## _cr07139 — DQAF, July 2003 — Summary Results (Botswana)

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---

### I. Overall assessment — main conclusions
- Botswana began participating in the General Data Dissemination System (GDDS) and posting metadata on the Dissemination Standards Bulletin Board (DSBB) in October 2002.
- The ROSC—Data Module (first undertaken in October 2001) and GDDS plans have guided capacity development in macroeconomic statistics.
- Strengthened areas since prior assessment:
  - Relevance of data (especially responsiveness to users’ needs).
  - Transparency of statistical policies and practices.
  - Accessibility of data and metadata.
  - Some progress in the methodological framework.
- Remaining constraints and priorities:
  - Periodicity and timeliness need marked improvement to meet SDDS requirements.
  - Need to begin compiling/disseminating SDDS-required statistics (examples cited: general government statistics, the International Reserves and Foreign Currency Liquidity Template (the Reserves Template), and key production and producer price statistics).
  - High-level policy decisions required to increase staff resources in main statistics-producing agencies and to accept the transparency required by the Reserves Template.
  - Greater willingness to publish preliminary data backed by coherent and transparent revision policies and practices.
  - Strengthen source data and enhance domestic availability of metadata.

### II. Prerequisites of quality and assurances of integrity
- Legal and institutional environment (selected)
  - CSO operates under the Statistics Act (1967); MFDP defines statistical policy through its permanent secretary.
  - Finance and Audit Act assigns responsibility for collecting, processing, and reporting fiscal statistics to the minister of the MFDP; the law does not establish an obligation to disseminate statistics to the general public.
  - Bank of Botswana Act, 1996, provides BoB powers to request information; balance of payments compilation is not explicitly mandated in the BoB Act but is performed under informal agreement.
- Resources and staffing (selected)
  - NASU staff: "staff of 10" (unit head, three statisticians, one statistical officer, five nonprofessionals).
  - PSU staff: "staff of four" (unit head and three statisticians).
  - MSS staff (monetary compilers): six professionals (one senior economist, two economists, three senior statistical assistants).
  - Balance of payments section: "10 full-time staff" (one senior economist, three economists, six statistical assistants).
  - GABS introduction: September 2004; GABS installed in "19 of 21 ministries" (installation in the other two to be completed by December 2006).
  - Recommendation: increase staff in CSO (national accounts, WPI), MFDP (GFS), and redeploy/augment BoB staff to improve timeliness and coverage.
- Integrity, transparency, ethics
  - Legislation and tradition support impartial compilation and collection of statistics.
  - Terms and conditions for producing and disseminating macroeconomic statistics are publicly available (Statistics Act, Finance and Audit Act, BoB Act).
  - Internal governmental access to macroeconomic data exists (except consumer and wholesale prices); internal prerelease access is not always publicly identified.
  - Confidentiality: Section 9 and Section 12 of the Statistics Act and Section 19 of the BoB Act impose secrecy obligations and penalties.

### III. Methodological soundness — main findings by domain
- National accounts
  - Principal framework: "principally based on the 1993 SNA"; some components still follow 1968 SNA.
  - Base year for volume estimates: "1993/94".
  - Main enterprise survey (AES) previously every 10 years; new AES for 2005/06 dispatched.
  - Key weaknesses: last comprehensive benchmark "1994/95" methodology undocumented; no informal sector estimates; imports still valued c.i.f. rather than f.o.b.; government figures on a cash basis.
  - Key recommendations:
    - "The methodology used to derive the benchmark estimates for 1994/95 must be fully documented."
    - "Introduce estimates for informal activities."
    - "Update the base year for the volume figures for GDP at least every five years."
    - "Link quarterly series to benchmark using the Denton technique" and "seasonally adjust quarterly GDP estimates when resources permit."
- Consumer Price Index (CPI)
  - Rebased: "2006 =100"; weight reference period: "2002/03"; price reference period: "September 2006".
  - Coverage: "All resident households included"; owner-occupied housing excluded.
  - Timeliness: CPI released "15 days after the reference date", meeting/exceeding SDDS requirement of one month.
  - Methods: new CPI uses modified Laspeyres; short-term price relatives used; imputations and quality adjustments require improvement.
  - Recommendations: "Include owner-occupied housing in the CPI" (CSO will investigate) and "improve quality adjustment techniques".
- Wholesale Price Index (WPI)
  - WPI concept: market/purchaser’s price including VAT and margins; not consistent with 1993 SNA output valuation.
  - Coverage: measures wholesale prices for six product groups; excludes mining, some manufacturing, quarrying, and some construction.
  - Weights: "1997" WPI series weights derived from "1993/04 HIES".
  - Timeliness/periodicity: Botswana does not meet GDDS recommendations for WPI; WPI usually published quarterly with "quarterly referenced period" and often with delay (last WPI disseminated May 2006 with August 2005 data).
  - Recommendations:
    - Decide WPI purpose (total SPI, ICPI, PPI, or WPI) and redesign accordingly.
    - "Increase the number of staff in the Price Statistics Unit" for WPI work.
    - "Classify the WPI using internationally accepted standards such as ISIC and/or CPC."
- Government Finance Statistics (GFS)
  - Concepts: generally follow GFSM 1986 for budgetary central government; local government and extrabudgetary units not fully covered.
  - Recording basis: transactions recorded on a cash basis; "Gross debt is valued at face value."
  - Coverage gaps: no compilation for extrabudgetary institutions, consolidated central government, consolidated general government.
  - Source system: GABS (introduced September 2004) provides comprehensive accounting records for budgetary central government; local government computerization behind schedule.
  - Timeliness: quarterly central government budgetary aggregates disseminated with lags "4–9 months"; central government debt timeliness: "12 months".
  - Key recommendations:
    - "Compile and disseminate GFS for extrabudgetary institutions, consolidated central government, and consolidated general government, at least on an annual basis."
    - "Formally assign responsibility for disseminating fiscal statistics to the public to the minister of the MFDP."
    - "Post the monthly summary cash-flow table on the MFDP’s website immediately after it becomes available."
    - Consider adopting a migration path to GFSM 2001 and embed codes in GABS.
- Monetary statistics
  - Framework: "broadly consistent with the MFSM."
  - Institutional coverage: Depository Corporations Survey covers BoB and ODCs.
  - Source data limitations: reporting forms hard-copy based; insufficient detail for full MFSM requirements; accrual presentation issues (accrued interest not consistently with underlying instrument).
  - Staff and timeliness:
    - MSS: six professionals; recommendation: report BoB preliminary monthly accounting data "no later than 15 working days after the reference month" to Research Department and establish electronic reporting by ODCs.
  - Recommendations: upgrade report forms, establish electronic reporting, expand coverage to OFCs progressively.
- Balance of payments (BOP)
  - Framework: follows BPM5.
  - Sources: heavy reliance on International Transactions Reporting System (ITRS) for services—ITRS judged unreliable; need alternative sources, especially for travel.
  - Valuation: imports obtained from customs c.i.f. and adjusted to f.o.b. using old benchmark ratios; recommendation to review f.o.b./c.i.f. adjustment.
  - Timeliness: preliminary BOP data disseminated "within two months of the end of the reporting period"; revised (final) data available "after nine months"; periodicity and timeliness meet GDDS recommendations.
  - Key recommendations:
    - "Improve estimation methods and statistical techniques. Review benchmarks regularly... Develop estimates for unrecorded trade and other missing data. Identify, as a matter of urgency, alternative sources for travel data."
    - "Plan redeployment of staff from processing bank reports on foreign exchange transactions to address other needs (such as surveys) and produce data of higher quality; ultimately terminate banks’ foreign exchange reporting requirement."
    - "Establish a formal intragovernmental agreement or change the Bank of Botswana Act (BoB Act) to clarify the BoB’s responsibility for compiling balance of payments data."

### IV. Accuracy and reliability — selected source-data weaknesses and technical recommendations
- National accounts and enterprises
  - Main enterprise survey underpinning national accounts historically conducted every "10 years"; AES for 2005/06 launched.
  - Recommendation: "Undertake comprehensive surveys of enterprises at least every few years."
  - Recommendation: "Document the methodology used to derive the 1994/95 benchmark estimates."
  - Inventories: "figures for changes in inventories are not adjusted for holding gains/losses."
- Prices
  - CPI: "Approximately 30,820 price quotations" from "about 1,258 retail outlets" collected; HIES sample: "6,053 households" (coverage 25,069 persons; HIES frame: "4,114 Enumeration Areas").
  - WPI: "Approximately 8,100 price quotations" from "about 570 wholesale outlets"; WPI weights from "1993/04 HIES".
  - Recommendation: "Investigate and improve quality adjustment techniques for clothing, furniture, electronic products, and consumer durables."
- Monetary statistics and reporting
  - Report forms last updated "October 2001"; BoB data to MSS available with "about six weeks" lag; ODCs mandated to submit within "21 days".
  - Recommendation: "Report BoB’s preliminary monthly accounting data with detail compatible with MFSM recommendations... no later than 15 working days after the reference month" and "establish electronic reporting systems to compile data from the ODCs."
- Balance of payments source data
  - ITRS limitations: misclassification, coverage gaps (exchange bureaus, credit card transactions), unreliable for services data.
  - Travel receipts: historic BTA survey discontinued; latest processed BTA data available only to 2002; BoB inflated 2002 figures as interim measure.
  - Recommendation: "Identify alternative sources for travel data" and "develop estimates for unrecorded trade."

### V. Serviceability — periodicity, timeliness, consistency, revisions
- Overall periodicity/timeliness status (selected table highlights preserved)
  - Real sector: National accounts — GDDS periodicity: "A"; Botswana periodicity: "Q, A"; GDDS timeliness: "10–14 months"; Botswana timeliness: "17 months".
  - Real sector: GDP (nominal and real) — GDDS timeliness: "6–9 months"; Botswana timeliness: "8 months".
  - Prices: Consumer price index — GDDS periodicity: "M"; Botswana periodicity: "M"; GDDS timeliness: "1–2 months"; Botswana timeliness: "1–2 months".
  - Financial sector: Depository corporations survey — GDDS periodicity: "M"; Botswana periodicity: "M"; GDDS timeliness: "2–3 months"; Botswana timeliness: "3 months".
  - External sector: Balance of payments — GDDS periodicity: "A"; Botswana periodicity: "A"; GDDS timeliness: "6–9 months"; Botswana timeliness: "4–9 months".
  - External sector: International investment position — GDDS timeliness: "6–9 months"; Botswana timeliness: "9 months".
- Revisions and revision studies
  - Most datasets: revisions infrequent; "no formal revision studies are carried out" for many domains.
  - CPI: "considered final when released" with weight revisions carried out internally; recommendation to formalize and publish revision policies.
  - National accounts: "No formal revision policy" — recommended to "establish and publish a formal revision policy" and to "instigate a regular program of revision studies."
- Consistency and reconciliation
  - Notable inconsistencies: balance of payments vs. national accounts (imports/exports and SACU treatment); government finance vs. monetary statistics (financing and timing differences).
  - Recommendation: "Monitor the consistency of the main macroeconomic datasets and reconcile differences regularly."

### VI. Accessibility and metadata
- Dissemination practices and user assistance
  - Agencies use websites and publications; BoB publishes BFS monthly on its website; MFDP and MLG publications largely hard copy.
  - CSO posts data on http://www.cso.gov.bw/ but does not provide direct link to DSBB metadata; the DSBB contains methodological metadata for several datasets (last updated May 2006 for CPI).
  - Contact persons: publications generally provide names and contact details for assistance.
- Metadata accessibility
  - GFS metadata: "No metadata for GFS are published domestically. The only available information appears on the DSBB" (GDDS metadata last updated November 2003).
  - Monetary and BOP metadata: BoB posts GDDS metadata on DSBB and provides a link from its website, though more could be done to inform users.
  - WPI metadata: not available on CSO website nor DSBB; no technical guide on WPI.
  - Recommendations:
    - "Establish and publicize direct links between the agencies’ websites and the DSBB; keep metadata up-to-date."
    - "Produce and publish a detailed methodological guide when resources permit" (CSO/national accounts).
    - "Provide WPI metadata for the DSBB and provide up-to-date and pertinent metadata to the public."

### VII. Staff recommendations — cross-cutting and by statistical domain
- Cross-cutting priorities (selected)
  - "Strengthen cooperation between the MFDP, CSO, BoB, and other agencies to ensure timely compilation and exchange of data."
  - "Give more emphasis to timeliness by using and disseminating more preliminary data."
  - "Establish a comprehensive list of institutional units consistent with the 1993 SNA sectorization to be applied consistently across all datasets."
  - "Support greater use of preliminary data by formalizing revision policies and implementing regular revision cycles."
  - "Maintain a current Business Register."
- National accounts (selected)
  - "Increase the number of staff working on national accounts."
  - "Document the methodology used to derive the 1994/95 benchmark estimates."
  - "Introduce estimates for informal activities."
  - "Update the base year for volume GDP at least every five years."
- CPI and WPI (selected)
  - CPI: "Include owner-occupied housing in the CPI" (CSO to investigate) and "Improve the overall quality adjustment techniques."
  - WPI: "Decide whether to produce an output index (PPI), an Intermediate Consumption Index, or a Supply Price Index." "Develop a representative sample, including mining (gold and diamond industries), cattle production, etc." "Classify the WPI using internationally accepted standards such as ISIC and/or CPC."
- GFS (selected)
  - "Allocate more human resources to compilation and dissemination of GFS, and emphasize training in international methodologies."
  - "Bring classifications for fiscal statistics into conformity with GFSM 1986 and consider migrating to GFSM 2001."
  - "Post the monthly summary cash-flow table on the MFDP’s website immediately after it becomes available" and "compile a quarterly central government debt table and post it on the MFDP’s website."
- Monetary statistics (selected)
  - "Report BoB’s preliminary monthly accounting data... in electronic form and no later than 15 working days after the reference month."
  - "Review ODC report forms to ensure the most complete and timely information" and "establish electronic reporting systems to compile data from the ODCs."
- Balance of payments (selected)
  - "Improve estimation methods and statistical techniques; review benchmarks regularly; develop estimates for unrecorded trade and other missing data; identify alternative sources for travel data."
  - "Initiate planning for redeploying staff from processing bank reports on foreign exchange transactions to address other needs (such as surveys) and produce data of higher quality."
  - "Establish a formal intragovernmental agreement or change the BoB Act to clarify the BoB’s responsibility for compiling balance of payments data."

### VIII. Authorities’ overview and implementation priorities (selected commitments/status as of March 2007)
- Institutional coordination: High-level Statistics Producers Committee (SPC) established after 2001 ROSC "has worked well."
- Staffing changes: "As of March 2007, National Accounts Unit professional staff was increased by one."
- Metadata policy: "Existing policy: metadata to be updated annually."
- Business register and surveys: "Ongoing enterprise census to bring Business Register up to date."
- Data access improvements: "BoB will take up direct access to customs data through the MFDP; CSO will include additional methodology material on its website."
- Selected implementation priorities and timelines (as stated)
  - National accounts: documentation of 1994/95 benchmarks (Priority: "short term"); AES being conducted annually (Priority: "short term"); informal sector survey underway (Priority: "medium term"); rebase national accounts (Priority: "medium term").
  - Government finance: recruitment underway to increase CFU staffing (expected CFU staff complement "to be four by end of year and five after one returns from long-term training"); plans to update CS-DRMS and post reports by end of second quarter of 2007 (IT setback noted).

*Source: DQAF, July 2003 — Summary Results (Botswana) — Report content provided in the supplied PDF excerpt.*

### 1.     DQAF, July 2003—Summary Results...............................................................................8

### _cr07139 - 1.     DQAF, July 2003—Summary Results...............................................................................8

### I. Overall assessment — main conclusions
- Botswana began participating in the General Data Dissemination System (GDDS) and posting metadata on the Dissemination Standards Bulletin Board (DSBB) in October 2002.
- The ROSC—Data Module (first undertaken in October 2001) and GDDS plans have guided capacity development in macroeconomic statistics.
- Strengthened areas since the prior assessment:
  - Relevance of data (especially responsiveness to users’ needs).
  - Transparency of statistical policies and practices.
  - Accessibility of data and metadata.
  - Some progress in the methodological framework.
- Remaining constraints and priorities:
  - Periodicity and timeliness need marked improvement to meet SDDS requirements.
  - Need to begin compiling/disseminating SDDS-required statistics (examples cited: general government statistics, the International Reserves and Foreign Currency Liquidity Template (the Reserves Template), and key production and producer price statistics).
  - High-level policy decisions required to increase staff resources in main statistics-producing agencies and to accept the transparency required by the Reserves Template.
  - Greater willingness to publish preliminary data backed by coherent and transparent revision policies and practices.
  - Strengthen source data and enhance domestic availability of metadata.

### II. Prerequisites of quality and assurances of integrity
- Legal/institutional environment and resources:
  - Laws and decrees authorize CSO, MFDP, and BoB to collect, compile, and disseminate relevant statistics.
  - Legal framework does not explicitly mandate BoB to compile balance of payments statistics or MFDP to disseminate fiscal statistics to the general public.
  - Responsibilities do not overlap in practice, but cooperation via informal agreement could be improved.
  - CSO and MFDP are seriously understaffed; understaffing adversely affects the ability to produce timely national accounts, prices, and government finance statistics.
  - Facilities and computing resources are broadly commensurate with the statistical program.
- Integrity and transparency:
  - Legislation and tradition support impartial compilation and collection of statistics.
  - A culture of professionalism and objectivity exists across agencies.
  - Terms and conditions for producing and disseminating macroeconomic statistics are publicly available.
  - Internal governmental access to macroeconomic data (except consumer and wholesale prices) prior to public release exists and is not always explicitly identified in domestic sources.
  - Staff are held to high ethical standards.

### III. Methodological soundness (datasets and manuals)
- General conformity:
  - Monetary statistics follow the Monetary and Financial Statistics Manual (MFSM).
  - Balance of payments statistics follow BPM5.
  - CPI conforms to the Consumer Price Index Manual 2004.
  - GFS (other than local government) generally conform to GFSM 1986.
  - Some national accounts changes are still needed to bring them fully into line with the System of National Accounts 1993 (1993 SNA); much of national accounts still follows 1968 SNA.
- Noted methodological weaknesses:
  - Wholesale price index (WPI): methodological problems, inadequate scope, and faulty sectorization seriously undermine usefulness.
  - GFS institutional scope does not extend to extrabudgetary institutions, consolidated central government, or consolidated general government.
  - Sectorization and classification issues remain in national accounts and GFS.

### IV. Accuracy and reliability — source data and statistical techniques
- Source data weaknesses and recommendations:
  - Balance of payments: reliance on the International Transactions Reporting System (ITRS) should be reduced in favor of alternative sources (principally surveys).
  - National accounts: increase frequency of the main enterprise survey that underpins national accounts.
  - Monetary statistics: need more detail in source data and sharply increased timeliness of BoB data.
  - Local government: annual statistics compilation should be considerably more timely.
  - WPI: coverage needs expansion.
- Techniques and validation:
  - Techniques used to assess source data are typically sound.
  - Agencies generally employ suitable statistical techniques, though BoB should strengthen methods for estimating missing data, adjusting import values, and estimating flows from stock data in balance of payments.
  - Sound methods are generally used for assessing and validating intermediate data.
  - More systematic internal use of revision studies is recommended to inform and strengthen processes.

### V. Serviceability (periodicity, timeliness, consistency, revisions)
- General serviceability findings:
  - Datasets generally meet GDDS recommendations for periodicity.
  - Timeliness shortfalls relative to GDDS recommendations exist for government fiscal statistics and monetary statistics; WPI meets neither periodicity nor timeliness recommendations.
  - Datasets are mostly internally consistent and consistent over time, but notable inconsistencies are not reconciled across datasets (examples: balance of payments vs. national accounts; government finance vs. monetary statistics).
  - Revision policies and practices vary; all datasets would benefit from a more formalized revision approach and from conducting and publishing revision studies.
  - Revised data are clearly identified.

### VI. Accessibility and metadata
- Dissemination practices:
  - Agencies use websites and publications to provide access to data and metadata; data are generally clearly presented with charts and tables and sufficient historical detail.
  - Greater use of advance release calendars (including projected release dates) is recommended.
  - Additional measures needed to facilitate access to metadata.
  - For government finance, monetary, and balance of payments statistics, metadata are available only from the IMF’s DSBB website.
  - CSO provides brief methodological information and makes users aware of the DSBB source but could provide a direct link to it.
  - MFDP and BoB provide links to the DSBB on their websites, but links are not particularly visible or directly associated with disseminated data.
  - Agencies generally provide contact information for special assistance and queries.

### VII. Assessment summary by dataset (DQAF, July 2003 — Table 1 key findings)
- Rating key: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable.
- Selected element ratings from Table 1 (by dataset and DQAF dimension):
  - 0.1 Legal and institutional environment: National Accounts O; CPI O; WPI O; GFS LO; Monetary O; Balance of Payments LO.
  - 0.2 Resources: National Accounts LO; CPI LO; WPI LNO; GFS LO; Monetary LO; Balance of Payments LO.
  - 1.1 Professionalism: All six datasets O.
  - 2.1 Concepts and definitions: National Accounts LO; CPI O; WPI LNO; GFS LO; Monetary O; Balance of Payments O.
  - 2.2 Scope: National Accounts LO; CPI LO; WPI LNO; GFS LNO; Monetary O; Balance of Payments O.
  - 3.1 Source data: National Accounts LO; CPI LO; WPI LNO; GFS LO; Monetary LNO; Balance of Payments LO.
  - 4.1 Periodicity and timeliness: National Accounts O; CPI O; WPI LNO; GFS LO; Monetary LO; Balance of Payments O.
  - 5.2 Metadata accessibility: National Accounts LO; CPI LO; WPI LNO; GFS LO; Monetary LO; Balance of Payments LO.

### VIII. Agency-level highlights (Central Statistics Office — selected points from Table 2a)
- Legal and institutional environment:
  - The Statistics Act (1967) gives the CSO a strong legal basis for compiling and disseminating national accounts and price statistics.
  - Confidentiality of respondents’ data is guaranteed under the Statistics Act; CSO has effective procedures for protecting and disposing of respondents’ data.
  - The Statistics Act specifies penalties for non-supply of relevant data, though the CSO prefers persuasion.
- Resources:
  - Number of staff is not sufficient for the established work program, particularly acute for the WPI.
  - Computer resources sufficient; staff well trained but turnover is a problem; accommodation broadly adequate.
- Relevance and quality management:
  - User groups consulted as required; CSO active internationally (notably within SADC).
  - Management committed to data quality; vision and mission statement promoted; supervisory and computer checks used; no reviews of work programs.
- Professionalism, transparency, ethics:
  - The Statistics Act establishes professional independence of the CSO.
  - Recruitment through open competition; staff encouraged to publish methodological articles.
  - Partial details on internal prerelease access to national accounts are on DSBB; nothing shown on CSO website.
  - Staff behavior guided by the Statistics Act and declarations of secrecy; subject to civil service regulations in the Public Service Charter (1996).

*Source: DQAF, July 2003 — Summary Results (Botswana) — Report content provided in the supplied PDF excerpt.*

### 0. Prerequisites of quality

### 0. Prerequisites of quality

### Assurances of integrity — Ministry of Finance and Development Planning (MFDP)
- Legal and institutional environment
  - Responsibility for collecting, processing, and reporting fiscal statistics is clearly assigned to the minister of the MFDP by the Finance and Audit Act.
  - The law mandates the minister to report on the budget to parliament, but it does not establish an obligation to disseminate statistics to the general public.
  - Most source data for the compilation of fiscal statistics are generated within the MFDP through the Government Accounting and Budgeting System (GABS).
  - The Ministry of Local Government (MLG) is responsible for collecting, processing, and disseminating information on the finances of local authorities.
  - The Statistics Act sets rules governing the collection, processing, and dissemination of statistics, protects confidentiality, and requires presentation so that no individual particulars are disclosed.
  - The flow of information at the technical level could be improved among data-producing agencies.
- Resources
  - Sufficient resources are allocated to computing technology, but the number of staff are insufficient to adequately perform tasks associated with compilation and dissemination of GFS.
  - Introduction of GABS in September 2004 represents a major step forward in availability of comprehensive and timely information for compilation of fiscal statistics.
  - Computerization program for local authorities is significantly behind schedule and faces serious problems.
- Relevance
  - Current fiscal statistics are mainly geared toward compliance with existing legislation and regulations; the needs of the general public do not receive particular attention.
- Other quality management
  - Management recognizes importance of quality, reflected by introduction of a Performance Management System and the GABS.
  - A better balance between accuracy and timeliness is needed.
  - Increased recognition needs to be given to incorporating international best practice, such as the Government Finance Statistics Manual 2001 (GFSM 2001), into the statistical program.
- Professionalism
  - The Finance and Audit Act and the Statistics Act both support compilation of fiscal statistics on an impartial basis, although there is no explicit section on professional independence.
  - A culture of professionalism is adhered to; no outside interference with statistical results is permitted.
  - Recruitment is conducted through a competitive process based on qualifications.
  - Choice of source data and statistical techniques is based exclusively on data and processing requirements.
  - High-level political support would be required to undertake activities needed to meet requirements of the SDDS or adopt new international guidelines for compilation of GFS.
  - Decisions to disseminate data are based mainly on legal obligation and not statistical considerations.
  - MFDP staff can provide expert advice on technical aspects of fiscal statistics.
- Transparency
  - Legislation establishing terms and conditions under which statistics are compiled and disseminated is publicly available.
  - MFDP makes fiscal statistics available to senior officers and other units of the corresponding ministry for review and internal information prior to general dissemination; both the BoB and the CSO have access to the data before publication. This internal access is not made public.
  - MFDP clearly identifies the agency responsible for compiling data released to the public.
  - Major changes in methodology and source data are usually contained in legislation or are announced when introduced.
- Ethical standards
  - The Statistics Act establishes sanctions for public servants for improper behavior in discharge of functions and requires an oath of affirmation for persons employed in execution of the Act.
  - The Public Service Charter sets out basic principles guiding public servants.

### Assurances of integrity — Bank of Botswana (BoB)
- Legal and institutional environment
  - Under the Bank of Botswana Act, 1996, the BoB compiles and disseminates monetary and balance of payments statistics.
  - No explicit legal mandate for compiling and disseminating balance of payments statistics, but there is an informal agreement between relevant government entities.
  - Mandate is clear for monetary statistics; reporting is mandatory and BoB can take enforcement actions but prefers moral suasion.
  - Existing regulations safeguard confidentiality of individual reporters’ data and impose penalties for disclosure. However, unit data are published in some cases due to small size of the economy making aggregation ineffective.
  - Data-sharing arrangements exist within BoB and between BoB and other government agencies, but they do not always work effectively.
- Resources
  - Staff resources are adequate to compile monetary and balance of payments statistics, although a reallocation of staff within the balance of payments division would be desirable.
  - Staff have attended in-house training and IMF courses, but further training remains important, particularly for monetary statistics compilers.
  - Compilation processes are largely computerized, except for data entry; computer systems would benefit from more regular updates.
- Relevance
  - Close links with data users in government and private sector provide ample feedback and help monitor users’ needs.
  - BoB encourages users’ feedback by publishing telephone number and e-mail of staff responsible for each dataset.
- Other quality management
  - BoB’s culture emphasizes accuracy more than timeliness; emphasis on accuracy causes excessively long delays in disseminating BoB data.
  - BoB could give more emphasis to timeliness and periodicity in planning its statistical program.
- Professionalism
  - No law or formal provision supports professional independence, but culture of professionalism is strongly recognized and embedded.
  - Compiling staff assert quality has never been negatively affected by external pressures.
  - Data sources selected based on availability, accuracy, completeness, timeliness, practicality, and resource availability.
  - Selection of statistical techniques informed by compilers’ knowledge and experience, technical assistance advice, and practical considerations.
- Transparency
  - Terms and conditions under which statistics are collected, processed, and disseminated are outlined in GDDS metadata posted on the DSBB website; BoB website links to DSBB.
  - Internal governmental access to statistics prior to release is partially identified in metadata on DSBB.
  - BoB clearly identifies its statistics publications with name, logo, and insignia.
  - Users are informed of methodological changes only when data are released; methodological changes in balance of payments statistics are not indicated in the tables.
- Ethical standards
  - BoB informs new staff about the General Conditions of Service and requires sign-off; conditions include restrictions on political activities, commitments to confidentiality and professionalism, financial disclosure, and avoidance of conflicts of interest.
  - Conditions are rigorously enforced; culture and management practices enforce ethical standards effectively.

### Methodological soundness, Accuracy and reliability, Serviceability, Accessibility — National Accounts
- Concepts and definitions
  - National accounts principally based on the 1993 SNA; some changes still needed to bring them fully into line with the 1993 SNA.
- Scope
  - Published data include annual GDP from production and expenditure approaches at current and constant prices.
  - Sector accounts in line with the 1968 SNA are published down to the capital account, not covering the financial account.
  - Quarterly GDP from production and expenditure approaches at current and constant prices are published.
- Classification/sectorization
  - Classifications and sector breakdowns broadly in line with the 1968 SNA.
  - Taxes on products include some amounts, possibly significant, which actually relate to other countries.
- Basis for recording
  - Most valuation rules are in line with the 1993 SNA; however, imports are valued c.i.f., rather than f.o.b.
  - New enterprise survey forms are potentially misleading in treatment of taxes on products.
  - All government figures are on a cash, not an accrual, basis.
- Source data
  - Main enterprise survey collecting annual data is only conducted every 10 years.
  - Some data do not fully meet requirements of national accounts; timeliness is a problem due to poor survey response.
- Assessment of source data
  - Source data are checked as far as possible; no information collected on nonsampling errors or rates of nonresponse.
- Statistical techniques
  - Weaknesses include unknown methodology used to compile 1994/95 benchmark estimates for existing staff.
  - No estimates for informal activities.
  - Base year for volume estimates is still 1993/94.
  - Arbitrary values included in series for errors and omissions for some years.
  - Figures for changes in inventories are not adjusted for holding gains/losses.
  - Quarterly GDP estimates are not seasonally adjusted.
- Assessment and validation
  - Assessment and validation done wherever possible, but no established procedure exists for checking discrepancies in intermediate data.
- Revision studies
  - Revisions to individual values are investigated, but there are no formal revision studies.
- Periodicity and timeliness
  - Annual national accounts published following GDDS recommendation.
  - First set of annual estimates published eight months after reference period, following GDDS recommendations.
- Consistency
  - Expenditure figures for GDP are not derived independently except for benchmark years; consistency achieved by way of a residual series.
  - Some inconsistencies with data from other agencies.
- Revision policy and practice
  - No formal revision policy.
  - Published data are clearly marked as provisional.
  - No information on investigation of revisions is published.
- Data accessibility
  - Published data disseminated at detailed level, with a time series of up to 21 years for main aggregates.
  - Publications contain analyses incorporating charts and diagrams.
  - Actual release dates are not specified on the CSO’s calendar.
  - Availability of nonpublished data is not publicized.
- Metadata accessibility
  - Only a relatively short methodological guide is included in each publication; not on CSO’s website nor linked to metadata on DSBB.
- Assistance to users
  - Contact persons are named in each publication; every publication contains a list of recent and forthcoming publications.

### Methodological soundness, Accuracy and reliability, Serviceability, Accessibility — Consumer Price Index (CPI)
- Concepts and definitions
  - Concepts developed locally are broadly in line with international standards.
  - Household expenditure estimates from the Household Income and Expenditure Survey (HIES) used for weights.
  - Old CPI based on domestic classification; new rebased CPI classified according to COICOP, conforming to 1993 SNA and CPI Manual.
- Scope
  - All resident households included in CPI; owner-occupied housing is not included.
- Classification/sectorization
  - CPI covers noninstitutionalized Botswana households consistent with 1993 SNA household sector.
  - New CPI uses COICOP; old CPI used domestic classification.
- Basis for recording
  - Prices reflect those a consumer would pay on day of survey, including value added tax, excise taxes, trade, and transportation margins.
- Source data
  - Outlets for price reading derived from Business Register according to market share; misclassifications problematic.
  - Ad hoc surveys are not conducted to identify new products.
  - Value of consumption of owner-occupied housing and expenditure on services of illegal market products are excluded.
- Assessment of source data
  - Adjustments made for underreporting of specific products (alcohol and tobacco) using imports data.
  - Administrative data like imports are not routinely assessed and validated.
- Statistical techniques
  - Old CPI derived by taking average of long-term price relative; new CPI derived by taking short-term price relatives.
  - Aggregates: old index uses Laspeyres formula; new index uses modified Laspeyres formula.
  - Imputations for missing prices conducted; adjustments for quality need improvement.
- Assessment and validation
  - CPI data not regularly compared to other price index series such as the WPI.
- Revision studies
  - CPI considered final when released; weight revision studies and methodological changes carried out internally when new HIES.
- Periodicity and timeliness
  - Botswana meets periodicity and timeliness recommendations and standards of both GDDS and SDDS.
- Consistency
  - CPI aggregation structure consistent from cell level to all-item level.
- Revision policy and practice
  - CPI considered final when released, though revisions have occurred; users were not immediately provided with adequate explanation.
  - When weight revisions occur, users are informed via Internet, press release, and conferences.
- Data accessibility
  - CSO publishes well-designed charts and tables; CPI datasets published with various levels of disaggregation.
  - Advance release calendar posted on CSO website lists months but not release dates for upcoming year.
- Metadata accessibility
  - Documentation on concepts, scope, classification, data sources, and methods of CPI available on DSBB.
  - No CPI methodological notes on CSO website nor link to DSBB metadata; CSO website provides full description of DSBB that mentions Botswana’s data categories metadata.
- Assistance to users
  - All publications give name, telephone, facsimile, and email of CPI staff available to provide assistance.

### Methodological soundness, Accuracy and reliability, Serviceability, Accessibility — Wholesale Price Index (WPI)
- Concepts and definitions
  - Price concept is market price or purchasers’ price, including value-added tax and excluding product subsidies; WPI does not follow 1993 SNA concept of output valuation.
- Scope
  - WPI measures wholesale prices for six product groups including food, alcohol and tobacco, building materials and consumables, health and personal care, and other goods.
  - Mining, some manufacturing, quarrying, and some construction industries are not included; products covered are not representative of industrial production of Botswana.
- Classification/sectorization
  - Classification system not consistent with internationally accepted standards; WPI is classified according to COICOP.
- Basis for recording
  - Prices reflect what a consumer would pay on day of survey, including wholesale prices with taxes, transportation, freight, and margins, not basic prices as required.
- Source data
  - Wholesale outlets derived from Business Register according to market share; covered outlets not representative of entire population.
  - Weights used in 1997 WPI series derived from 1993/04 HIES results.
- Assessment of source data
  - Adjustments made for underreporting of specific products (alcohol and tobacco) using imports data; administrative data not routinely assessed and validated.
- Statistical techniques
  - WPI derived by taking average of long-term price relative of relevant price quotation; aggregates obtained using Laspeyres formula.
  - Weight and price reference period is 1997; 1993/04 weights were price updated.
  - Imputations for missing prices conducted; adjustments for quality need improvement.
- Assessment and validation
  - WPI data not regularly compared to other price index series such as the CPI.
- Revision studies
  - WPI considered final when released; basket and weights updated when there is a new HIES; revisions are not conducted once index is released.
  - Weight revision studies and analyses are carried out internally when new HIES.
- Periodicity and timeliness
  - Botswana does not meet periodicity and timeliness recommendations for GDDS for the WPI.
- Consistency
  - WPI aggregation structure consistent from cell to all-item level.
  - PPI available from September 1997; since 2001 compilation of PPI was halted; for methodological reasons these two indices cannot be linked.
- Revision policy and practice
  - WPI data are final when first published; no regular studies or methodological notes produced and made public for weight revisions.
- Data accessibility
  - CSO publishes well-designed charts and tables; WPI datasets published with various levels of disaggregation.
  - Advance release calendar on CSO website lists months but not specific release dates for upcoming year.
- Metadata accessibility
  - Documentation on concepts, scope, classification, data sources, and methods of WPI not available on CSO’s website nor on DSBB; no technical guide on WPI.
- Assistance to users
  - All publications provide name, telephone, facsimile, and email of WPI staff available to provide assistance to users.

*Source: _cr07139 - 0. Prerequisites of quality*

### 2. Methodological soundness

### _cr07139 - 2. Methodological soundness

### Methodological soundness — Government Finance Statistics (GFS)
- Concepts and definitions
  - The concepts and definitions used to compile GFS generally follow the guidelines of the GFSM 1986 for the budgetary central government, but not for local governments.
  - No decision has been taken by the authorities on adopting a “migration path” to the GFSM 2001 methodology.
- Scope
  - No fiscal statistics are compiled for extrabudgetary institutions, consolidated central government, and consolidated general government.
  - The transaction coverage generally follows the GFSM 1986.
- Classification/sectorization
  - The classifications used for the operations of budgetary central government follow partially the concepts and definitions of the GFSM 1986, while those used for local governments do not.
- Basis for recording
  - Transactions are recorded on a cash basis, consistent with the GFSM 1986 guidelines.
  - Gross debt is valued at face value.
  - Financing and corrective transactions are not presented net.
- Source data and assessment
  - Data sources are complete to allow the compilation of GFS for the budgetary central government.
  - The GABS provides comprehensive and timely accounting records, allowing customized reports to be generated automatically.
  - Data used for compiling annual GFS for local governments are not timely.
  - Adjustments to annual data are all assigned to March and not to the month the transaction took place.
  - The GABS uses financial software that incorporates extensive built-in controls; validation procedures are in place; the auditor-general audits the annual accounts before release.
- Statistical techniques and validation
  - Accepted statistical practices are used to deal with data sources.
  - Intermediate results are checked against other data.
  - Fiscal data discrepancies among national compilers on particular items are not regularly reconciled.
- Revisions
  - Only the data for a single year are revised. All other subannual and annual data are final when first published.
  - No revision studies are routinely conducted.

### Accuracy and reliability — Monetary Statistics
- Concepts and definitions
  - Botswana’s monetary statistics are broadly consistent with the MFSM recommendations.
- Scope
  - The depository corporations survey covers the BoB and all the other institutions that issue liabilities included in the national definition of broad money, as recommended in the MFSM.
- Classification/sectorization
  - In principle, classification and sectorization follow the MFSM guidelines, except for the classification of financial derivatives, which are classified off-balance sheet.
  - Some nonbudgetary central government units are classified as nonfinancial public corporations.
  - Accrued interest is not consistently presented together with the underlying instrument.
- Basis for recording
  - The accounts of the depository corporations are recorded on an accrual basis.
  - Valuation principles are used in conformity with the MFSM, except for holdings of held-to-maturity securities, recorded at amortized cost.
  - Fixed assets are presented net of depreciation, but data on a gross basis are available.
- Source data and assessment
  - The source data do not provide the details needed as specified in the MFSM.
  - The collection program relies fully on a hard copy-based reporting system.
  - The BoB’s accounting data are not made available to compilers on a timely basis.
  - Source data are routinely analyzed for accuracy, and assessment procedures are sound.
- Statistical techniques and validation
  - Monetary statistics are based on accounting data and do not, by and large, use statistical techniques.
  - There is no estimation of market values of financial instruments recorded at cost.
  - Statistical discrepancies and other problems are investigated and acted upon.
  - Limited routine cross-checking against other datasets, such as the GFS, is performed.
- Revisions and consistency
  - No formal revision studies are carried out; revisions are infrequent and when they occur, they are reviewed and appropriate action is taken.
  - Internal consistency is ensured by routinely checking interbank positions and by maintaining consistent time series, generally over a 10-year period.
  - There are no significant discrepancies with other datasets, although routine consistency checks are not undertaken.

### Serviceability — Balance of Payments Statistics
- Concepts and definitions
  - The structure, concepts, and definitions of the balance of payments statistics follow BPM5 guidelines.
- Scope
  - In principle, the balance of payments statistics cover all transactions between residents and nonresidents.
  - In practice, lack of data prevents compilation of data on trade in goods not captured by customs (shuttle trade, Internet commerce, smuggling); no adjustments are made for them.
- Classification/sectorization and valuation
  - Institutional units are classified according to BPM5.
  - Minor classification issues arise from data sources, particularly administrative sources using definitions and classifications that deviate from BPM5.
  - The principle of market valuation specified in BPM5 is used to value transactions.
  - In cases where transactions are estimated from changes in stocks during the reporting period, no account is taken of valuation and other changes.
- Source data and assessment
  - Source data are broadly adequate.
  - ITRS data, used mostly for services, are unreliable; alternative data sources should be developed.
  - Data are not always available in a timely fashion.
  - Source data are not systematically assessed at the data-entry level; checks take place after initial aggregation.
- Statistical techniques and validation
  - Methods used for estimating missing data, calculating import values, and estimating flows from stock data are inadequate.
  - Data compilation, estimation, and adjustments mostly employ sound techniques.
  - Sound methods are used for assessing and validating intermediate data.
- Revisions, periodicity, and timeliness
  - No formal revision studies are carried out, but revisions are reviewed and, if patterns are identified, appropriate action is taken.
  - Balance of payments data are compiled annually and published in the monthly BFS and the BoB Annual Report.
  - Preliminary data are disseminated within two months of the end of the reporting period, while revised (final) data are available after nine months.
  - Periodicity and timeliness therefore meet GDDS recommendations.
- Consistency
  - Balance of payments data are consistent over time and within themselves.
  - Discrepancies exist with national accounts statistics concerning imports, exports, and payments related to settlements within the Southern African Customs Union (SACU), mainly due to different data sources and valuation methods.
  - There are no material discrepancies with other datasets.

### Accessibility — Publications, metadata, and assistance
- GFS and fiscal publications
  - GFS statistics disseminated in the MFDP, BoB, and MLG publications are presented in a clear manner.
  - Introduction of charts and commentaries would facilitate analysis.
  - Deviations from international standards are not identified in the publications.
  - MFDP and MLG publications are only available in hard copy; BoB publications are also available on the bank’s Internet website.
  - Publications are released according to a regular, although not preannounced, schedule.
  - Publications are made available to all users simultaneously and without preferential treatment.
  - Statistics not routinely disseminated are sometimes made available.
- Metadata accessibility
  - No metadata for GFS are published domestically.
  - The only available information appears on the DSBB, to which the MFDP has a link on its website; the link is not readily visible.
  - For monetary statistics, a comprehensive document on sources and methods is not disseminated.
  - The BoB posts financial sector metadata on the DSBB website and regularly updates them; there is a direct link between the BoB’s website and the DSBB website, although more could be done to inform users.
  - For balance of payments, metadata are available only from the DSBB website; the BoB website provides a link to the DSBB but this is not associated with data publication.
- Assistance to users
  - Contact persons and details for each subject field are publicized in the metadata on the DSBB.
  - In general, limited assistance is provided to general public users of GFS.
  - The BoB publishes contact information and invites questions and comments; a list of publications is included in the BFS.
- Data accessibility (monetary and BOP)
  - Monetary data are clearly presented in the BoB’s monthly publication (BFS) and annual reports, both easily accessible on the BoB website; a hard copy of the BFS is distributed free of charge.
  - Approximate dates of release of the statistics are announced in the BFS and on the BoB website, and are generally met.
  - Balance of payments data are easily accessible through the BoB website and its statistical publications; the BFS is widely circulated and free to Botswana users.
  - Detailed data not routinely published are made available on request; contact details are easily available.

### Staff’s recommendations — Cross-cutting
- Strengthen cooperation between the MFDP, CSO, BoB, and other agencies to ensure timely compilation and exchange of data. The BoB should enjoy access to customs data, and the CSO should document what processing is carried out on trade data.
- Monitor the consistency of the main macroeconomic datasets and reconcile differences regularly.
- Give more emphasis to timeliness by using and disseminating more preliminary data.
- Establish a comprehensive list of institutional units consistent with the 1993 SNA sectorization to be applied consistently across all datasets.
- Establish and publicize direct links between the agencies’ websites and the DSBB to facilitate access to metadata. Keep metadata up-to-date.
- Support greater use of preliminary data by formalizing revision policies and implementing regular revision cycles.
- Maintain a current Business Register.

### Staff’s recommendations — By statistical domain
- National accounts
  - Increase the number of staff working on national accounts.
  - Document the methodology used to derive the 1994/95 benchmark estimates.
  - Undertake comprehensive surveys of enterprises at least every few years.
  - Introduce estimates for informal activities.
  - Bring classification and sectorization into line with the 1993 SNA.
  - Update the base year for the volume figures for GDP at least every five years.
- Consumer price index
  - Include owner-occupied housing in the CPI.
  - Improve the overall quality adjustment techniques.
- Wholesale price index
  - Increase the number of staff in the Price Statistics Unit, particularly those working on the WPI.
  - Develop concepts and definitions for Botswana’s WPI to meet the needs of data users. Decide whether to produce an output index (PPI), an Intermediate Consumption Index, or a Supply Price Index.
  - Develop a representative sample, including industries such as mining (gold and diamond industries), cattle production, etc.
  - Classify the WPI using internationally accepted standards such as ISIC and/or CPC.
  - Conduct ad hoc surveys. Include own-account production of market goods for own final consumption in the WPI.
- Government finance statistics
  - Compile and disseminate GFS for extrabudgetary institutions, consolidated central government, and consolidated general government, at least on an annual basis.
  - Formally assign responsibility for disseminating fiscal statistics to the public to the minister of the MFDP.
  - Allocate more human resources to the compilation and dissemination of GFS, and emphasize training in international methodologies. Reduce staff turnover.
  - Bring the classifications used for subannual and annual fiscal statistics on the operations of budgetary central government and local governments into conformity with the guidelines of the GFSM 1986. Consider adopting a migration path to the GFSM 2001.
  - Post the monthly summary cash-flow table on the MFDP’s website immediately after it becomes available. Compile a quarterly central government debt table and post it on the MFDP’s website. In this manner, Botswana would easily meet the GDDS timeliness standard.
- Monetary statistics
  - Report the BoB’s preliminary monthly accounting data with a level of detail compatible with the recommendations of the MFSM to the Research Department, in electronic form and no later than 15 working days after the reference month.
  - Review the report forms of the ODCs to ensure the most complete and timely information for supervisory and statistical purposes.
  - Establish electronic reporting systems to compile data from the ODCs.
- Balance of payments statistics
  - Improve estimation methods and statistical techniques. Review benchmarks regularly, particularly for valuation adjustments to imports. Develop estimates for unrecorded trade and other missing data. Identify, as a matter of urgency, alternative sources for travel data.
  - Initiate planning for redeploying staff and other resources from processing bank reports on foreign exchange transactions to address other needs (such as surveys) and produce data of higher quality. Ultimately, terminate the banks’ foreign exchange reporting requirement.
  - Establish a formal intragovernmental agreement or change of the Bank of Botswana Act (BoB Act) to clarify the BoB’s responsibility for compiling balance of payments data.

*Source: _cr07139 - 2. Methodological soundness*

### Appendix Table 4. Botswana: Overview of Current Practices Regarding Coverage,

### _cr07139 - Appendix Table 4. Botswana: Overview of Current Practices Regarding Coverage, Periodicity, and Timeliness of Macroeconomic Data Compared to the General Data Dissemination System

### Comprehensive framework — coverage, periodicity, timeliness (table highlights)
- Real sector: National accounts — Coverage: Yes; GDDS periodicity: A; Botswana periodicity: Q, A; GDDS timeliness: 10–14 months; Botswana timeliness: 17 months
- Fiscal sector: Central government operations — Coverage: Yes; GDDS periodicity: A; Botswana periodicity: NA; GDDS timeliness: 6–9 months; Botswana timeliness: NA
- Fiscal sector: General government operations — Coverage: No; GDDS periodicity: A; Botswana periodicity: A; GDDS timeliness: 6–9 months; Botswana timeliness: 8 months
- Financial sector: Depository corporations survey — Coverage: Yes; GDDS periodicity: M; Botswana periodicity: M; GDDS timeliness: 2–3 months; Botswana timeliness: 3 months
- External sector: Balance of payments — Coverage: Yes; GDDS periodicity: A; Botswana periodicity: A; GDDS timeliness: 6–9 months; Botswana timeliness: 4–9 months
- External sector: International investment position — Coverage: Yes*; GDDS periodicity: A; Botswana periodicity: A*; GDDS timeliness: 6–9 months; Botswana timeliness: 9 months

### Data categories and indicators — selected items (periodicity and timeliness preserved)
Real sector
- GDP (nominal and real) — Coverage: Yes; GDDS periodicity: A (Q); Botswana periodicity: Q, A; GDDS timeliness: 6–9 months; Botswana timeliness: 8 months
- Gross national income, capital formation, saving — Coverage: Yes; GDDS periodicity: A; Botswana periodicity: A; GDDS timeliness: 6–9 months; Botswana timeliness: 8 months
- Manufacturing or industrial production index/indices — Coverage: No; GDDS periodicity: M; Botswana periodicity: As relevant; GDDS timeliness: NA; Botswana timeliness: 6–12 weeks
- Primary commodity, agricultural, or other indices — Coverage: No; GDDS periodicity: M; Botswana periodicity: As relevant; GDDS timeliness: NA; Botswana timeliness: 6–12 weeks
- Consumer price index — Coverage: Yes; GDDS periodicity: M; Botswana periodicity: M; GDDS timeliness: 1–2 months; Botswana timeliness: 1–2 months
- Producer price index — Coverage: No; GDDS periodicity: M; Botswana periodicity: Q; GDDS timeliness: 1–2 weeks; Botswana timeliness: Q
- Employment — Coverage: Yes; GDDS periodicity: A; Botswana periodicity: Semi-annual; GDDS timeliness: 6–9 months; Botswana timeliness: 7 months
- Unemployment — Coverage: Yes; GDDS periodicity: A; Botswana periodicity: A; GDDS timeliness: 6–9 months; Botswana timeliness: 6–9 months
- Wages/earnings (all sectors) — Coverage: Yes; GDDS periodicity: A; Botswana periodicity: Semi-annual; GDDS timeliness: 6–9 months; Botswana timeliness: 7 months

Fiscal sector
- Central government budgetary aggregates (revenue, expenditure, balance, financing with breakdowns) — Coverage: Yes; GDDS periodicity: Q; Botswana periodicity: Q; GDDS timeliness: 1 quarter; Botswana timeliness: 4–9 months
- Interest payments — Coverage: Yes; GDDS periodicity: Q; Botswana periodicity: Q; GDDS timeliness: 1 quarter; Botswana timeliness: 4–9 months
- Central government debt (domestic and foreign, with breakdowns) — Coverage: Yes; GDDS periodicity: A (Q); Botswana periodicity: A (Q); GDDS timeliness: 1–2 quarters; Botswana timeliness: 12 months
- Government-guaranteed debt — Coverage: Yes; GDDS periodicity: A (Q); Botswana periodicity: A; GDDS timeliness: 1–2 quarters; Botswana timeliness: 12 months

Financial sector
- Broad money and credit aggregates — Coverage: Yes; GDDS periodicity: M; Botswana periodicity: M; GDDS timeliness: 1–3 months; Botswana timeliness: 3 months
- Central bank aggregates — Coverage: Yes; GDDS periodicity: M; Botswana periodicity: M; GDDS timeliness: 1–2 months; Botswana timeliness: 3 months
- Short- and long-term government security rates, policy variable rate — Coverage: Yes; GDDS periodicity: M; Botswana periodicity: D, M; GDDS timeliness: In high frequency publication; Botswana timeliness: In high frequency publication
- Money or interbank market rates and a range of deposit and lending rates — Coverage: Yes; GDDS periodicity: M; Botswana periodicity: M; GDDS timeliness: 1 day; Botswana timeliness: 1 day
- Share price index — Coverage: Yes; GDDS periodicity: M; Botswana periodicity: W,M; GDDS timeliness: In high frequency publication; Botswana timeliness: 1 day

External sector
- Balance of payments aggregates — Coverage: Yes; GDDS periodicity: A (Q); Botswana periodicity: A; GDDS timeliness: 6 months; Botswana timeliness: 9 months
- Public and publicly guaranteed external debt outstanding, with maturity breakdown — Coverage: Yes; GDDS periodicity: Q; Botswana periodicity: Twice yearly; GDDS timeliness: 1−2 quarters; Botswana timeliness: 3−6 months
- Public and publicly guaranteed debt-service schedule — Coverage: No; GDDS periodicity: A; Botswana periodicity: A; GDDS timeliness: 6−9 months; Botswana timeliness: 12 months
- Private external debt not publicly guaranteed — Coverage: No; GDDS periodicity: NA; Botswana periodicity: NA; GDDS timeliness: NA; Botswana timeliness: NA
- Gross official reserves denominated in U.S. dollars — Coverage: Yes; GDDS periodicity: M; Botswana periodicity: M; GDDS timeliness: 1−4 weeks; Botswana timeliness: 1 month
- Reserve-related liabilities — Coverage: No; GDDS periodicity: M; Botswana periodicity: NA; GDDS timeliness: 1−4 weeks; Botswana timeliness: NA
- Total exports and total imports — Coverage: Yes; GDDS periodicity: M; Botswana periodicity: M; GDDS timeliness: 8–12 weeks; Botswana timeliness: 4 weeks
- Major commodity breakdowns with longer time lapse — Coverage: Yes; GDDS periodicity: M; Botswana periodicity: M; GDDS timeliness: 8–12 weeks; Botswana timeliness: 4 weeks
- Exchange rates: spot rates — Coverage: Yes; GDDS periodicity: D; Botswana periodicity: D; GDDS timeliness: In high frequency publication; Botswana timeliness: 1 day

### Authorities’ overview and key administrative facts
- Response prepared by Bank of Botswana (BoB) and Ministry of Finance and Development Planning (MFDP), including Central Statistics Office (CSO)
- The high-level Statistics Producers Committee (SPC) was established following the 2001 ROSC and "has worked well"
- As of March 2007, National Accounts Unit professional staff was increased by one
- Existing policy: metadata to be updated annually
- Ongoing enterprise census to bring Business Register up to date
- BoB will take up direct access to customs data through the MFDP; CSO will include additional methodology material on its website

### Summary of recommendations accepted and implementation priorities (selected)
Cross-cutting
- Strengthen cooperation between MFDP, CSO, BoB, and other agencies; BoB to seek access to customs data; CSO to document trade-data processing
- Monitor consistency of main macroeconomic datasets and reconcile differences regularly
- Give more emphasis to timeliness by using and disseminating more preliminary data; formal high-level review required before changes
- Establish comprehensive list of institutional units consistent with the 1993 SNA (recommendation accepted; modalities and technical assistance to be considered)
- Establish and publicize direct links between agencies’ websites and the DSBB; maintain metadata (existing policy: annual updates)
- Support greater use of preliminary data by formalizing revision policies and implementing regular revision cycles (already being implemented; BoB includes relevant information in the monthly Botswana Financial Statistics (BFS))
- Maintain a current Business Register (ongoing enterprise census; BoB to share changes to annual balance of payments survey coverage with CSO)

National accounts
- Increase staff in National Accounts Unit (action: CSO increased professional staff by one as of March 2007; Priority: medium term)
- Document methodology for 1994/95 benchmark estimates (accepted; CSO committed to work on it; Priority: short term)
- Undertake comprehensive enterprise surveys at least every few years (AES being conducted annually; Priority: short term)
- Introduce estimates for informal activities (Informal Sector Survey underway; implementation subject to technical support; Priority: medium term)
- Bring classification and sectorization into line with the 1993 SNA (accepted; Priority: short term)
- Update base year for volume GDP at least every five years (plans under way to rebase national accounts; Priority: medium term)

Consumer price index
- Include owner-occupied housing in CPI (CSO will investigate; not attainable in short or medium term)
- Improve quality adjustment techniques (accepted)

Wholesale price index
- CSO agrees to recommendations regarding WPI and will implement within the medium term

Government finance statistics
- Compile and disseminate GFS for extrabudgetary institutions, consolidated central government, and consolidated general government at least annually (noted; source data for extrabudgetary institutions not in GABS; MFDP staff shortages constrain)
- Formally assign responsibility for disseminating fiscal statistics to the public to the minister of the MFDP (release of information to National Assembly accompanied by budget tables; plans to post selected tables on MFDP website)
- Allocate more human resources and emphasize training in international methodologies; reduce staff turnover (one CFU officer attending IMF GFS course; recruitment of three more officers underway; expected CFU staff complement to be four by end of year and five after one returns from long-term training)
- Bring classifications for subannual and annual fiscal statistics into conformity with GFSM 1986 and consider migrating to GFSM 2001 (plans under way; constrained by staff shortages)
- Post monthly summary cash-flow table on MFDP website immediately after availability; compile quarterly central government debt table and post on website (commitment made; IT setback delayed updates; plan to update CS-DRMS and post reports by end of second quarter of 2007)

Monetary statistics
- Report BoB’s preliminary monthly accounting data with detail compatible with MFSM recommendations to Research Department in electronic form no later than 15 working days after reference month (modalities being examined)
- Review ODC report forms; establish electronic reporting systems from ODCs (reporting template under review; new format and electronic reporting being developed)

Balance of payments statistics
- Improve estimation methods and statistical techniques; review benchmarks regularly; develop estimates for unrecorded trade and other missing data; identify alternative sources for travel data (to be examined; use of detailed customs data under investigation; BoB to support Department of Tourism)
- Plan redeployment of staff from processing bank foreign exchange reports to other needs (surveys) and ultimately terminate banks’ foreign exchange reporting requirement (2007 pilot: surveys of trade in services conducted in parallel with collecting bank information; way forward to be determined after trial)
- Establish formal intra-governmental agreement or change BoB Act to clarify BoB responsibility for compiling balance of payments data (modalities to be examined; BoB currently has broad legal powers to collect information)

### Documents, frameworks, and assessment scope (selected)
- Detailed Assessments Using the Data Quality Assessment Framework (DQAF) prepared by the Statistics Department; approved March 27, 2007
- Assessment covers national accounts, prices (CPI and WPI), government finance, monetary, and balance of payments statistics
- WPI assessed against Producer Price Index Manual 2004 (PPI Manual) due to termination of PPI compilation in 2001

*Source: Appendix Table 4 and related sections of the Report on the Observance of Standards and Codes (ROSC)—Data Module, Botswana, March 27, 2007.*

### 0. Prerequisites of quality

### 0. Prerequisites of quality

### 0.1 Legal and institutional environment

- Responsibility for collecting, processing, and disseminating the statistics:
  - The Central Statistics Office (CSO), a department of the Ministry of Finance and Development Planning (MFDP), operates within the legal framework of the Statistics Act (1967).
  - MFDP defines statistical policy through its permanent secretary; the government statistician (head of the CSO) programs CSO operations.
  - The Statistics Act authorizes collection of source data for national accounts subject to the Act and direction of the minister of the MFDP.
  - The government statistician is responsible for collection, tabulation, analysis, and publication.
  - Published statistics should be laid before the national assembly within 14 days of their release.

- Data sharing and coordination:
  - Past problems with receipt and timeliness of data from other government agencies were addressed by establishing a Statistics Producer Committee (representatives from major data-producing agencies, including the Bank of Botswana (BoB) and the MFDP).
  - The committee meets three times per year and has been effective in resolving data-sharing problems.
  - A previously identified problem with supply of trade in services breakdowns from the BoB (noted in the 2001 ROSC) has been resolved.

- Confidentiality and use of individual reporters’ data:
  - All persons employed under the Statistics Act must sign a declaration of secrecy on entry; this applies to non-CSO staff including consultants.
  - Breaches and insider use of information are offenses punishable by fine and/or imprisonment.
  - Questionnaires contain a confidentiality statement: CSO cannot publish information relating to an identifiable business without written permission; data treated in strict confidence, used for statistical purposes only, and published only in aggregate form.
  - The confidentiality statement does not specify the aggregation rule used; no formal statement exists within the CSO.
  - Unit records may be provided to researchers with identification details removed.
  - Data forms are kept under lock and key; disposal forms are shredded onsite; rooms locked when empty; computer systems protected by passwords.
  - Recommendation: The aggregation rule for indirect disclosure of respondents’ data should be stated formally and circulated to all relevant staff.

- Legal mandate and measures to encourage response:
  - Statistical reporting is ensured through legal mandate; refusal, neglect, or false statements are offences subject to fine and/or imprisonment.
  - CSO prefers persuasion rather than legal approach to obtain response.
  - Statistics Act gives CSO power to obtain information for any inquiry under the Act and to access public or other records with ministerial approval; authorizing officer must comply with any oath of secrecy required by the agency involved.
  - CSO does not have the right to inspect books and records, premises, and inventories of businesses or persons in cases of noncompliance.
  - A contact telephone number is included on questionnaires for respondent assistance.

### 0.2 Resources

- Staff, facilities, computing resources, financing:
  - NASU staff size and composition: staff of 10, consisting of the unit head, three statisticians, one statistical officer (diploma level), and five nonprofessionals engaged in data collection and data entry operations.
  - A separate Census Office provides additional support for collection of source data.
  - The number of staff is not considered sufficient for the established work program, resulting in delays in national accounts production; government constraints make it difficult to increase staff without affecting other activities.
  - Qualifications of NASU staff are adequate with a fair mix of professionals and nonprofessionals.
  - Training opportunities include IMF national accounts training in Washington, D.C., and regional and European courses.
  - Civil service salary levels are low compared to the private sector, causing recruitment and retention problems.
  - A restructuring plan for the MFDP under consideration may give more autonomy to the CSO and could resolve recruitment and salary restrictions.
  - Computer resources: regular program for updating PCs; plans to replace servers supporting the network; problem with developing in-house software but approval obtained to recruit three new programmers; approval obtained to set up a backup facility in a regional office for offsite backups.
  - Working facilities are run down and overcrowded; occasional problems obtaining transport vehicles; funding for statistical program is adequate except for recruitment and salary restrictions.
  - Recommendation: Find some means to increase the number of staff working on national accounts.

- Measures to ensure efficient use of resources:
  - All staff undergo an annual performance review.
  - Staff perception surveys conducted in 1998 and 2004 allowed anonymous views to generate improvements in practices.
  - Line managers are responsible for ensuring efficiency of work programs.

### 0.3 Relevance

- Monitoring relevance and practical utility:
  - CSO established annual user meetings but found them not useful because users were not forthcoming.
  - CSO set up reference groups comprising senior government and private users for each subject area and solicits their views when significant change is considered.
  - CSO staff active in international meetings and seminars, particularly those organized by the Southern African Development Community (SADC) Statistics Committee.

### 0.4 Other quality management

- Processes to focus on quality:
  - CSO management is committed to data quality; vision and mission statements displayed in the office.
  - No formal training offered for staff, but supervisors actively promote quality issues.
  - An active program exists to improve efficiency in work processes, with due consideration to quality.

- Processes to monitor quality of the statistical program:
  - Managers regularly monitor work processes; supervisors check team work.
  - Computer systems have built-in checks on data capture and processing.
  - A technical working group reviews all new questionnaires but does not review other work processes.
  - Recommendation: Extend the activities of the technical working group to cover work processes.

- Quality considerations in planning the statistical program:
  - CSO policy considers the trade-off between accuracy and timeliness.
  - Evidence suggests too much emphasis on accuracy at the expense of timeliness for national accounts; staff do not finalize processing of surveys until they achieve a response rate of at least 60 percent, resulting in publication delays (as stated in 4.1.2).

*Source: _cr07139 - 0. Prerequisites of quality*

### 2.3       Classification/sectorization

### 2.3       Classification/sectorization

### Classification systems and sectorization: findings
- Institutional sectors, transactions, and other flows are broadly in line with the 1968 SNA.
- Production activities are classified using the Botswana Standard Industrial Classification National Accounts (BSIC), which is broadly equivalent to the International Standard Industrial Classification of All Economic Activities (ISIC).
- The CSO is still using BSIC 2, rather than BSIC 3.
- The Classification of Individual Consumption by Purpose (COICOP) is now used for household final consumption.
- The Classification of the Functions of the Government (COFOG) is not used.
- Imports and exports are classified using the Standard International Trade Classification (SITC).
- A particular problem exists with the classification of taxes on products:
  - Customs duties and excise taxes collected within the Southern African Customs Union (SACU) are paid into a central pool and distributed to member countries according to established formulas.
  - The CSO currently includes all its receipts from SACU in taxes on products, whereas they should only include those duties collected on transactions relevant to Botswana.
  - Duties collected in the other member countries, which relate to production within those countries, will enter the Botswana figures only via imports. Such imports are deducted from the expenditure estimates for Botswana’s GDP and thus will cancel out within the GDP expenditure estimates, since they are also included within final expenditure.
  - To maintain the conceptual identity between GDP measured from the production and expenditure approaches, only duties collected on transactions relevant to Botswana should be included in taxes on products. This change could have a significant impact on the figures.
- Recommendation summary for classification/sectorization:
  - Adopt the BSIC Rev.3 classification as soon as is practicable.
  - Replace receipts from SACU with the corresponding duties on transactions relevant to Botswana.

### Basis for recording: valuation and recording practices (section 2.4)
- Market prices are used to value flows and stocks; valuation rules are generally in line with the 1993 SNA.
- Important exceptions and issues:
  - Imports of goods are still valued c.i.f. (cost, insurance and freight), even though the CSO is able to convert them to the f.o.b. (free on board) basis required by the 1993 SNA. Owing to the lack of resources, the figures have not been converted to f.o.b. yet.
  - The CSO should be careful in this conversion since significant imports come from Botswana’s neighbors. Therefore, the f.o.b. value as the goods leave the exporting country will be identical to the c.i.f. value as they enter Botswana.
  - Market output is recorded at basic prices, as are agricultural goods and capital formation produced for own final use.
  - The output of diamond mining uses the value of exports as declared to customs because the CSO can get quantity data, but not prices; this method ensures consistency between production and export figures but relies on the accuracy of the export values.
  - Intermediate and final consumption are valued at purchaser’s price.
  - Intermediate consumption excludes deductible value-added tax (VAT), as required in the 1993 SNA.
  - Wording on the new 2005/06 economic survey forms may be misleading: it asks purchasers to “exclude the portion of VAT refunded by government.” The recommended clearer wording is “exclude deductible, but include nondeductible, VAT.” Enterprises are asked to exclude sales tax and VAT from their figures for sales, but not excise duties.
- Recommendations (valuation and survey wording):
  - Convert the imports of goods to an f.o.b. valuation.
  - The NASU should seek to clarify the treatment of taxes in the 2005/06 economic survey.
- Recording basis:
  - Transactions and flows are recorded on an accrual basis and work-in-progress is allocated to the period in which it is produced.
  - All government transactions are recorded on a cash basis; consequently, data for taxes and subsidies on products are also recorded on a cash basis.
  - These could be converted to an accrual basis by identifying the average period between when they accrue and when they are actually paid.
- Recommendation (recording):
  - The NASU should develop a methodology for converting the taxes and subsidies on products to an accrual basis.
- Grossing/netting:
  - Transactions between establishments within the same enterprise are recorded on a gross basis.

### Accuracy and reliability — source data and assessments (section 3)
- Source data and data-collection programs:
  - The last annual benchmark estimates were done for 1994/95.
  - The CSO uses internal data systems for prices, merchandise trade, and industrial statistics; the NASU also operates its own surveys of enterprises.
  - The Annual Enterprise Survey (AES) has not been undertaken for any year since 1994/95 due to resource constraints; a new AES for 2005/06 has recently been sent out and will be used to construct a new benchmark set of GDP estimates.
  - Main source for annual enterprise data currently is the quarterly Survey of Recent Trends (SRT) to large enterprises.
  - Administrative sources used include the BoB, the MFDP, the Ministry of Agriculture (MOA), the Ministry of Minerals, Energy, and Water Affairs (Department of Mining), and other government bodies.
  - Coverage is comprehensive except for very small enterprises with fewer than five employees.
- Enterprise and Establishment Register (EER):
  - The EER covers approximately 43,000 establishments and contains information on the company’s name, location, telephone number, date of registration, type of activity, and employment size.
  - The CSO is undertaking a full census of all businesses using enumerators to list active producers to update the EER.
- Survey design and coverage:
  - AES questionnaires are sent to all large enterprises with 50 or more employed persons, and to a sample of medium-sized businesses (20–49 employees) and small (5–19 persons) operations.
  - Enterprises with fewer than five employees are not generally included unless dominant in a specific industry.
  - Enumerated establishments account for about 68–75 percent of GDP.
  - Selection for the SRT is an interval sample of large enterprises.
- Agriculture and household data:
  - Agriculture data are compiled by the MOA and cover traditional farmers and commercial farmers, based on estimates of field use and mailed questionnaires.
  - Household final consumption data come from periodic household income and expenditure surveys (HIES); the last HIES covered June 2002 to August 2003 and sampled 6,053 households (representing 1.5 percent of the total number of households in Botswana).
  - The results of the HIES are also used to derive weights for the consumer price index (CPI).
- Government and trade data:
  - Quarterly data for central government are obtained from the MFDP.
  - Data for local government are not available on a timely basis; latest year for which final outturn figures are available is 2002/03.
  - Imports and exports of goods are obtained from the CSO’s foreign trade statistics database; services use the balance of payments compiled by the BoB.
  - The CSO’s Trade Statistics Unit (TSU) processes external trade data using the Common Customs Area (CCA) form for SACU transactions and bills of entry for non-SACU; EUROTRACE software is used for outputs.
  - Concerns exist about the reliability of some significant exported goods; BoB gets some data directly from companies and has suggested TSU use these figures. TSU plans to approach companies directly for more details; this should be discussed with BoB to avoid excessive demands and confidentiality issues.
- Price indices and quantity data:
  - The main price index used for volume estimates of GDP is the monthly CPI.
  - The CSO no longer compiles a producer price index (PPI) because the old PPI was not considered reliable and was not used in national accounts.
  - Since the beginning of 2006, the SRT has been collecting data on quantities from goods-producing enterprises, but quality issues have been identified with these data.
- Recommendations (source data and surveys):
  - Undertake comprehensive surveys of enterprises every few years, at least.
  - Liaise with the BoB to ensure reliable export data can be obtained while limiting demands on businesses and addressing confidentiality.
  - Continue to work to improve the quality of the data on quantities collected through the SRT.
- Source data conformity and timeliness:
  - Source data usually conform to national accounts requirements, but problems include government cash-recording basis (not accrual), imports/exports of services only available for calendar years (not the July–June reporting year), and lack of informal sector coverage.
  - The CSO surveys face long delays due to low response rates; NASU targets a minimum 60 percent response rate.
  - Recommendation: Consult with data suppliers to get source data more suited to national accounts; continue to work on improving survey response.
- Assessment and quality control:
  - Random post-enumeration checks are usually undertaken by supervisors.
  - Random sampling techniques are not used for CSO surveys, so sampling errors are not known. Information is not available for nonsampling errors or nonresponse rates.
  - Figures for nonresponding enterprises are imputed based on data for other enterprises in the same activity or by reference to tax records for large firms.
  - Most source data are not subject to revisions; when revisions occur the reason is identified and revisions are incorporated into the next release.
  - Recommendation: Monitor nonsampling errors and rates of nonresponse.

### Statistical compilation techniques and methodological issues (section 3.3)
- General compilation practices:
  - Computer programs ensure no processing errors; no adjustments to unit records without checking respondents.
  - Imputations for nonresponse are based on related establishments; data are compared with similar businesses and unusual values queried with respondents.
- Documentation and staff knowledge:
  - Detailed methodologies used to compile the 1994/95 benchmark estimates are not known by NASU staff, even though the head of NASU at the time still works in the CSO; this will complicate compilation of the new 2005/06 benchmark figures in a consistent way.
  - Owing to lack of knowledge and staff constraints, only the GDP estimates measured from the production and expenditure approaches have been compiled after 2001/02.
- Informal sector:
  - No specific adjustment is made for the informal sector in existing estimates.
  - The 2002/03 HIES collected information on informal activities undertaken by households; these data could be used to derive a reasonable estimate of the size of the informal sector.
- Production approach details:
  - Estimates of output and intermediate consumption are compiled at the three-digit BSIC level.
  - Current estimates are derived by extrapolating forward the 1994/95 benchmark estimates using the quarterly SRT.
  - Output of owner-occupied dwellings is valued as estimated rentals tenants would pay.
  - Work-in-progress is not applied to agriculture and livestock.
  - Inventory valuation adjustments are not made due to resource constraints and lack of information.
  - Consumption of fixed capital derived using the perpetual inventory method in line with 1993 SNA, but not compiled using this methodology after 2001/02.
  - Lack of suitable price indices (e.g., PPI) forces use of CPI components as deflators; same price is used to deflate intermediate consumption and gross output.
  - Volume estimates for taxes less subsidies on products and trade margins are estimated by applying base-year rates to corresponding volume estimates, per 1993 SNA.
  - Volume figures for GDP are compiled at 1993/94 prices.
- Expenditure approach details:
  - Central government final consumption is estimated by subtracting receipts of fees and charges from gross output.
  - Local government component growth is assumed equal to central government for years without local government data.
  - Gross fixed capital formation:
    - Construction gross output estimated by dividing value added at current prices for each year by 0.3 (the ratio of value added to gross output for construction in the 1994/95 benchmark).
    - Only 70 percent of the resulting value is allocated to gross fixed capital formation because 30 percent of gross output in construction is for repair and maintenance.
    - Estimates for machinery and equipment are derived from imports less reexports for Chapters 82, and 84–89 of the Harmonized System of Trade Classification of Botswana (items considered capital goods). For Chapter 87 (motor vehicles), only a proportion (plus a 20 percent trade and transport margin) enters capital formation; the remaining is for household and intermediate use. For the other chapters on capital goods, a 12.5 percent markup is added for trade and transport margin.
  - Adjustments for trade and transport margins use ratios derived from the 1994/95 benchmark figures.
- Household final consumption and inventories:
  - 1993/94 HIES was used to derive independent estimates for the benchmark year; that benchmark has been extrapolated forward using retail sales surveys, imports of consumption goods, and agricultural output.
  - Resulting figures show household consumption not much higher than government final consumption and gross fixed capital formation for all years including the 1994/95 benchmark; without documentation for 1994/95 benchmarking this cannot be resolved. The 2002/03 HIES could be used to derive independent estimates for that year.
  - “Other” component of changes in inventories is estimated as a residual for nonbenchmark years; for benchmark years actual AES values are used.
  - NASU publishes a series for “errors and omissions”; for benchmark years this is difference between production and independently derived expenditure figures; for other periods it contains occasional arbitrary values and it is suggested zeros be recorded for all periods other than benchmark years.
  - NASU publishes a detailed breakdown of expenditure components, but methods used for nonbenchmark years do not warrant such breakdowns because each component is extrapolated using the same factor as the total.
  - No attempt is made to derive estimates for valuables (e.g., jewelry, works of art).
- Price indices and quarterly procedures:
  - CPI is generally used to compile volume measures of expenditure components.
  - For nonbenchmark years, other changes in inventories should be derived by residual for consistency.
  - Annual GDP estimates since the 1994/95 benchmark are derived by adding quarterly values; no benchmarking required until the new 2005/06 annual figures are derived.
  - NASU is familiar with the recommended Denton technique for benchmarking; this is likely to change GDP estimates back to the 1994/95 benchmark.
  - Quarterly series are not currently seasonally adjusted; NASU plans to do so when resources permit.

*Source: _cr07139 - 2.3       Classification/sectorization*

### 1. The methodology used to derive the benchmark estimates for 1994/95 must be fully

### _cr07139 - 1. The methodology used to derive the benchmark estimates for 1994/95 must be fully

### Key recommendations (national accounts compilation)
- The methodology used to derive the benchmark estimates for 1994/95 must be fully documented.
- The NASU should attempt to derive an estimate of the size of the informal sector—this will probably require technical assistance.
- Adjust figures for changes in inventories to remove holding gains/losses.
- Resurrect the perpetual inventory method for compiling estimates for consumption of fixed capital.
- Update the base year for the volume figures for GDP at least every five years.
- Investigate apparently low figures for household final consumption by deriving independent estimates using the 2002/03 HIES.
- Do not include values for errors and omissions in nonbenchmark years, and derive values for other inventories by residual.
- Once the benchmark GDP estimates for 2005/06 have been derived, link the quarterly series to these values using the Denton technique.
- Seasonally adjust the quarterly GDP estimates when resources permit.

### Assessment and validation of intermediate data and outputs (findings)
- Intermediate results for significant activities (for example, mining) are assessed against related indicators such as volume and price trends, but in many cases no independent estimates are available for checks.
- No established procedure exists for checking statistical discrepancies in intermediate data; ad hoc assessments are undertaken, usually only after discrepancies are identified.
- Provisional GDP estimates have no statistical discrepancy because there is a residual item for GDP by expenditure; comprehensive national accounts show net errors and omissions explicitly.
- Supply and Use Tables (SUTs) are no longer constructed owing to resource constraints.
- Quarterly GDP estimates are not seasonally adjusted.

### Revision studies (findings and recommendation)
- The magnitude of any revision is monitored, but studies and analyses of revisions are not conducted.
- Recommendation: Instigate a regular program of revision studies when resources permit.
- Individual revisions are investigated, but formal measurement, analysis, and publication of revision studies are not conducted.
- Recommendation: Once a regular program of revision studies has been implemented, publish the results.

### Serviceability — periodicity and timeliness (findings and recommendations)
- Annual GDP estimates at current and constant prices are produced for both production and expenditure approaches.
- Quarterly GDP estimates at current and constant prices from both approaches are disseminated, as encouraged in the GDDS and prescribed in the SDDS.
- Provisional annual GDP estimates are disseminated with a timeliness of eight months as part of the budget speech to the national assembly, which meets the GDDS core indicator timeliness of six to nine months.
- The latest comprehensive national accounts in the GDDS core framework were disseminated in March 2000 for the reference year 1994/95—a lag of almost five years.
- Quarterly GDP estimates were published only for the years 1993/94 to 2002/03. Figures have been prepared up to the June quarter of 2006 but still need evaluation before publication.
- The CSO had hoped to meet the SDDS timeliness requirement of three months for quarterly GDP by mid-2002 but has not achieved this.
- Recommendation: Put the compilation of quarterly GDP estimates on a regular basis, ideally meeting the SDDS prescription for timeliness.
- Disseminate comprehensive national accounts statistics with a time lag of less than two years (medium term); regularize dissemination of quarterly national accounts (current and constant prices) with a lag of three months (short term).

### Serviceability — consistency (findings and recommendation)
- In nonbenchmark years, production and expenditure GDP figures are not derived independently; consistency is attained by deriving a residual item on the expenditure side.
- For the comprehensive 1994/95 accounts, the statistical discrepancy between production and expenditure estimates was small.
- GDP estimates at current prices are available for 15 years without breaks; the CSO adjusts back series to account for methodological developments and to avoid discontinuities.
- Differences in reporting periods and adoption of international standards limit reconciliation with other frameworks (for example, balance of payments components).
- Recommendation: Work with other statistics producers to improve consistency between the various systems.

### Serviceability — revision policy and practice (findings and recommendation)
- First annual national accounts estimates for a year are disseminated as part of the budget speech, together with revised figures for the previous year; subsequent changes reflect source data and methodology changes.
- Revisions do not follow a regular pattern; estimates are shown as provisional until the next benchmark year is introduced.
- The provisional status of estimates is identified in footnotes to tables.
- Recommendation: Establish and publish a formal revision policy for national accounts statistics.

### Accessibility — data dissemination (findings and recommendations)
- Detailed national accounts breakdowns are disseminated: National Accounts of Botswana includes a 21-year time series; Statistical Bulletin includes up-to-date GDP estimates covering an 11-year period; a 7-year annual time series is disseminated on the CSO’s website.
- Hard copy publications include executive summaries and analyses with charts and diagrams. Some users request calendar-year figures; these could be provided by showing calendar-year totals alongside July-to-June totals in quarterly publications.
- Recommendation: Include calendar-year totals in the quarterly national accounts publications.
- Annual GDP estimates are first released as part of the budget speech (Annual Economic Report by the MFDP), then in the CSO’s Statistical Bulletin; the National Accounts of Botswana (covering 1974/75 to 1994/95) was released in March 2000. National Accounts Statistics of Botswana: Quarterly Gross Domestic Product 1993/94–2002/03 was published in September 2004.
- Data are placed on the CSO’s website after hard copy publication; recommendation is to adopt immediate electronic dissemination when data are publishable and to provide internally produced releases for users without website access.
- Users express interest in downloadable Excel format for data on the CSO’s website.
- Recommendations:
  - More use should be made of the CSO’s website and in-house information releases to disseminate data on national accounts as quickly as possible.
  - The data on the CSO’s website should be in downloadable Excel format.
  - The CSO should work toward producing an advance release calendar giving the actual dates when national accounts will be published; publish this release calendar and include it on the CSO’s website.
  - Provide details of the availability of additional data in publications and on the CSO’s website.

### Accessibility — metadata and user assistance (findings and recommendations)
- A comprehensive document on sources and methods is not available; a brief (eight to ten pages) description of sources and methods is contained in every publication.
- Methodological notes are provided in appendices of national-accounts hard copy publications but are not available on the CSO’s website; no hyperlink to the DSBB is provided.
- Recommendation: Produce and publish a detailed methodological guide when resources permit.
- Recommendation: Include all available metadata on the CSO’s website and provide a link to the DSBB.
- A named contact person (including e-mail address and phone number) for national accounts is given in the latest quarterly GDP publications.
- A list of recent publications and forthcoming releases is given on the CSO’s website and in each publication; costs and how to obtain publications are stated.

### Data quality assessment summary (selected items)
- The Statistics Act is being revised to give greater responsibility to the government statistician and the CSO in collection, production, and dissemination of statistics (short term).
- Not enough staff to operate existing program; a new office is to be established once the Statistics Act is approved (short term).
- Not yet fully consistent with the 1993 SNA.
- Institutional sectors are based on 1968 SNA; ISIC 3-based industrial classification has not been implemented.
- Imports are not recorded f.o.b.; government figures are on a cash basis.
- Enterprise survey to collect annual data is not run every year; implement a comprehensive AES to provide a current benchmark for the QNA and a basis for rebasing constant price estimates (short term).
- Lack of information on nonsampling errors or nonresponse rates.
- Lack of information on how the 1994/95 benchmark estimates were compiled; no estimates for informal activities; base year for volume estimates is still 1993/94; arbitrary values included for errors and omissions in some years; figures for changes in inventories are not adjusted for holding gains/losses; quarterly GDP estimates are not seasonally adjusted.
- Recommendation: Revise the national accounts operational manual once the 1993 SNA is successfully implemented (medium term); redevelop worksheets for the national accounts and prepare a QNA operational manual (short term).
- Disseminate comprehensive national accounts statistics with a time lag of less than two years (medium term); regularize dissemination of quarterly national accounts with a lag of three months (short term).
- Prepare a revised sources and methods document and a revised format for the quarterly national accounts publication (short term).

*Source: _cr07139 (IMF mission report content provided in the source PDF).*

### 0.2       Resources

### 0.2       Resources

### 0.2.1 Staff, facilities, computing resources, and financing

- Staff:
  - The CSO’s Prices Statistics Unit (PSU) has a staff of four, consisting of the unit head and three statisticians.
  - Regional offices provide additional support for collection and data entry of the CPI.
  - The number of staff is not considered sufficient for the established work program.
  - Government constraints make it difficult to increase staff working on prices without adversely affecting other activities.
  - The four staff and the support and data entry staff of the PSU seem to be adequate, with a fair mix of professionals and nonprofessionals.
  - Civil service salary levels are low compared to the private sector, causing problems in recruiting new staff and in retaining staff.
  - A restructuring plan for the MFDP, currently under consideration, may give more autonomy for the CSO and could resolve restrictions on recruitment and salary levels.
  - Training opportunities exist, such as the IMF’s price training course in Washington, D.C., other regional and European courses.

- Computing and IT:
  - Computer resources are quite good because financing for improvements is less restricted than for staff recruitment and salaries.
  - There is a regular program for updating PCs.
  - The CSO plans to replace the servers supporting the network.
  - A problem currently exists with developing in-house software.
  - Approval has been obtained to recruit three new programmers to assist with software development.
  - Approval has also been obtained to set up a back-up facility in one of the regional offices, usable for offsite backups.

- Facilities and financing:
  - Working facilities are somewhat run down and overcrowded.
  - Occasional problems arise obtaining the appropriate transport vehicle from the government agency supplying this service, but generally this operates satisfactorily.
  - Except for restrictions on recruitment and salary levels, funding for the statistical program is adequate.

- Recommendation:
  - Find some means to increase the number of staff working on prices.

### 0.2.2 Measures to ensure efficient use of resources

- All staff undergo an annual performance review.
- Staff perception surveys were conducted in 1998 and 2004 to solicit anonymous views; wherever possible these views were used to generate improvements in practices.
- Line managers are responsible for ensuring the efficiency of their work programs.

### 0.3 Relevance

- User engagement:
  - The CSO established annual meetings of users but found them unhelpful because users were not forthcoming.
  - As an alternative, the CSO set up a reference group comprising senior government and private users for each subject area and solicits their views when significant changes are being considered.
- International engagement:
  - CSO staff are active in international meetings and seminars, particularly those organized by The Southern African Development Community (SADC) Statistics Committee.

### 0.4 Other quality management

- 0.4.1 Processes to focus on quality
  - CSO management is committed to data quality and cascades this concern through the ranks.
  - A vision and mission statement are prominently displayed around the office.
  - No formal training is offered for staff, but supervisors actively promote quality issues.
  - Given resource constraints, an active program to improve efficiency in work processes exists and reviews pay due consideration to quality.

- 0.4.2 Monitoring quality of the statistical program
  - Managers regularly monitor work processes; supervisors check the work of their teams.
  - Computer systems have built-in checks on all aspects of data capture and processing.
  - A technical working group reviews all new questionnaires but does not review other work processes.
  - Recommendation: Extend the activities of the technical working group to cover work processes.

- 0.4.3 Quality considerations in planning the statistical program
  - Consideration is always given to the trade-off between accuracy and timeliness.

### 1. Assurances of integrity — Professionalism, transparency, and ethics

- Legal and institutional arrangements:
  - The Statistics Act supports professional independence by stating and recognizing the statistical functions of the CSO.
  - Section 3 of the Statistics Act details the statistics that may be collected at such times, in such places or areas, and in respect of such periods as may be prescribed.
  - The CSO is not autonomous but advocates credibility of statistical results and understands the importance of noninterference.
  - The government statistician reports to the permanent secretary of the MFDP on administrative matters but to the parliament and the minister of the MFDP on professional matters.
  - Section 8 of the Statistics Act requires that official statistics be published.
  - The CPI and the wholesale price index (WPI) are simultaneously disseminated to all users; political approval is not needed to publish statistical information.

- Staffing and professional development:
  - Job descriptions are transparent, detailed, and specific in required qualifications.
  - Vacancies are filled through advertisements and interviews by a panel comprising authorities from the MFDP and the CSO.
  - The CSO provides formal and on-the-job training, including participation in seminars, courses, and workshops arranged by the SADC.
  - The CSO encourages staff to subscribe to the African Statistical Journal but does not encourage publishing analytical papers in journals due to potential conflicts of interest as government employees.
  - The CSO encourages submission of research papers to the publicly available MFDP newsletter.
  - The internal technical working group encourages research and analysis, including rationale for choice of methodologies.

- Data source and dissemination choices:
  - Choices of source data and statistical techniques for compiling and disseminating the CPI are determined by availability of basic statistics and administrative records according to criteria of statistical reliability, coverage, and consistency.
  - Decisions about timing, media, and other aspects of dissemination are based on statistical considerations.
  - No evidence of political or government interference exists in the choice of data sources and statistical processes used in compiling the CPI.
  - The CSO maintains a regularly updated mailing list used for transmitting statistics to users.

- Misuse and clarification:
  - The government statistician is responsible for responding to erroneous interpretation and misuse of the CPI; incidences of inappropriate interpretations and misuse have been clarified immediately.

- Transparency:
  - The Statistics Act, in English, is available to the public on the CSO’s website, on the IMF’s Dissemination Standards Bulletin Board (DSBB), and in publications of the laws of Botswana.
  - All statistical publications identify where to find more information about the CSO and its products (contact persons, postal addresses, telephone numbers, facsimile numbers, e-mail addresses).
  - Information on prerelease access to the CPI is documented on the DSBB but not on the CSO’s website; according to the DSBB, there is no internal government access to price statistics prior to their release.
  - All publications display the CSO logo; in joint publications the CSO is clearly identified as the data-producing agency.
  - Advance notice procedures: reference groups of major stakeholders are constituted when revisions or methodological changes occur; details are included as appendices to statistical reports and users are warned well in advance for new surveys.

- Ethical standards:
  - The Statistics Act provides guidelines for correct behavior and requires all persons employed in execution of duties under the Act to sign a declaration of secrecy on entering duty (applies to non-CSO staff and consultants).
  - Breaches of the oath of secrecy and use of insider information for personal gain are offenses punishable by payment of a fine, imprisonment, or both.

### 2. Methodological soundness — Concepts, scope, classification, and recording

- 2.1 Concepts and definitions
  - Concepts and definitions developed locally are broadly in line with international standards, guidelines, or good practices.
  - Household expenditure estimates from the Household Income and Expenditure Survey (HIES) are used for weights of market expenditure on goods and services.
  - The CPI is classified according to the Classification of Individual Consumption by Purpose (COICOP), which conforms to the System of National Accounts 1993 (1993 SNA) and the Consumer Price Index Manual, 2004 (CPI Manual).
  - This CPI was rebased in November 2006 (2006 =100).
  - However, concepts and definitions for the CPI deviate from the 1993 SNA with respect to imputation of rents for owner-occupied housing (see 2.2.1).

- 2.2 Scope
  - All resident households, regardless of income, are included in the CPI, which is stratified according to cities and towns, urban villages, and rural villages.
  - Due to lack of information on informal activities, no informal activity is included in the CPI weights that cover expenditures of all resident households.
  - Botswana’s CPI does not cover owner-occupied housing in either of two ways: as consumption of housing services, or as capital formation in (acquisitions less disposals of) housing units.
  - Recommendation: The CPI should cover owner-occupied housing.

- 2.3 Classification/sectorization
  - The CPI covers noninstitutionalized Botswana households consistent with the 1993 SNA household sector.
  - Item weights for the CPI are classified using COICOP consistent with international guidelines.

- 2.4 Basis for recording
  - 2.4.1 Market prices are used to value flows and stocks:
    - Prices reflect those a consumer would pay on the day of the survey, including value added, excise taxes, trade, and transportation margins.
    - Cash payments are the basis for the price survey; credit card payments are excluded.
    - Price-determining characteristics for specifications and transactions are considered to support pricing of constant quality.
  - 2.4.2 Recording is done on an accrual basis:
    - Prices are collected for the first two weeks of the month.
    - Discounts and sale prices are recorded in case of temporary reductions.
    - Prices for most items are collected once a month and are included in the CPI for that month.
    - Prices for two items—private rent for one-room accommodation and domestic servant’s wage—are collected only through quarterly surveys in Gaborone and Francistown; these prices are used for each of the three months following the survey month, which is the last month of each quarter.
    - According to the 2002 ROSC, there were plans to convert these into monthly surveys at the time of the next rebasing, but with the new rebasing, using the 2002/03 weights, these plans have not been realized.
    - Administratively set prices are used for services like public school fees, which include the cost of text books, uniforms, and other educational fees.
  - 2.4.3 Grossing/netting procedures:
    - Weights are not applied to purchases of existing goods such as used cars or other durable consumption goods for which there are secondary markets.

*Source: Price Statistics (Consumer Price Index) — CSO assessment material contained in section 0.2 through start of section 3 of the provided PDF.*

### 3.1       Source       data

### 3.1       Source       data

### 3.1.1 Sources, coverage, and source-data collection
- Source data are obtained from comprehensive data collection programs that take into account country-specific conditions.
- Sources for CPI prices:
  - A Business Register supplements a judgmental list of outlets compiled by the PSU.
  - Misclassifications tend to be problematic for the Business Register; nonresponse is not a major issue because of good relations between price collectors and outlets.
  - Purging closed businesses from the Register is inefficient and may cause duplication of verification efforts by PSU staff.
  - Ad hoc surveys are not conducted to identify new products or provide source data for weights and prices; new products are only introduced when results of a new HIES become available.
  - All enterprise sizes (large, medium, small) are represented in price collection.
- Geographic coverage and sampled number of outlets (2006 = 100):
  - Towns:
    - Gaborone 175
    - Lobatse 40
    - Jwaneng 36
    - Francistown 100
    - Selibe-Phikwe 74
  - Urban villages:
    - Maun 58
    - Ramotswa 15
    - Mochudi 20
    - Serowe 56
    - Tutume 37
    - Moshupa ..
    - Kanye 22
    - Molepolole 17
    - Palapye 51
    - Mahalapye 32
    - Tonota 32
    - Bobonong 41
    - Letlhakane 47
    - Tsabong 41
    - Kasane 41
    - Gantsi 26
  - Rural:
    - Mmadinare ..
    - Mmankgodi 5
    - Good Hope 6
    - Shoshong ..
    - Letlhakeng 8
    - Masunga 24
    - Rakops 18
    - Nata 19
    - Sefhophe 24
    - Pandamatenga 13
    - Tshesebe 11
    - Ratholo 12
    - Werda 10
    - Sehithwa 9
    - Kang 6
    - Mabutsane 5
    - Artesia 6
    - Metsimotlhabe 10
    - Manyana 4
    - Pitsane 5
    - Serule 13
    - Machaneng 11
    - Otse 7
    - Sekoma 4
    - Sikwane 1
    - Mmathubudukwane 1
    - Malolwane 4
    - Khakhea 13
  - Note: Urban villages are defined as those villages that have a population of more than 5,000 in 1991, and in addition fewer than 25 percent of the workforce being engaged in traditional agriculture: CSO Consumer Price Index Manual, 1998.
- Fieldwork arrangement:
  - Price collection in Mahalapye, Shoshong, and areas to the south is covered from the head office in Gaborone by PSU staff.
  - Francistown Regional Statistics Office covers areas to the north of Mahalapye.
  - Price collectors usually fly to Maun to collect price data.
- Volume of data:
  - Approximately 30,820 price quotations are collected from about 1,258 retail outlets for the CPI.
- Supplementary sources used:
  - (1) Botswana Housing Commission, (2) Botswana Telephone Corporation, (3) Mass Communications, (4) Water Affairs, (5) Import Price Index, and (6) Private Hospitals.
- Sources for CPI weights (HIES 2002/03):
  - Frame: 4,114 Enumeration Areas (EAs), stratified into (1) cities and towns, (2) urban villages, (3) rural areas.
  - Stratified two-stage probability sample design:
    - First stage: 288 EAs selected with probability proportional to size.
    - Second stage: 6,053 households selected.
    - Sample of 6,053 households translated into an estimated coverage of 25,069 persons.
  - Survey period: The survey was conducted from June 2002 to August 2003.
  - HIES estimates: 394,272 households in the country had 1,632,922 persons in 2002/03.
  - Exclusions: institutional dwellings such as army barracks, hospitals, and training colleges were excluded.
  - Adjustments: imports data used to adjust tobacco and alcohol expenditure.
  - Included: own-account production of market goods for own final consumption.
  - Excluded: value of consumption of owner-occupied housing and expenditure on services of illegal market products.
- Sampling design rationale:
  - Urban-to-rural sample ratio determined by optimum allocation to minimize variance of estimated average 2002/03 household monthly income — higher-than-proportional sample of urban households and lower-than-proportional sample of rural households.
- Pretesting and consultations:
  - HIES questionnaires subjected to field testing and observation studies; pretesting conducted around Gaborone in areas from all three strata.
  - Meetings with consumer groups and business community occur only when significant CPI methodological changes occur (e.g., rebasing).
  - Regular meetings within SADC forum to exchange CPI developments among member countries.
- Recommendations (from source):
  - Develop an accurate Business Register to avoid problems of out-of-business and misclassification.
  - Conduct ad hoc surveys.
  - Include owner-occupied housing in the CPI since 6 percent of the households in the urban areas live in self-built housing and 45.4 percent of households in cities and towns rent housing units.
  - The CPI should be reweighted every five years.

### 3.1.2 Approximation to definitions, scope, classifications, valuation, time of recording
- Price collection:
  - CPI group items collected from outlets over a two-week period.
  - Arithmetic average prices are used in the price relatives.
  - PSU collects prices from the first to the second week of the month.
  - Two quarterly surveys in Gaborone and Francistown derive average prices for private rent paid by tenants of one-room accommodation and the average domestic servant’s wage; PSU considers changes in these two cities to reasonably approximate changes in the rest of the country.
- Owner-occupants’ housing:
  - Weighting information for implicit rent of owner-occupants exists from HIES, but rental survey price information is not considered sufficient to produce a reliable estimate of average change in free-market rental prices for comparable units.
  - No alternative user-cost estimates available; implicit rent of owner-occupants is not included in the CPI.
- Conclusion: Source data are broadly consistent with CPI definitions, scope, and classification.

### 3.1.3 Timeliness
- PSU data are timely for CPI compilation.
- CPI release timing:
  - The CPI is released 15 days after the reference date, exceeding Special Data Dissemination Standard (SDDS) requirements of one month.

### 3.2 Assessment of source data
- Nonresponse and fieldwork for HIES 2002/03:
  - No substitution allowed for nonresponse.
  - 0.8 percent refusal and 1.1 percent noncontact.
- Adjustments and errors:
  - No analyses of sampling errors were undertaken for HIES.
  - Adjustments were made to HIES for underreporting of specific products such as alcohol and tobacco using imports data.
  - Sampling errors for price collection not available because outlet sampling is judgmental.
  - Nonresponse problems uncommon for sampled outlets due to interviewer-enterprise relationships.
- Recommendation: All administrative source data should be routinely assessed and validated.

### 3.3 Statistical techniques
- Compilation and processing:
  - A range of price quotes or coding error thresholds employed to minimize processing errors.
  - Unusual price values trigger outlet contact for verification.
  - Prices collected are passed to the PSU; datasets are combined, weighted, and aggregated into the national index.
- Treatment of missing and replaced products:
  - Temporarily missing and seasonal product prices are estimated by imputing the price using the change in the related class/group.
  - Permanently unavailable products are replaced with similar items; if possible, the replacement price is spliced onto the old product via an overlap month; otherwise the new product price is used without quality adjustment.
  - Products such as clothing and quality furniture are difficult to quality adjust due to constant change.
  - For the first time the CPI basket includes a computer, a DVD player, and a digital camera; PSU must monitor these for quality changes when substitutions occur.
  - New goods are introduced only when there is a new HIES (not as they gain market share).
- Index formulae and reference periods:
  - CPI derived by short-term price relatives.
  - Aggregates for the new index are based on the modified Laspeyres formula.
  - The 1993/94 weight-based index was linked to the 2002/03 weight-based index.
  - Price reference period: September 2006.
  - Weight reference period: 2002/03.
  - Index reference period: 2006.
- Aggregation:
  - Price ratios are aggregated at the elementary levels for the one-month price change of each of the twelve-item groups in each of the six towns, eleven urban villages, and five rural areas.
- Recommendation: Investigate and improve quality adjustment techniques for clothing, furniture, electronic products, and consumer durables.

### 3.3.2 Other statistical procedures (validation and editing)
- Validation steps:
  - Visual inspection of completed questionnaires for consistency (compare last month’s price with current month’s price).
  - Price collectors asked for explanation if price change exceeds a certain percent.
  - Checks for wrong-slot entries, very high/low price quotes relative to previous period, zero or missing prices, shop deletions, and conversion errors.
  - Validation sequence: edit questionnaires → validate price reports (validation report generated after entry) → validate average prices report → check indices → generate final Consumer Price Statistics report detailing sections, groups, and “all item” indices for towns, villages, rural, and national areas.

### 3.4 Validation of intermediate data and outputs
- Cross-validation:
  - CPI data are not regularly compared to other price index series such as the WPI because WPI is compiled and disseminated infrequently.
  - GDP deflator estimates are derived only from the CPI; CPI is therefore not validated against the GDP deflator in practice.
  - No specific price indices for imports and exports exist for validation.
- Recommendation: The CPI should be validated against other price indices such as the WPI and the GDP deflator.

### 3.5 Revisions and revision studies
- Revision policy and practice:
  - CPI is considered final when released; no routine revisions once index is released due to four validation checks conducted during compilation and aggregation.
  - CPI basket and weights are updated when there is a new HIES.
  - Studies and analyses of weight revisions are carried out when there is a new HIES and used internally.
- Historical revisions:
  - CPI was revised several times in recent years to reflect methodological changes: 2003 revisions twice for housing rentals (July) and telephone charges (October).
  - Other revisions have arisen from methodology changes, product substitution, and price changes (e.g., public school education).
  - Analyses and studies were conducted in each revision instance.

*Source: _cr07139 - 3.1       Source       data*

### 4.         Serviceability

### 4.         Serviceability

### 4.1 Periodicity and timeliness
- Botswana meets the periodicity and timeliness standards of both the General Data Dissemination System (GDDS) and the Special Data Dissemination Standard (SDDS).
- The CPI is published 15 days after the end of the reference month, within the requirements of the SDDS.
- The monthly estimates of the CPI are published on the 15th of the following month, therefore meeting—and indeed exceeding—the SDDS requirement of one month after the end of the reference period.

### 4.2 Consistency
- The CPI aggregation structure is consistent from the cell level to the item level, the item level to the group level, and the group level indices to higher levels of expenditure classes and the all-item level.
- Geographical aggregation as well as import and export aggregation are used and are consistent.
- Consistency in aggregation may not be achieved when the amount of information available on quantities and expenditures is not the same at different levels of aggregation (example: regional aggregation to national aggregation when there have been missing price observations).
- The rebased CPI (see 3.3.1) now uses the change in the related class/group to estimate the missing price rather than imputations based on the average price change from the base period to the present period; this change is intended to minimize inconsistencies in aggregation.
- Consistent time series are available going back for more than 30 years. Each time new weights are introduced, the historical CPI series can be reconstructed using the new weights.
- Linking factors are available on request for users who may want to construct long-time series.
- The CPI methodology was revised to adjust weights for public school fees after consultation with the Ministry of Education. The CSO revised the index series for the period January 2006 to March 2006 to accommodate the practice on payment of school fees in public schools.
- Since the CPI data are not verified with other datasets such as the WPI, national accounts, and import/export price data, the PSU is unable to determine if the CPI data are consistent with these other datasets.

### 4.3 Revision policy and practice
- Generally, the CPI series is final when first released and is not subject to revisions. The index is revised only when there are major errors in the compilation of the index.
- The CPI was revised when the school fees component in the CPI was not adequately weighted; by reallocating the expenditure share of school fees, the weights were distributed to correct the index. Major stakeholders were not aware of the CPI revision until much later.
- Whenever weights are revised, users are informed about the process via the Internet, press release, and conferences. Weight revisions are discussed with members of the reference group (private sector, other government agencies, academia). In the HIES publication, analyses and comparisons between the old and the new HIES are usually stated.
- Recommendation: Revision policies and procedures need to be established. Major stakeholders would welcome a regular and transparent schedule of CPI revisions.
- Since the CPI is not revised normally, there is no need to identify preliminary data.
- For weight revisions, no studies or methodological notes are produced. Given that the number of price quotes and outlets for the rebased CPI have been significantly increased compared to the 1996 = 100 CPI, notes should have explained the reasons for the increase.
- Recommendation: Whenever changes are made in the methodology, weights, etc., analyses and notes should be available to the public.

### 5. Accessibility

#### 5.1 Data accessibility
- The CSO publishes well-designed charts and tables to facilitate analysis. The CPI data are generally accessible, and the datasets are published with various levels of disaggregation.
- Each news release concerning the dissemination of the CPI includes an assessment or analysis of current period developments. Several hard copy and electronic publications disseminate the price indices with time-series data. No seasonal adjustments of the price indices are conducted.
- The CPI data are disseminated in ways that facilitate redissemination in the media through official press releases and the Internet. The data are simultaneously disseminated to all interested parties through a monthly press release.
- Data are also simultaneously disseminated on the CSO’s website, http://www.cso.gov.bw/.
- More comprehensive and/or detailed statistics are also available to the public. Requests for these types of data are usually completed in one day and longer if requests are labor-intensive.
- Current price statistics and time-series data going back to 2003 are available on the CSO’s website.
- An advance release calendar is posted on the CSO’s website, but no release dates for the upcoming year are indicated; instead, the months in which data are compiled by the CSO are listed.
- Recommendation: The CSO should indicate the dates of the data release in an advance release calendar.
- The CPI is made available to all users at the same time.
- Detailed customized tabulation (detailed breakdowns) of price indices data is available upon request, in addition to the tables routinely disseminated. For specific purposes, customized tabulation of data that satisfy the CSO’s disclosure requirements is also available free of charge.
- Data users are aware of the availability of additional statistics but not of the procedures for obtaining them.
- Recommendation: The CSO should provide explicit procedures or instructions to data users on how to obtain data.

#### 5.2 Metadata accessibility
- The CSO’s website provides a full description of the IMF’s DSBB website, but not a link, that mentions several of Botswana’s data categories metadata including the CPI.
- Documentation on concepts, scope, classification, data sources, and methods of the CPI is available on the DSBB. These metadata were last updated in May 2006.
- The Technical Guide on the CPI was first published in 1996. A new Technical Guide is being drafted. There are no CPI methodological notes on the CSO’s website.
- Recommendation: Provide up-to-date and pertinent metadata to the public, and either link the Technical Guide to the CSO’s website or provide methodological notes on the site.
- There are no brochures, pamphlets, or newsletters about the CPI on how to locate the data available, besides the news releases posted on the CSO’s website. Background papers, working documents, etc., are not available.
- On November 18, 2006, an “African Statistics Day, National Strategies for the Development of Statistics” is being planned. For this program, several brochures, pamphlets, and posters are printed.
- Recommendation: The Technical Guide should be posted on the CSO’s website.

#### 5.3 Assistance to users
- All publications give the name, telephone, facsimile, and e-mail of the CPI staff who is available to provide assistance to users.
- A catalog of publications together with their prices is available on the CSO’s website. The CSO’s quarterly Statistical Bulletin also contains a list of the CSO’s publications.

*Source: _cr07139 - 4.         Serviceability*

### 0.3       Relevance

### 0.3       Relevance

### 0.3 Relevance — user engagement and monitoring
- The relevance and practical utility of existing statistics in meeting users’ needs are monitored.
- The CSO established annual meetings of users to gain insight into their views on statistics; these meetings were not helpful because users were not forthcoming.
- The CSO set up a reference group comprising senior government and private users for each subject area and solicits their views whenever a significant change is being considered.
- CSO staff participate actively in international meetings and seminars, particularly those organized by The Southern African Development Community (SADC) Statistics Committee.

### 0.4 Other quality management — processes and monitoring
- CSO management is committed to data quality and cascades this concern through the ranks; a vision and mission statement are prominently displayed.
- No formal training is offered for staff, but supervisors actively promote quality issues.
- An active program exists to improve efficiency in work processes; these reviews pay due consideration to quality.
- Managers regularly monitor work processes; supervisors check the work of their team.
- Computer systems have built-in checks on all aspects of data capture and processing.
- A technical working group reviews all new questionnaires but does not review other work processes.
- Recommendation: Extend the activities of the technical working group to cover work processes.
- Consideration is always given to the trade-off between accuracy and timeliness in planning the statistical program.

### 1. Assurances of integrity — Professionalism
- The Statistics Act supports professional independence by clearly stating and recognizing the statistical functions of the CSO. Section 3 details the statistics that may be collected at such times, in such places or areas, and in respect of such periods as may be prescribed.
- The CSO is not autonomous but advocates credibility and noninterference. The government statistician reports to the permanent secretary of the MFDP on administrative matters and to the parliament and the minister of the MFDP on professional matters.
- Job descriptions are transparent and specific about qualifications; vacancies are filled through advertisements and panel interviews comprising authorities from the MFDP and the CSO.
- The CSO provides formal and on-the-job training in methodology and compilation methods, including participation in SADC-arranged seminars, courses, and workshops.
- Staff are encouraged to subscribe to the African Statistical Journal; they are not encouraged to research and write analytical papers for journals due to potential conflicts of interest as government employees. Staff are encouraged to submit research papers to the publicly available MFDP newsletter.
- The internal technical working group encourages research and analysis, including rationale for choice of methodologies.

### 1.1 Professional independence and dissemination
- Choices of source data and statistical techniques for compiling and disseminating the WPI are determined by availability of basic statistics and administrative records according to criteria of statistical reliability, coverage, and consistency.
- Decisions about timing, media, and other aspects of dissemination are based on statistical considerations; no evidence of political or government interference was found.
- Section 8 of the Statistics Act requires that official statistics be published.
- The CPI and the WPI are simultaneously disseminated to all users; political approval is not needed to publish statistical information.
- The CSO maintains and regularly updates a mailing list used for transmitting statistics to users.
- The government statistician is responsible for responding to erroneous interpretation and misuse of the WPI; incidences have been clarified immediately.

### 1.2 Transparency
- The Statistics Act, in English, is available to the public on the CSO’s website, on the IMF’s Dissemination Standards Bulletin Board (DSBB), and in publications of the laws of Botswana.
- All statistical publications identify contact persons, postal addresses, telephone numbers, facsimile numbers, e-mail addresses, and other relevant information.
- There is no governmental access to the WPI prior to release.
- The CSO estimates and releases all price statistics; all publications display the CSO logo and inform the public that attribution is required. In joint publications, the CSO is clearly identified as the data-producing agency.
- Advance notice is given of major changes in methodology, source data, and statistical techniques via reference groups; details of changes are included as appendices to statistical reports. For new surveys, users are warned well in advance.

### 1.3 Ethical standards
- The Statistics Act provides clear guidelines for behavior and conflict-of-interest situations.
- All persons employed in execution of duties under the Statistics Act are required to sign a declaration of secrecy on entering duty; this applies to non-CSO staff including short- and long-term consultants.
- Breaches of the oath of secrecy and use of insider information for personal gain are offenses punishable by payment of a fine, imprisonment, or both.

### 2. Methodological soundness — Concepts and definitions
- The WPI for the domestic economy of Botswana measures development in wholesale prices for six groups of products, including food, alcohol and tobacco, building material and consumables, health and personal care, and other goods.
- The index is an output index at the first stage of marketing (not an output price index at the first stage of production). Exports are not included; imports are included. Prices are collected only from wholesalers and not from producers.
- The price concept is market price or purchaser’s price, including value-added tax (VAT) and excluding product subsidies. Therefore, the WPI does not follow the System of National Accounts 1993 (1993 SNA) concept of output valuation.
- Current weight is derived from the 1993/04 Household Income and Expenditure Survey (HIES), the same survey used to weight the 1996 =100 CPI; this WPI measures consumer expenditure on wholesale products and the weighting structure is identified as incorrect for a wholesale price measure.
- If the WPI’s purpose is to measure changes in wholesale product prices, it should be weighted according to total value of receipts obtained by wholesalers (difference between wholesale price including transportation, freight and insurance, and the producer cost).
- The WPI could be considered an intermediate consumption index and a partial supply price index (SPI) since imports are included, but it is not a total SPI or an input price index.
- For a WPI intended as an output index, weights should be based on value of production or total sales; Botswana’s concepts and definitions are not consistent with a producer price index (PPI).
- Botswana is conducting an enterprise survey; results could be used to construct an Intermediate Consumption Price Index (ICPI) or SPI components per IMF’s Producer Price Index Manual 2004 (PPI Manual).
- The SPI can be decomposed into product-level components and used to produce ICPIs useful for compiling GDP volume measures from the production approach and for policy analysis.

- Recommendation: Carefully develop concepts and definitions of Botswana’s WPI to meet user needs. Determine whether the WPI is (1) a total SPI, (2) industry ICPI, (3) industrial output price index, or (4) WPI. Since an enterprise survey is under way, the PSU should consider compiling an SPI index.

### 2.2 Scope
- The WPI measures wholesale price development for six product groups but excludes mining, some manufacturing, quarrying, and construction industries; products covered are not representative of Botswana’s industrial production.
- A meaningful price index requires establishments selected from a representative sample; the current WPI cannot be separated into output, import, and export price indices due to lack of representativeness.
- Recommendation: Develop a comprehensive Business Register to draw a representative sample. Include industries such as mining (gold and diamond industries), cattle production, etc., and survey these industries for total value of production to use as weights so that a meaningful PPI can be constructed.

### 2.3 Classification/sectorization
- The classification system used for the WPI is not consistent with internationally accepted standards; Botswana’s WPI is classified according to the Classification of Individual Consumption by Purpose (COICOP).
- If the WPI were an intermediate consumption index, COICOP would be consistent; however, for an output price index classification must be by economic activity or product.
- Recommendation: Classify the WPI using internationally accepted standards such as the International Standard Industrial Classification of All Economic Activities (ISIC) and/or the Central Product Classification (CPC).

### 2.4 Basis for recording
- Market prices used: prices reflect those a consumer would pay on the day of the survey, including wholesale prices with taxes, transportation, freight, and margins.
- Survey forms do not indicate price-determining characteristics for specifications and transactions to support constant-quality pricing.
- Recommendation: Reconsider definition of the WPI before deciding the basis for recording. If the WPI is an output index, basic prices should be collected. Redesign WPI survey forms to incorporate product specification.
- Recording is done on an accrual basis: prices are collected for the first two weeks of the month, usually on a quarterly basis; price collection is organized quarterly.
- Grossing/netting procedures are not conducted; transactions between establishments within the same enterprise and between units of the same enterprise are not collected, so no intraindustry or interindustry transfers are recorded.

### 3. Accuracy and reliability — Source data
- Sources for WPI prices: A Business Register is used to supplement a judgemental list of outlets compiled by the PSU.
- Misclassifications are problematic for the Business Register; nonresponse is not a major issue due to good relations between price collectors and outlets.
- The method for purging closed businesses from the registry is inefficient and may cause duplication of verification efforts by PSU staff.
- Ad hoc surveys are not conducted to identify new economic activities or products to provide source data for weights and prices.
- All types of wholesalers are represented in price collection—large, medium, and small.
- Geographic coverage and Number of Wholesale Outlets for the 1997 = 100 Price Index — Towns:
  - Gaborone 27
  - Lobatse 10
  - Jwaneng 4
  - Francistown 11
  - Selibe-Phikwe 10
  - Urban villages / Maun 10
  - Mochudi 2
  - Serowe 5
  - Kanye 6
  - Molepolole 5
  - Palapye 5
  - Mahalapye 7
- Note: Urban villages are defined as those villages that have a population of more than 5,000 in 1991, and in addition fewer than 25 percent of the workforce being engaged in traditional agriculture: CSO Consumer Price Index Manual, 1998.
- Wholesale outlets sampled are by purpose; sampling is done from the Business Register.
- Fieldwork: price collection in Mahalapye, Shoshong, and areas to the south is covered from the head office in Gaborone by PSU staff; Francistown Regional Statistics Office covers areas to the north of Mahalapye. Price collectors usually fly to Maun.
- Approximately 8,100 price quotations are collected from about 570 wholesale outlets for the WPI.
- Sources for WPI weights: Weights used in the 1997 WPI series were derived from the 1993/04 HIES results based on a sample of 3,608 households: 1,719 in towns, 981 in urban villages, and 908 in rural areas.
- The HIES questionnaires were field tested and pretesting was conducted in areas around Gaborone from the three strata.
- Regular meetings in the SADC forum exchange views and development about CPIs but not WPIs or PPIs between member countries.
- Recommendation: Develop an accurate Business Register to avoid problems of out-of-business entries and misclassification. Conduct ad hoc surveys. Include own-account production of market goods for own final consumption in the WPI.
- Source data collection and weighting issues:
  - The WPI group items are collected over a two-week period; arithmetic average prices are used in price relatives. The PSU collects prices from the first to the second week of the month.
  - Source data are not consistent with WPI definitions, scope, and classification.
  - Recommendation: Source data should be collected from outlets or enterprises instead of households for WPI weighting.
- Timeliness:
  - The PSU data are not timely for compiling the WPI. The WPI is released quarterly with a quarterly referenced period, but not always. The last WPI was disseminated in May 2006 with August 2005 data.
  - The weight for the WPI is outdated; the last HIES survey used for the current weight dates to 1993/04.
  - A survey of business enterprises is under way, but results are not expected until 2007.
  - Recommendation: The compilation and dissemination of the WPI should not depend on staff resources available after compilation of the CPI. An equal amount of staff resources should be available to work on both indices.

*Source: _cr07139 - 0.3 Relevance*

### 3.2 Assessment of source data

### 3.2 Assessment of source data

### 3.2.1 Source data: findings
- 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.
- For the 1993/04 HIES, no analysis was done of the sampling errors.
- Adjustments were made to the HIES for underreporting of specific products such as alcohol and tobacco using imports data.
- Sampling errors for price collection are not available since the sampling of outlets is conducted by judgmental selection.
- Problems of nonresponse are not common for the outlets sampled, owing to the established relationships between the interviewers and the enterprises.

### 3.2.1 Recommendation
- All administrative source data should be routinely assessed and validated.

### 3.3 Statistical techniques

### 3.3.1 Data compilation and price handling: findings
- A range of price quotes or coding error threshold is employed to minimize processing errors.
- If any unusual price values appear, the outlet is contacted for price verification; unusual prices are identified in the datasets and are not removed or modified.
- Prices are first collected and then passed on to the PSU, where the price indices are tabulated.
- All datasets are combined, weighted, and aggregated into the national index.
- If no price has been collected in any of the wholesale outlets in an area, then the previous month’s average price is carried forward for three successive months. If on the fourth and subsequent month a price quote is still not available, then an average price is imputed on the basis of the average price for that month.
- Few quality adjustment imputations are conducted.
- The index is not seasonally adjusted.
- The WPI is derived by taking the average of the long-term price relative to the relevant price quotation.
- Aggregates for the index are obtained using the Laspeyres formula.
- The weight and price reference period for the index is the same—1997. The prices for 1993/04 weights were updated.
- For the WPI, the price ratios are aggregated at the elementary levels for one month’s price change of each of the six-item groups in each of the six towns, eleven urban villages, and five rural areas.

### 3.3.1 Recommendation
- Since clothing and furniture are constantly substituted in the index, quality adjustment techniques for these products should be investigated.
- Overall, quality adjustment techniques need improvements.

### 3.3.2 Other statistical procedures: findings
- Once the PSU receives completed questionnaires, it visually inspects them for consistency checks; the last month’s price is compared with the current month’s price.
- Price collectors are asked for an explanation if the price change is over a certain percent.
- Checks are conducted for mistakes such as price quotes written on wrong slots, very high or very low price quotes compared to the previous period price, zero or missing prices, shop deletions, and conversion of prices to the required quantities.
- Validations are conducted in sequence: editing the questionnaire; validating the price reports (after all prices are entered into the computer, a validation report is generated); validating the average prices report; checking the indices; and generating the final Wholesale Price Statistics report, which details sections, groups, and “all-item” indices for each of the towns, villages, rural and national areas.

### 3.4 Assessment and validation of intermediate data and statistical outputs

### 3.4.1 Validation of intermediate results: findings
- The WPI data are not regularly compared to other price index series such as the CPI since the WPI is compiled and disseminated infrequently.
- There are no specific price indices for imports and exports.

### 3.4.1 Recommendation
- The WPI should be validated against other price indices.

### 3.4.3 Investigation of discrepancies: findings
- The structure of aggregation is straightforward and breakdowns of the WPI are consistent.
- The current practice provides logical estimates at the publication level.

### 3.5 Revision studies

### 3.5.1 Findings
- The WPI is considered final when released.
- The WPI basket and weights are updated when there is a new HIES.
- No revisions are conducted once the index is released, since four validation checks are conducted during compilation and aggregation.
- Studies and analyses of the weight revisions are carried out when there is a new HIES and are used internally to inform statistical processes.

### 4 Serviceability

### 4.1 Periodicity and timeliness

#### 4.1.1 Findings
- Botswana does not meet the periodicity and timeliness recommendations for the General Data Dissemination System (GDDS).

#### 4.1.1 Recommendation
- Improve the periodicity of the WPI to one month to meet the GDDS recommendations.

#### 4.1.2 Findings
- The WPI usually is published three months after the end of the reference quarter, which is not within the monthly recommendations of the GDDS.

#### 4.1.2 Recommendation
- Improve the timeliness of the WPI to one or two months to meet the GDDS recommendations.

### 4.2 Consistency

#### 4.2.1 Findings
- The WPI aggregation structure is consistent from the cell level to the item level, the item level to the group level, and the group level indices to higher levels of expenditure classes and the all-item level.
- Geographical aggregation, as well as import aggregation, is used and is consistent.

#### 4.2.2 Findings
- Consistent time series are available for the WPI from 2001 to 2005.
- Prior to 2006, a PPI was compiled and disseminated. This PPI is available from September 1997.
- Since 2001, the compilation of the PPI was halted.
- For methodological reasons, these two indices cannot be linked.

#### 4.2.2 Recommendation
- The two series, from the PPI to the WPI, or from the WPI to the PPI, should be reconstructed to determine a historical series.

#### 4.2.3 Findings
- Since the WPI data are not verified with other data sets such as the CPI, national accounts, and import/export price data, the PSU is not able to determine if the WPI data are consistent with these other datasets.

### 4.3 Revision policy and practice

#### 4.3.1 Findings
- The WPI series are final when first released and are not subject to revisions.
- Whenever weights are revised, users are informed about the process via the Internet, press release, and conferences.
- Weight revisions are discussed with members of the reference group, consisting of representatives from the private sector, other government agencies, and academia.
- In the HIES publication, analyses and comparisons between the old and the new HIES are usually stated.

#### 4.3.1 Recommendation
- Assign that whenever changes are made in methodology, weights, etc., analyses and notes should be made available to the public.

#### 4.3.2 Findings
- Since the WPI is not revised, there is no need to identify preliminary data.

#### 4.3.3 Findings
- Since the WPI data are final when first published, there are no revisions.
- For the weight revisions, no studies or methodological notes are produced.

#### 4.3.3 Recommendation
- Whenever changes are made in the methodology, weights, etc., analyses and notes should be available to the public.

### 5 Accessibility

### 5.1 Data accessibility

#### 5.1.1 Findings
- The CSO publishes charts and tables to facilitate analysis.
- The WPI data are generally accessible, and the datasets are published with various levels of disaggregation.
- Each news release concerning the dissemination of the WPI includes an assessment or analysis of current period developments.
- Several hard copy and electronic publications disseminate the price indices with time-series data.

#### 5.1.2 Findings
- The WPI data are disseminated through official press releases and the Internet.
- The data are simultaneously disseminated to all interested parties through a monthly press release.
- Data are also simultaneously disseminated on the CSO’s website, http://www.cso.gov.bw/.
- More comprehensive and/or detailed statistics are also available to the public. Requests for these types of data are usually completed in one day and longer if requests are labor-intensive.

#### 5.1.3 Findings
- An advance release calendar is posted on the CSO’s website, but no release dates for the upcoming year are indicated.

#### 5.1.3 Recommendation
- The CSO should indicate the dates of the data release in an advance release calendar.

#### 5.1.4 Findings
- The WPI is made available to all users at the same time.

#### 5.1.5 Findings
- Detailed customized tabulation of price indices data is available upon request, in addition to the tables routinely disseminated.
- Customized tabulation of data that satisfy the CSO’s disclosure requirements is also available free of charge.
- Data users are aware of the availability of additional statistics but not of the procedures for obtaining them.

#### 5.1.5 Recommendation
- The CSO should provide explicit procedures or instructions to data users on how to obtain data.

### 5.2 Metadata accessibility

#### 5.2.1 Findings
- Documentation on concepts, scope, classification, data sources, and methods of the WPI is not available on the CSO’s website or the IMF’s DSBB.
- There is no technical guide on the WPI.

#### 5.2.1 Recommendation
- Provide WPI metadata for the DSBB and provide up-to-date and pertinent metadata to the public, and either link the technical guide to the CSO’s website or provide methodological notes on the site.

#### 5.2.2 Findings
- There are no brochures, pamphlets, or newsletters about the CPI on how to locate the data available, besides the news releases posted on the CSO’s website.
- Background papers, working documents, etc., are not available.
- On November 18, 2006, an “African Statistics Day, National Strategies for the Development of Statistics” is been planned; this program is sponsored by the Economic Commission for Africa and the African Center for Statistics. The theme is “Statistics Planning at the Sources of Dynamic Development.” For this program, several brochures, pamphlets, and posters are printed.

### 5.3 Assistance to users

#### 5.3.1 Findings
- All publications give the name, telephone, facsimile, and e-mail of the CPI staff who is available to provide assistance to users.

#### 5.3.2 Findings
- A catalog of publications together with their prices is available on the CSO’s website.
- The CSO’s quarterly Statistical Bulletin also contains a list of the CSO’s publications.

*Source: _cr07139 - 3.2 Assessment of source data*

### Section 9 of the Statistics Act also establishes that information should be presented in such

### _cr07139 - Section 9 of the Statistics Act also establishes that information should be presented in such

### Legal framework and confidentiality
- Section 9 of the Statistics Act: information should be presented in such manner that no individual particulars are disclosed.
- Section 12 of the Statistics Act: establishes penalties for the disclosure or use of confidential information; staff who disclose confidential data are subject to fines and/or imprisonment.
- Section 12 (Statistics Act) and Section 16 (Statistics Act): Section 16 requires any person employed in the execution of the Statistics Act to make and subscribe to an oath of affirmation.
- Public Service Charter and the contract for public servants reinforce standards of conduct; staff are not reminded periodically of the standards.

### Data access, security, and systems
- GABS access: restricted to selected users and is password-protected.
- Officers’ computers: password-protected; offices are locked at the end of the day.
- Each staff member has a computer assigned for personal use; additional computers available for other uses (e.g., maintaining databases).
- Technical support and backup systems are in place to protect data.
- GABS introduction: September 2004.
- GABS installation status: installed in 19 of 21 ministries (installation in the other two will be completed by December 2006).
- Missions abroad outside GABS: 19 missions abroad are currently outside the GABS.
- Computerization program for local authorities: significantly behind schedule and faces serious problems; MLG has requested assistance from the MFDP.

### Statistical reporting mandate and legislation
- Finance and Audit Act empowers the MFDP minister to collect all relevant information to account for the finances of Botswana to the national assembly and establishes the obligation to comply with requests for information by proper officials.
- Financial Instructions and Procedures (pursuant to Section 44 of the Finance and Audit Act) provide detailed guidance on use and control of public funds.

### Resources: staff, facilities, computing, financing
- Staffing:
  - CFU and PDSU staffing: only two and three officers, respectively, are assigned to perform these and other tasks.
  - Training on international best practice methodologies: limited.
  - High levels of staff turnover have accentuated difficulties of compiling GFS.
  - Salary levels: competitive with other areas of public administration but lower than in financial institutions and parastatals.
- Computing resources:
  - Sufficient resources allocated for hardware and software.
  - Introduction of GABS represents a major step forward in availability of comprehensive and timely information for fiscal statistics; development of output tables is still ongoing and the system has not yet reached its full potential.
- MFDP office buildings, furniture, and equipment: provide comfortable working facilities; adequate to perform required tasks.
- Funding:
  - Funding for identified needs of units responsible for compiling and disseminating GFS is included in the overall budget of the MFDP and is considered secure.
  - Additional funding would be needed to provide the necessary increase in human resources.

### Recommendations on resources (numbered as in source)
1. Allocate more human resources to the compilation and dissemination of GFS, and emphasize training in international methodologies. Adopt measures to reduce staff turnover.
2. Give priority to developing output tables from the GABS.
3. Evaluate the status of the computerization program for local authorities and decide promptly on how best to proceed.

### Measures to ensure efficient use of resources
- Annual reviews of staff performance are conducted.
- Strategic plan for the MFDP incorporates a performance management system using performance indicators.
- Resources used to compile fiscal statistics and GFS are not measured periodically.
- Detailed and automated budgeting procedures are used to allocate resources.

### Relevance and user focus
- Current fiscal statistics: mainly geared toward compliance with existing legislation and regulations.
- Needs met: MFDP senior officials and other government data-producing agencies reasonably served.
- Needs not adequately addressed: general public; no systematic actions to identify future data requirements by the general public.
- Recommendation: Give increased attention to meeting the needs of data users outside the government.

### Quality management and processes
- Management focus:
  - Introduction of a performance management system and the GABS reflects management recognition of quality importance.
  - Management strongly supports higher education.
  - Need for improved recognition of trade-offs among data quality dimensions, particularly between accuracy and timeliness.
  - Good-quality fiscal statistics are compiled, but they are available with long lags.
- Quality monitoring:
  - Use of GABS to generate reports directly from accounting data has significantly improved reliability.
  - Compliance with existing financial instructions and procedures is monitored.
  - All budgetary central government units follow uniform accounting rules and data-entry guidelines.
  - Annual fiscal statistics are audited before publication.
  - Processes to monitor and improve the quality of GFS are not fully in place.
- Quality in planning:
  - MFDP should incorporate international best practice, such as the Government Finance Statistics Manual 2001 (GFSM 2001), into the statistical program.
  - Participation in the General Data Dissemination System (GDDS) is a significant step, but a more proactive approach is required.

### Professionalism and impartiality (Assurances of integrity)
- Legal support:
  - Finance and Audit Act and Statistics Act support compilation of fiscal statistics on an impartial basis; no explicit section supports professional independence.
  - Culture of professionalism adhered to; no outside interference with statistical results permitted.
  - Public Service Charter supports professional independence.
- Recruitment and promotion:
  - Recruitment conducted through competitive process; on-the-job training provided to new hires.
  - Promotion based partly on performance and partly on seniority.
  - Participation in international seminars and courses is supported.
  - Limited workplace processes to promote culture of professionalism; no research nor analysis is encouraged.
- Decisions on sources, techniques, and dissemination:
  - Choices are based exclusively on data and processing requirements; no evidence of political influence in data source selection.
  - High-level political support would be required to meet SDDS requirements or adopt GFSM 2001.
  - Decisions to disseminate data are based mainly on legal obligation (Finance and Audit Act) and, to a lesser degree, on statistical considerations.
- Right to comment on misuse:
  - MFDP staff provide expert advice on technical aspects and monitor media coverage; Public Relations Office issues clarifications when misinterpretation or misuse occurs.
  - MFDP minister addresses questions during the annual budget speech.

### Transparency
- Legislation: publicly available.
- Statistical publications: do not identify where users may locate more information about the data-producing agency and its products.
- Subannual GFS: availability not advertised and use is mostly internal.
- Internal pre-release access:
  - Fiscal statistics are available to senior officers and other units of the corresponding ministry, BoB, and CSO prior to general dissemination.
  - This internal access prior to dissemination is not made public.
  - Recommendation: MFDP should identify internal government access to statistics prior to public release in corresponding publications and on the GDDS metadata posted on the IMF’s DSBB.
- Products: the identity of the agency responsible for compiling data released to the public is clearly identified; agency requests attribution when its statistics are used or reproduced.
- Advance notice: major changes in methodology and source data are usually contained in legislation or are announced when the changes are introduced.

### Methodological soundness: concepts and definitions
- Current methodology:
  - Concepts and definitions generally follow A Manual on Government Finance Statistics 1986 (GFSM 1986) for budgetary central government but not for local governments.
  - Local government fiscal statistics can be reclassified to conform with GFSM 1986.
- Migration to GFSM 2001:
  - No decision has been taken by the authorities on adopting a “migration path” from the GFSM 1986 methodology to GFSM 2001.
  - Recommendation: When GFSM 2001 methodology is adopted, MFDP should ensure that the codes for the new methodology are embedded in the GABS to generate GFS directly and automatically from accounting data.

### Scope: institutional coverage and publications
- Institutional structure of general government:
  - A. Central Government (1+2+3)
    1. Budgetary central government: Parliament, state president, ministries (13), Administration of Justice, Attorney General’s Chambers, auditor general, Independent Electoral Commission, Office of the Ombudsman, and Industrial Court.
    2. Extrabudgetary funds: a number of entities currently considered to be parastatal (e.g., University of Botswana, Institute of Development Management).
    3. Social Security Funds: Not applicable.
  - B. Local Governments:
    (1) District Councils (9)
    (2) Land Boards (12)
    (3) City Councils (2)
    (4) Town Councils (4)
  - C. General Government Sector: (A+B)
- Coverage and gaps:
  - Botswana compiles and disseminates subannual fiscal statistics only for budgetary central government; annual statistics are compiled and disseminated for budgetary central government and local governments.
  - No subannual or annual fiscal statistics are compiled for extrabudgetary units, consolidated central government, or consolidated general government.
  - Fiscal statistics do not cover the whole central government and general government institutional sector.
- MFDP publications and timing:
  - MFDP publishes two annual reports issued in February each year (Financial Statements, Tables, and Estimates of the Consolidated and Development Fund Revenues; Estimates of Expenditure from the Consolidated and Development Funds) together with the budget speech (financial year begins April 1).
  - The first report: consolidated cash-flow presentation with breakdown for revenue, expenditure, and financing; functional classification of expenditure and net lending table for budgetary central government; table on medium- and long-term external debt by type of holder for central government. The three tables present a six-year series of final data, one year of revised estimates, and one year of budget estimates.
  - The second report: detailed estimates of expenditure by spending unit for the coming financial year, partial information for the current year, and final information for the previous year.
  - Annual Statement of Accounts (prepared by the accountant general): released 12 months after the end of the reference period; consists of 22 statements specified in the Second Schedule of the Finance and Audit Act. Statement 11: details on external debt by loan and lender and summary table of outstanding public debt by currency. Statement 17: details on loans guaranteed by government to parastatals.
  - Cash-Flow Monthly Series (compiled by CFU): single summary table with detailed economic classification of revenue, expenditure, and financing for budgetary central government; presents monthly data for the current financial year; not published but distributed to BoB and CSO.
  - Debt reports: CFU generates reports from CS-DRMS using PDSU information; generated irregularly and not published.
  - Annual MFDP reports are only available in hard copy; limited and generally outdated fiscal statistics on ministry’s website.
  - MFDP reports and Cash-Flow Monthly Series are provided to IMF’s African Department (AFR) at Article IV consultation.
- BoB publications:
  - BoB Annual Report: includes a statistics section with annual public finance tables (budget summary, detailed revenue table, functional classification of expenditure, medium- and long-term external debt by type of holder). Tables present a 10-year series of final data, one year of revised estimates, and one year of budget estimates. May 2006 report contains final data through 2004/05.
  - Botswana Financial Statistics (BFS) monthly bulletin: includes same public finance tables; presents an eight-year series of final annual data and a three-year series of cumulative quarterly final data, without monthly breakdown.
  - BFS bulletin lags: July 2006 bulletin contains final data through December 2005 for some tables; August 2006 bulletin contains final data through June 2006 (although not for March 2006) for budget summary and detailed revenue tables; other tables lag longer. No data for March 2006 because accounts for end of financial year were not released by the accountant general until early November.
  - Monthly bulletins available on BoB’s website with a one-month lag and in hard copy with a two-month lag.
- MLG publications:
  - MLG publishes three annual reports: City and Town Councils Recurrent Budget, Landboards Recurrent Budget, and District Councils Recurrent Budget.
  - Reports include two summary nonconsolidated tables for income and expenditure and detailed financial statements for each local government. In principle, these present data for three years—one final and two estimates.
  - Latest available complete set of final data for local governments: 2002–03. Some accounts for 2003–04 still being audited; not all local governments have produced accounts for 2004–05. Final local government data available with at least a three-year lag.
  - Local governments’ revenues and expenses: estimated to account for less than 10 percent of total revenues and total expenses of general government.
- Transaction coverage:
  - Data generally available to GFSM 1986 standard for: summary table of major components; government revenue and grants; classification of the functions of government; economic classification of government expenditure and lending minus repayments; financing by type of debt instrument; outstanding debt by type of debt holder.
  - Data available but not published for financing by type of debt holder and outstanding debt by type of debt instrument.
  - Data provided on general government gross debt classified by residency of the counterparty to the liabilities.
- Estimates and timing:
  - Revised estimates on annual GFS for budgetary central government: produced once a year in February and published with the budget speech.
  - Revised estimates replace previous year’s budget estimates and are replaced with final data when available.
  - Revised estimates based on eight to nine months of final data and three months of estimates for revenue and the original budget plus supplementary appropriations for expenditure; financing data remain unchanged except for cash balances as balancing item.
  - Except for revised estimates for the most recent year, all data are complete and final when published—practice results in long lags for dissemination of budgetary central government and local governments data.

*Source: IMF staff assessment text from the provided content unit.*

### 1. To enhance the consistency of macroeconomic datasets, the technical working group

### _cr07139 - 1. To enhance the consistency of macroeconomic datasets, the technical working group

### Key recommended actions (opening directives)
- The technical working group of the MFDP, BoB, and CSO, proposed in Section 0.1.2, should prepare a comprehensive list of institutions that comprise the central government and its subsectors.
- The MFDP should compile and disseminate, at least on an annual basis, GFS for extrabudgetary institutions, consolidated central government, and consolidated general government.
- The MFDP should use preliminary data, available prior to the release of the accounts for the last month of the financial year, to publish the monthly summary cash flow for that month with no more than a two- to three-month lag.

### Classification / sectorization
- Current practice:
  - Subannual and annual fiscal statistics for budgetary central government broadly follow GFSM 1986 concepts and definitions but have significant differences.
  - Revenue and expenditure by function are classified in general conformity to international guidelines.
  - Economic classification of expenditure, financing, and debt differ from GFSM 1986 in notable ways.
- Specific differences:
  - Economic classification of expenditure uses a single item “other charges” to cover other purchases of goods and services, subsidies, and current transfers.
  - Presentation provides less detail for all items than recommended by GFSM 1986.
  - Financing classification resembles classification by type of debt instrument, but:
    - Disbursements of domestic and external loans are presented separately.
    - Amortization of both types of loans is presented jointly, without breakdown between the two.
    - No classification of financing by type of debt holder is provided.
  - Debt classification resembles classification by type of debt holder but excludes domestic financing; no classification of debt by type of debt instrument is provided.
  - Local government annual fiscal statistics follow national concepts and definitions and do not follow GFSM 1986.
- Scope gaps:
  - Fiscal statistics are compiled separately for budgetary central government and local governments.
  - No fiscal statistics are compiled for extrabudgetary institutions, consolidated central government, and consolidated general government.
- Recommendation:
  - Follow the guidelines of the GFSM 1986 in classifying subannual and annual fiscal statistics on the operations of budgetary central government and local governments.

### Basis for recording
- Valuation and currency conversion:
  - Market prices are used to value flows and stocks.
  - Flows are valued on the basis of the amount of payments in cash.
  - Gross debt is valued at face value.
  - Flows denominated in foreign currency are converted to national currency using the midpoint between the buying and selling market rates on the date the transaction took place.
  - Outstanding external debt is converted to national currency using the midpoint between the buying and selling market rates at the end of the period.
- Recording basis:
  - Transactions are recorded on a cash basis, as close as possible to the time of payment, consistent with the guidelines of the GFSM 1986 (despite a header stating recording is done on an accrual basis).
- Grossing/netting:
  - Transactions are generally recorded on a gross basis, including financing transactions and corrective transactions, which GFSM 1986 recommends recording on a net basis.
- Recommendation:
  - Record on a net basis financing and corrective transactions.

### Accuracy and reliability — source data
- Coverage and completeness:
  - Data sources are complete to compile GFS for budgetary central government on a monthly, quarterly, and annual basis.
  - The GABS provides accounting records for the full range of transactions and financial stocks and allows customized reports (e.g., monthly summary cash flow generated automatically).
  - Data sources are complete to compile GFS for local governments on an annual basis.
  - There are no data sources for extrabudgetary units; therefore, GFS cannot be compiled for consolidated central government and consolidated general government.
  - There is no comprehensive register of individual public sector units.
- Recommendation:
  - Identify data sources for extrabudgetary units (e.g., financial statements) to enable compilation of GFS for this subsector and for consolidated central government and consolidated general government.
- Approximation to standards:
  - Data sources for budgetary central government are consistent with guidelines on definitions, scope, sectorization, classification, time of recording, and valuation.
  - Chart of accounts for budgetary central government provides sufficient detail to align with GFS classifications.
  - Data sources for local governments are sufficiently consistent to allow sound GFS but additional information likely needed to permit consolidation with other subsectors.
- Timeliness of source data:
  - Most information entered directly into GABS online and is available the same day.
  - Accounts in GABS are released for use by other units, usually by the 21st of the following month.
  - Exception: March accounts for the end of the financial year are only released after seven to eight months.
  - Audited data used for compiling annual GFS are available with a 12-month lag.
  - Data for local governments: annual information available with at least a three-year lag.
- Recommendation:
  - The MFDP should make efforts to obtain timely data sources for local governments.

### Assessment, statistical techniques, and validation
- Controls and validation:
  - GABS uses Oracle financial software with extensive built-in controls and validation procedures.
  - Most data are entered directly and reports generated automatically; reconciliation procedures exist.
  - Auditor general audits annual accounts before release; local government data are less reliable but are audited prior to release.
- Compilation techniques:
  - A uniform chart of accounts is used; supervisors ensure proper coding.
  - Revised estimate for the latest year uses extrapolation and trends from previous years; final data replace revised estimates when available.
  - Procedures for entering and processing data through GABS are well documented.
  - There is an imbalance favoring accuracy over timeliness.
  - March figures are disproportionately large because adjustments at the close of the financial year are assigned to March rather than to the month when transactions occurred.
- Recommendations:
  - Assign the adjustments made at the close of the financial year to the month in which the transaction occurred when compiling GFS.
- Other procedures:
  - A mapping table has been developed for generating the monthly summary cash flow directly from accounting records.
- Validation and discrepancy handling:
  - Intermediate results are generally not available; aggregates are cross-checked against the Statement of Assets and Liabilities and recurrent and development expenditure data.
  - Large fluctuations or discrepancies are investigated.
  - Statistical outputs are checked horizontally and vertically; values outside expected ranges are investigated.
  - External debt data are compared with creditor information in a nonroutine manner.
  - Fiscal data discrepancies among national compilers on items (e.g., domestic debt, foreign debt, foreign grants, domestic financing) are not regularly reconciled.
- Revisions:
  - Virtually no routine revisions except a single revised estimate for the latest year for budgetary central government.
  - Revision studies are not routinely conducted and are not published.

### Serviceability — periodicity and timeliness
- Periodicity:
  - Statistics for central government budgetary operations are compiled monthly and disseminated quarterly.
  - Statistics for central government debt are compiled and disseminated annually.
  - Periodicity meets the GDDS recommendation.
  - Note: central government budgetary operations are disseminated on a cumulative basis; individual quarter data require subtracting consecutive quarters.
- Timeliness:
  - Quarterly statistics for central government budgetary operations are disseminated with a four- to nine-month lag.
  - Annual statistics for central government debt are disseminated with a 12-month lag.
  - Timeliness does not meet the GDDS recommendation, which requires dissemination of central government budgetary operations within one quarter, and dissemination of central government debt within two quarters.
  - Information is available to compile and disseminate fiscal statistics within a timeframe that would meet GDDS recommendations.
  - BoB does not update public finance data on its BFS regularly because it does not receive regular submissions.
- Recommendations:
  1. Post the monthly summary cash-flow table on the MFDP’s website immediately after it becomes available; compile and post a quarterly central government debt table on the MFDP’s website so Botswana would easily meet the GDDS timeliness recommendation.
  2. Update the public finance data published in the BoB’s BFS regularly.

### Serviceability — consistency and reconciliations
- Internal consistency:
  - Concepts, definitions, and classifications for subannual and annual fiscal statistics by the MFDP are the same.
  - For both subannual and annual sets:
    - The deficit/surplus does not equal the financing; the discrepancy is incorporated into other financing.
    - Major aggregates equal the sum of components.
    - Functional and economic expenditure are equal.
    - Domestic and foreign financing are consistent with changes in debt.
    - Transfers paid cannot be compared with transfers received.
    - Interest in functional and economic expenditure is equal.
    - Subannual and annual summary table is consistent with the Statement of Assets and Liabilities.
- Recommendation:
  - Record the discrepancy between the deficit/surplus and financing in a separate item and not incorporate it into another item.
- Time consistency:
  - Published tables present a consistent six-year series of final data, one year of revised estimates, and one year of budget estimates.
  - Source data and methodology have not changed significantly in recent years.
- Cross-framework consistency:
  - MFDP is the sole fiscal data-producing agency; its data are used for national accounts and balance of payments, ensuring consistency in principle.
  - Differences with financing data from monetary accounts exist and have not been reconciled.
  - Cross-checks within MFDP are partially carried out; no regular cross-checks with other data-producing agencies.
- Recommendation:
  - The technical working group of the MFDP, BoB, and CSO, proposed in Section 0.1.2, should (1) reconcile on a regular basis the data each agency generates or publishes that conceptually should be the same and (2) investigate any discrepancies.

### Revision policy and practice
- Current practice:
  - Only a single revision of annual data is made for budgetary central government at the time of the budget speech in February, replacing an estimate with a combination of final data and an estimate for the most recent year.
  - This revision cycle is regular and known publicly, but there is no proper documentation of revisions.
  - The rest of subannual and annual data are final when published.
- Identification and transparency:
  - Revised data are clearly identified in MFDP and BoB publications; users are not specifically informed when data are revised beyond table notations.
- Public revision studies:
  - No revision studies are published.

### Accessibility — presentation, dissemination, and access
- Presentation:
  - GFS in MFDP, BoB, and MLG publications are presented clearly; inclusion of charts would facilitate analysis.
  - Deviations from international standards are not identified in publications.
  - Time series are provided in some publications.
  - Commentaries on current developments are limited to the budget speech and BoB’s Annual Report.
  - CFU prepares a quarterly report based on monthly summary cash flow, but it is an internal document only.
- Recommendations:
  1. Include charts and commentaries in publications to facilitate understanding of fiscal statistics.
  2. Disseminate statistics for central government budgetary operations on a discrete (noncumulative) basis.
- Dissemination media and formats:
  - MFDP and MLG publications are only available in hard copy.
  - BoB publications are available on the bank’s website.
  - MFDP and MLG publications include many fiscal statistics other than GFS but only in hard copy.
  - No information releases or other material are provided to facilitate dissemination of fiscal statistics in the media.
  - MFDP Intranet for the GABS project provides public servants with access to many reports and data for individual ministries; aggregate data are only available to selected MFDP users.
- Recommendation:
  - Post MFDP publications, or at least selected tables from them, on the MFDP’s website.
  - Form an MFDP working group to assess preparing and disseminating selected GABS reports and other fiscal statistics on the MFDP’s website, taking into account needs of all users, including the general public.
- Release schedule and equality of access:
  - MFDP’s Annual Statement of Accounts is released according to the Finance and Audit Act timetable but not on a specific date.
  - MFDP budget publications are released in February at the minister’s budget speech.
  - BoB’s Annual Report is released in May according to the BoB Act but not on a specific date.
  - BoB’s BFS is available on the BoB’s website with a one-month lag and in hard copy with a two-month lag after the reference period, but not on a specific date.
  - Publications are made available to all users simultaneously and without preferential treatment; the public is usually not informed of upcoming releases.
- Nonroutine requests:
  - Statistics not routinely disseminated are sometimes made available; customized tabulations are not usually provided.
  - Availability of additional statistics and procedures for obtaining them are not made known.

*Source: _cr07139 - 1. To enhance the consistency of macroeconomic datasets, the technical working group (IMF PDF).*

### 5.2       Metadata       accessibility

### 5.2       Metadata       accessibility

### 5.2.1 Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques
- No sources and methods document for GFS are published domestically.
- The only available information appears in the GDDS metadata on the IMF’s DSBB, to which the MFDP has a link on its website; the link is not readily visible.
- The GDDS metadata for the fiscal sector were last updated on November 2003 and remain essentially accurate.
- The name of the contact person for central government debt needs to be updated.

Recommendations:
- The link to the IMF’s DSBB should be placed on the MFDP’s website home page. The name of the contact person for central government debt should be updated.
- A hard copy of the GDDS metadata or other similar metadata should be made available to users upon request.

### 5.2.2 Levels of detail adapted to intended audience
- The only information available on the sources and methods used to compile GFS is the GDDS metadata on the IMF’s DSBB.

---

### 5.3 Assistance to users

### 5.3.1 Contact points for each subject field
- No contact person for GFS is identified in MFDP publications.
- Contact persons and contact details for each subject field are publicized in the GDDS metadata on the IMF’s DSBB.
- In general, limited assistance is provided to general public users of GFS.

Recommendation:
- Contact persons and contact details should be included in MFDP publications. The technical working group mentioned in Section 5.1.2 should assess how best to improve assistance to general public users.

### 5.3.2 Catalogs of publications, documents, and other services
- MFDP publications are available at the Government Printer, and the cost is indicated on the publication.
- BoB publications are available free in hard copy and on the bank’s website.

---

### Table 4 — Botswana: Data Quality Assessment Framework (July 2003) — Summary of Results for Government Finance Statistics (Compiling Agency: Ministry of Finance and Development)
- Key assessment findings (selected comments preserved exactly as presented):
  - 0.1 Legal and institutional environment: "The responsibility for disseminating fiscal statistics to the general public is not assigned. The flow of information among data-producing agencies at the technical level needs to be improved."
  - 0.2 Resources: "Insufficient staff to adequately perform tasks, and the staff are generally not trained in GFS methodology. The authorities have plans to interphase CS-DRMS with GABS to automate the updating of debt-service payments."
  - 0.3 Relevance: "Insufficient attention to the statistical needs of users outside government."
  - 0.4 Other quality management: "Trade-offs between accuracy and timeliness are not recognized. No cross- checks of relevant data with other data-producing agencies. Insufficient recognition of the need to adopt international best practices to improve data quality."
  - 1.2 Transparency: "Statistical publications do not identify where more information about the data-producing agency and its products can be found. Internal government access to statistics prior to their release is not made public. No advance notice of major changes is given to the public."
  - 2.1 Concepts and definitions: "Fiscal statistics for local governments are not compiled according to GFS methodology. There is no migration path to the GFSM 2001 methodology. The authorities intend to adopt the GFSM 2001 methodology."
  - 2.2 Scope: "No fiscal statistics are compiled for extrabudgetary units, consolidated central government, and consolidated general government. No preliminary annual data are published. There are plans to have GFS for general government after the computerization of local governments."
  - 2.3 Classification/sectorization: "Classification of revenue, expenditure, and financing partially follow international guidelines for budgetary central government, and do not follow them for local government."
  - 2.4 Basis for recording: "Financing and corrective transactions are not presented on a net basis. The authorities intend to move toward a modified system of accrual accounting by August 2008."
  - 3.1 Source data: "There are no source data for extrabudgetary units. There is no comprehensive register of individual public sector units. Source data for local governments are only available with a long lag."
  - 3.3 Statistical techniques: "Adjustments to annual data are all assigned to March, and not to the month the transaction took place."
  - 3.4 Assessment and validation of intermediate data and statistical outputs: "Potential and final data discrepancies among national compilers are not regularly reconciled."
  - 3.5 Revision studies: "Only the data for a single year are revised. All other subannual and annual data are final when first published. No revision studies are routinely conducted."
  - 4.1 Periodicity and timeliness: "The timeliness for central government budgetary operations and central government debt does not meet the GDDS standard."
  - 4.2 Consistency: "There are differences with the financing data from monetary accounts."
  - 4.3 Revision policy and practice: "No revision studies are conducted and therefore available for publication."
  - 5.1 Data accessibility: "The use of charts and commentaries on recent developments would facilitate comprehension. The MFDP and MLG publications are only available in hard copy. Fiscal statistics are not released according to a preannounced schedule, although they tend to follow a regular cycle. Fiscal statistics not routinely disseminated are sometimes made available. Availability of additional statistics not made known. The authorities intend to disseminate fiscal statistics on the MFDP’s website."
  - 5.2 Metadata accessibility: "The only access to documentation on sources and methods is through a link to the GDDS metadata on the IMF’s DSBB. Metadata are not presented in different ways to meet user needs. The authorities intend to publish the methodology and explanatory notes for compilation of GFS on the MFDP’s website."
  - 5.3 Assistance to users: "Limited assistance is provided to general public users."

---

### V. Monetary Statistics — Prerequisites of quality and resources

### 0.1 Legal and institutional environment
- The Bank of Botswana (BoB) compiles and disseminates monetary statistics as part of its central bank responsibilities regulated under the Bank of Botswana Act, 1996 (the BoB Act).
- The compilation and dissemination of monetary statistics is not explicitly incorporated in the BoB Act but can be implicitly assumed as an extension of the BoB’s principal objectives (Section 4) and its role as advisor to the government (Section 43).
- The Collective Investment Undertakings Act, 1999 (the CIU Act) designates the BoB as the regulatory authority to license, supervise, and regulate collective investment undertakings (CIUs) and confers to the BoB all the powers necessary for this purpose (Section 3).
- The BoB is the sole agency in Botswana that produces and disseminates monetary statistics. The monetary statistics are disseminated as a service to the public.
- Legislation to establish a regulatory agency for nonbank institutions already has been submitted to parliament; the proposed legislation mandates the regulatory agency to request at any time nonbanking financial institutions to report the information deemed relevant and provides for the BoB governor to be one of the board members.
- The BoB Act (Section 59) empowers the BoB to request information as it may require and stipulates a penalty for noncompliance and for reporting false or misleading information.
- The Banking Act, 1995 (the Banking Act) requires each bank to submit a statement of its assets and liabilities and imposes a fine for noncompliance (Section 20); Section 48 allows publication of received information as long as confidentiality is preserved or consent obtained.
- The CIU Act stipulates that all CIUs shall submit half-yearly and audited accounts to the regulatory authority.
- Although not explicit in law, the compilation and dissemination of monetary statistics were de facto assigned to the BoB and have been effective for covering the BoB and other depository corporations (ODCs): commercial banks, merchant banks, building societies, and savings banks.
- The BoB’s Research Department (RD) is in charge of compiling and disseminating monetary statistics. The Statistics and Information Service Unit (SISU) reports to one deputy director; MSS compiles monetary statistics.

Recommendation:
- Ensure a timelier flow of monthly data to compile monetary statistics by providing RD access to the BoB’s trial balance sheet data for compiling preliminary monetary statistics.

### 0.1.2 Data sharing and coordination
- The Statistics Producer Committee (established 2002), chaired on a rotating basis, meets about three times a year to facilitate data sharing and cooperation between the BoB and other official agencies.
- The RD’s deputy director in charge of statistics serves as the liaison on statistical emerging issues between the BoB, the MFDP, and the CSO.
- MSS does not have electronic access to information produced by the Accounting Department (AD); it receives hard copies of monthly balance sheets and supporting returns, which must be certified, signed off by the AD director, and approved by the governor before submission to the RD—these procedures result in significant delays.
- ODCs still submit hard copies of monthly balance sheets and supporting schedules, although the Banking Supervision Department (BSD) is upgrading systems for ODCs to report electronically.

### 0.1.3 Confidentiality
- Section 19 of the BoB Act prohibits disclosure of information acquired in performance of duties.
- Section 48 of the Banking Act prohibits publication that might disclose affairs of a bank or customer without prior consent.
- In a few past cases the methodology led to dissemination that allowed direct or indirect disclosure of individual reporters; such disseminated information was of a nonconfidential nature.
- Access to data is restricted to BoB-designated staff; electronic data are password-protected and protected by firewall software. Confidentiality is guarded during storage and destruction of records.

### 0.1.4 Reporting mandates and compliance
- The Banking Act provides for mandatory reporting of monthly balance sheets of commercial banks within 21 days after the end of the reference month and imposes penalties for noncompliance.
- Mandatory reporting by ODCs other than commercial banks is specified at licensing; penalties are rarely employed as the BoB relies on moral persuasion.

### 0.2 Resources — staffing, facilities, computing, financing
- MSS staff: six professionals working full time on compilation of monetary statistics:
  - one senior economist,
  - two economists,
  - three senior statistical assistants mainly responsible for data entry.
- Qualification breakdown: three hold a master’s degree (two of them have pursued studies in the UK), one a bachelor’s diploma, and the remaining two a certificate.
- Training: one MSS member attended an IMF-abbreviated course on monetary and financial statistics; training has relied mainly on in-house training; further training in the Monetary and Financial Statistics Manual, 2000 (MFSM) methodology is required.
- Computer resources: all six compilers have a personal computer, although some need upgrading; Excel is the only software used; no applications for econometric purposes, cross-checking procedures, or seasonal adjustment; data stored on individual computers and BoB mainframe; regular backups with safe offsite storage.
- Financial resources: adequate and subject to annual budget cycle; staff remuneration higher than comparable public sector positions; staff turnover generally low.

Recommendations:
- Ensure that all MSS economists attend the IMF course on monetary and financial statistics and that their skills are continuously developed as needed.
- Update computer resources on a regular basis to obtain further efficiencies in compiling and disseminating monetary statistics.

### 0.2.2 Measures for efficient use of resources
- Main tools: annual staff performance review and allocation of resources through annual budgeting; RD develops a strategic framework for longer-term planning.
- RD has sought and received extensive technical assistance from the IMF and other sources.
- Further expansion of coverage to include ODCs will require additional resources.
- Generating monetary statistics electronically from the BoB accounting systems and ensuring electronic reporting by ODCs could release staff resources now heavily involved with data entry and improve timeliness while expanding coverage.

### 0.3 Relevance
- On Botswana’s adherence to the GDDS in 2002, users were invited to a workshop to discuss relevance and analytical usefulness of official statistics.
- BoB encourages users to raise queries directly to RD staff but does not have a regular procedure to obtain direct feedback from users of monetary statistics.
- Meetings with policymakers occur when required to review monetary statistics and identify new data requirements.
- RD staff attend seminars and training courses and maintain informal contacts with the local community and main data users.

---

*Source: _cr07139 - 5.2 Metadata accessibility (IMF PDF content provided).*

### 0.4 Other quality management

### 0.4 Other quality management

### Processes to focus on quality
- Recognition of importance of high-quality statistics evidenced by:
  - Subscription to the GDDS in 2002.
  - Adoption of plans for improvement of the monetary statistics soon after.
  - Co-chairing of the Statistics Producer Committee at the BoB high level.
  - Importance embodied in the BoB’s mission statement.
- Recommendation:
  - Make use of the dissemination of preliminary data in order to substantially reduce dissemination lags.
  - Establish and make public a revision policy to allow users to gauge the reliability of the preliminary data to be disseminated.

### Processes to monitor quality of the statistical program
- BSD monitors data reported by the ODCs for consistency with established guidelines, in cooperation with the MSS.
- Error handling and nonreceipt:
  - Supervisors contact reporting institutions; MSS staff may also contact the reporting institution informally or formally.
- Quality checks: consistency with balance of payments data and plausibility monitoring.

### Processes to deal with quality in planning the statistical program
- BoB management recognizes trade-offs among dimensions of data quality.
- Current priority: accuracy is regarded as one of the most important dimensions of data quality.
- Consequence: emphasis on accuracy causes excessive long delays in disseminating the data and in reporting data to the IMF, particularly with regard to BoB data.

### Assurances of integrity — Professionalism
- Legal and governance context:
  - Pursuant to the BoB Act, the MFDP oversees overall affairs of the BoB; the BoB board comprises the governor (appointed by the president), the principal secretary of the MFDP, and seven members appointed by the MFDP.
  - The board is required to meet at least once each quarter.
- Professional independence and culture:
  - No law or formal provision supports professional independence, but professionalism is strongly recognized and embedded in reporting arrangements.
  - RD staff feel free from undue influence in conducting duties.
  - Monetary statistics compilation arrangements and training support professional independence.
- Personnel policies:
  - Recruitment and promotions primarily merit-based.
  - Staff must observe General Conditions of Service.

### Assurances of integrity — Statistical choices and communication
- Choices of sources, statistical techniques, and dissemination aspects are based exclusively on statistical considerations.
- Monetary statistics compiled from accounting records and supporting schedules of the BoB and ODCs; reporting forms mainly designed to meet bank supervision requirements.
- RD communications policy restricts number of staff allowed to speak on behalf of the BoB; practice is to correct factual errors but usually not to debate interpretation.
- The RD provides some explanations and footnotes in the Botswana Financial Statistics (BFS).

### Transparency
- Legal texts (BoB Act and Banking Act) available on the BoB website, but specific monetary statistics terms are posted in Botswana GDDS metadata on the IMF’s DSBB website (accessible via a link from the BoB website).
- Internal governmental access:
  - In general, no governmental access prior to dissemination.
  - Exception: principal secretary of the MFDP is a board member — possible indirect access immediately prior to dissemination.
  - Monetary statistics end-of-year estimates provided to the Minister of Finance and Development Planning for the budget speech before release; this is only partially identified in the GDDS metadata.
- Identification of products: monthly BFS clearly identified as a product of the RD of the BoB; tables clearly identify sources.
- Advance notice of methodological changes:
  - Advance notice is not given of major changes in methodology.
  - BFS first page contains notice alerting readers to revisions, breaks, discontinuities, or changes in methodology; old series disseminated during transition periods; methodological footnotes and introductory comments provided.
- Recommendation:
  - Provide advance notice of major changes in methodology, source data, and statistical techniques.

### Ethical standards
- New staff sign General Conditions of Service covering restrictions on political activities, confidentiality, financial disclosure, and avoidance of conflicts of interest.
- Staff prohibited from holding equity in financial institutions supervised by the BoB.
- Enforcement:
  - Conditions rigorously enforced; changes and enforcement actions communicated regularly.
  - Section 18 of the BoB Act addresses conflicts of interest; Section 19 requires an oath/declaration of secrecy.
  - Penalty for violators: 25,000 pula or five years’ imprisonment.
- Cultural and management practices effectively enforce ethical standards.

### Methodological soundness — Concepts and definitions
- 2005 revision: analytical framework revised in 2005 and follows to a great extent the MFSM.
- To facilitate intertemporal consistency, BoB disseminates monetary statistics compiled under the Draft Guide to Money and Banking Statistics in the BFS during a transition period.
- Monetary aggregates disseminated:
  - M1: notes and coins outside depository corporations and transferable (demand) deposits in national and foreign currency of other financial institutions, local governments, public nonfinancial corporations, and private sector with depository corporations.
  - M2: M1 plus other deposits (call, savings, notice, and time) in national and foreign currency of other financial institutions, local governments, public nonfinancial corporations, and private sector with the depository corporations.
  - M3: M2 plus securities issued by depository corporations held by other financial institutions, local governments, public nonfinancial corporations, and the private sector.
  - M4 continues to be disseminated to facilitate transition; foreign currency accounts are now included in M1 and M2.
- Framework provides measures based on combination of liquidity and institutional factors.

### Scope
- Assessment scope: Depository Corporations Survey (DCS) rather than complete financial system.
- Institutional coverage as of December 2005:
  - (1) the BoB;
  - (2) ODCs: 6 commercial banks, 1 merchant bank, 2 other deposit-taking institutions (building society, and savings bank), and some small credit cooperatives;
  - (3) OFCs: 1 development bank (state-owned), 1 development corporation (state-owned), 1 entrepreneurial development agency (state-owned), 8 insurance companies, 87 pension funds, 3 asset management institutions administering 12 funds (operating under the CIU Act), 4 medical aid societies, 3 stockbroking companies, 1 special purpose vehicle, 1 offshore bank, and 37 exchange houses.
- At end-2005, total assets of the pension funds exceeded those of the ODCs.
- Recommendation:
  - Expand progressively the coverage of the monetary statistics to the OFCs, starting possibly with quarterly data.

### Classification/sectorization
- Principles broadly consistent with MFSM methodology; sectorization distinguishes residents vs. nonresidents, then domestic sectors.
- Shortcomings due to source data limitations:
  - Some parastatals classified as public nonfinancial corporations.
  - Nonprofit institutions serving households classified as nonfinancial corporations instead of other residents.
  - Financial derivatives are classified as off-balance sheet items by ODCs.
  - Financial assets/liabilities denominated in domestic and foreign currency not identified separately in reporting forms.
  - Not all repurchase agreements treated as collateralized loans.
  - One ODC (25 percent of total loans in December 2005) classifies accrued interest on loans with other receivables.
  - Two ODCs (accounting for 46 percent of deposits in December 2005) classify accrued interest on deposits with other payables.
- Recommendations:
  - Establish a unified list on sectorization of institutional units to be adopted by all statistical producers and disseminate it on the BoB’s website.
  - Improve classification of financial instruments once better source data are available.

### Basis for recording — Valuation and recording
- General valuation practices:
  - Financial statements prepared on historical cost basis modified to include revaluation of investments.
  - Foreign currency transactions translated at bid rates for sales and offer rates for purchases at transaction date; stocks translated at bid and offer exchange rates at close of reference period.
  - Exchange gains and losses realized/unrealized included in income statement; unrealized gains on available-for-sale recognized in Market Revaluation Account.
  - Held-to-maturity securities carried at amortized cost using effective yield method; available-for-sale recognized at cost then remeasured at market prices or fair values.
- Deviations from MFSM:
  - Stocks of held-to-maturity securities other than shares and liabilities in form of securities other than shares are not restated at fair value.
  - Loans presented without adjustment for expected loan losses; deposits presented at book value.
  - BoB certificates stated at a discount value excluding unearned interest, as recommended.
  - Flow data are not yet compiled.
- Recommendations:
  - Compile data on all loans and deposits based at book value (outstanding amount plus accrued interest).
  - Estimate the valuation of held-to-maturity securities at fair values.
- Recording basis:
  - Interest income and expense recognized on an accrual basis.
  - In some cases accrued interest recorded as “other assets” or “other liabilities” and not presented with the underlying instrument.
  - Transactions recorded on change of ownership basis at market prices; new securities issuance and redemptions recorded.
- Grossing/netting:
  - Data collected on a gross basis; claims not netted against liabilities.
  - Fixed assets not presented on a gross basis although gross and accumulated depreciation data are available.
- Recommendation:
  - Compile fixed assets on a gross basis and present accumulated depreciation separately.

### Accuracy and reliability — Source data
- Data registers and maintenance:
  - Comprehensive and up-to-date register of all depository corporations, all licensed by the BoB; procedures adequate for additions, deletions, mergers.
  - Responsibility for maintaining OFC register divided between BoB (CIUs and offshore banks) and MFDP (insurance companies, pension funds, holding societies).
  - Sectorization of financial corporations into ODCs and OFCs not fully aligned with MFSM.
- Coverage:
  - Institutional and geographic coverage of the depository corporation sector almost complete.
  - Lack of coverage of savings cooperatives estimated to account for less than 1 percent of total deposits.
- Reporting forms and data collection:
  - Report forms last updated in October 2001 and designed for supervisory needs; do not contain sufficient details to compile fully MFSM-recommended sectoral balance sheets by currency, instrument, and economic sectors.
  - Examples of source data shortcomings:
    - Breakdown between securities—other than shares and shares and other equity in foreign reserves managed by Fund managers estimated based on data for December 2003.
    - Sectorization of BoB certificates held by other than commercial banks.
    - ODC source data do not differentiate between accounts in national and foreign currency.
    - Financial derivatives represented 4 percent and 8 percent of commercial banks’ total assets in December 2005 and June 2006, respectively, and are classified off-balance sheet.
    - Data on shares and other equity include instruments that qualify as tier-two capital in Botswana but not as shares and other equity per MFSM.
  - Forms provided in hard copy to MSS: very summary balance sheets plus schedules (5 schedules for the BoB and 21 for the ODCs).
  - Data manually entered into Excel and electronically aggregated; data entry checks mostly manual with some automatic consistency checks in the spreadsheet.
- Modernization:
  - BSD’s computerization project initiated revision of report forms to better respond to supervisory needs; compilers involved; expected to be finalized in 2007.
- Recommendations:
  - Report BoB’s detailed accounting data to the MSS in electronic form.
  - Review ODC report forms to ensure complete, relevant, and timely information with minimum response burden.
  - Fully use computing technology to ensure electronic reporting of ODCs data.
  - Involve ODCs early in development of report forms to facilitate reporting from available software systems.

### Source data alignment and timeliness
- Compliance with accounting standards:
  - BoB and ODC financial statements adhere closely to International Accounting Standards and are audited by international firms.
- Limitations:
  - Summary balance sheets and schedules do not provide sufficiently detailed information to classify all financial instruments by currency and economic sector or to present accrued interest with the underlying instrument.
- Timeliness:
  - BoB data available to MSS with an excessively long time lag (about six weeks), preventing meeting GDDS recommendations on central bank data timeliness.
  - ODCs report monthly data within 21 days after end of reference month; sufficient for GDDS recommendations but current paper-based procedures would not meet SDDS timeliness requirements.
- Recommendation:
  - Report BoB monthly preliminary data to the MSS no later than 21 days after the end of the reference month.
  - Reduce the time lag for reporting ODC data and/or establish mandatory electronic reporting to all ODCs.

*Source: _cr07139 - 0.4 Other quality management (IMF). PDF chapter/section content provided.*

### 3.2 Assessment of source data

### 3.2 Assessment of source data

### 3.2.1 Source-data assessment practices
- Source data—including censuses, sample surveys and 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 BSD and MSS routinely analyze source data for accuracy using manual assessment procedures.
- Cross-validations test internal consistency of each institution's data submission.
- Monetary statistics compilers perform additional validations and verify with respondents any data inconsistency or out-of-trend values.
- ODCs are requested to provide explanations and, when needed, to resubmit data with corrections to the BoB.
- Procedures exist for addressing compilers’ queries: compilers directly contact reporting institutions and consult with the BSD as needed.

### 3.3 Statistical techniques (3.3.1–3.3.2)
- 3.3.1: Data compilation employs sound statistical techniques.
  - Monetary statistics are almost exclusively based on balance sheet data and do not, by and large, rely on the use of statistical techniques.
  - Data submissions from ODCs are usually timely and complete; there are no instances requiring imputation and adjustment for nonresponse.
  - "A software for seasonal adjustments of monetary aggregates is not available."
  - Recommendation: In cases of nonresponse within the established timetable, estimate the missing observation (e.g., based on the share of the reporting institution in the total aggregates, using the last balance data available for that institution) and disseminate preliminary information. Once the missing data are received, revise the preliminary data with final data.
- 3.3.2: Other statistical procedures employ sound techniques.
  - Monetary statistics are based solely on accounting data; no data adjustments or transformations are undertaken.
  - New balance sheet data are cross-checked with past series.
  - Details in accompanying schedules are cross-checked with totals via links embedded in the Excel tables used to compile monetary statistics.
  - If errors are large and cannot be accounted for, the source is contacted and requested to resubmit correct data; resubmission is rare and done before final dissemination.
  - "The BoB does not disseminate seasonally adjusted monetary statistics."

### 3.4 Assessment and validation of intermediate data and outputs (3.4.1–3.4.3)
- 3.4.1: Validation of intermediate results
  - Monetary series are compared with related series and indicators to check consistency.
  - The MSS validates its data against international reserves data in the balance of payments but does not cross-check net credit to the central government with MFDP data.
  - Recommendation: Routinely use other information to cross-check balance sheet data reported by the BoB and ODCs (examples: data from the MFDP on deposits placed at depository corporations; data on the BoB’s outstanding certificates; regulatory agencies’ data on holders of government securities, on securities other than shares of the ODCs, and on holdings of shares and other equities of the ODCs).
- 3.4.2: Assessment of statistical discrepancies in intermediate data
  - The MSS investigates statistical discrepancies regularly.
  - Positions between the BoB and the ODCs and among ODCs are cross-checked; reasons contributing to discrepancies are investigated.
  - When a large discrepancy is noted, the MSS contacts the financial corporation for an explanation and requests resubmission of corrected data.
- 3.4.3: Investigation of discrepancies and indicators of problems
  - Once detected, statistical discrepancies are investigated and acted upon.
  - "Flow data are not yet compiled to allow reconciliation of financial flow data with changes in the corresponding stock."

### 3.5 Revision studies (3.5.1)
- 3.5.1: Routine studies and analyses of revisions
  - The BoB’s policy is to disseminate only final data; therefore there is no stated policy to conduct studies or analysis of revisions on a routine basis.
  - When needed, the BoB revises reporting forms, methodology, and compilation practices (examples: revision of report forms in 2001 and introduction of standardized forms following MFSM methodology).
  - Methodological changes triggered by reviews are presented as notes in the introduction to the BFS and annotated in corresponding tables.
  - Recommendation: Conduct periodic analysis of data revisions (e.g., preliminary data against final data) and incorporate findings to improve preliminary data to be disseminated.

---

### 4 Serviceability

### 4.1 Periodicity and timeliness (4.1.1–4.1.2)
- 4.1.1: Periodicity
  - The central bank survey and the DCS are disseminated monthly, consistent with GDDS and SDDS specifications.
- 4.1.2: Timeliness
  - The timeliness of the central bank surveys lags well behind GDDS recommendations; the ODCs survey timeliness is on the upper limit of recommendations.
  - "As of mid-November 2006, the latest available data for the BoB correspond to end-July 2006, and for the ODCs correspond to end-August 2006."
  - The BoB disseminates data on commercial bank credit (monetary policy target) before the end of the month following the reference month.
  - Recommendation: Disseminate BoB preliminary data no later than two months after the reference month (GDDS).

### 4.2 Consistency (4.2.1–4.2.3)
- 4.2.1: Internal dataset consistency
  - In general, monetary statistics are consistent within the dataset.
  - The central bank survey presents details on assets and liabilities to ODCs; the ODCs’ survey presents the reverse.
  - Assets and liabilities of the BoB and ODCs are consolidated within the DCS; any discrepancy is included in "other items net" as recommended.
  - The ODCs’ interbank position for current periods shows an acceptable level of discrepancy.
  - "Statistics for the entire financial corporations sector and the flow-of-funds accounts are not compiled to allow further consistency checks."
- 4.2.2: Time-series consistency
  - Time series published in the BFS generally cover over a 10-year period and are consistent over time.
  - Breaks in series are explained in introductory notes when they first appear and are annotated in corresponding tables.
  - New time series following the MFSM started being disseminated in February 2006; historical data were reconstructed for five years (starting at end-December 2001) and disseminated in the BFS.
- 4.2.3: Consistency with other frameworks
  - Monetary statistics are largely consistent with external sector statistics.
  - Net foreign assets presented in monetary statistics, including the BoB’s external reserves, are largely consistent with the corresponding measure derivable from the balance of payments and international investment position.
  - Differences with government finance statistics are largely attributable to differences in timing of recording.

### 4.3 Revision policy and practice (4.3.1–4.3.3)
- 4.3.1: Revision schedule and transparency
  - Monetary statistics disseminated by the BoB are considered final and therefore are not subject to a regular revision cycle.
  - Revisions are very infrequent; when they occur reasons are annotated in corresponding tables (examples: reclassification of off-balance sheet items following 2001 reporting form revision).
  - There is no regular schedule to undertake revisions of reporting forms, methodology, and compilation practices; they take place when deemed necessary.
  - Recommendation: Adopt and make public a revision policy so users and data reporters are informed of the revision schedule of preliminary data to be disseminated, report forms, and major methodological changes.
- 4.3.2: Identification of preliminary and revised data
  - The BFS tables do not contain preliminary data; disseminated data are final.
  - In rare instances of revisions (e.g., 1994 improvements of interbank positions and 2001 reporting form revisions), users were informed at dissemination.
- 4.3.3: Public studies/analyses of revisions
  - Except for explanatory notes in the BFS introduction, analyses of revisions are not made available to the public.
  - Recommendation: Inform users of the results and analysis of revisions to statistics.

---

### 5 Accessibility

### 5.1 Data accessibility (5.1.1–5.1.5)
- 5.1.1: Presentation and interpretability
  - The BFS presents monthly monetary statistics, including MFSM-recommended surveys, several tables on monetary and credit aggregates and components, and tables to cross-check disseminated data (e.g., BoB certificates outstanding disaggregated by holding sectors).
  - BFS contains a "BFS Highlights" section explaining major changes with cross-references to tables.
  - BoB’s annual reports include a separate statistics section with charts.
  - BFS and annual reports are disseminated on the BoB’s website and in hard copy; BFS statistics on the website include time series available in Excel files.
  - The last review of disseminated statistics presentation was undertaken in February 2006 (BFS) and 2005 (annual report) to include DCS dissemination recommended in the MFSM.
- 5.1.2: Dissemination media and format
  - Monthly monetary data are publicly available through the BFS posted on the BoB’s website.
  - Hard copy is distributed free of charge in Botswana to a distribution list, available in the BoB’s library, and made available free of charge upon request.
  - BoB annual reports can be downloaded from the bank’s website free of charge; annual reports of the BoB and ODCs are available in the BoB’s library.
- 5.1.3: Preannounced release schedule
  - The approximate release date of monthly monetary statistics is announced in the BFS (hard copy and electronic).
  - Dissemination on the website normally takes place as announced, although hard copies take longer to be published.
- 5.1.4: Simultaneous availability to users
  - The BFS is posted on the Internet and made available to all users at the same time.
  - Hard copy is distributed via mailing list; users can also access it through direct contact with the RD or by visiting the BoB’s library.
- 5.1.5: Nonroutine data availability
  - Upon request, the BoB provides unpublished and nonconfidential data free of charge.
  - Users are informed they may contact the principal economist in the SISU; contact details are included in the BFS and GDDS metadata.

### 5.2 Metadata accessibility (5.2.1–5.2.2)
- 5.2.1: Documentation on methods and deviations
  - A summary description of methodology to compile monetary statistics is available in Botswana’s metadata posted on the IMF’s DSBB website.
  - A direct link is provided between the BoB’s website and the metadata on the IMF’s DSBB website to facilitate access.
- 5.2.2: Level-of-detail and intended audience
  - Users are informed of compilation methods only through the GDDS metadata.
  - Tables in the BFS include explanatory notes; derivation of monetary aggregates' national definitions is presented as memorandum items.
  - "There is no comprehensive methodological note available to users."
  - Recommendation: Prepare and disseminate on the BoB website more detailed information on concepts, scope, classifications, basis of recording, data sources, and statistical techniques, highlighting differences from MFSM recommendations.

### 5.3 Assistance to users (5.3.1–5.3.2)
- 5.3.1: Contact points
  - Contact information (e-mail addresses and telephone numbers) of compilers/analysts are disseminated in the BFS and GDDS metadata.
- 5.3.2: Catalogs and publication information
  - The list and prices of BoB’s publications are included in the BFS.
  - The hard copy encourages users to use the BoB’s website from which most listed publications can be downloaded free of charge.

*Source: _cr07139 - 3.2 Assessment of source data (IMF PDF chapter).*

### Section 19 of the BoB Act states that no official or employee of the bank shall disclose to any

### _cr07139 - Section 19 of the BoB Act states that no official or employee of the bank shall disclose to any

### Confidentiality and data protection
- Section 19 of the BoB Act: no official or employee shall disclose to any person any information relating to the affairs of the BoB, any other bank, financial institution, business, or person, acquired in performance of duties or exercise of functions.
- Survey respondents and other providers are assured information will be handled confidentially; no cases are known where confidentiality has been violated.
- In a few cases, published BoB information allows direct or indirect disclosure of individual reporters due to:
  - small size of the economy and sector concentration (aggregation cannot always ensure confidentiality);
  - three important export products (raw diamonds, beef, and soda ash) are produced and exported by only one company per product.
- BoB stance: public interest in these data outweighs concerns about confidentiality; these data relate to core indicators of economic activity in Botswana and are in the public domain in any case.
- Large individual investment flows and other large transactions are often reported in the press before balance of payments statistics are released.
- Access controls:
  - Only staff responsible for compilation have access to raw and intermediate data.
  - Data stored electronically are password-protected and accessible only by BoB-designated staff.
  - A firewall software is in place to prevent illegal third-party access.
  - Confidentiality is guarded during storage and during destruction of records.
- Recommendation: "The BoB should seek to formalize its relationship with data reporters whose data could be subject to direct or indirect disclosure, either by seeking agreement from the affected companies or defining and publicly stating the limits of data confidentiality."

### Legal mandate and reporting obligations
- The BoB Act 1996 (Section 59) empowers the BoB to request information from any person or entity and stipulates a penalty for noncompliance and for reporting false or misleading information.
- The BoB Act does not specifically identify compilation of balance of payments statistics as the BoB’s responsibility; applicability depends on an informal intragovernment agreement that the BoB assumes this responsibility.
- Under the former foreign exchange control regime (no longer functioning), banks were obliged to report foreign exchange transactions to the BoB; these data were important for balance of payments compilation.
- Following gradual removal of foreign exchange controls during the 1990s, the reporting requirement for banks and some other foreign exchange dealers was continued. The Balance of Payments Statistics Unit processes these data.
- Penalties for noncompliance have never been employed by the BoB; moral persuasion has been relied upon instead.
- For surveys, respondents are not informed about penalties to maintain cordial relationships with data reporters.
- Observed issue: relatively low survey response rates should be improved; compilers must balance cordial relations and affirmation of their mandate.

### Resources (staffing, facilities, IT, financing)
- Staffing:
  - The section in charge of balance of payments statistics has 10 full-time staff comprising one senior economist, three economists, and six statistical assistants.
  - Five statistical assistants are mainly responsible for data entry (bank reporting on foreign exchange transactions).
  - Of these staff members, two hold a master’s degree, others hold bachelor’s degrees and other tertiary education certificates.
  - Three members have attended the IMF course on balance of payments statistics at headquarters.
- Computing resources:
  - All 10 compilers have a personal computer, though some computers need upgrading (compilers handling large datasets require stronger processing capability).
  - Access and Cheetah software programs are used for compilation; Cheetah is a specialized package now exclusively supported by the BoB’s information technology division.
  - Compilers report increasing problems maintaining Cheetah and consider planning for its replacement necessary.
  - Balance of payments data are stored on individual computers and the BoB mainframe; regular backups are carried out and stored safely, including offsite.
- Financing and remuneration:
  - Financial resources are adequate and subject to an annual budget cycle.
  - Staff remuneration is competitive; the BoB pays higher wages than other public sector employees for comparable positions and provides more generous benefits.
  - Remuneration and benefits remain attractive compared with the private sector, though some sectors (including economic consultancy and banks) pay higher wages for comparable positions.
  - Staff turnover at the BoB is generally low.
- Future needs:
  - Further development of the statistics program and planned improvements in timeliness, periodicity, detail, coverage, and accuracy will require further resources.
  - Moving away from bank transactions reporting toward other data sources will require well-trained staff for surveys, coordination with other agencies, and administrative-data analysis.
  - Efforts to subscribe to the Special Data Dissemination Standard (SDDS) imply enhanced periodicity and timeliness unlikely to be achieved with the current resource establishment.
- Recommendation: "The BoB should invest in sufficient staff numbers, their training, and related resources (IT, transport, etc.). Abolishing bank transactions reporting and related processing will free five research assistants. These staff will require additional technical knowledge and skills for conducting surveys and developing new data sources. Therefore, the BoB should consider training existing research staff for these new roles."

### Efficiency and resource allocation
- Main tools for efficiency: annual staff performance review and allocation of resources through the annual budgeting process.
  - Staff performance review develops a work program for each staff member linked to departmental work program and annual budgeting.
  - RD develops a strategic framework for longer-term planning.
- Division-level efficiency measures are less developed.
- Within the Balance of Payments Section, resource allocation could be improved by replacing foreign exchange reporting with other data sources.
  - Five staff mainly enter and process foreign exchange transaction forms obtained from banks.
  - Resulting data are used to compile some items on trade in services, but coverage and accuracy are considered so low that use as a secondary data source is doubtful.
- Recommendation: "Management should implement measures to assess the efficiency of resource allocation within units and divisions. This would include making judgments about the costs and benefits of particular data sources and methods. As a current priority, management should evaluate whether staff and other resources could be redeployed from processing bank reports on foreign exchange transactions to address other needs (such as surveys) and produce data of higher quality. Retraining is probably required. Replacing foreign exchange reporting with other data sources takes time since new sources have to be developed. However, planning and development could be initiated now."

### Relevance and user engagement
- No regular procedure exists to obtain direct feedback from users of balance of payments statistics.
- Each year a series of briefing meetings is held following release of the BoB’s Annual Report for various user groups (cabinet, business leaders, financial institutions, parliament, media) covering balance of payments data.
- Further meetings with policymakers to review statistics and identify new data requirements occur when required or on request.
- On Botswana subscribing to the GDDS in 2002, users were invited to a workshop discussing relevance and analytical usefulness of official statistics.
- Staff keep abreast of emerging data requirements by attending seminars and training courses and maintaining informal contacts with the local community and main data users.

### Quality management and statistical processes
- The BoB subscribes to GDDS (2002) and adopted plans for improvement of balance of payments statistics; the importance of high-quality statistics is embodied in the BoB’s mission statement.
- Management is regularly informed about quality aspects; reviews identify problems at stages of collecting, processing, and disseminating data.
- Consistency is ensured across datasets (where applicable); plausibility is monitored.
- BoB regularly monitors public and banking sector data and high-valued transactions of nonbank corporates and makes inquiries in case of doubtful transactions.
- The BoB recognizes tradeoffs among data quality dimensions; accuracy is regarded as one of the most important dimensions.
  - Emphasis on accuracy and avoiding sizable revisions leads to rather long delays in publishing final data and reporting to the IMF; however, preliminary data are released in a timely fashion.
- Recommendation: "The BoB should address timeliness and periodicity issues more explicitly and set out plans for their improvement in the departmental or divisional work plan. Also, the BoB management should decide on further important data accuracy improvements concerning resource allocation (replacing the bank reporting system) and means to strengthen institutional cooperation."

### Assurances of integrity, professionalism, and transparency
- Professionalism:
  - No law or formal provision supports professional independence, but a strong culture of professionalism is embedded in reporting arrangements and procedures.
  - Compiling staff assert compilation quality has never been negatively affected by external pressures.
- Source and technique selection:
  - Data sources are selected on availability, accuracy, completeness, timeliness, practicality, and resource availability.
  - Selection of techniques is informed by compiling staff experience, technical assistance advice, and practical considerations.
- Dissemination and prior access:
  - Forms of dissemination are determined outside the statistics unit; release of preliminary balance of payments data to the MFDP (and then by its minister in the budget speech) is determined by political priorities.
  - BoB senior management determines publication in the BoB’s Annual Report and the Botswana Financial Statistics (BFS).
  - The BoB management and other government agencies enjoy prior access to statistics; selected relevant data users in the BoB also have prior access.
  - There is no guidance on who would have access at what time.
  - GDDS metadata partially identify prior access, but metadata are only available from the DSBB website; BoB publications do not draw attention to this.
- Right to comment:
  - The RD is subject to the BoB communications policy restricting staff allowed to speak on behalf of the BoB.
  - BoB practice is to correct factual errors but generally not to debate interpretation; when comments are made on erroneous presentation, a public relations officer issues a statement based on compiling staff input.
- Transparency of methodology and products:
  - GDDS metadata are available to the public through the DSBB website; currently available GDDS metadata are not entirely up to date.
  - Methodological notes accompany data in the BoB Annual Report when necessary.
  - The first page of the BFS contains a notice alerting readers to revisions, breaks, discontinuities, or methodological changes; tables contain methodological footnotes, but methodological issues are not always clear from the tables alone.
  - Recommendation: "The BoB should clarify the nature and extent of prior access to data in published metadata. It would be useful to establish precise rules about access to data prior to their release."
- Ethical standards:
  - New staff sign the General Conditions of Service covering restrictions on political activities, commitments to confidentiality and professionalism, financial disclosure, and avoidance of conflicts of interest.
  - BoB staff are prohibited from holding equity in financial institutions supervised by the BoB.
  - These conditions are rigorously enforced and communicated regularly.
  - Section 18 of the BoB Act deals with conflicts of interest for board members and employees; Section 19 complements it by requiring an oath or declaration of secrecy.
  - Penalty for violations: "25,000 pula or five years’ imprisonment."
  - Employees are aware of these guidelines as they are listed in the conditions of service.

*Source: Extract from Balance of Payments Statistics chapter in the provided IMF PDF content unit.*

### 2.         Methodological         soundness

### 2.         Methodological         soundness

### 2.1 Concepts and definitions

- The overall structure follows the Balance of Payments Manual, fifth edition (BPM5).
- Double-entry system is applied; statistical discrepancies are recorded in errors and omissions.
- Clear distinction is made between income components and goods and services components.
- Financial account records transactions in assets and liabilities separately.
- Direct investment, including reinvested earnings, is recorded on a directional basis.
- Resident institutional units are defined in conformity with BPM5 and relate to those that have a center of economic interest in Botswana.
- The one-year rule is applied for residency of individuals, except Botswana workers in South African mines who are classified as Botswana residents on the basis that they maintain their center of economic interest in Botswana.
- Classification of types of transactions follows BPM5 concepts; transactions include exchanges and unrequited transfers.
- Identified omission: the BoB did not report realized valuation gains and losses of its foreign reserves as transactions in balance of payments data. This omission has been identified and is being corrected.

### 2.2 Scope

- Scope is broadly consistent with internationally accepted standards (BPM5): in principle, covers all transactions between residents and nonresidents.
- Practical coverage limitations:
  - Lack of data prevents compilation of trade in goods not reported by customs (e.g., shuttle trade, Internet commerce, and smuggling); no adjustments are made.
  - The compilation approach assumes all large, formal, sector imports are cleared by customs even when goods do not pass customs borders (e.g., commercial aircraft).
  - Foreign embassies in Botswana are treated as nonresident in principle, but data on their transactions with resident entities are only partially available.
- International Transactions Reporting System (ITRS):
  - Covers cash transactions involving foreign exchange.
  - Does not ensure all reported transactions are between residents and nonresidents, nor that all resident-nonresident transactions are reported.
  - Data on services, income, and transfers are largely obtained from the ITRS and are inadequate in coverage and classification.
  - Misclassification by reporting entities limits coverage.
  - The BoB is exploring alternative data sources.

### 2.3 Classification/sectorization

- Institutional units and transactions are classified according to BPM5.
- Sectoral breakdowns applied where applicable.
- Classification problems arise from source administrative data using definitions that deviate from BPM5, examples:
  - Government debt data may include debt of government-owned corporations.
  - Fees earned by the Civil Aviation Department may be misclassified as services instead of transfers.
- The BoB identifies deviations and keeps source data under review.

### 2.4 Basis for recording

- Market prices are used to value flows and stocks, consistent with BPM5.
- Where no market prices are observed, prices of similar transactions or best estimates are used as proxies.
- Transaction values are reported separately from related charges, fees, and transaction services.
- Import values:
  - Reported in customs data on a c.i.f. basis and adjusted to f.o.b. values using benchmark data obtained in the early 1990s.
  - Recommendation: The BoB should seek, and the CSO should provide, data on f.o.b. import values reported by importers. The BoB and CSO should review these data and determine whether they approximate BPM5 definitions of f.o.b. values. If not, the BoB should conduct a review of the benchmark values for freight and insurance.
- Transactions between affiliated enterprises are recorded at the value provided by the data provider.
- Survey forms state procedures for market value estimation when no actual market value is available.
- Foreign currency transactions are converted using the midpoint exchange rate prevailing in the market on the transaction date; when the transaction date cannot be determined precisely, the average midpoint exchange rate for the reporting month is used.
- Transactions derived from changes in stocks:
  - Are often calculated from stock changes without appropriate calculations to exclude valuation and other changes.
  - Transaction estimates derived from stock data are typically calculated from stock values reported in their domestic currency equivalent.
  - Recommendation: For estimation of transactions from stock data, estimates for valuation and other changes should be derived first.

- Recording basis:
  - Recording is done on an accrual basis generally.
  - Exports: compilers use direct reports from major export companies (superior to customs data for timing of change of ownership).
  - Items obtained solely from ITRS are cash-based; some services (not travel receipts) and transfers are cash-based.
  - Data from the MFDP’s CFU are reported on a cash basis, including debt and income data relating to government.
  - Recommendation: Develop alternative data sources to the ITRS to change items from cash to accrual accounting. The MFDP should compile and report data from the CFU on an accrual basis.

- Grossing/netting:
  - Grossing and netting procedures broadly follow international guidelines.
  - Current account transactions are generally recorded on a gross basis; financial account transactions are recorded on a net basis, separately for individual asset and liability components.
  - Deviations possible where ITRS data are used due to netting of settlements by transactors (including exchange bureaus).
  - Recommendation: Develop additional data sources on services and transfers.

### 3. Accuracy and reliability

#### 3.1 Source data

- Composition of data sources:
  - Customs data (obtained via CSO), administrative data, the ITRS, selected surveys, and direct reporting by government ministries, agencies, and public and private enterprises.
- Coverage:
  - Data on almost all items in the balance of payments statistics are available, except unrecorded trade.
  - Sources provide broad but not fully sufficient coverage.
- Customs data access and processing:
  - BoB does not have direct access to customs department data; trade data are obtained from the CSO after some data processing.
  - CSO does not provide information on processing, so adjustments cannot be confirmed.
  - Export data mostly obtained directly from exporters and considered more accurate; these export data differ from CSO export data.
  - Lack of access to customs data may reduce accuracy of import and export estimates.
  - No data sources currently for unrecorded trade.

- Travel receipts:
  - No longer available from the Botswana Tourism Authority (although source data still collected).
  - Until 2002, Botswana Tourism Authority provided survey-based estimates of average spending per visitor per day multiplied by immigration data to estimate travel credits.
  - Data obtained in 2002 have been inflated to obtain current estimates.
- Administrative data:
  - Cover pension and insurance companies, medical and educational travel, and various aspects of government transactions.
  - Generally available on request; vary in timeliness, accuracy, and classification but overall considered adequate.

- ITRS details and limitations:
  - Used as the main source for some services and transfer items in the current account.
  - Relies on reporting by all licensed banks and Western Union, but not other foreign exchange dealers.
  - Banks and Western Union report aggregated transaction data for all transactions up to the threshold of 10,000 pula and itemized transactions above, including purpose, transactor, country, and date.
  - BoB compilers consider classification reliability in ITRS reports poor (banks identify purpose for receipts without reference to beneficiary).
  - Coverage is poor since many relevant transactions “slip through” the system.
  - Aggregates from the ITRS are regularly lower than those obtained from other sources.
  - Exchange bureaus are excluded from reporting requirements (assumed to obtain foreign exchange from commercial banks) leading to only net cash requirements being captured when reported by the banking system.
  - ITRS omits credit card transactions.
  - Given these multiple weaknesses, the value of data obtained from the ITRS is doubtful.
  - Recommendation: The BoB should identify data sources for unrecorded trade, including shuttle trade and smuggling; estimates may exist in police reports or other studies. It also should develop alternative data sources to cover those service items where the ITRS is the only source of information. The Botswana Tourism Authority should process data from its travel surveys.

- Surveys:
  - Main survey: annual investment and international investment position survey.
  - A quarterly survey covers the same data from a smaller sample; results are not yet published.
  - Survey sample derived from a record of transactors of the ITRS since no data from the official Business Register are used.
  - A business census is being carried out, expected to generate improved information on formal sector enterprises.
  - No established procedures for adjustments for nonresponses.
  - Survey is well-planned with reasonable sample frames.
  - Response rates about 60 percent, improving over time.
  - No surveys of individuals.
  - BoB’s investment survey data are available around September each year (nine months after the reporting period); delay mostly due to slow private sector responses.
  - Quarterly survey data become available after two to three months due to smaller company sample.

- Timeliness of source data:
  - Past substantial delay in obtaining trade data from CSO (at one point trade data became available only 18 months after the reference period). This has improved to monthly data typically available within a month after the end of the reporting period.
  - CSO claims and BoB compilers believe this improvement will be permanent.
  - Government transaction data (including government debt, income, and SACU) obtained from MFDP:
    - Recently had time lag of six to nine months, improved to one to two months.
  - Other administrative data from ministries often received only when requested and typically with substantial delays.
  - Recommendation: Improve cooperation among the MFDP, CSO, and BoB to ensure timely compilation and exchange of data. The BoB should work toward improved survey response rates and more timely returns by survey respondents.

#### 3.2 Assessment of source data

- Current assessment practice:
  - No formal methods for assessing source data.
  - Informal plausibility checks are used and are reasonably effective given the economy’s small size and that most companies and larger government transactions are known to compilers.
  - Unusual data, if identified, are often investigated, but checks are normally carried out using intermediate results rather than source data when managers review data.
  - Compilers and managers are aware of ITRS weaknesses in coverage and classification.

- Investment survey data use and limitations:
  - Investment survey data are used for compiling balance of payments statistics and the international investment position.
  - Transactions data are reconciled against reported stock positions and valuation and other changes.
  - No information available about sampling and nonsampling errors.
  - Revisions of data are not used to assess data sources; revisions typically caused by data becoming available after preliminary releases. Revisions could be used to assess reliability of preliminary data.

- Recommendation: The BoB should carry out more formal source data assessments. Priority actions should include a periodic review of sampling errors of the investment survey and a formal review of the accuracy of data obtained from administrative sources.

*Source: _cr07139 - 2.         Methodological         soundness*

### 3.3       Statistical       techniques

### _cr07139 - 3.3       Statistical       techniques

### 3.3.1 Data compilation and missing data
- Findings:
  - Computerized data entry and processing, as well as data checks, are employed to minimize human error in data entry, coding, editing, and tabulation.
  - Two computer programs used in compilation, Cheetah and Access, are set up to provide checks on data entry and processing.
  - Adjustments to unit records are made only after the reporting unit receives data queries or when clearly warranted on the basis of sound information.
  - Ancillary information is used informally (compilers' knowledge of economic events) to query source and intermediate data; secondary data are used for data checks.
  - Ancillary data are not used presently to derive estimates for missing data.
  - Imputation and adjustments for nonresponse are limited; no standard procedures are in place for missing observations.
  - In the case of missing survey responses, it is assumed that no transactions took place and stocks remained constant.
  - No adjustments for undercoverage are made, and no grossing-up factors are used.
  - Benchmarks and supplementary information are used appropriately, although important benchmarks are now outdated.
  - Uncoded ITRS transactions cannot be allocated.
  - Some discrepancies between quarterly and annual data have not been reconciled; quarterly data are not being published.

- Recommendation:
  - The BOB should develop standard techniques for estimating missing data (e.g., unrecorded trade) and accounting for missing observation and sample errors.
  - The discrepancies between annual and quarterly data should be investigated and the results used for improving estimation and compilation procedures.

### 3.3.2 Other statistical procedures (valuation, travel, partner data, stocks)
- Findings:
  - Trade data from the CSO are received at c.i.f. and adjusted using a constant factor assuming 8.5 percent of the c.i.f. value of goods constitutes the costs of freight and 6.26 percent the costs of insurance services.
  - The f.o.b./c.i.f. adjustment ratio was developed in the early 1990s; there is no institutional memory on how it was derived.
  - The ratio appears implausible given most imports originate in South Africa; for neighboring countries the f.o.b. value should equal the c.i.f. value in principle.
  - The ratio likely derives from inappropriate definitions, perhaps including transport costs that should be part of f.o.b. value (transport to the border in the exporting country).
  - A revised adjustment ratio could have a substantial impact on the trade balance.
  - Customs data on importers’ valuation of goods, transportation, and insurance may not provide valuations compatible with f.o.b. and c.i.f. definitions because importer reporting may include transport/insurance within the exporting or importing country.
  - A model was used to estimate travel credits using immigration data and survey benchmark data on average per day spending; Botswana Tourism Authority stopped processing these data, last available for 2002.
  - As an emergency measure, the BoB inflated the 2002 figures using the GDP growth rate as a proxy.
  - Partner country data are not regularly used; South Africa has in several instances not been able to provide appropriate data.
  - Reconciliation with U.S. bilateral trade data (AGOA context) revealed large discrepancies largely explained by different methods of identifying partner countries.
  - No estimates are made for unrecorded trade.
  - No adjustments for seasonality are required for annual dissemination; quarterly compilation for testing does not employ seasonality adjustments.
  - Procedures for estimating transactions from stock data are not adequate — they do not make allowances for valuation and other changes, mainly affecting portfolio assets of the resident private sector.

- Recommendations:
  - The BoB regularly should review the benchmarks, particularly for valuation adjustments to imports.
  - Estimates for unrecorded trade should be developed.
  - Alternative sources for travel data should be identified urgently; possible sources include bookings and turnover of travel agencies, lodges, and hotels.
  - Standard statistical techniques should be used to derive estimates for transactions and valuation and other changes from stock data where necessary, unless transactions data can be obtained.

### 3.4 Assessment and validation of intermediate data and outputs
- 3.4.1 Intermediate validation:
  - Intermediate results are cross-checked with related datasets and other data sources where applicable.
  - For some items no alternative dataset exists and validation cannot be conducted easily.
  - Information on high-value transactions from news media or regulatory sources is regularly used to verify intermediate results.

- 3.4.2 Assessment of discrepancies:
  - Related data series (e.g., financial account vs. stock data) are checked against each other; time series are reviewed and unusual developments are investigated.
  - Related domestic economy data are used to identify and address discrepancies and verify plausibility.

- 3.4.3 Investigation of statistical discrepancies:
  - Errors and omissions are monitored in size and direction to detect patterns; used as indicators to flag missing or overstated transactions.
  - No regular reconciliation of bilateral data with major trading partners because partner countries often cannot provide appropriate data; Botswana’s small size limits bilateral identification by larger partners.
  - Past reconciliation efforts found differences in concepts and compilation methods (e.g., valuation methods) and led to identification of compilation errors in Botswana and partner countries.

### 3.5 Revision studies
- Findings:
  - Revision cycle is determined by source data availability; all balance of payments data are revised annually around September when administrative data and survey results become available.
  - No formal or systematic revision studies are undertaken; revisions are informally reviewed without formal documentation.
  - Compilers noted that preliminary data on reinvested earnings had been revised up for some time; preliminary estimate was adjusted this year to account for expected revision.

- Recommendation:
  - The BoB should formalize its revision studies by systematically reviewing and analyzing revisions and documenting the results on a regular basis.

### 4 Serviceability — periodicity, timeliness, consistency, revisions, accessibility (selected findings and recommendations)
- Periodicity and timeliness:
  - Balance of payments dissemination follows GDDS recommendations; data compiled annually and disseminated in the Annual Report and on the website; also published in the monthly BFS.
  - Quarterly compilation started in 2006 for testing; these data are not disseminated pending resolution of consistency problems.
  - Initial statistics are disseminated in the Annual Economic Report as part of the budget speech in early February covering the preceding calendar year.
  - Preliminary data published in the BFS in March and the Annual Report in the second quarter; final data around September.
  - Until recently, import source data delays delayed release of revised (final) data.

- Consistency:
  - Concepts, definitions, and classifications for monthly, quarterly, and annual statistics are the same; annual statistics are in principle the sum of quarterly statistics though discrepancies exist.
  - Seasonality is not accounted for when allocating annual data to quarters.
  - Over the long run, the net errors and omissions item has been at an acceptable level (well below +/- 5 percent of trade volume) and without a discernable pattern.
  - Financial account data are reconciled with changes in the international investment position; reconciliation details (transactions and changes due to exchange rates, prices, and other changes) are not disseminated.

- Recommendations on consistency and reconciliation:
  - The BoB should publish a table detailing transactions and changes due to exchange rates, prices, and other changes, demonstrating reconciliation between the financial account and the international investment position.
  - The CSO should adopt appropriate valuation methods for imports and appropriate classification for SACU-related flows; remaining discrepancies, including on exports, should be investigated and reconciled.

- Revision policy and practice:
  - No formal revision schedule is published; revisions follow a reasonably stable cycle determined by data availability but the cycle and reasons are not explained publicly.
  - Past delays occurred when CSO trade data lagged 18 months, delaying final revisions by almost a year beyond the normal revision cycle.
  - Preliminary and revised datasets are clearly identified, but entire datasets are marked as preliminary or revised (specific revised items are not identified).
  - Reviews or studies of revisions are not made public though compilers have information on size and direction of revisions.

- Recommendations on revisions and dissemination:
  - The BoB should publish a revision schedule explaining timing and reasons for revisions and explain any delays or unscheduled revisions.
  - The BoB should publish information about revisions, including size, direction, reasons for, and past experience with revisions.
  - The BoB should consider publishing data referred to in the budget speech on its website.
  - The BoB should publish a schedule providing details of data release for preliminary and final data.

- Accessibility and metadata:
  - Balance of payments statistics are published according to BPM5 components with sufficient time-series data; commentaries are available in BFS, Annual Report, and website.
  - Preliminary data are first released through the budget speech, then in printed Annual Report, BFS, and website; BFS is widely available and website data are downloadable.
  - GDDS metadata provide information on data sources and methods; metadata were updated in May 2006.
  - Metadata are not available from a domestic source; BoB staff refer users to the IMF website for GDDS metadata; BoB publications do not refer users to GDDS metadata.

- Recommendations on metadata and user guidance:
  - The BoB should inform data users about the existence of metadata; the BFS and Annual Report should mention GDDS metadata and provide information about access, and the BoB website should provide a link.
  - A printed version of the metadata should be made available to users who do not have Internet access.
  - The BoB should inform the public that further information and explanations about sources and methods are available from compilers.

*Source: _cr07139 - 3.3       Statistical       techniques*

### 5.3 Assistance to users

### 5.3 Assistance to users

### Contact points and responsiveness
- The Bank of Botswana (BoB) publishes the names and contact information for relevant staff who can be contacted by telephone and e-mail in the BFS and on its website.
- The BoB commits to responding to all requests “promptly.”
- The RD’s strategic planning exercise identified help to data users as a key performance indicator.
- SISU will be assessed internally on the timeliness and usefulness of its responses to queries.
- Recommendation from the source: The BoB could further enhance its support to data users by committing to a specific timeframe in which queries will receive a response.

### Catalogs of publications, documents, and charging information
- The BoB website and all its publications provide information on publications, the ordering process, contact details, and costs.
- The BFS is free to users in Botswana and is widely distributed.

### Data Quality Assessment Framework — indicator for assistance to users
- In Table 6 (Botswana: Data Quality Assessment Framework (July 2003): Summary of Results for Balance of Payments Statistics), element 5.3 Assistance to users is assessed as: X (Practice Observed).

### Related GDDS guidance and plans for improvement (as cited)
- The GDDS recommends dissemination of documentation on methodology and sources used in preparing statistics, and dissemination of component detail, reconciliations with related data, and statistical frameworks that support statistical cross-checks and provide assurance of reasonableness.
- The GDDS recommends dissemination of the terms and conditions under which official statistics are produced, identification of internal government access to data before release, identification of ministerial commentary on the occasion of statistical releases, and provision of information about revision and advance notice of major changes in methodology.
- The GDDS recommends dissemination of advance release calendars and simultaneous release to all interested parties.
- The GDDS recommends that plans for improvement be developed for all areas with shortcomings, that these plans be disseminated, and that needs for assistance be identified in the metadata.

*Source: _cr07139 - 5.3 Assistance to users*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2007/_cr07139.pdf_