods and trend projections) are not considered fully reliable (examples: estimates of public investment by the MFPC; calculation of industrial production by ANDIS). - No studies have been conducted to guarantee that the bias in GDP estimates is insignificant and stable through time. --- ### 3.5 Revision studies - No revision studies are prepared, which impedes related enrichment of data compilation. --- ### 4 Serviceability ### 4.1 Periodicity and timeliness - Periodicity and timeliness of the statistics are generally in line with internationally accepted dissemination standards. - GDP statistics are disseminated quarterly and annually in accordance with the SDDS. - Quarterly GDP statistics are disseminated within three months following the reference period. - NADS policy: disseminate annual GDP data within six to nine months following the reference period. - Noted exception: preliminary version for 2003 was not disseminated in line with policy, with the pending final estimate expected to be released soon. ### 4.2 Consistency Consistency within dataset - National accounts are internally consistent. A consistent set of GDP estimates is prepared by economic activity and expenditure components. Similar growth rates are obtained from GDP series by production activities and by expenditure categories. Total supply of goods and services coincides with figures on total use obtained independently. GDP estimates at current prices, indicators of volume, and (implicit) deflators are compatible with the “Value = Volume x Price” framework. - Discrepancies exist between estimates of net lending in the national accounts (NADS) and the monetary and financial statistics (BR). - Quarterly GDP estimates are consistent with annual estimates; concepts, definitions, and classifications for quarterly estimates are identical to annual estimates. Consistency over time - Consistent time series exist for the period 1990–2004. When the 1994 base was prepared, series were retroactively extrapolated to 1990–1993. Retroactive extrapolation to 1986–1989 is currently in process. When base changes are made, results under the previous base are compared with the revised one and conceptual and methodological explanations are provided to users. Consistency with other statistical frameworks - Some shortcomings exist in consistency of national accounts with the balance of payments and government finance statistics. Reconciliation is generally possible, particularly with the balance of payments; discrepancies can be traced to differences in classification, basis of recording, and coverage. - Reconciliation with government finance statistics on public investment is difficult, largely because of different estimates prepared by a number of GFS compilers. - Rest of the world account (prepared by the NADS) includes contraband and exports of illegal crops, unlike balance of payments (prepared by the BR). - Differences with government finance statistics: GFS measure effect of government policy while national accounts measure government production; differences in cash/accrual recording exist, though accrual records are now available for government finances and national accounts incorporate these into the new reference base. Partial coverage of fiscal accounts prepared by the MFPC is based on a public sector sample differing from national accounts institutional coverage. GFS compilers at the MFPC sometimes use direct indicators (e.g., central government capital transfers to local governments) partly to cover current expenditure items; national accounts separate out expenditure covering fixed capital formation more precisely. Source data reported by public sector entities can differ between fiscal statistics and national accounts purposes. Despite these issues, statistics can be reconciled with other statistical frameworks. *Source: _cr06356 - 3.3 Statistical techniques* ### 4.3 Revision policy and practice ### 4.3 Revision policy and practice ### Revisions schedule and transparency - The revisions cycle follows an established process that is reasonably stable from one year to the next, but it is not disclosed to the public. - The revision cycle is not made known to the public, although preliminary and/or revised data are clearly identified as such. ### Identification and explanation of preliminary and revised data - At the time of disclosure, users are informed whether the published data are preliminary, and whether data have been revised. - In publications of statistical series and in the database accessed by users, revisions are not explained. - The analysis of differences between preliminary and revised data for the main aggregates is not published. - Studies and analyses of revisions are not carried out (see section 3.5.1. and Table 1, element 3.5). ### Data accessibility and dissemination practice (context relevant to revisions) - Quarterly GDP statistics are disseminated within three months following the reporting period; data on the second quarter of 2005 is to be released by end-September. - Preliminary estimates of quarterly GDP have a current publication lag of 90 days; recommendation to reduce that lag to 45 days. - The public is notified through the Internet of the dissemination of statistics and procedures to gain access; results are presented to the interinstitutional committee and immediately published on the website with notice given to the media. - The NADS publishes on its website tables containing detailed information on complete accounts of institutional sectors and subsectors, supply-use balances at current and constant prices, and six, four, and two-digits of the national accounts, and the supply-use classification at both current and constant prices. ### Metadata and support for interpretation - Documentation of sources and methods is published, including information on concepts, definitions, classification, data sources, compilation methods, statistical techniques, and divergences from internationally accepted standards. - Published methodological documents include (as listed): Metodología de las cuentas nacionales de Colombia base 1970 (republished in 1998); Metodología de las cuentas nacionales de Colombia, April 1998; Metodología por ramas de actividad para el cálculo de las cuentas departamentales, August 2003; Metodología de la cuentas nacionales de Colombia base 1994. Operaciones de bienes y servicios, August 2002; Metodología de los sectores institucionales, November 2003; Metodología de las cuentas trimestrales de Colombia, January 2001; Metodología del sector público colombiano 1986–1989, Statistical Bulletin 470, May 1992. - Metadata from SDDS/GDDS, methodological summaries relating to the SDDS, and other similar descriptions are reviewed and updated periodically. ### User assistance and contact - General contact point for the national accounts: www.dane.gov.co (also shown as www. DANE.gov.co in publications). - Street address published: Transversal 45 No. 26-70 interior 1 CAN Edificio the NADS Bogotá. - Citizen service phone number published: 5978300. - Queries can be made via phone, e-mail, ordinary mail, or visits. The NADS replies to queries on average within no more than five working days. - Recommendation: Provide a direct point of contact for national accounts on the website, enabling users to contact responsible parties directly. ### Key findings related to revision practice (from Data Quality Assessment Framework, July 2003) - Preliminary and/or revised data are clearly identified as such, but the revision cycle is not made known to the public (Table 1, Serviceability 4.3). - Studies and analyses of revisions are not carried out (Table 1, Accuracy and reliability 3.5). - While NADS is committed to release preliminary annual estimates of GDP within six to nine months after the period of reference, the preliminary estimates of the national accounts for 2003—based on annual sources and methods—have not been published yet (Table 1, Serviceability 4.1). ### Recommendations (preserving original priority and wording) High priority - Publish preliminary estimates of the national accounts for 2003 without further delay. - In collaboration with the NTCD, prepare a directory of establishments to provide an adequate basis for sample surveys. - Elaborate a data model to guide the building of a data warehouse aimed at improving the consistency of source data at the micro level that supports compilation of the national accounts as well as the balance of payments and fiscal statistics. - Press ahead with work to change the base year to 2000, preferably by end-2005. Looking ahead, consider a one-off shortening of the cycle for changing the base year in order to take advantage of the wealth of data stemming from the results of the ongoing comprehensive censuses that will become available in the first half of 2006. - Improve the treatment of the economic activity generated by the large illicit sector, moving beyond agricultural output. - Measure GDP volume changes using annual chain indices; the measuring of government transactions should be made on an accrual basis. - Reduce the publication lag of the preliminary estimate of quarterly GDP from 90 to 45 days, which would need to be reflected in the advance release calendar. - Maintain an external relations policy aimed at promptly dispelling doubts, misinterpretation, and questions about the compilation of the national accounts (including the GDP of the manufacturing sector). - Observe the (advanced) release calendar for annual GDP. Other - Develop a price deflator for services. - Ensure consistency between the methodology for calculating production of housing services with the measurement of activity in the construction sector. - To improve estimates of the financial sector GDP, separate capital profits/losses from interest earned on financial instruments. - Work with the BR to estimate financing of the above-the-line operations of the institutional sectors covered in the national accounts. - Provide a direct point of contact for national accounts on the website, enabling users to contact responsible parties directly. *Source: 4.3 Revision policy and practice — _cr06356 - 4.3 Revision policy and practice (IMF country report excerpt)._ ### 0.2 Resources ### 0.2 Resources ### Staff, facilities, computing resources, and financing - The AFPC has "two advisors and seven assistants." - The size of the staff "appears sufficient for the statistical work." - The AFPC "needs more computing resources in order to compile more complete data for the consolidated public sector." ### Measures to ensure efficient use of resources - The AFPC "regularly monitors staff performance, emphasizing the quality and timeliness of the work accomplished." - "There is not a system in place to measure the costs associated with statistics compilation." - The AFPC considers resource use efficient because "the dissemination of statistics is timely and the published reports and short-term indicators bulletins serve policy making." ### Relevance - AFPC and GAO "publish information via the Internet and other electronic means." - "AFPC data users may submit questions and comments through the MFPC’s Internet page." - "The AFPC does not monitor user needs." ### Other quality management — Processes to focus on quality - "The AFPC staff reviews and validates source data before using them for compilation." - "There is no system in place to monitor the quality of the statistical program." - AFPC staff "meet regularly to follow up on the progress of different tasks in the work plan and to take corrective measures to address quality issues," largely related to data on local (regional and municipal) governments. ### Assurances of integrity — Professionalism - AFPC executes its work "in line with the methodology in GFSM 1986 and the Technical Memorandum of Understanding (TMU) agreed with the IMF." - "Quarterly statistics on the outturn of the NFPS, based on flow operations above the line, are produced impartially." - Source selection and statistical techniques "follow the guidelines of the GFSM 1986 and, whenever possible, the GFSM 2001." - Data sources are "the administrative and accounting records of the reporting agencies in the NFPS sample." - AFPC includes "special conceptual studies in the MFPC website" and issues press releases to minimize erroneous interpretations and explain fiscal statistics. ### Assurances of integrity — Transparency and ethical standards - AFPC responsibilities are "established by a decree that is publicly available." - "No document has been prepared that specifically states the terms and conditions of statistical production." - "Selected officials in the MFPC, BR, and IMF have access to the data before publication through the MFPC website." AFPC "does not inform the public about such pre-release access to the data." - "All AFPC publications clearly identify it as the author." - "No advance notice of major changes in the compilation methodology is given to the public," though "publication of the TMU agreed with the IMF allows the public to monitor sources and methods." - Rules for handling confidential materials are "well known by the AFPC staff." Staff are subject to the Civil Service Law, Administrative Career, and the "Single Code of Discipline (Código Unico Disciplinario)." Staff can access regulations through the Intranet. ### Methodological soundness — Concepts, scope, classification, and recording - AFPC compiles fiscal data "in line with the GFSM 1986, adjusted for changes in accounts payable." - GAO compiles accounts "according to the General Plan of Accounts both on an accrual and a cash bases." - GAO data "are consistent with the principles and classifications of the GFSM 2001." The CO "has been working for the last three years on aligning compilation with the recommendations of the GFSM 2001." - Coverage: AFPC sample includes "the most important units of the NFPS" covering above-the-line data for "70 agencies of the central government, 13 social security agencies and funds, decentralized institutions, local governments and related agencies, and nonfinancial public corporations." - Financing data: BR compiles financing data covering "the entire NFPS." CO and GAO "cover the operations of the entire public sector." - Sectorization: Classification and sectorization by AFPC and BR are "broadly consistent with international standards." Financing is "not fully sectorized as it is compiled only at the aggregate level" because AFPC "does not gather complete financing data for public sector units in its sample" and BR's bank credit data are "disaggregated by levels of the public sector, but not by individual public sector entities." - "A functional classification of the NFPS expenditure is not available." - Valuation: "Flow and stock data are generally valued and recorded according to international standards." AFPC values flows "at market prices current at the moment of the transaction." BR, GAO and CO use "current market prices to value transactions and nominal values for stocks." - Exchange rates: "Transactions in foreign currencies are converted to national currency using the average exchange rate at the time of transaction. Balances of financial assets and liabilities in foreign currencies are valued in national currencies at the end-period exchange rate." - Recording basis: AFPC compiles "on a cash basis, with the exception of certain expenditure items that may give rise to accounts payable." Financing data are "adjusted to reflect changes in accounts payable (floating debt)." BR compiles financing data "on a cash basis with appropriate adjustments." GAO and CO use "cash and accrual recording." - Grossing/netting: AFPC, BR, CO and GAO "report flow transactions on a gross basis after deducting corrective operations." BR presents financing operations "on a net basis" in its tables. ### Accuracy and reliability — Source data and assessment - AFPC source data come from "the budget execution of each unit included in its sample." Units report via "a special form designed by AFPC." - AFPC "does not compile financing data except for the central government." - BR uses financial statements "collected through the Superintendency of Banks (SB), MFPC, and direct data gathering." - GAO collects data from "financial statements and reports on budgetary execution submitted by all public sector units." - Forms "are routinely revised to include changes in the General Chart of Accounts of the General Plan of Public Accounting." - GAO "actively encourages reporting agencies (particularly local governments) to improve the quality of accounting procedures" but "resources are insufficient to provide needed assistance to local governments on improving accounting records." - CO data gathering "relies on administrative records, budget execution reports, and balance sheets, with forms regularly revised." - AFPC's special form "requires details on the classifications of revenue and expenditure according to GFSM 1986 recommendations." - Data timeliness: AFPC has agreements for quarterly data "one month after the end of the reference period," though "some entities may experience unexpected delays." For delayed small units, AFPC "uses estimates for the quarter based on annual projections." - BR and DPC monitor status and ensure timely reporting through visits or telephone calls. CO and GAO collect "timely monthly or quarterly information." ### Statistical techniques, validation, and revisions - AFPC and BR "fully document compilation procedures," aligned with GFSM 1986 or 2001. - AFPC "prepares estimates for small units in the sample when these units fail to report by the cut-off date." Preliminary data are "replaced when final data become available." - GAO and CO use accounting records "that are not subject to estimation techniques." Computerized systems manage compilation at both institutions. - Consolidation: All four institutions "follow standard procedures for the consolidation of reciprocal transactions." GAO "has not adjusted the GFS aggregates for differences between inter-government transactions" when compiling central and general government data for the IMF’s GFSY. - Conversion/bridge tables: AFPC and BR use "conversion (derivation) tables aligned with GFS-accepted concepts and classifications." CO has "bridge tables"; GAO has a "conversion system for the computerized compilation" for GFSY reporting. - Validation: AFPC "reconciles quarterly data on the fiscal balance with available financing data prepared by the BR." GAO and CO "do not conduct similar validation" of NFPS unit reports against other sources. BR "has no system to validate intermediate data against other information" but "compares its debt data to data compiled by other institutions." - Discrepancies: AFPC, BR, CO and GAO "routinely assess the reported data, checking for internal consistency, and consistency over the time." Discrepancies are "immediately discussed with the reporting agency." - Reconciliation practices: GAO "participates in special committees responsible for reconciling fiscal figures with other national compilers." GAO "does not engage in bilateral data reconciliations with creditor institutions or donors." BR and CO "compare debt data with information provided by creditors." - Revisions: "In general, the AFPC does not have a regular revision schedule and revision studies are not conducted on a routine basis." In IMF stand-by contexts, "compilation adjustments have been made." BR "maintains a database to facilitate revisions and make projections" under the TMU. BR, CO, and GAO analyze repetitive revisions to strengthen quality control. GAO staff "write memoranda on revisions" and keep internal records. ### Serviceability — Periodicity, timeliness, and consistency - Periodicity: "The AFPC disseminates NFPS data on a quarterly basis, exceeding SDDS prescriptions." Central government operations statistics are "disseminated on a monthly basis," and "domestic and foreign debt data compiled by the DPC are released on a monthly basis." - Timeliness: AFPC dissemination is "consistent with SDDS prescriptions on timeliness." Annual NFPS data are "published during the course of the quarter following the reference period." Quarterly data are "published 4–5 weeks after the reference period," compared with a SDDS prescription of "two quarters after the reference period." Public debt data are "published on a monthly basis by the DPC." - Consistency within dataset: "The sum of quarterly data equals annual figures." However, "flow fiscal data are not routinely reconciled with changes in financial assets and liabilities." Flows and stocks of nonfinancial assets "are not reconciled because of the lack of estimates for nonfinancial assets." - Historical consistency: AFPC keeps records of annual data beginning from "1994" and of quarterly data from "1998." These data are "consistent regarding methodology, classification, and consolidation." - Cross-dataset reconciliation: Routine reconciliation with other macroeconomic datasets "is not conducted, except in the case of financing data prepared by the BR, which is cross-checked with BOP data." AFPC "does not conduct reconciliation of the GFS with the national accounts." - Revision policy: "The AFPC does not have a systematic and regular schedule of revisions." - Identification of preliminary/revised data: AFPC "identifies preliminary data through footnotes" but data "are generally considered final." - Publication of revision studies: "The AFPC does not engage in the routine study of revisions. Consequently, no such studies are published." * _cr06356 - 0.2 Resources * ### 5. Accessibility ### 5. Accessibility ### 5.1 Data accessibility - Presentation and comparability - AFPC presentation of statistics targets the needs of the authorities; needs of non-official users are generally not considered. - Data are compared with earlier periods and ratios to GDP are shown. - Detailed data are published only for the central government. - Dissemination media and format - Data compiled by the AFPC are regularly published on the MFPC webpage. - Time series on key aggregates for the NFPS and the central government are disseminated via the Internet. - Detailed data, however, are published only for the central government. - Release schedule and simultaneity - AFPC’s dissemination practice observes the advance release schedule published in the IMF’s DSBB. - If data compilation is finalized earlier than scheduled, data are disseminated earlier on the MFPC’s website, thereby exceeding the SDDS recommendations. - AFPC maintains a database of e-mail addresses of many users; new data/documents are emailed to users and released simultaneously through the MFPC webpage. - Access to non-routinely disseminated statistics - When requested, AFPC replies immediately if data are readily available. - Otherwise, requested data are sent to the interested party in two to four weeks, generally via e-mail. ### 5.2 Metadata accessibility - Documentation on methods and standards - Data presentation is aligned with authorities’ needs; other users are seldom considered. - Data allow comparison of key new estimates and ratios to GDP with earlier periods. - Data on NFPS operations disseminated by AFPC do not include explanatory methodological notes. - SDDS metadata posted in the DSBB concisely indicate that the compilation methodology broadly adheres to the GFSM 1986. - Level-of-detail and user adaptation - Users have noted that detailed data are scarce and that published GFS are too summarized. - User needs are not monitored regularly by the AFPC. ### 5.3 Assistance to users - Contact points and user communication - MFPC website includes an electronic comment system for questions or suggestions. - Staff are designated to check requests and direct them to appropriate MFPC departments. - Catalogs and charges - AFPC does not publish catalogs. - The bulletin on short-term indicators is disseminated free of charge. ### Recommendations (High priority) - Strengthen authority - Strengthen the authority of the MFPC/AFPC to collect information from any public sector institution. - Require that all proposals for legal action with possible impact on reporting, storing, or dissemination of fiscal data be reviewed by the AFPC, with its opinion taken into account at the highest ministerial level. - Reconciliation and responsibilities - Make the MFPC/AFPC responsible for systematic reconciliation of fiscal aggregates (including public investment) produced by different institutions (GAO, CO, BR, NADS, NPD, NTCD, GDPC, and other internal units of the MFPC). This will require a greater resource endowment. - Financing and disaggregation - AFPC should compile data on the financing of each of the NFPS entities, requiring reporting agencies to provide data on below-the-line operations. - The BR should disaggregate net credit to the public sector by individual entity to permit better validation of fiscal outturn. - Classification and user needs - MFPC should develop the functional classification of the nonfinancial public sector expenditure. - Monitor user needs and ensure published data meet demands for more detail, longer time series, and methodology information. - Transparency and advance release calendar - Increase efforts to make users aware of data dissemination practices. - Explain differences between datasets used for policymaking (AFPC) and auditing/control (GAO, CO). - Inform the public that selected officials in charge of formulating macroeconomic policy, policymakers, and the IMF receive fiscal data in advance of public release. - Intensify publicizing the advance release calendar, including by hyper linking the MFPC’s website to the SDDS. - Resources and computing - Provide more computing resources to improve AFPC compilation, supporting efforts by MFPC’s Fiscal Support Directorate, FOSIT, and GAO. ### Table 2 summary findings (Data Quality Assessment Framework, July 2003; compiling agency: Bank of the Republic) - Prerequisites of quality - No single law defining responsibilities of various public sector units compiling fiscal statistics. - AFPC appears to have sufficient staff but needs more computing resources. - AFPC publishes information on e-diskettes and the Internet; user needs are not monitored. - Processes monitor quality of reports received; no system to monitor quality of statistical programs beyond staff meetings. - Assurances of integrity - Selected officials of the MFPC, BR, and IMF have access to data before public release on the Internet; this is not made known to the public. - Authorship of AFPC publications is clearly identified. - Changes in methodology under IMF arrangements are posted with the Technical Memorandum of Understanding. - Methodological soundness - Classification generally in line with international standards, but AFPC, GAO, and CO do not prepare a functional classification of NFPS expenditure. - SDDS metadata indicates compilation methodology aligned with GFSM 1986. - Accuracy and reliability - AFPC collects data from a limited sample of 70 public sector entities to ensure timeliness and acceptable reliability; out-of-sample data are inadequate. - AFPC does not have a regular or transparent schedule of revisions; statistical discrepancies are not investigated. - GAO does not conduct bilateral data reconciliation with creditor institutions or donors; CO compares debt data with creditors. - Serviceability - Periodicity and timeliness: practice largely not observed. - Consistency: AFPC reviews internal consistency (vertical and temporal checks); no routine reconciliation of GFS with other macroeconomic statistics. - Revision policy: AFPC does not have a regular and transparent schedule of revisions; data labeled as preliminary when first published. - Accessibility - AFPC data on NFPS operations do not include explanatory methodological notes. - SDDS metadata in DSBB notes alignment with GFSM 1986. - Data are structured and summarized for informing fiscal policymaking; users are not consulted on needs, but may request unpublished detail from MFPC website. ### Selected monetary statistics-related accessibility and resources (excerpts) - Legal and institutional environment for monetary statistics - Responsibility de facto delegated to the Bank of the Republic (BR). - Reporting requirements: Article 97 of the Organic Law of the Financial System (Decree 663 of April 2, 1993) and Article 18 of the Law of the BR (Law 31 of December 29, 1992). - Chapter 7 of External Circular 100 of November 24, 1995, requests monthly balance sheets and income statements from financial corporations. - Confidentiality: Article 326 of the Organic Law of the Financial System; Article 18 of the Law of the BR; External Circular 007 (January 1996). - Data sharing and coordination - BR departments share data through electronic media; Accounting Department sends monetary balance sheet via e-mail to Financial Sector Section (FSS) of TEID; Center of Information uploads to EIS database. - SB validates sources and provides data to BR electronically; BR granted read access to SB server via Novell network. - Confidentiality and access controls - Legal basis for confidentiality: Article 15 of the Constitution. - BR access to individualized data restricted to authorized staff via password and smartcard. - Internal Resolution 2 of 1999 of the BR: BR cannot publish statistics that contain individual information on natural or legal persons. - Reporting mandates, timeliness, and sanctions - External Circular 061 of September 3, 1997: financial corporations must submit monthly balance sheets and additional information within ten days after the reference month; for June and December, 20 days are allowed. - If unable to meet deadlines, entities may request additional time; SB generally grants five additional days. - Article 208 of Law 795 (amendment to Organic Law of the Financial System) of January 14, 2003, establishes sanctions including warnings, pecuniary sanctions up to 128,500,194 pesos (equivalent to 55,765 U.S. dollars in August 2005), suspension of staff up to five years, removal of staff, and closing of the institution. - Resources for monetary statistics - Financial Sector Section (FSS) currently has 11 employees engaged in collecting, compiling, disseminating, and analyzing monetary and financial statistics. - Staff qualifications: all have at least college degrees in economics; one has a graduate degree; three are candidates for graduate degrees. - Staff deployment: seven staff involved in weekly tasks; three staff involved in compiling monthly analytical accounts. - Training: three staff have attended IMF Brasilia Training Center or CLAMS courses. - Computer resources adequate; contingency plan CLUSTER ensures backups in two different buildings. - Budget process: budget reviewed in December each year; Board of Directors approves. - Limitations - Human resources are limited for regularly verifying the quality of data and timely implementation of improvements. - No specific provisions to compare resources for compiling monetary statistics with those for other macroeconomic data. *Source: _cr06356 - 5. Accessibility* ### 0.3 Relevance ### 0.3 Relevance ### 0.3.1 Relevance and practical utility of existing statistics - The BR does not have a proactive policy of regularly consulting users for feedback; input from the general public is limited. - Feedback is generally received through responses to specific data requests; the BR website has a client services section with e-mail addresses for areas responsible for different statistics. - The BR is redesigning its website to adapt to latest international standards and improve user-friendliness. - BR staff visit other central banks and attend seminars/courses organized by international and regional organizations (e.g., IMF, World Bank, and CLAMS) to assess relevance of monetary statistics. - The FSS pursues adoption of internationally accepted standards for monetary statistics and follows recommendations of the Monetary and Financial Statistics Manual (MFSM). ### 0.4 Other quality management #### 0.4.1 Processes to focus on quality - BR subscribes to the Special Data Dissemination Standards (SDDS). - Internal programs and the Ethical and Behavioral Guide declare excellence as a basic BR value: search for highest levels of quality, productivity, innovation, and opportunity. - BR promotes staff participation in capacity-building courses, finances post-graduate degrees, and designs plans and educational programs to strengthen human resources. #### 0.4.2 Processes to monitor quality of the statistical program - No internal BR unit formally advises on information quality; FSS recognizes quality problems across phases from collection to dissemination and is conducting a project to improve sectorization of accounting records. - FSS, in collaboration with the SB, routinely verifies that financial corporations’ reporting practices follow established guidelines and routinely checks source data. - Weekly, FSS reviews data submissions and informally contacts reporting institutions in case of errors or nonreceipt; written communication may be sent depending on gravity. - IMF STA technical assistance missions improved monetary statistics: multisector statistics mission (1997) and monetary and financial statistics missions (1999 and 2000). - FSS consults with other central banks and STA on data quality issues and monitors new regulations and developments in monetary and financial statistics on an ongoing basis. #### 0.4.3 Quality considerations in planning the statistical program - Insufficient sectorization in the call report led to project introducing a new call report form; new form introduced in March 2005 expected to significantly improve monetary statistics. - User feedback is analyzed and used in work plans; additional time series have been disseminated to meet user needs. - SDDS adherence promotes recognition of trade-offs between data quality and timeliness. Production of monetary statistics is fully automated with checks and validations at every compilation stage. - Delays in bank reporting and stringent validation have sometimes led to sacrificing timeliness to ensure data quality. - Internal audit of statistical procedures led to Internal Circular 239 (June 26, 2002) containing procedures for production of monetary statistics intended to guarantee information quality. ### 1. Assurances of integrity #### 1.1 Professionalism - Legal framework: Constitution (Article 371) and Law of the BR (Article 1) ensure BR autonomy; Article 372 of the Constitution and Article 34 of the Law regulate appointment of the Board of Directors and empower the Board to establish policies and criteria. - Articles 1 and 51 of the BR’s Internal Work Regulations require staff diligence and independence; FSS staff feel free from undue influence in compiling statistics. - Training Section designs plans and educational programs to strengthen human resources, increase productivity, and improve competitiveness. - Professional skills required at hiring: technical expertise, educational background, experience, and knowledge of monetary themes; staff encouraged to attend seminars, pursue post-graduate studies, and participate in meetings. #### 1.1.2 Source and methodological choices - Choice of source data is based solely on statistical considerations and aligned with MFSM. - Principal sources: balance sheet of the BR and balance sheets and additional sectorized information of the rest of the financial corporations; chart of accounts updated for new instruments and institutions. - Principal sources for weekly aggregates: Formato 281 (summarized balance sheet) and Formato 086 (repo operations with the central government). #### 1.1.3 Commenting on misuse or erroneous interpretation - No major cases of misuse identified; informal policy directs misinterpretation queries to the pertinent department for response by e-mail, formal letter, or meeting. - FSS keeps a log of every communication; explanatory notes included in monthly bulletin Revista and on website. - Annual meeting with the media is held to clarify concepts that might be misinterpreted. ### 1.2 Transparency - Terms and conditions under which statistics are produced and disseminated are posted on the Data Standards Bulletin Board (DSBB). - All laws, decrees, external circulars, and resolutions are available in public libraries free of charge; laws and decrees posted on BR’s website (http://juriscol.banrep.gov.co:1025). External circulars and resolutions posted on the SB’s website (http://www.superbancaria.gov.co). - No government agency outside the BR has access to monetary statistics prior to release. - All published monetary information bears BR logo and source captions; compiling department cited at end of each statistical table. BR does not explicitly request acknowledgement when statistics are reproduced. - BR announces methodological/source changes in Revista and on website when data are disseminated; explanatory notes and both old and revised data published for a reasonable period for comparison and splicing. ### 1.3 Ethical standards - Staff behavior guidelines: Law 734 (February 13, 2002) disciplinary code; Internal Work Regulation (Internal Resolution 4 of September 12, 2003) contains staff code of conduct and confidentiality guidelines (Article 51). - Internal Disciplinary Control Unit created to handle behavior issues. Employees must not be employed elsewhere while working at the BR except for university teaching. - Value Strengthening Group created and Ethics and Behavior Guide issued in September 2003; essential values: honesty, responsibility, respect, commitment, loyalty, excellence, and dedication. - Law 734 available on BR’s website; Internal Work Regulation and Ethics and Behavior Guide available on BR intranet; new staff informed and periodic reminders issued. ### 2. Methodological soundness #### 2.1 Concepts and definitions - Analytical framework reflects IMF’s Draft Guide to Money and Banking Statistics in International Financial Statistics (1984); implementation of STA recommendations (1997, 1999, 2000) moves BR toward MFSM adoption. - Concepts and definitions follow MFSM for identifying institutional units and valuating financial assets; departures in coverage, classification/sectorization, concept of residency, accrual accounting, and presentation of gross assets and liabilities are recognized and explained. BR has posted metadata on compilation procedures and plans to post metadata on deviations from MFSM. - Depository corporations survey (DCS) consolidates BR and other depository corporations and generally follows MFSM structure. Only subsectors not covered: mutual funds and capitalization societies. - Monetary aggregates compiled and disseminated: - Monetary base: currency issued and reserves of financial intermediaries. - M1: currency held by the public and demand deposits of the central government, state and local governments, public nonfinancial corporations, other nonfinancial corporations, other resident sectors, and other financial corporations in DCs. - M2: M1, savings deposits, and certificates of deposit issued by DCs and held by above subsectors. - M3: M2 and other deposits of the above subsectors in DCs. - Credit aggregates compiled and disseminated: - Credit provided by the main financial intermediaries to the subsectors mentioned above. - Credit net of provisions provided by the main financial intermediaries to the subsectors mentioned above. - BR’s monetary aggregates depart from MFSM recommendations by including central government deposits; this may overstate net claims on the central government in the DCS. FSS makes adjustments when calculating banking financing of the government deficit. - BR compiles general balance sheet of the BR and assets, liabilities, and income statement of main financial intermediaries with detailed disaggregation of assets and liabilities as described in source. #### 2.2 Scope - Scope of the DCS is broadly consistent with MFSM guidelines. Financial system of Colombia, as of August 26, 2005, consists of: - (1) BR; - (2) ODCs, comprising 22 commercial banks, 3 financial corporations, 26 commercial financing companies, 1 first-tier cooperative, 5 financial cooperatives, 3 special financial institutions, 26 mutual funds, and 5 capitalization societies; and - (3) OFCs, comprising 44 insurance companies, 2 cooperative insurance companies, 10 reinsurance companies, 13 pension and unemployment funds, 7 special financial institutions, 29 trust companies, 6 general bonded warehouses, 1 cattle fund, 55 insurance brokerage corporations, Colombia Stock Exchange, 11 exchange houses, and stockbrokers. - Present BR surveys: central bank survey (CBS); other depository corporations survey (ODCS); monetary survey; DCS; and a financial corporations survey (FCS) with limited coverage. CBS comprises accounts of the BR; ODCS comprises accounts of commercial banks, financial corporations, commercial financing companies, a first-tier cooperative, financial cooperatives, FEN, BANCOLDEX, and FINDETER. Monetary survey consolidates BR and commercial banks. DCS consolidates BR and ODCs. - Institutional coverage of monetary statistics excludes some deposit-taking corporations: mutual funds and capitalization societies. Relative importance as of July 2005: - Mutual funds represented approximately 1.75 percent of M3 and 1.83 percent of credit. - Capitalization societies considered negligible (not even 1 percent of M3 or credit). - BR is aware of the need to include mutual funds and capitalization societies when they become relevant. Institutional coverage includes DCs’ domestic headquarters and all domestic branches. - Current compilation focuses on the DCS, disseminated monthly in the Revista and BR’s website. OFCs, excluding special financial institutions, are not included in monetary statistics and were not assessed in this document. OFCs have a significant impact on credit aggregates; FSS should make efforts to obtain data for them. *Source: _cr06356 - 0.3 Relevance* ### 2.3 Classification/sectorization ### _cr06356 - 2.3 Classification/sectorization ### Classification/sectorization systems (principles and instrument categories) - Principles underlying the classification of financial instruments in the monetary statistics are broadly consistent with the MFSM recommendations. - Financial instruments in the balance sheets are classified according to degree of liquidity and legal characteristics of creditor/debtor relationships; assets and liabilities are classified by institutional sector of counterparts. - The classification is the same in the BR and ODCs since all financial corporations follow the same chart of accounts. - Broad instrument categories distinguished: - (1) monetary gold and SDRs; - (2) currency and deposits; - (3) securities (including shares); - (4) loans; - (5) other accounts receivable/payable; - (6) nonfinancial assets. - Financial derivatives: - Included in surveys but recorded as credit to other nonfinancial corporations because the chart of accounts cannot identify sectoral counterparts. - Recorded on a net basis; net amount is small. - Insurance technical reserves are not identified; they are negligible in the balance sheet of the DCs. - Repurchase agreements: - Treated as collateralized loans in assets. - Repurchase agreements with money holding sectors are included in liabilities as deposits and as loans with other sectors. ### Sectorization implementation, data collection forms, and recent changes - Insufficient sectorization in the chart of accounts of financial corporations required additional data collection to supplement balance sheets. - Formato 325: - Sectorized major balance sheet accounts in national and foreign currency. - Was insufficient to fully sectorize many accounts. - Formato 338: - Introduced by the SB in March 2005 to expand number of sectorized balance sheet accounts and update list of public nonfinancial institutions used in sectorization. - Financial corporations started reporting on Formato 338 with data for April 2005 and reported historical data from December 2004. - Use of Formato 338 by FSS: - The FSS is partially using information from Formato 338. - Sectorization of new accounts in Formato 338 are not yet used; data corresponding to old accounts contain sectorization based on updated list of public sector institutions. - FSS will use the richer information contained in Formato 338 in the near future; expected to increase quality of monetary statistics significantly and assist BR to more accurately calculate financing to the public nonfinancial sector. ### Residency criterion and sectorization issues - BR uses residency criterion to distinguish resident and nonresident in most DC accounts. - Chart of accounts of financial corporations does not distinguish residents and nonresidents. - BR obtains sectorization of its accounts with nonresidents from its accounting records. - For other DCs, BR obtains sectorization of most accounts with nonresidents through Formato 338. - Some accounts with nonresidents are currently being assigned to resident units; this will be corrected once Formato 338 is fully used. ### Sectoral classification structure used for monetary statistics (sectors and aggregates) - MFSM-recommended sectoral subsectors (1993 SNA basis) referenced: - (1) central bank; - (2) other depository corporations; - (3) other financial corporations; - (4) central government; - (5) state and local government; - (6) public nonfinancial corporations; - (7) other nonfinancial corporations; - (8) other resident sectors. - CBS and ODCS sectorization practice: - Domestic accounts sectorized into three groups: nonfinancial public sector, financial sector, and private sector; some less important balance sheet accounts not sectorized. - Financial sector includes BR, monetary depository corporations, nonmonetary depository corporations, and other financial corporations. - Nonfinancial public sector includes central government, state and local governments, and public nonfinancial corporations. - Private sector includes other nonfinancial corporations, households, and nonprofit institutions serving households. - CBS presentation (derived from BR balance sheet): - Assets: foreign assets (official reserve assets and other foreign assets) and domestic assets. - Domestic assets broken down into: - (1) claims on the central government; - (2) claims on the rest of the nonfinancial public sector; - (3) claims on monetary depository corporations; - (4) claims on nonmonetary depository corporations; - (5) claims on other financial corporations; - (6) claims on the private sector; - (7) unclassified assets. - Liabilities: short- and long-term external liabilities and domestic liabilities. - Domestic liabilities broken down into: - (1) currency in circulation; - (2) liabilities to the central government; - (3) liabilities to the rest of the nonfinancial public sector; - (4) liabilities to monetary depository corporations; - (5) liabilities to nonmonetary depository corporations; - (6) liabilities to other financial corporations; - (7) liabilities to the private sector; - (8) shares and other equity; - (9) unclassified liabilities. - Liabilities to different resident sectors contain an instrument breakdown. - ODCS presentation (derived from accounting balance sheets and Formato 338): - Net positions with institutional units, broken into assets and liabilities. - Net positions broken into net foreign assets and net domestic assets. - Net domestic assets broken down into: - (1) net claims on the BR; - (2) net claims on the central government; - (3) net claims on decentralized agencies; - (4) net claims on public nonfinancial corporations; - (5) net claims on state and local governments; - (6) net claims on monetary depository corporations; - (7) net claims on other financial corporations; - (8) net claims on the private sector; - (9) shares and other equity; - (10) net unclassified assets. - Liabilities to different resident sectors contain an instrument breakdown. - DCS (consolidation of CBS and ODCS) presentation: - Shows foreign assets on a partially net basis, with gross positions clearly identified because medium- and long-term foreign liabilities are presented separately. - Credit to the private sector presented on a gross basis. - Credit to rest of resident sectors presented on a partially net basis, with gross positions clearly identified because liabilities not included in monetary aggregates are subtracted from corresponding sector. - Components of broad money shown with sectoral breakdown. - Shares and other equity and unclassified assets and liabilities clearly identified. - Presentational departures: - Presentational format of CBS, ODCS, and DCS departs somewhat from MFSM survey presentations. - FSS is developing new presentation to fully align to MFSM in the near future. ### Basis for recording — Valuation (market prices and valuation practices) - MFSM general recommendation: value financial assets and liabilities at market prices or market-priced equivalents (fair values); exception—loans at book values (outstanding principal plus accrued interest) without adjustment for expected loan losses. - Stocks and flows in foreign currency should be converted at market exchange rate prevailing at recording time. - Holding gains and losses from changes in market/fair values should be recorded separately in a revaluation account. - BR valuation practices: - Values monetary gold monthly using international market price at BR balance sheet closing date. - BR and other financial corporations value foreign-currency-denominated instruments at the midpoint exchange rate prevailing on the balance sheet closing date. - SDRs and IMF positions: - For CBS, values of SDR holdings, reserve position in the Fund, and SDR allocations are adjusted in accordance with reports provided by the IMF. - Discrepancies between these data and accounting data are recorded in unclassified assets and liabilities. - Securities valuation: - Holdings of foreign-currency-denominated securities in BR and ODCs valued at market prices using international market quotations. - Marketable securities issued by residents valued at market price using quotations on the Colombia Stock Exchange. - Nonnegotiable securities valued using the fair value method. - Valuation guidelines contained in External Circular 100 of November 27, 1995; amended by External Circulars 033 of August 2, 2002; 050 of December 13, 2002; 021 of June 5, 2003; and 024 of June 6, 2003. - Loans: - Recorded at book value without adjustment for expected loan losses; provisions are separately identified. - Loans include accrued interest in the monetary statistics. - Shares and other equity: - Assets: valued at market prices. - Liabilities: valued at historical values. - Financial transactions recorded when ownership changes, using market prices at which assets and liabilities are bought and sold; transactions recorded when new securities are issued and securities redeemed. - Valuation gains and losses included in profit/loss accounts in monetary statistics. - Flow data: - MFSM recommends compiling stocks and each of three flow components: transactions, revaluations, and other changes in volume. - In Colombia, financial corporations do not provide financial information on flows; BR derives flows from stock data for internal use. - Financial Accounts Section of TEID compiles flow of funds accounts annually and compares them with monetary statistics. ### Basis for recording — Accrual recording practices - MFSM accrual accounting principles: accrued interest should be incorporated into outstanding amount of asset/liability; revenues and expenditures recorded when they fall due regardless of cash flow timing. - Current practice in BR: - BR does not consistently apply accrual accounting to all accounts. - Balance sheets of DCs provide for allocation of accrued interest into outstanding amounts, but not all financial instruments include accrued interest. - Formato 338 contains sectorization of accrued interest for most accounts. - In CBS, only foreign assets included in official reserve assets and securities include accrued interest. - In ODCS, only deposits held abroad, securities, and loans include accrued interest. - Accrued interest on other financial instruments is included in unclassified assets and liabilities. - Transactions recording: - Generally recorded at transaction time by means of simultaneous electronic recording. - Electronic payment systems ensure simultaneous recording, especially between BR and other financial corporations. - When mismatches occur, reconciliation attempts are made; adjustments follow credibility priority: BR, ODCs, OFCs. - FSS is aware of deviations from accrual principles and is taking steps to improve quality. ### Grossing/netting procedures - Assets and liabilities of financial corporations are collected and compiled on a gross basis in line with MFSM. - Claims on a particular transactor are not netted against liabilities to those transactors. - ODCs report data on a gross basis in the balance sheet; positions between ODCs are consolidated and presented in “other items net” in the ODCS. - DCS presentation: - Foreign assets presented on a partially net basis, with gross positions clearly identified due to separate presentation of medium- and long-term foreign liabilities. - Credit to private sector presented on a gross basis. - Credit to rest of resident sectors presented on a partially net basis; liabilities not included in monetary aggregates are subtracted from corresponding sector. - Deposits of central government are included in monetary aggregates (departure from MFSM). - Positions between BR and ODCs and claims between ODCs are netted out and included under unclassified assets/liabilities. - FSS is aware of deviations from international standards and is taking steps to conform statistics to MFSM. ### Source data — Comprehensiveness and data collection programs - Sources for CBS: - General balance sheet of BR prepared by AD. - Monthly monetary balance sheet produced by FSS used to generate sectoral balance sheet of BR and CBS monthly. - Sources for ODCS and sectoral balance sheets of ODCs: - Balance sheets of financial corporations following same chart of accounts. - Additional sectorization information in Formato 338 submitted to SB; SB transmits to BR. - Once available in EIS, FSS produces ODCS monthly. - Mutual funds: - Source data available at BR beginning in September 2004; previous months available in summarized call report form. - Sectorized information is not available for mutual funds. - Chart of accounts contains sectorization of securities, permitting reasonable sectorization of mutual fund assets; liabilities mainly shares from private sector. - FSS should make efforts to introduce Formato 338 for mutual funds. - FSS prepares daily, weekly, and biweekly reports on monetary statistics (see footnote 16 for details). - Comprehensive and updated list of all financial corporations (distinguishing ODCs and OFCs) is available on SB’s website and in BR’s EIS; additions, deletions, mergers, changes updated. - SB, BR, and financial corporations analyze development and modification of balance sheets and call report forms; SB field tests new forms and allows financial corporations to generate and comment; balance sheets and call report forms reviewed periodically. - SB and BR agreed all information needed for compiling monetary statistics should be channeled through SB to allow collection of supplementary information supporting chart of accounts; SB consults FSS on source data changes. ### Source data — Approximation to definitions, classification, valuation, and timing - Ongoing efforts by BR to use source data that reasonably approximate MFSM definitions, scope, classification, valuation, and time of recording. - Source data for CBS provide sufficient information to derive accounts per MFSM recommendations. - Limitations: - Chart of accounts lacks residency criterion and does not allow proper sectorization for many instruments. - Partial sectorization exists for securities, repurchase agreements, accrued interest, and interbank loans, but contains an "others" category used inappropriately by financial corporations. - Main operations not sectorized due to chart limitations: loans, deposits, financial derivatives. - Responses: - Introduction of Formato 325 and expanded Formato 338 (March 2005) to improve sectorization; FSS is introducing Formato 338 into monetary statistics. - Accounting principles: - Chart of accounts follows International Accounting Standards (IAS). - SB aligns chart of accounts to latest accounting standards via legal mandate in Article 326 of the Organic Law of the Financial System (modified by Law 510 of 1999) and Article 37 of Law 521 requiring SB to issue general accounting norms for financial corporations. - Data collection programs at SB and BR are sufficiently flexible to accommodate new methodological, technological developments, and prospective increases in number of institutions. ### Source data — Timeliness - Data collection system allows timely compilation of monetary statistics, released in the monthly Revista. - FSS compiles sectoral balance sheet of BR monthly based on daily data. - Provisional balance sheet data are available the day after the reference month; AD requests additional eight days to obtain final data on international reserve transactions. - ODCs required to send monthly balance sheets and additional sectorized information to SB under External Circular 061 of September 3, 1997, within ten days after reference month; exception: June and December data allowed 20 days. - SB takes an additional five business days to validate returns and makes them available to FSS. - Information required to compile monetary statistics is generally received on time; some DCs report with sporadic delays. - DCs request an additional five days to report December data. *Source: _cr06356 - 2.3 Classification/sectorization* ### 3.2 Assessment of source data ### _cr06356 - 3.2 Assessment of source data ### Assessment of source data and reporting procedures - Source data (censuses, sample surveys, administrative records) are routinely assessed for coverage, sample error, response error, and nonsampling error; results are monitored and made available to guide statistical processes. - The AD and the FSS routinely analyze the source data for the CBS for accuracy; it is uncommon to find any errors in the data. - Source data for the ODCS are routinely analyzed for underreporting/misreporting: - The SB has automated procedures to monitor accuracy of data reported by individual financial corporations, checking internal consistency and identifying out-of-trend movements; problems are confirmed with reporting corporations and records are kept with the returns. - Once data are sent to the BR, the FSS runs automated procedures in EIS to validate information a second time; a more stringent check is done for additional sectorized information. - The Public Finance Section of the BR compares sectorized information for the major public nonfinancial sector with fiscal accounts; validations include searches for new accounts, use of inexistent accounts, trends, incorrect use of negative signs or currency, economic meaning of operations, and consistency with other sources. - The FSS routinely contacts pertinent corporations directly for clarification and keeps the SB informed; ODCs are requested to provide explanations and, when needed, to resubmit corrected data to the SB. - The FSS and ODCs collaborate closely in investigating discrepancies; ODCs provide explanations and resubmit corrected data when requested. ### Statistical techniques and data handling - BR statistics are primarily based on balance sheet data and additional sectorized information prepared by DCs and generally do not rely on statistical estimation techniques. - Balance sheets and additional sectorized information are designed for computer programs to enable prompt data processing; electronic reporting and processing minimize processing errors. - If DC reporting is delayed, BR carries forward the data of the last month of the late reporting bank into the current month’s statistics; once missing data are received, the database is updated. Missing balance sheet items are not accepted by validation routines. - The BR does not use other statistical procedures/techniques to adjust data to improve coverage; when actual data do not approximate MFSM guidelines, the FSS does not use specific procedures to adjust data from various sources (coverage excludes mutual funds and capitalization societies; no attempt is made to broaden coverage by using estimated data). - Monetary statistics disseminated by the BR are not seasonally adjusted; data are end-of-period values derived from balance sheets and additional sectorized information of the BR and ODCs. ### Assessment and validation of intermediate data and outputs - The BR uses other internal sources to validate balance sheet data reported by DCs, including: - Trust and Securities Department data on holders of public sector securities. - Deposit Accounts Section data on ODCs deposits at the BR. - Treasury and other public institutions data on repurchase agreements and deposits placed at ODCs. - The FSS frequently investigates statistical discrepancies and determines major contributing factors; it compares BR data with reported data for ODCs to ensure interbank positions are insignificant. - Interbank position discrepancies for current periods are at an acceptable level and can be explained by different recording times; when large discrepancies are noted, FSS contacts the financial corporation and requests corrected data; FSS policy is not to change reported data until revised data are received. - When significant statistical fluctuations are observed, FSS investigates with the reporting corporation and cross-checks other sources; if corrections are not submitted or data unverified, FSS carries over last month’s figures. - FSS investigates classification/sectorization errors or omissions as possible sources of discrepancies. - Monetary statistics are presented only in stock terms; flows are derived from stocks for internal use only. ### Revision studies and practices - Data for the previous month are always revised when the current month is processed; revisions mainly stem from incorrect use of accounting principles by ODCs. - Data for previous months are revised when the SB informs FSS that revised data have been received; when June and December data are processed, data for the previous June and December are also revised. - FSS and reporting corporations communicate regularly to pinpoint discrepancies; investigation findings are taken into account in compilation for subsequent periods, documented, and sent to the SB. - FSS analyzes revisions and documents them in internal documents; users are not routinely informed of revisions, but major methodological revisions are explained in methodological notes published in the Revista and on the BR’s website. ### Serviceability: periodicity, timeliness, and consistency - Periodicity: - The CBS and DCS are disseminated monthly consistent with SDDS specifications. - Major aggregates for the central bank and monetary and credit aggregates are disseminated on a weekly basis, surpassing SDDS periodicity requirements. - Timeliness: - CBS is disseminated two weeks after the end of the reference month. - Major weekly aggregates for the BR are disseminated eight days after the end of the reference week. - DCS is disseminated six weeks after the end of the reference month — Colombia takes the flexibility option in SDDS timeliness due to delays in receiving June and December data for ODCs. - Weekly monetary and credit aggregates are disseminated eight days after the end of the reference week. - FSS is working on disseminating monthly data for other months sooner. - Internal consistency: - Monetary statistics are generally consistent within the dataset; CBS presents details on assets and liabilities to the ODCs and vice versa in the ODCS; assets and liabilities with OFCs are clearly presented. - Assets and liabilities of the BR and ODCs within the DCS are consolidated and included in other items net. - Discrepancies arise from lack of sectorization detail (particularly among commercial banks) and timing of transaction recording; sectorization problem expected to be resolved when Formato 338 is fully introduced. - Reconciliation of stock and flow data is not possible because flow data are not compiled for CBS and ODCS. - Statistics for the entire financial corporations sector and flow-of-funds accounts are not compiled. - Temporal consistency: - CBS and ODCS are available in EIS for more than ten years based on the same methodology; historical series are reconstructed as far back as reasonably possible after methodological changes. - Changes in definitions, concepts, and breaks in series are documented in methodological notes and disseminated in the Revista and on the BR’s website; particular figure behavior is explained in footnotes. - Cross-domain consistency: - Monetary statistics are consistent with balance of payments and fiscal statistics. - Regular procedures reconcile foreign assets and liabilities of DCs in monetary statistics with the IIP. - Procedures exist to reconcile financial corporations’ positions with subsectors of the public nonfinancial sector and fiscal statistics; differences are identified and corrected. ### Revision policy, dissemination, and accessibility - Revision policy and practice: - BR revises monetary statistics when methodology, institutional/financial instrument coverage, source, or data errors change; no explicit revision policy is disseminated to the public. - Preliminary data are clearly identified in publications; a general note in the Revista and on BR’s website states monetary data are preliminary. - Users are not informed whenever data are revised; revised data are published with the same level of detail as preliminary data. - Major revisions are accompanied by methodological notes in the Revista and on BR’s website. - Data accessibility and formats: - Monthly and semiannual Revista contains clear tables; printed monthly Revista presents several tables on monetary and credit aggregates with components for last two years monthly and last five years annually; expanded semiannual Revista presents sectoral balance sheets, surveys, and aggregates; both are available on BR’s website. - BR’s webpage monetary statistics section contains surveys for BR, ODCs, monetary DCs, DCs, and financial corporations with limited coverage. - Data on BR’s website available monthly beginning in December 2002; unpublished monthly data are available upon request from January 1994 for the surveys and from December 1924 for the monetary and credit aggregates. - Weekly Statistics (printed and on BR’s website) presents tables and charts for monetary and credit aggregates; Main Economic Indicators bulletin (published in 1998) contains data beginning in 1923 for monetary and credit aggregates. - Data in bulletins and on BR’s website include sufficient detail and internal consistency; commentaries on current-period developments are included. - Dissemination media/formats are adequate for internet users; statistical series can be downloaded into Acrobat and an Excel spreadsheet; data can also be accessed through the IMF’s DSBB. - Release schedule: - Statistics are released on a preannounced schedule consistent with SDDS; advance release calendars are available on the BR’s website in the quarter prior to publication. - The Revista is released on a preannounced schedule: the 20th of every month. - BR disseminates statistics simultaneously to all users at the date/time specified in the advance release calendar. - Non-routine data: - Upon request, BR provides unpublished and nonconfidential data free of charge; users can e-mail the address posted on BR’s website to request non-routinely disseminated data; customized tabulations are provided. - Metadata accessibility: - Documentation on definitions, sources, periodicity, institutional coverage, and compilation procedures is disseminated on BR’s website and on IMF’s DSBB; SDDS metadata and related descriptions are reviewed quarterly and updated regularly. - FSS is preparing summary methodologies and expanded documentation, including departures from international standards, guidelines, or good practices, to be published shortly on BR’s website. - Levels of detail: - Compilation document on BR’s website contains general user information; more detailed information published in monthly BR Reports. - BR’s website contains periodic publications: Essays on Economic Policy, Drafts on the Economy, and Inflation Report. ### Assistance to users and publications - FSS provides timely and knowledgeable assistance on request; contact points for monetary statistics by telephone and e-mail are identified on BR’s website, in the Revista, Weekly Statistics, and the DSBB. - Assistance to users is monitored regularly to ensure prompt responses. - BR’s website has a section for students and teachers with didactic material on BR, banks, financial system, and their role. - BR has a catalog of publications listing bulletins, reports, essays, and drafts; prices for statistical publications are disclosed; electronic publications are free of charge; paper publications are by subscription with a small charge; catalog updated annually. ### Recommendations High Priority - Publish monetary aggregates excluding the deposits of the central government, as recommended by the MFSM. - Press ahead with work underway to improve sectorization, including positions with nonresidents, now available in the call report form 338; consider revising the chart of accounts to ensure reporting from banks meets statistical needs comprehensively, reducing the need for supplementary information. - Incorporate accrued interest into all underlying financial instruments and sectors. - Introduce formal procedures for consultations with users, such as user surveys and periodic meetings. Other - Expand institutional coverage of monetary statistics to include mutual funds. - Ensure presentational format of the various surveys are in line with the MFSM. - Prepare a medium-term plan to further expand institutional coverage of the financial corporations’ survey to include insurance companies, pension funds, and other financial intermediaries. - Widen institutional coverage of monetary statistics to include capitalization societies, as they become relevant. - Give advance notice when major changes in methodology/source data are to be introduced. - Disseminate documentation on departures from internationally accepted standards, explaining practical and/or analytical reasons. *Source: _cr06356 - 3.2 Assessment of source data* ### 0.1 Legal and institutional environment ### 0.1 Legal and institutional environment ### Responsibility, legal authority, and publication - The Bank of the Republic (BR), established in 1923 by Law 25, has been responsible for collecting, compiling, and disseminating balance of payments statistics since 1938 and is publicly recognized as the sole institution with this responsibility. - BR authority to collect information is drawn from Law 31 of 1992, Decree 2520 of 1993, Decree 2080 of 2000, Resolution 8 of the BR in 2000, and BR Internal Resolution 2 of 1998. - Decree 2080 of 2000 designates the BR as the entity responsible for the registry of information on foreign capital investment in Colombia and Colombian capital investment abroad. - Resolution 8 of 2000 (Board of Directors of the BR) and BR responsibilities include registry of external debt assets and liabilities and management and investment of official international reserves. - Although not explicitly named in legislation as the official compiler, the BR’s long-standing role since 1938 and the cited powers establish its recognized authority; no laws conflict with the BR’s authority to compile balance of payments statistics. - BR Internal Resolution 2 of 1998: “historic statistical registers are accessible to the public and will be published under the responsibility of the Executive Director responsible for producing the data.” ### Data sharing, coordination, and interagency arrangements - Law 31 Article 18 (1992) grants BR authority to require cooperation from other institutions and agencies; institutions are obliged to provide timely information. - BR has established agreements and participates in technical committees to facilitate access and consistency. Examples of arrangements: - Exports and imports of goods—agreement with NADS for exports and National Tax and Customs Directorate (NTCD) for imports; BR participates in the Committee on External Trade in Goods. - External public debt—Statistical Committee on Public Finance (Minister of Finance, BR, Controller General of the Republic, National General Accounting Office, National Planning Department). - Travel—cooperation with NTCD on Immigration Declaration Forms. - Travel and Hotel Services—cooperation with Colombian Hotels Association (Cotelco). - Committee on Services Statistics created (NADS, NPD, Minister of Industry Commerce and Tourism, and the BR). - BR supplies data to other agencies (e.g., “Rest of the World” account in NADS; total external debt to Minister of Finance). - Data are generally shared in electronic format. ### Confidentiality, legal protections, and safeguards - Confidentiality guaranteed by Law 31 Article 18 (1992) and Decree 2520 Article 50 (1993); BR staff bound to strict confidentiality. - Administrative Cundinamarca Tribunal ruling (August 2005) recognized confidential nature of BR information. - Survey inquiries include statements notifying reporters that information is covered by statistical confidentiality and will be published in aggregate form (example: Survey of Trade in Services). - Internal rules and Law 31 require BR staff to guard confidentiality; BR staff also governed by Disciplinary Code of Law 734 of 2002. - Procedures to prevent disclosure: - Staff review outputs for indirect disclosure and aggregate outputs to prevent identification of legal entities or individuals. - Access to BR databases requires special permission; balance of payments compilers and BR research staff have controlled access and must comply with Law 31 (1992), Decree 2520 (1993), and internal confidentiality agreements. - Confidential documents are shredded when no longer needed; Computer Security Unit manages system security. ### Legal mandate and measures to ensure reporting - Article 18 in Law 31 of 1992 and Decree 2520 of 1993 guarantee BR access to required information; Decree 2080 of 2000 supports registries of foreign investment and investment abroad. - BR functions supporting statistical collection: - Foreign exchange authority measuring transactions in domestic foreign exchange market and resident bank accounts abroad registered at BR. - Management and investment of official international reserves. - Registry and information on foreign investment in Colombia and Colombian investment abroad. - Registry and data on external debt operations. - Noncompliance and misreporting consequences: - Registries of external debt, investment, and exchange transaction declarations: reports to supervisory authority (e.g., Superintendent of Banks) for sanctions. - CPIS noncompliance: BR report to Superintendent of Banks or Superintendent of Securities. - BR may suspend operations with financial institutions that transgress Law 31 (1992). - Companies failing to provide or misreport foreign investment data may be sanctioned by Superintendent of Companies. - BR engages private sector via periodic management meetings; results posted on BR Internet site. - BR provides assistance to respondents (phone, written, in-person); CPIS survey includes a “help” page on BR website and contact lines. ### Checklist findings (from source checklist) - No formal procedure for consultations with users, such as user surveys or periodic meetings. (Noted in source checklist.) - Other quality management: X - Assurances of integrity subitems marked: Professionalism X; Transparency X; Ethical standards X. --- ### 0.2 Resources ### Staffing and expertise - External Sector Section consists of ten staff members in the Technical and Economic Statistical Information Department. - All staff have professional university degrees; seven have post-graduate degrees in economics. - Average individual experience in balance of payments statistics: 10–12 years. - BR sponsors graduate studies domestically and abroad and supports training via IMF (Washington and Brasilia), World Bank, and CEMLA (Mexico). - Staff rotation includes junior interns; staff give seminars and participate in international advisory roles (examples: IMF mission on remittances; World Bank-BIS seminar on remittances; IMF working groups on FDI). ### Computing, facilities, and funding - Statistical software and databases used: SAS, FOX, Oracle, Excel; databases include external trade, external debt, portfolio investment, surveys of services, CPIS, inquiries on foreign exchange information system. - Back-up practices: each BR unit manages back-up on CDs; automatic e-mail reminders to staff; BR technology center copies server information including historic balance of payments series. - Physical facilities and other resources adequate for required tasks. - Funding for statistical compilation assessed as adequate, with budgeting practices that support planning; some budgetary restraints possible for implementing new surveys due to staffing, training, and technology costs. - Budget process: External Sector Section discusses needs annually with Department Director and Executive Director; BR Board revises and approves annual budget per Regulatory Internal Circular DPP 95 of 2001 and BR Decree 2520 of 1993. ### Efficiency and resource management - Management evaluates professional staff at least every year. - Efficiency gains pursued via periodic review of work processes (e.g., source selection for services). - BR engages outside expert assistance ad hoc (example: conversion from BPM4 to BPM5). - Budget reviews include cost estimates and usefulness when proposing surveys (example: introduction of quarterly survey on cross-border expenditure followed budgetary process). - IMF exploratory questionnaire on possible Coordinated Direct Investment Survey (CDIS) noted as potential future funding need. --- ### 0.3 Relevance ### User consultation, dissemination, and relevance monitoring - Users can direct inquiries via BR website to responsible area; methodological notes published in Revista del Banco de la República, Reportes del Emisor, Temas del Emisor, and Borradores de Economía. - BR staff participate as lecturers at national universities and international/regional meetings and seminars; staff contribute to technical committees and advisory roles. - BR participates in technical committees on External Trade in Goods, Services (Committee on Services Statistics), and external debt (Statistical Committee on Public Finance) to evaluate usefulness and identify emerging needs. - BR undertakes studies on remittances, external debt, and the sectoral balance sheet to identify new data requirements. - BR conducts meetings with private sector; results published in press releases and on BR website. Earlier meetings focused on balance of payments topics (international reserves, current transfers and remittances, foreign investment); recent meetings addressed more general economic themes. - The BR has established a Client Services site on its Internet website to help direct the public to specific BR content. ### Noted methodological and presentation issues (Methodological soundness) - Monetary aggregates include the deposits of the central government, which is a departure from the MFSM. - Accrued interest is not incorporated into all underlying financial instruments and sectors. - Foreign assets and credit to resident sectors, except credit to the private, are presented on a partially net basis in the DCS. - The full sectorization, including positions with nonresidents, available in the recently introduced call report form Formato 338 is not yet fully used in the monetary statistics. - The presentational format of the surveys is not fully in line with the MFSM. - Checklist markings from source: Concepts and definitions X; Scope X; Classification/sectorization X; Basis for recording X. --- *Source: _cr06356 - 0.1 Legal and institutional environment (PDF chapter/section).* ### 0.4 Other quality management ### 0.4 Other quality management ### 0.4.1 Processes are in place to focus on quality - Quality is a stated cornerstone of statistical work; the Guide to Ethical Conduct identifies “Excellence—the search for the highest values in quality, productivity, innovation, and opportunity in the work of its staff.” - Human resource strengthening: - Promotion of participation in training courses. - Financing of post-graduate studies at internationally recognized universities. - Plans and educational programs to increase productivity, organizational competitiveness, and efficient workplace performance. - Balance of payments compilers participate in seminars and courses administered by international organizations such as the IMF, the World Bank, and CEMLA to share experiences and improve methodology. ### 0.4.2 Processes are in place to monitor the quality of the statistical program - Systematic monitoring and review processes exist for quality: - Surveys address response rate, follow-up measures, editing, and investigation of changes. - Staff emphasize timeliness of information publication. - Compiling areas have access to expert guidance from the External Sector Section and international consultation. - Each compiler manages a network of specialized information; periodic reviews have resolved some data inconsistencies. ### 0.4.3 Processes are in place to deal with quality considerations in planning the statistical program - Quality considerations are incorporated into source selection (internal and other agencies) and survey introduction (example: Survey of Trade in Services). - Emphasis on quality results in written documents, follow-up meetings, and data analysis. - Prioritization in compilation: quality, availability of resources, and timeliness. - Example decision: compilers evaluated providing a data series in six weeks instead of eight weeks but kept the eight-week release because the negative effect on data quality outweighed earlier availability. ### 1. Assurances of integrity #### 1.1 Professionalism - 1.1.1 Statistics are produced on an impartial basis - Legal and institutional independence: - Article 1 of Law 31 of 1992 states the BR is a legal entity and will function as a public institution subject to the constitution, with its own legal regimen. - The BR is totally independent in producing and disseminating balance of payments information. - Governance: - Every four years, the BR Board of Directors elects the Governor; appointment does not depend on government changes. - The Governor’s term can be renewed up to a maximum of 12 years. - Recruitment and promotion: - Hiring, promotion, and task allocation follow academic credentials, technical criteria, and knowledge/experience in balance of payments. - The Technical and Economic Statistical Information Department has an arrangement with universities to accept interns. - Hiring process includes an academic exam and aptitude test; selection is decided on the basis of a point system. - Promotion involves review by the chief of the External Sector Section, the Director of the Department, and the Head of the Directorate of Economic Studies. - Professional development: - Compilers attend courses and seminars by the IMF, World Bank, and CEMLA covering balance of payments, external debt, foreign direct investment, services, and international reserves. - Publication practices: - Research papers are published with the author’s name after peer review; methodological documents published under the BR name. - Examples of research outputs: External Debt, Investment, and Growth in Colombia 1970–2002; Structure of Transaction Costs in Workers’ Remittances in Colombia 2003, 2004; Balance of Payments and Foreign Exchange Balance in Colombia, An Empirical Comparison 2005; Balance of Payments in the Oil Sector, 2004; IMF Working Paper–“Sectoral Balance Sheet Mismatches and Macroeconomic Vulnerabilities in Colombia, 1996–2003,” July 2005. - 1.1.2 Choices of sources and techniques informed solely by statistical considerations - Data source choices are based solely on statistical criteria; surveys follow international methodological standards and proven statistical techniques (example: Survey of Trade in Services). - Dissemination decisions follow SDDS requirements in coverage, periodicity, timeliness, access to the public, integrity, and quality. - 1.1.3 Right to comment on erroneous interpretation and misuse - The BR comments publicly on misinterpretation or misuse of its statistics. - Communications Department issues press releases and maintains direct media contact; quarterly balance of payments publication is accompanied by a press release. - Example of public rebuttal: response to Portfolio editorial of April 13, 2005, explaining why balance of payments does reflect external flows and providing references. - Explanatory notes are provided to users (example: methodological note on estimation of workers’ remittances published in Reportes del Emisor). - The BR monitors media coverage and posts comments on its Internet site; official positions are stated in Revista del Banco de la República and Reportes del Emisor. #### 1.2 Transparency - 1.2.1 Terms and conditions available to the public - Summaries of selected laws and decrees (example: Decree 2520 of 1993) and Internal Resolution number 2 of 1998 (publication of statistics) are available on the BR website. - Published methodology emphasizes confidentiality; statistical publications clearly refer to sources and responsible parties. - 1.2.2 Internal governmental access prior to release is publicly identified - No internal government access to balance of payments statistics prior to release; embargo includes the Ministry of Finance and the Board of Governors of the BR. - Data are reviewed by the Head of the Directorate of Economic Studies and the Deputy Governor. - Under data sharing with NADS, selected quarterly services data are provided to national accounts compilers as input for the quarterly “Rest of the World” account; this practice is commonly known. - 1.2.3 Products are clearly identified as BR outputs - All balance of payments statistics identify the BR as the compiler. - Publications such as Revista del Banco de La República are clearly identified; management names listed; articles attributed to departments; tables footnoted with appropriate department. - The BR requests attribution when its statistics are reproduced (example: balance of payments trade in goods data used by NADS and NTCD). - 1.2.4 Advance notice of major changes - Users are made aware of major methodological changes at time of publication; explanatory documents are published in Revista del Banco de La República and Reportes del Emisor. - No major changes in methodology, source data, and statistical techniques have been introduced since BPM5-related changes. #### 1.3 Ethical standards - 1.3.1 Guidelines for staff behavior - A clear set of ethical standards is available on the BR Intranet; mission statement defines ethics and behavior: respect, loyalty, honesty, responsibility, duty, excellence (including quality), and service orientation. - Sections address conflict of interest and management of confidential information. - Staff are subject to Law 734DE 2002, a broad disciplinary code for public servants (Chapter 3 lists prohibitions). - Ethical culture: - New staff are made aware of standards upon joining. - Periodic e-mails and staff contests promote ethical standards. ### 2. Methodological soundness #### 2.1 Concepts and definitions - 2.1.1 Conformance with international standards - Overall framework broadly conforms with BPM5; BPM5 introduced in 1999 with historical data revised for 1994–98. - Current, capital, and financial accounts are defined according to BPM5 guidelines. - Double-entry system applied; net residual included in errors and omissions. - Distinction between income and goods & services components maintained. - Financial account records assets and liabilities separately; directional basis used for FDI. - Residence and institutional definitions: - Residents defined in conformity with BPM5 and center of economic interest. - Enterprises are considered residents of territories in which they operate; national legislation mandates incorporation; no unincorporated entities. - One-year rule for construction enterprises applied flexibly. - Mobile equipment residence attributed to operating enterprise’s country of residence. - Offshore entities and enterprises in free zones attributed to the economy in which they are located. - International organizations and supranational authorities are not residents of any national economy. - Units of general government (e.g., embassies, military bases) are considered residents in their own economy. - Individuals may cease to be residents when working continuously for one year or more in a foreign country. - Special purpose entities (SPEs) do not exist in Colombia. - Other conceptual points: - Reserve assets defined considering monetary authorities’ effective control and availability for use. - Distinction between inbound and outbound transportation made at the point after goods are loaded on board at the customs frontier of the exporting country. - Basic criterion for defining FDI enterprises in Colombia is 10 percent ownership by a nonresident. - Deviations from concepts and definitions are kept under review. #### 2.2 Scope - 2.2.1 Scope consistency with standards - Scope broadly consistent with BPM5; included transactions consistent with BPM5: - goods for processing, repairs on goods, nonmonetary gold, purchase of computer software, mineral exploration, e-commerce, insurance, reinvested earnings (inward only), intercompany lending, investments in real estate (inward and outward), portfolio investment of the private sector, trade credits, short-term debt transactions, and noncash transactions. - Exclusions and gaps: - Estimates of unrecorded trade are not included; robust estimates for illegal exports have not been prepared by NADS or the BR. - Government bonds: - Government bonds and other bonds issued locally and held by nonresidents are included. - Using CPIS implemented in 2001, the BR identified some bonds issued abroad by the Colombian government during 2001–2002 and purchased by residents; some of those bonds were purchased by Colombians in the secondary market. - The BR is identifying transactions between residents to remove them from the balance of payments per BPM5 residency criteria. - Coverage: in principle, all resident institutional units engaged with nonresidents are covered; deviations are kept under review. #### 2.3 Classification/sectorization - 2.3.1 Conformance with standards - Classification and sectorization broadly conform with BPM5; institutional units classified to relevant sector per BPM5. - Transactions generally classified along standard BPM5 components. - Noted classification practices and deviations: - Borrowing and lending between nonfinancial foreign direct investors and their direct investment enterprises are classified under other investment, not under FDI, because data sources do not identify these as FDI transactions. - Interest on this intercompany debt is recorded under “Investment Income-Other Investment” instead of “Investment Income-Direct Investment-Income on debt (interest).” - For the 10 percent ownership test of FDI equity, in some cases holdings of all nonresident investors in a specific enterprise or from a specific country are combined rather than assessing each individual nonresident investor or related group. - Authorities stated approximately 97 percent of inward FDI enterprises in Colombia meet the 10 percent criterion; impact on inward FDI is minimal. Similar figures are not available for outward FDI equity. - If compilers determine equity transactions do not meet the 10 percent threshold, transactions should be reclassified to portfolio equity; income would then be recorded as “Investment Income-Portfolio investment-Income on Equity” instead of “Investment Income-Direct Investment-Income on equity.” - Capital account: - No capital account transactions are recorded in the balance of payments. - Capital transfers in cash have been difficult to identify; per BPM5 para. 344, if serious doubt exists whether a cash transfer is current or capital, classify as current transfer. - Migrants’ transfers have not been separately identified and are included indistinguishably in other components. - Banking sector reporting: - Loan transactions of the banking sector are classified separately from currency and deposit transactions. - No currency and deposit liabilities are reported for the banking sector since nonresidents have not been permitted to have bank deposits in Colombia (exception: diplomats and nonresident embassy members, considered very small). - New regulations will allow Colombian nonresidents to have bank accounts in Colombia to pay mortgage payments; these will be included in the balance of payments. - Short- and long-term attribution in other investment is made according to original maturity of the instrument. - Deviations in classifications are kept under review. *Source: _cr06356 - 0.4 Other quality management* ### 2.4 Basis for recording ### _cr06356 - 2.4 Basis for recording ### 2.4 Valuation and recording principles - Market prices are used to value flows and stocks in line with BPM5 conventions: - Total imports and exports are valued on an f.o.b. basis. - Monetary gold is valued at market price. - Financial instruments generally traded on a regular basis are valued by directly using market price quotations. - Nontradable financial instruments are valued at nominal value. - Exceptions and practical treatments: - Portfolio-Assets-Debt Securities-Banks: flows are estimated from stocks and the value of the transaction does not exclude valuation and other changes because identifying those factors is not currently possible. - International reserves: BR accounting identifies transactions and valuation adjustments for price and exchange rate using the statistical model OPICS; only transaction values are recorded in the balance of payments for international reserves. - When no market price is available: - Gifts are valued using customs valuations. - Grants are valued according to the value declared by the donor. - There are no substitute measures for transfer pricing between affiliated enterprises. - Foreign currency conversion: - Transactions in foreign currency are converted using the midpoint exchange rate prevailing in the market on the transaction date. - When the actual exchange rate is not available, the average exchange rates for the shortest applicable period are used. ### 2.4.2 Time of recording (accrual basis) - Transactions are recorded on an accrual basis; change in ownership governs recognition and time of recording. - Change of ownership of goods is recorded at time of clearance by customs. - Services are recorded when entered in enterprise books. - For most financial instruments bearing interest, accrual of interest costs is recorded when interest accrues rather than when paid or due. - Exception: interest on external public debt is recorded when paid (cash basis) because of source-data recording practices; comparative studies indicate the difference between accrual and cash recording for this item is minimal. - Dividends are recorded on the date payable; for direct investment abroad, dividends are recorded on the date paid (the latter does not follow international standards). - Reinvested earnings on direct investment (inward) are recorded in the periods when earned. - Loan drawings are entered at time of actual disbursement; loan payments are entered when due for payment. - Debt arrears and private sector default: - Public and financial sectors do not have debt arrears. - Current sources do not identify loan payments of the private nonfinancial sector that are not made when due. ### 2.4.3 Grossing and netting practices - Current transactions are recorded on a gross basis; no transactions are recorded to date in the capital account. - Withholding taxes are recorded gross; taxes deemed payable by the recipient are recorded under current transfers. - For outward direct investment, income cannot be disaggregated into withholding tax and tax deemed payable. - Financial account transactions are recorded on a net basis, separately for individual asset and liability components. ### 3. Accuracy and reliability — Source data - Data collection programs and core data sources: - Core sources: surveys, international transactions reporting system (ITRS), and administrative data; supplemented by other available sources. - Surveys cited: - Quarterly Survey of Trade in Services (sample). - Quarterly Survey on Cross-Border Expenditure—through land-border crossing points (sample). - Monthly Survey of External Assets of Public Sector Enterprises (census of 26 public enterprises such as ECOPETROL and TELECOM). - Annual BR survey with financial intermediaries on transaction costs of workers’ remittances. - A comprehensive and up-to-date business register maintained by the BR provides the basis for sample surveys. - BR does not conduct household surveys. - Sampling and survey design: - For the Quarterly Survey of Trade in Services: most important respondents are all included; a sample is determined for the rest of the frame. No threshold and the sample size is large, minimizing sampling error. - Quarterly Survey on Cross-Border Expenditure: - Outsourced to a private firm under BR confidentiality provisions. - Two reporting forms: Form 1 (census of persons and vehicles crossing the border); Form 2 (systematic sample recording expenditure, length of stay, purpose, and other variables) and used to estimate totals. - Data entry into a database designed for BR validation; BR staff meet quarterly with the firm. - Survey instruments are pilot-tested; questionnaires discussed with businesses and associations; changes are discussed with respondents. - ITRS and administrative sources: - ITRS: coverage integrated with bank supervisory authorities’ bank register; sufficient detail for transactions via banking accounts and in cash; no thresholds; reporting instructions discourage use of “Other” and prohibit netting of balance of payments transactions. - Main administrative data sources include: - International merchandise trade statistics: exports from NADS; imports from NTCD. - External assets of banks: Financial Sector Section of the BR. - International reserve assets: Accounting Department of the BR. - Government external transactions: Ministry of Finance, Ministry of Foreign Affairs, Ministry of Foreign Trade. - Traveler data: NTCD-BR immigration form “Luggage & Monetary Instruments Representative of Cash, Customs Declarations for Travelers” at airports. - All insurance companies provide monthly balance sheet information. - Reporting forms for debt of public sector enterprises record stock, flow, exchange rate, currency and interest, instrument-by-instrument and credit-by-credit. - Superintendent of Companies and Superintendent of Securities provide information for direct and portfolio transactions, including income. - Financial institutions’ reporting forms lack residency breakdown (but break down currency); nonresident transactions are estimated with supplementary information provided directly to the BR in a closely monitored procedure. - Openness and monitoring of developments: - Periodic meetings with financial market participants and business community. - Monitoring of financial press, research papers, and international standards. - BR staff participate in Direct Investment Technical Experts Group (DITEG) consultations and other international seminars/technical missions. ### 3.1.2 Approximation to methodological requirements - Source data generally approximate definitions, scope, classification, valuation, and time of recording adopted by the BR. - Specific deviations and treatment: - Administrative codes identify goods crossing the border but not changing ownership (excluded) and goods not crossing the border (included). - Robust estimates for illegal exports have not been prepared by NADS. - External debt data generally follow BPM5 recommendations, but some bonds issued abroad by the Colombian government during 2001-2002 purchased by residents were included in the balance of payments; BR is identifying resident-held secondary-market transactions to remove them where possible. ### 3.1.3 Timeliness - Data collection and processing timetables meet dissemination timeliness and periodicity requirements: - Data on exports and imports in goods are received from NADS and NTCD eight weeks before the quarterly release. - Example survey timetable: deadline for reporting 2005 third quarter data for services is November 30, 2005 (eight weeks after the end of the reference period); BR will publish third-quarter data 12 weeks after the end of the reference period. - BR rigorously follows up with late reporters. - Response rate for the Quarterly Survey on Trade in Services (Exports and Imports) for Q1 and Q2 2005 was between 86 and 92 percent. ### 3.2 Assessment of source data - Routine assessment and validation: - Sampling error in the Survey on Trade in Services is considered minimal due to large frame and no threshold. - Nonresponse handled by carry forward techniques by type of service. - Nonsampling errors (coding, processing) are monitored; automated SAS program used in Cross-Border Expenditure survey for edit and validation. - Source data analyzed within the revision framework: - Each quarter, revisions are carried out for the preceding four quarters. - Annual data for 2002 are considered final, except for methodology changes permitting retroactive revisions as far back as needed. - Atypical values and outliers are identified and confirmed with respondents by phone; confirmations are recorded. - Cross-checks: annual CPIS compared with external portfolio assets of banking sector; ITRS validated against monthly remittance data from exchange houses to the Superintendent of Banks. - BR reviews high or atypical ITRS values weekly and follows up with reporting banks. - Administrative data accuracy: - External debt reviewed with the Statistical Committee of Public Finances. - Leasing transactions cross-checked between bank debt data and NTCD import data. - NTCD-BR traveler form data are captured by an outsourced service with an automated validation system; External Sector Section staff review outputs. ### 3.3 Statistical techniques - Compilation procedures and processing: - Use of SAS, FOX, and Oracle to flag errors and verify tabulations. - Adjustments to unit records are made only when clearly warranted and identifiable. - Nonresponse: rigorous follow-up for surveys; carry forward techniques used where necessary. - No grossing-up factors used; no adjustment for undercoverage or population out of scope for the Survey on Trade in Services because the frame is monitored regularly and there is no threshold. - Misreported ITRS transactions are clarified with reporting banks; classification problems are resolvable through follow-up. - BR is developing a project with the Committee on Services Statistics to create an annual survey to complement the quarterly survey for more detailed information. - Other adjustments and validation: - Freight and insurance information on import declaration forms allows imports to be reported f.o.b., eliminating the need for an estimated percentage adjustment. - Quarterly assessment of freight income in relation to value/volume of trade flows. - Income payments are reported inclusive of withholding tax; no adjustment needed for payments. Similar source information is not available for income receipts. - Telecommunications services reported gross by companies; no adjustment needed. - No source information currently available to adjust securities transactions in secondary markets. - Bilateral comparisons used to validate trade data, but no adjustments are made owing to differing methodologies, timing, and source data. - Travel data verification uses multiple sources: airport and land-border traveler surveys, Aero Civil passenger counts, credit card information, hotels, and tour operators (ITRS is not used for travel data). - For international reserve assets, transactions are distinguished from valuation changes electronically using OPICS. - Unrecorded trade: a reliable statistical technique to estimate illegal exports and imports and corresponding contra-entries needs to be developed; development will require emphasis on reliability and timeliness for quarterly statistics. *Source: _cr06356 - 2.4 Basis for recording* ### 3.4 Assessment and validation of intermediate data and statistical outputs ### 3.4 Assessment and validation of intermediate data and statistical outputs ### 3.4.1 Validation practices - Intermediate results are validated against a wide range of data sources. - Examples of validation: - Oil sector balance sheets are used to validate estimates of withholding taxes on income. - Information reported in the financial press is used to verify high-value direct investment and other transactions (example: purchase of the enterprise Bavaria by the South African company, Sab Miller Company). ### 3.4.2 Assessment and investigation of statistical discrepancies in intermediate data - Series behavior is cross-checked with related series and indicators. - Reported financial flows and investment income are regularly assessed against corresponding stock data in the international investment position statistics. - A reconciliation table is published on the website showing changes in stocks from one end period to the next in terms of: - flows, - changes in prices, - exchange rate changes, - other adjustments. - Quarterly assessments: - Freight income data are assessed in relation to the value/volume of trade flows. - Travel-related data are analyzed against immigration authority records on international travelers and data from hotels, tour operators, and airlines. - Supplementary validation: - Immigration records on Colombian residents who leave the country and do not return are used to validate remittances data. ### 3.4.3 Investigation of statistical discrepancies and other indicators of problems - Staff monitor developments in errors and omissions to understand drivers (for example, in relation to changes in the exchange rate). - Bilateral data comparisons are carried out for trade in goods, external debt, and FDI to validate datasets. - External comparisons performed: - Selected external debt transactions compared with Inter-American Development Bank (IDB), the IMF, and the World Bank. - Comparisons with Bank for International Settlements (BIS) banking data and reported data on deposits abroad of the nonbank sector (Table 7B Locational Banking Statistics). - Source data used by the BR to calculate these comparisons include: - records of resident individuals and companies with bank accounts abroad registered at the BR, - ITRS records for accounts not registered with the BR. - Note on unrecorded trade: - When a statistical technique is developed to estimate contra-entries for unrecorded trade, further analysis of these data comparisons will be useful. ### Key statistics and factual points (Assessment & validation) - Reconciliation table explaining stock changes is published on the BR website. - Comparisons are made with IDB, IMF, World Bank, and BIS data where applicable. --- ### 3.5 Revision studies ### 3.5.1 Routine studies and internal use - Revisions to the balance of payments are periodically assessed. - Analyses of revisions include: - size of revisions, - impact on the current account, - impact on the financial account, - impact on errors and omissions. - BR staff analyze reasons for modification to improve compilation processes. - Recent revision examples: - BR revised balance of payments data for exports of goods that were not previously identified in customs reports; this statistical change was discussed in the Committee on External Trade and documented. - Documentation practices: - Studies are conducted on reasons for revisions and adequate documentation is maintained on large revisions (example: analysis of revision to external debt of the nonfinancial private sector for 1997-2002 made available internally). - Gaps: - Analysis is not formally carried out on direction and magnitude of revisions, nor on long-term revision patterns. ### Key statistics and factual points (Revisions) - Example internal study period: 1997-2002. --- ### 4 Serviceability ### 4.1 Periodicity and timeliness - 4.1.1 Periodicity: - Balance of payments statistics are disseminated quarterly as per SDDS requirements. - 4.1.2 Timeliness: - Quarterly balance of payments statistics are disseminated within one quarter after the reference period, pursuant to SDDS requirements. - Annual balance of payments data are disseminated when fourth quarter statistics are disseminated. ### 4.2 Consistency - 4.2.1 Internal consistency: - Concepts, definitions, and classifications for producing quarterly and annual balance of payments statistics are the same. - Sums of quarterly and annual statistics are consistent. - Over the long run, net errors and omissions have been relatively small and stable. - Over the last three years (2002-2004), errors and omissions as a percentage of exports have averaged 1.2 percent in Colombia, while two other countries of similar size in the region have averaged 4.3 percent and 3.7 percent. - Financial transactions are reconciled with changes in the international investment position; a reconciliation table (transactions, exchange rate, price, other changes) is disseminated regularly on the BR website. - 4.2.2 Consistency over time: - Balance of payments statistics are consistent over time—annual statistics since 1994 and quarterly statistics since 1996. - When changes in source data, methodology, or techniques are introduced, historical series are reconstructed as far back as reasonably possible (example: introduction of BPM5 methodology in 1999 led to historical data revision for 1994–98). - Detailed methodological notes identify and explain main breaks in component time series (example: introduction of surveys for trade in services in 1999). - Unusual changes in economic trends are explained in footnotes in the balance of payments publication and database. - 4.2.3 Consistency with other data sources/frameworks: - Trade in goods data are reconciled with international merchandise trade received from the NTCD and the NADS; differences are explained. - Balance of payments statistics are reconciled with the “Rest of the World” account in national accounts; last reconciliation carried out on 2002 data. - Noted differences in the reconciliation: - Export data for national accounts include an estimate for the production of illicit agricultural commodities. - Import data for national accounts include an estimate for contraband. - Exports and imports of services are higher in balance of payments owing to better coverage in the Survey on Trade in Services. - A minor difference exists in data on international cooperation. - An adjustment is made by the national accounts in transfers. - All other accounts are consistent. - Initiative underway between agencies to improve coverage of trade in services. - Banking sector transactions in the balance of payments are consistent with monetary and financial statistics; official international reserve position is also consistent in both sectors. - Balance of payments components comprising external debt data are largely consistent with corresponding debt stocks. - BR is the official compiler of external debt statistics in Colombia as per External Resolution 8 of 2000, facilitating reconciliation of stocks and flows. - BR publishes a reconciliation table for the balance of payments and the international investment position (see 3.4.2). ### 4.3 Revision policy and practice - 4.3.1 Regular and transparent schedule: - Revision cycle is predetermined and reasonably stable year to year. - Each quarter, the previous four quarters are revised. - Annual revisions are carried out when needed and applied to historical data when appropriate. - Revision cycle is associated with availability of source data and is part of normal statistical processes. - The revision cycle and underlying reasons are not formally made known to the public. - Documentation of revisions is included in footnotes of published tables and in the database accessible to users. - When revisions outside the regular cycle are required, they are made known to the public (example: in 2003, a revision was made to remittances from 1998 onwards and main users were notified directly by e-mail). - Commentaries also appear in Revista del Banco de la República. - 4.3.2 Identification of preliminary/revised data: - At dissemination, users are clearly informed whenever data are preliminary or revised. - 4.3.3 Publication of studies and analyses of revisions: - Studies and analyses of revisions are made available internally to the BR, but no official studies have been published. - Analysis of differences between revised and preliminary data is not published. --- ### 5 Accessibility ### 5.1 Data accessibility - 5.1.1 Presentation for interpretation and comparison: - Balance of payments statistics are disseminated according to standard BPM5 components with time series. - Data provided in standard and analytical presentation formats for international publication; national presentation adapted to user needs. - Additional series disseminated to meet user needs (example: FDI data by geographic area; external debt data by type of creditor). - Statistics disseminated in a press release with charts, tables, and commentary on current-period developments. - 5.1.2 Dissemination media and format: - Statistics disseminated in formats to suit user needs and facilitate redissemination in the media. - Press obtains tables and graphs directly from BR Communications Department and cites the BR. - More comprehensive statistics disseminated in Revista del Banco de la República and on the BR website. - Current statistics and longer-term time series accessible free of charge through the BR electronic database. - 5.1.3 Preannounced release schedule: - A calendar on the website announces release dates in advance. - Statistics are released punctually according to the preannounced schedule. - There is also a release for La Revista del Banco de la República. - 5.1.4 Simultaneous release to all users: - Balance of payments statistics are made available to all users at the same time; the public is informed of the release on the website. - The press is not briefed in advance through an embargo process. - 5.1.5 Non-routinely disseminated statistics: - Other general statistics are made available upon request (example: regional distribution of FDI). - Custom tabulations are not prepared by balance of payments staff; however, an electronic database is available to users. - Additional statistics and instructions for obtaining them are available on the website in Excel or PDF. ### 5.2 Metadata accessibility - 5.2.1 Documentation availability: - Latest comprehensive sources and methods document available in La Revista del Banco de la República of November 2002, accessible in Word format on request. - Document contains information on concepts, definitions, classifications, data sources, compilation methods, and other methodological aspects. - Information on survey characteristics (response rates, nonsampling errors, sample frame, etc.) is not included. - A project is ongoing to make the data and related metadata available on the website. - SDDS metadata for the External Sector and SDDS summary methodologies are reviewed and updated regularly; last update was March 31, 2005. - Metadata are readily available on BR’s website with a link to the IMF SDDS website. - 5.2.2 Levels of detail: - Different levels of metadata are available to meet user needs: - Temas del Emisor provides general-use information (examples: What is the Exchange Rate? What are the International Reserves?). - More specialized information available in Borradores de Economía and Reportes del Emisor (examples provided). - Materials available in print and web formats. ### 5.3 Assistance to users - 5.3.1 Contact points: - Prompt and knowledgeable service and support available to users. - Contact points for inquiries provided on some statistical products (e-mail, telephone, fax). - Website’s Client Services page includes a link to the Directorate of Economic Studies, its e-mail address, and telephone number; it does not explicitly mention balance of payments statistics or a direct contact person. - Material to raise awareness on use of statistics is available (e.g., Temas del Emisor). - No formal system monitors user assistance; an informal follow-up system operates through the Section’s administrative staff. - 5.3.2 Catalogs and charges: - Catalog of all issues and articles of La Revista del Banco de la República available in print and on the Web. - Website-accessible list available of all documents produced by the BR. - Borradores de Economía lists releases at the back of each publication. - La Revista del Banco de la República carries a minimal charge; instructions on ordering found on the Web or in the publication. --- ### Recommendations - High Priority - In consultation with the NADS, develop, without delay, a methodology to include unrecorded trade in the balance of payments on a timely basis. A statistical technique would need to be designed to estimate illegal exports and counterpart transactions. - Reclassify FDI intercompany debt transactions from other investment to FDI. Based on the 10 percent ownership criteria of FDI, reclassify some FDI equity transactions to portfolio equity. Adjust the related investment income series accordingly. - Continue efforts to identify government bonds issued abroad and purchased by residents as well as those purchased by residents on the secondary market. - Other - Make valuation adjustments when deriving transactions from stock data for debt securities (assets) of banks. - Estimate interest on external public debt on an accrual basis and record all dividend payments on the date they are declared payable or the dates payable, rather than the date when paid. *Source: _cr06356 - 3.4 Assessment and validation of intermediate data and statistical outputs* ### 4.2 Consistency ### _cr06356 - 4.2 Consistency ### 4.2 Consistency and 4.3 Revision policy and practice - Consistency: X - Revision policy and practice: X - "Revision cycle is predetermined and stable, but it is not formally made known to the public. Revision studies are not published." ### 5. Accessibility - 5.1 Data accessibility: X - 5.2 Metadata accessibility: X - 5.3 Assistance to users: X ### Users’ Survey — summary findings (mission and user meeting) - Price and monetary statistics are rated highly by users. - Methodological basis and reliability seen as appropriate, most notably for monetary and BOP statistics. - Users pointed to insufficient detail and disaggregation in fiscal statistics. - A large majority indicated dissatisfaction with timeliness of national accounts, fiscal statistics, and the BOP; many were unaware of publication of release calendars for these data. - Majority satisfied with accessibility to data, notably monetary, price, and balance of payments statistics; scope for improved access to fiscal metadata. - Users stressed that efficient operation of domestic financial markets requires timely dissemination of key data, with advanced release calendars strictly observed. - Long delays in publication of GDP data were said to create uncertainty in financial markets. - Despite observing SDDS prescriptions, timeliness of quarterly GDP and BOP data seen as insufficient to meet user needs; some users wanted advance calendars to include specific time of day of release. - On timeliness versus robustness, users indicated a strong preference for earlier release of preliminary data. - Demand for more methodological information on national accounts, particularly indicators of industrial activity and financial services, and for a monthly index of economic activity. - Fiscal statistics users noted unawareness of advance release calendars, lack of time series for key fiscal aggregates, insufficient detail, and scarce methodological information; different compilers release different data for the same variable. ### Survey of Users of Official Macroeconomic Data — selected tabulated responses (as reported) - I. Which official statistics do you use regularly? - 1.1 National Accounts (NA), e.g. GDP, GNP, Sectoral Value Added — 91%42 - 1.2 Prices: Consumer Price Index (CPI), Producer Price Index (PPI) — 91%42 - 1.3 Government Finance Statistics (GFS) or fiscal data — 67%31 - 1.4 Monetary and Financial Statistics (monetary) — 91%42 - 1.5 Balance of Payments (BOP) — 76%35 - 1.6.1 Production indices — 52%24 - 1.6.2 Labor market (employment, unemployment, wages) — 67%31 - 1.6.3 Merchandise trade — 65%30 - 1.6.4 International capital flows and foreign liquidity — 30%14 - 1.6.5 External debt (public and publicly guaranteed) — 72%33 - 1.6.6 International Investment Position — 39%18 - II. Sources of official statistics - 2.1 National Administrative Department of Statistics (NADS) — 96%44 - 2.2 Bank of the Republic (BR) — 98%45 - 2.3 Ministry of Public Finance and Public Credit (MFPC) — 72%33 - 2.4 Other government agencies or departments — 37%17 - 2.5 International and regional organizations (IMF, World Bank, IDB, ECLAC, UN, etc.) — 50%23 - 2.6 News media — 41%19 - III. Use of source/method descriptions - 3.1 Yes — 54%2556%64% - 3.2 No — 30%1431%36% - 3.3 No opinion — 13%613% - IV. Purposes of use (selected) - 4.1 Analysis of current developments for short-term decision making — 67%31 - 4.2 Analysis of trends for longer-term policy formulation — 65%30 - 4.3 Model building and forecasting — 72%33 - 4.4 Economic research — 67%31 - 4.6 General economic background — 91%41 - V. Coverage and detail (selected satisfaction results) - 5.1.1 National Accounts — 4543 / Yes 67%3169%72% / No 26%1227%28% / No opinion 4%24% - 5.1.2 CPI/PPI — 4444 / Yes 91%4295%95% / No 4%25%5% / No opinion 0%00% - 5.1.3 GFS — 44100%31 / Yes 39%1841%58% / No 28%1330%42% / No opinion 28%1330% - 5.1.4 Monetary — 45100%44 / Yes 89%4191%93% / No 7%37%7% / No opinion 2%12% - 5.1.5 Balance of Payments — 44100%37 / Yes 65%3068%81% / No 15%716%19% / No opinion 15%716% - 5.2.1 National Accounts (detail) — 44100%39 / Yes 52%2455%62% / No 33%1534%38% / No opinion 11%511% - V.3 Data collection surveys adequate? (selected) - 5.3.1 National Accounts — 43100%26 / Yes 35%1637%62% / No 22%1023%38% / No opinion 37%1740% - 5.3.2 CPI/PPI — 43100%27 / Yes 50%2353%85% / No 9%49%15% / No opinion 35%1637% - 5.3.3 GFS — 44100%17 / Yes 20%920%53% / No 17%818%47% / No opinion 59%2761% - V.4 Consistency over time (selected) - 5.4.1 National Accounts — 45100%38 / Yes 61%2862%74% / No 22%1022%26% / No opinion 15%716% - 5.4.2 CPI/PPI — 44100%42 / Yes 80%3784%88% / No 11%511%12% / No opinion 4%25% - VI. Periodicity and timeliness (selected) - 6.1.1 National Accounts (frequency satisfaction) — 45100%43 / Yes 52%2453%56% / No 41%1942%44% - 6.1.2 CPI/PPI (frequency satisfaction) — 44100%44 / Yes 91%4295%95% / No 4%25%5% - 6.2.1 National Accounts (timeliness) — 45100%42 / Yes 17%818%19% / No 74%3476%81% / No opinion 7%37% - 6.2.2 CPI/PPI (timeliness) — 44100%44 / Yes 87%4091%91% / No 9%49%9% / No opinion 0%00% - 6.2.3 GFS (timeliness) — 44100%33 / Yes 17%818%24% / No 54%2557%76% / No opinion 24%1125% - VII. Other dissemination practices (selected) - 7.1.1 National Accounts (know calendar) — 45100%38 / Yes 17%818%21% / No 65%3067%79% - 7.1.3 GFS (know calendar) — 46100%34 / Yes 4%24%6% / No 70%3270%94% - 7.2.1 National Accounts (released on pre-announced dates) — 41100%27 / Yes 15%717%26% / No 43%2049%74% - VII.3 Information about revisions sufficient? - 7.3.1 National Accounts — 44100%37 / Yes 39%1841%49% / No 41%1943%51% / No opinion 15%716% - 7.3.2 CPI/PPI — 43100%30 / Yes 54%2558%83% / No 11%512%17% - VII.4 Policy and procedure for revisions adequate? (very small respondent base shown as 19) - 7.4.1 National Accounts — 19100%14 / Yes 21%421%29% / No 53%1053%71% / No opinion 26%526% - VIII. Accessibility (selected) - 8.1.1 National Accounts (easy access) — 45100%43 / Yes 70%3271%74% / No 24%1124%26% - 8.1.2 CPI/PPI (easy access) — 44100%44 / Yes 83%3886%86% / No 13%614%14% - 8.1.4 Monetary (easy access) — 45100%44 / Yes 87%4089%91% / No 9%49%9% - 8.2.1 National Accounts (access to explanatory/methodological info) — 45100%39 / Yes 46%2147%54% / No 39%1840%46% - 8.2.3 GFS (access to explanatory/methodological info) — 45100%29 / Yes 24%1124%38% / No 39%1840%62% - 8.3 Is methodology information sufficiently clear and adequate? - 8.3.1 Yes — 30%1431%37% - 8.3.2 No — 52%2453%63% - 8.3.3 No opinion — 15%716% *Source: _cr06356 - 4.2 Consistency* ### 8.4 In what format do you get access to official statistics? ### _cr06356 - 8.4 In what format do you get access to official statistics? ### 8.4 Format of access to official statistics - Hard copy: - 8.4.1 Official releases: 50%23 - 8.4.2 Press releases: 33%15 - 8.4.3 Special requests: 13%6 - 8.4.4 Official policy papers: 37%17 - 8.4.5 Private sector summaries and analyses: 33%15 - 8.4.6 Newspapers: 40%17 - Electronic form: - 8.4.7 Official website: 93%43 - 8.4.8 Official database and other (such as CD-ROM): 20%9 - 8.4.9 Private websites: 28%13 - 8.4.10 News media websites with official policy papers: 35%16 - 8.4.11 E-mail: 70%32 - 8.4.12 Other: 7%3 ### 8.5 Presentation of the data (format, clarity of the text, tables, graphics) - 8.5.1 National Accounts (responses shown with percentages and respondent counts) - 1.1 Yes: 45100% 42 - 1.2 No: 70%3271%76% - 1.3 No opinion: 22%1022%24% - 8.5.2 CPI/PPI - 1.1 Yes: 44100% 42 - 1.2 No: 89%4193%98% - 1.3 No opinion: 2%12%2% - 8.5.3 GFS - 1.1 Yes: 46100% 31 - 1.2 No: 35%1635%52% - 1.3 No opinion: 33%1533%48% - 8.5.4 Monetary - 1.1 Yes: 45100% 42 - 1.2 No: 83%3884%90% - 1.3 No opinion: 9%49%10% - 8.5.5 Balance of Payments - 1.1 Yes: 43100% 35 - 1.2 No: 65%3070%86% - 1.3 No opinion: 11%512%14% - Additional: 17%819% ### 8.6 User support: accessibility, timeliness, competence - 8.6.1 National Accounts - 41100% 29 - 1.1 Yes: 24%1127%38% - 1.2 No: 39%1844%62% - 1.3 No opinion: 26%1229% - 8.6.2 CPI/PPI - 40100% 27 - 1.1 Yes: 35%1640%59% - 1.2 No: 24%1128%41% - 1.3 No opinion: 28%1333% - 8.6.3 GFS - 43100% 23 - 1.1 Yes: 17%819%35% - 1.2 No: 33%1535%65% - 1.3 No opinion: 43%2047% - 8.6.4 Monetary - 42100% 30 - 1.1 Yes: 41%1945%63% - 1.2 No: 24%1126%37% - 1.3 No opinion: 26%1229% - 8.6.5 Balance of Payments - 42100%25 - 1.1 Yes: 35%1638%64% - 1.2 No: 20%921%36% - 1.3 No opinion: 37%1740% ### 9. Overall assessment #### 9.1 Is the underlying methodology of official statistics sound and appropriate? - 9.1.1 National Accounts - 44100% 29 - 1.1 Yes: 43%2045%69% - 1.2 No: 20%920%31% - 1.3 No opinion: 33%1534% - 9.1.2 CPI/PPI - 43100% 35 - 1.1 Yes: 67%3172%89% - 1.2 No: 9%49%11% - 1.3 No opinion: 17%819% - 9.1.3 GFS - 44100% 22 - 1.1 Yes: 30%1432%64% - 1.2 No: 17%818%36% - 1.3 No opinion: 48%2250% - 9.1.4 Monetary - 44100% 31 - 1.1 Yes: 67%3170%100% - 1.2 No: 0%00%0% - 1.3 No opinion: 28%1330% - 9.1.5 Balance of Payments - 43100% 28 - 1.1 Yes: 59%2763%96% - 1.2 No: 2%12%4% - 1.3 No opinion: 33%1535% #### 9.2 In general, are official statistics reliable? - 9.2.1 National Accounts - 45100% 38 - 1.1 Yes: 57%2658%68% - 1.2 No: 26%1227%32% - 1.3 No opinion: 15%716% - 9.2.2 CPI/PPI - 44100% 40 - 1.1 Yes: 76%3580%88% - 1.2 No: 11%511%13% - 1.3 No opinion: 9%49% - 9.2.3 GFS - 45100% 33 - 1.1 Yes: 46%2147%64% - 1.2 No: 26%1227%36% - 1.3 No opinion: 27%1227% - 9.2.4 Monetary - 45100%42 - 1.1 Yes: 85%3987%93% - 1.2 No: 7%37%7% - 1.3 No opinion: 7%37% - 9.2.5 Balance of Payments - 43100% 37 - 1.1 Yes: 65%3070%81% - 1.2 No: 15%716%19% - 1.3 No opinion: 13%614% #### 9.3 Comparison of Colombia's official statistics with other countries in the region - 9.3.1 National Accounts - 43100% 35 - Better: 24%1126%31% - Same: 33%1535%43% - Worse: 20%921%26% - No opinion: 17%819% - 9.3.2 CPI/PPI - 43100% 39 - Better: 43%2047%51% - Same: 39%1842%46% - Worse: 2%12%3% - No opinion: 9%49% - 9.3.3 GFS - 45100% 31 - Better: 15%716%23% - Same: 22%1022%32% - Worse: 30%1431%45% - No opinion: 30%1431% - 9.3.4 Monetary - 44100% 38 - Better: 33%1534%39% - Same: 41%1943%50% - Worse: 9%49%11% - No opinion: 13%614% - 9.3.5 Balance of Payments - 44100% 35 - Better: 17%818%23% - Same: 35%1636%46% - Worse: 24%1125%31% - No opinion: 20%920% #### 9.4 Overall quality rating (scale 1–5; 1 = poor, 5 = excellent) - 9.4.1 National Accounts - 44100% 43 - 1: 7%37%7% - 2: 13%614%14% - 3: 26%1227%28% - 4: 39%1841%42% - 5: 9%49%9% - No opinion: 2%12% - 9.4.2 CPI/PPI - 43100% 43 - 1: 0%00%0% - 2: 0%00%0% - 3: 11%512%12% - 4: 50%2353%53% - 5: 33%1535%35% - No opinion: 0%00% - 9.4.3 GFS - 45100% 35 - 1: 7%37%9% - 2: 17%818%23% - 3: 26%1227%34% - 4: 26%1227%34% - 5: 0%00%0% - No opinion: 22%1022% - 9.4.4 Monetary - 45100% 45 - 1: 0%00%0% - 2: 2%12%2% - 3: 15%716%16% - 4: 54%2556%56% - 5: 26%1227%27% - No opinion: 0%00% - 9.4.5 Balance of Payments - 43100% 39 - 1: 0%00%0% - 2: 2%12%3% - 3: 28%1330%33% - 4: 39%1842%46% - 5: 15%716%18% - No opinion: 9%49% *Source: User survey and IMF staff estimates.* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06356.pdf_