Quarterly local government finances: documentation of statistics
The documentation of the statistics describes how the statistics were compiled and what methods were used in the compilation. The data help interpret the figures of the statistics and evaluate their reliability and comparability. The quality report is based on the EU's SIMS model. The documentation also contains change releases describing changes in the statistics and possible specifying methodological descriptions.
If you are looking for statistical figures for these statistics, go to the statistics page: Quarterly local government finances
Quality report
Data description (SIMS 3.1)
The statistics have been discontinued. The statistics on quarterly local government finances describe the quarterly development of the finances of municipalities and joint municipal authorities in Mainland Finland.
Sector coverage (SIMS 3.3)
The statistics cover the local government sub-sector of municipalities and joint municipal authorities. The statistics describe all the areas of responsibility of municipalities and joint municipal authorities in aggregate.
Statistical unit (SIMS 3.5)
The data are collected on a sample basis from municipalities and joint municipal authorities for the compilation of statistics for the first, second and third quarters. The fourth-quarter data are collected from all municipalities and joint municipal authorities in Mainland Finland. Data are published in aggregate at the levels of municipalities of Mainland Finland and joint municipal authorities of Mainland Finland.
Statistical population (SIMS 3.6)
The total population includes all municipalities and joint municipal authorities in Mainland Finland.
A sample of 80 municipalities and 69 joint municipal authorities is extracted annually from the total population for the compilation of statistics for the first, second and third quarters. The fourth-quarter data are collected from all municipalities and joint municipal authorities in Mainland Finland.
The sampling of municipalities and joint municipal authorities is based on stratified simple random sampling. The population of municipalities is stratified into five strata according to the level of the operating expenses. Due to the smaller population size, joint municipal authorities are stratified into four strata.
The statistics follow the principle of rotation sampling, in which about a fifth of the municipalities and joint municipal authorities in the random sample change each year.
Reference area (SIMS 3.7)
All municipalities in Mainland Finland and all joint municipal authorities in Mainland Finland.
Time coverage (SIMS 3.8)
The data of the statistics on quarterly local government finances are available from 2016 onwards. The data published in the statistics may be revised over a period of one year after the initial release.
Data of quarterly local government finances are available from 2013 onwards from the statistics on local government finances by quarter.
Base period (SIMS 3.9)
The data are cumulative quarterly data. Cumulative quarterly data cover the timeperiod between the beginning of each statistical reference year and the end of each quarter.
Unit of measure (SIMS 4)
The unit of measure used is EUR 1,000.
Reference period (SIMS 5)
The statistics on quarterly local government finances are published four times a year approximately two months after the end of each quarter.
The data of the statistics are published cumulatively for the investment data on the profit and loss accounts and the cash flow statement from the beginning of the reference year until the end of each quarter. The published balance sheet data reflect the situation on the last day of each quarter. This means that the data for the last quarter of the year correspond to the cumulative data for the entire year and the closing balance sheet.
The data of the statistics are published as preliminary data and may become revised for the last reference year as the respondents specify their data for the previous quarters. The final financial statements data are published in the statistics on local government finances.
Classifications (SIMS 3.2)
Concepts and definitions (SIMS 3.4)
Annual contribution margin
Annual contribution margin indicates the income financing available for investments and the paying of loan instalments after running costs have been covered. It is a key figure when evaluating the adequacy of income financing. The basic assumption is that income financing is adequate if the annual contribution margin is at least equal to the capital depreciations. The depreciations indicate the average annual need for replacement investments. If the annual contribution margin covers depreciations (replacement investments), the municipality does not need to contract debts, realise capital assets or long-term investments or lower its working capital in order to keep the production system of services operational. If the annual contribution margin is negative, income financing does not even cover running costs.
Joint municipal authority
Joint municipal authorities were introduced as a form of intermunicipal cooperation in connection with the revision of the Local Government Act in 1993. They replaced the earlier inter-municipal associations. A joint municipal authority is a form of permanent collaboration of more than one municipality in some field of operation. A joint municipal authority is set up under an agreement (charter) between the local authorities concerned which has been approved by their councils. Joint municipal authorities are independent legal persons and governed by the legislation on local government. A joint municipal authority can acquire rights and enter into commitments and has the right to be heard before authorities. Ultimately, the participating municipalities are responsible for the finances of the joint municipal authority.
Loan stock
Liabilities - (Advances received + Accounts payable + Adjusting entries for liabilities + Other liabilities) from the balance sheet of the municipality/joint municipal board. The loan stock of a municipality or joint municipal board refers to interest-bearing liabilities.
Tax funding
The tax-based financing of municipalities comprises municipal tax revenue and state subsidies to municipalities.
Institutional mandate (SIMS 6)
The compilation of statistics is guided by the Statistics Act. The Statistics Act contains provisions on collection of data, processing of data and the obligation to provide data. Besides the Statistics Act, the General Data Protection Regulation, the Data Protection Act and the Act on the Openness of Government Activities are applied to processing of data when producing statistics.
Statistics Finland compiles statistics in line with the EU’s regulations applicable to statistics, which steer the statistical agencies of all EU Member States.
Further information: Statistical legislation
Legal acts and other agreements (SIMS 6.1)
The compilation of statistics is guided by the general act of the national statistical service, the Statistics Act (280/2004, amend. 361/2013). Only the necessary data that are not available from administrative data sources are collected from data suppliers. Index series are published so that no individual enterprise’s data or development can be deduced from them.
Data sharing (SIMS 6.2)
The data collected for the statistics by municipality and joint municipal authority for the last quarter of each reference year are available in the ‘Financial data reported by municipalities and joint municipal authorities’ database from 2017 onwards.
Source data (SIMS 18.1)
The statistics on quarterly local government finances are based on data collected in the data collection on quarterly local government finances.
Frequency of data collection (SIMS 18.2)
The data are collected quarterly.
Data collection (SIMS 18.3)
The data are collected through direct data collection using an online form.
Data validation (SIMS 18.4)
Quality assurance consists of automated data validation, audits based on expertise, and aggregate-level audits.
Data compilation (SIMS 18.5)
The data are revised in cooperation with the data suppliers on the basis of deviations and other inconsistencies identified. The data does not usually contain missing values or missing data.
User needs (SIMS 12.1)
Overall accuracy (SIMS 13.1)
The statistics on quarterly local government finances measure quarterly developments in certain expenditure, income, investments, loans and receivables of the on-budget entities of municipalities and joint municipal authorities. Municipalities and joint municipal authorities complete the related survey using an online form.
For the statistics, a sample survey is conducted in the first, second and third quarters and a total survey is carried out in the last quarter of the year. Since the data in the statistics are based on a sample in the first, second and third quarters, the data for these quarters involve a sampling error which varies by variable and by quarter. In particular, investment data and some of the smaller balance sheet items involve a more significant error in these quarters compared to other balance sheet items due to the random appearance of these items in the population and their high variability between quarters. The determination of the stratification of the sample design according to the level of operating expenses also means that the data are more reliable for the profit and loss accounts than for the balance sheet.
The data for the last quarter of the year are collected from all municipalities and joint municipal authorities in Mainland Finland. Such data do not therefore involve a sampling error. However, the collection of data for the last quarter takes place before municipalities and joint municipal authorities have completed their final accounts, so the data provided by the respondents are estimates insofar as they concern accounts and elements of financial statements that are not yet completed. The Q4 data concerning the entire reference year will be revised later in the final financial statements released in the statistics on local government finances.
Quality assurance (SIMS 11.1)
Quality management requires comprehensive guidance of activities. The European Statistics Code of Practice forms the basis for the common quality system of the European Statistical System.
The Code of Practice is based on 16 principles that concern statistical authorities' independence, accountability and the quality of the processes and data to be published.
The principles are in line with the Fundamental Principles of Official Statistics approved by the United Nations Statistics Commission and are supplementary to them. The quality criteria of Official Statistics of Finland are compatible with the European Statistics Code of Practice.
Further information:
Quality assessment (SIMS 11.2)
Official Statistics of Finland (OSF) are a comprehensive collection of statistics describing the development and state of society. They comprise nearly 300 sets of statistics on 26 different topics. The producers of Official Statistics of Finland have approved a common quality assurance in which they commit to common quality criteria and quality assurance measures. The quality criteria of Official Statistics of Finland are compatible with the European Statistics Code of Practice. The good practices followed in the statistics are presented in Statistics Finland’s Quality Guidelines for Official Statistics handbook.
Official Statistics of Finland (OSF) are a comprehensive collection of statistics describing the development and state of society. They comprise nearly 300 sets of statistics on 26 different topics. The producers of Official Statistics of Finland have approved a common quality assurance in which they commit to common quality criteria and quality assurance measures. The quality criteria of Official Statistics of Finland are compatible with the European Statistics Code of Practice. The good practices followed in the statistics are presented in Statistics Finland’s Quality Guidelines for Official Statistics handbook.
Timeliness (SIMS 14.1)
The statistics on quarterly local government finances are published four times a year approximately two months after the end of each quarter.
The data of the statistics are compiled cumulatively for the investment data on the profit and loss accounts and the cash flow statement from the beginning of the reference year until the end of each quarter. The balance sheet data collected reflect the situation on the last day of each quarter. This means that the data for the last quarter of the year correspond to the cumulative data for the entire year and the closing balance sheet.
The data of the statistics are published as preliminary data and may become revised for the last reference year as the respondents specify their data for the previous quarters. The final financial statements data are published in the statistics on local government finances.
Punctuality (SIMS 14.2)
There are no delays between the release calendar and the actual release date.
Comparability - geographical (SIMS 15.1)
The data in the statistics are published at the level of Mainland Finland.
Comparability - over time (SIMS 15.2)
The data are comparable at current prices between different years and quarters.
Coherence – cross domain (SIMS 15.3)
The financial variables used in the statistics on quarterly local government finances are mostly the same as those used in the statistics on local government finances.
Coherence - internal (SIMS 15.4)
The data are internally coherent.
Release calendar (SIMS 8.1)
Statistics Finland publishes new statistical data at 8 am on weekdays in its web service. The release times of statistics are given in advance in the release calendar available in the web service. The data become public after they have been updated in the web service.
Further information: Publication principles for statistics at Statistics Finland
Release calendar access (SIMS 8.2)
http://www.stat.fi/til/ktan/tjulk_en.html
User access (SIMS 8.3)
The data are released to all users at the same time. Statistical data may be processed at Statistics Finland and information on them may be given before release only by persons involved in the production of the statistics concerned or who need the data of the statistics concerned in their own work before the data are published.
Further information: Publication principles for statistics
Unless otherwise specifically stated in connection with the product, data or service concerned, Statistics Finland is the producer and copyright owner of the data.
Further information: The terms of use for statistical data
Frequency of dissemination (SIMS 9)
The data of the statistics on quarterly local government finances are published four times a year approximately two months after the end of each quarter.
News release (SIMS 10.1)
Online database (SIMS 10.3)
Confidentiality - policy (SIMS 7.1)
The data protection of data collected for statistical purposes is guaranteed. The compilation of statistics is guided by the Statistics Act. Alongside the Statistics Act, the EU’s General Data Protection Regulation (eur-lex.europa.eu) and the Finnish Data Protection Act (Finlex.fi) are applied to the processing of personal data. Provisions on the confidentiality of data collected for statistical purposes are laid down in the Act on the Openness of Government Activities (Finlex.fi).
The data are processed only by persons who need the data in their work. The use of data is restricted by usage rights. All persons employed by Statistics Finland have signed a pledge of secrecy, where they have obliged to keep secret the data prescribed as confidential by virtue of the Statistics Act or the Act on the Openness of Government Activities.
Further information: Data protection
Confidentiality - data treatment (SIMS 7.2)
The data are protected against unauthorised access in accordance with the data protection rules adopted by Statistics Finland. Unit-level data may only be processed at Statistics Finland by persons whose duties require the use of such data.