## Mongolia — Data Quality Assessment Framework July 2003 (excerpt) (_cr08123) ## Source details **Canonical URL:** [Mongolia — Data Quality Assessment Framework July 2003 (excerpt) (_cr08123)](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr08123.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr08123.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr08123.pdf.json) --- ### Overall assessment — main conclusions - Mongolia posted its GDDS metadata on the DSBB on August 7, 2000. - Meets many GDDS recommendations for coverage, periodicity, and timeliness; major exceptions include: - incomplete coverage of the international investment position; - nonavailability of a primary commodity, agricultural, or other relevant production index; - nonavailability of the producer price index; - nonavailability of wages and earnings; - noncoverage of non-guaranteed private external debt; - nondissemination of data on central government debt and government-guaranteed debt; - nondissemination of public and publicly guaranteed external debt and debt service schedule; - nondissemination of gross official reserves and reserve-related liabilities. - Some data categories meet SDDS requirements; SDDS coverage requirements are not met for: - wages and earnings; - producer price index; - international investment position; - central government and external debt statistics. - SDDS periodicity and timeliness requirements are not met for: - national accounts; - interest rates; - the stock market share price index; - international reserves and foreign currency liquidity. - 2003 DQAF reassessment conclusions: - important progress in adopting internationally accepted statistical standards despite significant resource constraints, rapid staff turnover, and limited absorptive capacity; - substantial technical assistance and staff training provided to NSO, MOF, and BOM by numerous donors, including the IMF; - statistical agencies show strong commitment to upgrading statistics and to the authorities’ stated objective of subscribing to the SDDS over the medium term; - macroeconomic statistics generally adequate for effective surveillance but primarily oriented to public and international needs rather than private economic agents and the public. ### Prerequisites of quality — institutional assurances (selected by agency) - National Statistical Office (NSO) - Legal framework: Law on Statistics (1997, amended 2004) defines NSO authority; confidentiality safeguarded. - Resources: staff and physical facilities insufficient for expanding national accounts and price statistics work. - Professionalism: independent agency; chairman appointed to fixed six-year term. - Transparency: Law on Statistics available on NSO website in Mongolian; no internal pre-release access; no routine advance notice of methodological changes. - Ministry of Finance (MOF) - Legal/institutional: MOF can require information and mandate compliance; Financing, Accounting, and Reporting Division and Debt Management Division compile central and general government operations and debt. - Resources: current GFS work program completed with existing resources; adoption of GFSM 2001 would require additional resources. - Transparency: comprehensive metadata for GFS not currently disseminated; MOF does not indicate a contact point for fiscal statistics. - Bank of Mongolia (BOM) - Legal framework: Law of Mongolia on Central Bank provides responsibility for monetary and BOP statistics; confidentiality ensured. - Resources: adequate for current work program but not for important developmental projects; computing facilities not adequate for large-scale BOP processing. - Coordination: formal arrangements for data sharing with other agencies; preannounced schedule for data release recently posted. - Professionalism & transparency: adequate procedures focusing on data quality; no advance notice on major methodological changes. ### Methodological soundness — cross-cutting findings - Concepts and definitions: generally conform to internationally accepted standards (1993 SNA, MFSM, BPM5). - GFSM 2001: no formal decision taken on adopting a migration path to GFSM 2001. - Scope deficiencies affecting 1993 SNA and national CPI: - noncoverage of several accounts/tables necessary for 1993 SNA; - lack of a single CPI with national coverage; - nonavailability of central government debt data. - Classification/sectorization: broadly follows international guidelines with specific misclassifications (e.g., certain accounting data in monetary statistics). - Basis for recording: broadly appropriate; recording practices vary by dataset (cash basis for GFS, accrual where feasible for others). ### Accuracy and reliability — key dataset issues - National Accounts - Source data: annual enterprise survey, continuous HIES, administrative sources; enterprise survey sample over 14,000 (2007); business register ~40,000 listings. - Volume estimation: techniques relatively weak; GDP volumes based primarily on single indicator methods; double deflation not used. - Revision practice: preliminary annual GDP estimates disseminated three months after year end; revised estimates six months after end of period; revision studies generally not conducted; national accounts revision cycle inadequate (data revised only once). - Statistical discrepancy reduced to about one percent following 2005 rebasing. - Consumer Price Index (CPI) - Coverage: NSO does not compile a national CPI; geographic coverage includes urban and rural but national weights not estimated; CPI rebased to 2005 (price reference period December 2005). - Source data issues: exclusion of very small outlets; no imputations for owner-occupied dwellings; temporary missing prices carried forward; no routine quality adjustments. - Timeliness: monthly index disseminated one week after reference month (meets GDDS recommendation). - Revision policy: CPI series final when first released and are not revised. - Government Finance Statistics (GFS) - Concepts: generally follow GFSM 1986; institutional scope excludes extrabudgetary units; central government debt compiled but not disseminated. - Basis for recording: transactions recorded on a cash basis consistent with GFSM 1986. - Major classification issue: banking system net credit calculated as a residual; change in cash balances not separately identified. - Revision practice: virtually no revisions; monthly data preliminary when first disseminated and not replaced by final data. - Monetary statistics (Monetary Survey — BOM) - Coverage: BOM and resident commercial banks; excludes savings and credit unions (estimated deposits of savings and credit unions are 8 to 10 percent of commercial banks’ deposits). - Recording: market prices, accrual accounting, loans at book value; financial derivatives with nonresident sector treated net in central bank survey (exception to MFSM). - Periodicity/timeliness: monthly; timeliness three weeks after reference month (meets GDDS). - Consistency: interbank position discrepancies between BOM and other depository corporations; differences with GFS on bank financing of central government can be large. - Balance of payments (BPM5-based) - Source data: customs, ITRS, direct reporting by enterprises, special surveys; enterprise survey (460 enterprises) not fully incorporated due to nonresponse and register issues. - Coverage gaps: informal trade, remittances outside banking system, transactions via foreign exchange bureaus; large quarterly net errors and omissions indicate timing problems. - Periodicity/timeliness: quarterly, usually within six weeks after reference quarter (better than GDDS). ### Serviceability — periodicity, timeliness, consistency, and revisions - Periodicity and timeliness: generally exceed GDDS recommendations; some datasets meet SDDS. - Consistency: - Dataset-internal consistency generally adequate. - Important differences in financing data between monetary and fiscal accounts not reconciled regularly. - Discrepancies in interbank positions between central bank and other depository corporations. - Revision policy and practice: - Deficiencies across datasets: lack of dissemination of existing policies to the public; absence of regular and transparent revision cycles; national accounts revision cycle length inappropriate. - Specific: MOF monthly data often presented cumulatively; preliminary monthly data not replaced by final data; revisions are infrequent for GFS. ### Accessibility — data, metadata, and user assistance - Data accessibility: - Nonconfidential data generally available to all users at the same time. - No advance release calendar for national accounts, CPI, and government finance statistics (BOM has begun posting a preannounced schedule). - NSO: detailed data on www.nso.mn, Statistical Yearbook, monthly bulletins; no preannounced release calendar. - MOF: publishes GDDS metadata on its website; comprehensive GFS metadata not disseminated elsewhere. - Metadata accessibility: - Metadata for CPI and monetary statistics posted on IMF DSBB (GDDS participation); NSO Handbook on Sources and Methods exists. - No alternative metadata with levels of detail adapted to public needs for some datasets. - Assistance to users: - BOM provides contact points; NSO has a Dissemination Division; MOF does not indicate a contact point for fiscal statistics and lacks a publications catalog. ### Selected DQAF ratings (Table 1 excerpts for datasets) - Legend: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable. - Selected ratings (exact as presented): - 0.1 Legal and institutional environment: National Accounts O; CPI O; Government Finance Statistics O; Monetary Statistics O; Balance of Payments Statistics O. - 0.2 Resources: National Accounts LNO; CPI LNO; Government Finance Statistics LO; Monetary Statistics LNO; Balance of Payments Statistics LNO. - 1.1 Professionalism: National Accounts O; CPI O; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics O. - 1.2 Transparency: National Accounts LO; CPI LO; Government Finance Statistics LO; Monetary Statistics LO; Balance of Payments Statistics LO. - 2.1 Concepts and definitions: National Accounts O; CPI O; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics O. - 2.2 Scope: National Accounts LNO; CPI LO; Government Finance Statistics LNO; Monetary Statistics LO; Balance of Payments Statistics O. - 3.1 Source data: National Accounts O; CPI LO; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics LO. - 3.5 Revision studies: National Accounts LNO; CPI O; Government Finance Statistics LNO; Monetary Statistics LNO; Balance of Payments Statistics LO. - 4.1 Periodicity and timeliness: National Accounts O; CPI O; Government Finance Statistics O; Monetary Statistics O; Balance of Payments Statistics O. - 5.1 Data accessibility: National Accounts LO; CPI LO; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics O. - 5.2 Metadata accessibility: National Accounts O; CPI LO; Government Finance Statistics LO; Monetary Statistics LO; Balance of Payments Statistics O. - 5.3 Assistance to users: National Accounts O; CPI O; Government Finance Statistics LO; Monetary Statistics LO; Balance of Payments Statistics LO. ### Staff recommendations (selected, dataset-targeted and cross-cutting) - Cross-cutting recommendations - Implement an electronic (online) reporting system for banks and other financial institutions. - Introduce a database-driven compilation system for monetary and balance of payments statistics. - Establish and disseminate revision policies and carry out revision studies across datasets. - Develop and implement a policy to inform users of upcoming changes in definitions and compilation processes and their effects. - Harmonize monetary and government finance statistics data on bank credit to the government on a regular cycle. - Reconcile differences between government finance statistics and balance of payments statistics. - Monetary Statistics - Develop a Depository Corporations Survey to include savings and credit unions and allocate additional resources. - Harmonize interbank positions within monetary statistics. - Adopt the Standardized Report Forms (SRFs) for reporting monetary data internally and to the IMF. - Balance of Payments Statistics - Develop a computing system with on-line reporting and a database for BOP processing. - Use enterprise survey results, after follow-up and appropriate adjustments for nonresponse, to improve BOP statistics and complete the international investment position compilation. - Investigate and resolve methodological issues: free trade zones, short-term construction workers, reinvested earnings, bond issues, share market purchases by nonresidents, intercompany debt, financial derivatives. ### Agency responses and planned actions (selected) - National Accounts / NSO - SUT compiled for 2005; plans to revise and extend series back to 1990/1980 resources permitting. - Plans to complete and disseminate experimental quarterly GDP and additional accounts during 2008. - Proposal: request IMF technical assistance on rules for validating accuracy and revision policy. - CPI / NSO - Plans to finish preparations for a national CPI within the fourth quarter of this year and to make it known to the public from January 2008. - Planned actions: develop CPI methodology, revise weights for 21 aimags and Ulaanbaatar using 2005 HIES, develop data processing instructions and software, compile experimental national CPI. - Response on owner-occupied dwellings: NSO uses actual rent of owner-occupied dwellings in consumer basket and did not accept imputation recommendation. - Requests for IMF support: technical assistance on revision rules, CPI software, staff training. - Ministry of Finance (MOF) - Working with IMF country office to improve accuracy and comprehensiveness; developing consolidated catalogue of publications on www.mof.pmis.gov.mn. - Framework to compile government statistics on accrual basis has started; request IMF advisor/training on GFSM 2001. - Plan to reflect extrabudgetary units on national and consolidated budgets. - Bank of Mongolia (BOM) - Staffing: new economist for data quality established December 2007; plan to establish economist for other financial institutions in 2008. - Acquire/create software for collecting and compiling monetary statistics. - Metadata: BOM will prepare metadata for public and post on BOM website and DSBB. - Expand scope: BOM will receive consolidated data on savings and credit cooperatives from Financial Regulatory Commission when available. - Reclassifications implemented: excluded Government Lending Funds from Other Items (net) and reclassified accrued interest receivable/payable in 2008 using supplementary bank data. - Change in recording: financial derivatives with nonresident sector to be shown gross starting January 1, 2008. - Revisions: BOM will conduct revision studies for each revision and prepare revision policy paper to post on BOM website. - BOP actions: staff recruited, remittance surveys conducted (first half 2007), enterprise survey results used to identify omitted reinvested earnings and other items; reserve transactions included without revaluation from 3rd quarter 2007. ### User survey (Appendix III) — selected results (exact values) - Number of completed questionnaires: 36. - Coverage satisfaction: - 80 percent of the users of the monetary statistics were satisfied with the coverage. - 50 percent of the users of the national accounts expressed satisfaction with the coverage. - Access channels: - Only 29 percent of the data were accessed through the agencies’ official websites. - Two-thirds of respondents noted that they could easily access the official statistics. - 86 percent of users of monetary statistics noted that they could easily access the statistics. - 57 percent of the users of the national accounts noted they could easily access the statistics. - Metadata accessibility: - 67 percent of users expressed general difficulty in accessing the metadata. - 70 percent noted that the metadata lacked sufficient clarity and level of detail to be useful. - Overall dataset ratings (1 poor — 5 excellent): - National accounts: 2.9 - Prices: 3.2 - GFS: 3.3 - Monetary: 3.6 - BOP: 3.3 *Source: Mongolia — Data Quality Assessment Framework July 2003 — Summary Results (excerpt), _cr08123.* ### 1. Data Quality Assessment Framework July 2003—Summary Results...................................8 ### 1. Data Quality Assessment Framework July 2003—Summary Results ### I. Overall assessment — main conclusions - Mongolia posted its GDDS metadata on the DSBB on August 7, 2000. - Mongolia meets many GDDS recommendations for coverage, periodicity, and timeliness; major exceptions include: - incomplete coverage of the international investment position; - nonavailability of a primary commodity, agricultural, or other relevant production index; - nonavailability of the producer price index; - nonavailability of wages and earnings; - noncoverage of non-guaranteed private external debt; - nondissemination of data on central government debt and government-guaranteed debt; - nondissemination of public and publicly guaranteed external debt and debt service schedule; - nondissemination of gross official reserves and reserve-related liabilities. - Some data categories meet SDDS requirements; SDDS coverage requirements are not met for: - wages and earnings; - producer price index; - international investment position; - central government and external debt statistics. - SDDS periodicity and timeliness requirements are not met for: - national accounts; - interest rates; - the stock market share price index; - international reserves and foreign currency liquidity. - The 2003 DQAF reassessment concludes: - important progress in adopting internationally accepted statistical standards despite significant resource constraints, rapid staff turnover, and limited absorptive capacity; - substantial technical assistance and staff training have been provided to NSO, MOF, and BOM by numerous donors, including the IMF; - statistical agencies show strong commitment to upgrading statistics and to the authorities’ stated objective of subscribing to the SDDS over the medium term; - macroeconomic statistics are generally adequate for effective surveillance but are primarily oriented to public and international needs rather than private economic agents and the public. ### I. Prerequisites of quality and assurances of integrity (by agency) - National Statistical Office (NSO) - Legal framework: Law on Statistics (1997, amended 2004) defines NSO authority for national accounts and price statistics and coordination role; legal provisions safeguard confidentiality and authorize data collection and penalties for nonresponse. - Resources: staff and physical facilities insufficient for expanding national accounts and price statistics work. - Relevance: advisory groups and bilateral meetings promote relevance; private-sector consultations not systematic. - Other quality management: Methodology and Research Department exists; mission statement and medium-term program stress quality. - Professionalism: independent agency; chairman appointed to fixed six-year term; statistical choices influenced solely by statistical considerations. - Transparency: Law on Statistics available on NSO website in Mongolian; no internal pre-release access; no routine advance notice of methodological changes. - Ethical standards: staff subject to internal rules and public service regulations; required oath of secrecy. - Ministry of Finance (MOF) - Legal and institutional environment supports fiscal statistical responsibilities; MOF can require information and mandate compliance. - Resources: current GFS work program completed with existing resources; adoption of GFSM 2001 methodology would require additional resources. - Priority: needs of official users and international organizations met; general public given relatively low priority. - Data quality and transparency: data quality integral to MOF operations; statistical policy and practices generally transparent; MOF does not indicate a contact point for fiscal statistics; comprehensive metadata for GFS not currently disseminated. - Professionalism and ethical standards: laws and culture promote professionalism; staff conduct guided by civil service rules and regulations. - Bank of Mongolia (BOM) - Legal framework provides clear responsibility for monetary statistics and implicitly for balance of payments statistics; legal provisions ensure compliance and confidentiality. - Resources: adequate for current work program but not for important developmental projects. - Coordination: formal arrangements for data sharing and coordination with other agencies. - Relevance and user consultation: mechanisms to monitor balance of payments relevance are sufficient; regular consultation on monetary statistics exists but feedback modest. - Quality and transparency: adequate procedures focusing on data quality; generally transparent practices but no advance notice on major methodological changes. - Professionalism and ethical standards: staff conduct guided by appropriate regulations and ethical standards. ### II. Methodological soundness and scope - Concepts and definitions: generally methodologically sound and conform to internationally accepted standards. - GFSM 2001: no formal decision taken on adopting a migration path to GFSM 2001. - Scope deficiencies affecting implementation of 1993 SNA and single national CPI: - noncoverage of several accounts and tables necessary for 1993 SNA; - lack of a single CPI with national coverage; - nonavailability of central government debt data. - Classification/sectorization: follows international guidelines except: - banking system net credit in GFS is calculated as a residual; - certain key accounting data in monetary statistics are misclassified. - Basis for recording: broadly appropriate and conforms with internationally accepted methodologies. ### III. Accuracy and reliability — key issues - Source data deficiencies: - exclusion of small retail outlets from price collection and implicit rent for owner-occupants in CPI; - absence of extrabudgetary unit data for GFS compilation; - inadequacies in enterprise survey for various balance of payments items. - Assessment and validation: suitable processes used, but tight compilation schedule for national accounts limits comprehensiveness. - Statistical techniques: - national accounts: volume estimation techniques relatively weak; - CPI: appropriate quality adjustment techniques not applied; - balance of payments: coverage of important components lacking; inadequate techniques to adjust for survey nonresponse. - Revision studies and analyses: generally not conducted for national accounts, GFS, and monetary statistics. ### IV. Serviceability — periodicity, timeliness, consistency, and revisions - Periodicity and timeliness: generally exceed GDDS recommendations and in some cases meet SDDS requirements. - Consistency: - dataset-internal consistency generally adequate; - important differences in financing data between monetary and fiscal accounts not reconciled regularly; - discrepancies in interbank positions between central bank and other depository corporations. - Revision policy and practice: deficiencies across datasets: - lack of dissemination of existing policies to the public; - absence of regular and transparent revision cycles; - national accounts revision cycle length is inappropriate. ### V. Accessibility — data, metadata, and user assistance - Data accessibility: nonconfidential data generally available to all users at the same time; no advance release calendar for national accounts, CPI, and government finance statistics. - Metadata accessibility: MOF publishes GDDS metadata on its website; comprehensive GFS metadata not currently disseminated. - Assistance to users: generally adequate; MOF does not indicate a contact point for fiscal statistics; neither MOF nor BOM provides a catalog of their publications. ### VI. DQAF July 2003 — Summary Results (Table 1 key findings) - Key to symbols: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable. - Selected ratings by dataset and dimension (as presented in Table 1): - 0.1 Legal and institutional environment: National Accounts O; CPI O; Government Finance Statistics O; Monetary Statistics O; Balance of Payments Statistics O. - 0.2 Resources: National Accounts LNO; CPI LNO; Government Finance Statistics LO; Monetary Statistics LNO; Balance of Payments Statistics LNO. - 0.3 Relevance and 0.4 Other quality management: National Accounts LO / O; CPI O / O; Government Finance Statistics LO / LO; Monetary Statistics O / O; Balance of Payments Statistics LO / LO. - 1.1 Professionalism: National Accounts O; CPI O; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics O. - 1.2 Transparency: National Accounts LO; CPI LO; Government Finance Statistics LO; Monetary Statistics LO; Balance of Payments Statistics LO. - 1.3 Ethical standards: National Accounts O; CPI O; Government Finance Statistics O; Monetary Statistics O; Balance of Payments Statistics O. - 2.1 Concepts and definitions: National Accounts O; CPI O; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics O. - 2.2 Scope: National Accounts LNO; CPI LO; Government Finance Statistics LNO; Monetary Statistics LO; Balance of Payments Statistics O. - 2.3 Classification/sectorization: National Accounts O; CPI O; Government Finance Statistics LO; Monetary Statistics LO; Balance of Payments Statistics O. - 2.4 Basis for recording: National Accounts LO; CPI O; Government Finance Statistics O; Monetary Statistics LO; Balance of Payments Statistics LO. - 3.1 Source data: National Accounts O; CPI LO; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics LO. - 3.2 Assessment of source data: National Accounts LO; CPI LO; Government Finance Statistics O; Monetary Statistics O; Balance of Payments Statistics O. - 3.3 Statistical techniques: National Accounts LO; CPI LO; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics LO. - 3.4 Assessment and validation of intermediate data and outputs: National Accounts LO; CPI O; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics LO. - 3.5 Revision studies: National Accounts LNO; CPI O; Government Finance Statistics LNO; Monetary Statistics LNO; Balance of Payments Statistics LO. - 4.1 Periodicity and timeliness: National Accounts O; CPI O; Government Finance Statistics O; Monetary Statistics O; Balance of Payments Statistics O. - 4.2 Consistency: National Accounts O; CPI LO; Government Finance Statistics LO; Monetary Statistics LO; Balance of Payments Statistics LO. - 4.3 Revision policy and practice: National Accounts LNO; CPI LO; Government Finance Statistics LO; Monetary Statistics LO; Balance of Payments Statistics LO. - 5.1 Data accessibility: National Accounts LO; CPI LO; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics O. - 5.2 Metadata accessibility: National Accounts O; CPI LO; Government Finance Statistics LO; Monetary Statistics LO; Balance of Payments Statistics O. - 5.3 Assistance to users: National Accounts O; CPI O; Government Finance Statistics LO; Monetary Statistics LO; Balance of Payments Statistics LO. *Source: Mongolia — Data Quality Assessment Framework July 2003 — Summary Results (excerpt).* ### 0. Prerequisites of quality ### 0. Prerequisites of quality ### Assurances of integrity — Ministry of Finance (central and general government fiscal statistics) - Legal and institutional environment - Responsibility for collecting, processing, and disseminating fiscal statistics is clearly assigned to the Ministry of Finance by the Budget Law and the Public Sector Management and Finance Law. - The Law on Statistics explicitly refers to wide dissemination as one of the principles of statistical activities; Article 22 states that the dissemination of information classified by the appropriate authorities as confidential is illegal. - The Financing, Accounting, and Reporting Division and the Debt Management Division of the MOF’s Treasury Department compile statistics on central and general government operations, and central government debt. - Article 9 of the Law on Statistics protects confidentiality of data reported by individual persons and entities; penalties are applied to individuals who infringe the law. - Resources - Additional staff will be required to perform new tasks, such as adoption of the methodology of the GFSM 2001, or to further improve the quality of the statistics currently compiled. - A high priority is staff training in international methodologies. - Sufficient resources are currently allocated to computing technology. - A comprehensive performance evaluation system has been introduced for civil servants. - Relevance - Current fiscal statistics are mainly geared towards compliance with existing legislation. - The needs of official users and international organizations are met, but the needs of the general public are not given high priority. - The subannual and annual fiscal statistics compiled are an integral part of the budget process and are used to assess fiscal policy. - Other quality management - Management recognizes the importance of quality statistics, evidenced by the introduction of the Treasury Single Accounts and the Government Finance Management Information System. - Increased recognition needs to be given to incorporating international best practice, such as GFSM 2001, into the statistical program. - Professionalism - The Law on Statistics states independence as one of the main principles guiding statistical activities. - A culture of professionalism is observed; no outside interference with statistical results is permitted. - Recruitment is competitive and merit-based; workplace processes promote professionalism. - Choice of source data and statistical techniques is based exclusively on data and processing requirements. - Decisions about timing and other aspects of dissemination are based on statistical considerations and the timetable established by current legislation. - Authorities may determine certain specific data are confidential and dissemination may be deemed illegal. - The MOF is entitled to comment on misinterpretation or misuse of statistics. - Transparency - Legislation governing compilation and dissemination is publicly available on the web site of the Ministry of Justice. - Fiscal statistics compiled by the MOF are available to senior officials prior to general dissemination; this internal access is made public. - The MOF is clearly identified as the agency responsible for compiling and releasing fiscal statistics; the MOF is the only data producing agency for these statistics. - No advance notice of major changes in methodology and source data is provided; changes are usually contained in legislation or announced when introduced. - Ethical standards - The Civil Service Law includes provisions on proper behavior of civil servants; these are incorporated into the contract civil servants sign and into the oath taken by civil servants. - Staff are reminded periodically of the ethical standards. ### Assurances of integrity — Bank of Mongolia (monetary and balance of payments statistics) - Legal and institutional environment - The BOM collects, compiles, and disseminates monetary and balance of payments statistics. - The Law of Mongolia on Central Bank invests the BOM with authority to collect source data for monetary and balance of payments statistics, to disseminate information on monetary developments and financial markets, and to publish a monthly bulletin on monetary statistics. - Monetary and balance of payments statistics compilers maintain adequate coordination with other BOM work units; a working group on balance of payments includes data suppliers and BOM staff. - The Law of Mongolia on Central Bank prohibits BOM staff from disclosing financial data collected from banks and other data suppliers. - Resources - Staff resources are adequate only to compile the Monetary Survey based on limited institutional coverage, but not for developmental projects such as a Depository Corporations Survey with broader coverage. - Staff resources for balance of payments statistics are not adequate to implement identified plans for improvement or to capture new developments. - Computing facilities are not adequate for large-scale data processing required for balance of payments statistics or for automated data collection. - Relevance - The BOM monitors the relevance of monetary and balance of payments statistics and publicizes a contact list to encourage feedback. - Relatively few users have provided feedback on monetary statistics, though some changes to the balance of payments publication have been made in response to feedback. - Other quality management - The BOM reviews the quality of data prior to release. - Professionalism - BOM staff maintain a high degree of professionalism. - The Law of Mongolia on Central Bank seeks to establish independence of BOM top management by identifying specific circumstances for discharge of the Governor, First Deputy Governor, or Deputy Governor. - Recruiting and promotion processes are primarily merit-based, taking into account professional and educational qualifications. - Transparency - The BOM’s web site posts the Law of Mongolia on Central Bank, presenting the terms and conditions under which statistics are compiled. - There is no internal governmental access to monetary and balance of payments statistics prior to release. - The BOM’s publications clearly identify monetary and balance of payments statistics as BOM products. - The BOM does not provide users advance notice on major changes in methodology. - Ethical standards - The Law of Mongolia on Central Bank establishes ethical standards for staff behavior. ### Cross-cutting observations from related statistical domains (selected substantive findings) - National Accounts - Concepts and definitions: compiled in accordance with the 1993 SNA. - Scope: does not cover several accounts and tables recommended to implement the 1993 SNA; annual GDP by activity at current and constant prices and expenditure on GDP at current prices are disseminated; sequence of accounts, income accounts, quarterly GDP, and annual supply and use tables are not disseminated. - Basis for recording: market prices used; all transactions and flows, except government transactions, are recorded on an accrual basis; transactions between establishments in the same enterprise are recorded net rather than gross. - Source data: include an annual enterprise survey, a continuous Household Income and Expenditure Survey (HIES), and administrative sources; data are timely. - Assessment of source data: NSO assesses coverage, consistency, nonresponse, and measures sampling and nonsampling errors, but tight compilation schedule limits comprehensiveness. - Statistical techniques: generally sound; international guidelines followed for current price estimates; some techniques for volume estimates are weak. - Revision practice: revision studies and analyses are not routinely conducted. - Periodicity and timeliness: preliminary annual GDP estimates disseminated three months after year end; revised estimates six months after end of period. - Consistency: statistical discrepancy about one percent; consistent series from 2000 with plans to revise back to 1990. - Revision policy: not made known to the public; data are revised only once (six months following the end of the period); revised estimates are not annotated. - Accessibility: data disseminated on NSO web site, Statistical Yearbook of Mongolia, and monthly bulletins; detailed unpublished but nonconfidential data available on request; no preannounced release schedule. - Metadata: brief notes in regular publications; detailed metadata in NSO Handbook on Sources and Methods and on the GDDS web site. - Consumer Price Index (CPI) - Concepts and definitions: broadly in line with international standards; HIES used for weights; current CPI weights based on the 2004 HIES; price reference period is December 2005. - Scope: NSO does not compile a national CPI; geographic coverage includes urban and rural but national weights are not estimated. - Classification: Ulaanbaatar and regional CPI classified according to COICOP; conforms to 1993 SNA and CPI Manual, 2004. - Source data issues: very small outlets excluded from price collection; no imputations for owner-occupied dwellings; weights are not updated for price changes to align with price base period. - Assessment of source data: sampling error analysis for HIES not undertaken; alcohol and tobacco consumption not routinely crosschecked with supply data. - Statistical techniques: temporarily missing and seasonal product prices estimated by carrying forward and imputing; implicit/explicit quality adjustments needed for permanently replaced products. - Revision policy: CPI series are final when first released and are not revised; studies on weight revisions are not disseminated in official publications. - Periodicity and timeliness: monthly index disseminated one week after reference month (meets GDDS recommendation). - Accessibility: CPI data disseminated on NSO web site; no advance release calendar posted; data made available to all users simultaneously; datasets published in consolidated format by food, nonfood, and services and further by type, group, and aimags. - Metadata accessibility: short documentation on concepts, scope, classification, data sources, and methods available on the IMF’s DSBB; CPI methodological notes on NSO web site; no brochures or newsletters available to the public. - Government Finance Statistics (GFS) - Concepts and definitions: generally follow GFSM 1986; no formal decision on a migration path to GFSM 2001, though new framework planned for compiling fiscal statistics. - Scope: institutional scope for general government (except extrabudgetary units) generally follows international guidelines; no data for central government debt are disseminated. - Classification/sectorization: follows GFSM 1986 broadly, but major issue in financing classification—banking system net credit calculated as a residual and change in cash balances not separately identified. - Basis for recording: transactions recorded on a cash basis, consistent with GFSM 1986. - Source data: complete enough for compilation and consolidation (except extrabudgetary units); no comprehensive register of individual public sector units. - Assessment of source data: monthly reports cross-checked against data in the GFMIS; inconsistencies confirmed with reporting units. - Statistical techniques: compilation procedures minimize processing errors; monthly data are preliminary when first disseminated but are not replaced by final data; compilation procedures are not documented. - Revision practice: virtually no revisions to fiscal statistics; revision studies not routinely conducted. - Periodicity and timeliness: meets GDDS recommendation for central government budgetary operations, but not for central government debt (not disseminated); information to compile central government debt is available and could meet GDDS recommendation. - Consistency: concepts, definitions, and classifications for sub-annual and annual fiscal statistics are the same; sub-annual and annual statistics have been consistent in the last two years though not earlier; differences exist with financing data from monetary accounts and are not regularly reconciled. - Revision policy and practice: no revision policy; when revisions occur they are not made known to the public; users not informed whether data are preliminary or final at dissemination. - Accessibility: fiscal statistics disseminated generally according to GFSM 1986 standards for revenues and expenditures, but not for financing; no advance release schedule communicated publicly though statistics are released punctually in practice; data made available to all users simultaneously. - Metadata accessibility: MOF publishes GDDS metadata on the IMF’s DSBB; no other metadata with detail adapted to users. - Assistance to users: no contact point for fiscal statistics identified in MOF publications; limited assistance to general public users; MOF does not have a catalog of publications (NSO provides a list of publications and prices on its web site). - Monetary statistics (note: table header present but content not included in provided excerpt) *Source: _cr08123 - 0. Prerequisites of quality* ### 2. Methodological soundness ### 2. Methodological soundness ### Monetary statistics (Monetary Survey — BOM) - Concepts and definitions - The concepts and definitions broadly conform to the methodology of the Monetary and Financial Statistics Manual (MFSM). - Scope - The coverage of the BOM’s Monetary Survey comprises the BOM and resident commercial banks, but excludes savings and credit unions, which are collecting an increasing share of deposits. - Classification/sectorization - The definition of residency used for the Monetary Survey follows the BPM5 and MFSM. - The sectorization scheme used is broadly as required by the MFSM. - The classification of certain accounting data is erroneous. - Basis for recording - As recommended by the MFSM methodology, the BOM uses market prices for valuation of most assets and liabilities and book values for valuation of loans. - It relies on accrual accounting. - Its grossing and netting operations are correct with one exception: it treats financial derivatives with the nonresident sector on a net basis in the central bank’s survey. - It treats repurchase agreements, correctly, as collateralized loans. - Source data and assessment - The source data on commercial banks provide broadly sufficient detail to sectorize institutional units and classify financial instruments in line with the MFSM methodology. - The assessment of source data is generally sound. The BOM staff scrutinize data submitted by the banks. For out-of-trend changes or high-value transactions, banks are contacted for verification. - Statistical techniques - As monetary statistics are based on the actual accounting records of financial institutions covered, no statistical techniques are used. - Assessment and validation of intermediate data and statistical outputs - The BOM assesses and validates intermediate data and statistical outputs against data available from other sources. - Revision practices - Revision studies are not routinely prepared. - Revisions do not follow a regular and transparent cycle. - Periodicity and timeliness - Periodicity: monthly. - Timeliness: three weeks after the end of the reference month. - These meet the GDDS recommendations. - Consistency - Monetary statistics are not consistent within the dataset as interbank positions between the central bank and other depository corporations show discrepancies. - Monetary statistics and government budget data show large discrepancies on bank financing of the central government budget. - Monetary and balance of payments statistics have differences in foreign assets and liabilities that are reconcilable as these are due to the use of different exchange rates. - Data and metadata accessibility; user assistance - The BOM disseminates monetary statistics through the Monthly Statistical Bulletin, which is posted on the BOM’s web site. - The BOM has recently begun to post on its web site a preannounced schedule for data release. - Monetary data are made available to all users simultaneously. - Metadata are posted on the IMF’s DSBB as part of Mongolia’s GDDS participation and a link exists on the NSO’s web site. There are no alternative metadata with levels of detail adapted to the needs of the audience. - The BOM provides assistance to users, primarily by providing contact points in its publications and web site. However, no catalog of publications and other services is made available to users. ### Balance of payments statistics (BPM5-based) - Concepts and definitions - The concepts and definitions broadly conform to the methodology of the fifth edition of the Balance of Payments Manual (BPM5). - Scope - The scope of the balance of payments statistics is broadly consistent with guidelines outlined in BPM5. - Classification/sectorization - Classification and sectorization systems are consistent with BPM5. - Basis for recording - Generally, the recording basis is consistent with BPM5. - Transactions are valued at market prices. - The timing of data is based on customs processing (goods) and payments (otherwise). - Many items are not adjusted to an accrual basis. - Source data - The major data sources are customs statistics (merchandise trade), international transactions reporting system, direct reporting from major enterprises and government agencies, and a range of special-purpose surveys. - These sources are generally adequate and timely. - The enterprise survey has problems of an outdated register, incomplete survey response, and lack of estimation for missing enterprises. - Gaps exist in the coverage of small-scale transactions, such as informal trade, remittances outside the banking system, and transactions through foreign exchange bureaus. - Large values of quarterly net errors and omissions indicate timing problems. - Assessment of source data and techniques - Appropriate procedures are followed to assess source data. - Compilation techniques are appropriate. - Valid techniques are used for adjustments, except for nonresponse to surveys. - Assessment and validation of intermediate data and statistical outputs - Routine validation and cross-checking with alternative data and results are undertaken at all stages. - Statistical discrepancies are investigated and taken into account in improving sources and compilation procedures, although there is insufficient cross-checking with position data. - Revision studies and practice - Revisions from period to period are identified and checked. - No long-term revision studies are prepared. - Data revisions are made according to schedule and to correct errors. Preliminary data are identified. However, there is no published statement of revision policy. - Periodicity and timeliness - Balance of payments statistics are available quarterly, usually within six weeks after the end of the reference quarter. - These practices are considerably better than GDDS recommendations. - Consistency - Balance of payments data are published on a consistent basis from 1989 (annually) and 2002 (quarterly). - Balance of payments data are consistent with the national accounts. - Monetary and balance of payments statistics can be reconciled, while there are unreconciled differences with government finance statistics. - Data and metadata accessibility; user assistance - BOM disseminates balance of payments statistics with tables, graphs, and commentary in its quarterly and annual bulletins. - Publications are available in hard copy and are posted on the BOM’s web site (www.mongolbank.mn). - There is a preannounced schedule for data release on the web site. - The BOM makes balance of payments data available to all users simultaneously. - Metadata are published in various formats and degrees of detail in notes to the BOM publications, the BOM contribution to the GDDS metadata, and in a detailed manual. The NSO’s web site contains a link to the DSBB. - The BOM provides assistance to users, primarily by providing contact points in its publications and web site. However, no catalog of publications and other services is made available to users. ### Staff recommendations related to methodological soundness - Cross-cutting recommendations - Implement an electronic (online) reporting system for banks and other financial institutions to enhance the efficiency of monetary and balance of payments statistics compilation process. - Introduce a database-driven compilation system for monetary and balance of payments statistics. - Establish and disseminate revision policies and carry out revision studies across datasets. - Develop and implement a policy to inform users of upcoming changes in definitions and compilation process and the effects on disseminated data. - Harmonize monetary and government finance statistics data on bank credit to the government sector on a regular cycle. - Reconcile differences between government finance statistics and balance of payments statistics. - Monetary Statistics - Develop a Depository Corporations Survey by expanding the coverage of the Monetary Survey to include savings and credit unions and allocating additional resources. - Harmonize interbank positions within monetary statistics. - Adopt the Standardized Report Forms (SRFs) as the vehicle for reporting monetary data both within the financial system and with the IMF. - Balance of Payments Statistics - Develop a computing system appropriate to a modern, large-scale statistical system. The system should include the capacity for on-line reporting and a database for statistical processing of balance of payments data. - Use the enterprise survey results, after follow-up and appropriate adjustments for nonresponse, to improve balance of payments statistics and complete the compilation of the international investment position. - Investigate and resolve emerging issues in balance of payments methodology, including treatment of free trade zones, short-term construction workers, reinvested earnings, bond issues, share market purchases by nonresidents, intercompany debt, and financial derivative holdings. *Source: _cr08123 - 2. Methodological soundness* ### 3. In order to improve data accuracy and reliability, clarification, finalize estimation and its ### _cr08123 - 3. In order to improve data accuracy and reliability, clarification, finalize estimation and its ### National accounts: data accuracy, estimation, validation, and revision policy - Recommendation: update rules and guidelines to improve data accuracy and reliability, clarify and finalize estimation and dissemination. - Proposal: have IMF technical assistance in developing the rules on conformity with international standards. - Price and volume estimates: - International guidelines are followed to derive current price estimates and the base year is updated with adequate frequency. - Some techniques and indicators used to derive the volume estimates are weak. - IMF staff concluded that it would not be suitable to use CPI for the commercial sector when converting value added into constant price. - NSO undertook research to calculate retail trade price index for the commercial sector and developed a methodology for it; it is expected to further study possibilities of employing retail trade price index in the GDP at constant price and realize it. - Supply and Use Table (SUT) and revisions: - Supply and Use Table has been compiled for 2005. - Based on the results of the balance, the issue of revising GDP estimates will be further considered in the preparation of “the rules for validating accuracy of data and revising, updating and disseminating data.” - While intermediate data are assessed, final outputs are not routinely assessed against supply and use tables. - Revision policy and dissemination: - The revision policy is not made known to the public. - The revision cycle is inadequate as the data are revised only once. - Preliminary data are clearly identified, revised estimates are not annotated. - Proposal: have IMF technical assistance in developing the rules on conformity with international standards. ### Consumer Price Index (CPI): compilation, coverage, methods, and dissemination - Coverage and national CPI: - The NSO does not compile a national CPI. - Geographic coverage of expenditure includes both urban and rural areas, but national weights are not estimated to determine a national CPI. - NSO plans to finish preparations for a national CPI calculation within the fourth quarter of this year and to make it known to the public from January 2008. - Within preparations for national CPI calculation, aims include: - develop a methodology for CPI compilation and have it approve; - revise every weight of goods and services in the consumption basket for 21 aimags and Ulaanbaatar city by 2005 HIES expenditure aggregates; - develop a data processing instruction and software for the national CPI calculation; - compile the index on an experimental basis. - Alcohol and tobacco weights: - Consumption expenditure on alcohol and tobacco is not routinely crosschecked with supply data such as imports and retail trade. - When re-updating consumption expenditure weights from 2010, the NSO consumption expenditure weights on alcohol beverages and tobacco of HIES will crosscheck with other related information. - Missing prices, seasonality, and quality adjustment: - Prices temporarily missing and seasonal products for the new CPI are estimated by carrying forward and imputing the price, but quality adjustment techniques should be applied. - The staff should be trained and re-trained on methodological areas on implicit and explicit quality adjustment techniques. - Revisions and public information: - The CPI series are final when first released and are not subject to revisions. - Studies on the impact of weight updating are not disseminated in official statistical publications. - NSO makes available to all users any changes related to the CPI at the same time through statistical publications and tables. - Proposal: explore and accomplish issue on publishing notes about comparison with updated weights and previous weights in monthly statistical bulletin. - Advance release calendar and website: - CPI data are disseminated on the NSO’s website, but there is no advance release calendar posted on the website. - Information about release of statistical information is posted on the NSO’s website. Proposal: take further consideration on posting detailed release calendar on the NSO’s website. - Owner-occupied dwellings: - Recommendation: imputations for owner-occupied dwellings. - Response: “We could not able to accept this recommendation. Because of we understand that goods and services, which their prices can be directly measured, should be taken in consumer basket. We have taken actual rent of owner occupied dwellings in consumer basket.” - Requests for IMF support and technical assistance: - a. Receive technical assistance on development of the “rule” to follow for checking data reliability and accuracy, update data and disseminate data; - b. Provide software of CPI estimation from the IMF and NSO staff attend the related training; and - c. Take actions to further involve NSO staff in long and short-term trainings on national accounts and price statistics. ### Ministry of Finance: response on government statistics and GFSM transition - Publication and access: - Fiscal statistics are not published from Ministry of Finance. - Annual budget planning is published and posted on www.iltod.gov.mn website for comments and feedback right after submission to the parliament; after parliamentary approval it is published as booklet and disseminated to the public. Budget execution is also published as a booklet and disseminated to the public. - Standards and cooperation: - Fiscal statistics are generally disseminated according to GFSM 1985 for revenues and expenditures, but not for financing. - Treasury Department and Fiscal Policy Coordination Department are working in cooperation with country representative office of IMF to improve accuracy and comprehensiveness. - Publications catalogue: - There is no consolidated catalogue for publications from the Ministry of Finance. - Response: Ministry will develop consolidated catalogue of publications’ section on the www.mof.pmis.gov.mn website. - Transition to GFSM 2001 and accrual basis: - Framework of compilation of government statistics on accrual basis has been started. - Ministry is working on introducing a new program for budget planning; technical description developed and Ministry would like to request an advisor to work on government statistics and request IMF to organize a training workshop on government statistics. - Extrabudgetary units: - To start reflecting extrabudgetary units on both national and consolidated budget. - Financial reports from State property and non government organizations are compiled at Accounting Policy Department and reflected on government finance statistics; Ministry will study whether to reflect such reports on budget. - Scheme of actions: - 1. To obtain technical assistance on the implementation of GFSM 2001 methodology of the IMF. - 2. To organize short and long term training courses on the methodologies of public accounting and government statistics. ### Bank of Mongolia (BOM): monetary statistics — planned improvements and implementations - Staffing and resources: - 1.1. Increase the staff of the Statistics Unit by two positions: Economist responsible for data quality issues and Economist responsible for data compilation from other financial institutions except banks. - A new position of an economist responsible for data quality issues was established in December 2007. - According to the approved Plan on Measures to Improve the Monetary Statistics, a new position of an economist responsible for data compilation from other financial institutions except banks will be established in 2008. - 1.2. Acquire software for collection and compilation of monetary statistics: - BOM will take measures to acquire or create software for collecting and compiling the information from banks. - Transparency and metadata: - Monetary Policy and Research Department will prepare paper on changes in methodology of data compilation and sources; inform users in advance via the web site of the Bank of Mongolia. - 6.1. Metadata accessibility: BOM will prepare metadata with levels of detail adapted to needs of the general public and post on the web site of the BOM. Metadata will be based on GDDS framework and posted on DSBB of the IMF, adjusted to meet needs of domestic legal entities and individuals. - Methodological soundness: - 3.1. Expand the scope: BOM will receive consolidated data on savings and credit cooperatives from the Financial Regulatory Commission when the Commission starts to compile these data; consolidated balance sheets will be used for expanding the monetary survey. - 3.2. Reclassify certain accounting data: - In December 2007, excluded Government Lending Funds (KFW, ADB, UNDP loan resources) from Other Items (net) and showed them as a separate item in the Central Bank Monetary Survey. Previous data are modified since January 2005. - In the Other Depository Corporations (Banks) survey, BOM will reclassify Accrued interest receivable/payable to incorporate them into the outstanding amount of the financial asset or liability in 2008, using supplementary data from banks received since January 2006. - 3.3. Change the basis for recording: - Assets and liabilities in financial derivatives in the Central Bank balance sheet and monetary survey will be shown on a gross basis starting January 1, 2008. - Accuracy, consistency, and revision practice: - In each case of revision, BOM will conduct revision studies comparing initial and revised data, studying reasons of discrepancy and drawing a pattern. - 5.1. Maintain data consistency: - Measures to reduce discrepancies in interbank positions between BOM and other banks (loans from the BOM, CBBs holdings, and banks’ deposits with the BOM). - BOM will collaborate with the MoF to estimate discrepancies between monetary statistics (net claims on the government) and government finance statistics (domestic financing from the banking sector in the general government budget), find reasons and take measures to eliminate them. - BOM will request MoF reports on Treasury bills trading and data on Government deposits with banks regularly to reconcile with banks’ balance sheets; when banks misreport Government deposits, BOM will verify and rectify. - 5.2. Revision policy and practice: - Monetary Policy and Research Department will prepare a revision policy paper and post on the web site of the BOM; the paper will cover when and how data will be revised, how changes will be studied and announced, and rationale for adjustment. - Serviceability and user assistance: - 6.2. Assistance to users: - BOM home page lists publications and statistical data in two menus: Publications and Statistics, and provides links; BOM will study appropriate structures on other central banks’ websites to define desired structure. ### Bank of Mongolia: balance of payments (BOP) — staffing, systems, surveys, reconciliation, and publications - Staffing and IT systems: - Recommendation: fill vacant staff positions; consider creating one or two statistical officer grade positions to specialize in surveys and data processing; link future improvements to availability of additional staff; provide specialized computer support for large-scale statistical collection systems. - Response: - A new senior economist is appointed and another staff was employed in Balance of Payments and Research unit; one economist’s vacant position remains. - Quarterly training course on the ITRS is organized. - BOM needs more specialized computer software for collecting, processing and analyzing large-scale information; a new software and more advanced computer technology will be introduced in compilation of Balance of payments. - BOM plans to introduce new system on collection of ITRS data and enterprise reports and intends to send BOP staff to central banks of other countries to learn about software use. - Methodology changes and notifications: - Adopt policy of advance notification of major changes in methods by notification in a regular quarterly publication or by ad hoc release. - Response: Advance notification of major changes in methods will be done in further quarterly publications. Notes regarding enterprise survey and International investment position (IIP) will be done. - Timing and enterprise survey improvements: - Seek to identify variations in timing for major transactions and make adjustments where necessary; BOP compilers contacted direct reporters of main enterprises to clarify transactions and crosscheck with ITRS. - Update register for the enterprise survey on an annual basis; conduct intensive followup of nonresponse and develop estimation procedures for nonresponse. - Response: Update of registration done when enterprise survey conducted; compilers keep contact with nonresponding enterprises, receive additional information, compare activities with similar enterprises, and are working on estimation for nonresponse. - Monitoring new developments, remittances, and omitted items: - Review gaps and problems continuously; monitor new economic developments (free trade zones, commercial bond issues); conduct remittance recipient survey to ask channels used and incorporate adjustment ratios for remittances outside ITRS; use enterprise survey to identify omitted reinvested earnings, dividends in kind, and intercompany lending for direct investment; consult Financial Regulatory Commission to measure transactions through foreign exchange bureaus; attempt to exclude holding gains and losses from reserves transactions by direct reporting or separate calculations. - Response and actions: - BOM will continue to review problematic issues and consult with IMF and others. - BOM contacted Mongolian Stock Exchange and other large commercial banks involved in issuing bonds and securities. - BOM conducted remittance consumption survey in first half of 2007 among recipients including questions on channels used, preference, remitting fee, how they spend remittances; BOM plans annual remittance survey, collect more information on illegal channels, and calculate adjustment ratios for remittances outside ITRS. - Enterprise survey results are ready and BOM is identifying omitted reinvested earnings, dividends in kind, and intercompany lending for direct investment. - BOM consulted with Financial Regulatory Commission on measuring transactions made through foreign exchange bureaus. - From the 3rd quarter of 2007, based on separate calculations for each major currency and gold, reserves transactions are included without revaluation in the BOP Statistics of Mongolia (i.e., excluding holding gains and losses). - International investment position (IIP), reconciliation, and revisions: - Develop annual measures of IIP; meanwhile publish already available components on public debt and reserve assets and reserve-related liabilities; introduce validation checks with rate of return when IIP data developed. - BOM will introduce such practice. - Introduce reconciliation between stocks and flows when IIP data are developed; BOM will introduce such practice. - Prepare a standard table comparing latest period data with corresponding data in previous releases and write explanations; carry out longer term studies of revisions if staff available. - Response: BOP revisions are done to previous releases with explanations indicated as footnotes in quarterly and annual BOP reports; BOM will prepare a standard table for comparing data and do longer term studies of revisions. - Conduct routine checks of BOP with overlapping items in government finance statistics and attempt to explain discrepancies. - Response: BOM contacted the Ministry of Finance and is conducting routine checks; data source used in compilation of BOP is the same. - Publish a revisions policy. - Response: The revision policy for BOP Statistics is described as an attachment in the BOP report of the 2nd quarter of 2007; the quarterly report is posted on the BOM’s website. - Publications and pricing: - Publish a catalog of publications and services along with their prices. - Response: The International department will provide more information on its BOP publication in accordance with other department’s publication, and it will be indicated with its related charge. *Prepared by the Statistics Department; approved March 27, 2008.* ### 1. DQAF (July 2003): Summary of Results for National Accounts ........................................30 ### 1. DQAF (July 2003): Summary of Results for National Accounts ### 0. Prerequisites of quality — Legal and institutional environment - The central statistical system comprises the National Statistical Office (NSO) and statistical units at the regional level. The NSO is an independent public agency headed by a chairman who reports directly to the Parliament of Mongolia, the Great Khural. - Chapter 2, Article 5 of the Law on Statistics (passed June 5, 1997; revised in 2004) stipulates the central statistical system’s responsibility for collecting, compiling, and disseminating all official statistics. The schedule in Article 6 explicitly identifies GDP and CPI but is neither exhaustive nor restrictive. - Article 12 gives the NSO broad authority to determine responsibilities of other government agencies with regard to compilation of official statistics, helping prevent or resolve conflicts. - The Law (Chapter 4, Article 11) assigns the NSO independent responsibility for coordinating all official statistical activities and lists specific coordination roles, including: - providing centralized overall management and coordination; - providing guidelines for organizations and respondents for censuses and surveys; - collecting official statistical information from relevant ministries and state organizations in a specified time; and - approving and accepting methodologies and manuals or instructions and timing of announcement. - Regional statistical agencies must seek NSO approval before undertaking data gathering to minimize duplication. - The NSO has signed memoranda of understanding on data sharing with the Bank of Mongolia (BOM), the Customs Department, and the Tax Administration Office; memoranda specify data kinds, timing, and form. A working group on data sharing and coordination with the Ministry of Finance (MOF) meets quarterly (four NSO representatives, two MOF representatives). - Confidentiality: - Chapter 6, Article 22 prohibits NSO staff from disseminating processing-stage information or revealing respondent identity; raw census and survey data may not be disseminated before advertised release dates. - Chapter 3, Article 9 grants respondents the right to demand confidentiality and requires agencies to safeguard against identification of individual units. - Regional-to-NSO transmissions are coded and omit respondent identification. - Legal mandate for reporting: - Chapter 3, Article 9 requires respondents to provide official statistical information at their own cost; NSO mandated to collect timely information. - Regional offices deliver questionnaires by hand (postal service unreliable); field staff conduct follow-ups and statistical inspectors visit nonrespondents. - Reported enterprise survey response rates: between 80 percent and 90 percent since 2005. - The NSO has authority to penalize non-respondents but rarely uses it, relying on engagement measures instead. ### 0.2 Resources — Staff, facilities, computing, and financing - Staffing and organization: - NSO employs 82 staff; 139 persons work at 22 regional statistical offices. - Statistical Planning and Policy Coordination Department (SPPCD) compiles national accounts; Statistical Integrated Policy Division of SPPCD employs eight people, three engaged in national accounts compilation. - All national accounts staff have university degrees in economics or statistics; staff have received training from IMF and other international organizations. - Staff turnover has been relatively low at central level but high at provincial offices due to low remuneration. - Resource constraints and infrastructure: - Staff complement is not adequate for the national accounts program; NSO constrained by central government budget allocations and wage guidelines. - Provincial staffing levels are low relative to workload; capability for intensive survey follow-up and crosschecks is doubtful. - Budget allocation insufficient for regular statistical activities; dependence on grants from international organizations for critical survey work. - Office building provides adequate facilities for current staff but very limited additional space. - Computing resources recently upgraded; all staff have access via personal computers and a local area network. - Management of resources: - Staff performance evaluated on a quarterly basis; awards include nomination for state orders and decorations and increases in benefits. - NSO solicits staff views during statistical program planning on improvements, management attention areas, and time for developmental activities. - Recommendations: - Increase staff resources commensurate with the work program; and - Address the critical shortage of physical facilities since the current facilities will not be able to accommodate additional staff. ### 0.3 Relevance and user engagement - User consultation: - NSO consults regularly with public-sector users through working group meetings and bilateral meetings per memoranda of understanding. - Ad hoc seminars held with private-sector groups; no structured process exists to obtain regular feedback from users. - NSO management participates in regional and international meetings to discuss emerging standards and solicits feedback from other agencies. - Recommendation: - Implement systematic programs to obtain the views of a wide cross-section of users, especially users in the private sector. ### 0.4 Other quality management - Quality focus and planning: - NSO mission emphasizes reliable, impartial statistics; quality improvement is central to planning. - NSO developed a Program for Official Statistics Development, 2006–2010, aiming to align statistics with internationally accepted methodologies in line with GDDS recommendations. - Quality monitoring: - A Methodology and Research Department was established in 2005 to undertake statistical research and review methodological issues. - The NSO Board established a Standing Council on Methodology and Research to improve systems, ensure reliability and timeliness, and advise on frameworks, concepts, and methodologies. - Planning processes: - NSO prepares an annual work plan twelve months ahead that outlines departmental output objectives and expected costs; execution constrained by central government budget allocations. - An annual production schedule is prepared to account for timely dissemination. ### 1. Assurances of integrity — Professionalism - Independence and appointment safeguards: - Chapter I, Article 4 establishes independence of official statistics as a core principle. - Parliament appoints the NSO chairman for a fixed but renewable six-year term; involuntary termination allowed only for unsatisfactory performance, inability to perform duties (health), or criminal conviction. - The chairman has sole authority for management and organization decisions, authority to appoint heads of regional statistical agencies (based on regional governors’ recommendations), and direct contact with parliamentary standing committees on statistics. - Staff recruitment: - Governed by the Law of the Public Service: NSO must request position approval from the Public Administration Committee; applicants take the public service examination; six-month probationary period precedes permanent appointment. - Statistical independence in methodology and dissemination: - Choices of sources, techniques, and dissemination decisions are made solely on statistical considerations; staff (with occasional external experts) implement international recommendations. - The NSO is entitled to comment publicly on erroneous interpretation and misuse of statistics. *Source: 1. DQAF (July 2003): Summary of Results for National Accounts* ### 1.2 Transparency ### 1.2 Transparency ### Availability of terms and conditions (1.2.1) - The Law on Statistics is available on the website of the NSO in Mongolian; the NSO has not yet uploaded the English version of the Law. - Data collection instruments refer to the Law and advise respondents about their rights and responsibilities under the Law. - Copies of the Law are available at the agency's offices. ### Internal governmental access prior to release (1.2.2) - There is no internal access to the statistics prior to their release. ### Identification of statistical products (1.2.3) - NSO products are clearly identified by name and with the agency’s logo. - Output of individual units within the NSO is not distinguished separately. - When the NSO conducts exercises with other government agencies, the NSO is clearly identified as a contributor. ### Advance notice of major methodological changes (1.2.4) - Apart from occasional announcements of the agency’s work plans, the NSO provides no advance notice of changes in methodology, source data, and statistical techniques. - Example: The agency released revised estimates of GDP in August 2007 with the volume estimates rebased at 2005 prices, but did not provide any indication to users that these revised data were forthcoming. Recommendations: - Develop and implement a policy to inform users of upcoming changes in the compilation process and the effects on disseminated data. The policy should include guidelines on the timeframe for advance notification and types of media. --- ### 1.3 Ethical standards ### Staff behavior guidelines (1.3.1) - Staff are subject to the internal rules of the NSO and the rules and regulations of the public service. - The NSO’s Administration Department provides a copy of the rules and regulations to all new staff upon recruitment. - Staff must take an oath of secrecy before accessing any information collected by the NSO. - Rules and regulations prohibit staff from using statistical information for personal gain or participating in political activities. - Staff may be dismissed for breaching the staff rules. --- ### 2 Methodological soundness ### Concepts and definitions (2.1.1) - National accounts statistics are compiled according to the broad guidelines of the 1993 SNA. ### Scope (2.2.1) - The regular national accounts system covers only the following minimum items: - Value added and GDP by type of economic activity at current and constant prices; - Value-added components by type of activity; and - Expenditure components of GDP at current prices. - The accounts above are stated as not sufficient to fulfill the minimum requirements established by the ISWGNA for implementing the 1993 SNA. - Required but not compiled/disseminated accounts include: - Expenditure on GDP in constant prices; - Income and capital accounts with an annual frequency; and - Annual rest of the world accounts (including net lending). - Supply and use tables (SUT) are compiled at five yearly intervals; the last SUT was compiled for 2005. - Experimental accounts being compiled but not yet disseminated: - Institutional sector for all resident sectors for 2000–2005 (production account, generation of income account, allocation of primary income account, secondary distribution of income account, use of income account, and the capital account); - Quarterly GDP by type of activity; and - Expenditure on annual GDP at constant prices is at an advanced stage. - The NSO hopes to complete compilation and disseminate these accounts during 2008. - The NSO has not been able to compile any of the additional accounts and tables that the ISWGNA recommends for implementation of the 1993 SNA. Delimitation and production/asset boundaries: - Constituent units of the economy follow the 1993 SNA; included in economic territory: - Territorial enclaves in the rest of the world; and - Bonded warehouses. - Mongolian workers who only work part of the year abroad are included in the economic territory of Mongolia; nonresidents working part of the year in Mongolia are considered statistically insignificant. - Production boundary in accordance with the 1993 SNA where feasible; included output: - Own-account production of goods for own final consumption; - Output of own account fixed capital formation; and - Mineral exploration. - Research and development on own account, production of computer software, and illegal output are included in the production boundary but measurement remains a major challenge. - Assets boundary includes: - Tangible assets: defense related assets that could be used for civilian purposes; valuables; agricultural work-in-progress. - Intangible assets: mineral exploration; systems and standard applications computer software and databases; entertainment, literary or artistic originals; patented entities; and leases and other transferable contracts. - Intangible assets, except mineral exploration, are relatively small and are not covered in a systematic manner. Recommendations: - Expedite the dissemination of accounts that are currently being compiled and not disseminated. - Implement a cohesive work program to ensure that these accounts are compiled and disseminated according to regular schedule. ### Classification/sectorization (2.3.1) - Classifications used are consistent with internationally accepted standards: - 1993 SNA for institutional units, transactions, and other flows; - International Standard Industrial Classification (ISIC) for economic activity of establishments and enterprises; - Central Product Classification for products; - Classification of Individual Consumption by Purpose (COICOP) for consumption; - Classification of the Functions of Government (COFOG) for government transactions. ### Basis for recording (2.4) - Valuation rules consistent with the 1993 SNA where applicable: - Market output valued at producer prices; - Output for own-use valued at the prevailing market prices; - Imports adjusted from c.i.f. to f.o.b.; exports valued f.o.b.; - Transactions in foreign currency converted using the mid-point exchange rate prevailing in the market at the time they take place. - Recording on an accrual basis for most transactions and flows; work in progress recorded in the period the work takes place. - Government transactions are recorded on a cash basis in line with government finance statistics reporting procedures; NSO does not attempt to adjust cash to accrual. - Mongolia is participating in a project to implement GFSM 2001; when implemented, NSO expects to receive data in the requisite form. - Grossing/netting: data are collected at enterprise level; transactions between establishments of the same enterprise are recorded net. --- ### 3 Accuracy and reliability ### Source data collection programs (3.1.1) - NSO has implemented a comprehensive system of surveys supplemented by administrative sources (e.g., Tax Administration Office). - An economic census was conducted in 2006, in line with the Law requiring such censuses every five years. - Source data are reviewed constantly to meet compilation requirements. Enterprise survey: - Conducted annually; covers all economic activities except personal and business services. - Combines sampling of selected activities (distribution, manufacturing, restaurants, coal mining) and full enumeration of all others. - For sampled activities, all enterprises above a set cut-off mark are included and stratified sampling methods are used for remaining enterprises; the precise cut-off depends on activity. - For 2007, the overall sample was over 14,000. - Business register frame contains about 40,000 listings of active enterprises; comprehensively updated following the enterprise census in 2006. - Regional offices review new registrations and collect basic operational information. Household Income and Expenditure Survey (HIES): - Continuous survey covering the complete geographic area of Mongolia. - Survey covers 936 households monthly; a new sample each month; 11,432 households surveyed over a twelve-month coverage period. - Represents a two percent sample of domestic households. - Two-stage sampling: 104 enumeration districts (out of 11,000 identified in the 2000 population and housing census) are sampled every month using probability proportional to size; households selected by simple random sampling. - Consumption recorded at the detailed 6-digit level of the COICOP. Administrative data access includes: - Bank of Mongolia–Financial and banking statistics; - Ministry of Finance–Government finance statistics; - Tax Administration Office–Returns of enterprises; - Customs Administration–Foreign trade statistics; - Financial Regulation Commission–Data on financial corporations; - Ministry of Internal Justice–nongovernmental organizations; - Ministry of Health; - Ministry of Education, Culture, and Science; - Ministry of Food and Agriculture; and - Ministry of Construction and Urban Development. Price statistics: - Currently limited to the CPI and trade unit value indices. - CPI is used sparingly in deriving constant price estimates when suitable indicators are not available. - NSO is developing a producer price index and hopes to disseminate it from 2008. - The agency plans to develop trade price indices, resources permitting. Ad hoc surveys: - Few ad hoc surveys due to resource constraints; most recent was a survey of retail trade and transportation services in 2004 to obtain information on informal sector activity. ### Suitability of source data (3.1.2) - Annual enterprise survey was designed to meet national accounts needs and approximates required definitions, scope, classifications, valuation, and time of recording. - Questionnaires are not activity-specific and may request information not relevant to the activity being surveyed. ### Timeliness of source data (3.1.3) - Source data are received on a timely basis and allow NSO to compile early estimates of annual GDP. - Data from the enterprise survey, the HIES, and administrative sources are used to compile the first set of preliminary estimates within three months of the end of the reference period. - Annual enterprise survey timing: questionnaires delivered about four weeks following the end of the reference year (end-January) and responses are due by mid-March; data then validated and processed for the first estimates. ### Assessment of source data (3.2.1) - Regional office staff perform preliminary consistency checks and may follow-up with respondents. - Comprehensive assessment undertaken by NSO staff; data entry program contains built-in logical checks; manual consistency checks identify outliers. - Enterprise survey results are checked against business accounting data from the Tax Administration Office and the MOF; for large enterprises NSO may contact enterprises directly. - Staff conduct checks on aggregated data for temporal consistency. - Information is available about sampling error, non-response, and processing errors of NSO surveys; monitored and used to improve survey processes. - Limitations: - Staff are unable to undertake a comprehensive assessment of source data due to the tight national accounts compilation schedule; adequate follow-up of errors and inconsistencies is not undertaken. - There is no incentive to conduct a comprehensive review of source data after the first round of compilation as national accounts estimates are only reviewed once—a short period following initial compilation. *Source: _cr08123 - 1.2 Transparency* ### 3.3 Statistical techniques ### 3.3 Statistical techniques ### 3.3.1 Data compilation and imputation practices - Data entry programs for the surveys contain built-in checks, such as range checks, to spot and minimize editing and coding errors. - Imputations for nonresponse are minimal because of the relatively high response rates. - When imputation is undertaken, it conforms to international best practice. - Employment-based methods using similar enterprises in the industry are commonly used to estimate aggregates of missing enterprises. ### 3.3.2 Other statistical procedures - Other procedures (data adjustments and transformations, and statistical analysis) employ sound statistical techniques. - Informal activity is a concern: output of informal activity is not incorporated in the accounts in a systematic manner. - Output of self-employed persons and households is not covered by the regular data collection exercise. - The NSO has instituted data collection programs to cover these activities and plans to include them in the estimates shortly. ### Production approach procedures and specific issues - Level of detail for output and intermediate consumption depends on data availability and activity importance: - Services: value added derived at the 4-digit level of ISIC Rev. 3. - Food and beverage manufacturing: derived at the 3-digit level. - All other activities: derived at the 2-digit level. - Owner-occupied dwellings: - Output derived as estimated rental values that the owner would pay for similar accommodation (in line with international practice). - Data derived from the HIES, which collects rental values of owner-occupied dwellings. - Work-in-progress: - Construction projects spanning more than one period are treated as work-in-progress. - Rearing of livestock for food is treated as work-in-progress. - Inventory valuation adjustment: - Output is not adjusted for holding gains or losses accruing on inventories. - Consumption of fixed capital: - The perpetual inventory method is not used. - Estimates of depreciation obtained from the enterprise survey are used to approximate consumption of fixed capital. - Cash versus accrual: - Data on government operations are on a cash basis and are not converted to accrual (see also 2.4.2). ### Issues relating to volume measures of GDP - GDP volumes are based primarily on single indicator methods using listed volume indicators. - Double deflation is not used due to unavailability of adequate data to deflate intermediate consumption. - Where price indices are used to derive volume estimates, value added is deflated directly using the price index (not in line with international recommendations). - Base year for volume estimates is 2005; it was recently updated from 2000 (in line with recommendation to update base year with minimum frequency of five years). - Volume measures of taxes on products are estimated by direct deflation using the CPI (not in line with internationally recommended practice). - Volume of trade margins is estimated by direct deflation using the CPI. ### Indices used for constant price estimation (selected entries shown exactly as in source) - Code A Agriculture, hunting, forestry - 011 growing of crops — Volume index of crops products - 012 farming of animals — Volume index of livestock products - 015 hunting — Volume index of hunted animals - 02 forestry — Volume index of logging trees - Code C Mining and quarrying - 10 mining of coal — Volume index of coal - 11 extraction of crude petroleum and natural gas — Volume index of crude petroleum - 13 mining of metal ores — Volume index of metal ores commodities - 14 other mining and quarrying — Volume index of other mining commodities - Code D Manufacturing (selected) - 15 manufacture of food products and beverages - 151 production, processing and preservation of meat, fish, fruit, vegetables, oils and fats — Volume index of meat products - 152 manufacture of dairy products — Volume index of milk products - 153 manufacture of grain mill products, starches and starch products, and prepared animal feeds — Volume index of flour - 154 manufacture of other food products — Volume index of bakery products - 155 manufacture of beverages — Volume index of beverages - 17 manufacture of textiles — Volume index of textile products - 18 manufacture of wearing apparel, dressing, and dyeing of fur — Volume index of cloth goods - 19 tanning, dressing of leather; manufacture of luggage handbags, saddlery harness, footwear — Volume index of leather goods - 20 manufacture of wood and wooden products — Volume index of wood products - 21 manufacture of paper and paper products — Volume index of paper products - 22 publishing, printing and reproduction of recorded media — Volume index of printed goods - 24 manufacture of chemicals and chemical products — Volume index of chemical products - 25 manufacture of rubber and plastic products — Volume index of rubber products - 26 production of other nonmetallic mineral products — Volume index of nonmetallic mineral products - 27 manufacture of basic metals — Volume index of basic metal products - 28 manufacture of fabricated metal product, except machinery and equipment — Volume index of fabricated metal products - 29 manufacture of machinery and equipment — Volume index of machinery and equipment - 31 manufacture of electrical machinery and apparatus — Volume index of electrical apparatus - 32 manufacture of radio, television and communication equipment — Volume index of TV sets - 33 manufacture of medical precision and optical instruments, watches and clocks — Volume index of medical products - 34 manufacture of motor vehicles, trailers - 35 manufacture of other transport equipment — Volume index of other transport equipment - 36 manufacture of furniture, manufacturing n.e.c. — manufacture of furniture — Volume index of furniture; manufacturing n.e.c — Volume index of other manufactured goods; Recycling — Volume index of recycling - Code E Electricity, gas and water supply - 40 electricity, thermal energy — Volume index of electricity and thermal energy - 41 water supply — Volume index of distributed water - Code 45 Construction — CPI of building material - Code G Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods (selected) - 50 sale, maintenance and repair of motor vehicles and motorcycles; retail sale of automotive fuel — CPI of other goods and services group - 51 wholesale trade and commission trade, except of motor vehicles and motorcycles — Overall CPI of goods group - 52 retail trade, except of motor vehicles and motorcycles; repair of personal goods and household goods — Overall CPI of goods group - 55 Hotels and restaurants — hotels CPI of restaurant meal; restaurants, bars, canteens CPI of restaurant meal - Code I Transport, storage and communications (selected) - 60 land transport — 601 railway Volume index of carried freight and passengers; 602 auto transport Volume index of carried freight - 61 water transport — Volume index of carried freight - 62 air transport — Volume index of passengers carried - 63 supporting and auxiliary activities; activities of travel agencies — activities of travel agencies Volume index of tourists - 64 post and communications — CPI for communication - Code J Financial intermediation (selected) - 65 financial intermediation, except insurance and pension funding — banking Overall CPI of services group; saving and credit unions Overall CPI of services group; nonbanking organizations Overall CPI of services group - 66 Insurance and pension funding, except compulsory social security — Insurance Overall CPI of services group - 67 activities auxiliary to financial intermediation — stock exchange Volume index of traded shares; security dealing activities Volume index of traded shares - Code K Real estate, renting and business activities (selected) - 70 real estate activities — companies providing services to HHs CPI of monthly housing space fees; apartment owners association CPI of other goods and services group; renting of real estate CPI of monthly housing space fees - 71 renting of machinery and equipment — CPI of other goods and services group - 72 computer and related activities — Volume index of computers - 73 research and experimental development — CPI of cultural goods and recreation group - 74 other business activities — architectural and engineering activities CPI of other goods and services group; technical consultancy on geological work CPI of other goods and services group; security activities CPI of other goods and services group; photographic activities CPI of other goods and services group; other business activities n.e.c. CPI of other goods and services group - Code L Public administration and defense; compulsory social security — Volume index of employees - Code M Education — Private CPI of annual tuition fees; Public Volume index of employees - Code N Health and social work — Public Volume index of employees; Private CPI of medical care and services group; veterinary activities CPI of medical care and services group - Code O Other community, social and personal service activities (selected) - hairdressing and other beauty treatment — CPI of other goods and services group - washing and dry cleaning — CPI of other goods and services group - bath house — CPI of other goods and services group - other recreational and cultural activities — various CPI of other goods and services group or Overall CPI of services group - FISIM — Overall CPI of services group ### Recommendations (from section 3.3) - Review the techniques and data used to derive volume estimates. - Use single extrapolator methods to derive the volume estimates when using a price index. - Value added should never be deflated directly. - Review the estimation of gross fixed capital formation to eliminate double counting. - Implement international best practice to derive volume estimates of taxes by applying base-year-tax rates to the volume of transactions subject to a specific tax or by extrapolating the base-year tax using a volume extrapolator of transactions subject to that tax. - Implement international best practice to derive volume estimates of trade margin by applying the base-year-margin rates to the corresponding volume of sales or by extrapolating the base-year-trade margins using volume extrapolators of sales. --- ### 3.4 Assessment and validation of intermediate data and statistical outputs ### 3.4.1 Validation of intermediate results - Aggregate data from the annual enterprise survey are validated against data from the Tax Administration Office. - Estimates of financial intermediation are validated against information from the Financial Regulatory Commission. ### 3.4.2 Investigation of statistical discrepancies in intermediate data - The NSO investigates statistical discrepancies by assessing the major units. - Staff may contact enterprises, where necessary, to verify accuracy and determine the source of inconsistency; however, this is not undertaken in a systematic manner. ### 3.4.3 Investigation of discrepancies and indicators of problems in outputs - The NSO compiles SUTs every five years. - First SUT compiled for 2000; the exercise was repeated for 2005. - Results of the 2000 SUT became available in 2004. - Results of the 2005 SUT should become available in 2008. - The NSO, with external technical assistance, has made initial efforts to use the 2000 SUT to assess the statistical discrepancy; this effort is continuing. Recommendation: - Use the SUT as a benchmark for the GDP estimates. --- ### 3.5 Revision studies ### 3.5.1 Practice on revisions - Studies and analyses of revisions are not undertaken in a systematic manner. Recommendation: - Undertake comprehensive studies and analyses of the revisions of the national accounts estimates. These studies are particularly important when the base year is updated. --- ### 4 Serviceability ### 4.1 Periodicity and timeliness - 4.1.1 Periodicity follows dissemination standards: - The GDP estimates are compiled annually in line with the recommendations of the GDDS. - 4.1.2 Timeliness follows dissemination standards: - The first annual GDP estimates are disseminated three months after the end of the reference period (timeliness in line with GDDS). ### 4.2 Consistency - 4.2.1 Internal consistency: - The estimates are internally consistent. - The NSO has reduced the statistical discrepancy to about one percent following a comprehensive revision that included updating the base year to 2005 and incorporating additional data on unincorporated enterprises from the 2006 Economic Census. - 4.2.2 Consistency over time: - GDP estimates are available from 1980. - A consistent series of GDP by type of activity at current and constant 2005 prices is only available from 2000. - The NSO revised the estimates of GDP at constant prices from 2000 with introduction of the 2005 base year. - The NSO plans to revise the estimates backwards to 1980, resources permitting. - 4.2.3 Consistency with other frameworks: - The statistics are consistent with the balance of payments from the BOM, the GFS from the MOF, and the foreign trade statistics from the Customs Administration. ### 4.3 Revision policy and practice - 4.3.1 Schedule and transparency: - The NSO disseminates preliminary GDP estimates three months following the end of the reference year. - Revised estimates are disseminated six months after the end of the period. - The revision cycle is relatively stable but is not made known to the public. - Reasons underlying revisions are not normally explained. - The NSO only revises annual estimates once; no further revisions are made after the second publication six months following the end of the reference period, unless major methodological changes occur. - Given the tight production schedule and large data volume, further adjustments to estimates are likely warranted. - 4.3.2 Identification of revisions: - The Monthly Bulletin clearly identifies data that are preliminary. - When data are revised, no indication is given of such a revision. - 4.3.3 Public studies of revisions: - Studies and analyses of revisions are not conducted or disseminated. Recommendations: - Increase the number of revisions to the estimates and lengthen the revision cycle. (A common practice is to revise the estimates at least twice within the two years following the end of the reference period.) - Identify preliminary and revised data with clear notations. *Source: _cr08123 - 3.3 Statistical techniques (National Accounts).* ### 5. Accessibility ### 5. Accessibility ### 5.1 Data accessibility - Detailed data dissemination: - Detailed data are disseminated on the NSO web site, www.nso.mn, and in the Statistical Yearbook of Mongolia. - The Yearbook presents a five-year series and introduces series with brief analysis; charts highlight major changes and composition of key aggregates. - Monthly bulletins contain less detailed data and are geared to short-term indicators. - A dedicated national accounts publication is not produced. - Dissemination media and format: - The NSO conducts a monthly press conference; the national accounts estimate is normally first released at the press conference in the month that it is made available. - Press releases with the data and brief explanations are circulated. - Data are published in the monthly bulletin and more detailed data in the Statistical Yearbook; the NSO web site reproduces the publications. - Users may subscribe to an online service providing detailed information not available in regular publications and on the web site. - Users may request information on electronic media formats such as compact discs and flash drives. - Release schedule and accessibility: - The NSO does not disseminate an advance release calendar; regular users are aware of general timing as it has remained relatively stable. - The NSO responds to queries from users about expected release timing. - Statistics are made available to users only on the authorization of the NSO Chairman; following authorization the data are available to all users. - Non-routinely disseminated statistics are made available upon request provided respondent confidentiality is not compromised. - Recommendation (explicit): - Develop an advance release calendar and disseminate to the public, preferably via the NSO web site. ### 5.2 Metadata accessibility - Documentation and availability: - The NSO has compiled a detailed document of methodology, data sources, and statistical techniques used to compile the estimates; the document is available primarily to staff, but private users may request copies or obtain extracts. - Mongolia became a GDDS participant in August 2000; detailed national accounts metadata are published on the IMF’s GDDS web site. The metadata were last updated in 2006. - The Statistical Yearbook provides a synopsis of compilation procedures and data sources. - The NSO web site’s section on methodology is still under construction. - Levels of detail: - The Statistical Yearbook contains summary metadata for users interested in key national accounts aggregates and provides brief, simple explanations of some national concepts. - Users interested in detailed methodology and data sources may consult the detailed document referred to above. ### 5.3 Assistance to users - Contact points and dissemination division: - Publications and the web site present NSO contact information: street address, telephone and facsimile numbers, and e-mail address for enquiries. - The NSO has established a separate Dissemination Division to assist users. - Catalogs and charges: - The NSO disseminates a catalog of its publications in hardcopy (available from the Dissemination Division) and on the NSO website. - The catalog includes the publication’s full name, the language of publication, the periodicity, and the price. ### Data Quality Assessment Framework (selected accessibility findings and plans) - From Table 1 (Mongolia: Data Quality Assessment Framework (July 2003) — National Accounts, Compiling Agency: National Statistical Office): - 5.1 Data accessibility: assessed as LO (Practice Largely Observed). - Comment: No preannounced schedule for data dissemination. - Plan: Preannounced schedule to be disseminated—Medium term. - 5.2 Metadata accessibility: assessed as O (Practice Observed). - 5.3 Assistance to users: assessed as O (Practice Observed). ### Price Statistics (CPI) — resource and serviceability notes relevant to accessibility and user assistance - Legal and institutional context supporting dissemination and confidentiality: - The Law on Statistics (Chapter 2, Article 5; Chapter 3, Article 9; Chapter 4, Article 11; Chapter 6, Article 22) defines NSO responsibilities, coordination role, confidentiality protections, and respondents’ obligation to provide official statistical information. - Memoranda of understanding on data sharing exist with BOM, the Customs Department, and Tax Administration Office; an NSO–MOF working group meets quarterly. - Staff, facilities, and computing resources (implications for accessibility and assistance): - The NSO employs 82 staff and a further 139 people work at the 22 regional statistical offices. - The Statistical Integrated Policy Division of the SPPCD employs eight people, and two are engaged in the CPI compilation. - CPI staff have university degrees in economics or statistics and have received substantive training; staff turnover has been relatively low at NSO headquarters but is higher at provincial offices. - Response rates for the enterprise survey since 2005: between 80 percent and 90 percent. - Computing resources were recently upgraded; CPI staff use Excel for compiling and analyzing CPI series. - Emergency back-up: three copies of CPI data archived quarterly (server at the NSO, a private commercial bank, and the National Archive of Ulaanbaatar). Recommendation: archive CPI data on a monthly basis. - CPI-related recommendations affecting user service and accessibility: - Increase the number of staff working on the CPI in the NSO and in the provinces. - Provide travel allowances for price collection. - Make efforts to back-up and save the CPI data on a monthly basis, and provide more office space. *Content based solely on the IMF document: 5. Accessibility (section text and tables) from the source PDF.* ### 0.3 Relevance ### _cr08123 - 0.3 Relevance ### Monitoring relevance and user engagement - NSO staff consult regularly with public-sector users through regular working group meetings and bilateral meetings arranged on the basis on the respective memoranda of understanding. - Ad hoc seminars have been conducted with private-sector user groups; there is no structured process to obtain regular feedback from users. - NSO management participates in regional and international meetings to discuss emerging statistical standards and data requirements and solicits feedback from advanced statistical agencies. Recommendations (from source): - The NSO should develop a structured process to obtain regular feed back from users. ### Quality management and institutional frameworks - NSO mission: provide government and public users with reliable and accurate statistics that is immune to political influence, scientifically feasible, and acceptable. - NSO Program for Official Statistics Development, 2006–2010: principal objective to develop national statistical standards based on internationally acceptable methodologies in line with GDDS recommendations. - Methodology and Research Department established in 2005 to monitor quality, undertake statistical research, and review methodological issues for data collection and processing. - NSO Board established a Standing Council on Methodology and Research to improve statistical systems and make recommendations on statistical concepts and methodologies. - Price collection schedule: - Main food items: collected every Friday. - Other items: collected between the 15th and the 20th of the month in the regions, and between the 22nd and 28th of the month for the city. - CPI data from regional offices should be received by the NSO by the 21st of the month. - Rationale: ensure indices can be compiled and disseminated one week after end of reference month. - Annual planning: - NSO prepares an annual work plan twelve months before the start of the year, outlining output objectives and identifying expected cost; outputs constrained by central government budget allocation. - NSO prepares an annual production schedule considering timely dissemination. ### Assurances of integrity — professionalism, transparency, and ethics - Legal and institutional safeguards: - Chapter I, Article 4 of the Law establishes independence of official statistics as one of six key principles. - Parliament appoints the chairman for a fixed but renewable six-year term; involuntary termination only for unsatisfactory performance, inability (e.g., health), or criminal conviction. - Chairman has sole authority for management and organization decisions, appoints regional statistical agency heads (based on regional governors' recommendations), and maintains direct contact with parliamentary standing committees relating to statistics. - Staff recruitment governed by the Law of the Public Service: public service examination, interviews, six-month probationary period before permanent appointment. - Choices of sources, techniques, and dissemination informed solely by statistical considerations; staff (with occasional external experts) decide techniques and data sources to implement international recommendations. - NSO entitled to comment on erroneous interpretation and misuse of statistics; CPI publications/news releases explain compilation basis and unusual movements; SPPCD director may respond publicly to criticisms or misuse. - Transparency and access: - Law on Statistics available on NSO website in Mongolian; English version not yet uploaded. - Data collection instruments refer to the Law and advise respondents of rights and responsibilities. - No internal access to statistics prior to release. - NSO products clearly identified by name and agency logo; outputs of individual units not distinguished separately. - Advance notice: apart from occasional agency work-plan announcements, no advance notice of changes in methodology, source data, or statistical techniques; CPI weight updates, basket composition, and methodological changes announced at time CPI data are released. - Recommendations (from source): - Give advance notice of major changes in methodology, source data, and statistical techniques to the public. - Develop and implement a policy to inform users of upcoming changes in the compilation process and the effects on disseminated data. - The policy should include guidelines on the timeframe for advance notification and types of media. - Ethical standards: - Staff subject to internal NSO rules and public service rules; Administration Department provides rules to new staff. - Staff must take an oath of secrecy before accessing collected information. - Rules prohibit use of statistical information for personal gain and participation in political activities; staff may be dismissed for breaches. ### Methodological soundness — concepts, scope, classification, recording - Concepts and definitions: - Locally developed concepts and definitions broadly in line with international standards, guidelines, or good practices. - Household expenditure estimates from the HIES used for market expenditure weights. - CPI classified according to COICOP, conforming to 1993 SNA, ILO, and Consumer Price Index Manual, 2004. - CPI rebased in April 2006 (2005=100), using December 2005 as price reference period. - CPI weights include illegal activities, own-produced agricultural products, and goods provided by employers as income in kind; level of detail for household residential capital formation expenditure insufficient for detailed price-movement analysis. - Scope: - Monthly CPI compiled for the capital and the 21 provinces (aimags); CPI for Ulaanbaatar used as a substitute for national CPI. - NSO plans to expand CPI to entire geographic region; an experimental national CPI produced but not disseminated. - Regional (aimag) indexes compiled since beginning of 2005. - All resident households included; strata: cities, providences, soums, and census sampling units. - Informal activity included in CPI weights that cover expenditures of all resident households. - CPI does not cover owner-occupied housing (neither as consumption of housing services nor as capital formation); CPI does not include illegal goods and services purchased on the market nor goods/services provided in the informal economy. - Recommendations (from source): - Expand the scope of the CPI to a national CPI. - Monitor expenditure estimates on goods and services in the illegal and informal economy, and determine if these should be represented in the CPI basket. - Classification/sectorization: - CPI covers noninstitutionalized Mongolian households consistent with the 1993 SNA household sector. - Item weights classified using COICOP. - Basis for recording: - Market prices used; prices reflect what a consumer would pay on the day of survey, including value added, excise taxes, trade, and transportation margins. - Cash and credit card payments are the basis. - Specific recording rules: - Direct taxes and VAT included in recorded price. - Sale prices included if item will continue to be available after sale period. - List prices: outlets asked to confirm prices charged to consumers. - Product specifications designed with SPPCD guidance; price-determining characteristics include size, color, brand, and quality. - Recording on accrual basis: prices recorded in period purchased; discounts and sale prices recorded. - Grossing/netting: weights applied to purchases of existing goods such as used cars with secondary markets. ### Accuracy and reliability — source data and assessment - Sources for CPI prices: - Judgmental list of outlets compiled by SPPCD and regional statistical offices. - Price data collected mainly by personal visits to about ninety shops and other retail outlets. - Misclassifications and nonresponse not major problems due to good relations between price collectors and retail outlets. - Ad hoc surveys identify new products and provide source data for weights and prices (e.g., special survey for Population and Social Statistics Division for poverty analysis; special surveys for International Comparison Program). - New products introduced into CPI basket when CPI rebased and new HIES results available. - Very small outlets such as kiosks are excluded from price collection; large and medium enterprises represented. - CPI basket comprises of 287 items for twelve main categories. - CPI price information is not derived from administrative or other available sources to supplement core compilation; all outlets and enterprises are private. - Mongolia uses nonprobability (judgmental) sampling for outlets; source justifies nonprobability sampling due to geographic nature and cost/difficulty of drawing new samples with each CPI update. - Geographically distributed regional offices improve coverage of price collectors. - Sources for CPI weights: - Continuous HIES covers complete geographic area; survey covers 936 households monthly, with a new sample each month. - Over twelve-month period 11,432 households are surveyed (represents a two percent sample of domestic households). - Two-stage sampling: - First stage: enumeration districts selected based on probability proportional to size; 104 enumeration districts sampled every month out of the 11,000 identified in the 2000 census. - Second stage: households selected by simple random sampling. - HIES excludes institutional dwellings (army barracks, hospitals, training colleges). - NSO does not make adjustments to alcohol and tobacco consumption expenditure. - Expenditure on illegal goods and services, own-account production for own final consumption, and informal market goods/services are included in HIES; owner-occupied housing consumption excluded. - Response and substitution: - 90 percent response rate. - Substitution ratio of 0.33 allowed for high-income households (for every ten high-income households, three high-income households can be selected as substitutes). - NSO holds meetings with consumer groups and business community only when significant change in CPI results occurs. - Recommendation (from source): - Include very small types of outlets such as kiosks in the CPI. - Source data adequacy: - Weighting information available from HIES for implicit rent of owner-occupants, but rental survey price information not considered sufficient to produce reliable estimate of average change in free-market rental prices for units similar to owner-occupants. - CPI group items collected from outlets over a two-week period; arithmetic average prices used in price relatives. - Prices collected every Friday for twenty main food groups (meat, vegetable, milk, and flour); other seventy-two food groups and other items collected once per month. - Recommendation (from source): - Include the imputation of rents for owner-occupied housing in the CPI by extending the sample of rental units so that they include those equivalent to owner-occupied housing. - Timeliness: - NSO data are timely to allow compilation of the city and the 21 provinces. - Assessment of source data: - HIES follow-up for refusals; substitution allowed for nonresponse. - No analyses of sampling errors nor adjustments for under-reporting of specific products such as alcohol and tobacco using imports data. - No sampling-error estimates for price collection due to judgmental selection of outlets; nonresponse problems uncommon for sampled outlets. - Recommendations (from source): - Conduct analysis of sampling errors for the HIES. - Cross-check consumption expenditure on alcohol and tobacco with supply data such as imports and retail trade. *Source: _cr08123 - 0.3 Relevance* ### 3.3 Statistical techniques ### 3.3 Statistical techniques ### 3.3.1 Data compilation and treatment of missing/seasonal items - City and regional prices are collected and passed to the NSO’s CPI unit where datasets are combined, weighted, and aggregated into city and regional indexes. - Temporarily missing and seasonal products: - Temporarily missing items: price carried forward. - Permanently disappeared items: price imputed; permanently unavailable item is replaced with a similar item. - Implicit imputation occurs for excluded seasonal products (fruits and vegetables basket consists mostly of permanently available, for the most part imported, items). - Quality adjustments: - No imputation for quality adjustments is made. - Comparable replacement method is currently used to adjust for quality; however, as small changes occur, the CPI index may be biased upward. - New goods: - New goods are not introduced into the sample as they gain market share; new goods are only introduced when there is a new HIES. - For the first time, the CPI basket includes mobile telephones. - The weights for the mobile telephone were price-updated from the last CPI 2000 = 100 series. - The communication equipments elementary aggregate was used to adjust the 2005 = 100 price series. - Recommendation: - Conduct implicit and/or explicit quality adjustment techniques for replacement items that have replaced permanently unavailable product. ### 3.3.2 Other statistical procedures (index formulae, aggregation, weights, and sources) - Elementary aggregation: - At the elementary level, an arithmetic mean or the ratio of average prices is used to calculate the index. - Short-term and long-term change measures: - Short-term price change is calculated and published based on monthly change, annual average prices of main goods in Ulaanbaatar, and price changes at the end of 2006. - Long-term price change is calculated since 1991, and historical chained index with 2000 = 100. - Index formula and linking: - The CPI is derived by short-term price relatives. - Aggregates for the new index are based on the modified Laspeyres formula. - The 2004 weight-based index was linked to the 2000 weight-based index. - The overlapping period was December 2005. - Reference periods and weight updating: - The price reference period is December 2005, and the prices for the weights have not been updated. - The weight reference period is 2004, while the price reference period is 2005. - NSO has plans to price update the weights in 2008 when the NSO compiles and disseminates the national CPI. - When the CPI was revised backward to 2000, the CPI staff made adjustments at the group level. - Although little time passed between the price and weight reference periods, price updating from the weight-reference period to the price-reference period may be necessary since there could have been significant changes in consumption patterns between the two time periods. - Source coverage and market monitoring: - Prices are not collected from parallel markets or underground economies even though HIES-derived expenditure estimates. - If expenditure weights from parallel markets are significant, NSO should consider monitoring prices in parallel markets. - Recording conventions: - No distinction in recorded prices if the consumer pays by credit or by cash; value recorded represents the economic cost to the consumer at time of purchase regardless of payment method. - Goods and services produced for own final consumption are included in the CPI. - Recommendation: - At next rebasing, consider adjusting the weights for price change to align with the price reference period, and adopt the geometric mean for elementary price indices. ### Validation, edits, and revision practice - Validation and edits: - Any unusual movements such as outliers in item indices are verified and traced back to the reporting outlet, if necessary. - Discrepancies arising from inconsistent imputation for missing data are routinely assessed. - Ranges of control edits are supported by the Excel (conditional statements) computer program to assess and validate the data. - Revision studies and policy: - The CPI is considered final when released; the CPI series are final when first released and are not subject to revisions. - The CPI basket and weights are updated when there is a new HIES. - Studies and analyses of the weight revisions are carried out when there is a new HIES and are used internally to inform statistical processes. - The impact of weight-updating studies is not disseminated in official statistical publications. - Recommendation: - Make available analyses and notes to the public whenever there are changes in the methodology, weights, etc. ### Serviceability highlights (periodicity, timeliness, consistency) - Periodicity and timeliness: - The CPI data is compiled monthly. - The monthly CPI is disseminated within one week after the end of the reference month and is published around the 10th of the following month, thus exceeding the GDDS requirements. - Consistency: - Aggregation structure is consistent from cell to item, item to group, and group to higher levels; city and regional aggregation are consistent. - Time series data are available for at least five years; aggregated historical time-series data are available back to 1991. - When there are revisions, long-term time-series are carried and revised back to 2000. - CPI data do not rely on administrative sources but could be verified with administrative data (Ministry of Transportation, Ministry of Communication), Chamber of Commerce, or other business statistics. - Recommendations: - Check to determine if the CPI data are consistent with other data sets from administrative sources, trade associations, or other business statistics. - Indicate the dates of the CPI data release in an advance release calendar and post this calendar on the NSO’s web site. ### Accessibility and metadata - Dissemination and formats: - CPI data are published in a clear manner with charts and tables in certain publications. - Datasets are published in consolidated format by food, nonfood, and services; further breakdowns by types and by aimags; chain-linked historical time series data disseminated in official publications and on the NSO’s web site. - Data are disseminated via official press releases and internet websites; data are simultaneously disseminated to all interested parties through a press release prepared by the NSO. - Advance release calendar and customized data: - There is no advance release calendar posted on the NSO’s web site: http://www.nso.mn. - Detailed customized tabulations are available upon request and for a fee if they satisfy disclosure requirements; procedures are explicitly provided in statistical publications. - Metadata: - Documentation on concepts, scope, classification, data sources, and methods of the CPI are available on the IMF Data Standards Bulletin Board (DSBB). These metadata were last updated in June 2007. - CPI methodological notes (in Mongolian) are available on the NSO’s web site. - There are no brochures, pamphlets, or newsletters about the CPI; background papers and working documents are not available. - Recommendation: - Make available to the public brochures, pamphlets, or newsletters about the CPI. *Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr08123.pdf* ### 0.2 Resources ### _cr08123 - 0.2 Resources ### 0.2 Resources — staff, facilities, computing resources, and financing - Staff levels: - The FARD has nine professional staff and the DMD has seven professional staff. - Staff levels are generally adequate for current compilation tasks, but additional staff would be necessary to improve quality or to perform new planned tasks, such as adoption of the methodology of the GFSM 2001. - All staff in the Treasury Department are rotated every year; this broadens knowledge but causes loss of experience in specific tasks. - Staff turnover outside the Treasury Department is not a major problem, but staff trained in the GFSM 2001 methodology have left without training replacements. - Salary levels in the civil service are considered generally adequate. - Training and support: - Qualifications are adequate; on-the-job training is provided and a mentor is assigned to new recruits. - Computing and facilities: - Sufficient resources allocated to computing technology for hardware and software. - Each staff member has a personal computer; additional computers maintain databases. - Technical support and backup systems are in place. - MOF office buildings provide comfortable working facilities but available space is becoming increasingly insufficient; a new bigger building is being constructed. - Office furniture and equipment are adequate. - Financing: - Funding for units compiling and disseminating GFS is included in the overall MOF budget and is considered secure. - Additional funding would be needed to increase human resources. - Recommendation: - Allocate more human resources to the compilation and dissemination of fiscal statistics, and emphasize training in international methodologies. ### 0.2.2 Measures to ensure efficient use of resources - Performance management: - A comprehensive performance evaluation system introduced for civil servants: annual contracts with supervisors establishing detailed outputs; semiannual review; good performers awarded cash bonuses. - The Administration Department of the MOF evaluates department-level performance monthly. - Outsourcing and cost estimation: - MOF seeks outside expert assistance regularly to improve statistical methodologies and systems. - Once a year an effort is made to estimate the cost of generating output at the division level. ### 0.3 Relevance - User needs: - Current fiscal statistics are mainly geared toward compliance with existing legislation. - The needs of senior MOF officials, other government agencies, and international organizations are reasonably met; additional information is provided on demand. - The needs of the public do not receive particular attention; no systematic actions to identify future public data requirements are undertaken. - Subannual and annual fiscal statistics are integral to the budget process and used to assess fiscal policy. - Recommendation: - Give increased attention to meeting the needs of data users outside the government and international organizations. ### 0.4 Other quality management - Quality focus and initiatives: - Management recognizes importance of quality statistics. - Two major initiatives with senior management support: introduction in 2002 of the Treasury Single Accounts (TSA) and introduction in 2005 of the Government Finance Management Information System (GFMIS). - International accounting standards are increasingly adopted for preparing government financial statements. - Monitoring quality: - Compliance with existing accounting and reporting rules is closely monitored. - Annual fiscal statistics are audited before publication. - Processes to monitor and improve the quality of fiscal statistics are not fully in place. - Planning for quality: - MOF should incorporate international best practice, such as implementation of the GFSM 2001, into its statistical program. - Participation in the GDDS is a significant step, but a more proactive approach is required. - Timely follow up on recommendations of technical assistance missions and on recommendations in this assessment would strengthen quality. - Recommendations: - A more explicit and systematic approach to improvements in the quality of data should be taken by the senior MOF management. - Recommendations of technical assistance missions should be introduced according to an explicit timetable. ### 1. Assurances of integrity — Professionalism, transparency, and ethical standards - Professionalism: - The Law on Statistics (Article 4) states independence as a principle; the chairman of the National Statistical Board is appointed by and reports to Parliament. - A culture of professionalism is adhered to; no outside interference with statistical results is permitted. - Recruitment is competitive and candidates must pass competency tests; promotion is partly performance-based and partly seniority-based. - Participation in international seminars and courses is supported; workplace processes that promote professionalism are limited; research and analysis are not encouraged; MOF supports higher education for staff. - Source and dissemination decisions: - Choices of source data, statistical techniques, and dissemination timing are based solely on statistical considerations and existing legislation. - Dissemination of information deemed confidential by appropriate authorities is illegal. - Right to comment: - The MOF is entitled to comment on misinterpretation or misuse of its statistics; senior officials typically provide such commentary. - A brief explanation of main developments in budget execution is provided quarterly on radio; the MOF’s Public Relations Officer monitors media coverage regularly. - Transparency: - Legislation is publicly available; the Ministry of Justice website posts laws and regulations. - Senior MOF officials have access to fiscal statistics prior to public release; prior access is identified in Table C. Data Integrity and Access by the Public of Mongolia’s metadata on the IMF’s DSBB and the MOF’s web site. - The responsible agency for compiled data is clearly identified and requests attribution when its statistics are used; MOF is the only data-producing agency for fiscal statistics. - Major methodological or source changes are usually contained in legislation or announced when introduced. - Ethical standards: - Civil Service Law includes provisions on proper behavior incorporated into contracts; civil servants must take an oath. - Staff are not reminded periodically of ethical standards. ### 2. Methodological soundness — concepts, scope, classification - Concepts and migration to GFSM 2001: - Concepts and definitions generally follow A Manual on Government Finance Statistics 1986 (GFSM 1986). - No formal decision has been taken to adopt a “migration path” from GFSM 1986 to GFSM 2001, but authorities intend to adopt the new framework. - Mongolia is participating in the IMF Statistics Department pilot study to prepare GFSM 2001-based analytical tables for Article IV consultation reports. - Recommendation: A formal decision to adopt the GFSM 2001 methodology should be taken by senior MOF management, and a migration path developed and implemented. - Institutional scope: - Central Government (1+2+3): - 1. Budgetary central government: Cabinet Office, Constitutional Council, General Prosecutor’s Office, Ministries, Parliament, President’s Office, Supreme Court, Government Agencies (except self-financed), Culture and Arts Fund, Construction Department, Employment and Promotion Fund, Environment Fund, Environment Protection Fund, Foreign Citizens and Citizenship Issues Department, Fuel and Energy Authority, Intellectual Rights Department, Oil and Gas Department, Postal and Telecommunications Department, Road, Transportation and Tourism Department, Road Fund, Service of Diplomatic Missions Department, State Center of Standardization and Metrology, State Citizens’ Registration and Information Center, State Property Committee, and Tourism Fund. - 2. Extrabudgetary units: Grains Fund, KR-1 Fund, KR-2 Fund, Herd Protection Fund, Assistance of Disabled Citizens Fund, Departments Development Fund, Ministry of Food and Agriculture Fund (USA1), Ministry of Food and Agriculture Fund (USA2), Ministry of Food and Agriculture Fund (Ukraine), and Mongolia Development Fund. - 3. Social Security Funds: Health Insurance Fund, Industrial Accidents and Occupational Disease Insurance Fund, Pension Insurance Fund, Social Benefits Insurance Fund, and Unemployment Insurance Fund. - Local Governments: - 1. City and nine districts of Ulaanbaatar - 2. Provinces/aimags (21) - 3. Districts/soums (331) - General Government Sector = central government + local governments. - Coverage and dissemination: - Subannual and annual fiscal statistics are compiled and disseminated for general government and its subsectors, except extrabudgetary units; thus fiscal statistics do not cover the whole central government and general government institutional sector. - The MOF compiles and disseminates a Monthly Report with one table breaking down revenues, expenditures, and financing for central government, local governments, and general government on a cumulative basis with a comparison to the similar period for the previous year; the Mongolia Development Fund (an extrabudgetary unit) is reported separately. - Monthly report for end-of-quarter months includes a table with a functional classification of expenditure and a brief note explaining main developments. The monthly report is posted on the MOF’s web site (www.MOF.pmis.gov.mn) and a hardcopy is distributed to thirteen institutions. - An Annual Report (Budget Outturn) is compiled with summary tables like the monthly report and many detailed budget execution tables; summary and selected tables and text are posted on the MOF’s website and printed in hardcopy. Both monthly and annual reports are available only in Mongolian. - Central government debt data are compiled but are not disseminated in either report — identified as a major shortcoming. - Other publishers: - BOM and NSO also disseminate fiscal statistics on their web sites (www.mongolbank.mn and www.nso.mn) and hardcopy publications. - BOM’s Monthly Statistical Bulletin includes one table with summary fiscal aggregates and a time series; BOM’s Annual Report includes a summary table for revenues, expenditures, and financing for general government and an appendix table of main economic indicators. BOM publications are available in Mongolian and English. - NSO’s Monthly Bulletin of Statistics includes several tables on fiscal statistics; the annual Mongolian Statistical Yearbook includes several tables for the last four years. NSO publications are available in Mongolian and English. - Central government debt is not disseminated in BOM or NSO publications. - Recommendations: - Identify data sources for extrabudgetary units and begin compiling fiscal statistics for these units; incorporate and consolidate these statistics with central government and general government statistics. - Disseminate data for central government debt. - Transactions coverage and classifications: - Data are generally available to the standards specified in GFSM 1986 tables: summary table of major components, government revenue and grants, classification of the functions of government, and economic classification of government expenditure and lending minus repayments. - Data for financing combine financing by type of debt instrument and by type of debt holder. - Data are available but not disseminated for general government gross debt. - Fiscal statistics for the monthly report are based on essentially complete coverage; missing information is estimated and later replaced when actual information becomes available; same practice applies to the annual report. - Classification/sectorization issues: - Institutional sectors are generally defined per the 1993 SNA (and thereby GFSM 2001), except extrabudgetary units are excluded from central and general government coverage. - Classifications for subannual and annual fiscal statistics follow GFSM 1986 broadly, with differences: financing classification follows a national presentation combining type of debt instrument and debt holder. - Major classification issue: the item "banking system net credit" is calculated as a residual and includes the statistical discrepancy between revenue minus expenditure and financing; the change in cash balances for the period is not identified separately. - Information is available for the change in cash balances in the TSA and should be presented as a separate item; a separate item denominated "statistical discrepancy" should be introduced and, if significant, investigated. - Recommendations: - Use the GFSM 1986 classifications for financing. - Present in the monthly and annual report the information available for the change in the cash balances in the TSA as a separate item, and introduce a separate item denominated statistical discrepancy. *Source: _cr08123 - 0.2 Resources* ### 2.4 Basis for recording ### 2.4 Basis for recording ### Basis for recording (section 2.4) - Market prices are used to value flows and stocks. - Flows are valued based on the amount of payments in cash. - Gross debt is valued at issue price for Treasury bills and nominal value for loans. - Flows denominated in foreign currency are converted to national currency using the exchange rate established by the BOM for the date the transaction took place. - The outstanding external debt is converted to national currency using the BOM for the end of the period. - Recording is done on an accrual 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. - All transactions are shown on a gross basis, except for financing transactions and corrective transactions which are shown net. ### Accuracy and reliability (sections 3.1–3.5) - Source data - Source data are obtained from comprehensive data collection programs that take into account country-specific conditions. - Data sources are complete to allow the compilation of fiscal statistics for the general government sector and its subsectors (except for extrabudgetary units) on a monthly, quarterly, and annual basis. - There is no comprehensive register of individual public sector units. Institutional and geographical coverage is complete. - Reports are generated automatically from data reported by budgetary units and have been field-tested. - Data sources reasonably approximate the definitions, scope, classifications, valuation, and time of recording required and permit consolidation with other subsectors. - The monthly report is prepared by the seventh day of the following month. - Budgetary agencies must submit their reports by the second day and the provinces/aimags by the fifth day. - Reporting units are aware of the deadlines set for reporting, and the timetable is usually met. - Assessment of source data (3.2) - Monthly reports from budgetary agencies and provinces are cross-checked against data in the GFMIS. - Data inconsistencies and out-of-trend values are confirmed with reporting units. - Assessments balance accuracy and timeliness. - Statistical techniques (3.3) - Compilation procedures minimize processing errors. - Missing data are estimated by using “plan” data, which are later replaced by actual data when they become available. - Monthly data are preliminary when first disseminated, but are not replaced by final data afterwards. - Annual data are final when first disseminated. - All data are corrected when errors are detected if material; corrections are made on the cumulative data, not the corresponding month, although monthly data are available on a discrete basis. - Compilation procedures are not documented. - The discrepancy between subannual and annual data is not removed; however, this discrepancy has been small the last two years. - Recommendations (from 3.3) - Replace preliminary monthly data by fiscal (audited) data once the latter become available. - Present data in tables on a discrete basis instead of a cumulative basis. Correct errors in the corresponding period. - Document compilation procedures. - Remove discrepancy between sub-annual and annual data. - Other statistical procedures (3.3.2) - Data collected on a cash basis is cross-checked against data on receivables and payables. - Bridge tables have been constructed to transform data in GFSM 1986 format to GFSM 2001 format. - Validation and discrepancies (3.4) - Intermediate results are generally not available for fiscal statistics. - Large fluctuations or discrepancies are investigated. - Statistical outputs are checked horizontally and vertically; values outside expected ranges are investigated. - The sum of components is verified against the total; the sum of subsectors is verified against the total for the sector. - External debt data are compared with creditor information in a regular manner. - Fiscal data discrepancies among national compilers on particular items are not regularly reconciled. - Recommendation: Reconcile on a regular (i.e., monthly or quarterly) basis fiscal data discrepancies among national compilers, particularly with monetary data. - Revision studies (3.5) - There are virtually no revisions to fiscal statistics, except for the correction of errors and the replacement of estimates by actual data. - Revision studies are not conducted on a routine basis. ### Serviceability (section 4) - Periodicity and timeliness (4.1) - Statistics for central government budgetary operations are compiled and disseminated monthly. - Statistics for central government debt are compiled monthly but are not disseminated. - The periodicity of fiscal statistics meets the GDDS recommendation of quarterly dissemination for central government budgetary operations, but not for central government debt. - Because statistics for central government budgetary operations are disseminated on a cumulative basis, data for individual months require subtracting data from consecutive months. - Monthly statistics for central government budgetary operations are disseminated on the tenth of the following month. - Annual statistics for central government debt are not disseminated. - Information is available to compile and disseminate central government debt within a timeframe that would easily meet the GDDS recommendation. - Consistency (4.2) - Concepts, definitions, and classifications for producing subannual and annual fiscal statistics by the MOF are the same. - For both statistics, the deficit/surplus does not equal the financing; the discrepancy is incorporated into the item banking system net credit. - 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 equal transfers received; and interest in the functional and economic expenditure are equal. - Subannual and annual fiscal statistics have been consistent the last two years; the TSA and the GFMIS are main reasons for improvement. - Consistent time series for annual fiscal statistics are available for an adequate period. - Unusual changes in economic trends are explained in commentaries included in the monthly and annual reports. - The MOF is the only data-producing agency that compiles fiscal statistics; MOF data are used for compiling national accounts and balance of payments statistics. - Differences exist with the financing data from the monetary accounts, which are not reconciled on a regular basis; past differences have been due to misclassifications of accounts by commercial banks and errors in recording specific transactions. - Recommendation: The MOF and the BOM should reconcile bank financing data on a monthly basis. - Revision policy and practice (4.3) - Revisions follow no formal schedule; when revisions occur they are not made known to the public. - At dissemination users are not informed whether data are preliminary or final (only monthly fiscal statistics for December indicate that the data are preliminary). - Recommendation: Data in the monthly reports and the annual report should be clearly identified as being preliminary or final. - Revision studies are not conducted; thus, none are made public. ### Accessibility (sections 5.1–5.3) - Data accessibility (5.1) - Fiscal statistics are generally presented according to GFSM 1986 standards for revenues and expenditures, but not for financing. - The monthly report presents cumulative data for the current year and the corresponding data for the similar period from the previous year. - The annual report presents time series for four or five years. - Presentation clarity could be enhanced by the use of more graphs and charts. Commentaries on current period developments are included in publications. - Dissemination media and format: fiscal statistics are disseminated by the MOF, BOM, and NSO on their websites. - The MOF distributes a limited number of reports in hardcopy; the BOM and NSO distribute publications more broadly in hardcopy. - The most recent versions of the NSO publications could only be accessed on its website for a fee. - The NSO publishes in the press monthly commentaries on socioeconomic developments, which include budget developments. - There is no advance release schedule communicated to the public; an internal MOF schedule is usually observed. - Recommendation: Introduce an advance release calendar for fiscal statistics. - Fiscal statistics are made available to all users simultaneously and without preferential treatment, except for previous access by senior MOF officials discussed under 1.2.2. - Fiscal statistics not routinely disseminated are made available upon request to selected users; availability and procedures are not made known. - Metadata accessibility (5.2) - The MOF publishes on its website the GDDS metadata posted on the IMF’s DSBB. - The GDDS metadata for the fiscal sector was last updated in August 2003 and remains essentially accurate, but the name of the contact person needs to be updated. - Recommendation: Update the name of the contact person for the fiscal sector in the GDDS metadata posted on the IMF’s DSBB. - The only information available on sources and methods used to compile fiscal statistics is the GDDS metadata on the IMF’s DSBB and on the MOF’s web site. - The laws relevant to the budget and financial management are publicly available. - Assistance to users (5.3) - No contact point for fiscal statistics is identified in MOF publications. - Contact persons and contact details for each subject field are publicized in the GDDS metadata on the IMF’s DSBB and the MOF’s website. - Limited assistance is provided to general public users of fiscal statistics. - Recommendation: Identify a contact point for fiscal statistics in MOF publications. - The MOF does not have a catalog of publications. Its publications are made available free of charge. - The NSO provides on its website a list of its publications and their price in electronic and hardcopy format. *Source: _cr08123 - 2.4 Basis for recording.* ### 3. Accuracy and reliability ### _cr08123 - 3. Accuracy and reliability ### Accuracy and reliability — source data and assessment - 3.1 Source data - No source data for extrabudgetary units. - No register of individual public sector units. - 3.2 Assessment of source data - X (assessment marker from source). ### Statistical techniques, validation, and revisions - 3.3 Statistical techniques - Monthly preliminary data not replaced by final data. - Compilation procedures not documented. - The discrepancy between subannual and annual data is not removed. - 3.4 Assessment and validation of intermediate data and statistical outputs - Fiscal data discrepancies among national compilers are not reconciled. - 3.5 Revision studies - Revisions to fiscal statistics are few. - No revision studies are conducted. ### Serviceability - 4.1 Periodicity and timeliness - X (assessment marker from source). - 4.2 Consistency - There are inconsistencies between fiscal statistics and the monetary accounts. - 4.3 Revision policy and practice - Revisions do not follow a regular schedule. - Data are not adequately identified as being preliminary or final. ### Accessibility - 5.1 Data accessibility - There is no preannounced schedule for the release of statistics. - Statistics not routinely disseminated are made available only to selected users. - 5.2 Metadata accessibility - Metadata not adapted to level of intended audience. - 5.3 Assistance to users - No contact point for fiscal statistics is identified in MoF publications. - Limited assistance is provided to general public users of fiscal statistics. - The MOF does not have a catalog of publications. ### Monetary statistics — 0. Prerequisites of quality (selected findings) - 0.1 Legal and institutional environment - The Law of Mongolia on Central Bank (Bank of Mongolia) gives the BOM the mandate for the collection, processing, and dissemination of monetary statistics. - Article 34 stipulates: - “(1) The Bank of Mongolia shall publicize information on changes in the implementation and instruments of monetary policy, and on the state of monetary developments and the financial market every quarter; - (2) The Bank of Mongolia shall issue a monthly bulletin on monetary statistics; - (3) The Bank of Mongolia shall have the right to require information, reports and indices from banks, individual and legal entities in order to compile the information it must provide under paragraphs 1 and 2 of this article; and - (4) The Bank of Mongolia may publish statistical information and reports in compliance with the laws.” - Monetary statistics are compiled exclusively by the BOM; no conflict exists with other data-producing agencies. - 0.1.2 Data sharing and coordination - The Research Division compiles monetary statistics by integrating central bank balance sheet data and other depository corporations’ balance sheet data from commercial banks. - Adequate arrangements exist for coordination with the Accounting and Information Technology Department, commercial banks, the BOM’s International Division, and the MOF. - Cooperation with the Supervision Department includes mutual consultation on source data and planned chart of accounts updates. - 0.1.3 Confidentiality - The Law of Mongolia on Central Bank mandates confidentiality of individual reporters’ data (Article 29). - Access to individual bank data is restricted to staff who require them; computer system protected by user IDs and passwords. - Only aggregated banking data are allowed to be published. - 0.1.4 Reporting mandate and penalties - The Banking Law of Mongolia requires monthly financial statements from banks (Article 28). - Article 49 authorizes fines: - up to 1,000,000 togrogs for banks; - up to 250,000 togrogs for bank employees and officers for failure in submission of reports. - All banks report data to the BOM; no bank has ever refused data. ### Monetary statistics — 0.2 Resources and recommendations - 0.2.1 Staffing and resources - Monetary statistics team: three personnel (one Senior Economist and two Economists); a fourth economist position vacant. - Each team member has one personal computer; team shares one printer. - Present staff and computer capacity adequate for routine monthly compilation covering commercial banks only, but not adequate for developmental projects such as incorporating nonbank depository corporations. - BOM’s salary levels are competitive with public administration conditions in Mongolia. - Recommendation: - Allocate additional staff to work on further development of monetary statistics. - 0.2.2 Efficiency measures - Performance evaluated quarterly and annually. - Periodic reviews of work processes to revise priorities. - Internal Auditing Department audits the Monetary Policy and Research Department annually. ### Monetary statistics — 0.3 Relevance and 0.4 Quality management - 0.3.1 Relevance monitoring - The BOM posts a contact list (e-mail addresses) to solicit user feedback; limited feedback received. - Research Division participates in international seminars and meetings (example: Seminar on Implementing the Balance Sheet Approach to Macroeconomic Surveillance, Ulaanbaatar, July 2-5, 2007). - 0.4.1–0.4.3 Quality processes - Training provided through the Bankers’ Training Centre (BTC) and IMF technical assistance when needed. - Monetary data revisions undertaken to correct errors (example: revision to 2005 related to misreporting of central government deposits by certain commercial banks). - Pre-release data checks conducted by management. - Research Division can access outside consultants for revisions and improvements. - Recent work program led to more detailed sectorization and reduction in discrepancy between monetary and fiscal data sets. ### Assurances of integrity — professionalism, transparency, ethics - 1.1 Professionalism - Law establishes BOM professional independence (Article 26): governor and deputies appointed by State Ikh Khural for six-year terms with specified discharge conditions and one-year post-employment restrictions on occupying commercial bank management positions. - Recruitment and promotion consider expertise in statistics; staff participation in international training and expert meetings supported. - Decisions on sources, statistical techniques, and dissemination are based solely on statistical considerations. - The BOM is entitled to comment on erroneous interpretation and misuse of statistics; no published responses available. - 1.2 Transparency - The BOM’s web site posts the Law of Mongolia on Central Bank presenting terms and conditions for compiling monetary statistics. - Internal governmental access to monetary statistics prior to release does not exist. - Monetary statistics are clearly identified as produced by the BOM; NSO reproduces them. - The BOM does not give advance notice of major changes in methodology, source data, and statistical techniques. - 1.3 Ethical standards - Staff behavior guidelines exist in the Law and a circular on staff rules and regulations (Article 29 lists prohibited activities). - The Law is disseminated on the BOM web site; circulars distributed to staff. ### Methodological soundness — concepts, scope, classification - 2.1 Concepts and definitions - BOM broadly follows MFSM concepts and definitions but does not compile a Depository Corporations Survey as recommended; instead compiles a Monetary Survey consolidating central bank and deposit money banks. - Deviations from MFSM are kept under review. - Recommendation: - Adopt the SRF as a vehicle for reporting monetary data both within the financial system and to the IMF. - 2.2 Scope - Mongolia’s depository corporations: (i) BOM—the central bank; (ii) 16 operating commercial banks; and (iii) over 970 registered savings and credit unions (of which 128 have been licensed to conduct operations). - The BOM’s Monetary Survey covers only BOM and commercial banks, excluding savings and credit unions. - Deposits of savings and credit unions are believed to be 8 to 10 percent of those collected by commercial banks. - Recommendation: - Develop a Depository Corporations Survey by expanding coverage of the Monetary Survey to include savings and credit unions. - 2.3 Classification/sectorization - BOM’s sectorization divides residents and nonresidents and subdivides resident sector into seven subsectors: central government; local government; other public sector (public nonfinancial corporations); private sector (other (private) nonfinancial corporations); other financial corporations; individuals (households); other (nonprofit institutions serving households). - Commercial banks use citizenship rather than centre of economic activity to determine residency status of clients. - Financial instruments classification broadly follows MFSM; deviations are kept under review. - Classification errors identified: - Loans to private mining companies included in unclassified assets instead of claims on other (private) nonfinancial corporations. - Government lending funds included in unclassified liabilities instead of their own category. - Accrued interest on deposits, loans and securities treated as part of unclassified assets or liabilities rather than incorporated into the outstanding financial asset or liability. - Treatment of repurchase agreements is consistent with international standards: treated as loans collateralized by central bank bills (i.e., not as changes in ownership of bills). *Source: _cr08123 - 3. Accuracy and reliability* ### 2.4 Basis for recording ### 2.4 Basis for recording ### Valuation and recording practices - Market prices are used to value flows and stocks; in the absence of market-based prices, fair values are recommended. - The BOM revaluation and valuation practices: - Monetary gold assets are revalued on a daily basis using an international market price from Reuters and the mid-point exchange rate. - Foreign securities are revalued on a daily basis by taking the mid-point exchange rate; no revaluation is done for changes in foreign currency–denominated prices of the securities themselves. - All other foreign currency positions are revalued on a daily basis by taking the mid-point exchange rate. - Issue of central bank bills to commercial banks is valued at the discount price obtained in the interbank auction market. - Commercial banks’ valuation practices: - All foreign currency positions are revalued on a daily basis by taking the mid-point exchange rate. - Holdings of central bank bills are valued at the discount price obtained in the interbank auction market; reported to the BOM at nominal price with discount amount separately identified. The Research Division uses the discount price data in the commercial banks’ survey. - Securities held for trading are valued at market prices; securities held to maturity for investment purposes are booked at cost value. - Loans are recorded at book value by both BOM and commercial banks; provisions for expected losses from defaults are shown separately. - Shares and other equity: assets valued at market prices; liabilities at book value. ### Accrual accounting - Recording is done on an accrual basis. - Accounting data used for monetary statistics are based on accrual accounting, and interest on financial assets or liabilities is treated as accruing continuously during the accounting period. ### Grossing and netting practices - Accounting data for the BOM’s Monetary Survey are collected on a gross basis; claims on a particular transactor or group are not netted against liabilities to that transactor or group, with one exception. - Exception: financial derivatives with the nonresident sector in the central bank’s survey — Research Division receives only net data from the Accounting and Information Technology Department and includes the BOM’s net foreign position in financial derivatives in the Monetary Survey. This does not conform to the MFSM methodology, which recommends gross treatment. - Commercial banks report gross data on both assets and liabilities in financial derivatives; the Research Division includes these on a gross basis, conforming to MFSM methodology. - Certain analytical aggregates are presented on a net basis for analytical usefulness (Net Foreign Assets, Net Claims on Central Government, other items (net)); underlying data are also shown on a gross basis. - Credit to various sectors is shown in gross terms; provisions against bad and doubtful debt are not netted against credit, consistent with MFSM. ### Source data coverage and reporting framework - BOM maintains a comprehensive and current register of commercial banks; coverage of the banking sector is complete. - The Research Division’s source data sets for the Monetary Survey: - (i) BOM balance sheet data provided by the Accounting and Information Technology Department; - (ii) balance sheet data reported by commercial banks to the Research Division. - A new chart of accounts introduced in 2003 (available in Mongol only) has been adopted for reporting to the Supervision Department and the Research Division, but not yet universally for bank-prepared balance sheets. - The new chart of accounts provides key breakdowns and accounts, including: - Loans divided by sector/institution of the borrower (Account group #160000) with sectorization: commercial banks (resident and nonresident); nonfinancial public corporations; financial corporations (insurance companies, securities companies, other nonbank financial institutions, and savings and credit unions); nonfinancial private corporations; households; and others. No government sector is included in loans. - Loans divided by currency of denomination—domestic or foreign—and by degree of risk—past due, substandard, doubtful, and loss. - Deposits classified by terms and by sector/institution of the holder (Account group #210000 to 220000); central government and local government are separately identified as depositors. - Accrued interest receivable accounts: Account #181100, 181200, 181300, 181400, 181500, 181600, and 81700. - Accrued interest payable accounts: Account #261100, 261200, 261300, 261400, 261500, 261600, and 261700. - Securities on the asset side divided by purpose—trading securities and investment securities—and further subdivided (government securities, BOM securities, shares, promissory notes, bills of exchange, foreign securities, securities held under repos, and others). - Identified information gaps in the chart of accounts: - Loans to nonresident natural persons are not separately identified (resident/nonresident distinction is otherwise recognized). - Deposits of nonresident natural persons are not separately identified. - Accrued interest receivable on loans (Account #181300) lacks breakdown by the sector that has taken the loan. - Commercial banks’ stocks, bills of exchange, and promissory notes (Account #151130, 151140, and 151150) lack issuer-sector breakdowns. - Repurchase agreements: only a single asset account (Account #151170) and a single liability account (Account #223800) exist, without distinction whether counterparties are the BOM or other commercial banks. - Supplementary information collected by the BOM from commercial banks addresses the last two gaps; the chart of accounts complemented with supplementary data broadly meets MFSM source data needs. ### Timeliness of source data - BOM compiles its balance sheet data on a daily basis; balance sheet data for the reference month are available with a lag of only two to three days. - Commercial banks report source data to the BOM within one week from the reference date. - Data on central bank and other depository corporations’ surveys are disseminated once every month, conforming to GDDS monthly periodicity. - Data are simultaneously disseminated within three weeks after the end of the reference period. ### Assessment, validation, and statistical practices - The BOM routinely assesses source data accuracy via automated spreadsheets for cross-checking; out-of-trend movements or high-value transactions prompt confirmation from reporting banks or the Accounting and Information Technology Department. - The BOM does not use statistical estimation techniques to supplement source data for the monetary survey; compilation is exclusively based on balance sheet data of the BOM and commercial banks. - Intermediate results are validated against related information when applicable (for example, using data on issuance of Treasury bills from the MOF to validate holdings reported by commercial banks). - Statistical discrepancies are assessed and investigated; classification/sectorization errors or omissions are investigated by calling reporting commercial banks for explanation and correction (example: a misreported discounted loan was corrected after inquiry). - No reconciliation is attempted with implied flows from government budget data and balance of payments statistics because no financial transactions data are reported. - Monetary and balance of payments statistics are consistent in source data, but differ in net foreign assets due to use of end-period exchange rates in monetary statistics versus average period exchange rates in balance of payments statistics; these differences are reconcilable. ### Consistency, discrepancies, and reconstruction of time series - Discrepancies exist between: - The BOM’s data on its credit to commercial banks and commercial banks’ data on their borrowing from the BOM; - The BOM’s and commercial banks’ data on their deposits with the BOM; - The BOM’s data on issuance of central bank bills to commercial banks and commercial banks’ data on holdings of central bank bills. - Causes of discrepancies: different recording times and different exchange rates used for conversion of foreign currency components into domestic currency. - Recommendation: - Harmonize interbank positions within monetary statistics. - When source data, methodology, or techniques change, the BOM reconstructs historical series as far back as reasonably possible. Example: when sectorization was revised in 2006, the BOM revised series beginning January 2004. - The BOM identifies and explains main breaks in component time series and provides adjusted data on its website if a change in the statistical system caused discontinuity. ### Consistency with other frameworks and notable discrepancies - Monetary statistics have not been fully consistent with government budget data; bank credit to central government numbers have differed by moderate amounts in most recent years. - A large discrepancy for 2005: monetary data on bank financing amounted to only about half of comparable fiscal data, implying a discrepancy equivalent to 3.4 percent of GDP. - Primary causes: (i) an unspent cash appropriation misclassified by the MOF as negative bank financing; (ii) government deposits misclassified by commercial banks. - Authorities implemented measures to resolve the problem, but monetary statistics and government budget data continued to show large discrepancies. - Monetary statistics and balance of payments statistics are consistent in using the same source data; net foreign assets differ due to exchange rate conversion practices (end-period vs. average period) but are reconcilable. ### Revisions policy and practices - Revisions are primarily made to correct errors; revisions are done on a random basis with no regular cycle. - At dissemination, users are informed of preliminary or revised nature of monetary data. Example footnote for a revision: “Data are revised according to the changes in budget fund recording (December 2005–August 2006).” - The BOM does not prepare routine studies on revisions for monetary statistics. *Source: 2.4 Basis for recording (extracted from the provided IMF content).* ### 5. Accessibility ### _cr08123 - 5. Accessibility ### 5.1 Data accessibility - Presentation and comparability - Statistics are presented to facilitate proper interpretation and meaningful comparisons (layout and clarity of text, tables, and charts). - The BOM disseminates monetary statistics in clearly laid out tables enabling construction of time-series data. - Monetary data and key components are disseminated with various levels of detail: - Loans: by borrowing sector, by quality of loan (performing versus nonperforming), and by commercial bank. - Deposits: by holding sector, by maturity (current account versus term deposits), and by currency of denomination. - Dissemination of monetary data is frequently accompanied by a summary on recent economic and financial developments. - Dissemination media and format - Monetary statistics and the monthly report are posted on the BOM website (http://www.mongolbank.mn). - Monetary statistics are also disseminated in BOM publications, especially Monthly Statistical Bulletin. - Release schedule and simultaneous availability - A preannounced schedule for releasing monetary data has been posted on the BOM website (http://www.mongolbank.mn). - Monetary statistics are made available to all users at the same time via the BOM website (http://www.mongolbank.mn). - The BOM does not brief the press in advance; the press receives monetary statistics simultaneously with other users. - Non-routinely disseminated statistics - Statistics not routinely disseminated are made available upon request. - Example: a private individual requested data on the real value of commercial bank deposits; the Research Division responded positively. - Customized tabulations can be provided without fee, although so far no such requests have been received. ### 5.2 Metadata accessibility - Documentation and standards - The IMF website established for disseminating GDDS metadata, the DSBB, provides a comprehensive sources and methods document on the BOM’s monetary statistics. - The NSO website provides a link to the GDDS metadata. - GDDS metadata on monetary statistics are reviewed and updated on a regular basis—the most recent update was posted in May 2007. - Levels of detail - The metadata mentioned above are the only ones that are disseminated; there are no alternative metadata with levels of detail adapted to the needs of the audience. ### 5.3 Assistance to users - Contact points - BOM publications and its website (http://www.mongolbank.mn) provide contact points for monetary statistics. - Catalogs of publications and services - No catalog of publications, documents, and other services (including information on any charges) is available from the BOM. ### Data Quality Assessment Framework: Accessibility (summary excerpts) - Table 4: Mongolia: Data Quality Assessment Framework (July 2003): Summary of Results for Monetary Statistics (Compiling Agency: Bank of Mongolia) - Key to symbols: NA = Not Applicable; O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; SDDS = Complies with SDDS Criteria. - Assessment: Element 5. Accessibility - 5.1 Data accessibility: O - 5.2 Metadata accessibility: LO - Comment: There are no alternative metadata with levels of detail adapted to needs of audience. - 5.3 Assistance to users: LO - Comment: There is no catalog of the BOM’s publications and other services to users. ### Balance of payments statistics — accessibility and related prerequisites (selected relevant points) - Legal and institutional responsibility - Compilation responsibility assigned to the Balance of Payments and Research Unit of the International Department of the BOM. - Law of Mongolia on Central Bank (Bank of Mongolia) Article 28(2) authorizes the BOM to collect statistics for its operational purposes (available in Mongolian and English at http://www.mongolbank.mn/web/guest/about_the_bank/law). - An agreement dated March 12, 1996 assigned responsibility for compilation of balance of payments statistics to BOM; responsibility for forecasting was assigned to the Ministry of Finance. - Data sharing and coordination - Data sharing and coordination among data-producing agencies are reasonably adequate, with cooperation through a Working Group on Trade Statistics (established October 2002) and a Working Group on Balance of Payments Statistics (re-established in 2005). - Members of the balance of payments working group include BOM; MOF; the Ministry of Industry and Trade; NSO; the Customs General Administration; FIFTA; the Ministry of Road, Transport and Tourism; the Civil Aviation Authority of Mongolia; the General Authority for Border Protection; and representatives of selected large corporations. - The Working Group on Balance of Payments Statistics meets annually and fosters more frequent informal contact. - Confidentiality and data security - The Law on Statistics covers data confidentiality and stipulates penalties for divulging individual enterprise data. - Law of Mongolia on Central Bank (Article 29, Paragraph 1.3) prohibits BOM employees from disclosing official information supplied by banks, legal persons, and individuals except as stated in legislation; staff sign confidentiality statements on joining BOM. - Completed questionnaires are kept in locked cupboards with limited access; confidential computer data are protected by passwords. - Reporting mandate and response encouragement - Legal mandate sources: Law of Mongolia on Central Bank (1996); Banking Law of Mongolia (as revised in 2003); Foreign Investment Law of Mongolia 1991 (as revised in 2002); Law on Statistics 1997–98 (as revised in 2004). - Legislation includes penalties for failure to report; since 2002 bank customers are required to provide information on the purpose of their transactions. - The Working Group assists in contacts with data-supplying ministries, agencies, and major economic operators. - Assistance is provided with enterprise survey questionnaire completion; some follow-up for nonreporters exists but more intensive follow-up is likely required due to lower response rates for BOM enterprise surveys compared with NSO enterprise surveys. - Resources and recommendations relevant to accessibility and user services - Balance of Payments and Research Unit has seven positions; only four staff are currently working on balance of payments statistics; three positions are vacant with recruitment under way. - Staff turnover has been extremely high; two current staff have one year of balance of payments experience, the other two have even less. - All staff have Bachelor’s or Master’s degrees in banking, finance, or economics. - All staff have personal computers; compilation is currently done in Excel. - BOM has introduced data collection by e-mail; hard-copy signed and stamped versions are also collected. - BOM plans to replace existing methods by electronic data collection and sees scope for on-line reporting, which would require specialized IT support. - Recommendations - Fill vacant staff positions. Consider creating one or two statistical officer grade positions to specialize in surveys and data processing. - Link future improvements in balance of payments statistics to the provision of additional staff. - Provide specialized computer support suitable for use in large-scale statistical collection systems, such as on-line reporting and a data processing system built on a database. *Source: _cr08123 - 5. Accessibility* ### 0.4 Other quality management ### 0.4 Other quality management ### Processes to focus on quality - The importance of data quality is clearly recognized by the BOM International Department. - The BOM provides training for its staff through the Bankers’ Training Centre in Ulaanbaatar. - The budgetary allocation for statistical programs provides an infrastructure for quality by recognizing trade-offs, economies of scale, and interrelations between datasets. - Priority is placed on procedures to ensure quality: - Documentation of internal procedures is extensive in working notes and annotations on spreadsheets so that staff can follow procedures in the future and understand the background to them. - Documentation of definitions is provided to data suppliers (Balance of Payments Sources and Methods Manual and Manual on the International Transactions Reporting System). - Training and feedback to data suppliers focus on quality in the statistical process. - The BOM strives to improve quality by revising balance of payments data to correct errors and shortcomings that have been found. ### Processes to monitor the quality of the statistical program - To improve data quality obtained from banks through the international transactions reporting system (ITRS), at least once a year the BOM International Department organizes a course for commercial bank staff who prepare ITRS reports, to give them a better understanding of the ITRS and its methodology. - BOM staff maintain close relationships with commercial banks, including answering telephone calls and e-mails from ITRS reporters on definitions and classifications, and contacting reporters to clarify and check data submitted. - The BOM’s management conducts a pre-release data check. - When balance of payments statistics methodologies are revised, the BOM makes use of guidance from outside experts, including technical assistance from the IMF Statistics Department and consultation with compilers in other countries. ### Processes to deal with quality considerations in planning the statistical program - The BOM considers quality issues (including implicit and explicit trade-offs among the dimensions of quality) in planning its statistical program. - Prior to major revision to the methodology, the BOM takes into consideration opinions from experts from other countries and the IMF. - The BOM International Department is aware of trade-offs between various dimensions of data quality, particularly between timeliness and accuracy/reliability; publications indicate that the data are preliminary and will be revised. - The work program of the BOM International Department in the annual working plan of the BOM includes efforts to maintain and improve the quality of balance of payments statistics in terms of timeliness, methodological soundness, and accessibility. ### Assurances of integrity — Professionalism - The Law of Mongolia on Central Bank (Bank of Mongolia) mandates the professional independence of the BOM: - Article 26 stipulates that the BOM is headed by the governor appointed by the State Ikh Khural (Mongolian Parliament), upon the recommendation of its chairman, to which he or she would report. - The First Deputy Governor and the Deputy Governor are appointed, upon the recommendation of the governor, by the State Ikh Khural. - All these officials are appointed for a period of six years, and can be discharged only by the State Ikh Khural and only in circumstances identified in the Law—namely, becoming a shareholder in a commercial bank, acting against the BOM’s interest, or committing a criminal offence. - For one year after their release from the position in the BOM, they are prohibited from occupying a management position in a commercial bank. - Professionalism is actively promoted and supported within the BOM through: - Recruitment and promotion policies that emphasize professional competence and expertise in statistics. - The Bankers’ Training Centre for providing training to staff. - Participation of staff in IMF training seminars and meetings of experts (example: Seminar on Implementing the Balance Sheet Approach to Macroeconomic Surveillance held in Ulaanbaatar). - The BOM carries out the compilation of balance of payments statistics with professionalism and complete independence; recent method revisions that negatively affected the current account balance proceeded without interference. ### Assurances of integrity — Statistical choices and dissemination - Choice of sources and techniques and decisions on dissemination are guided by statistical considerations and conform to international standards. - One BOM policy is that statistics should be disseminated as soon as possible; decisions about timing, media, and other aspects of dissemination are based solely on statistical considerations. ### Assurances of integrity — Right to comment on misuse - The BOM is entitled to comment on erroneous interpretation and misuse of balance of payments statistics by the media. - There are no recent examples of press releases on misinterpretation of data, although procedures have been developed to do so. - Explanatory notes to publications are revised to address misunderstandings (example: description of the types of services included in other services was added in response to user misunderstanding). ### Assurances of integrity — Transparency - The BOM’s web site (http://www.mongolbank.mn) posts the Law of Mongolia on Central Bank (Bank of Mongolia) in Mongolian and English; the law presents the terms and conditions under which the International Division compiles balance of payments statistics, including the BOM’s mandate to compile and publish aggregated data and its obligation to safeguard the confidentiality of individual unit data. - There is no internal government access to balance of payments statistics prior to their release. - Balance of payments data are published in reports that cite the BOM International Department as the producer; when reproduced elsewhere the BOM insists that the source be quoted. When the NSO republishes balance of payments statistics in its bulletin, it cites BOM as the source. - Changes in methodology and statistical techniques are notified to users after their adoption; published data contain details on methodology and any modification (example: the 2006 publication explains an updated method for the valuation of imports). Recommendation: - Adopt a policy of advance notification of major changes in methods (either by notification in a regular quarterly publication or by ad hoc release). ### Assurances of integrity — Ethical standards - BOM guidelines for staff behavior are articulated in the Law of Mongolia on Central Bank (Bank of Mongolia) and a circular on staff rules and regulations. - Article 29 of the Law lists prohibited activities for BOM employees, including: representing the interests of any individual and legal entities; procuring advantageous or preferred conditions for themselves or family members, relatives, business counterparts or other acquaintances; and disclosing official information on finances of a bank, legal person, or individual. - The Law is disseminated on the BOM’s website and is easily available and well known to staff; all staff members are given copies of the circular on staff rules and regulations. Ethical practices are communicated to new recruits during internal training. ### Methodological soundness — Concepts and definitions - The BOM strictly follows the concepts and methods in the Balance of Payments ManuaI, fifth edition (BPM5). - Presentation shows goods, services, income, transfers, the capital account, and the financial account using the double-entry accounting system. - Definitions of residence and economic territory follow international standards. ### Methodological soundness — Scope - In principle, the BOM International Department attempts to capture all transactions between residents and nonresidents in accord with BPM5, including transactions in cash or in kind. - Treatments of goods for processing, repairs on goods, nonmonetary gold, reinvested earnings, intercompany lending, portfolio investment of private sector, and trade credit follow international standards, although there are some variations from the ideal due to limitations of data sources (see section 3.1 note). ### Methodological soundness — Classification/sectorization - Transactions between residents and nonresidents are classified in accordance with the standard components of BPM5: current account (goods, services, income, current transfers), capital account, and financial account (direct investment; portfolio investment; other investment; reserve assets). - Four institutional sectors are identified, consistent with BPM5: monetary authorities, general government, banks, and other sectors. ### Methodological soundness — Basis for recording - Market prices are used to value flows and stocks: - Transactions are generally recorded on a settlement basis, which for most transactions is considered as satisfying the market-price valuation principle. - Transactions that are not valued, such as aid and barter, use market-equivalent valuations. - Balance of payments data are recorded in United States dollars. Source data expressed in togrog and other currencies are converted to dollars at the daily mid-point exchange rate (for transactions recorded with the date available, such as from the ITRS) or by the quarterly average exchange rate (in other cases). - Recording is done on an accrual basis in principle, but in practice major data sources use different bases: - Customs clearance basis is used for goods. - Payments basis is used in the ITRS. - No investigations are carried out on the impact of these variations and no adjustments are made for large transactions; BOM staff consider differences generally minor. - The value of net errors and omissions fluctuates between negative and positive, indicating timing inconsistencies in the data. Recommendation: - Seek to identify any variations in timing for major transactions (such as major sales or purchases of equipment) and make adjustments where necessary. - Grossing/netting procedures: - For the current account, transactions are recorded on a gross basis according to BPM5. - For financial transactions, transactions are recorded net (acquisitions less disposals for assets; incurrence less repayment for liabilities). - Financial transactions are available separately for assets or liabilities. - In the published table, some items are shown on a net basis; however gross data are available on request and are supplied to the IMF for International Financial Statistics and Balance of Payments Statistics Yearbook. *Source: _cr08123 - 0.4 Other quality management* ### 3.1 Source data ### _cr08123 - 3.1 Source data ### 3.1 Source data: origins and coverage - Source data are obtained from comprehensive data collection programs that take into account country-specific conditions. - Main data sources for the balance of payments: - Trade statistics from the Customs General Administration: exports and imports of goods available monthly, with commodity detail and splits by funding (hard currency, barter, aid, loan, direct investor, goods for processing). - International transactions reporting system (ITRS): cross-border transactions reported by banks and some major nonbank financial institutions monthly, reported to BOM transaction-by-transaction with transaction code, date, country of counterpart, description and parties. - Government agencies: General Authority for Border Protection (arrival and departure numbers from border posts); Tourism Agency in the Ministry of Road, Transport, and Tourism (travel expenditure patterns); MOF (official aid, government debt, budget report, expenditures of the embassies of Mongolia in foreign countries); FIFTA (direct investment commitments). - Direct reporting from major enterprises: Eight large enterprises report directly to BOM (including telecoms companies, MIAT, the railway company, and some commodity exporters). - Enterprise survey: conducted since 2000 (most recently for 2006), covering 460 enterprises; questionnaire covers direct investment flows, bank accounts abroad, and international investment position. Results not incorporated into BOP statistics due to disappointing response rates, lack of resources to improve survey results (updating business register, follow-up of nonreporters, making estimates for missing enterprises), and lack of staff time to modify BOP compilation procedures. - Two specific concerns: - The business register is not updated continuously; omission of new and growing businesses causes downward bias. - Adjustments are not made for nonresponse; downward bias and spurious movements result. Preferred method: more follow-up, especially for larger enterprises. If necessary accept partial data or staff estimates; if no data, estimate using other indicators (ITRS, company annual reports, FIFTA data with ratios). Distinguish nonresponse enterprises with non-zero values from enterprises with zero values. - Specific purpose surveys: workers’ remittances, tourism, and border survey on education and medical treatment. - Recommendations (from source regarding source data collection): - Update the register for the enterprise survey on an annual basis. - Conduct intensive follow-up of nonresponse and develop estimation procedures for nonresponse for the enterprise survey. ### 3.1.2 Approximation to international standards: major components and deviations - Exports and imports of goods: - Data from customs; BOM adjusts customs data for c.i.f. valuation items (goods procured in port by carriers, nonmonetary gold, repairs on goods, purchases from abroad by duty-free stores). - No adjustments made for possible undervaluation/overvaluation, smuggling, shuttle trade, and gifts for Mongolian relatives. - Quarterly timing derived from cumulative data (fourth quarter = difference between previously published January–September figure and final calendar year figure), causing potential misattribution of later revisions to Q4. - Processing fees on gold sent for processing are included in services. - Coverage arrangements for free trade zones not yet established. - Transportation services: - Sources: ITRS and direct reporting by MIAT, Mongolian Railways, and the airport authority. - Transactions in cash by smaller operators may be omitted. - Travel: - Estimates based on inward/outward visitor numbers and length of stay from General Authority for Border Protection and BOM survey. - Multiplication by average daily expenditure from a 2005 Tourism Agency survey; revised data planned for 2007. - No adjustment for price changes between surveys, causing potential discontinuity when new survey results are incorporated. - Other services: - Based on ITRS, direct reporting by large service enterprises (telecommunications), and embassy expenditure/revenue. No survey of embassy and international organization purchases in Mongolia; large proportion believed captured in ITRS. - Compensation of employees: - No credits reported and only a small value of debits identified from the ITRS. - Increasing numbers of short-term Chinese construction workers likely receive compensation outside ITRS and are not covered. - Direct investment income: - Dividend debits from tax submissions for major enterprises; reinvested earnings estimated case-by-case; no interest recorded under direct investment. - Dividends in kind or via bank accounts abroad omitted from ITRS but identified for major enterprises via direct reporting. - Other investment income: - Sources: ITRS, BOM and MOF accounts, direct reporting by banks and major enterprises. - Portfolio investment income shown as zero; future identification expected due to nonresident purchases on stock exchange and Mongolian bond issues. - Interest recorded on a payments basis, which may differ from accrual basis for some securities (annual coupon payments, deep-discount bonds). - Workers’ remittances: - Data from ITRS covering banks and two money transfer companies (Western Union and Moneygram). - Remittances in banknotes, goods, ATM withdrawals, and transactions through foreign exchange bureaus omitted. - BOM March 2007 survey (through bank customers) reported that about 60 percent of remittances were received through banks and other formal channels, indicating cash remittances would add around another two-thirds to currently recorded values. - BOM would like to run the survey again before adjusting official BOP statistics. - Other current and capital transfers: - Cash transfers from ITRS. Official grants in kind from customs; foreign grants in cash from MOF, State Standing Emergency Commission, Mongolian Red Cross Society, and selected NGOs. - Technical assistance based on MOF Project Coordination Unit and international organizations. - Transfers to NGOs estimated as difference between customs transfers in kind and official grants-in-kind recorded on budget. - Credits from sale of hunters’ licenses supplied by Ministry of the Environment. - Split between current and capital transfers not available; all transfers shown as current except debt forgiveness shown as capital transfers. - Direct investment: - Direct investment abroad insignificant to date. - Data from direct reporting by a few large enterprises, ITRS, and trade statistics (for investment in goods/equipment). - Direct investment in form of loans included under other investment in direct reporting, but separately in ITRS codes. - Portfolio investment: - Transactions not currently reported. - Loans and deposits: - MOF reports data for all public debt; direct reporting from banks and major enterprises; other enterprise loans and deposits from ITRS. - Trade credit: - Based on direct reporting by eight major enterprises and agencies (advance payments for oil imports, prepayments under grant aid, copper producers, cashmere exporters). - Other trade credit (general importers) not taken into account; may contribute to volatility of net errors and omissions. - Financial derivatives: - Not recorded at present; monitoring recommended (use identified in banking statistics). - Reserve assets: - Data from direct reporting by Accounting and Information Technology Department of BOM; follow international standards in scope and valuation. - Transactions data estimated from change in balance sheet between beginning and end of period and therefore include holding gains/losses as well as transactions (risk of misattributing valuation changes as transactions and creating imbalances). - ITRS and coding issues: - Coding and identification of economy of residence undertaken by bank clerks may depart from definitions; BOM provides training and documentation and follows up anomalous transactions. - ITRS limited to domestic banks; transactions through accounts held abroad are omitted except for eight major direct reporters. - Timing in ITRS is by time of payment rather than accrual; no adjustments to accrual basis are made. - Pattern of net errors and omissions shows large quarterly fluctuations, suggesting timing inconsistencies. - Transactions of foreign exchange bureaus are not recorded; informal trade, remittances, and other items conducted through these dealers omitted. - Foreign exchange bureaus are regulated by the Financial Regulatory Commission, which is developing data collection; BOM International Department staff should be involved. - Useful to identify net transactions of foreign exchange bureaus with banks to determine if they are major buyers or sellers of foreign currency. - Recommendations (from source regarding deviations and gaps): - Review gaps and problems on a continuing basis to see if they become more significant. - Monitor new economic developments (free trade zones, commercial bond issues) to see if additional data sources are required. - Conduct a further survey of remittance recipients on channels used and incorporate adjustment ratios for remittances outside ITRS. - Use the enterprise survey to identify scope of omitted reinvested earnings, dividends in kind, and intercompany lending for direct investment in Mongolia. - Consult with the Financial Regulatory Commission to collect data on international transactions made through foreign exchange bureaus to meet BOP needs. - Attempt to exclude holding gains and losses from reserve assets transactions, by direct reporting from BOM Accounting and Information Technology Department or by making calculations separately for each major currency and gold. ### 3.1.3 Timeliness - Trade data are provided monthly within two weeks of the end of the month. - ITRS data are provided monthly by each bank within a few days of the end of the month. - Direct reporters provide data on a timely basis. - BOM staff contact data providers in advance to ensure awareness of BOM needs and timely delivery. ### 3.2 Assessment of source data - BOM International Department routinely checks ITRS data using: - Drop-down software menus to validate coding. - Visual inspection of large volumes. - Follow-up on vague descriptions or mismatches with transaction codes. - Querying uncategorized data; when problems detected, bank is called and transaction rechecked, corrected, and resubmitted. - Regular confirmation of large-value transactions with banks or operators. - Direct investment transactions checked against FIFTA commitments to include all new direct investment projects. Exports to parent companies not paid in full treated as implied dividends where identified. - Response rates from surveys are monitored; data compared over time to identify anomalous movements. - Some checks not routinely done (e.g., inwards goods for processing not compared with outward goods; trade data from customs not compared with corresponding ITRS entries). - Special attention to eight major enterprises: working group membership, other contact, and cross-checking with ITRS. ### 3.3 Statistical techniques: compilation and procedures - Processing: - BOM International Department receives data in hard and soft formats; processing done in Excel. - Questionable values identified and queried; adjustments made when supplier confirms error. - Long-term objective: develop an integrated database to facilitate comparisons and automated validation checks. - Enterprise survey data are checked for consistency over time and internally, but no procedures to adjust for nonresponse exist—causing downward bias and potential distortions when response rates vary. - Recommendation: Develop procedures to estimate nonresponse in the enterprise survey. - Adjustments and transformations: - BOM makes adjustments consistent with BPM5 principles. - Customs trade data (c.i.f.) are adjusted to f.o.b. using a single aggregate import ratio derived from customs declarations; ratio updated every one or two years. - Adjustments to ITRS for travel and for services provided by eight major enterprises (to avoid netting of inward and outward telecommunications services in bank payments). - Seasonal adjustment: - No seasonal adjustment is undertaken, although seasonal patterns are recognized in goods, transportation, and travel. *Source: _cr08123 - 3.1 Source data* ### 3.4 Assessment and validation of intermediate data and statistical outputs ### 3.4 Assessment and validation of intermediate data and statistical outputs ### 3.4.1 Validation of intermediate results - Practices: - Data from the ITRS are verified by crosschecking with information reported by other agencies (example: public foreign debt drawings and repayments compared with MOF on public debt management or with public enterprises and institutions). - FIFTA data on direct investment commitments and high value projects reported in the press are compared with corresponding direct investment data to ensure coverage of direct investment relationships. - Balance of payments information from the banking system is cross-checked with external assets and liabilities of banks obtained from monetary statistics. - Staff monitor economic developments reported in the press. - Gaps: - Dividends and reinvested earnings are not checked against the exports of direct investment enterprises. - Investment income data are not compared with corresponding assets and liabilities to check rates of return. - No procedures developed for recording free trade zones, share market trading, and bond issues into balance of payments statistics. - Recommendations: - Develop annual measures of international investment position. In the meantime, publish already available components on public debt and reserve assets and reserve-related liabilities. - Introduce validation checks with the rate of return on various assets and liabilities when international investment position data are developed. - Monitor the media and maintain contact with major businesses to identify new developments in the economy to be forward-looking in implementing methods to cover these developments in balance of payments statistics at the same time as they emerge. ### 3.4.2 Assessment and investigation of statistical discrepancies in intermediate data - Practices: - Statistical discrepancies in intermediate data are subjected to analysis when they occur. - Regular crosschecks between information provided by banks and that collected from principal economic operators. - Gaps: - Total values of transactions reported for the ITRS for each bank are not reconciled with the opening and closing balance sheets of the banks. - No systematic reconciliation of the balance of payments financial account with corresponding opening and closing stock data from partial international investment position data. - Recommendation: - Introduce reconciliation between stocks and flows when international investment position data are developed. ### 3.4.3 Investigation of statistical discrepancies and other indicators of problems - Practices: - “Net errors and omissions” item is monitored closely for each quarterly and annual compilation; investigations are undertaken for large changes. - Regular crosschecking between different data categories to identify sources of statistical discrepancy. - Gaps: - Bilateral reconciliations of trade flows are not undertaken (considered of limited value because of trans-shipment trade through Russia and China). ### 3.5 Revision studies - Practices: - Compilers maintain records on revisions made each quarter by comparing old and new values for each item. - Where significant, comments and footnotes are provided in relevant text and tables. - Gaps: - No regularly published overview table showing revisions. - No long-term studies of revision patterns; missing reports in early data may lead to systematic upward revisions over time. - Recommendations: - Prepare a standard table comparing data in the latest period with the corresponding data in previous releases and provide written explanations. - Carry out longer term studies of revisions, if suitable investigatory staff are available. ### 4. Serviceability — Periodicity, timeliness, consistency, and revision practice (summary of key points) - Periodicity and timeliness: - Balance of payments statistics are published on a quarterly and annual basis. - Quarterly balance of payments statistics are generally published within six weeks of the end of the reference quarter. (The data for the second quarter of 2007 will be released later than usual, because of other priority work.) - Periodicity and timeliness satisfy GDDS and SDDS guidelines for quarters and annual data where applicable; data on external debt and international investment position are not published. - Consistency: - Quarterly and annual data are consistent; credit and debit entries are balanced, difference shown as net errors and omissions. - Long-term time series from 1989 to the first quarter of 2007 are available on the web site of the BOM. - Revised methods are carried back to earlier periods where possible; notable methodological changes (e.g., reinvested earnings) may not be practical to backdate and are noted. - Balance of payments data are consistent with national accounts exports and imports of goods and services (presentation differences due to conversion to togrog). - Balance of payments statistics are consistent with monetary statistics (both based on direct reporting by banks), though differences in vintages and units (monetary stocks in togrog vs transactions in US dollars) may occur. - Balance of payments differ from government finance statistics on external financing; no process of comparison and reconciliation exists. - Recommendation: - Conduct routine checks of balance of payments with overlapping items as published in monetary and government finance statistics and attempt to explain discrepancies. - Revision policy and practice: - Quarterly data are compiled initially on a provisional basis and revisions are made when final annual figures are established. - No published statement of revisions policy. - Recommendation: Publish a revisions policy on the BOM website and refer to it in the balance of payments publication. - Preliminary and revised data are clearly identified as preliminary in publications. - Studies and analyses of revisions: significant methodological changes are noted in quarterly and annual publications (example: first quarter 2007 notes about changes in net income account and increase in reinvested earnings causing decrease in net income account). Long-term tables have footnotes on major method changes (concerned with gold and imports valuation). ### 5. Accessibility — data, metadata, and assistance (summary of key points) - Data accessibility: - Balance of payments statistics follow BPM5 standard components but are more aggregated; suggestion to adopt classifications to appraise mining sector-related external transactions. - Publications contain additional tables and graphs; commentary and additional material covered 14 pages in 2006 publication and 11 pages in first quarter 2007 publication. - Each publication release is accompanied by a press release by BOM Administration Department. - Balance of payments statistics are published in hard copy and posted on the BOM website in pdf format. - A separate tabulation containing long time series is provided on the BOM web site. - Balance of payments data included in the BOM Annual Report and the NSO Monthly Bulletin. - BOM announces a data publication schedule in advance on the web site in Mongolian and English. - All users access publications on the BOM web site at the same time; suggested longer-term objective: fixed time of publication (such as 9:00 a.m. on the release day). - Unpublished subsets of data are provided upon request, subject to confidentiality considerations; availability and contact information are stated in the publication. - Metadata accessibility: - Some methodological issues are included in commentary on quarterly and annual reports covering concepts, scope, coverage, classifications, and data sources. - GDDS web site provides more complete metadata produced by the BOM on Mongolia’s balance of payments statistics (concepts, definitions, classifications, data sources, compilation methods, deviations from international standards). - Balance of Payments Sources and Methods Manual (42 pages) and Manual on the ITRS (10 pages) are available in Mongolian; intended for BOM staff, data suppliers, and Working Group on Balance of Payments Statistics; available to interested users. - BOM publications would be improved by providing a listing of available metadata and giving links. - Assistance to users: - Quarterly and annual publications indicate names, positions, functions, e-mail addresses, telephone number, and fax number of contact persons; BOM staff respond to user requests. - BOM web site lists publications available in Mongolian and English; there are no charges for these publications. - Gap: listing is not in the form of a catalog with information on services and prices. - Recommendation: Publish a catalog of publications and services along with their prices. ### Table 5: Data Quality Assessment Framework (summary observations relevant to assessment and validation) - Key observations (selected): - 0.2 Resources: Assessment = NO. Comment: "Staff numbers inadequate to make needed improvements and keep up with new economic developments; Additional computing resources needed. Actions under way to fill some vacancies—short term." - 2.4 Basis for recording: Assessment = NO. Comment: "Many items on payments basis with no adjustment to an accrual basis. Investigate timing of payment for major transactions and make adjustments, if necessary—short term" - 3.1 Source data: Assessment = NO. Comment: "Measures lacking for some areas, including informal trade, cash remittances, transactions of foreign exchange bureaus, some trade credit. Undertake measures to improve measurement of selected components—long term." - 3.3 Statistical techniques: Assessment = NO. Comment: "No estimation for missing data in enterprise survey. Develop procedures for missing enterprises—short term." - 3.4 Assessment and validation: Assessment = NO. Comment: "No checking with position data. Do checks with partial position data—short term. Publish international investment position—long term." - 3.5 Revision studies: Assessment = NO. Comment: "No long-term analysis of revisions. Do further analysis of revisions—long term." - 4.2 Consistency: Assessment = NO. Comment: "Differences with government finance statistics not reconciled. Investigate causes of discrepancies with government finance statistics—medium term" - 4.3 Revision policy and practice: Assessment = NO. Comment: "Revision policy not published. Publish revisions policy—short term" - 5.3 Assistance to users: Assessment = NO. Comment: "No published catalog. Publish catalog—short term" *Source: _cr08123 - 3.4 Assessment and validation of intermediate data and statistical outputs* ### Appendix II. Data Quality Assessment Framework—Generic Framework ### Appendix II. Data Quality Assessment Framework—Generic Framework (July 2003 Framework) ### Framework overview - The framework is organized by Quality Dimensions, Elements, and Indicators, covering prerequisites of quality, assurances of integrity, methodological soundness, accuracy and reliability, serviceability, and accessibility. - Emphasis is on conformity with internationally accepted standards, guidelines, or good practices across concepts, scope, classification, recording, source data, statistical techniques, validation, timeliness, consistency, revision practices, presentation, metadata, and user assistance. ### Prerequisites of quality - Legal and institutional environment - 0.1.1 The responsibility for collecting, processing, and disseminating the statistics is clearly specified. - 0.1.2 Data sharing and coordination among data-producing agencies are adequate. - 0.1.3 Individual reporters’ data are to be kept confidential and used for statistical purposes only. - 0.1.4 Statistical reporting is ensured through legal mandate and/or measures to encourage response. - Resources - 0.2.1 Staff, facilities, computing resources, and financing are commensurate with statistical programs. - 0.2.2 Measures to ensure efficient use of resources are implemented. - Relevance and quality management - 0.3.1 The relevance and practical utility of existing statistics in meeting users’ needs are monitored. - 0.4.1 Processes are in place to focus on quality. - 0.4.2 Processes are in place to monitor the quality of the statistical program. - 0.4.3 Processes are in place to deal with quality considerations in planning the statistical program. ### Assurances of integrity - Professionalism - 1.1.1 Statistics are produced on an impartial basis. - 1.1.2 Choices of sources and statistical techniques as well as decisions about dissemination are informed solely by statistical considerations. - 1.1.3 The appropriate statistical entity is entitled to comment on erroneous interpretation and misuse of statistics. - Transparency - 1.2.1 Terms and conditions under which statistics are collected, processed, and disseminated are available to the public. - 1.2.2 Internal governmental access to statistics prior to their release is publicly identified. - 1.2.3 Products of statistical agencies/units are clearly identified as such. - 1.2.4 Advance notice is given of major changes in methodology, source data, and statistical techniques. - Ethical standards - 1.3.1 Guidelines for staff behavior are in place and are well known to the staff. ### Methodological soundness - Concepts and definitions - 2.1.1 The overall structure in terms of concepts and definitions follows internationally accepted standards, guidelines, or good practices. - Scope and classification - 2.2.1 The scope is broadly consistent with internationally accepted standards, guidelines, or good practices. - 2.3.1 Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices. - Basis for recording - 2.4.1 Market prices are used to value flows and stocks. - 2.4.2 Recording is done on an accrual basis. - 2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices. ### Accuracy and reliability - Source data and assessments - 3.1.1 Source data are obtained from comprehensive data collection programs that take into account country-specific conditions. - 3.1.2 Source data reasonably approximate the definitions, scope, classifications, valuation, and time of recording required. - 3.1.3 Source data are timely. - 3.2.1 Source data—including censuses, sample surveys, and administrative records—are routinely assessed for coverage, sample error, response error, and nonsampling error; the results of the assessments are monitored and made available to guide statistical processes. - Statistical techniques and validation - 3.3.1 Data compilation employs sound statistical techniques to deal with data sources. - 3.3.2 Other statistical procedures (e.g., data adjustments and transformations, and statistical analysis) employ sound statistical techniques. - 3.4.1 Intermediate results are validated against other information where applicable. - 3.4.2 Statistical discrepancies in intermediate data are assessed and investigated. - 3.4.3 Statistical discrepancies and other potential indicators or problems in statistical outputs are investigated. - Revisions - 3.5.1 Studies and analyses of revisions are carried out routinely and used internally to inform statistical processes. ### Serviceability - Periodicity and timeliness - 4.1.1 Periodicity follows dissemination standards. - 4.1.2 Timeliness follows dissemination standards. - Consistency - 4.2.1 Statistics are consistent within the dataset. - 4.2.2 Statistics are consistent or reconcilable over a reasonable period of time. - 4.2.3 Statistics are consistent or reconcilable with those obtained through other data sources and/or statistical frameworks. - Revision policy and practice - 4.3.1 Revisions follow a regular and transparent schedule. - 4.3.2 Preliminary and/or revised data are clearly identified. - 4.3.3 Studies and analyses of revisions are made public. ### Accessibility - Data accessibility - 5.1.1 Statistics are presented in a way that facilitates proper interpretation and meaningful comparisons (layout and clarity of text, tables, and charts). - 5.1.2 Dissemination media and format are adequate. - 5.1.3 Statistics are released on a preannounced schedule. - 5.1.4 Statistics are made available to all users at the same time. - 5.1.5 Statistics not routinely disseminated are made available upon request. - Metadata accessibility - 5.2.1 Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques is available, and differences from internationally accepted standards, guidelines, or good practices are annotated. - 5.2.2 Levels of detail are adapted to the needs of the intended audience. - Assistance to users - 5.3.1 Contact points for each subject field are publicized. - 5.3.2 Catalogs of publications, documents, and other services, including information on any charges, are widely available. --- ### Appendix III. Mongolia — Analysis of survey of users ### Survey scope and response - Survey covered national accounts, price statistics, government finance statistics, monetary statistics, and balance of payments statistics; users from public sector, commercial banks, private enterprises, international organizations, and academia. - Number of completed questionnaires: 36. - Users rated the quality of the statistics as average with the individual datasets receiving overall ratings of between 2.9 and 3.6. - Only 45 percent of respondents rated the quality of the statistics as being as good as, or better than that of other countries in the region. ### Key user findings (percentages preserved) - Coverage satisfaction - 80 percent of the users of the monetary statistics were satisfied with the coverage. - 50 percent of the users of the national accounts expressed satisfaction with the coverage. - Level of detail - A majority of the users of the national accounts statistics expressed dissatisfaction with the level of detail of the disseminated national accounts data. - Access channels and ease of access - Only 29 percent of the data were accessed through the agencies’ official websites. - Two-thirds of respondents noted that they could easily access the official statistics. - 86 percent of users of monetary statistics noted that they could easily access the statistics. - 57 percent of the users of the national accounts noted they could easily access the statistics. - Metadata accessibility and clarity - 67 percent of users expressed general difficulty in accessing the metadata on the respective datasets. - 70 percent noted that the metadata lacked sufficient clarity and level of detail to be useful. ### Summary of survey comments (categorized by DQAF dimensions) - Legal and institutional environment - Need to improve NSO staff capacity and skills. - Need for sufficient funding and annual budget allocation for NSO to meet stakeholder needs. - Review the current Statistics Law; concerns that NSO does not provide useful information to ministries and agencies. - Accuracy and reliability - Improve sources of information and data; only a few agencies currently provide source data. - Improve quality of data and methodology (CPI basket review, publish PPI, consolidate GFS monthly). - Ensure main statistics adhere to international definitions and improve inter-institutional cooperation. - Improve GFS to support public finance accountability; difficulties in gathering government finance data. - Serviceability - Monthly national accounts and production indexes available in other countries are not available for Mongolia. - Confusion due to methodological differences between official statistics and IMF statistics (e.g., CPI and monthly inflation figures). - Need for more detailed breakdowns, improved completeness and timeliness, increased frequency of release, expanded dissemination, factor analysis on price indexes, more analytical work on balance of payments, information on budget utilization. - Accessibility - Data should be accessible through the internet. - Make specific survey data available to the public with personal identifiers removed. - Official statistical data and analysis should be open to the public and provided without charge. - Improve accessibility and availability, particularly of raw data. --- ### Appendix Table 1. Mongolia — Results of Users’ Survey (selected statistics and counts) - Number of responses for regular use of official statistics: - National accounts (NA): 25 - Prices: 25 - Government finance statistics (GFS): 26 - Monetary statistics (Monetary): 27 - Balance of payments (BOP): 21 - Other (examples and counts): - Production indices: 16 - Labor market: 13 - Merchandise trade: 13 - International reserves and foreign currency liquidity: 14 - External debt: 19 - International investment position: 15 - Other: 4 - Sources of national official statistics (counts): - Official press releases and publications: 27 - Private sector summaries and analyses: 6 - Official policy papers: 20 - Publications from international organizations: 23 - Other sources: 10 - Do you refer to official descriptions of sources and methods? - Yes: 23 - No: 5 - Main purposes for using official statistics (counts): - Analysis of current developments for short-term decision making: 21 - Analysis of trends for longer-term policy formulation: 21 - Econometric model building and forecasting: 9 - Economic research: 24 - Comparison with economic developments in other countries: 14 - General economic background: 24 - Overall assessment: average dataset ratings (1 poor — 5 excellent) - National accounts: 2.9 - Prices: 3.2 - GFS: 3.3 - Monetary: 3.6 - BOP: 3.3 - Other: 2.8 *Appendix II. Data Quality Assessment Framework—Generic Framework (July 2003 Framework) and Appendices III–IV, and Appendix Table 1, as presented in the source PDF.* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr08123.pdf_