## _cr0950 ## Source details **Canonical URL:** [_cr0950](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2009/_cr0950.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2009/_cr0950.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2009/_cr0950.pdf.json) --- ### Overall assessment (DQAF July 2003 — Summary Results) - Armenia subscribed to the SDDS and started posting metadata on the DSBB on November 7, 2003. - Armenia is in observance of the SDDS, meeting specifications for coverage, periodicity, timeliness, and dissemination of advance release calendars. - Exceeds SDDS requirements for periodicity and timeliness for: unemployment, general government operations, analytical accounts of the central bank, merchandise trade, international investment position, and population. - Meets periodicity and exceeds timeliness on: production index, employment, wages, CPI, PPI, central government operations, analytical accounts of the central bank, and merchandise trade. ### Principal findings (cross-cutting strengths and scope) - Strengths: - Relative strengths in most elements of Prerequisites of Quality and Assurances of Integrity. - Datasets show strengths in: concepts and definitions; assessment of source data; assessment and validation of intermediate data and statistical outputs; revision studies; periodicity and timeliness; consistency; revision policy and practice; assistance to users. - Government finance statistics: - Substantial accomplishment in meeting, by 2008, GFSM 2001 classification requirements for central government. - MFE plans: implement GFSM 2001 classification for local government in 2009; accrual recording for all units of general government in 2010. - Cross-dataset consistency: - High cross-dataset consistency, with caveat that incomplete implementation in one dataset can propagate to others. ### Prerequisites of quality — institutional and resource highlights - Legal/institutional: - Law On Official Statistics of 2002 (amended) positions NSS as central executive statistical agency; three-year program of statistical development and annual statistical plans coordinate producers (NSS, MFE, CBA) under a 2004 Government Decree. - Resources and staffing (selected): - NSS experiences higher than desirable staff turnover due to low compensation. - NSS staffing (April 2008): Headquarters civil servants (tenured) = 155; Regional civil servants (tenured) = 179; Total civil servants (tenured) = 334; Statisticians (fixed term) Headquarters = 33; Statisticians (fixed term) Regional offices = 358; Statisticians (fixed term) Total = 391; SCS personnel = 26; NSS Total Headquarters = 214; NSS Total Regional offices = 537; NSS Total = 751. - National Accounts Division staffing: seven employees. - MFE government finance staff detail: ten Treasury civil servants for compilation; five civil servants for GFSM migration action plan; four civil servants of Cash Flow Management Unit for dissemination; at least 10 staff well trained in GFS concepts; about 100 staff received internal GFS training. - CBA monetary statistics staff: 13 professional staff (all with university degrees), three with post-graduate studies; DPD+MFSD combined total "13 professional and one clerical staff" (end-March 2008) for compilation/dissemination. - User engagement: - NSS consults about 100 major users when drafting programs. - Institutional assurances: - Professional independence: six-year terms for NSS President and SCS; independence of MFE and CBA statistical functions protected in Budget System Law of 1997, Treasury System Law of 2002, and the 1996 Law of the Central Bank. - Transparency: legal texts available on agency websites; strict simultaneous data-release policy. - Ethical standards: Civil Service Law 2002, Resolution No. 13-N (May 31, 2002), and CBA’s Code for Employees. ### Methodological soundness — key dataset issues - General: - All evaluated datasets adhere closely to internationally standard concepts and definitions; notable exceptions and scope issues listed below. - National accounts: - Compiled in accordance with 1993 SNA; time series available since 1990. - Some quarterly source data collected cumulatively rather than discrete. - Techniques for owner-occupied housing, consumption of fixed capital, agricultural work-in-progress, and volume of net exports need improvement. - Constant price base years: average prices of 1998 used until 2006; average prices of 2005 used from 2007. - Consumer Price Index (CPI): - CPI rebased 2006 (2005=100); CPI covers Armenia, Yerevan, and ten regions (marzes). - CPI is monthly and disseminated one day after the reference month. - CPI weights (2004/2005 ILCSH): Food = 53.91 percent; Nonfood = 16.18 percent; Services = 29.91 percent. - Owner-occupied housing not fully covered (except maintenance/repair); recommendation to evaluate rental equivalence or net acquisitions approach. - Producer Price Index (PPI): - PPI follows 1993 SNA and PPI Manual; currently using OKOHX with reclassification to NACE/CPA in progress and expected finished during 2009. - PPI periodicity: monthly; disseminated one month after reference month. - Construction price index source and reference period outdated (weight/price reference period: 1984). - Government finance statistics (GFS): - Central government classification consistent with GFSM 2001 beginning in 2008; local governments still GFSM 1986 until migration. - Basis for recording: cash basis for all government operations; plan: accrual for central government in 2009 (partial) and general government in 2010. - Treasury records public debt at face value rather than market value. - Monetary statistics: - Comply with MFSM methodology; DCS covers CBA and 22 commercial banks (end-March 2008); credit unions to be included in ODC survey starting May 2008. - DCS includes operations of one Karabagh bank and branches in Karabagh, creating coverage differences versus other datasets. - Monetary statistics on accrual basis; securities held to maturity treated as amortized cost; CBA-held securities to maturity valued at end-month market prices. - Balance of payments (BOP): - Concepts generally in line with BPM5. - Main sources: customs, direct reporting, ministries, CBA, household surveys, bank reports on transfers. - Gaps: insufficient coverage of financial assets issued by nonresidents and held by residents. - c.i.f./f.o.b. adjustment factors are out-of-date (survey basis: 2001). ### Accuracy and reliability — source data and techniques - Source data meet requirements for all datasets except national accounts (some cumulative quarterly sources) and BOP (insufficient coverage of certain financial assets). - Statistical techniques generally follow international practice with exceptions: - National accounts: owner-occupied dwellings, consumption of fixed capital, agricultural work-in-progress, volume of net exports. - CPI: housing/owner-occupier price/weight estimation. - BOP: out-of-date c.i.f./f.o.b. factors. - Assessment and validation: - Assessment and validation of intermediate data and outputs meet requirements for all datasets. - Revision studies conducted for most datasets; exception: government finance statistics — no revision studies. ### Serviceability — periodicity, timeliness, consistency, revisions - Periodicity and timeliness meet or exceed SDDS requirements for all datasets. - Consistency: - Datasets generally consistent internally, over time, and between institutional sectors. - All datasets have a well-defined revision policy and practice, except BOP where only a brief explanation of the 2007 revision (period 2004–2006) was published. - National accounts revision schedule: - Annual revisions: September 30 year+1, and September 30 year+2. - Quarterly data revised after each subsequent quarter and when new annual benchmarks available. - Statistical discrepancy between GDP by activity and by expenditure varies between 0.1 percent and 2.5 percent. ### Accessibility — dissemination, metadata, user assistance - Dissemination formats: - Data disseminated in Armenian with well-labeled tables and charts; CBA website easy to navigate; NSS website was difficult to search though a substantially improved site was being tested. - Metadata: - Metadata accessibility adequate on all websites except BOP metadata on NSS site, considered insufficiently comprehensive. - User assistance: - All agencies provide good assistance to users across evaluated datasets. - Data presentation notes: - Chain-linked national accounts time series available only on request; recommendation to publish standard chain-linked tables routinely. - Advance release calendars disseminated on IMF’s DSBB; NSS and CBA post release calendars and contact points. ### Assessment by agency and dataset — DQAF July 2003 summary symbols (selected) - Key to symbols: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable. - Dimension 0 (Prerequisites): - 0.1 Legal and institutional environment: All datasets O. - 0.2 Resources: National Accounts LO; CPI LO; PPI LO; Government Finance Statistics O; Monetary Statistics O; Balance of Payments LO. - 0.3 Relevance: Government Finance Statistics LO; others O. - 0.4 Other quality management: All datasets O. - Dimension 1 (Assurances of integrity): 1.1 Professionalism, 1.2 Transparency, 1.3 Ethical standards — All datasets O. - Dimension 2 (Methodological soundness): 2.1 Concepts and definitions — All datasets O; Scope and Basis for recording — several LO entries (National Accounts LO; Government Finance Statistics LO; Monetary Statistics LO; Balance of Payments Statistics LO). - Dimension 3 (Accuracy and reliability): 3.1 Source data — National Accounts LO; Balance of Payments Statistics LO; others O. 3.3 Statistical techniques — National Accounts LO; CPI LO; Balance of Payments Statistics LO. - Dimension 4 (Serviceability): 4.1 Periodicity and timeliness — All datasets O; 4.3 Revision policy and practice — Balance of Payments Statistics LO. - Dimension 5 (Accessibility): 5.1 Data accessibility — National Accounts LO; Government Finance Statistics LO; Balance of Payments Statistics LO; 5.2 Metadata accessibility — Balance of Payments Statistics LO; others O; 5.3 Assistance to users — All datasets O. ### Institutional detail — selected agency practices - NSS: - Responsible for NA, CPI, PPI, BOP. - Law On State Statistics approved April 4, 2000 governs compilation/dissemination. - Business register: about 12,000 legal entities and 3,600 entrepreneurs; agricultural register ~340,000 household units and ~100 establishments. - ILCSH (Integrated Living Conditions Survey of Households) annual: sample 7,872 households (noted elsewhere as 6,816 monthly in CPI section; ILCSH sampling details vary by section). - MFE (GFS): - Uses Integrated Electronic Treasury System; final statement to Parliament before May 1 of the following year (Budget System Law). - Advance release calendars posted; consolidated general government data submitted to IMF for GFSY but not always on national websites. - CBA (Monetary statistics): - Legal authority in Law 69 of 1996 and Law 68 of 1996 for reporting enforcement; confidentiality in Law 80 of 1996. - Secure data transmission via CBAnet; methodology closely following IMF MFSM; Manual on Compilation of Monetary and Financial Statistics in Armenia available on CBA website. - Monetary time series available since 1995. ### Balance of payments — key methodological points - Concepts generally in line with BPM5; residence principle and valuation rules followed. - Sources: customs (SCCS), direct reporting, CBA, household surveys, bank transfer reports. - Timeliness: quarterly BOP within one quarter; annual data after two quarters. - Noted issues: - c.i.f./f.o.b. ratios based on 2001 survey — recommended update. - Gaps in coverage of financial assets issued by nonresidents and held by residents. - 2007 revision covered 2004–2006 but published explanations were brief; recommendation to provide more detailed methodological explanations with major revisions. ### Key staff recommendations (cross-cutting and by domain) - Cross-cutting: - Increase NSS resources to retain qualified staff and improve office facilities and computing resources. - Exclude bank headquarters and branches located in Karabagh from datasets for NA, GFS, monetary and BOP to harmonize economic territory definitions. - Post more and timelier English content on NSS and MFE websites. - Publish chain-linked time series as standard for NA. - National accounts: - Adjust government outlays, taxes, and subsidies to approximate accrual basis. - Collect sub‑annual data on a discrete basis for all economic statistics surveys. - Implement PIM/perpetual inventory methods for consumption of fixed capital. - Apply Denton method (BENCH software) for benchmarking quarterly with annual data. - CPI: - Develop approach to cover owner-occupied dwellings (rental equivalence, user cost, or net acquisitions). - PPI: - Continue implementing Classification of Products by Activity (CPA) and adopt NACE/CPA in PPI by 2009. - GFS: - Implement user feedback facility for MFE compilers. - Align chart of accounts of municipalities/local governments to GFSM 2001. - Include NCO in government finance statistics on national websites. - Produce financial balance sheet of general government. - Use market value rather than face value for financial assets other than loans and for nonfinancial assets. - Follow through on GFSM classification and accrual recording timelines (2009/2010). - BOP: - Exclude Karabagh bank headquarters/branches from Armenian economic territory for financial corporations sector BOP/IIP. - Update c.i.f./f.o.b. factors for trade in goods. - Improve source data for financial assets issued by nonresidents and held by residents. - Provide more detailed analysis and documentation accompanying major revisions. - Add text and graphs to publications to facilitate interpretation; publish more comprehensive metadata. ### Authorities’ responses — selected acceptances and implementation timelines - Document: Responses by the Authorities (ROSC Data Module), dated January 23, 2009. - MFE: - User clarifications available on request; annual consolidated budget reports since 2004 posted on MFE website. - GFSM plans: implement GFSM for local government by 2009; extend GFSM 2001 classifications to general government by 2010; implement accrual recording by 2010. - NSS (selected acceptances/actions): - CPA implementation started; industry CPA implementation to be finished during 2009. - New report form 1-TG (Decision No 14-N dated 12.12.2008) approved to collect discrete quarter data from large/medium organizations and a sample of small organizations to support quarterly NA. - Use accrual data from form 1-TG to adjust cash-basis taxes/subsidies until MFE accruals available. - Benchmarking: Denton method (BENCH) adopted in 2008 for 2005–2007 and published results. - Owner-occupied dwelling output: recommendation accepted; NSS notes "94 percent by the Household Survey data estimate" living in own dwellings and anticipates need for international expert assistance. - BOP: plans to develop special presentation on remittances and private transfers during 2009; plan to carry out sample survey for better FOB/SIF estimates if resources permit; commit to enrich BOP metadata and provide detailed explanations for future revisions. - CBA: - Considers Karabagh part of Armenia’s economic territory (dram is legal tender; banks licensed/supervised by CBA); inclusion/exclusion remains subject to ongoing discussions. - CBA applies same treatment for BOP/IIP for financial corporations sector. - Selected exact references preserved: - Responses dated: January 23, 2009. - State Council on Statistics Decision No 14-N dated 12.12.2008. - Owner-occupied dwellings prevalence: "94 percent by the Household Survey data estimate." ### Appendix I — SDDS coverage, periodicity, timeliness snapshot (selected) - Real sector examples: - National accounts: SDDS periodicity = Q; Armenia periodicity = Q; SDDS timeliness = 1 Q; Armenia timeliness = 1 Q. - Production index: SDDS periodicity = M; Armenia periodicity = M; SDDS timeliness = 6 W (1 M); Armenia timeliness = 20 D. - Unemployment: SDDS periodicity = Q; Armenia periodicity = M; SDDS timeliness = 1 Q; Armenia timeliness = 20 D. - CPI: SDDS periodicity = M; Armenia periodicity = M; SDDS timeliness = 1 M; Armenia timeliness = 1 D. - Fiscal sector examples: - General government operations: SDDS periodicity = A; Armenia periodicity = Q; SDDS timeliness = 2 Q; Armenia timeliness = 2 M. - Central government operations: SDDS periodicity = M; Armenia periodicity = M; SDDS timeliness = 1 M; Armenia timeliness = 1 M. - External sector examples: - Balance of payments: SDDS periodicity = Q; Armenia periodicity = Q; SDDS timeliness = 1 Q; Armenia timeliness = 1 Q. - Merchandise trade: SDDS periodicity = M W; Armenia periodicity = W; SDDS timeliness = 8 W (4–6 W); Armenia timeliness = 3 W. - International investment position: SDDS periodicity = A (Q); Armenia periodicity = Q; SDDS timeliness = 3 Q; Armenia timeliness = (1 Q) 1 Q. - Notation preserved verbatim: D = Daily; W = Week(ly); WD = Working days; M = Month(ly); Q = Quarter(ly); A = Annually; NLT = No later than; "6 W (1 M)"; "20 D"; "8 W (4–6 W)"; "(1 Q) 1 Q"; "M (W)"; "M (D)". ### Selected exact numeric and formal references (high-impact) - Dates and decisions: - NSS Law approved April 4, 2000. - Law On Population Census adopted October 12, 1999. - Law On Civil Service: Official Bulletin No. 1 (176) of January 09, 2002. - Responses by authorities dated January 23, 2009. - State Council on Statistics Decision No 14-N dated 12.12.2008. - Staff and survey figures: - NSS Total staff = 751 (April 2008). - National Accounts Division staff = 7. - ILCSH sample: 7,872 households (section-specific sample sizes noted elsewhere as 6,816 monthly). - CPI weights (2004/2005 ILCSH): Food = 53.91 percent; Nonfood = 16.18 percent; Services = 29.91 percent. - Owner-occupied dwellings prevalence: "94 percent by the Household Survey data estimate". - Monetary sector: 22 commercial banks (end-March 2008); credit unions account for around eight percent of loans and three percent of deposits of ODCs. - DCS professional staff: "13 professional staff" (CBA). - Statistical discrepancy between GDP by activity and expenditure: varies between 0.1 percent and 2.5 percent. - Revision schedule for national accounts annual data: September 30 year+1, and September 30 year+2. - Net errors and omissions in BOP: –US$2.6 million in 2007; capital account balance US$591.47 million (2007). - Historical time series availability: NA since 1990; monetary data since 1995; BOP annual since 1993, quarterly from 1996. - c.i.f./f.o.b. adjustment survey year: 2001. - Construction PPI weight/price reference period: 1984. - Constant price base years: average prices of 1998 used until 2006; average prices of 2005 used from 2007. *Source: DQAF July 2003 — Summary Results and accompanying sections (Armenia) extracted from the supplied PDF chapter.* ### 1. DQAF July 2003—Summary Results................................................................................... ### DQAF July 2003—Summary Results ### Overall assessment (I) - Armenia subscribed to the Special Data Dissemination Standard (SDDS) and started posting its metadata on the Dissemination Standards Bulletin Board (DSBB) on November 7, 2003. - Armenia is in observance of the SDDS, meeting specifications for coverage, periodicity, timeliness, and dissemination of advance release calendars. - Appendix I provides an overview of Armenia’s dissemination practices compared to the SDDS. - Armenia exceeds SDDS requirements for periodicity and timeliness for: - unemployment, general government operations, analytical accounts of the central bank, merchandise trade, international investment position, and population. - Armenia meets periodicity and exceeds timeliness on: - production index, employment, wages, consumer price index (CPI), producer price index (PPI), central government operations, analytical accounts of the central bank, and merchandise trade. - Assessment context and scope: - The report applies the IMF’s Data Quality Assessment Framework (DQAF July 2003). - Presents conclusions by quality dimensions; agency-level for Dimensions 0 and 1, cross-dataset for Dimensions 2–5. - This is a reassessment of the data module of the Report on the Observance of Standards and Codes (ROSC) for Armenia conducted during August 30 to September 11, 2000, against the July 2003 DQAF. - The authorities’ response and detailed assessments are presented in separate documents. ### Principal findings (summary) - General strengths across statistical agencies: - Relative strengths in most elements of Prerequisites of Quality and Assurances of Integrity. - Datasets show strengths in: concepts and definitions; assessment of source data; assessment and validation of intermediate data and statistical outputs; revision studies; periodicity and timeliness; consistency; revision policy and practice; assistance to users. - Government finance statistics: - Substantial accomplishment in meeting, by 2008, the classification requirements of the Government Finance Statistics Manual 2001 (GFSM 2001) for central government. - MFE plans: implement GFSM 2001 classification for local government in 2009; accrual recording for all units of general government in 2010. - Cross-dataset consistency: - High cross-dataset consistency is commendable, but incomplete implementation of concepts in one dataset can propagate to others, increasing need for full adherence to most recent international statistical standards. ### Prerequisites of quality (detailed) - Legal and institutional framework: - The Law On Official Statistics of 2002 (amended) clearly positions the National Statistical Service (NSS) as the central executive statistical agency. - NSS coordinates other producers (MFE, CBA) primarily through a three-year program of statistical development and annual statistical plans embedded in the budgetary process as part of a 2004 Government Decree. - Resources and human capital: - NSS is experiencing higher than desirable staff turnover due to low compensation. - Budgeted resources for MFE and CBA are broadly commensurate with existing statistical programs under review. - User engagement: - NSS consults some 100 major users when drafting medium-term and annual statistical programs. - State Council on Statistics (SCS) provides established consultative role. - Institutional assurances: - Professionalism supported by six-year terms for NSS President and SCS (exceeding five-year presidential term); independence of NSS from political influence is reinforced. - Independence of MFE and CBA statistical functions protected in Budget System Law of 1997, Treasury System Law of 2002, and the 1996 Law of the Central Bank. - Staff are well qualified and trained; balance of payments staff rarely participate in international seminars or courses. - Transparency: legal texts available on agency websites; strict simultaneous data-release policy; proper attribution of statistics. - Ethical standards prescribed in the 2002 Civil Service Law for NSS and MFE, and CBA’s Code for Employees. ### Methodological soundness (Dimension 2) — main points - Adherence to international standards: - All evaluated datasets adhere closely to internationally standard concepts and definitions. - Noted exceptions and scope issues: - Inclusion of one bank headquarters and Armenian bank branches in Karabagh causes the economic territory scope for financial corporations in monetary statistics to differ from other datasets; this affects monetary, government finance, national accounts, and balance of payments statistics. - Implementation of the Classification of Products by Activity for the PPI is still in progress. - Chart of accounts of local governments will not follow GFSM 2001 until 2009. - Cash basis recording of general government transactions differs from recommended accrual basis; accrual general government statistics planned for 2010. ### Accuracy and reliability (Dimension 3) — main points - Source data and statistical techniques: - Source data meet requirements for all datasets except national accounts, which use some sources compiled cumulatively through the year rather than discrete period-by-period sources. - Insufficient coverage in balance of payments sources on financial assets issued by nonresidents and held by residents (domestically and abroad). - Statistical techniques generally follow international practice, except: - National accounts: techniques for owner-occupied housing, consumption of fixed capital, agricultural work in progress, and volume of net exports could be improved. - CPI: techniques for estimating prices and weights for housing expenditures of owner-occupiers need improvement. - Balance of payments: uses out-of-date c.i.f./f.o.b. factors for merchandise trade. - Assessment and validation of intermediate data and statistical outputs meet requirements for all datasets. - Revision studies inform data source development and methods for all datasets except government finance statistics, where there are no revision studies. ### Serviceability (Dimension 4) - Periodicity and timeliness: - Periodicity and timeliness meet or exceed SDDS requirements for all datasets. - Consistency and revisions: - Datasets are generally consistent internally, over time, and between institutional sectors. - All datasets have a well-defined and consistently implemented revision policy, except balance of payments statistics, where only a brief explanation of revisions is provided. ### Accessibility (Dimension 5) - Dissemination formats: - Data disseminated in Armenian use formats (well-labeled tables and charts) that facilitate interpretation. - CBA website regarded as easy to navigate and adequate content-wise; NSS website was seen as difficult to search (a substantially improved site was being tested at time of ROSC). - Metadata: - Metadata accessibility adequate on all websites except balance of payments metadata on NSS site, considered insufficiently comprehensive. - User assistance: - All agencies provide good assistance to users across evaluated datasets. ### Assessment by agency and dataset (Table 1 — DQAF July 2003 summary results) Key to symbols: O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; NA = Not Applicable - Dimension 0. Prerequisites of quality - 0.1 Legal and institutional environment: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics O; Balance of Payments Statistics O - 0.2 Resources: National Accounts LO; CPI LO; PPI LO; Government Finance Statistics O; Monetary Statistics O; Balance of Payments Statistics LO - 0.3 Relevance: National Accounts O; CPI O; PPI O; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics O - 0.4 Other quality management: All datasets O - Dimension 1. Assurances of integrity - 1.1 Professionalism: All datasets O - 1.2 Transparency: All datasets O - 1.3 Ethical standards: All datasets O - Dimension 2. Methodological soundness - 2.1 Concepts and definitions: All datasets O - 2.2 Scope: National Accounts LO; CPI O; PPI O; Government Finance Statistics LO; Monetary Statistics LO; Balance of Payments Statistics LO - 2.3 Classification/sectorization: National Accounts O; CPI O; PPI LO; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics O - 2.4 Basis for recording: National Accounts LO; CPI O; PPI O; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics O - Dimension 3. Accuracy and reliability - 3.1 Source data: National Accounts LO; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics O; Balance of Payments Statistics LO - 3.2 Assessment of source data: All datasets O - 3.3 Statistical techniques: National Accounts LO; CPI LO; PPI O; Government Finance Statistics O; Monetary Statistics O; Balance of Payments Statistics LO - 3.4 Assessment and validation of intermediate data and statistical outputs: All datasets O - 3.5 Revision studies: National Accounts O; CPI O; PPI O; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics O - Dimension 4. Serviceability - 4.1 Periodicity and timeliness: All datasets O - 4.2 Consistency: All datasets O - 4.3 Revision policy and practice: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics O; Balance of Payments Statistics LO - Dimension 5. Accessibility - 5.1 Data accessibility: National Accounts LO; CPI O; PPI O; Government Finance Statistics LO; Monetary Statistics O; Balance of Payments Statistics LO - 5.2 Metadata accessibility: National Accounts O; CPI O; PPI O; Government Finance Statistics O; Monetary Statistics O; Balance of Payments Statistics LO - 5.3 Assistance to users: All datasets O ### Institutional detail: National Statistical Service (selected elements from Table 2a) - Legal and institutional environment: - NSS responsible for compiling/disseminating national accounts, CPI, PPI, and balance of payments statistics. - Compilation and dissemination governed by the Law On State Statistics of the Republic of Armenia, approved April 4, 2000. - Law regulates collection, processing, accumulation, summarizing, storing, analysis, and exchange of statistics data. - Resources: - NSS experiences higher than desirable staff turnover due to low compensation, affecting ability to undertake current work programs for NA, CPI, PPI, and balance of payments. - Balance of payments staff rarely participate in international seminars or courses. - Computer hardware does not match data processing needs. - Relevance: - State statistical work programs (three-year and annual) are posted on the NSS website (http://www.armstat.am) and submitted to a selected sample of about 100 users for comments and recommendations. - Annual program accounts for availability of resources, respondent burden, cost-effectiveness, and comparability with international standards. - Other quality management: - Internal procedures implemented by several NSS units; new reporting forms/instructions discussed with Methodology Division and approved by SCS. - Professionalism and transparency: - NSS independence affirmed by Law on State Statistics; articles specify principles of objectivity, reliability, integrity, and adherence to international methodological standards. - No internal access to statistics prior to release; NSS identifies itself in joint exercises; provides advance notice of methodology/source changes. - Ethical standards: - Staff behavior guided by Law on Civil Service and the Resolution of the Civil Service Board from 2002. *Source: DQAF July 2003 — Summary Results (Armenia) — content extracted from the supplied PDF chapter.* ### 0. Prerequisites of quality ### 0. Prerequisites of quality ### 1. Assurances of integrity — Government Finance Statistics (Ministry of Finance and Economy / National Statistical Service) - Legal and institutional environment - GFS data compiled by the Ministry of Finance and Economy (MFE) and disseminated by the National Statistical Service (NSS). - Compilation and dissemination governed by the Budget System Law specifying accounting procedures and reporting requirements for all government units. - The law requires the Minister of Finance and Economy to prepare a final statement of accounts to be presented to the Parliament before May 1 of the following year. - Coordination among producing agencies assured by Government Decree N1354-N of August 19, 2004, defining types of data and provision deadlines among the MFE, the NSS, and the Central Bank of Armenia (CBA). - Resources and staffing - Within MFE: ten civil servants of the Treasury responsible for compilation and processing of GFS data, using the Treasury Integrated Electronic Information System. - Five civil servants responsible for the migration to the Government Finance Statistics Manual 2001 (GFSM 2001) methodology action plan. - Four civil servants of the Cash Flow Management Unit responsible for dissemination of the data. - There are at least 10 staff who are well trained in GFS concepts and practices. - In addition there are about 100 staff that have received internal training of GFS methodology. - All staff have university degrees in economics and statistics, including Master and Ph.D degrees. - Computer hardware and software are adequate. - Relevance and user engagement - Users are mainly policymakers; GFS appears to be an integral part of the budget process and are used by the authorities. - There is no facility for users to provide feedback to GFS compilers on perceived problems with the quality or usefulness of published data. - Other quality management - Current monitoring of the accounts is done by the MFE (as stated in the Budget System Law), and the audit is carried out by the Supervisory House of the Parliament. - According to the Treasury System Law (Article 18), the Treasury evaluates the accuracy of information provided by the State agencies. - Internal procedures for ensuring quality are in place. - Order Decree No. 5N by the MFE and the amendment to the Budget System Law state that the State budget (central government) and the local governments must migrate to GSFM 2001. - Professionalism, transparency, and ethical standards - The “Republic of Armenia 2002 Civil Service Law” supports professional independence and states the importance of professional independence in carrying out statistical functions. - The Budget System Law (in Armenian), the state budget, and report on budgetary execution after Parliamentary approval are published in the Official Bulletin, as well as posted on the MFE’s website (http://www.mfe.gov.am/). - Release is simultaneous to all users, without circulation prior to release. - Guidelines for MFE staff behavior are set by the “Republic of Armenia 2002 Civil Service Law” and Resolution of the Republic of Armenia Civil Service Board No. 13-N, “On Approval of the Guidelines for the Civil Servants’ Ethics” of May 31, 2002. ### 1. Assurances of integrity — Central Bank of Armenia (Monetary statistics) - Legal and institutional environment - Provisions included in Article 5 of the Law 69 of 1996 (Law of the Central Bank of the Republic of Armenia). - Article 36 empowers the CBA to define reporting formats, time frames, and enforce penalties and sanctions, if needed. - Article 55 of the Law 68 of 1996 (Law on Banks and Banking) obliges banks to report data to the CBA and permits the CBA to establish frequency for submission. - Confidentiality protected under Articles 4 and 9 of the Law 80 of 1996 (Law on Bank Secrecy); sanctions contemplated for breach. - Resources and staffing - Staff and computing resources are adequate to compile and disseminate monetary statistics. - All 13 professional staff have a university degree, and three have completed post-graduate studies. - Most staff have participated in courses and training programs offered by the IMF and other international organizations. - Salaries are comparable to those in the banking sector, and considerably higher than in other official institutions. - Annual work programs at department, division, and individual levels are used for planning, monitoring, and evaluating resource utilization and outputs. - Relevance and user engagement - CBA staff participate regularly in statistical meetings and seminars organized by international and national organizations. - Regular consultations with NSS and MFE to discuss new data requirements. - CBA has posted on its website a questionnaire requesting feedback from users of monetary statistics. - A Statistical Committee has been set up to improve methodology and production; in the near future one staff of the NSS will become a permanent member. - Other quality management - Vision statement commits the institution to collecting and processing financial information according to international best practices. - Actions to improve data quality are reflected in annual work programs. - CBA has published on its website a Statistical Code of Practice detailing six dimensions for compiling and disseminating monetary and financial data. - New and existing data collection requirements are subject to cost-benefit assessments and periodic reviews. - Professionalism, transparency, and ethical standards - By law, the CBA is independent from state authorities (Article 1, Law of the Central Bank of the Republic of Armenia), ensuring professional independence in compiling macroeconomic statistics. - Human resources policy based on De Nederlandsche Bank, with a salary scale reflecting experience, responsibilities, and performance. - Recruitment and promotions based on relevant skills and expertise. - CBA staff promote professionalism through seminars, workshops, training, and visits to other central banks. - The Press Office monitors media coverage and provides comments/clarifications if needed. - No government officials outside the CBA have access to published data before public release. - Laws and legislative acts related to monetary statistics are available on the CBA’s website. - Major changes in conceptual framework, source data, or techniques are announced in CBA publications. - A comprehensive manual on methodology closely follows the IMF’s Monetary and Financial Statistics Manual and is available on the CBA’s website with a detailed appendix tailored to the Armenian financial sector. - The CBA’s Code for Employees (on intranet) spells out norms of conduct and ethical standards; distributed to all employees and seminars are conducted for new staff. - Staff who deal with confidential information must sign an agreement preventing disclosure. ### 2–5. Methodological soundness, Accuracy and reliability, Serviceability, Accessibility — National Accounts (NSS) - Concepts and definitions - NA compiled in accordance with the System of National Accounts 1993 (1993 SNA). - Scope and classification - NSS compiles and disseminates: - annual and quarterly GDP at current and constant prices by activity; - annual and quarterly expenditures of GDP at current and constant prices; - components of annual value added by activity at current prices; - a sequence of annual accounts for the total economy and by institutional sectors (up to financial accounts); - annual rest of the world account. - Production, economic, and asset boundary broadly in accordance with 1993 SNA, with the exception of some nonresident financial sector units included in GDP scope. - Institutional units, transactions, and other flows classified according to 1993 SNA; activity and functional classifications consistent with international standards. - Basis for recording and source data - Market prices used for valuation of stocks and flows. - Recording on an accrual basis, except government transactions and some rest of the world transactions. - Compiled from comprehensive annual and quarterly data collection programs based on a statistical register developed and maintained by the NSS; some quarterly data collected on a cumulative rather than discrete basis. - Techniques, assessment, and revisions - Source data adequately checked for coverage, sampling, and nonsampling errors. - Statistical techniques basically sound: production approach from detailed activity data; expenditure estimates made independently. - Techniques for owner-occupied dwellings, consumption of fixed capital, work-in-progress in agriculture, and volume measure of net exports do not fully comply with international standards. - Constant price estimates for 1999–2006 compiled in average prices of 1998, and since 2007, in average prices of 2005. - Statistical discrepancies in intermediate data assessed and investigated; GDP at current and constant prices balanced through supply and use framework. - Revision studies carried out and documented routinely. - Periodicity, timeliness, consistency, and accessibility - Periodicity and timeliness comply with the Special Data Dissemination Standard. - Statistical difference between GDP by activity and by expenditure shown explicitly. - Consistent annual and quarterly time series available since 1990. - Revision cycle disseminated on the website and in NA publications; preliminary data clearly identified; revised data disseminated with analysis explaining differences. - Data disseminated in hardcopy and on NSS website; release schedule preannounced; NA made available to all users at the same time. - Long time series with a fixed reference period available only on request. - Detailed metadata on concepts, definitions, and sources available in hardcopy and on the website; level of detail meets user requirements. - Catalog of publications and contact information for NA available to users. ### 2–5. Consumer Price Index (NSS) - Concepts, scope, and classification - Concepts and definitions broadly in line with international standards in 1993 SNA and the Consumer Price Index Manual (CPI Manual). - Armenia’s CPI based on the consumption concept. - CPI covers all resident households for Armenia, Yerevan, and ten regions (marzes), one of which includes two towns. - Informal activity and consumption of nonmonetary goods (own-produced agriculture products, goods provided by employers as income-in-kind) are included. - Classification follows Classification of Individual Consumption by Purpose, conforming to 1993 SNA, ILO, and CPI Manual guidelines. - Basis for recording, source data, and assessment - Valuation rules accord with 1993 SNA; prices are market (purchaser’s) prices paid by households (including taxes on products and trade and transportation margins). - Data collection programs adequate; household budget surveys (HBS) collected annually; CPI reweighted every two years. - Price data verified by established procedures; HBS weights assessed against retail trade, imports, etc. - Statistical techniques and validation - Missing and seasonal product prices estimated using cluster or cell mean approach. - Implicit and/or explicit quality adjustments for new and replacement products. - CPI sources and methods do not deal with owner-occupied dwellings except for maintenance and repair expenditures. - Standard errors or coefficients of variation monitored regularly for CPI surveys. - Studies on impact of updating weights, outlets, and items disseminated in NSS annual work plan. - Periodicity, timeliness, consistency, and accessibility - CPI is monthly and disseminated one day after the reference month, meeting and exceeding SDDS periodicity and timeliness. - Aggregation structure consistent from cell to item, group, and higher levels; city and regional aggregation consistent. - Aggregated historical time-series data available from 2003. - Revision policy provided by Law On State Statistics, Article 11, State Statistical Work Program, Annual; documentation and findings approved by State Statistical Council (SCS) and published. - CPI data widely disseminated in Armenian, Russian and English; charts and tables disseminated with long- and short-term series. - Release calendars appear in the Annual Program approved by the SCS; an advance release calendar giving precise data release dates one quarter in advance disseminated on the IMF’s DSBB (http://dsbb.imf.org). - Metadata on concepts, scope, classification, sources, and methods available on IMF’s DSBB; methodological notes in NSS Statistical Yearbook posted on NSS website. - Contact person identified in SDDS metadata linked to NSS website; CPI contact points publicized in official publications. ### 2–5. Producer Price Index (NSS) - Concepts, scope, and classification - NSS PPI concepts and definitions follow 1993 SNA and Producer Price Index Manual. - PPI covers 11 main branches of industry in total and by activity; additional PPIs for agricultural, construction, and freight industries. - Activity and product classification currently the All-Union Classification of Branches of the National Economy (OKOHX); NSS in advanced stages of reclassifying to NACE and CPA. - Basis for recording and source data - Timing and valuation rules accord with 1993 SNA; output in PPI weights and product prices valued at basic or producer prices. - Product weights based on sample surveys selected from a comprehensive and up-to-date business register; large and medium enterprises selected with certainty; small enterprises selected with rotating panel sample design. - Business register reviewed to identify new enterprises/products and defunct units; mergers and ownership changes accounted for. - Assessment, techniques, and revisions - Sampling and nonsampling errors monitored monthly for each survey. - Weights, price relatives, unit classification, and outliers routinely checked. - Nonresponse uncommon due to relationships between statistical authorities and enterprises; misclassified units reclassified and price errors corrected within a one month revision period. - Internationally accepted techniques used for missing observations; new products introduced only when base year changed. - PPI data and outputs routinely assessed; studies on impact of updating weights, establishments, and items disseminated in NSS annual work plan. - Periodicity, timeliness, consistency, and accessibility - PPI is monthly and disseminated one month after the reference month, meeting SDDS periodicity and timeliness. - PPI series consistent in aggregation. - Revision policy under Law on State Statistics, Article 11, State Statistical Work Program, Annual; documentation and findings discussed and approved by the SCS and published. - An advance release calendar giving one quarter advance notice of precise release dates is disseminated on IMF’s DSBB (http://dsbb.imf.org). - Short documentation on concepts, scope, classification, data sources, and methods available on IMF’s DSBB; methodological notes in NSS Statistical Yearbook posted on NSS website. - A contact person mentioned in SDDS metadata linked to NSS website; PPI contact points publicized in official publications. *Source: _cr0950 - 0. Prerequisites of quality (PDF chapter).* ### 2. Methodological soundness ### 2. Methodological soundness ### Government finance statistics — Concepts, scope, classification, recording - Concepts and definitions: - Analytical aggregates and indicators compiled for the government finance statistics (GFS) are consistent with the System of National Accounts 1993 (1993 SNA) and the Government Finance Statistics Manual 2001 (GFSM 2001). - A well defined migration path to full implementation of the GFSM 2001 with data for the general government starting in 2010. - Scope: - General government institutional coverage is not fully consistent with the GFSM 2001. - Central government includes all units that exercise authority over the entire economic territory of Armenia; the ten regions (marzes) have no budgetary autonomy and their operations are included in the central government. - Central government also includes extrabudgetary funds. - Operations of the NCO are not included, constituting a deviation from international standards. - Local government units, comprising only municipalities, are consolidated with central government to compile general government statistics. - Classification/sectorization: - Classification system used in the central GFS is broadly consistent with the GFSM 2001 beginning in 2008. - Local government data are still classified according to A Manual of Government Finance Statistics, 1986 (GFSM 1986). - Basis for recording: - All government operations are recorded on a cash basis. - No accrual-adjusted cash data currently available. - Data recorded on an accrual basis are planned for central government in 2009 and for general government in 2010. - Treasury records public debt at face value rather than market value. ### Government finance statistics — Source data, assessment, techniques, revisions - Source data: - Primary source: budget management system accounting records maintained by the Treasury. - Data on domestic and foreign financing provided by the Central Bank of Armenia (CBA). - Assessment of source data: - Quality controls embedded in the government accounting and reporting system routinely assess reports to ensure accuracy, including public sector debt. - Statistical techniques and consolidation: - Consolidated data are presented for the central and general and central government. - Preliminary quarterly central government data are revised to reflect spending financed by public investment units (PIU) accounts, which are subject to reporting delays. - Quarterly data on external disbursements for execution of the public investment program are adjusted accordingly. - Data on local government operations are available in sufficient detail to compile general government data without adjustment. - Assessment and validation: - Treasury data on domestic bank financing used in the GFS are cross-checked against CBA data. - Revision studies and practice: - Revision studies are not conducted; revisions are made and analyzed in the process of data compilation. - Monthly and quarterly data are preliminary when first released and are revised in the following month or quarter. - Preliminary and revised data are clearly identified; notes to tables contain information on data revisions and major methodology changes. ### Government finance statistics — Periodicity, consistency, accessibility, metadata, assistance - Periodicity and timeliness: - Armenia’s fiscal sector data meet or exceed the Special Data Dissemination Standard (SDDS) requirements. - Consistency: - GFS data are consistent internally, over time, and with other datasets. - Changes in legal status of noncommercial organizations starting in 2004 have been treated in fiscal data consistent with national accounts. - Data on domestic bank financing in the GFS provided by the central bank are consistent with Treasury accounts. - MFE data on public debt differ from, but are reconcilable with, CBA data; SDDS metadata explain difference as arising from face and market valuation in MFE and CBA sources, respectively. - Data accessibility: - Advance notice of release dates provided on the SDDS release calendar (linked from the MFE website http://www.mfe.gov.am) and published in the Annual Statistical Program. - Data disseminated simultaneously to all interested parties by posting on the MFE’s website and through the informational monthly report, Social and Economic Situation of the Republic of Armenia, disseminated by the National Statistical Service (NSS) (http://www.armstat.am/Publications). - Consolidated general government data are not published on the national websites but are submitted to the IMF for publication in the Government Finance Statistics Yearbook. - Metadata accessibility: - Brief description of methodology appears in Social and Economic Situation of the Republic of Armenia and in the publication, Statistical Yearbook of Armenia; more detailed descriptions available in ad hoc thematic publications. - Metadata and summary methodologies are available on the IMF’s Dissemination Standards Bulletin Board website. - Assistance to users: - Publications include contact information (names and telephone numbers of responsible persons). --- ### Monetary statistics — Concepts, scope, classification, recording - Concepts and definitions: - Monetary statistics comply fully with the methodology of the Monetary and Financial Statistics Manual (MFSM). - Scope: - Depository corporations survey (DCS) covers the Central Bank of Armenia (CBA) and the 22 commercial banks operating as of end-March 2008. - Accounts of 22 credit institutions (credit unions) will be included in the Other Depository Corporation (ODC) survey starting in May 2008. - Credit unions account for around eight percent of the loans and three percent of the deposits of ODCs. - DCS includes operations of one Karabagh bank and branches of Armenian banks in Karabagh, which is outside the scope of the economic territory used elsewhere. - Classification/sectorization: - Classification and sectorization of financial instruments follows the methodology of the MFSM. - Basis for recording: - Monetary statistics produced on an accrual basis, consistent with the MFSM. - Financial instruments valued at market prices. - Securities held to maturity recorded at amortized cost using the effective interest rate method. - Securities the CBA holds to maturity are valued at the end of the month at market prices. - Accounts in foreign currency converted daily into national currency using the average market exchange rate announced by the CBA. - Loans shown gross, with provisions for loan losses classified as Other accounts payable. ### Monetary statistics — Source data, assessment, techniques, revisions - Source data: - DCS based on consolidated balance sheets of the CBA and ODCs. - Banks utilize a uniform chart of accounts following international accounting standards. - Assessment of source data: - Data transmitted electronically. - CBA source data reviewed for accuracy by the Statistics and Accounting departments and the Internal Audit Department. - ODC source data double-checked by the Supervision Department. - Program for generating monetary statistics contains embedded routines to validate accuracy; monitoring system tests internal consistency and identifies large variations. - Statistical techniques: - Monetary data are based on the balance sheets of the CBA and ODCs, without statistical adjustments. - Assessment and validation: - ODC source data verified with other reports submitted by banks. - Data regularly monitored to investigate discrepancies. - CBA’s positions with other banks and interbank positions checked for consistency. - Stock data checked for consistency with weekly flow data. - Revision studies and practice: - Monetary statistics are not subject to routine revision studies; the public is made aware of revisions. - In principle, data are final when first released; occasional revisions are explained through footnotes and comments. - Errors in published data are corrected and figures revised in upcoming publications. - Quarterly and annual data of the CBA are preliminary, pending closing entries and audited report. - Provisional data become final after two months for quarterly statements and after three months for annual statement. - Revisions to methodology (e.g., expansion of coverage to credit institutions) are announced in advance and introduced after a waiting period. ### Monetary statistics — Periodicity, consistency, accessibility, metadata, assistance - Periodicity and timeliness: - Dissemination complies fully with SDDS requirements. - Consistency: - Data disseminated within a balance sheet framework ensuring accounting identities of the monetary survey. - Consistent historical data available since 1995. - Monetary data on foreign positions and net credit to government are consistent with balance of payments and fiscal data. - Data accessibility: - Data presented in aggregated form with methodological notes. - Advance release calendar for monetary data, strictly enforced, available on the CBA’s website and the IMF’s DSBB. - Data posted on the CBA’s website and published in the CBA Bulletin in Armenian and English. - Metadata accessibility: - Armenia has posted its monetary metadata on the IMF’s DSBB since November 2003. - All relevant laws and regulations are posted on the CBA’s website. - Manual on Compilation of Monetary and Financial Statistics in Armenia contains detailed metadata for monetary statistics. - Assistance to users: - Contact information for monetary statistics available on the CBA’s website and on the DSBB. - Assistance provided to users who can submit queries to the contact person or the Press Office of the CBA. - A databank is available where users can request data in Excel format. - CBA’s website contains information about electronic and hard copy publications and ways to obtain them. --- ### Balance of payments statistics — Concepts, scope, classification, recording - Concepts and definitions: - Concepts and definitions generally in line with the IMF’s Balance of Payments Manual, fifth edition (BPM5). - Scope: - All transactions between residents and nonresidents are, in principle, covered. - Banking sector data includes a bank headquartered in Karabagh and branches of Armenian banks located in Karabagh. - Classification/sectorization: - Operations classified in accordance with BPM5 requirements. - Basis for recording: - Transactions generally valued at market prices and converted at exchange rate at date of transaction. - Stocks generally recorded at market value or nominal value where appropriate. - Foreign direct investment recorded at book value. - For banking sector debt securities liabilities are valued at amortized value. - Transactions related to investment income recorded on a cash basis (time of actual payment), except interest income on assets and liabilities for the banking sector. ### Balance of payments statistics — Source data, assessment, techniques, revisions - Source data: - Main sources: customs, direct reporting for nonfinancial and financial sectors, ministries, the central bank, and household surveys complemented with bank reports on household transfers. - Net errors and omissions are not systematic in either direction or size over time, suggesting no systematic errors. - Gaps exist in coverage of data for financial assets issued by nonresidents and held by the private nonfinancial sector. - Assessment of source data: - Source data regularly checked for internal consistency at unit record and analytical levels. - Statistical techniques: - Sound adjustments made for coverage, timing, valuation, and classifications, particularly for travel, transportation, transfers, workers’ remittances and compensation of employees. - The c.i.f./f.o.b. adjustment is outdated. - Assessment and validation: - Regular consistency checks between various sources and items. - Stocks and flows are reconciled for financial account items. - Revision studies and practice: - No strict systematic revision studies, but statistical processes are informed and improved based on revisions feedback. - Quarterly data are available within one quarter of the end of the reference period; annual data after two quarters. - Periodicity and timeliness follow the SDDS. - Quarterly data for the preceding year are revised in connection with publication of annual data. - Preliminary and/or revised data are clearly identified; revision policy is available to the public. - Only a brief explanation of the major revision implemented in 2007 for period 2004–2006 was published. ### Balance of payments statistics — Consistency, accessibility, metadata, assistance - Consistency: - Statistical series are sufficiently detailed to enable checking internal consistency. - Inter-temporal series are consistent. - Balance of payments are consistent with other datasets, notably trade statistics, government finance, and monetary statistics. - Data accessibility: - Data disseminated in hardcopy publications and on the NSS website simultaneously and free of charge. - An advance release calendar is available. - Limited text and few graphs to facilitate interpretation of balance of payments/IIP data. - Metadata accessibility: - Metadata available in hardcopy publications and on the IMF’s DSBB. - Detailed documentation of methods and sources are not available. - Assistance to users: - CBA answers users’ queries and information requests. - Contact information provided in publications and on the NSS website. - A listing of publications and other available materials is posted on the website. --- ### III. Staff’s recommendations (cross-cutting and by statistical domain) - Cross-cutting recommendations: - Increase the resources of the NSS to retain qualified staff and improve office facilities and computing resources. - For national accounts, government finance, monetary and financial, and balance of payments statistics, exclude data on bank headquarters and branches located in Karabagh. - Post more, and more timely, English content on the NSS and MFE websites for international users. - Time series with a fixed reference period should be part of the standard set of published tables for national accounts. - National accounts: - Make adjustments to data on general government outlays, taxes, and subsidies to approximate data on an accrual basis. - Improve accuracy of quarterly source data by requesting collection of sub‑annual data on a discrete basis for all economic statistics surveys. - Implement sound statistical techniques in accordance with international guidelines for volume measures of imports and exports, and for estimating consumption of fixed capital and owner-occupied dwellings. - Consumer price index: - Develop an approach to covering household expenditures on owner-occupied dwellings for either consumption (rental value), capital formation (net acquisition cost), or both. - Producer price index: - Continue implementation of the Classification of Products by Activities to classify products in the PPI. - Government finance statistics: - Implement a process for users to provide feedback to the MFE compilers on perceived problems with quality or usefulness of data. - Align the chart of accounts of municipalities and local governments to GFSM 2001 requirements. - Include the NCO in government finance statistics data published on national websites. - Produce a financial balance sheet of the general government. - Follow through on the plan to implement GFSM classifications for recording local government transactions by 2009 and accrual recording for central and local government transactions by 2010. - Use market value, rather than face value, for financial assets other than loans and for nonfinancial assets. - Balance of payments statistics: - Produce balance of payments and international investment position (IIP) statistics for the financial corporations sector that exclude bank headquarters and branches located in Karabagh from the Armenian economic territory. - Update c.i.f./f.o.b. factors for international trade in goods. - Improve source data for financial assets issued by nonresidents and held by residents both domestically and abroad. - Along with revised data, provide users with more detailed analysis of major revisions due to changes in methods, introduction of additional source data, and adjustments. - Provide text and graphs to facilitate interpretation of balance of payments/IIP data disseminated in publications. - Publish more comprehensive metadata on sources, methods, and adjustments. *Source: _cr0950 - 2. Methodological soundness* ### Appendix I. Armenia: Practices Compared to the SDDS Coverage, Periodicity, ### _cr0950 - Appendix I. Armenia: Practices Compared to the SDDS Coverage, Periodicity, and Timeliness of Data ### Periodicity and Timeliness: SDDS comparison snapshot - Real Sector - National accounts: Coverage = Yes; SDDS periodicity = Q; Armenia periodicity = Q; SDDS timeliness = 1 Q; Armenia timeliness = 1 Q - Production index: Coverage = Yes; SDDS periodicity = M; Armenia periodicity = M; SDDS timeliness = 6 W (1 M); Armenia timeliness = 20 D - Employment: Coverage = Yes; Armenia periodicity = Q; Armenia timeliness = 1 Q; Armenia periodicity note = 1M (table formatting indicates mixed frequency) - Unemployment: Coverage = Yes; SDDS periodicity = Q; Armenia periodicity = M; SDDS timeliness = 1 Q; Armenia timeliness = 20 D - Wages/earnings: Coverage = Yes; SDDS periodicity = Q; Armenia periodicity = M; SDDS timeliness = 1 Q; Armenia timeliness = 20 D - Price index: Consumer prices: Coverage = Yes; SDDS periodicity = M; Armenia periodicity = M; SDDS timeliness = 1 M; Armenia timeliness = 1 D - Price index: Producer prices: Coverage = Yes; SDDS periodicity = M; Armenia periodicity = M; SDDS timeliness = 1 M; Armenia timeliness = 20 D - Fiscal Sector - General government or public sector operations: Coverage = Yes; SDDS periodicity = A; Armenia periodicity = Q; SDDS timeliness = 2 Q; Armenia timeliness = 2 M - Central government operations: Coverage = Yes; SDDS periodicity = M; Armenia periodicity = M; SDDS timeliness = 1 M; Armenia timeliness = 1 M - Central government debt: Coverage = Yes; SDDS periodicity = Q; Armenia periodicity = Q; SDDS timeliness = 1 Q; Armenia timeliness = 2 M - Financial Sector - Analytical accounts of the banking sector: Coverage = Yes; SDDS periodicity = M; Armenia periodicity = M; SDDS timeliness = 1 M; Armenia timeliness = 1 M - Analytical accounts of the central bank: Coverage = Yes; SDDS periodicity = M (W); Armenia periodicity = M (D); SDDS timeliness = 2 W (1 W); Armenia timeliness = 1 D - Interest rates: Coverage = Yes; SDDS timeliness indicators shown as D D 1/ D (table indicates daily dissemination; note 1/ applies) - Stock market: Share price index: Coverage = NA; SDDS timeliness column shows D (and note 1/) - External Sector - Balance of payments: Coverage = Yes; SDDS periodicity = Q; Armenia periodicity = Q; SDDS timeliness = 1 Q; Armenia timeliness = 1 Q - Official reserve assets: Coverage = Yes; SDDS periodicity = M (W); Armenia periodicity = M; SDDS timeliness = 1 W; Armenia timeliness = 1 W - Reserves template: Coverage = Yes; SDDS periodicity = M; Armenia periodicity = M; SDDS timeliness = (1 W) 1 M - Merchandise trade (exports: f.o.b.; imports: f.o.b.): Coverage = Yes; SDDS periodicity = M W; Armenia periodicity = W; SDDS timeliness = 8 W (4–6 W); Armenia timeliness = 3 W - International investment position: Coverage = Yes; SDDS periodicity = A (Q); Armenia periodicity = Q; SDDS timeliness = 3 Q; Armenia timeliness = (1 Q) 1 Q - External debt: Coverage = Yes; SDDS periodicity = Q; Armenia periodicity = Q; SDDS timeliness = 1 Q; Armenia timeliness = 1 Q - Exchange rates: Coverage = Yes; SDDS timeliness = D D 1/ D (daily; note 1/) - Socio-demographic data - Population: Coverage = Yes; SDDS periodicity = A; Armenia periodicity = Q (table shows mixed formatting) - Notation and footnotes from the source table: - D = Daily; W = Week(ly); WD = Working days; M = Month(ly); Q = Quarter(ly); A = Annually; NLT = No later than; (...) = not applicable - Italics indicate recommended or encouraged categories. - 1/ Given that the data are broadly disseminated by private means, the timeliness with which official data are disseminated is not critical. ### Authorities' responses — institutional reactions and implementation status - Document identification - Report type: Report on the Observance of Standards and Codes (ROSC)—Data Module - Volume II: "Response by the Authorities" - Date of responses: January 23, 2009 - Ministry of Finance (MFE) highlights and actions - User feedback facility: Users can apply to the Ministry of Finance for clarifications, additional data, and explanations on Government Finance Statistics. - Inclusion of NCOs: NCOs' transactions by state participation are included in state budget indicators and in consolidated budget reports posted on the Ministry of Finance website; reports submitted to the IMF within the SDDS also include transactions of NCOs with more than 50 percent state participation. - GFSM and accrual implementation plans: - Plan to implement GFSM classifications for local government transactions by 2009 and extend GFSM 2001 classifications to the general government by 2010. - Plan to implement accrual recording of central and local government transactions by 2010. - Dissemination: - Annual consolidated budget reports since 2004 are posted on the Ministry of Finance website (including NCOs and excluding them). - Revisions: - State budget reports are double-checked via the electronic treasury system and reports submitted by different bodies; the version presented to the National Assembly is revised and checked. - National Statistical Service (NSS) responses by dataset - General funding context: "Statistical system in Armenia is financed from the state budget." - National Accounts (selected actions and acceptances) - NSS budget: Recommendation to increase budget for ILCSH and LFS and competitive salaries acknowledged; funding through state budget. - CBA data for Karabagh: CBA will provide financial sector data excluding nonresident units in the Karabagh region as soon as available. - CPA implementation: Implementation started; industry sector CPA implementation to be finished during 2009; implementation to proceed step by step. - Use of accrual-adjusted MFE data: NSS and Ministry of Finance started discussions to use data from state statistical report (form 1-TG, Decision No 14-N dated 12.12.2008) of large and medium commercial organizations (and a sample of small organizations) on taxes and subsidies (accrual basis) for adjustment of cash basis data until Ministry of Finance calculates accruals. - Construction price index: Calculated by the Ministry of Urban Development; NSS engaged in discussions and taking into account international expert suggestions (EU TACIS). - Import price index: Methodology improved since 2008 second quarter. - Quarterly collection: New report form (1-TG) approved by State Council on Statistics on 12.12.2008 (Decision No 14-N) to be collected from large and medium organizations (and sample of small) on a discrete quarter basis to support quarterly national accounts. - External transactions in national currency: Since second quarter 2008, Balance of Payments Division provides external transaction information to National Accounts Division in national currency. - Owner-occupied dwelling output: Recommendation accepted; discussions and review initiated; NSS notes 94 percent estimate of population living in own dwellings (Household Survey data estimate) and anticipates need for international expert assistance. - Consumption of fixed capital: Recommendation to explore perpetual inventory method accepted; evaluation of methodology, resources, and potential economic census discussed; international expert assistance likely needed. - Construction output measurement: Discussions underway to evaluate extrapolation of output versus deflation methods. - Deflation of trade flows: Recommendation accepted; improvements implemented: volume of imports deflated using weighted price indices of main partner countries; volume of exports deflated using PPI indices for relevant product groups. - Benchmarking: Denton method (BENCH software) adopted in 2008 to benchmark quarterly with annual data for 2005–2007 GDP production and expenditure side at 2005 annual average prices; tables published in "Socio-economic situation of the Republic of Armenia for January–July" monthly report and "National Accounts, 2008". - Historical series reconstruction: Recommendation accepted; GDP production side data for 2000–2004 reviewed from OKOHX to NACE; review of 2000–2004 quarterly GDP data by NACE included in 2009 Annual Statistical Program. - Dissemination of chain-linked series: Annual series on NSS website currently; work in progress to have quarterly chain-linked series; NSS publications contain quarterly data from 1992. - Consumer Price Index (CPI) - Staffing/resources: Recommendation for improved CPI staff computing resources, office space, and financing acknowledged; funding from state budget. - Used goods in imports: NSS attempted to include used products and cars in CPI but halted due to technical characteristics and identification issues; preparatory work ongoing; plan to use EU TAIEX program for study visits. - Owner-occupied housing in CPI: Discussions started with Household Survey division to estimate rental equivalence for owner-occupied dwellings; plan to use EU TAIEX program visits. - Producer Price Index (PPI) - Staffing/resources: Recommendation for improved PPI staff computing resources, office space, and financing acknowledged; funding from state budget. - Classification: Work in process to adopt NACE and CPA classifications; work in final stage and from 2009 PPI calculations will use recommended classifications. - Balance of Payments (BOP) - Staffing/resources: Recommendation for improved BOP staff computing resources, office space, and financing acknowledged; funding from state budget. - Remittances and transfers: Work in process to develop a special presentation on remittances, compensation of employees, and private transfers along lines suggested in BPM6; expected establishment during 2009. - Integration with national accounts financial accounts: Plan to improve sources of financial flows; include questions about financial assets abroad of noncommercial organizations in questionnaires. - c.i.f./f.o.b. factors: Plan to carry out a sample survey among organizations active in foreign trade if financial resources exist to obtain more precise FOB and SIF estimates. - Revisions transparency: Recommendation to explain reasons, methods, and effects of revisions accepted; future revisions will be accompanied by detailed methodological explanations. - Analytical commentary: NSS notes obligation under UN fundamental principles to avoid analysis in statistical publications; NSS discusses including CBA-authored analyses of BOP developments in NSS publications. - Metadata: Planned improvements and enrichment of BOP metadata, especially for adjustments and estimation techniques. - NSS signatory: Artashes Shaboyan, Member of State Council on Statistics - Central Bank of Armenia (CBA) responses - Karabagh data treatment (cross-cutting): CBA considers Karabagh part of Armenia's economic territory because the dram is legal tender there and banking institutions are licensed and supervised by CBA; exclusion/inclusion remains subject of ongoing discussions. - BOP/IIP for financial corporations: CBA applies the same principle as monetary statistics—Karabagh included in Armenian economic territory for BOP and IIP statistics of the financial sector. - CBA signatory: Mr. Martin Galstyan, Head, Statistics Department ### Key recommendations, acceptances, and implementation timelines (as stated) - GFSM classifications for local government transactions: plan to implement by 2009; extend GFSM 2001 classifications to general government by 2010. - Accrual recording of central and local government transactions: plan to implement by 2010. - CPA implementation in industry: to be finished during 2009. - Use of accrual data from form 1-TG (Decision No 14-N dated 12.12.2008) to adjust cash-basis taxes/subsidies until MFE implements accruals. - Benchmarking implementation: Denton method applied for 2005–2007 and results published. - PPI classifications: adoption of NACE and CPA beginning in 2009. - BOP presentation of remittances and private transfers: expected to be established during 2009. - Improvements to import/export deflation: volume of imports deflated by weighted price indices of main partners; exports deflated using PPI indices for product groups. - Historical series reconstruction: GDP series 2000–2004 converted from OKOHX to NACE; quarterly review included in 2009 program. - Metadata and revision explanations: commitments to provide more detailed methodological explanations accompanying revisions and to enrich metadata for BOP. ### Selected exact numeric and formal references preserved from source - Dates and decisions: - Responses dated: January 23, 2009 - State Council on Statistics Decision No 14-N dated 12.12.2008 (approval of form 1-TG) - Quantitative estimates and sample figures: - Owner-occupied dwellings prevalence: "94 percent by the Household Survey data estimate" - Timeliness/frequency notation examples (preserved verbatim): - "6 W (1 M)" ; "20 D" ; "1 Q" ; "1 M" ; "2 W (1 W)" ; "8 W (4–6 W)" ; "(1 Q) 1 Q" ; "M (W)" ; "M (D)" - Acronyms and standards referenced verbatim: - SDDS; GFSM; GFSM 2001; CPA; PPI; CPI; BOP; BPM6; IIP; ILCSH; LFS; BENCH; Denton method; EU TACIS; EU TAIEX; UN fundamental principles on official statistics *Source: _cr0950 - Appendix I. Armenia: Practices Compared to the SDDS Coverage, Periodicity, and Timeliness of Data; Responses by the Authorities; Report on the Observance of Standards and Codes (ROSC)—Data Module; January 23, 2009.* ### 1. DQAF (July 2003): Summary of Results for National Accounts.......................................... 27 ### 1. DQAF (July 2003): Summary of Results for National Accounts ### Prerequisites of quality — Legal and institutional environment - Legal basis: - Law On State Statistics of Armenia, approved April 4, 2000, governs collection, processing, accumulation, summarizing, storing, analysis, exchange, and presentation (publication) of statistical information. - Law On the Population Census of Armenia, adopted October 12, 1999, governs census activities. - Law On Three-Year State Statistical Work Program (2007–2009) adopted November 29, 2006. - Regulatory acts (adopted by the State Council on Statistics—SCS): - Resolution No. 110-N “On Approval of the Charter and Structure of the National Statistical Service of the Republic of Armenia” of July 26, 2002. - Resolution No. 20-N “On Approval of the Regulations of the State Council on Statistics ...” of November 24, 2006. - Resolution No. 60 “On Approval of the Procedure for the Publication of Statistical Information” of August 15, 2001. - Data sharing and coordination: - Procedures regulated by the Law On State Statistics and Resolution No. 109 of the SCS “On Approval of the Procedure for the Maintenance of Administrative (information) Registers and Receiving Information from Them” of May 10, 2002. - Annual Program for Statistics defines responsibilities and administrative data to be supplied to the NSS. - Formal inter-agency agreements exist between the NSS, the State Customs Committee Service (SCCS) and the Central Bank of Armenia (CBA); addenda to agreements are updated annually. - Informal agreements with Ministry of Finance and Economy (MFE), State Tax Service, and Agency for Social Insurance; regular meetings facilitate data exchange. - NSS and State Tax Service recently agreed on exchange of individual data on profit/loss statements and balance sheets. - Confidentiality: - Regulated by the Law On State Statistics and Resolution No. 53-N of the SCS “On Approval of the Procedure for Ensuring the Confidentiality of Statistical Data” of June 25, 2001. - A Commission on Statistical Confidentiality Issues exists within NSS; all NSS staff must sign a sworn declaration on statistical confidentiality. - Mandatory reporting: - Procedure for presentation of statistical data established by Law On State Statistics and Resolution No. 11-N of the SCS “On Approval of the Procedure for the Presentation of Statistical Data” of October 03, 2003. - Reporting obligations mandated by Article 20 of the Law On State Statistics (Article text summarized: units must present necessary statistical data per Program; execute instructions related to state statistics and accounting). ### Resources - NSS staffing (as of April 2008): - Headquarters civil servants (tenured): 155 - Regional civil servants (tenured): 179 - Total civil servants (tenured): 334 - Statisticians (fixed term) Headquarters: 33 - Statisticians (fixed term) Regional offices: 358 - Statisticians (fixed term) Total: 391 - SCS personnel: 26 - NSS Total Headquarters: 214 - NSS Total Regional offices: 537 - NSS Total: 751 - National Accounts Division staffing: - Seven employees in the Macroeconomic Indicators and National Accounts Division. - Six staff members have higher education; one has incomplete higher education. - Two national accounts staff attended IMF national accounts courses in Vienna; others attended courses/seminars by other donors. - Staff is highly professional and familiar with the System of National Accounts 1993 (1993 SNA). - Resource constraints and donor dependence: - Low pay hampers recruitment and retention; national accounts salaries are much lower than in MFE or CBA. - Financial resources for some sources depend on donors (example: financing of the Integrated Living Conditions Survey of Households (ILCSH) depends on the World Bank). - There is no regular financing of the Labor Force Survey (LFS). - Recommendation: - The NSS budget should be increased to provide financial resources for the ILCSH and the LFS, as well as for providing competitive salaries for the qualified staff. - Resource management: - Chief of the NSS staff disposes of state property attached to NSS and organizes preparation of the NSS draft budget. - Annual expenditure budget and financial reports are approved by the NSS President; annual balance and financial reports—by the SCS. - Authenticity of annual financial reports can be audited per government procedures. ### Relevance - Monitoring user needs: - State statistical work programs (three-year and annual) are posted on the NSS website and submitted to a selected sample of about 100 users (government, scientific and educational institutions, judicial bodies, banking system, business, nongovernmental and international organizations and mass media) for comments and recommendations. - Annual Program is approved by the SCS and then adopted as a legal document by the Ministry of Justice (MOJ). - Factors considered when developing the Annual Program: - Availability of resources, burdens on respondents, cost-effectiveness, international comparability, potential stable periodicity for long-term trend analysis, and harmonization with annually allocated resources. ### Other quality management - Quality policy and processes: - Quality policy anchored on application of universal statistical methodology, compliance with international standards, international comparability, and use of necessary technical classifications. - NSS management actively attaches importance to data quality and takes initiatives to improve quality. - NSS reviews data for accuracy and has internal processes to identify issues at collection, compilation, and dissemination stages. - National Accounts Division functions as an internal audit for data consistency and assessment of new questionnaires and methodologies. - Internal responsibilities for quality assurance: - Ensuring methodology of indicators—SCS and Statistical Work Methodology and Classifications Division. - Business statistics—Macroeconomic Indicators and National Accounts Division and Senior Adviser to the President of the NSS. - Macroeconomic indicators—Senior Adviser to the President of the NSS. - Publications and dissemination—Vice President and Statistical Publications and Marketing Division. ### Assurances of integrity — Professionalism - Governance and impartiality: - Article 5 of the Law On State Statistics mandates principles of objectivity, reliability, and integrity; requires observance of international methodological standards and practices on accessibility and dissemination. - Article 9 specifies qualifications and restrictions for the President of the NSS (must be a citizen of Armenia with high economic education and work experience in statistics; cannot hold other public/private positions except scientific, pedagogical and creative work; tenure shortened only by resignation, loss of citizenship, court determination of incapacity, conviction, or death). - President nominates deputies for appointment by the SCS. - Professional development: - Strong links with universities; staff participate in international statistical training programs and international meetings on national accounts organized by OECD and UNECE. - Independence of methodological choices: - NSS makes choices about sources, techniques, and dissemination solely on professional statistical considerations; no evidence of outside interference. - Annual Program publicly sets out statistical activities, coverage, periodicity, surveys to be implemented, publications and periodicity, list of administrative registers and summary information to be provided, and list of users and structure of free information provision. - Right to comment on misuse: - Under the Law On State Statistics, NSS has the right (but not obligation) to provide clarifications on misuse and misinterpretation of published statistical information. - NSS policy is to provide additional explanations with releases; the Public Relations Unit monitors media daily. *Source: _cr0950 - 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 terms and conditions under which statistics are collected, processed, and disseminated are available to the public. - Users have full access to information about release timetables, confidentiality of individual data, and other specific points. - Laws and programs published and posted (Armenian versions on the NSS website): - The Law On State Statistics of the Republic of Armenia: Official Bulletin of the Republic of Armenia, No. 8 (106) of April 28, 2000. - The Law On the Population Census of the Republic of Armenia: Official Bulletin of the Republic of Armenia, No. 28 (94) of November 13, 1999. - The Law On the Three-Year Program of Statistical Projects for 2007–2009 of the Republic of Armenia: Official Bulletin of the Republic of Armenia, No. 66 (521) of December 25, 2006. - SCS regulatory legal acts published in the Bulletin of Departmental Regulatory Acts and posted in Armenian on the NSS website: - Resolution No. 110-N of the State Council on Statistics “On Approval of the Charter and Structure of the National Statistical Service of the Republic of Armenia” of July 26, 2002: Bulletin No. 21 (107) of September 2, 2002. - Resolution No. 11-N of the SCS “On Approval of the Procedure for the Presentation of Statistical Data” of October 03, 2003: Bulletin No. 3 (151) of February 02, 2004. - Resolution No. 53 of the SCS “On Approval of the Procedure for Ensuring the Confidentiality of Statistical Data” of June 25, 2001: Bulletin No. 15 (78) of September 4, 2001. - Resolution No. 60 of the SCS “On Approval of the Procedure for the Publication of Statistical Information” of August 15, 2001: Bulletin No. 3 (89) of February 11, 2002. - Resolution No. 20 of the SCS “On Approval of the Regulations of the State Council on Statistics and on Repealing the Resolution No. 10 of the State Council on Statistics of the Republic of Armenia of August 15, 2000” of November 24, 2006: Bulletin No. 30 (239) of December 15, 2006. - Resolution No. 109 of the SCS “On Approval of the Procedure for the Creation and Maintenance of Administrative Registers” of May 10, 2002: Bulletin No. 17 (103) of July 15, 2002. - Following SCS approval, all government statistical reporting forms and instructions are published in the Bulletin of Departmental Regulatory Acts and Armenian versions are posted on the NSS website. ### Internal governmental access prior to release (1.2.2) - National accounts data are released simultaneously to all users. - No government officials outside the NSS have access to the data prior to their release. ### Identification of statistical products (1.2.3) - All data releases are clearly identified as being produced by the NSS. - In joint publications, NSS data are identified as a product of the statistical office. - NSS print publications identify NSS as the source. - The NSS Public Relations Division scans other websites using NSS data to check attribution. - The NSS and the CBA Statistics Department regularly cross-check published data. ### Advance notice of methodological changes (1.2.4) - Major changes in methodology, source data, and statistical techniques are announced in advance through publication of the annual statistical program. - Following legislation (Laws on State Statistics and on Legal Acts, Resolution No. 11-N of the SCS “On Approval of the Procedure for the Presentation of Statistical Data,” etc.), the NSS notifies parties responsible for presentation of statistical information of methodology changes by providing new statistical reporting forms and/or instructions after SCS approval and publication in the Bulletin of Departmental Regulatory Acts. ### Ethical standards (1.3.1) - Guidelines for NSS staff behavior are set by: - The Law On Civil Service: Official Bulletin of the Republic of Armenia, No. 1 (176) of January 09, 2002. - Resolution of Armenia Civil Service Board No. 13-N, “On Approval of the Guidelines for the Civil Servants’ Ethics” of May 31, 2002: Bulletin of Departmental Regulatory Acts No. 18(104) of August 01, 2002. - Guidelines for behavior are provided in legislation on the civil service. ### 2. Methodological soundness ### Concepts and definitions (2.1.1) - National accounts compiled in accordance with the fundamental concepts and methodological foundations of the 1993 SNA. - Time series following the 1993 SNA are available since 1990; aggregates for 1987-1989 were calculated using conversion tables from MPS to 1993 SNA. - Definitions: - GDP (production side, market prices): sum of gross value added of resident producers, plus net taxes (less subsidies) on products. - GDP (expenditure side): total final expenditures at purchasers’ prices, capital formation and net export of goods and services. - GDP (income based): compensation of employees, plus gross profit and gross mixed income, as well as taxes on production and import less subsidies. ### Scope (2.2.1) - National accounts cover all tables and accounts defined by ISWGNA as minimum for 1993 SNA implementation and most recommended accounts. - Compiled and disseminated accounts include: - annual and quarterly value added and GDP at current and constant prices by activity; - annual and quarterly expenditures of GDP at current and constant prices; - annual value added components at current prices by activity; - sequence of accounts for the total economy (up to financial accounts) and by institutional sectors with an annual frequency; - annual rest of world accounts. - Experimental supply and use tables compiled for 1993, 1998, and 2005 (not published). - NSS is working on implementing annual financial accounts. - Residence defined per 1993 SNA and BPM5; economic territory includes territorial enclaves such as embassies and free zones; part-year cross-border workers considered residents. - Exception noted: one nonresident commercial bank headquarters and few nonresident branches of Armenian banks in the Karabagh region are included in financial sector data and thus implicitly in national accounts scope. - Recommendation: Request from the CBA data on financial sector excluding nonresident units in the Karabagh region. - Production boundary per 1993 SNA; scope of output measurement includes: - research and development on own-account; - own-account production of goods for own consumption; - output of goods for own-account fixed capital formation; - mineral exploration; - production of entertainment, literary or artistic originals; - production of computer software. - Illegal production excluded except illegal smuggling, for which estimates are made. - Asset boundary per 1993 SNA; tangible assets include defense-related assets usable for civilian purposes, valuables, agricultural work-in-progress (quarterly accounts). Intangible assets include mineral exploration, computer system software and databases (purchased or built in-house), entertainment, literary or artistic originals, patented entities, leases and other transferable contracts. ### Classification/sectorization (2.3.1) - Classification of transactions, flows, and institutional units broadly follows 1993 SNA recommendations. - Activity classifications: - Since 1990, OKOHX used for GDP production estimates. - As of 1998, both OKOHX and NACE used. - Since 2007, NACE used for GDP production estimates. - Product data collected using national classification of products, converted into Prodcomlist via detailed conversion key. - NSS implementing CPA and expecting to finish it in 2009. - Harmonized System used for exports and imports compilation. - COICOP used in ILCSH and household final consumption expenditure compilation. - State budget execution classified according to COFOG. - Recommendation: Enhance the implementation of the CPA. ### Basis for recording (2.4) - Valuation (2.4.1): - Valuation rules per 1993 SNA. Market prices used for valuation of flows and stocks. - Output valued at basic prices; intermediate consumption valued at purchase prices excluding the deductible part of VAT. - Total exports and imports valued on a f.o.b. basis. - Transactions in foreign currency converted to national currency using the daily exchange rate. - From 1990 to 1993 aggregates compiled in rubles; since 1994 compiled in Armenia drams. - Recording (2.4.2): - Accrual accounting followed in principle for all accounts; accounting law and standards obligate units to record on an accrual basis. - Exceptions: general government and some rest-of-the-world transactions recorded on a cash basis. - The MFE plans to produce budget data on an accrual basis in the medium term. - Recommendation: Request from the MFE adjusted data for taxes, subsidies, and expenditures of general government to approximate accrual recording. - Grossing/netting (2.4.3): - Grossing and netting procedures in accordance with the 1993 SNA. - Transactions between establishments within the same enterprise recorded on a gross basis. ### 3. Accuracy and reliability ### Source data (3.1) - Source data collection methods: - (i) surveys of establishments and enterprises; - (ii) household surveys; - (iii) price statistics surveys; - (iv) census surveys; - (v) administrative data sources. - Business register and enterprise surveys: - Since 2000, NSS maintains a statistical business register linked to the Tax Register and the administrative register of the MOJ. - Business register contains about 12,000 legal entities and 3,600 entrepreneurs. - Register contains main and secondary activity, number of employees, turnover, capital; updated annually via special statistical survey. - Units stratified into four groups—micro, small, medium, and large—with criteria (employment and revenues) varying by activity. - Main non-agricultural surveys and reports: - Annual and quarterly report of economic activity of nonfinancial establishments (1-TG). - Annual and quarterly book-keeping reports (profit-loss statements—1-F). - Annual and quarterly balance sheets of legal entities (2-F). - Annual and monthly report on industrial output (1-P). - Monthly, quarterly, and annual surveys of business statistics units. - Structural reports for agriculture. - Coverage details: - Annual/quarterly 1-TG, 1-F, 2-F request detailed output, intermediate consumption, employees, inventory changes, taxes, subsidies from all legal entities; collected also from financial sector units (all but commercial banks and credit unions). - Coverage: all large and medium enterprises; small and micro establishments (~8,000) surveyed with a sample of around 1,000 units (representative by regions and activities); questionnaires for small/micro simplified. - Quarterly data often collected on a cumulative rather than discrete basis. - Industrial enterprises survey: - Exhaustive monthly survey of about 2,350 units in mining, manufacturing, electricity, gas, and water. - Quarterly includes a sample of micro units. - Collects output, employment, physical production, inventory changes, and output in previous year prices. - Enterprises instructed to compile previous year output at average prices of the current year; instructions general and NSS lacks insight on compilation methods. - Comparable price data used for compiling the industrial production index (IPI). - Business statistics units (construction, trade, transportation, services) conduct annual and sub-annual structural surveys; most collect cumulative rather than discrete data. - Agricultural statistics: - NSS collects detailed agricultural unit data. - January 1 each year: livestock census survey. - June 1 each year: crop area census survey. - Monthly data from all rural municipalities (867) on harvested crops and livestock products used to estimate physical volumes. - Agricultural Statistics Division business register: approximately 340,000 household units and 100 establishments. - Monthly sample survey of 7,638 household farms for intermediate consumption and investments; annual questionnaire more detailed. - NSS preparing an Agricultural census in 2010. - NPISHs: - Surveyed once in five years; last survey undertaken in 2006. - Relative share of NPISHs in GDP less than two percent. - Questionnaire sufficiently detailed for national accounts. - Household surveys: - ILCSH introduced and carried out annually since 2001. - Conducted throughout the year with monthly rotation of households and settlements. - Sampling frame: Population census carried out in 2001. - Sample: 7,872 households selected via a random two-step stratified sample. - Data collected on household composition, employment, land ownership, agricultural production and investment, revenues, income, social and other characteristics. - Households fill monthly diary on expenditures for foods, nonfoods, services, and production for own consumption. - ILCSH also collects labor force characteristics. - National accounts staff consider ILCSH data quality to be good. - Labor Force Surveys (LFS): - NSS undertook two LFSs in the last five years (2001 and 2004) due to lack of financing; financed by EU TACIS. - Price statistics: - Extensive use of IPI, CPI, and unit values (UVI) of foreign merchandise trade. - Other price information: sale prices of agricultural products, price indices of purchases by agricultural enterprises, construction price index for buildings and construction materials. - Accuracy concerns: construction price index and imports price index not considered satisfactory by national accounts staff. - Recommendation: Improve the accuracy of the construction price index and the imports price index to be used as deflators in national accounts. - Administrative data sources: - MFE compiles central and local government statistics (including social security fund) and provides quarterly data to the National Accounts Division by economic and functional classification; data include all defense-related expenditure and are sufficiently detailed to measure output, intermediate consumption, fixed-capital formation, and final consumption of government services. - NSS receives monthly data on imports and exports of goods from the SCCS. - National accounts compilers do not have access to individual tax returns, only aggregates. - Quarterly and annual financial statements and profit/loss statements collected by NSS. - NSS receives annual and quarterly balance of payments data from the Balance of Payments Division of the NSS following BPM5 concepts and definitions. - Source data consistency and recording: - Generally source data are consistent with definitions, scope, classifications, time of recording, reference periods, and valuation required for national accounts. - Exceptions and issues: - Quarterly source data collected on a cumulative rather than discrete basis. - Balance of payments data published only in dollars, not in national currency; NSS converts exports and imports into Armenia drams using the quarterly exchange rate. - Recommendations: - Start collecting quarterly data from establishments on a discrete basis. - Request from the Balance of Payments Division data on external transactions in national currency. - Timeliness (3.1.3): - No major problems with the timeliness of source data. - Establishment data, price statistics data, household data, foreign trade statistics, general government data, and balance of payments data are obtained on a timely basis. *Source: _cr0950 - 1.2 Transparency* ### 3.2 Assessment of source data ### _cr0950 - 3.2 Assessment of source data ### 3.2 Assessment of source data — main findings - Source data (censuses, sample surveys, administrative records) are routinely assessed for coverage, sample error, response error, and nonsampling error; results are monitored and made available to guide statistical processes. - Information is available about sampling and nonsampling errors for all surveys. - National Accounts Division and business statistics units keep internal archives on encountered problems (e.g., misclassification, measurement) to avoid recurrence. - Outliers are checked and, if necessary, removed from final results; high-value transactions are confirmed with respondents. - Household survey is audited to verify accuracy of individual survey data. - Source data are validated for temporal consistency and consistency with national accounts definitions, valuation, and classifications. - Secondary sources (budgetary data, foreign trade data, price indices, and other data) are routinely reviewed and checked for consistency with national accounts definitions, valuation rules, reference periods, and classifications. ### 3.3 Statistical techniques — practices and findings - Regional statistical offices collect and process source data; NSS designs data validation software for each survey questionnaire (checking, coding, editing, tabulation). - Individual data stored in a database; grossing-up factors for sample surveys are derived scientifically. - A special study on the nonobserved economy (NOE) was done in 2003 with TACIS technical assistance; data and metadata were disseminated in a special publication. - National accounts staff compiles annual and quarterly estimates for nonobserved activities by activity using the employment approach. Estimates are based on: - LFS data, - employment and wages from regular establishments’ surveys, - structural agricultural statistics, - household data. - Procedures used to incorporate NOE estimates by activities are well documented. - Production approach details: - Output and intermediate consumption estimates made at three-digit NACE, Rev. 1 level. - No ratios are used in compiling current price estimates. - Agricultural gross output calculated from quantities and prices; intermediate consumption includes seeds, fertilizer, livestock feed, power, and repairs. - Output of owner-occupied dwellings estimated from sample cost data extrapolated to total floor area; this method tends to underestimate output because costs data seem too low. - Recommendation: Estimate output of owner-occupied dwellings using data on floor area and data on market rents stratified by urban/rural regions. - Work-in-progress treated in conformity with international guidelines except for agricultural work-in-progress. - Inventories adjusted for holding gains/losses based on stock levels, type of inventories, and NSS price indices. - Consumption of fixed capital is not estimated by the perpetual inventory method; instead derived from a sample of enterprise data and adjusted with historical ratios. - Recommendation: In the medium term, explore estimating consumption of fixed capital using the perpetual inventory method. - MFE collects data on a cash basis; NSS does not adjust it to an accrual basis. - Constant price compilation techniques are sound; mostly use double indicator method (double deflation or extrapolation/deflation). - Output estimated by deflation or extrapolation. - Intermediate consumption derived by deflation of elements using detailed annual report information and respective price indices. - Double deflation used in industry, construction, transport and communications, and market services. - Trade: trade margin extrapolated with the volume index of trade. - Agriculture: output extrapolated by volume indicators; intermediate consumption deflated by an implicit price index. - Nonmarket services: value added extrapolated using employment data assuming constant labour productivity. - Volume measures of taxes on products deflated by the implicit price index of the activities subject to tax. - Recommendation: For construction, use extrapolation of output rather than deflation (accuracy of construction output price index not satisfactory); use extrapolation of taxes with the implicit volume index of activities subject to tax rather than deflation. - Constant price GDP estimates: - Until 2006 compiled in average prices of 1998. - From 2007 compiled in average prices of 2005. - Expenditure approach details: - GDP by expenditure components derived independently, including independent estimates of household final consumption expenditure, gross fixed capital formation (GFCF), and changes in inventories. - Household final consumption expenditure compiled using commodity flow method; main sources: retail sales adjusted with household budget data and balance of payments; business statistics used for services (water, electricity, heat). - Household consumption compiled at a detailed level of COICOP. - Government final consumption expenditure excludes incidental sales. - GFCF compiled by industries and fourteen types of assets; measured as expenditure on acquisition of fixed assets less disposal of existing fixed assets. - Commodity flow approach applied for crosschecking consistency of GFCF for construction, machinery and equipment. - Changes in inventories estimated by activity and by types of inventories. - No fixed ratios used in compilation of expenditure components. - Constant price methods: - Household final consumption expenditure at constant prices derived by deflating six groups of expenditures with respective CPI. - Final consumption expenditure of general government and NPISH deflated with implicit output indices of corresponding branches. - GFCF at constant prices obtained by deflation with price indices: implicit construction output deflator, domestic PPI, and respective agriculture price indices. - Value of inventories by type and by branch estimated at constant prices using specific monthly price indices. - Exports and imports of goods and services estimated as a residual; compilers do not use imports and exports price indices as they are considered not to measure pure price changes. - Recommendation: Compile volume measures of imports and exports independently; deflate homogeneous groups of imports by the UVI, and nonhomogeneous groups (machinery and equipment) by price indices of importing countries adjusted for exchange rate; use PPI export index to deflate exports. - Quarterly compilation specifics: - Benchmarking done using pro-rate method, resulting in a step problem. - Compilation system derives series from seasonally unadjusted source data, providing unadjusted quarterly estimates. - Seasonally adjusted quarterly constant price estimates compiled using X11 seasonal adjustment program. - Recommendation: Apply the Denton method (use BENCH software) to benchmark quarterly and annual data. ### 3.4 Assessment and validation of intermediate data and outputs - Main source data checked with other primary and secondary sources. - Establishment survey data cross-checked against tax data. - Household expenditure data checked against retail sales, imports data, and VAT data from tax authorities. - Implicit deflators of output compared with relevant price indices. - Volume indicators derived by deflating current national accounts estimates compared with available industrial production indices. - Systematic procedures exist to assess household consumption data. - Annually, supply-use framework used to make GDP estimates by activity and expenditure components consistent. ### 3.5 Revision studies - Direction and magnitude of revisions between versions are studied routinely during quarterly and annual compilation. - Revisions are well documented with detailed descriptions of adjustments. - Studies provide information on accuracy of early sources and may suggest areas for source improvement. ### 4 Serviceability — periodicity, timeliness, and consistency - Periodicity: - National accounts statistics disseminated with quarterly periodicity as prescribed under the Special Data Dissemination Standard (SDDS). - Timeliness: - Timeliness of national accounts compiled falls within SDDS requirements. - Internal consistency: - Annual national accounts are internally consistent; GDP by activity and expenditure components in current prices reconciled on the basis of supply and use framework. - Statistical discrepancy between estimates is shown explicitly and varies between 0.1 percent and 2.5 percent. - Since volume measures of net exports are compiled as a residual, constant price estimates are not reconciled. - Estimates at current prices, volume measures, and implicit deflators are consistent within the “value = volume × price” framework. - Quarterly GDP estimates add up to annual estimates; concepts, definition, and classification for quarterly GDP are the same as annual. - Time series: - Consistent time series available since 1990. - Recommendation: Make sure historical series are reconstructed back as far as possible for changes in methodology. - Cross-framework consistency: - National accounts statistics are consistent with general government statistics and balance of payments statistics. ### 4.3 Revision policy and practice — schedule and transparency - NSS publishes a schedule for dissemination of preliminary and revised national accounts estimates at the beginning of the calendar year as part of the Program for Statistics, in national accounts publications, and in SDDS metadata. - Revision schedule: - Annual data are revised two times: on September 30 year+1, and on September 30 year+2. - Quarterly data are revised after each subsequent quarter (until the fourth quarter), and then when new annual benchmarks are available. - Revised data: - Revisions cycle is predetermined and known by users. - Revised data published with accompanying short notes. - Users informed that initially published data are preliminary and subject to revision; preliminary and revised data are labeled in publications. - Revised data disseminated with the same level of detail as previously published. - Studies and analyses of revisions: - Main methodological revisions are well documented with explanations. - Magnitude of revisions measured and results made available to the public. - Analysis of preliminary versus revised data published to allow assessment of reliability of preliminary data. ### 5 Accessibility — data, metadata, and user assistance - Data presentation: - National accounts data published with charts and tables and figures to facilitate analysis. - Estimates disseminated at detailed level and as time series; analysis of current-period developments available. - Release of annual and quarterly GDP estimates supplemented with short comments and methodological notes. - Dissemination media and formats: - NSS web page reproduces data from quarterly statistical bulletin and annual publications; longer time series accessible electronically. - Electronic format of time series is in a print-out version only; chain-linked time series including 2007 are available only by request. - Recommendation: In the new NSS website, disseminate chain-linked time series with each quarterly data dissemination. - Release practices: - NSS publishes quarterly release calendar with precise release dates for all datasets. - In very rare cases when deadlines cannot be met, NSS informs users in advance. - National accounts data released simultaneously to all users. - More detailed national accounts tables available upon request from NSS. - Metadata accessibility: - Metadata (concepts, definitions, classifications, data sources, statistical techniques) published on website and in hardcopy; available in Armenian, Russian, and English. - National accounts chapters in Statistical Yearbook contain metadata. - Exhaustive national accounts metadata on sources and methods available in a special publication in Armenian and Russian. - SDDS detailed methodology regularly reviewed and updated. - Levels of methodological detail adapted to intended audience. - User assistance and outreach: - All statistical releases list contact information with telephone numbers or e-mail addresses; access points to clients well advertised. - Assistance to users monitored through periodic surveys. - NSS produces an annually updated catalog of publications with description, price, periodicity, expected month of release, publication format, and languages. - 2008 survey by the Center for Freedom of Information rated NSS as one of the most “open” agencies in Armenia; users (mostly mass media) rated NSS highly for ease of obtaining data. ### Key statistics and explicit figures from the document - NOE special study year: 2003. - Constant price base years: - Average prices of 1998 used until 2006. - Average prices of 2005 used from 2007. - Time series availability since 1990. - Statistical discrepancy between activity and expenditure estimates varies between 0.1 percent and 2.5 percent. - Revision schedule dates: - Annual revisions: September 30 year+1, and September 30 year+2. - Household final consumption constant-price deflation: six groups deflated with respective CPI. - GFCF compiled by industries and fourteen types of assets. - NSS openness survey year: 2008. *Source: _cr0950 - 3.2 Assessment of source data (National Accounts, sections 3.2–5.3 as provided in the source content).* ### 2. Methodological soundness 2.1 Concepts and definitions ### _cr0950 - 2. Methodological soundness 2.1 Concepts and definitions ### Methodological soundness — overview - Scope: Some nonresident financial sector units are included into the scope of national accounts. - Classification/sectorization: X - Basis for recording: General government data and some balance of payments data on a cash basis. - Source data: Some quarterly source data are collected on a cumulative rather than discrete basis. - Statistical techniques: Statistical techniques for owner occupied dwellings, consumption of fixed capital as well as volume measures of net exports deviate form international standards. - Assessment and validation of intermediate data and statistical outputs: X - Revision studies: X ### Accuracy and reliability - Source data issues: - Some quarterly source data are collected on a cumulative rather than discrete basis. - Assessment of source data: X - Statistical techniques deviations: - Owner occupied dwellings: technique deviates from international standards. - Consumption of fixed capital: technique deviates from international standards. - Volume measures of net exports: technique deviates from international standards. - Assessment and validation: X - Revision studies: X ### Serviceability - Periodicity and timeliness: X - Consistency: X - Revision policy and practice: X ### Accessibility - Data accessibility: - Chain-linked time series available only by request. - Metadata accessibility: X - Assistance to users: X --- ### Price Statistics (Consumer Price Index) — Prerequisites of quality ### 0.1 Legal and institutional environment - Legal framework: - Law On State Statistics of Armenia approved by the National Assembly of Armenia on April 4, 2000. - Law On the Population Census of Armenia adopted on October 12, 1999. - Law On Three-Year State Statistical Work Program for 2007–2009 adopted on November 29, 2006. - Key SCS resolutions and dates: - Resolution No. 110-N “On Approval of the Charter and Structure of the National Statistical Service of the Republic of Armenia” of July 26, 2002. - Resolution No. 20-N “On Approval of the Regulations of the State Council on Statistics ...” of November 24, 2006. - Resolution No. 60 “On Approval of the Procedure for the Publication of Statistical Information” of August 15, 2001. - Data sharing and coordination: - Regulated through the Law On State Statistics and Resolution No. 109 “On Approval of the Procedure for the Maintenance of Administrative (information) Registers and Receiving Information from Them” of May 10, 2002. - Confidentiality: - Regulated by Law On State Statistics and Resolution No. 53-N “On Approval of the Procedure for Ensuring the Confidentiality of Statistical Data” of June 25, 2001. - A Commission on Statistical Confidentiality Issues established within the NSS; all staff required to sign a sworn declaration on statistical confidentiality. - Statistical reporting mandate: - Regulated by Law On State Statistics and Resolution No. 11-N “On Approval of the Procedure for the Presentation of Statistical Data” of October 03, 2003. - Article 20 of the Law On State Statistics outlines obligations of units presenting statistical information. ### 0.2 Resources - NSS staffing (April 2008): - Headquarters civil servants (tenured): 155 - Regional civil servants (tenured): 179 - Total civil servants (tenured): 334 - Headquarters statisticians (fixed term): 33 - Regional statisticians (fixed term): 358 - Total statisticians (fixed term): 391 - SCS members & auxiliary personnel: 26 - Totals: Headquarters 214; Regional 537; Total 751 - Price Statistics and International Comparisons Division (PSICD): - Eight employees in PSICD. - Two of these staff plus the division head work on the consumer price index (CPI). - PSICD staff: seven have higher education. - Price collection: two or three price collectors in each region (10 regional statistical offices) and five price collectors for Yerevan. - Financing and remuneration: - NSS staff salaries financed from the Armenia state budget. - Compensation for civil servants based on the Law On Compensation of Civil Servants. - NSS salary level is not adequate and not competitive with the Central Bank of Armenia (CBA), other government entities, and private sector organizations with comparable jobs. - Regional price collectors are not adequately reimbursed for transportation arrangements. - Computing and facilities: - CPI has its own server and backups on CD-ROMs. - Each PSICD staff has a Pentium computer; CPI data produced using Excel spreadsheets. - Computing needs and technology are inadequate. - Training and capacity: - Staff have some opportunities for training, such as the IMF’s price training course and UNDP funded training at the United States Bureau of Labor Statistics. - Resources are deficient for International Comparison Program (ICP) and Purchasing Power Parities (PPP) demands. - Staff resources are inadequate to implement additional plans for producing Armenia’s Harmonized Indices of Consumer Prices (HICP). - Recommendation: - CPI staff computing resources, office space, and financing should be improved to adequately compile and disseminate the CPI statistics. ### 0.2.2 Measures to ensure efficient use of resources - Chief of NSS staff disposes of state property attached to the NSS and organizes preparation of the NSS draft budget. - Annual expenditure budget and rechecking authenticity of financial reports approved by the NSS President; annual balance and financial reports approved by the SCS. - Authenticity of annual financial reports could be audited in the order established by the Armenia government. ### 0.3 Relevance - User consultation and publication: - State statistical work programs (three-year and annual) posted at the NSS website and submitted to a selected sample of about 100 users for comments. - Annual Program development considers: - Availability of resources, burdens on respondents, cost-effectiveness, comparability with international standards, potential stable periodicity for long-term trends, and harmonization with annually allocated resources. ### 0.4 Other quality management - Quality focus: - Quality anchored on ensuring application of methodologies in compliance with international statistical standards. - NSS management reviews data for accuracy and has internal processes to identify issues at collection, compilation, and dissemination stages. - National Account Division functions as internal audit for data consistency and questionnaire/methodology design. - Timeliness vs quality: - No trade-offs between timeliness and quality of the CPI. - Internal twelve-month Advance Release Calendar (ARC) ensures deadlines are met. - Quality monitoring: - NSS reviews unusual movements in price data and traces back to reporters if necessary. - PSICD conducts annual meetings for price collectors to maintain quality and improve data production. - Quality assurance responsibilities: - Ensuring proper methodology of indicators—SCS and Statistical Work Methodology and Classifications Division. - Business statistics—Macroeconomic Indicators and National Accounts Division and Senior Adviser to the President of the NSS. - Macroeconomic indicators—Senior Adviser to the President of the NSS. - Publications and dissemination—Vice President and Statistical Publications and Marketing Division. - Data checking: - Data collected are arithmetically and logically checked. --- ### Assurances of integrity ### 1.1 Professionalism - Independence and principles: - NSS is independent from state and local self-government bodies in its activities (Law On State Statistics). - Article 5: official statistics governed by principles of objectivity, reliability, and integrity; should observe international methodological standards and internationally accepted practices on accessibility and dissemination. - Article 9: President of the NSS must be a citizen of Armenia with high economic education and work experience in statistics; cannot hold other positions except scientific, pedagogical and creative work; tenure shortened only by resignation, loss of citizenship, court-declared incapacity or conviction, or death. - Professional links and training: - Strong links between NSS and universities. - Staff participation in international training programs (IMF, UNDP/US BLS). - Choice of sources and techniques: - Choices made solely on professional statistical considerations and in light of international standards; reasons published through the annual statistical program. - Annual program includes lists of statistical activities, coverage, periodicity, surveys, publications, administrative registers, and users. - Right to comment on misuse: - NSS has the right (but not obligation) to provide clarifications on misuse and miscommenting of published statistical information. - Public Relations Unit monitors media daily. - CPI publications and news releases provide explanations of basis for compiling price indices and identify main factors underlying unusual movements. - Chairman of the NSS is allowed to respond to public criticism, though this practice is not encouraged. ### 1.2 Transparency - Availability of legal and procedural terms: - Law On State Statistics published in Official Bulletin No. 8 (106) of April 28, 2000, and on NSS website. - Law On the Population Census published in Official Bulletin No. 28 (94) of November 13, 1999. - Law On the Three-Year Program of Statistical Projects for 2007–2009 published in Official Bulletin No. 66 (521) of December 25, 2006; Armenian version posted on NSS website. - Publication of SCS regulatory acts: - Resolutions published in the Bulletin of Departmental Regulatory Acts with specific issue references and dates (see listed resolutions and publication details). - Armenian versions of resolutions posted on NSS website. - Government statistical reporting forms and instructions published in the Bulletin of Departmental Regulatory Acts; Armenian versions posted on the NSS website at http://docs.armstat.am/report/. - Internal governmental access prior to release: - No officials outside the NSS have access to the data prior to public release. - Identification of products: - All data releases are clearly identified as produced by the NSS; joint publications identify NSS data as NSS product. - NSS print publications identify NSS as the source. - Public Relations Division monitors external use for attribution; NSS and CBA Statistics Department cross-check published data for consistency and attribution. - Commentaries of government agencies and other users are not provided in published materials. - Advance notice of methodological changes: - Planned weight updates and methodology changes included in the Annual Program for the year they occur. - When changes are made, explanatory footnotes are provided in publications. - NSS notifies parties responsible for statistical reporting of methodological changes through new statistical reporting forms and/or instructions following SCS approval and publication. *Source: _cr0950 - 2. Methodological soundness 2.1 Concepts and definitions.* ### 1.3 Ethical standards ### 1.3 Ethical standards ### Guidelines for staff behavior - Guidelines are set by: - Law On Civil Service (Official Bulletin of the Republic of Armenia, No. 1 (176) of January 09, 2002). - Resolution of the Armenia Civil Service Board No. 13-N “On Approval of the Guidelines for the Civil Servants’ Ethics” of May 31, 2002 (Bulletin of Departmental Regulatory Acts of the Republic of Armenia, No. 18(104); of August 01, 2002). - Guidelines for behavior are general for the civil servants of all the civil service bodies and are well known to NSS staff. --- ### 2. Methodological soundness ### 2.1 Concepts and definitions - Overall structure in terms of concepts and definitions follows internationally accepted standards, guidelines, or good practices. - CPI based on the consumption concept; does not include illegal activities and imputed rentals. - Included in consumption concept: - Own-produced agriculture products. - Goods provided by employers as income-in-kind. - CPI classification: - Uses COICOP, conforming to 1993 SNA, ILO, and the Consumer Price Index Manual, 2004 (CPI Manual). - Rebase: - Current CPI rebased in 2006 (2005 =100) with average 2005 prices used for the price reference period. ### 2.2 Scope - NSS compiles a monthly CPI for Yerevan and 10 marzes (prices collected in two cities from one of the marzes). - Coverage: domestic and imported items across: - Three aggregated groups: food, nonfood goods and services. - Nine divisions, 64 groups, and 470 commodities (560 representatives). - All resident households included regardless of income; stratified by residence in cities, towns, and regions (marzes). - Weights cover expenditures of all resident households; adjusted to cover informal activity and consumption of nonmonetary goods (own-produced agriculture, income in kind). ### 2.3 Classification/sectorization - Uses 1993 SNA for institutional units and COICOP for household final consumption activities. - NSS classification and sectorization for CPI conform with internationally accepted systems. ### 2.4 Basis for recording - Market prices used to value flows and stocks; consumption defined as value at market prices including taxes and extra charges. - Actual transaction prices used; specifically: - Direct taxes and VAT are included in the price being recorded. - Sale prices included provided item remains available after sale period. - For list prices, shop owners are asked to confirm actual charges to consumers. - Product specifications consider size, color, brand, quality, etc. - Consumption expenditure valued at purchasers’ prices including trade and transportation margins and applicable taxes less subsidies on products. - Recording: - Prices recorded in the period they are purchased (accrual basis). - Grossing/netting: - CPI does not include net purchases in secondary markets (used cars, other durable consumption goods). - Note: Used durables generally small in aggregate household expenditures for resident-to-resident transactions but can be significant for net imports of existing durables. - Recommendation: NSS should review customs information on import of used goods to assess importance of excluding net purchases of existing durables in secondary markets. --- ### 3. Accuracy and reliability ### 3.1 Source data Findings on price collection - Outlets: judgmental list compiled by NSS; selected by population size, sales turnover, and quantity of services demanded. - Price data collection: - Mainly by personal visits to between nine to twelve outlets per region; submitted electronically to NSS central office. - Prices for some services (communications, electricity, gas) collected in the central office. - About 250,000 price quotes collected each month. - Four hundred and seventy items judgmentally selected based on HBS data. - New products introduced into CPI basket when CPI is rebased and results of a new HBS become available. - Very small outlets (kiosks) excluded; large and medium retail enterprises represented. - CPI price information (besides utilities) not derived from administrative sources that could supplement compilation. Findings on weights (ILCSH) - NSS conducts continuous Integrated Living Conditions Survey of Households (ILCSH) covering whole Armenia. - Current CPI based on 2004/2005 ILCSH results. - Armenia’s consumer expenditure comprises monetary expenditures; includes cost of food consumed from own farms and compensation in-kind. - 2004/2005 CPI weights: - Food: 53.91 percent - Nonfood: 16.18 percent - Services: 29.91 percent - ILCSH survey covers 6,816 households monthly, with a new sample each month. ### 3.1.2 Assessment of source data fit - ILCSH sampling frame derived from database of all household addresses divided into 32 strata (12 communities of Yerevan city; 20 remaining strata from other regions/marzes grouped by towns and villages). - Random two-step sample stratified at marz level: - First step: probability proportional to size to determine enumeration units; 2004 sample includes 43 towns and 216 villages. - Second step: 6,816 respondent households selected. - NSS adjusts for under-reporting of alcohol and tobacco consumption expenditure. - Expenditure on own-account production for own final consumption and informal market goods/services included in ILCSH. - CPI sources do not cover: - Owner-occupied housing as consumption of housing services (except partially via maintenance and repair expense) or as capital formation. - Second-hand goods. ### 3.1.3 Timeliness - Prices collected the 30th, 10th and 20th of a month. - Index disseminated on the last working day of the referenced month. - PSICD applies period-of-time approach to determine average price for whole month. ### 3.2 Assessment of source data - HBS adjusts for underreporting of alcohol and tobacco using turnover sales data from NSS Business Statistics Division. - Sampling errors for price collection unavailable due to judgmental outlet selection. - Nonresponse problems not common due to established relationships. - Price verification: - Regional offices analyze prices for atypical movements. - PSICD conducts programmed outlier detection; extreme values confirmed with respondents. ### 3.3 Statistical techniques Compilation and imputation - City/regional prices combined and aggregated into city, regional, and national indexes. - Missing and seasonal product prices estimated using targeted and overall means approach as described in CPI Manual. - For seasonal items: missing prices imputed first; at season start index determines price change. - New goods introduced only when CPI index is re-weighted. - Quality adjustments: both explicit and implicit methods used. Index formulas and weighting - Unbiased formula used for basic level price indexes. - Jevons index (geometric means) used at elementary aggregate level for regional items. - Aggregation uses short-term change from previous period from price reference period and chaining to previous period’s index. - Weights (October 2004 to March 2005) adjusted for price change to align with price reference period (average prices in 2005). - New weights compiled every year; scanned for significant changes; if significant, a weight update proposed; otherwise, CPI weights updated every five years. - New index linked to old index using a monthly overlap period to calculate linking factors. Parallel/underground markets and payment method - PSICD reports prices not collected from parallel markets or underground economies despite HBS-derived expenditure estimates; NSS should consider monitoring prices in parallel markets if those expenditures are significant. - No distinction in recorded price whether consumer pays by credit or cash; value represents economic cost at time of purchase. Owner-occupied housing approaches - Options for imputed rent: - Use national accounts imputed rentals estimate as weight (to align with household final consumption expenditure). - Price options: continue using maintenance and repair price index as partial user cost estimator, or use price index based on actual rentals. - Both maintenance and repair and actual rentals data need assessment before moving imputed rentals weight. - Maintenance and repair excludes real interest component of user cost; rental sample representativeness must be assessed. - Impact on overall index depends on pricing approach and relative sizes of COICOP 04.2 (imputed rent) and COICOP 04.3 (maintenance and repair) estimates. - Net acquisitions approach (CPI Manual Chapter 14) as alternative concept: - Equivalent to household residential capital formation from national accounts. - Weight: net acquisitions of houses by households by type and location plus value of major improvements. - 2005/06 HBS collected information usable as net acquisition weight; HBS also asked owners to provide a selling price for dwellings (not monthly frequency or transaction value). - A source of prices from current transactions in houses/apartments would be needed to supplement HBS for monthly pricing. Recommendation: The NSS should technically evaluate the rental equivalence and user cost approaches to covering housing services consumption of owner-occupiers and the net acquisitions approach to households’ capital formation expenditures for dwellings. This will require improving CPI sources for imputed rentals for owner-occupied housing, and/or for a house price index that could be used with a net acquisitions weight compiled from the HBS. ### 3.4 Assessment and validation of intermediate data and outputs - CPI data regularly compared with Producer Price Index (PPI), Import/Export Price Index (MPI/XPI), agriculture, and construction price series. - Unusual movements/outliers in item indices verified and traced back to reporting outlets if necessary. - Discrepancies from inconsistent imputation routinely assessed. - Control edits implemented via Excel conditional statements for assessment and validation. ### 3.5 Revision studies - Impact of weight updating, outlets and items selection studies disseminated in NSS annual work plan. - Impact used to define optimal weight revision cycle (one year versus two years) based on changing expenditure patterns. --- ### 4. Serviceability ### 4.1 Periodicity and timeliness - Periodicity follows SDDS requirements: CPI compiled monthly. - Timeliness follows SDDS requirements: CPI published on the last working day of the reference month; this is always met and exceeds SDDS requirements. ### 4.2 Consistency - Internal consistency: - CPI data are internally consistent and invariant by geography and item/expenditure class. - When methodological changes are introduced, historical series are not reconstructed for periods greater than three months. - Reconcilable time series: - Historical consistent time series data are estimated and published. - Reconcilable output indices set equal to 100 have been produced and disseminated every ten years since 1940. - CPI statistics are consistent in comparisons: - (a) compared to the base year, - (b) current month vs previous month, - (c) compared to December of the previous year, - (d) compared to corresponding month of previous year, - (e) cumulative basis (compared to corresponding period of previous year), - (f) chain indices according to different periods, - (g) average annual indices, - (h) quarterly indices. - Detailed methodological notes identify and explain adjustments for consistency; unusual changes explained in analytical text of publications and news releases. - Consistency with other frameworks: - CPI largely consistent with PPI, XMPI/IMPI, agriculture, construction price indices, and national accounts estimates. *Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2009/_cr0950.pdf* ### 4.3 Revision policy and practice ### 4.3 Revision policy and practice ### Revision schedule and governance - The Law On State Statistics, Article 11, State Statistical Work Program, Annual, serves as the revision policy for weight revision, long-term trends, studies of sources of errors, and the explanation of methodology. - Weight revisions occur at one to two year frequency. ### Identification of preliminary and revised data - The CPI data are final when first released and are not subject to revision. ### Studies, documentation, and dissemination of revisions - Documentation and findings on the Annual State Statistical Work Program are published, and are discussed with the NSS statistical council. - The Annual State Statistical Work Program is disseminated on the NSS website. *Source: _cr0950 - 4.3 Revision policy and practice* ### 1. Assurances of integrity ### 1. Assurances of integrity ### 1.1 Professionalism - 1.1.1 Statistics are produced on an impartial basis. - According to the Law On State Statistics, the NSS is independent from state and local self-government bodies of Armenia in its activities. - Article 5 of the Law On State Statistics states that Armenia’s official statistics is governed by the principles of objectivity, reliability, and integrity and that official statistics should observe international methodological standards as well as internationally accepted practices on accessibility and dissemination (publicity) of statistical data. - Article 9 states that the choice of the President of the NSS must be a citizen of Armenia having high economic education and work experience in the domain of statistics. - Article 9 further states that the President cannot be appointed simultaneously to any other position in the public or private sector or accept other paid work besides scientific, pedagogical and creative. The President’s tenure may be shortened only by (1) his (her) resignation, (2) discontinuing his (her) citizenship of Armenia, (3) being rendered incapable or of diminished capacity to perform his (her) duties by a court decision or conviction, or (4) his (her) death. The President of the Service nominates his (her) deputies for appointment by the SCS. - Professionalism is actively encouraged through strong links between the NSS and universities and staff participation in international statistical training programs at the IMF and the United Nations Development Program funded training program at the United States Bureau of Labor Statistics. - 1.1.2 Choices of sources and statistical techniques, as well as decisions about dissemination, are informed solely by statistical considerations. - The NSS makes choices about sources of data and statistical techniques based solely on professional statistical considerations and in the light of international standards. There is no evidence of outside interference. - Reasons behind the choice of sources and methodologies are made public through the annual statistical program. - Annual programs approved by the SCS include: - a list of statistical activities, terms of their implementation, the coverage, as well as types of observations, - periodicity of the presentation of statistical indicators, - a list of surveys that should be implemented by the NSS, published statistical handbooks, bulletins, and other publications and their periodicity, - a list of organizations, state bodies and local self-government and other administrative registers and a list of summary statistical information (data), provided by them, and - a list of users of statistics, the breakdown of information provided free of charge, and the structure of its presentation. - Decisions about the timing and format of the disseminated data are also based solely on statistical considerations. - 1.1.3 The appropriate statistical entity is entitled to comment on erroneous interpretation and misuse of statistics. - In accordance with the Law On State Statistics, the NSS is not obliged, but has the right to provide clarifications on the misuse and miscommenting of statistical information it publishes. - The NSS policy is to avoid misunderstandings by providing additional explanations of the data with releases. The Public Relations Unit of the NSS is responsible for daily monitoring of the media. - The PPI publications and news releases produced by the NSS provide explanations of the basis for compiling the price indices and identify the main factors underlying unusual figures and movements to improve user understanding and reduce the likelihood of misinterpretation. ### 1.2 Transparency - 1.2.1 The terms and conditions under which statistics are collected, processed, and disseminated are available to the public. - Users have full access to information about the conditions under which statistical data are collected, processed and disseminated as well as about release timetables, confidentiality of individual data and other specific points. - The Law On State Statistics of Armenia was published in the Official Bulletin of the Republic of Armenia, No. 8 (106) of April 28, 2000 and also on the NSS website at http://www.armstat.am/ARM/Law/HHPO-III-0.asp [in Armenian, Russian, and English]. - The Law On the Population Census of Armenia was published in the Official Bulletin of the Republic of Armenia, No. 28 (94) of November 13, 1999. - The Law On the Three-Year Program of Statistical Projects for 2007–2009 of Armenia was published in the Official Bulletin of the Republic of Armenia, No. 66 (521) of December 25, 2006. The Armenian version of the law is posted on the NSS website at http://www.armstat.am/arm/Law/07_09_pr/index.html. - The following regulatory legal acts of the SCS were published in the Bulletin of Departmental Regulatory Acts of the Republic of Armenia following their approval: - (a) Resolution No. 110-N of the SCS “On Approval of the Charter and Structure of the National Statistical Service of the Republic of Armenia” of July 26, 2002 was published in the Bulletin of Departmental Regulatory Acts of the Republic of Armenia, No. 21 (107) of September 2, 2002. - (b) Resolution No. 11-N of the SCS “On Approval of the Procedure for the Presentation of Statistical Data” of October 03, 2003 was published in the Bulletin of Departmental Regulatory Acts of the Republic of Armenia, No. 3 (151) of February 02, 2004. - (c) Resolution No. 53 of the SCS “On Approval of the Procedure for Ensuring the Confidentiality of Statistical Data” of June 25, 2001 was published in the Bulletin of Departmental Regulatory Acts of the Republic of Armenia, No. 15 (78) of September 4, 2001. - (d) Resolution No. 60 of the SCS “On Approval of the Procedure for the Publication of Statistical Information” of August 15, 2001 was published in the Bulletin of Departmental Regulatory Acts of the Republic of Armenia, No. 3 (89) of February 11, 2002. - (e) Resolution No. 20 of the SCS “On Approval of the Regulations of the State Council on Statistics and on Repealing the Resolution No. 10 of the State Council on Statistics of the Republic of Armenia of August 15, 2000” of November 24, 2006 was published in the Bulletin of Departmental Regulatory Acts of the Republic of Armenia, No. 30 (239) of December 15, 2006. - (f) Resolution No. 109 of the SCS “On Approval of the Procedure for the Creation and Maintenance of Administrative Registers” of May 10, 2002 was published in the Bulletin of Departmental Regulatory Acts of the Republic of Armenia, No. 17 (103) of July 15, 2002. - Armenian versions of all the aforementioned resolutions are also posted on the NSS website at http://www.armstat.am/arm/Law. - Following approval by the SCS, all government statistical reporting forms and instructions for filling them out are published in the Bulletin of Departmental Regulatory Acts of the Republic of Armenia. - Armenian versions of the reporting forms and instructions for filling them out are also posted on the NSS website at http://docs.armstat.am/report/. - 1.2.2 Internal governmental access to statistics prior to their release is publicly identified. - No officials outside the NSS have access to the data prior to their release to the public. - 1.2.3 Products of statistical agencies/units are clearly identified as such. - All data releases are clearly identified as being produced by the NSS. In joint publications, the NSS data are identified as being a product of the statistical office. - NSS print publications all identify NSS as the source. The NSS Public Relations Division also scans other websites using NSS data to check attribution. - The NSS and the CBA Statistics Department regularly cross check published data for consistency and attribution. - Commentaries of government agencies or other interested users regarding data are not provided in published materials. - 1.2.4 Advance notice is given of major changes in methodology, source data, and statistical techniques. - Planned weight updates and changes in methodology are included in the Annual Program issued for the year in which they are to take place. When changes are made in methodology, explanatory footnotes are provided in publications. - Following established legislative procedures (the Laws on State Statistics and on Legal Acts, Resolution No. 11-N of the SCS “On Approval of the Procedure for the Presentation of Statistical Data,” etc.), the NSS notifies parties responsible for the presentation of statistical information of changes in methodology through provision of new statistical reporting forms and/or instructions for filling them out (following their approval by the SCS and publication in the Bulletin of Departmental Regulatory Acts of the Republic of Armenia). ### 1.3 Ethical standards - 1.3.1 Guidelines for staff behavior are in place and are well known to the staff. - Guidelines for NSS staff behavior are set by the Law On Civil Service (published in the Official Bulletin of the Republic of Armenia, No. 1 (176) of January 09, 2002) and Resolution of Armenia Civil Service Board No. 13-N, “On Approval of the Guidelines for the Civil Servants’ Ethics” of May 31, 2002 (published in the Bulletin of Departmental Regulatory Acts of the Republic of Armenia, No. 18(104); of August 01, 2002). - Guidelines for behavior are general for the civil servants of all the civil service bodies. ### 2. Methodological soundness #### 2.1 Concepts and definitions - 2.1.1 The overall structure in terms of concepts and definitions follows internationally accepted standards, guidelines, or good practices. - The NSS’s compilation of PPI statistics, key concepts and definitions are in accordance with the guidelines of the System of National Accounts 1993 (1993 SNA) and broadly follow internationally accepted good practices. - Output estimates are compiled at sufficient level of industrial and product detail. #### 2.2 Scope - 2.2.1 The scope is broadly consistent with internationally accepted standards, guidelines, or good practices. - The principal Armenian PPI for the output of resident establishments is the PPI for industrial products. - The PPI index covers the following branches of industry: - Electric power - Ferrous metallurgy - Nonferrous metallurgy - Chemical, petrochemical, and biotechnology industry - Mechanical engineering - Precious and semiprecious metals industry - Timber, woodworking, cellulose, and paper industry - Construction materials industry - Light industry - Food industry (including the meal and concentrates industry) - Publishing output - Separate output indices are produced for freight tariffs and for the agricultural and construction industries on a monthly basis. - Between December 2006 and January 2007, a new survey was selected for both the industrial and agriculture price indices. Scope determination: - 1. For industrial organizations with five percent or more of the revenue share were selected from the fifth level (each subsection) of NACE (the General Classification of Types of Economic Activities) for all Armenian industries. Four hundred and seventy-six out of 2,231 industrial organizations were selected for the pilot survey. - 2. The Industry Statistics Division of the NSS suggested 70 additional industries, and another 70 organizations from the previous sample remained in the survey. These organizations or establishments are considered important and representative for price observation. - The survey covers large, medium-sized, small, and micro-sized establishments, ensuring representativeness by branch of industry and establishment size. - Resulting sample: - Sample size: 616 industrial organizations based on the volume of produced production for January–October of 2006. - Coverage: more than 86 percent of total volume of Armenia’s industrial production. - Coverage of NACE classes: One hundred and sixty-five (92.7 percent) out of 178 classes of NACE were covered by the sample. - Distribution of Establishments Covered by the Survey, by Marzes (Table 3: Report: Sample Survey on Price Statistics. Yerevan, January 2007) - Yerevan city: 391 organizations; As % of total: 63.5 - Aragatsotn: 10 organizations; As % of total: 1.6 - Ararat: 42 organizations; As % of total: 6.8 - Armavir: 14 organizations; As % of total: 2.3 - Gegharkunik: 11 organizations; As % of total: 1.8 - Lori: 27 organizations; As % of total: 4.4 - Kotayk: 65 organizations; As % of total: 10.5 - Shirak: 22 organizations; As % of total: 3.6 - Syunik: 15 organizations; As % of total: 2.4 - Vayots Dzor: 9 organizations; As % of total: 1.5 - Tavush: 10 organizations; As % of total: 1.6 - Total: 616 organizations; As % of total: 100.0 - According to Table 3, Yerevan city comprised 63.5 percent of the sample (391 establishments). - For sale and procurement of agricultural price indices, the survey included 200 rural communites selected from the 10 marzes with five to 20 housheholds from each community selected. - Freight tariff price index includes road, railway, air, and pipeline industries. - Construction price index includes components of construction (construction and assembly work, capital investment in machinery and equipment, and other operations and costs). - There is also a price index of construction and assembly work based on registered values on material, parts and other construction components, and wages of employee. #### 2.3 Classification/sectorization - 2.3.1 Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices. - The All-Union Classification of Branches of the National Economy (OKOHX) is used to classify Armenia’s current PPI. - The NSS is in advanced stages of re-classifying the PPI based on the European NACE and CPA-derived (the Classification of Products by Activity) activity and product classifications. - The 1993 SNA is followed to classify institutional units and product transactions, and principles of classification and sectorization used in the compilation of the PPI are in conformity with internationally accepted systems. - OKOHX is based on product and raw materials and classifies according to industries or branches and sub-branches; OKOHX classifies most of mining and quarrying as manufacturing activities, while the CPA separates manufacturing for mining activities. - Recommendation: The PPI should be classified and disseminated according to an internationally accepted standard. #### 2.4 Basis for recording - 2.4.1 Market prices are used to value flows and stocks. - The output PPI uses weights valued at basic prices, excluding invoiced VAT, excise taxes, supply-and-sales trade margins, and transportation costs. - 2.4.2 Recording is done on an accrual basis. - All output of finished goods is recorded in the period in which they are produced. - 2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices. - There are no stage-of-processing indices compiled for which net product weights need to be determined to aggregate the product PPIs to higher levels. - The PPI measures the price of output and weights product prices in proportion to their output value at basic prices. ### 3. Accuracy and reliability - (Section heading present; substantive content not included in the provided excerpt.) *Source: _cr0950 - 1. Assurances of integrity* ### 3.1 Source data ### 3.1 Source data ### Source data and collection (industrial, agricultural, freight, construction) - Industrial Output Index - Data provider: Armenia’s Ministry of Justice (MOJ); Business Register Division of the NSS obtains the sample frame from the MOJ. - Prices monitored for 888 categories of representative products for 254 industrial establishments. - Weights for aggregating the PPI are data on total volume of industrial production based in 2002. - Samples of establishments and products were selected on a judgmental basis (random sampling is not used). - Data flow: completed price survey forms obtained in district offices → marzes (entered) → electronically to the NSS for verification, compilation, aggregation, and dissemination. - New CPA-based PPI pilot survey (December 2006 and January 2007) covered peasant farms and industrial organizations under the “Improvement of Price Statistics” project: - Based on pilot sample results, over 2,266 products will be priced. - Sampling technique: two stage random sampling: - Stage 1: establishments with output greater than five percent of total production output selected; establishments had to be in business for at least 12 months and consistently produce the selected output for eight months. - Stage 2: establishments with rapid changes in price were eliminated; sampling errors and coefficients of variations were determined. - From the sample of 2,266 products, 1,627 will be priced on a monthly basis; the remainder will serve as reserve prices for substitution. - Sale and Input Price Indices of Agricultural Production - Compiled and disseminated by the NSS. - Sale price index covers 61 agricultural products sold by 7,638 peasant farms that breed cattle and engage in cultivation. - Input agriculture price index covers 92 products used by the same 7,638 peasant farms. - December 2006 to January 2007 agriculture survey: - Covered all regions or marzes. - Villages randomly selected from each marz, taking into account percent of the rural population. - Peasant farms selected based on number of privatized plots. - Survey covered 200 rural communities, selected from 10 marzes. - Each community had between five to 20 housholds with 1,901 peasant farms in the survey. - Survey conducted by visits to peasant farms and completion of questionnaires by interviewers. - Two questionnaires used: - “On the Average Prices and Sales Volume of Agricultural Products (by Sale Directions),” - “On Purchase Prices of Means of Agricultural Production.” - Pilot survey will augment the current agriculture PPI; results will be disseminated once re-classification to CPA is finalized. - Freight Tariff Index - Compiled and disseminated by the NSS. - Tariff indexes calculated for road, railway, air, and pipeline. - Structural changes in transported cargo (type, size, speed) are not taken into consideration. - Tariffs determined based on delivery per unit (tons, cubic meters, etc) of the most often transported goods for an actual distance (defined route). - Weights based on revenues of transport establishments services for the previous year. - There are only 29 freight establishments in Armenia, and all are included in the index. - Construction Price Index and Price Index of Construction Assembly Work - Produced by the Ministry of Urban Development (MUD); disseminated monthly by the NSS. - MUD determined the survey and weights in 1984. - Monthly process: preliminary results sent to NSS by the tenth of the following month; final results estimated by the sixteenth to the eighteenth and sent to NSS for dissemination and chain-linking. - In 2006, the NSS conducted surveys of 111 construction companies, 112 trade companies selling building materials, and a survey of 29 freight transport companies to determine structural changes and recommend methodologies; results not yet implemented by MUD due to logistical reasons. ### Scope, definitions, valuation, and recording - For all PPI output indices the weighted average actual price on the product fixed over the month is registered and monitored (excluding VAT, excise tax, and other taxes on product). - Price collection forms request product prices and production volumes; two forms sent to establishments: - Monthly price collection form: collects monthly price data to calculate the PPI. - Annual price collection form: asks establishments to provide output weight components: - Market goods production for sale, comprising sales and changes in output inventories; - Own-account production of market goods for own final consumption; - Output of market goods for own-account fixed capital formation; - Production of services for own account fixed capital formation. - Output data exclude illegal market goods and production of real estate leasing services produced by household owner-occupants of residential housing for own final consumption. - Assessment: - Source data for industrial output index and agricultural price indices are broadly consistent with PPI definitions and scope and will align with CPA classifications in the near future. - Source data for construction price indices are inconsistent with PPI definitions, scope, and classification; source data were determined in 1984 (more than five years older than recommended international best practices). ### Timeliness of source data - All output price indices are produced and disseminated on a monthly basis. - Data submission timeline for industrial, agricultural, and freight tariff indices: - Establishments and farms submit data to district offices by the fifth; - Then to the marz agencies by the tenth; - All PPI data received by the NSS central office by the fifteenth of the month. - Monthly construction data produced by MUD are sent to the NSS for chain-linking and time-series determination. --- ### Assessment of source data and quality control - Routine assessment and monitoring - Information concerning errors for the PPI sample is monitored monthly. - Checks performed on weights, price relatives, misclassifications, and outliers. - PSCID staff compare current PPI results with results from the new CPA-based sample. - Nonresponse problems uncommon due to obligatory survey response; misclassification errors usually corrected. - Unusually large movements in prices are traced to the enterprise and verified; post-enumeration checks are made and index revised back one month when warranted. - Pilot testing of survey questionnaire effects is performed. - Survey testing and objectives - Questionnaires for construction, trade in building materials, and freight transport companies were piloted and approved by the SCS; tested for methodological robustness and approved by EU experts, MUD, and reporting companies. - Survey aims (per NSS): - Improve coverage of indicators at the regional level, - Introduce specifications that are internationally consistent, - Improve methodology for computing the price indices for the mentioned industries, - Determine scientific random sampling techniques. - Comments and recommendations solicited from establishments to design better establishment surveys. - Data sources - No data from administrative and other secondary sources are used for certain surveys. --- ### Statistical techniques (compilation, imputation, indices) - Compilation and aggregation - PPI collected at regional level, verified, aggregated, and disseminated by NSS central office. - Aggregation sequence (CPA classification): elementary aggregates weighted and calculated for each product group by geometric means of price relatives → sub-industry → industries → Armenia as a whole using a Laspeyres index approach. - Aggregation sequence (OKOHX classification): weighted and aggregated first by products, establishments, sub-branches, then by industry. - CPA classification aids in minimizing processing errors (coding, editing, tabulation). - Outlier handling and adjustments - Adjustments to unit records made only when clearly warranted and identifiable. - Outliers verified in central datasets; regional offices and/or establishments contacted if adjustments needed. - Imputation and nonresponse - Procedures for imputation and adjustment for nonresponse are soundly based. - A list of 619 products is available for product substitution purposes; derived when PPI sample was drawn. - Prices for temporarily missing products imputed based on change in price of similar products using cluster or cell means approach. - Missing prices for seasonal products imputed at the sub-industry level. - Agriculture PPIs use the Paasche index to account for seasonal products (current period quantity data determined monthly); if no data available for quantity and price of seasonal product, product is dropped from the index. - Products permanently unavailable are replaced in the sample. - Quality adjustments conducted using both implicit and explicit quality adjustment methods. - New products are not introduced into the sample until indices are reweighted and rebased. - Index formulas and weights reference periods - Elementary level: geometric means of price relatives (Jevons index) used at the elementary aggregate level for items at each region. - Aggregation: short-term Laspeyres formula used to aggregate indices; chaining to previous period’s index. - When new weights introduced, new index linked to old index with a monthly (December) overlap period to calculate linking factors. - Agriculture price indices use the Paasche formula to aggregate elementary indices to higher levels. - Current weight reference period and price reference periods: - Industrial output weight and price reference period: 2002 - Freight tariff output weight and price reference period: 2007–(the previous year) - Construction weight and price reference period: 1984 - Agriculture weight and price reference period: in the current month - Note: Construction price indices are the only PPIs whose weight and price reference periods have not been updated within the past seven years. Meetings between MUD and NSS resulted in adjustment of the wages component of the construction price index. - Linking technique follows Producer Price Index Manual, 2004; December considered the overlap month. --- ### Assessment, validation, and discrepancy handling - Validation against other information - PPI is checked against relevant components of the national accounts and the EX/IM price indices. - Investigation of discrepancies - Unusual movements arising from large movements in particular industries or establishments are investigated and explained in descriptive documentations that are publicly available, with attention to disclosure and confidentiality. - Discrepancies from inconsistent imputation for missing data and seasonal goods are routinely assessed. - Ranges of control edits supported by Access and Excel macros used to assess and validate data. --- ### Revision studies and documentation - Routine revision analyses - NSS publishes a reference or information bulletin that mentions changes, including press conferences, meetings with SCS, staff reports, methodological and reporting formats, international meetings, missions, new publications, staff travel, and changes in macroeconomic indicators. - Once per year, weights are routinely analyzed to determine effects of substitution bias in the index even though PPI industrial output and freight tariff indices are not re-weighted until four years after. - Adequate documentation on revision studies maintained, including methods to incorporate new data sources and adjustment procedures. - All proposals for weight revisions must be approved by the SCS. --- ### 4. Serviceability ### Periodicity and timeliness - Periodicity - PPI data compiled monthly; periodicity follows the IMF SDDS data dissemination standards. - Timeliness - Data submission timeline reiterated: - Data to district offices by the fifth; - Marz agencies by the tenth; - NSS central office by the fifteenth of the month. - Preliminary data are published on the 20th day following the reference month. - Final data are published one month after the end of the reference period; this exceeds SDDS requirements. ### Consistency - Internal consistency - PPI series published for industry (OKOHX) and for product (CPA) classifications; CPA-classified PPIs are not yet disseminated. Both series carefully checked for consistency. - Temporal consistency - Consistent time series available since 2002 when Armenia subscribed to the SDDS. - When changes in source data, methodology, and statistical techniques are introduced, historical series are reconstructed for a 12-month period. - Monthly and annual publications provide PPI (percentages) for: - (a) current month compared to the previous month, - (b) compared to the corresponding month of the previous year, - (c) compared to December of the previous year, - (d) on a cumulative basis (compared to the corresponding period of the previous year), - (e) compared to the base year. - Detailed methodological notes available explaining adjustments and unusual economic trend changes in analytical text. - Consistency with other frameworks - PPI data are largely consistent with the agriculture, national accounts, XMPI and CPI statistics. *Source: 3.1 Source data — Price Statistics (Producer Price Index)* ### 4.3 Revision policy and practice ### 4.3 Revision policy and practice ### Revision policy - The Law On State Statistics, Article 11, State Statistical Work Program, Annual, serves as the revision policy for: - weight revision, - long-term trends, - studies of sources of errors, - explanation of methodology. ### Identification of preliminary and revised data - Both preliminary and revised PPI data are clearly identified. ### Studies and dissemination of revisions - Documentation and findings on the PPI mentioned in the Annual State Statistical Work Program are published and discussed with the NSS statistical council. - The Annual State Statistical Work Program is disseminated on the NSS website. --- ### 5 Accessibility ### 5.1 Data accessibility — presentation and dissemination - The NSS publishes well designed charts and tables that facilitate analysis. - PPI data accessibility and disaggregation: - Annual long term PPI data have been disseminated for data beginning 2002. - Monthly data are available on request and are periodically in the bulletin. - Monthly PPI data are disseminated in ways that facilitate re-dissemination in the media and are published in the NSS monthly publication. - Release calendars and scheduling: - Release calendars for statistical publications (data) appear in the Annual Programs of Statistical Projects approved by the SCS of Armenia. - The Annual Program is approved within one month after the approval of the state budget by the National Assembly of Armenia. - The Program of Statistical Projects for 2006 was approved by Resolution 37-N of the SCS, dated December 23, 2005. - The Armenian version of the Program of Statistical Projects for 2005 is posted on the NSS website: http://www.armstat.am/arm/Law/SR_06/index.html - An advance release calendar that gives one quarter advance notice of the precise release dates is also disseminated on the Internet on the IMF’s Data Dissemination Bulletin Board (DSBB) (http://dsbb.imf.org). - Simultaneous public release: - All data are released simultaneously to the public through press releases, publications (Current Data for Main Macroeconomic Indicators Describing Armenia’s Socioeconomic Situation, and the Socioeconomic Situation of Republic of Armenia). - Copies of all publications are placed in the library of the NSS, which is open to the public, and in the national public library of Armenia at the same time they are sent to recipients established under the Annual Program of Statistical Projects. - Non-routine data on request: - Detailed customized tabulation (detailed breakdowns) of price indices data is available upon request, in addition to the tables routinely disseminated. - Customized tabulation that satisfy the NSS’s disclosure requirements are available free of charge. - Data users are aware of the availability of additional statistics and of the procedures for obtaining them. ### 5.2 Metadata accessibility - Documentation availability: - Brief methodological commentary on indicators is published in the Socioeconomic Position of Armenia monthly informational reports, in the Statistical Yearbooks of Armenia, and in greater detail in topical publications. - Statistical reporting forms and instructions, following SCS approval, are published in the Bulletin of Departmental Regulatory Acts of the Republic of Armenia and become legally binding. - Level of detail: - Detailed PPI data, industry output, freight tariffs, agriculture, and construction, are produced and disseminated to the intended audience. ### 5.3 Assistance to users - Contact points and service: - Prompt and knowledgeable service and support are available to PPI users. - All statistical publications provide contact information such as telephone and facsimile numbers and e-mail addresses. - Access points for clients to obtain statistical information are well advertised. - Assistance to users is monitored and reviewed frequently. - Catalogs of publications: - According to the Annual Statistical Work Program, every year the NSS publishes and disseminates the Catalogue of Statistical Publications. - The catalogue contains detailed and clearly structured information on NSS hard-copy publications, including title, short summary, periodicity, and publication deadline. - The electronic version of the catalogue is available on the NSS website at http://www.armstat.am/Eng/Publications/. *Source: _cr0950 - 4.3 Revision policy and practice* ### 1.3 Ethical standards ### 1.3 Ethical standards ### Ethical guidelines and coverage - Guidelines for MFE staff behavior: - Set by Armenia’s Law on Civil Service (Official Bulletin of the Republic of Armenia, No. 1 (176) of January 09, 2002) and Resolution of Armenia Civil Service Board No. 13-N “On Approval of the Guidelines for the Civil Servants’ Ethics” of May 31, 2002 (Bulletin of Departmental Regulatory Acts of the Republic of Armenia, No. 18(104) of August 1, 2002). - Scope: - Guidelines cover all civil servants employed in all civil service bodies. --- ### 2. Methodological soundness ### 2.1 Concepts and definitions - Compliance with international frameworks: - Starting in January 2008, concepts and definition of the government sector applied in the GFS are consistent with the System of National Accounts 1993 (1993 SNA) and with the IMF’s GFSM 2001. - Local government statistics: - Compiled according to A Manual on Government Finance Statistics, 1986 (GFSM 1986). - MFE plans: implement GFSM 2001 concepts and classification for local government in 2009 (on a cash basis) and in accrual recording for all units of general government in 2010. - Until 2009, GFSM 1986 local government data will be reclassified to the GFSM 2001 framework to produce consolidated general government data. ### 2.2 Scope - Institutional coverage of general government: - Comprises all central government units (including the State Social Security Fund, NCOs, extra-budgetary funds) and the local governments. - The 10 regions (marz) have no budgetary autonomy and thus are included in the central government. - Extrabudgetary funds are reported in central government operations; central government data are consolidated with local governments to produce consolidated general government. - Local governments include government units with authority over municipalities with some budgetary autonomy. - Dissemination practice divergence: - In MFE or NSS publications, consolidated general government units exclude NCOs (per Budget System Law of 1997, the annual Budget Law, and NCO Law) — identified as a major departure from GFS principles. - At time of ROSC, amendment to the NCO Law under consideration would treat NCOs receiving 50 percent or more of funds from the state budget as public entities to be included in consolidated central government. - Recommendation: - NCOs should be included in the consolidated general government statistics published on the national websites. - Public Sector Debt definition: - Law On Public Debt: public debt = central government debt plus CBA external debt. - Data cover all recognized government liabilities on which debt service payments (interest and amortization) are made by the government budget, and all government-guaranteed debt. - Within general government, only the MFE (Treasury) has exercised borrowing authority; thus general government debt = central government debt. - According to GFS sectorization principles, Armenian public sector debt would be central government debt plus public financial corporation debt. ### 2.3 Classification/sectorization - Central government operations: - Starting in 2008, classification system consistent with GFSM 2001. - Statistical framework items compiled and disseminated include: - Revenue: Tax Revenue; Other Revenues; Social Insurance Receipts; Official Transfers (Grants) Received. - Expenses: Compensation of employees; Social contributions of government as employer; Subsides; Other expenses. - Balances and transactions: Gross operating balance; Net acquisition of nonfinancial assets; Expenditures connected to nonfinancial assets; Sales of nonfinancial assets; Net lending or borrowing; Net acquisition of financial assets (Domestic, External); Net incurrence of liabilities. - Detailed central government revenue breakdowns: (1) tax revenue by tax types, fees, and other mandatory charges; (2) other revenue by types including fines and sanctions; (3) Social Insurance Payments; (4) official transfers (grants) classified by cash and in kind and by sources. - Detailed central government expense breakdowns: (1) current expenses by economic type including interest (broken down by domestic and foreign) and by function; (2) Expenses connected to nonfinancial assets by function; (3) Sales of nonfinancial assets by function. - Financing classification: - Classified as domestic and external; domestic credit broken down by creditor type (banking and nonbanking system) and by debt instrument. Proceeds from privatization classified as nonbank domestic financing (do not affect gross operating balance but increase net lending or borrowing). - General government operations: - Local government classification consistent with GFSM 1986, so classification is not uniform across general government units. - To compile consolidated general government statistics in 2008, authorities will bridge 1986 local government data into GFSM 2001 classification. - MFE plans: implement GFSM 2001 classification for local government in 2009 (cash basis) and accrual recording for all units in 2010. - Recommendation: - Follow through on plan to implement GFSM classifications for recording local government transactions by 2009 to extend GFSM 2001 classifications to the general government by 2010. ### 2.4 Basis for recording - Valuation: - Market prices used to value flows and stocks. All transactions valued at current prices on date recorded. Foreign currency transactions converted using exchange rate prevailing at recording in the UTA. Debt recorded at face value. Grants-in-kind valued when monetized. - Recording basis: - All government operations are recorded on a cash basis through the UTA. Expenses recorded when the UTA is debited; revenues recorded when the UTA is credited. No adjustments to cash-based statistics to approximate accrual recording. - Grossing/netting: - Data recorded on a gross basis. Revenue and expense refunds treated as corrective transactions and netted out from respective categories as appropriate. Taxes paid by government units included in expenditure data of that unit and classified as revenue by type of taxes paid. - Recommendation: - Follow through the plan to implement accrual recording of central and local government transactions by 2010. --- ### 3. Accuracy and reliability ### 3.1 Source data - Primary sources: - Budget management system accounting records maintained by the Treasury (Integrated Electronic Treasury System) for government finance statistics. - Local government data compiled by local Treasuries. - Data on domestic bank financing provided by the CBA. - Data on investment projects (PIU) completed out of external government loans provided to the MFE quarterly by implementing agencies. - Central government debt sources: - Flows: Integrated Electronic Treasury System. - Stocks: Debt Management Department of the MFE. - CBA provides data on CBA’s external debt that is part of public sector debt. - Source data alignment: - From 2008, central government source data follow GFSM 2001 definitions and classification. Local government source data use GFSM 1986. Starting 2009, all general government data will be under GFSM 2001. - Timeliness: - Cash Flow Management Division has timely access to Integrated Electronic System (including local Treasuries), Public Debt Management Department (domestic and external), and CBA data to satisfy SDDS and Budgetary System Law dissemination requirements. ### 3.2 Assessment of source data - Coverage and assessment: - Statistics compiled from complete administrative records (Integrated Electronic System) including flows and stocks of public debt. Estimation and surveys are not used. ### 3.3 Statistical techniques - Compilation methods: - Data compiled on the Treasury Integrated Electronic System, programmed to process data per Budget Law methodology. No adjustments made to cash data. - Quarterly central government data adjusted to reflect spending financed by PIU accounts not captured in preliminary quarterly data due to reporting delays; quarterly data on external disbursements connected to PIUs are adjusted accordingly. - Local government operations data available with sufficient detail and timeliness; appropriate consolidation principles followed to produce general government data. - Other procedures: - Cash data on government operations are not adjusted. - Fiscal year equals the calendar year. ### 3.4 Validation and discrepancy handling - Validation: - Domestic bank financing data provided by the central bank are cross-checked against Treasury account data. - Discrepancy assessment: - Administrative records subject to routine internal cross-checks and adjusted with information from PIU and CBA. - Statistical discrepancies between deficit/surplus and financing, and between financing and changes in gross debt, are investigated if they exist. Financing data compared with central bank general government financing data. MFE provides general government data to NSS for National Accounts. ### 3.5 Revision studies - Practice: - No routine revision studies and analyses of revisions are conducted. Data are analyzed and revised in the process of data compilation and reporting. --- ### 4. Serviceability ### 4.1 Periodicity and timeliness - Periodicity: - General government data are quarterly, exceeding SDDS requirement of annual periodicity; however, quarterly data include only partial coverage of NCO transactions. Complete coverage of NCOs produced annually for GFSY. - Central government data are monthly, meeting SDDS periodicity requirements. - Central government debt data are quarterly, meeting SDDS requirements. - Timeliness: - General government data disseminated within two months after the end of the reference period, exceeding SDDS requirement of six month timeliness. - Central government data disseminated according to SDDS requirement of one month timeliness. - Central government debt data disseminated two months after the reference period, or on the first day of the third month after the reference period, exceeding SDDS requirement of one quarter timeliness. ### 4.2 Consistency - Internal consistency: - General government data are consistent internally; quarterly data link to annual data through budget data processing procedures. - Potential inconsistency: if NCO reform legislation is approved, time series may not be consistent over time due to inclusion of NCOs in central government sector beginning with 2008. Data submitted to IMF for GFSY include NCOs as part of consolidated central government and time series should be consistent in that publication. - Public sector debt reporting (monthly report publishes quarterly data): 1. Quarterly data for public sector debt and breakdown by domestic, external, and guaranteed debt. 2. Breakdown of domestic debt by debt holder (banks and nonbanks), by instrument (treasury bills, treasury notes and bonds) and by maturity. 3. Breakdown of external debt by creditor (multilateral and bilateral), and by original maturity (short term, and medium and long term). Data also include outstanding stocks, gross disbursements, and principal payments. - Reconciliation: - Reconciliation between flows and stocks of external government debt (accounting for exchange rate movements) is done every quarter. - For domestic government debt, reconciliation of flows and stocks occurs every day through the Integrated Electronic System. - Cross-source consistency: - Domestic bank financing data in GFS from the central bank are consistent with Treasury accounts. - MFE public debt data differ from, but are reconcilable with, CBA data; SDDS metadata explain differences as arising from face and market valuation in MFE and CBA sources, respectively. ### 4.3 Revision policy and practice - Revisions schedule: - Monthly and quarterly data are preliminary when first released and are revised in the following month or quarter. - Identification of revisions: - Preliminary and revised data are clearly identified. Notes to the tables contain information on data revisions and major methodological changes. - Revision studies: - No routine revision studies and analyses of revisions are conducted. Data are analyzed and revised in the process of compilation and reporting. --- ### 5. Accessibility ### 5.1 Data accessibility and presentation - Presentation: - Data disseminated in millions of drams on general government operations covering all central government units (except NCOs) and local government units. - General government operations data compiled quarterly, with annual data compiled on a cumulative basis; presented on a consolidated basis. - Data disseminated on: revenue; outlays (with interest payments separately identified); the general government balance (deficit/surplus); and financing, broken down by type of debt instrument and by type of creditor. - GFSM 2001-classified data consolidating NCOs with general government are provided to and published by the IMF, but not disseminated in MFE publications. - Recommendation: - Disseminate GFSM 2001-classified general government data on the MFE website (for example, published at annual frequency in the IMF Government Finance Statistics Yearbook); quarterly data on the same basis should also be disseminated on the MFE website and reported to the IMF for publication in International Financial Statistics. - Dissemination media and format: - Budget execution data from 2008 are published in the monthly Statistical Bulletin and the MFE website. *Source: _cr0950 - 1.3 Ethical standards* ### 1. Revenue ### 1. Revenue ### Government finance statistics — dissemination, metadata, and user assistance - Advance Release Calendar: - "Advance Release Calendar (for one year) is included in the Annual Statistical Work Programs, approved by the State Council on Statistics." - The annual program "is a legal departmental act, which is, after approval by the Council, registered in the Ministry of Justice and published in the Official Bulletin on Legal Acts." - Simultaneous release: - "Statistics are made available to all users at the same time." - Consolidated central (including the NCOs) and general government data are published in the IMF GFSY but not on the official websites, as according to the NCO Law. - Access on request: - "Statistics not routinely disseminated are made available upon request." - The quarterly Budget Bulletin is available in Armenian and English, free of charge from the MFE. - The informational monthly report, Social and Economic Situation of the Republic of Armenia, is available in Armenian and Russian, free of charge, from the NSS. - Metadata availability: - "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." - Brief methodology appears in the informational monthly reports and the Statistical Yearbook of Armenia; more detailed descriptions in special ad hoc thematic publications. - "Metadata and summary methodologies for the general and central government and for central government debt are published on the IMF’s DSBB website." - Assistance and contact points: - Publications include contact information (name, surname and telephone). - NSS publishes the Catalogue of Statistical Publications annually, including title, short summary, periodicity and publication deadline; "The electronic version of the catalogue is available on the NSS website at http://www.armstat.am/Eng/Publications/". ### Data Quality Assessment Framework — summary of results (Government Finance Statistics) - Key to symbols: NA = Not Applicable; O = Practice Observed; LO = Practice Largely Observed; LNO = Practice Largely Not Observed; NO = Practice Not Observed; SDDS = Complies with SDDS Criteria. - Selected assessment comments and findings: - 0.3 Relevance: "There is no facility for users to provide feedback to GFS compilers on perceived problems with the quality or usefulness of published data." - 2.2 Scope: "No balance sheet is compiled. Only partial information on NCO is included on the general government data published on the national websites." - 2.3 Classification/sectorization: "The chart of accounts of local governments to compile general government operations is still in the classification of GFSM 1986." - 2.4 Basis for recording: "Face value for financial assets and historical value for the nonfinancial assets are used. There are plans to disseminate accrual data for the first quarter of 2010." - 3.5 Revision studies: "No revision studies are conducted." - 5.1 Data accessibility: "Consolidated general government data are not published on the national websites. However, consolidated general government data are submitted to the IMF for publication on the GFSY." ### Monetary statistics — legal and institutional framework - Legal mandates and responsibilities: - Article 5 of Law 69 of 1996 (Law on Central Bank of the Republic of Armenia) mandates the CBA to "collect, finalize and promulgate monetary and financial statistics." - Article 36 empowers the CBA to "define reporting formats, time frames and forms of banks to the Central Bank ... [and] if required by law, enforce penalties and sanctions against banks," giving it "the exclusive right to obtain statements from banks, credit organizations and other entities, licensed and supervised by the Central Bank." - Article 55 of the Law on Banks and Banking (Law 68 of 1996) states that the CBA "... shall establish the forms, procedure and the term for the statements subject to submission to the Central Bank, taking into consideration existing international standards." - Article 15 of the Law on Credit Organizations (Law 359-S of 2002) requires credit organizations to "prepare, publish and submit to the Central Bank financial statements required by the laws and other normative regulations of the RA [Republic of Armenia] and other statements stated by the Central Bank." - Regulatory instruments: - CBA’s Regulation 3 on Bank Statements, Reporting and Release defines reporting forms and detailed instructions. - CBA resolutions 1/794L and 1/795L set terms and conditions for production and dissemination of CBA publications. ### Data collection, sharing, and coverage - CBA is the sole compiler of monetary and financial statistics in Armenia. - Reporting and processing arrangements: - As of end-March 2008, commercial banks submit their balance sheets (on a weekly, monthly, and annual base) plus 28 supplementary reports for supervisory and statistical purposes to the Statistics Department (SD) of the CBA. - The SD has five divisions: Data Processing Division (DPD), Monetary and Financial Statistics Division (MFSD), Economic Statistics Development Division (ESDD), External Sector Statistics Division (ESSD), and Credit Registry (CR). DPD and MFSD are responsible for compilation, with the DPD maintaining the database. - The CBA provides monetary and financial statistics to the National Statistical Service (NSS) and the Ministry of Finance and Economy (MFE). ### Confidentiality, data security, and legal protection - Legal confidentiality framework: - Article 9 of Law 80 of 1996 (Law on Bank Secrecy) prohibits disclosure of banking secrecy and restricts CBA transmission of customer information, with exceptions only as prescribed by law. - Article 4 defines confidential information; Article 28 of the Law on Central Bank limits disclosure to duties prescribed by law, including court decisions. - Internal policies and sanctions: - The Ethics Code and Staff Guide require protection of confidential information; staff must sign agreements preventing disclosure. - Sanctions include "ranging from 200 to 500 minimum salaries and prison of up to three years" under Articles 144 and 199 of the Criminal Code; and Chapter 68, Article 1165 of the Civil Code. - Technical security controls: - Banks transmit data via a separate, highly secure interbank network (CBAnet) using a separate cable network with no connection to the Internet. - CBAnet runs a special configuration of Lotus Notes (Domino) with individual identification access; within the CBA, confidential data are kept on a separate server with restricted access. - New user permissions require approval from multiple internal departments (Information and Technical Security Department, Supervision Department, SD, and Financial System Policy and Analysis Department). - Dissemination practice: - The Statistical Code of Practice requires that reporting entities "shall not be identifiable within the published statistics"; the CBA disseminates only aggregated data and "no data are published in cases of less than three respondents." ### Statistical reporting, compliance, and enforcement - Legal authority to require reporting: - Article 36 of the Law on Central Bank and Article 55 of the Law on Banks and Banking empower the CBA to collect necessary information. - Regulation 3 defines reporting forms and instructions; changes to reporting forms are discussed with banks and the Banking Association. - Compliance and penalties: - Penalties for noncompliance are foreseen in Article 60, item (e) of the Law on Banks and Banking for infringements or false/inaccurate submissions. - "Financial institutions systematically comply with their reporting obligation, and there were no cases of nonreporting during the past years." - Data confidentiality note: - Monetary data are largely compiled from reporting institutions’ balance sheets, which are considered public information; many countries disseminate financial data at the individual institution level, but the CBA restricts publication when fewer than three respondents. ### Resources, staffing, and IT capacity - Staffing levels and qualifications: - At end-March 2008, the DPD and the MFSD had a combined total of "13 professional and one clerical staff" dedicated full-time to compilation and dissemination of monetary statistics. - All professional staff have university education in economics, statistics, or accounting; three have pursued post-graduate studies. - Experience ranges from six months (two newly appointed employees) to "12–13 years" for three high ranking staff. - Turnover ratio was "around eight percent in 2007." - IT and software: - Each SD staff has a personal computer; software used includes "MS Office 2003, plus in-house applications" for handling bank-transmitted data and access to the Accounting Department database. - The in-house software "Operday" is used to extract the CBA balance sheet for SD staff access. - Automation and backups: - Data transmission and central repository access are fully automated; commercial banks’ data are automatically verified and aggregated by the DPD; sectoral surveys are automatically generated. - Collected data are backed-up "on a daily basis," and once a week a copy of the back-up is sent to the reserve bank in Tsaghkadzor, ensuring that "no more than one-week of data would be lost in case of fire or a natural disaster." - "No data are destroyed." - Human resources policies: - Article 14 of the Law on Central Bank requires staff remuneration schemes consistent with the average rate in the banking system. - Salary scale (nine grades and up to 21 levels within each grade) and performance appraisal governed by CBA resolutions (including 1/516L and 1/138L); new staff are hired on contracts up to 18 months before conversion or termination. - Funding for statistical products planned within one-year short-term horizon and three-year long-term horizon in CBA strategic plan; annual statistical programs used for planning and evaluation. - Internal Audit Department periodically reviews processes and resource use; cost-benefit analysis is used to minimize costs to data providers. ### Relevance, user engagement, and methodological development - Monitoring user needs: - CBA staff participate in domestic and international statistical meetings and professional bodies (including full institutional membership of the Irving Fisher Committee). - Meetings are organized with NSS, MOFE and other institutions to discuss new data requirements. - A Statistical Committee has been set up to improve methodology, publications, and compilation processes; "one staff of the NSS will become a permanent member of this committee" in the near future. - The CBA maintains contact with data users by e-mail, phone, and a questionnaire on the CBA’s website to identify needs. - Methodological plans and limitations: - Plans to disseminate accrual data "for the first quarter of 2010." - Identified limitations include absence of a compiled balance sheet, partial NCO information on national websites, and local government chart of accounts still in GFSM 1986 classification. *Source: Excerpt from the provided IMF country report content.* ### 0.4 Other quality management ### 0.4 Other quality management ### Processes to focus on quality - Monetary and financial statistics follow international quality standards. - The CBA’s Strategic Vision highlights the importance of statistics and its adherence to international standards. - The Statistical Code of Practice sets standards organized around: relevance, integrity, quality, accessibility, confidentiality, and respondents’ burden. - The CBA’s Statistical Committee focuses on data quality at its meetings; staff participate in training and propose improvements to statistical practices. - The SD, in cooperation with the Financial System Policy and Analysis Department, works to improve banks’ chart of accounts, reporting forms, and instructions on data compilation. ### Processes to monitor quality of the statistical program - The CBA’s Statistical Committee meets monthly to discuss strategies for improving monetary and financial statistics; every protocol is approved by the CBA’s Chairman. - All statistical projects are included in the annual working program of the SD, which is evaluated twice a year by the CBA Board. - Compiling areas have permanent contact with experts of European central banks and international organizations, including the International Monetary Fund. - The compilation process is continually reviewed; example change: a revision in September 2007 clarified use of the concept of residency for foreigners living in Armenia who open accounts in the banking sector. ### Processes to address quality in planning the statistical program - Quality enhancements are reflected in the annual work program of the SD, including: improvement of the compilation process, guidelines for respondents, reporting forms, and chart of accounts design aligned with international standards. - Required quality improvements are identified through consistency needs with international standards and issues raised by reporting institutions. - User comments from a questionnaire posted on the CBA’s website are reviewed and relevant ones incorporated into the annual working program. ### Assurances of integrity — Professionalism - Article 1 of the Law on Central Bank of the Republic of Armenia guarantees CBA independence for responsibilities including compilation and dissemination of monetary statistics. - Recruitment and promotion are based on relevant skills and expertise; new recruits become permanent staff after a trial period that can last no longer than 18 months. - Procedures for appointing and promoting heads of departments and divisions are in CBA resolution 1/517L from 2007, “Recruitment and Attestation of the CBA Staff.” - Monetary data compilers follow the Statistical Code of Practice and the Manual on Compilation of Monetary and Financial Statistics in Armenia (drawn closely on the IMF’s MFSM, adapted to the country). - Choices of sources and statistical techniques are informed solely by statistical considerations: - Basic sources: balance sheets of the CBA and all commercial banks. - All commercial banks follow a standard chart of accounts; reporting forms are designed to meet MFSM methodology. - Other financial statistics (e.g., interest rates) are produced using reports by all institutions of the system by instrument and maturity. - Dissemination follows an advance release calendar posted on the CBA’s website; periodicity and timing were never hampered by pressures from other government agencies. - The CBA provides explanatory notes and additional guidelines on request to prevent erroneous interpretation and misuse; the Press Office monitors media coverage, coordinates clarifications, and offers courses and lectures on interpretation and use of statistics. - The head of the SD holds press conferences with media representatives on statistical issues. ### Assurances of integrity — Transparency - Armenia participates in the IMF’s Special Data Dissemination Standard (SDDS). - Electronic versions of relevant laws and legislative acts are available on the CBA’s website in Armenian, English, and some in Russian; the CBA’s Manual on Compilation of Monetary and Financial Statistics in Armenia and the Statistical Code of Practice are also available on the CBA’s website. - There is no internal government access to the data before public release. - All CBA-compiled data are clearly identified as CBA products; when other agencies’ data are used, the producing agency is identified. - The CBA provides NSS tables with monetary data for the NSS’s monthly Socio-Economic Situation of the Republic of Armenia, identifying the CBA as source. - Advance notice of major methodological changes is usually provided in publications and on the CBA’s website. Example: expansion of coverage of the other depository corporations (ODC) survey to include credit institutions — data compiled starting in May 2008, first expanded series published in September after a trial period and prior announcement. ### Assurances of integrity — Ethical standards - The CBA’s Ethics Code and Staff Guide identify norms of conduct and ethical standards; available on the CBA local area network and distributed to all employees. - The Code addresses working arrangements, handling and safeguarding confidential information, conflict of interest, whistleblowing, use of facilities, gifts and invitations, and prohibits other paid employment except academic positions. - Seminars are conducted for newly joined staff; no recent cases of violations. - The Statistical Code of Practice provides additional guidance on adherence to objectivity in statistical collection, compilation, and dissemination. ### Methodological soundness — Concepts and definitions - The SD’s methodological framework for the central bank survey and the ODC survey is consistent with MFSM guidelines. - The depository corporations survey (DCS) is based on CBA and commercial banks’ balance sheets, and will be expanded starting in May 2008 to include accounts of credit organizations (credit unions). - Main monetary aggregates compiled by the CBA: - Monetary base: currency outside the CBA, required and excess reserves of commercial banks at the CBA in national and foreign currency, and deposits at the CBA of public and private nonfinancial corporations in national and foreign currency. - Currency in circulation: notes and coins outside the CBA, excluding currency in commercial banks’ vaults. - M1: currency in circulation plus demand (transferable) deposits of resident nonfinancial corporations, other financial corporations and households in national currency. - M2: M1 plus time deposits of resident nonfinancial corporations, other financial corporations and households in national currency. - M2X: M2 plus all foreign currency deposits of resident nonfinancial corporations, other financial corporations and households. ### Methodological soundness — Scope - At end-March 2008, Armenia’s depository corporations sector comprised the CBA, 22 commercial banks, and 22 credit organizations; the depository corporations survey is based on data from these units. - Credit organizations account for around 8 percent of total loans and 3 percent of total deposits of the ODC sector, but were not included in the ODC survey; the ODC survey will be expanded in May 2008 to include credit organizations, reaching total coverage of the ODC subsector. - Data cover headquarters and branches of all depository corporations, including the headquarters and branches of a bank domiciled in Karabagh, and eight branches in Karabagh of six banks headquartered in Armenia. - The CBA considers Karabagh part of the economic territory of Armenia because the dram is legal tender there and banks operating in Karabagh must be licensed by the CBA. The NSS excludes Karabagh from the economic territory for national accounts and balance of payments statistics. - Recommendation: To be consistent with the NSS definition of the economic territory, the CBA should treat branches in Karabagh of Armenian banks as nonresident financial institutions, and collect data only from the branches in Armenia of the bank headquartered in Karabagh. - The CBA plans to compile the other financial corporations (OFC) survey starting in September 2008 with the accounts of the insurance corporations. ### Methodological soundness — Classification/sectorization - Sectorization follows MFSM and BPM5 recommendations; foreign positions distinguished by residency; statistical definition of residency provided in the CBA’s Manual (section “Sectors of the Economy”). - New procedures were introduced to better identify residence of foreigners opening accounts. - Domestic positions are classified by economic sector per MFSM: central bank, other depository corporations, other financial corporations, central government, local government, public nonfinancial corporations, other nonfinancial corporations, households, and nonfinancial institutions serving households (NPISHs). - Holdings of central government and CBA securities are properly sectorized and validated through the debt registry. - Financial instruments are classified by type, remaining maturity, and currency denomination (national, foreign convertible, and foreign nonconvertible). Note: due to commercial links with Russia, the ruble is classified as convertible foreign currency. - Treatment highlights: - Repurchase agreements classified as collateralized loans. - Financial derivatives recorded for their net value. - Prepaid insurance premiums recorded as Insurance technical reserves. - Valuation adjustments transferred to profits and loss accounts. - Proportions within balance sheets: - Other assets and Other liabilities in the CBA balance sheet: around 8.5 and 0.3 percent, respectively. - Other assets and Other liabilities in the aggregated balance sheet of ODCs: around 9.8 and 7.1 percent, respectively. - A methodological deviation: currency swaps between the CBA and commercial banks were classified as loans (CBA as cash-giver) rather than as spot purchase with forward commitment; these operations have not been carried out for more than one year and related accounts have a zero balance. - DCS presentation categories include: - Net foreign assets (gross claims on nonresidents in convertible currencies, gross liabilities to nonresidents in convertible and national currencies). - Net domestic assets (domestic credit, other domestic assets net). - Domestic credit (net claims on general government, claims on nonbank financial institutions, claims on nonfinancial corporations, claims on NPISHs, and claims on households). Within net claims on government, gross claims on government (broken down by securities and other receivables) and gross liabilities to government (broken down by deposits, loans, and other payables) are shown separately. - Other items net (other financial assets, nonfinancial assets, other accounts receivable/payable, other liabilities, and capital accounts). ### Methodological soundness — Basis for recording - Accounting at the CBA complies with International Financial Reporting Standards (IFRS); financial institutions use Armenian Accounting Standards which generally comply with international standards. - Market prices are used to value flows and stocks. - Foreign currency accounts revalued daily using average market exchange rates announced by the CBA. - CBA positions with the IMF revalued monthly or when transactions occur, based on the market dram/U.S. dollar exchange rate announced by the CBA and the U.S. dollar/SDR rate of the IMF. - Gold (not currently held) was revalued daily using the morning fixing price on the London Bullion Market Auction and average dram/U.S. dollar rate. - Traded securities recorded initially at acquisition cost and revalued daily at fair value per MFSM; securities held to maturity recorded initially at acquisition cost and then valued at amortized cost using the effective interest rate method. For DCS, securities held to maturity by the CBA are valued at market prices at the end of the month. - Recording is on an accrual basis; accounts recorded at settlement day using the price of the transaction date. - Assets and liabilities are presented on a gross basis with no netting; overdrafts recorded as loans; in financial statements loans recorded gross with provisions for loan losses as a negative asset; in monetary statistics the SD moves provisions for loan losses to the liability side under Other liabilities, presenting loans at nominal value. - When producing the ODC survey, the SD consolidates intrasectoral accounts of commercial banks in Other items net. The DC survey consolidates accounts of the CBA with ODCs in Other items net. ### Accuracy and reliability — Source data - All financial institutions operating in Armenia must be licensed by the CBA, enabling an up-to-date register. - Data sources for the DCS are the balance sheets of the CBA and commercial banks; the SD has on-line access to the CBA’s daily balance sheet. - All banks submit reports regularly in compliance with CBA regulations on daily, weekly, monthly, quarterly, and annual bases; report forms are continually evaluated and revised as needed. - Accounting records are sufficiently detailed; supplementary information from report forms N6 (type and maturity of loans) and N17 (interest rates) is used. - Uniform chart of accounts and codification allow detailed classification by instrument, sector, maturity, and currency. - Under Regulation 3, the CBA issues precise instructions on the forms ODCs must complete, use and recording of accounts, validating procedures, and timeliness; reporting forms are write-protected and populated with formulas to reduce mistakes. - The DCS is based on actual accounting records of the CBA and all commercial banks; no sampling or estimations are employed by the SD. - Cross-checking, on-site and off-site inspections monitor compliance. - The balance sheet of the CBA is prepared in accordance with IFRS and audited by an external international firm selected by its Board for up to three years (Article 16 of the Law on Central Bank of the Republic of Armenia); the 2007 financial statements were approved with an unqualified opinion. ### Accuracy and reliability — Timeliness - The SD has on-line access to the CBA’s accounting records through the “Operday” program; CBA data are available on a daily basis to the SD. - Commercial banks transmit daily data on interest rates and foreign exchange position at the end of the day. - Weekly reports (with a two-day lag) include balance sheet, interest rates, and foreign exchange position. - Monthly reports (with a seven-day lag) include balance sheet and all annexes indicated in Regulation 3. - The transmission process is automated, allowing the SD to produce timely monetary data, fully in compliance with SDDS requirements. *Source: _cr0950 - 0.4 Other quality management* ### 3.2 Assessment of source data ### 3.2 Assessment of source data ### Source data assessment practices - Source data (censuses, sample surveys, administrative records) are routinely assessed for coverage, sample error, response error, and nonsampling error; results are monitored and made available to guide statistical processes. - The CBA source data are analyzed for accuracy by the SD and the Accounting Department, and also reviewed by the Internal Audit Department. - The “Operday” program is used for capturing and processing CBA’s accounting data and allows automatic cross-checking of the data. - Bank-submitted source data in Excel format are uploaded into the “FinA” program, a database software designed for queries; “FinA” automatically performs consistency checks including: - identity between assets and liabilities; - cross-checking of interbank positions; - consistency between balance sheet and other report forms; - identification of outliers; and - internal consistency of accounts’ balances. - The SD has developed a long list of equations that must be validated; validations are performed at the level of the individual institution, between institutions, and between the commercial banks and the accounting records of the CBA. - The Supervision Department conducts regular assessments, in cooperation with the SD, to ensure ODCs’ reporting practices are consistent with established guidelines; source data are double checked during on-site inspections. - Formal inconsistencies and out-of-trend values are confirmed with respondents; records are kept with reporting forms. If errors are found, the SD sends back forms to reporters for correction and clarification. ### Key practices and systems - Software and procedures: - “Operday” for CBA accounting data capture and automatic cross-checks. - “FinA” for uploading bank Excel reports and automated consistency validations. - SD-developed validation equation list applied at multiple reconciliation levels. - Institutional roles: - SD and Accounting Department analyze source data accuracy. - Internal Audit Department reviews source data analyses. - Supervision Department performs on-site verification and cooperates with SD on reporting practices. - Error handling: - Reporting institutions are contacted for clarifications when large movements or discrepancies are detected. - Errors in reported data are considered a violation of the regulation and may be subject to sanctions; SD documents irregularities and informs the Supervision Department. ### 3.3 Statistical techniques ### Data compilation - The DCS is based on actual accounting records of the CBA and the commercial banks, so no estimations are necessary. - All data are processed electronically, reducing the risk of mistakes. - Data reported by commercial banks are complete and the SD does not need to estimate missing information. ### Other statistical procedures - No data adjustments or transformations are necessary because data are complete and based on institutions' balance sheets. - Monetary data are seasonally adjusted using X-12-ARIMA procedures. ### 3.4 Assessment and validation of intermediate data and statistical outputs ### Validation of intermediate results - Analytical accounts of the CBA are verified by: 1. accuracy of daily changes verified by individual transactions; and 2. ensuring the basic accounting identity equating foreign assets plus domestic assets with total liabilities plus capital accounts. - Banking sector analytical accounts are verified against other reports submitted by commercial banks (reports on lending, receivables and investment securities, average interest rates). - Interbank positions are validated at the institution level using “FinA”. - Positions with the CBA reported by commercial banks are validated at the individual institution level against the CBA’s accounting records. - Holdings of government securities are validated against a weekly report submitted by market agents and dealers on their own and their clients’ government securities holdings. - Stock data are reconciled with weekly flow data on deposits and loans. - The mission had access to records and could verify consistency of positions by instrument and by currency, both aggregated and at individual institution level. ### Assessment and investigation of discrepancies - Data are regularly monitored to investigate statistical discrepancies and ensure accuracy. - When large movements are noticed, the SD contacts reporting institutions for clarifications. - Errors are treated as regulatory violations and may lead to sanctions; SD resolves issues with the reporting institution and sends an informative letter to the Supervision Department to document the irregularity. - The CBA is committed to investigate any significant discrepancies. Large fluctuations due to random effects are thoroughly explained in statistical publications. ### 3.5 Revision studies - Normally, monetary statistics are not subject to routine revision studies. - The SD working program contemplates tasks for statistical process improvement, including: - surveys investigating classification practices applied by reporting institutions; - expansion of the coverage of the ODC survey to include accounts of the credit organizations, decided after analyzing their relevance within the subsector. - Improvements in coverage will be reflected in disseminated data after the public has been informed. ### 4 Serviceability ### 4.1 Periodicity and timeliness - Daily data on the monetary base, net international reserves, net credit to government, and net domestic assets are posted on the CBA’s website. - Full versions of the monetary aggregates and the DCS are disseminated monthly via the CBA’s website and the monthly CBA Bulletin; this periodicity complies with SDDS requirements. - More detailed classifications appear in the monthly CBA Bulletin and annual publications (Annual Report of the CBA and Annual Statistical Bulletin of the CBA); annual publications include data for all months of the year. - Timeliness: - daily indicators are disseminated with one day lag; - ODCs’ data are disseminated the last working day after the reference month (timeliness complies with SDDS requirements); - monthly publications: timeliness is five weeks after the end of the reference month; - annual publications: timeliness is five months after the end of the reference year. - Quarterly data become final two months after their first release; annual data become final after a period of three months. ### 4.2 Consistency - Monetary data are published according to a balance sheet framework ensuring the accounting identity foreign assets plus domestic assets = total liabilities plus capital accounts. - Separate balance sheet data are disseminated for the CBA and for commercial banks, and analytical accounts of the banking system. - The mission verified that positions vis-à-vis the CBA reported by commercial banks are consistent at institution, instrument, and currency levels with the CBA’s records; interbank positions are likewise consistent. - Historical consistency: - Monetary data are presented in consistent historical series since 1995. - When changes in source data or methodology were introduced, historical data were revised as far back as possible; footnotes explain breaks when they occur. - Cross-framework reconciliation: - SD checks net foreign assets from monetary statistics against net foreign assets from balance of payments statistics and international investment position; consistency is high because all are based on the CBA’s balance sheet. - SD reconciles transactions in net foreign assets in monetary statistics with the corresponding measure derivable from balance of payments. - Inclusion in monetary statistics of banks operating in Karabagh results in some discrepancies with other macroeconomic sectors, but discrepancies are fully reconcilable once the different coverage is considered. - Monetary data on credit to the central government by the CBA and commercial banks are transmitted weekly by the CBA to the MFE to ensure consistency between institutions. - SD cross-checks data on government securities holdings by commercial banks with its debt registry. ### 4.3 Revision policy and practice - Commercial banks’ data are final when first released and not subject to revisions, except when mistakes are detected; revisions are made and explained in footnotes and comments in upcoming releases. - Quarterly and annual data of the CBA are preliminary, pending closing entries for foreign assets managed by external firms and audited reports. - Quarterly data become final two months after first release; annual data become final after three months. - Data are clearly identified as provisional or revised in all CBA publications. - Revisions to methodology (e.g., expansion of coverage to credit institutions) are announced in advance and introduced after a waiting period. ### 5 Accessibility ### 5.1 Data accessibility - Dissemination media and formats: - Statistics are disseminated in hard copy and electronic format on the CBA’s website. - A databank on the website provides historical data from 1995 onwards. - The monthly CBA Bulletin is available as a hard copy in Armenian at the CBA library; Armenian and English electronic versions are on the CBA website. - The quarterly CBA Statement is available as a hard copy in Armenian at the CBA library. - The annual Statistical Bulletin and Annual Report are available as hard copies in Armenian and English at the CBA library and in electronic format on the CBA website. - Time series in an Excel format are available upon request by e-mail and delivered within 48 hours. - Publication timeliness noted at mission visit: - latest available series correspond to March 2008 for the accounts of the CBA and February 2008 for the DCS. - Data presentation and contents: - Data are disseminated in millions of Armenian drams on the analytical accounts of the CBA, covering: - Currency outside the CBA (currency issued excluding currency at the CBA), required and excess reserves of the commercial banks at the CBA in national and foreign currencies, deposits at the CBA of public and private nonfinancial corporations in national and foreign currency. - Net foreign assets, calculated as gross international reserves in convertible currency less gross foreign liabilities in convertible and national currency. - Net domestic assets, including separate data on gross claims on and liabilities to the general government, claims on commercial banks, securities issued by the CBA (with a negative sign), and other net domestic assets. - Data disseminated in millions of Armenian drams on the basis of the consolidation of CBA and commercial banks balance sheets, covering: - Monetary aggregates. - Net foreign assets, based on the residency criterion. - Domestic credit disaggregated by net claims on general government, claims on nonbank financial institutions, nonfinancial corporations, nonprofit institutions serving households and households. - Other net domestic assets (other financial assets, nonfinancial assets, other accounts receivable/payable, other liabilities and capital accounts). - Release schedule: - The Board of the CBA adopted a resolution defining the dissemination timetable; an advance release calendar with precise release dates one quarter in advance is posted on the CBA’s website and disseminated through the IMF’s DSBB. - All data are released simultaneously to the public through press releases, the monthly CBA Bulletin, and the CBA’s website. - Non-routinely disseminated statistics: - Additional (nonconfidential) information is available upon request via contact points listed on the CBA’s website or via the Press Office. ### 5.2 Metadata accessibility - Documentation: - Compilation methodology for data in the Annual Statistical Bulletin is explained in the CBA’s Methodology of Compilation of the Statistical Bulletin of the Central Bank of Armenia, published as a special press release. - The CBA’s Manual on Compilation of Monetary and Financial Statistics in Armenia provides full details and is available in Armenian and English on the CBA’s website. - Data revisions and deviations from accepted compilation practices are highlighted and explained in footnotes to tables. - Metadata on monetary statistics are available on the IMF’s DSBB; the latest update of metadata on the DSBB took place in April 2008. - Levels of detail: - Publications and electronic data provide different levels of detail; methodological comments are published in the CBA Bulletin, the Statistical Bulletin, and the Annual Report and include notes on revised data, methodology changes, and structural changes. ### 5.3 Assistance to users - Contact information (e-mail addresses and telephone numbers) is available on the CBA website; users can submit queries to the contact point or the Press Office. - The CBA website provides information about publications and documents; CBA publications can be obtained free of charge from the contact point upon request. *Source: 3.2 Assessment of source data (excerpt) from the provided IMF chapter content.* ### 0. Prerequisites of quality ### 0. Prerequisites of quality ### 0.1 Legal and institutional environment - Responsibility for compiling and disseminating balance of payments statistics: - The National Statistical Service (NSS) compiles the balance of payments using data provided by the Central Bank of Armenia (CBA). - Compilation and dissemination are governed by the Law On State Statistics of the Republic of Armenia (approved April 4, 2000). - Legal relations for census activities are governed by the Law On the Population Census of the Republic of Armenia (adopted October 12, 1999). - The Law On Three-Year State Statistical Work Program for 2007–2009 was adopted November 29, 2006. - Regulatory acts adopted by the State Council on Statistics (SCS) (selected): - Resolution No. 110-N of the SCS “On Approval of the Charter and Structure of the National Statistical Service of the Republic of Armenia” of July 26, 2002. - Resolution No. 20-N of the SCS “On Approval of the Regulations of the State Council on Statistics … and on Repealing Resolution No. 10 … of August 15, 2000” of November 24, 2006. - Resolution No. 60 of the SCS “On Approval of the Procedure for the Publication of Statistical Information” of August 15, 2001. - Data sharing and coordination: - NSS relations with administrative statistics institutions are regulated by the Law On State Statistics and Resolution No. 109 of the SCS “On Approval of the Procedure for the Maintenance of Administrative (information) Registers and Receiving Information from Them” of May 10, 2002. - The CBA provides data to the NSS under the Agreement between the NSS and the CBA on Data Sharing of June 25, 2001; specific data sets are set out in an appendix to the Agreement (currently under revision to reflect the CBA’s expanded supervisory role). - Confidentiality: - Statistical confidentiality is regulated by the Law On State Statistics and Resolution No. 53-N of the SCS “On Approval of the Procedure for Ensuring the Confidentiality of Statistical Data” of June 25, 2001. - A Commission on Statistical Confidentiality Issues was established within the NSS; all NSS staff must sign a sworn declaration on statistical confidentiality. - Both NSS and CBA balance divisions have confidential procedures and rules to prevent identification of individual respondents. - Legal mandate for reporting: - The provision of necessary statistical information is regulated by the Law On State Statistics and Resolution No. 11-N of the SCS “On Approval of the Procedure for the Presentation of Statistical Data” of October 03, 2003. - The procedure covers obligations for legal persons, individual entrepreneurs, foreign legal persons’ separate units in Armenia, and government/local self-government bodies. ### 0.2 Resources - NSS staffing and financing: - Number of NSS employees is approved by the Prime Minister's Decree on presentation of the NSS President. - In April 2008, NSS staff composition: - Headquarters: Civil servants (tenured) 155; Statisticians (fixed term) 33; SCS members and auxiliary personnel 26; Total 214 - Regional offices: Civil servants (tenured) 179; Statisticians (fixed term) 358; SCS members and auxiliary personnel - ; Total 537 - Total: Civil servants (tenured) 334; Statisticians (fixed term) 391; SCS members and auxiliary personnel 26; Total 751 - Salaries of NSS staff are financed from the Armenia state budget. - Compensation for civil servants is based on the Law On Compensation of Civil Servants. - Balance of Payments Division staffing and conditions: - NSS: eight employees work in the Balance of Payments Division, four of which are engaged in compilation and all have higher education. Staff share one office without air conditioning. Personal computer facilities do not match data processing needs. Staff seldom participate in international seminars or courses. Staff turnover is high, particularly younger staff, and salaries are not comparable with the private sector or the CBA. - CBA: Balance of Payments Division consists of three staff (excluding the head position, currently vacant), all with higher education. Supported by the Data Processing Division. Key staff have experience and have participated in seminars, conferences; facilities are adequate. - Recommendation: - Balance of Payments staff, computing resources, office space, and financing should be improved to adequately compile and disseminate the Balance of Payments statistics. - Resource management: - The Chief of the NSS staff disposes state property attached to the NSS, organizes preparation of the NSS draft budget. - Annual expenditure budget and rechecked financial reports are approved by the NSS President; annual balance and financial reports—by the SCS. - Authenticity of annual financial reports could be audited per Armenia government procedures. ### 0.3 Relevance - Monitoring user needs and program development: - State statistical work programs (three-year and annual) are posted on the NSS website and submitted to a selected sample of about 100 users (government, scientific and educational institutions, judicial bodies, banking system, business, nongovernmental and international organizations and mass media) for comments and recommendations. - The Annual Program includes statistical information on economic, demographic, social and environmental situations and is developed based on the study of users’ needs. - Aspects considered when developing the annual program: availability of resources, burdens on respondents, cost-effectiveness, comparability with international standards, potential stable periodicity of indicators for long-term trend analysis, and harmonization with allocated resources. ### 0.4 Other quality management - Quality policy and internal processes: - Quality policy anchored on principles of applying universal statistical methodology in compliance with international standards and comparability, and use of necessary technical, economic, and social information classifications. - NSS management attaches importance to data quality and reviews data for accuracy. - The National Account Division functions as an internal audit for data consistency and assessment of new questionnaires and methodologies. - Quality monitoring and planning: - Annual program implementation is organized by the NSS President. - Data collected from providers are arithmetically and logically checked. - Internal procedures for ensuring quality are implemented by units as follows: - ensuring proper methodology of indicators—SCS and Statistical Work Methodology and Classifications Division; - business statistics—Macroeconomic Indicators and National Accounts Division and Senior Adviser to the President of the NSS; - macroeconomic indicators—Senior Adviser to the President of the NSS; - publications and dissemination—Vice President and Statistical Publications and Marketing Division. - Coordination for external statistics: - The External Statistics Committee was established on May 18, 2007 to improve external statistics, including balance of payments. The Committee, under the NSS with CBA and the Ministry of Finance and Economy (MFE) as permanent members and other agencies as needed (primarily the State Custom Committee Service (SCCS)), meets regularly. - A major revision of parts of the balance of payments for the period 2004–2006, introduced in 2007, was the first result of this Committee. ### 1. Assurances of integrity ### 1.1 Professionalism - Impartial production of statistics: - Article 5 of the Law On State Statistics states Armenian official statistics should be governed by principles of objectivity, reliability, and integrity, observe international methodological standards, and internationally accepted practices on accessibility and dissemination. - Article 9 specifies requirements and restrictions for the President of the NSS, including tenure protections and nomination of deputies. - Source and technique choices: - NSS makes choices about data sources and statistical techniques based solely on professional statistical considerations and international standards; no evidence of outside interference. - The annual program (approved by the SCS) publicly documents reasons behind source and methodology choices and includes: - a list of statistical activities, implementation terms, coverage, and types of observations; - periodicity of presentation of statistical indicators; - list of surveys to be implemented by the NSS, published handbooks, bulletins, and their periodicity; - list of organizations and administrative registers providing summary statistical information; - list of users of statistics and the breakdown of information provided free of charge and its structure. - Decisions about timing and format of dissemination are based solely on statistical considerations. - Right to comment on misuse: - Under the Law On State Statistics, the NSS has the right (not an obligation) to provide clarifications on misuse and misinterpretation of published statistical information. - NSS policy is to provide additional explanations with releases; the Public Relations Unit monitors media daily. - NSS and CBA Statistics Department regularly cross-check published data. ### 1.2 Transparency - Public availability of terms and conditions: - Users have full access to information about conditions for collection, processing, dissemination, release timetables, confidentiality, and other specifics. - Publication records: - Law On State Statistics published in the Official Bulletin of the Republic of Armenia, No. 8 (106) of April 28, 2000, and on the NSS website. - Law On the Population Census published in Official Bulletin No. 28 (94) of November 13, 1999. - Law On the Three-Year Program of Statistical Projects for 2007–2009 published in Official Bulletin No. 66 (521) of December 25, 2006 and posted in Armenian on the NSS website. - Selected SCS resolutions published in the Bulletin of Departmental Regulatory Acts with exact references and dates (e.g., Resolution No. 110-N published No. 21 (107) of September 2, 2002; Resolution No. 11-N published No. 3 (151) of February 02, 2004; Resolution No. 53 published No. 15 (78) of September 4, 2001; Resolution No. 60 published No. 3 (89) of February 11, 2002; Resolution No. 20 published No. 30 (239) of December 15, 2006; Resolution No. 109 published No. 17 (103) of July 15, 2002). - Following SCS approval, all government statistical reporting forms and instructions are published in the Bulletin of Departmental Regulatory Acts and posted on the NSS website (Armenian versions). - Pre-release access: - Balance of payments data are released simultaneously to all users; no government officials outside the NSS have access prior to release. - Identification of statistical products: - All data releases are clearly identified as produced by the NSS; joint publications identify NSS data as a product of the statistical office. NSS print publications identify NSS as the source. - The Public Relations Division scans other websites using NSS data to check attribution. - Advance notice of major changes: - Major changes in methodology, source data, and techniques are announced in advance through publication of the annual statistical program. - NSS notifies parties responsible for presentation of statistical information of methodological changes via new reporting forms and/or instructions, following SCS approval and publication in the Bulletin of Departmental Regulatory Acts. *Source: _cr0950 - 0. Prerequisites of quality* ### 1.3 Ethical standards ### 1.3 Ethical standards ### Ethical standards — findings - Guidelines for the NSS staff behavior are set by: - Law On Civil Service (published in the Official Bulletin of the Republic of Armenia, No. 1 (176) of January 09, 2002). - Resolution of the Armenia Civil Service Board No 13-N “On Approval of the Guidelines for the Civil Servants’ Ethics” of May 31, 2002 (published in the Bulletin of Departmental Regulatory Acts of the Republic of Armenia, No 18(104); of August 01, 2002). - Guidelines for behavior are provided in legislation on the civil service. - Guidelines for staff behavior are in place and are well known to the staff (1.3.1). *Source: IMF staff assessment text.* ### 2. Methodological soundness ### 2.1 Concepts and definitions — findings - The overall structure in terms of concepts and definitions follows internationally accepted standards, guidelines, or good practices (2.1.1). - The balance of payments is defined as transactions between Armenia (residents) and the rest of the world (nonresidents) during the reporting period (quarter and year). - The balance of payments comprises two main accounts: - (1) the current account: imports and exports of goods; services; income; and current transfers. - (2) the capital account and financial account: the capital account includes capital transfers and acquisition/disposal of nonproduced, nonfinancial assets; the financial account includes transactions in foreign direct investment, portfolio investment, other investment, and international reserve. - Errors and omissions are included as the differences between the current account and the capital account and financial account. - The framework, concepts and definitions used follow the Balance of Payments Manual, fifth edition (BPM5). - The one-year criterion for residence is adopted, including special treatments for nonlocal staff of embassies and Armenia citizens having a principal residence abroad being treated as nonresidents; applied as far as practicable for compensation of employees, remittances, and local expenditure by staff of embassies. ### 2.2 Scope — findings - The scope is broadly consistent with internationally accepted standards, guidelines, or good practices (2.2.1). - In principle, the balance of payments covers all transactions between residents and nonresidents as specified in BPM5: no major component is excluded. - For the banking sector, data include a bank headquartered in the Karabagh and branches of Armenian banks located in Karabagh as resident entities, which in both cases should be treated as nonresidents. - No estimates are made for any illegal activities. - No data are collected for derivatives but these are either nonexistent or insignificant and their exclusion is not material. - The CBA is monitoring developments and adapts as necessary. - Transfers, including remittances, and compensation of employees (household receipts from abroad) are important for the Armenian balance of payments. - Remittances lack a universally accepted definition; interpretations vary between gifts/maintenance payments by migrants living abroad permanently and earnings received by short-term workers. - BPM5 contains no single data item capturing remittances; the draft BPM6 identifies standard components and supplementary definitions that relate to remittances. - Once BPM6 is final, a supplementary presentation of remittances-related data could be useful given their importance to Armenia. ### 2.2 Scope — recommendations - Recommendation: The CBA should treat branches in Karabagh of Armenian banks and banks headquartered in Karabagh as nonresident financial institutions, and include data only from the branches in Armenia of the bank headquartered in Karabagh. - Recommendation: A special presentation on remittances, compensation of employees, and private transfers along the lines of the additional presentation suggested in the draft Balance of Payments and International Investment Position Manual (BPM6) is recommended in view of the importance of these flows in Armenia. ### 2.3 Classification/sectorization — findings and actions - Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices (2.3.1). - Institutional units are classified and attributed to the relevant sector according to BPM5. - For data collected for insurance companies and money market dealers no split is made between portfolio investment and foreign direct investment; foreign ownership in these entities, mainly insurance companies, is very low. - New reporting forms that split portfolio and foreign direct investment have been distributed and revision will be made back to 2007. ### 2.4 Basis for recording — findings - Market prices are used to value flows and stocks (2.4.1). - Valuations generally follow BPM5 methodology; where market prices do not exist (mainly financial investment liabilities), other valuation methods are applied as allowed by BPM5. - Exports and imports are valued f.o.b. (free on board). - Imports data are collected by the SCCS on a c.i.f. (cost, insurance, and freight) basis and converted by the NSS to a f.o.b. basis using fixed ratios based on type of commodity, mode of transportation and country of origin; these ratios were developed via a survey in 2001. - For nonfinancial companies inward foreign direct investments are valued at book value. - Banking sector: financial securities are valued at market value on the asset side (outwards investments), and on the liabilities side at book value adjusted for reinvested earnings for unlisted equity and amortized value for debt securities. - Debt securities in principle should be valued at market values but nonresident holdings are practically nonexistent and no formal quotation of securities issued by Armenia residents exists. - The CBA reporting requirements for banks on liabilities reflect accounting rules for banks. - Other investments are recorded at nominal values in accordance with BPM5. - The NSS generally collects balance of payments data both in U.S. dollars and drams; further processing and dissemination are done in U.S. dollars only. - Transactions denominated in a different currency are converted into U.S. dollars using the exchange rate in effect at the time the transaction is performed. - Goods data are compiled in original currency and converted to U.S. dollars and drams using the daily exchange rate; if impossible to determine the exchange rate, the average exchange rate for the reference period is used. - The CBA compiles its data in drams and some data also in foreign currency (information on money transfers via the banking sector). - Conversion to U.S. dollars is based on end-of-period exchange rates for stocks and average exchange rate for the reporting period for flows. - Respondent data distinguish changes due to transactions and valuation changes due to prices and exchange rate variations; calculations are based on average reporting period exchange rates. ### 2.4 Basis for recording — recording basis - Recording is done on an accrual basis (2.4.2). - Balance of payments are generally recorded on an accrual basis in accordance with BPM5, except for interest income and dividends for the nonbanking sector, which are on a cash basis. - The largest intertemporal difference on investment income between cash and accrual is typically in portfolio investments, which in Armenia is insignificant. - For goods, SCCS data reflect time of customs clearance, not necessarily change in economic ownership; for large transactions adjustments are made when identified to align timing with change in economic ownership. - Timing adjustments based on fixed ratios from the 2001 c.i.f./f.o.b. survey are made; corresponding adjustments are done to trade credits. ### 2.4 Basis for recording — grossing/netting - Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices (2.4.3). - Current transactions are compiled and disseminated on a gross basis. - Financial transactions are recorded on a net basis distinguishing between assets and liabilities. ### 3. Accuracy and reliability ### 3.1 Source data — coverage and sources - Source data are obtained from comprehensive data collection programs that take into account country-specific conditions (3.1.1). - A wide range of sources are used; data sources are comprehensive and often based on direct reports by relevant entities. Key source descriptions: - Goods: - Primary sources: customs declarations obtained from SCCS by the NSS on a monthly basis. - SCCS data cover goods entering and leaving Armenia in excess of a threshold of US$300. - Shuttle trade data derived from simplified customs declaration forms capturing transactions below that threshold. - Trade with Karabagh is excluded. - Supplemented with direct reporting for exports/imports of electricity and imports of natural gas. - Data on goods procured in ports collected from transport companies (main domestic airport and airline) on a quarterly basis. - Services: - Various quarterly surveys of private nonfinancial companies by NSS covering transportation and computing services; communication services; and other services. - Travel data based on combination of quarterly sources: travel agencies; hotels; number of arrivals and departures from Department of Migration. - A one-time monthly survey from September 2006 to August 2007 on spending, purpose of travel and country of origin supplemented traveler data. - Travel items are estimated from number of travelers, average length of stay, and average daily expenditures. - Transportation services based on Customs data where freight element is identifiable. - Financial services of the banking sector compiled by the CBA. - Income: - Investment income collected via survey for the banking sector and other financial companies by the CBA and for nonfinancial companies by NSS. - Public sector data provided by the MFE. - Data cover portfolio investment; foreign direct investment and other investment and international reserves. - Compensation of employees: mainly compiled by the CBA from banks in relation to clients’ (household sector) money transfers, a CBA survey on purpose of transfers, supplemented with NSS household survey and information from embassies in Armenia. - Current transfers: - Humanitarian aid value assessed by exporter and recorded in Customs declarations. - Fees of membership in international organizations paid by government collected from MFE. - Technical assistance received compiled from ministries and additional estimates. - Private current transfers (remittances and other current transfers) mainly from CBA data on money transfers and surveys supplemented with NSS household survey. - CBA money transfers data include overall number for money transfers and information from banks on clients’ money transfers; surveys of transferees concerning purpose, country of origin, and source conducted under auspices of the CBA. - Capital account: - Migrants’ transfers estimated based on customs data, household surveys, State Committee of Real Assets Cadastre information and data on money transfer via banking system and transferee surveys. - Capital transfers for general government obtained from MFE and CBA. - Direct investment: - Data collected from foreign direct investment companies. - Based on State Business Register all companies with foreign ownership are surveyed. - Companies where the initial foreign investment is below US$25,000 are surveyed annually; those above are surveyed quarterly. - Banking sector and other financial companies data collected by direct reporting by the CBA. - Supplemented with data for money transfers via banking system related to foreign direct investment in the form of real estate. - Portfolio investment: - Compiled by the CBA, only relate to the banking sector; all banks and credit institutions covered. - MFE provides data of foreign ownership for government issued securities. - Other investment: - Obtained from MFE (government loans); from CBA for banking sector and other financial companies; and from direct investment companies surveyed by NSS. - Data on the Special Privatization Specialized Fund (account managed by CBA) provided by CBA. - Households holdings of currency and deposits (in particular foreign currency in cash) based on same sources and estimation methods used for remittances. - CBA conducts a dollarization survey for monetary policy purposes containing information about foreign currency holdings and flows for cross-checking with balance of payments and IIP data. - Reserve assets: - Compiled by the CBA. Coverage and limitations: - Transactions in financial investment assets (residents’ investments in financial assets issued by nonresidents) are in principle covered across sources, but anecdotal information suggests possible under-coverage. - Two main reasons for potential under-coverage: - State business register or financial statements do not identify companies with holdings of financial assets issued by nonresidents; surveyed companies are those known to have foreign inward direct investments (liabilities), which does not necessarily imply they have financial assets. - Companies are reluctant to report financial assets abroad to NSS and tax authorities; household sector financial assets are often underreported in surveys. - Financial sector’s financial assets holdings and flows are well covered. ### 3.1 Source data — recommendation - Recommendation: In the context of the NSS’s plan to extend the national accounts to also include financial accounts, more or new sources data are likely needed. Ways to either integrate the needs for balance of payments data directly into these new sources or as a source for identifying potential important nonfinancial companies holdings abroad should be investigated. This is medium term. ### 3.1.2 Source data — approximation assessment - Source data reasonably approximate the definitions, scope, classification, valuation, and time of recording required to meet BPM5 recommendations (3.1.2). - Year-end adjustments reported as revisions in the annual foreign direct investment survey once companies close their books and make year-end adjustments; published statistics are revised accordingly. ### 3.1.3 Source data — timeliness - Source data are sufficiently timely to allow quarterly data to be produced within one quarter after the reference period and within 180 days for annual data (3.1.3). - Compilers follow up with respondents to ensure timely data. - Penalties can be levied on nonresponders but are very rarely used as a cooperative approach is strongly preferred. ### 3.2 Assessment of source data — practices - Source data—including censuses, sample surveys, and administrative records—are routinely assessed for coverage, sample error, response error, and nonsampling error; results are monitored and made available to guide statistical processes (3.2.1). - Balance of payments staff compare micro and macro level data reported for earlier periods to check plausibility of trends; large transactions (privatizations or large investments from abroad) are monitored closely. - Forms are designed to reconcile transactions during the reporting period with opening and closing balances where possible. - When only stocks are collected and flows calculated, information distinguishes changes due to valuation adjustments (exchange rate changes, price changes) from transactions. - Consistency between reporting periods is validated. - Data are verified via consistency checks within survey forms and by linking data at subsequent levels or other related surveys, particularly remittances. - Plausibility of investment income is assessed with a rate of return analysis, comparing interest to outstanding stocks for respective instruments. - Customs data for each type of good are checked for temporal consistency; these and other data checks are automated. - For bank-collected money transfer data used in remittances, compensation of employees, capital transfers, and foreign direct investment estimations, data are checked against surveys to verify classification of money transfers. - In practice, banks may use citizenship instead of residence as the residency criteria; the CBA emphasizes the definition of residence criteria to the banks. *Source: IMF staff report text.* ### 3.3 Statistical techniques ### 3.3 Statistical techniques ### Data compilation and entry - Data entry procedures include checks to avoid miscoding and misreporting. - Queries are made to reporters concerning unusual values. - Nonresponse is very low and no estimations are applied to substitute for nonresponse. ### Other statistical procedures (adjustments, transformations, analysis) - Goods - Adjustments to imports of goods: imports are estimated on a f.o.b. basis by applying constant percent (depending on type of goods, mode of transportation and country of origin) deductible to the c.i.f. import value. - The average adjustments are based on a survey conducted in 2001. - Services — adjustments to improve coverage/classification/timing/valuation - Value of services (transport and cargo insurance) rendered by nonresidents are estimated through adjustments made to the value of imports of goods (from c.i.f. to f.o.b. basis) and added to imports of services. - Adjustments to export of transport and insurance services use data from customs declarations with regard to transport provided by Armenia residents. - These estimates are cross-checked with quarterly data from transport providers (airline, train, and international trucking providers). - Credit and debit entries for travel are estimated on the basis of the number of travelers, the average length of stay, and the average daily expenditures, and adjusted for seasonal workers. - Income - Adjustments to compensation of employees are made based on information from the data of household survey; surveys of money transferees; and banks. - The data is adjusted based on a fixed ration to get compensation of employees on a before tax and social contribution basis. - Current transfers - Adjustments to current transfers are made based on data from the annual household survey; surveys of money transferees; and banks. - Data for remittances is based on a very elaborated estimation data model taking several sources into account. The main sources being transfers via the banking system that are then adjusted by various surveys of the transferees. - Capital account - Estimates are derived from household surveys conducted by the NSS. - Transactions are mainly outflows of emigrant transfers. Estimates are based on the number of emigrants and the average size of emigrating families, together with average prices of apartments sold in Armenia. - Information on average property prices is obtained from the State Committee of Real Assets Cadastre. - Financial account, foreign direct investment - Adjustments to data on direct investment are done concerning the direct foreign investment inwards companies, for which the State Business Registers show equal joint foreign ownership of initial capital of AMD50,000 and which are not covered by the foreign direct annual survey. - Financial account, household sector holdings for foreign currency (cash holdings) - Based on the same sources described under remittance above. - Financial account, portfolio investment - No adjustments to data on portfolio investment are made. - Financial account, other investment - No adjustments to data on other investment are made. - Financial account, reserve assets - No adjustments to data on reserve assets are made. - Recommendation: - Update c.i.f./f.o.b. estimation factors for international trade in goods. ### 3.4 Assessment and validation of intermediate data and statistical outputs - 3.4.1 Intermediate results validation - Data reported by banks for monetary statistics purposes are reconciled with data reported by banks concerning balance of payments purposes. - Information from the press on acquisitions and major new projects is used to verify high-value direct and other transactions. - 3.4.2 Assessment and investigation of statistical discrepancies in intermediate data - Any statistical discrepancies or inconsistencies which appear in intermediate results are investigated by the staff of the Balance of Payments Division. - The IIP data are compared to the corresponding income and financial transactions data. - 3.4.3 Investigation of discrepancies and other indicators of problems in outputs - The net errors and omissions value is monitored closely. - Trade data are compared with partner data, although resource constraints mean this is done with a low frequency. - Cross-checks of statistical data quality on external trade based on mirror statistics have been conducted since 1996 jointly with Georgia, Ukraine, and the Netherlands. - In 2001 mirror statistics cross-checks were conducted with Germany, instead of the Netherlands. - Data discrepancies for these partner countries are analyzed, but verifications are not made. - Data on remittances are compared with mirror statistics for the Central Bank of Russia. ### 3.5 Revision studies - 3.5.1 Studies and analyses of revisions - Revisions between preliminary and subsequent changes of data submissions are monitored as part of the regular processes of data entry and processing. - No strict formal revision studies are conducted but revisions feed into improvements of statistical processes, as evidenced by the 2004–2006 revision, which revolved around a joint CBA–NSS revisions and sources comparison study. ### 4 Serviceability — 4.1 Periodicity and timeliness - 4.1.1 Periodicity - The NSS disseminates both quarterly and annual balance of payments statistics. - The Special Data Dissemination Standard (SDDS) requirements are met. - 4.1.2 Timeliness - Quarterly data are published one quarter after the end of the reference period (meeting the prescriptions of the SDDS). - Annual data are published two quarters after the end of the reference year. ### 4.2 Consistency - 4.2.1 Consistency within the dataset - Concepts, definitions, and classifications for compiling the quarterly and annual data are the same. - Annual data are derived as the total of quarterly data. - When new data are available from the annual data sources (particularly the foreign direct investment survey and the final customs data), changes to data, if necessary, are made to the quarterly data covering the corresponding data. - Transactions in the balance of payments are consistent also with the IIP data. - Except for 2006, net errors and omissions for the balance of payments have been trending downward in numerical value. They were –US$2.6 million in 2007, compared with a capital account balance of US$591.47 million. - 4.2.2 Consistency over time - Annual time series data are available back to 1993, and from 1996, quarterly, based on details according to the BPM5. - When new methods are introduced data are revised back to the extent possible. Breaks in the series will be identified by notes or footnotes. - In 2007 the CBA, assisted by the NSS, conducted a new survey and developed more detailed estimations and adjustments methods, and made revisions to the balance of payments for 2004–06. - The revisions were mainly in: “Travel,” “Transfers of Military Servants and Other Seasonal Workers including Border Workers,” “Private Current Transfers,” “Private Capital Transfers,” “Foreign Direct Investments,” and “Currency and Deposits.” - The revisions were instigated and monitored by the “Commission on the External Sector Statistics” established in May 2007. The Commission felt it was not prudent to revise further back with the given set of information. - 4.2.3 Consistency with other data sources/frameworks - The same data sources are used for monetary financial statistics, government finance statistics, and public external debt statistics. Balance of payments data are consistent with these statistics. - Data for exports and imports are derived from customs statistics. It is possible to show the derivation of trade data on a balance of payments basis from NSS Foreign Trade Statistics and other adjustments (such as for general trade, import valuation). - Data for gross national income and gross national disposable income have been prepared from 2007 on the basis of the Balance of Payments Division data on income and transfers and are fully consistent. - National accounts estimates of expenditure on GDP are being prepared using the balance of payments data on exports and imports of goods and services, so the data are consistent. ### 4.3 Revision policy and practice - 4.3.1 Revisions follow a regular and transparent schedule - Data are preliminary when first released. When annual data are published, data for the corresponding quarters are revised. - This revision policy is available on NSS’s website. - In exceptional circumstances revisions occur when data calculation methods are significantly changed. Such changes are made public in advance as in the case for the revision made in 2007 for the period 2004–06. - 4.3.2 Preliminary and/or revised data identification - In the relevant publications, data are designated as current (preliminary), revised, or final. - Revised data are accompanied by explanatory footnotes. - 4.3.3 Public studies and analyses of revisions - In principle, in case of larger revisions, explanations are provided; however, the explanations provided in connection with the 2004–2006, as provided in publication “Balance of Payments of the Republic of Armenia 2007” was very sparse. - Recommendation: The NSS should explain in more detail, reasons, methods and effects of revisions, in particular in connection with larger revisions, or in connection with significant changes in methods or sources. ### 5 Accessibility — 5.1 Data accessibility - 5.1.1 Presentation and interpretability - Balance of payments data are disseminated in U.S. dollars. - Quarterly and annual balance of payments data are disseminated in analytical format or on the basis of standard components, in accordance with the requirements of the BPM5. - The published data by NSS are not accompanied with text or charts that highlight trends and developments that facilitate interpretation. - The CBA usually in the 2nd quarter Bulletin provides an economic analysis of the developments in the area of balance of payments. - Recommendation: Consider accompanying data with text or chart that highlight trends and developments in the balance of payments statistics. - 5.1.2 Dissemination media and format - Data are available in tables on the NSS’s website. - Data are also published in Annual Reports both available in local languages and English on the NSS’s website and as hard copies. - Hard copies on balance of payments statistics are available in three different forms (all free of charge): - The Socio-Economic Situation of the Republic of Armenia monthly informational report (available in Armenian and Russian) - The Statistical Yearbook of Armenia (available in Armenian, English, and Russian) - The Balance of Payments Statistical Yearly Handbook of the Republic of Armenia (available in Armenian and English) - The electronic version of publications are available in Armenian (fully), English and Russian at the addresses listed by the NSS. - CD ROM: The Statistical Yearbook of Armenia is available in Armenian, Russian, and English (free of charge). - Data are not available in any downloadable format, e.g., Excel. This makes it labor intensive for the users to obtain data for their own manipulation and analysis. - From the new NSS web site, that currently is under construction, data will be available in a downloadable format. - 5.1.3 Preannounced release schedule - Release calendars for statistical publications, including balance of payments, appear in the Annual Statistical Work Programs. - An Advance Release Calendar, which gives one quarter notice of the precise release dates is also disseminated on the Internet on the IMF’s Data Dissemination Bulletin Board. - 5.1.4 Simultaneous availability to all users - All data are released simultaneously to the public through hard copies and on the NSS website. - Copies of these publications are placed in the library of the NSS, which is open to the public. - 5.1.5 Non-routinely disseminated statistics - Additional data series, that do not contain confidential information, are provided upon request. ### 5.2 Metadata accessibility - 5.2.1 Documentation availability - Brief methodological commentary on indicators is published in the Socioeconomic Position of Armenia monthly informational reports, in the Statistical Yearbooks of Armenia, and in greater detail in topical publications. - Differences from internationally accepted standards, guidelines, or good practices are annotated in available documentation. - 5.2.2 Level of detail adapted to audience - The level of detail in metadata is for broad general users. - Recommendation: For the more sophisticated users, additional information on sources, adjustments, estimations and other methodology adjustments would be useful. ### 5.3 Assistance to users - 5.3.1 Contact points - The NSS’s publications and internet website only provide general contact information to data users. - The NSS receives a high volume of requests, which is time intensive to satisfy. - 5.3.2 Catalogs and service information - The NSS publishes and disseminates the “Catalogue of Statistical Publications” every year, containing detailed and structured information on the NSS’s hard copy publications, summaries, periodicity and publication deadlines. ### Key numeric and factual items highlighted - Survey basis for c.i.f./f.o.b. adjustments: 2001. - Revisions conducted covering: 2004–2006 (revised in 2007). - Commission on the External Sector Statistics established: May 2007. - Net errors and omissions: –US$2.6 million in 2007. - Capital account balance: US$591.47 million (comparison figure for 2007). - Annual time series available back to: 1993. - Quarterly series available from: 1996 (based on BPM5). - State Business Registers threshold cited: AMD50,000. - NSS publications availability languages: Armenian, English, Russian. - The CBA usually provides analysis in the 2nd quarter Bulletin. *Source: _cr0950 - 3.3 Statistical techniques* ### Appendix II. Data Quality Assessment Framework—Generic Framework ### Appendix II. Data Quality Assessment Framework—Generic Framework (July 2003 Framework) ### Prerequisites of quality - 0.1 Legal and institutional environment—The environment is supportive of statistics. - 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. - 0.2 Resources—Resources are commensurate with needs of statistical programs. - 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. - 0.3 Relevance—Statistics cover relevant information on the subject field. - 0.3.1 The relevance and practical utility of existing statistics in meeting users’ needs are monitored. - 0.4 Other quality management—Quality is a cornerstone of statistical work. - 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 - 1.1 Professionalism—Statistical policies and practices are guided by professional principles. - 1.1.1 Statistics are produced on an impartial basis. - 1.1.2 Choices of sources and statistical techniques, as well as decisions about dissemination, are informed solely by statistical considerations. - 1.1.3 The appropriate statistical entity is entitled to comment on erroneous interpretation and misuse of statistics. - 1.2 Transparency—Statistical policies and practices are transparent. - 1.2.1 The terms and conditions under which statistics are collected, processed, and disseminated are available to the public. - 1.2.2 Internal governmental access to statistics prior to their release is publicly identified. - 1.2.3 Products of statistical agencies/units are clearly identified as such. - 1.2.4 Advance notice is given of major changes in methodology, source data, and statistical techniques. - 1.3 Ethical standards—Policies and practices are guided by ethical standards. - 1.3.1 Guidelines for staff behavior are in place and are well known to the staff. ### Methodological soundness - 2.1 Concepts and definitions—Concepts and definitions used are in accord with internationally accepted statistical frameworks. - 2.1.1 The overall structure in terms of concepts and definitions follows internationally accepted standards, guidelines, or good practices. - 2.2 Scope—The scope is in accord with internationally accepted standards, guidelines, or good practices. - 2.2.1 The scope is broadly consistent with internationally accepted standards, guidelines, or good practices. - 2.3 Classification/sectorization—Classification and sectorization systems are in accord 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. - 2.4 Basis for recording—Flows and stocks are valued and recorded according to internationally accepted standards, guidelines, or good practices. - 2.4.1 Market prices are used to value flows and stocks. - 2.4.2 Recording is done on an accrual basis. - 2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices. ### Accuracy and reliability - 3.1 Source data—Source data available provide an adequate basis to compile statistics. - 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 Assessment of source data—Source data are regularly assessed. - 3.2.1 Source data—including censuses, sample surveys, and administrative records—are routinely assessed, e.g., for coverage, sample error, response error, and nonsampling error; the results of the assessments are monitored and made available to guide statistical processes. - 3.3 Statistical techniques—Statistical techniques employed conform to sound statistical procedures. - 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 Assessment and validation of intermediate data and statistical outputs—Intermediate results and statistical outputs are regularly assessed and validated. - 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. - 3.5 Revision studies—Revisions, as a gauge of reliability, are tracked and mined for the information they may provide. - 3.5.1 Studies and analyses of revisions are carried out routinely and used internally to inform statistical processes (see also 4.3.3). ### Serviceability - 4.1 Periodicity and timeliness—Periodicity and timeliness follow internationally accepted dissemination standards. - 4.1.1 Periodicity follows dissemination standards. - 4.1.2 Timeliness follows dissemination standards. - 4.2 Consistency—Statistics are consistent within the dataset, over time, and with major datasets. - 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. - 4.3 Revision policy and practice—Data revisions follow a regular and publicized procedure. - 4.3.1 Revisions follow a regular and transparent schedule. - 4.3.2 Preliminary and/or revised data are clearly identified. - 4.3.3 Studies and analyses of revisions are made public (see also 3.5.1). ### Accessibility - 5.1 Data accessibility—Statistics are presented in a clear and understandable manner, forms of dissemination are adequate, and statistics are made available on an impartial basis. - 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. - 5.2 Metadata accessibility—Up-to-date and pertinent metadata are made available. - 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. - 5.3 Assistance to users—Prompt and knowledgeable support service is available. - 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. Users’ Survey — Summary of results - Survey purpose: To complement the IMF staff’s assessment of the quality of official statistics produced by soliciting user evaluations of coverage, periodicity, timeliness, and dissemination practices. - Questionnaire distribution and responses: - Questionnaires were sent to 71 users. - 44 responses were received. - Respondents represented government agencies, academia, international organizations, embassies, research institutes, and banks. - Main findings: - Respondents’ average rating for the overall quality of the official statistics for all sectors was above 4.2 on a five point scale (1 meaning poor and 5 excellent). - Over 85 percent of users consider the methodology of all datasets assessed to be sound and the data compiled to be accurate and unbiased. - Broad satisfaction was expressed with the timeliness and the periodicity of the official statistics. - Users were generally satisfied with the level of coverage and detail of the statistics. - The large majority indicated satisfaction with the accessibility to official statistics, with most relying on the official websites. - Suggested improvements included enhancements to the agencies’ websites, the electronic format of the data disseminated, and strengthening of the disseminated metadata. *Appendix II. Data Quality Assessment Framework—Generic Framework (July 2003 Framework), _cr0950 - Appendix II. Data Quality Assessment Framework—Generic Framework* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2009/_cr0950.pdf_