Local government finances: documentation of statistics
22.12.2024 valid documentation
Basic data of the statistics
Data description
The statistics on local government finances describe the final accounts data of Finnish municipalities and joint municipal authorities and their groups. The final accounts data consist of the profit and loss accounts, the cash flow statement and the balance sheet. In addition, the statistics describe the operating and investment data broken down by function category based on the financial statements of municipalities and joint municipal authorities.
Statistical population
The target population includes all Finnish municipalities and joint municipal authorities.
Statistical unit
The data are collected at municipal and joint municipal authority level and published in aggregate at the level of region.
Unit of measure
The unit of measure used is EUR 1,000.
Base period
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Reference period
The statistics describe the data for each calendar year. The preliminary data of the statistics are published approximately five months after the end of each reference year. The final data are published approximately nine months after the end of each reference year.
Reference area
The reference area for the statistics is the whole of Finland, Mainland Finland and all of Finland's regions.
Sector coverage
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.
Time coverage
The data of the statistics on local government finances are available from 2015 onwards. The data will not be revised after the final release.
Due to various changes, such as changes in accounting methods, in the system of central government transfers to local government, or in reporting methods, there is no uniform time series. Annual data on the finances of municipalities are available in electronic format for the years 1975 to 1992, 1993 to 1996 and from 1997 onwards. Annual data on the finances of joint municipal authorities are available for 1993 to 1996 and from 1997 onwards.
Due to various changes, such as changes in accounting methods, in the system of central government transfers to local government, or in reporting methods, there is no uniform time series. Annual data on the finances of municipalities are available in electronic format for the years 1975 to 1992, 1993 to 1996 and from 1997 onwards. Annual data on the finances of joint municipal authorities are available for 1993 to 1996 and from 1997 onwards.
Frequency of dissemination
The data of the statistics on local government finances are published twice a year. The preliminary financial statements data are published at the end of May/in early June following the end of each reference year, and the final data are released in early September following the end of each reference year. The data will not be revised after the final release.
Concepts
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.
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.
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.
The loan stock of a municipality or joint municipal board refers to interest-bearing liabilities.
Operating costs, municipalities/joint municipal authorities
Operating costs = operating expenses total + depreciation and devaluation + allocated common expenses
Operating income, municipalities/joint municipal authorities
Operating income= operating income total + increase (decrease) in inventories of finished goods and in work in progress + work performed by the undertaking for its own purpose and capitalised + allocated common income
Operating net costs
Operating net costs = operating expenses - operating income
Tax funding
The tax-based financing of municipalities comprises municipal tax revenue and state subsidies to municipalities.
Accuracy, reliability and timeliness
Overall accuracy
The statistics on local government finances are a total survey of all Finnish municipalities and joint municipal authorities. The source data of the statistics comprise the data reported by municipalities and joint municipal authorities to Statistics Finland regarding their financial statements, consolidated financial statements, operating income and expenditure by function, and investment income and expenditure by function. Data on the separate financial statements of local authority owned companies and data on the activities of education and cultural services of municipalities and joint municipal authorities are also collected for the statistics.
Statistics Finland collects source data for the statistics from municipalities and joint municipal authorities using an online form.
Data on municipalities’ and joint municipal authorities’ profit and loss accounts, cash flow statements, balance sheets and consolidated financial statements, as well as on the financial statements of local authority owned companies are collected in accordance with the binding model financial statements issued by the local government sub-committee of the Finnish Accounting Board to municipalities and joint municipal authorities. The reliability of the data is good.
The preliminary data on the profit and loss accounts, financial statements, balance sheets and consolidated financial statements of municipalities and joint municipal authorities are published in May/in early June of the year following the reference year. Usually preliminary data differ only slightly from the final data published at the end of the year.
Data on the breakdown of operating income and expenditure of municipalities and joint municipal authorities by function are also collected for the statistics. Function-specific data are collected by type of income and expenditure. The income and expenditure classification used corresponds to the classification used in municipal accounts, which is based on the Accounting Act and the JHS account catalogue. In this respect, the reliability of the data is good. The classification of functions is based on Statistics Finland’s guidance. Because the classification of functions used by municipalities and joint municipal authorities in their accounts often depends on the organisational structure, for the compilation of the statistics, the data suppliers have to combine and split cost and profit centres in their accounts. It is often impossible to do this in such a way that the result would fully comply with the guidelines on the classification of functions. Therefore, the reliability of the data broken down by function is weaker than that of the data broken down by cost and profit centre.
Data on investment income and expenditure of municipalities and joint municipal authorities are collected by type of commodity using a classification of functions similar to that used for function-specific operating income and expenditure. The classification according to the type of commodity is compatible with the balance sheet and financial statements guidelines of the local government sub-committee of the Finnish Accounting Board. In this respect, the reliability of the data is good. However, the allocation of investment income and expenditure to function categories can often be challenging, especially when the investment concerns several function categories.
Statistics Finland collects source data for the statistics from municipalities and joint municipal authorities using an online form.
Data on municipalities’ and joint municipal authorities’ profit and loss accounts, cash flow statements, balance sheets and consolidated financial statements, as well as on the financial statements of local authority owned companies are collected in accordance with the binding model financial statements issued by the local government sub-committee of the Finnish Accounting Board to municipalities and joint municipal authorities. The reliability of the data is good.
The preliminary data on the profit and loss accounts, financial statements, balance sheets and consolidated financial statements of municipalities and joint municipal authorities are published in May/in early June of the year following the reference year. Usually preliminary data differ only slightly from the final data published at the end of the year.
Data on the breakdown of operating income and expenditure of municipalities and joint municipal authorities by function are also collected for the statistics. Function-specific data are collected by type of income and expenditure. The income and expenditure classification used corresponds to the classification used in municipal accounts, which is based on the Accounting Act and the JHS account catalogue. In this respect, the reliability of the data is good. The classification of functions is based on Statistics Finland’s guidance. Because the classification of functions used by municipalities and joint municipal authorities in their accounts often depends on the organisational structure, for the compilation of the statistics, the data suppliers have to combine and split cost and profit centres in their accounts. It is often impossible to do this in such a way that the result would fully comply with the guidelines on the classification of functions. Therefore, the reliability of the data broken down by function is weaker than that of the data broken down by cost and profit centre.
Data on investment income and expenditure of municipalities and joint municipal authorities are collected by type of commodity using a classification of functions similar to that used for function-specific operating income and expenditure. The classification according to the type of commodity is compatible with the balance sheet and financial statements guidelines of the local government sub-committee of the Finnish Accounting Board. In this respect, the reliability of the data is good. However, the allocation of investment income and expenditure to function categories can often be challenging, especially when the investment concerns several function categories.
Timeliness
The statistical period is the calendar year. The data on the balance sheets of municipalities and joint municipal authorities reflect the situation on the last day of the reference year.
The preliminary data on the financial statements and consolidated financial statements of municipalities and joint municipal authorities, as well as on the financial statements of local authority owned companies are released at the latest in May/in early June of the year following the reference year. The final data are published in September of the year following the reference year.
The preliminary data on the financial statements and consolidated financial statements of municipalities and joint municipal authorities, as well as on the financial statements of local authority owned companies are released at the latest in May/in early June of the year following the reference year. The final data are published in September of the year following the reference year.
Punctuality
There are no delays between the release calendar and the actual release date.
Comparability
Comparability - geographical
The data of the statistics are comparable between the different geographical areas of Finland.
Comparability - over time
The data are comparable at current prices between different years.
Coherence - cross domain
The financial variables used in the statistics on local government finances are mostly the same as those used in the quarterly statistics on local government finances.
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Coherence - internal
The data are internally coherent.
Source data and data collections
Source data
The statistics on local government finances are based on data collected in the context of the collection of data on local government finances.
Data collection
The data are collected through direct data collection using an online form.
Frequency of data collection
The data for the statistics are collected annually.
Methods
Data compilation
The data are revised in cooperation with the data suppliers on the basis of deviations and other inconsistencies identified.
Data validation
Quality assurance consists of automated data validation, audits based on expertise, and aggregate-level audits.
Principles and outlines
Contact organisation
Statistics Finland
Contact organisation unit
Economic Statistics
Legal acts and other agreements
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.
In addition to the Statistics Act (280/2004, amend. 361/2013), some of the data are collected on the basis of Section 58 of the Act on the Financing of Education and Culture (1705/2009) on behalf of the Ministry of Education and Culture and the Finnish National Agency for Education.
In addition to the Statistics Act (280/2004, amend. 361/2013), some of the data are collected on the basis of Section 58 of the Act on the Financing of Education and Culture (1705/2009) on behalf of the Ministry of Education and Culture and the Finnish National Agency for Education.
Confidentiality - policy
The data protection of data collected for statistical purposes is absolutely guaranteed in accordance with the Statistics Act (280/2004), the Personal Data Act (532/1999) and the Act on the Openness of Government Activities (621/1999), as well as the requirements of the EU’s General Data Protection Regulation (2016/679). The data materials are protected at all stages of processing with the necessary physical and technical solutions. Statistics Finland has compiled detailed directions and instructions for confidential processing of the data. Employees have access only to the data essential for their duties. The premises where unit-level data are processed are not accessible to outsiders. Members of the personnel have signed a pledge of secrecy upon entering the service. Wilful breaching of data protection is punishable.
Confidentiality - data treatment
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.
Release policy
Statistics Finland’s release calendar lists in advance all the statistical data and publications to be released over the year. Statistical releases can be found under statistics-specific releases. Statistical data are released on the Internet at 8 am, unless otherwise indicated. The calendar is updated on weekdays. Statistics Finland’s release calendar for the coming year is published every year in December.
Data sharing
The data collected for the statistics are available in the ‘Financial data reported by municipalities and joint municipal authorities’ database.
Accessibility and clarity
The database tables of the statistics on local government finances are published in Statistics Finland’s StatFin database.
Quality assessment
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.
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.
Quality assurance
When compiling statistics, Statistics Finland observes the European Statistics Code of Practice (CoP) and the Quality Assurance Framework (QAF) based on them. The Code of Practice concerns the independence and accountability of statistical authorities and the quality of processes and data to be published. The principles are in line with the Fundamental Principles of Official Statistics approved by the United Nations Statistics Division and are supplementary to them. The quality criteria of Official Statistics of Finland are also compatible with the European Statistics Code of Practice. The principles are also compatible with those of the European Foundation for Quality Management (EFQM).
More information about this is available on Statistics Finland's quality management pages.
Every year Statistics Finland conducts statistical auditing that helps to ensure the quality of statistics.
More information about this is available on Statistics Finland's quality management pages.
Every year Statistics Finland conducts statistical auditing that helps to ensure the quality of statistics.
User access
Data are released to all users at the same time.
The disclosure of data is governed by Section 12 of the Statistics Act (280/2004, amend. 361/2013), according to which data describing the activities and public service production of central and local government authorities that are public based on other legislation are also public as statistical data.
The disclosure of data is governed by Section 12 of the Statistics Act (280/2004, amend. 361/2013), according to which data describing the activities and public service production of central and local government authorities that are public based on other legislation are also public as statistical data.