We are currently developing the documentation of statistics. At the moment, the content is not necessarily up-to-date in all respects.
Local government financial statement estimates: 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: Local government financial statement estimates
Quality report
Data description (SIMS 3.1)
The statistics have been discontinued. These statistics contain data on key entries in the financial statements of municipalities and joint municipal boards for the concluded fiscal year based on estimates of the financial managements of municipalities and joint municipal boards.
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.
Cash balance
Financial asset securities + cash and bank deposits from the balance sheet of the municipality/joint municipal board.
Financial statement estimate
The financial statement estimate is an estimate collected by Statistics Finland and the Association of Finnish Local and Regional Authorities annually in January from all municipalities and joint municipal boards, and it projects how certain items of the profit and loss account, funds statement and balance sheet will be formed in the financial statement of the past year. The data are collected separately for other municipal/joint municipal board activities and the enterprises following the municipal enterprise model in a way which allows them to be combined into an estimate of the key items in the municipal financial statement. No data by municipality or joint municipal board are published from financial statement estimates.
Joint municipal authority
Joint municipal boards 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 board is a form of permanent collaboration of more than one municipality in some field of operation. A joint municipal board is set up under an agreement (charter) between the local authorities concerned which has been approved by their councils. Joint municipal boards are independent legal persons and governed by the legislation on local government. A joint municipal board 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 board. The most significant joint municipal boards are regional councils, hospital districts and joint municipal boards in the field of public health, in special care districts and education districts. Three-fourths of joint municipal board expenditure is derived from the provision of health care services.
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.
Loans receivable
The investment item "Other loans receivable" + the items short- and long-term loans receivable under current assets from the balance sheet of the municipality/joint municipal board. Bonds are not included in loans receivable in statistics on financial statement estimates.
Municipal enterprise
A way to organise municipal business activities. Municipal enterprises following the so-called municipal enterprise model are independent units in terms of accounting to which the council of the municipality or joint municipal board has granted a more independent budgetary status than that of other municipal functional units. According to the instructions of the Municipal Section of the Accounting Board, municipal enterprises draft separate financial statements containing a profit and loss account, a funds statement and a balance sheet. A municipal enterprise is part of the municipal administration and finances; it is not a separate legal person and it does not have an independent legal obligation to keep books. Only a part of municipal enterprises follow the municipal enterprise model. In statistics on the finances of municipalities and joint municipal boards other municipal business operations (incl. enterprises treated as so called other balance sheet units and business with separate accounts) are treated in the same way as other municipal activities. Income and expenditure from joint-stock or other such business operations are not included in the statistics on the finances of municipalities even if the municipality owns the entire capital stock of the enterprise. The profit and loss account in the municipal budget includes settlements between the municipality and a municipal enterprise (internal interest paid and return on the municipal enterprise's fixed capital) but not the municipal enterprise's "own" profit and loss estimates. Hence a municipal enterprise is not linked to the municipal budget "line by line". According to the budget recommendation of the Association of Finnish Local and Regional Authorities, the municipality must also compile for its budget a profit and loss statement that includes the profit and loss estimates of the municipal enterprise line by line and from which the interest paid on internal loans and the return on fixed capital have been eliminated. The municipality can use this profit and loss estimate in communicating about its budget to the public. The separate financial statement of a municipal enterprise is integrated "line by line" into the municipality's or joint municipal board's financial statement to form an overall financial statement. Since a municipal enterprise is treated differently in the budget than in the financial statement, the figures in the budget and the financial statement may not be comparable. In order to compile statistics on financial statement estimates and budgets, Statistics Finland collects separate data from the municipal enterprises' financial statement estimates and budgets. This enables the combining of the municipalities' and their municipal enterprises' budgets and financial statement estimates into a comprehensive budget/financial statement estimate for the entire municipality, whose figures are comparable with those of the financial statement. In Statistics Finland's budget publications the budgets of municipalities and joint municipal boards are published without the budgets of enterprises following the municipal enterprise model. Combined budgets, or budget data comparable with financial statements, are also published on the Statistics Finland website.
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
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:
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
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
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