Republic of Mozambique: Detailed Assessment Using the Data Quality Assessment Framework (DQAF)
Author: International Monetary Fund
Publication Date:
13 Mar 2003
eISBN:
9781451827088
Language:
English
Keywords:
ISCR; CR; BOM balance sheet data; information; NIS plan; monetary statistics; balance sheet; central government; flow of information; terms and conditions; Monetary statistics; Government finance statistics; Balance of payments statistics; Southern Africa
Download PDF (660.3 KB)

This report on the Observance of Standards and Codes data module provides a review of Mozambique’s data dissemination practices against the IMF’s General Data Dissemination System (GDDS) by in-depth assessment of the quality of the national accounts, consumer price index, government finance, monetary, and balance-of-payments statistics. The assessment reveals that with the exception of monetary statistics, there are limitations in the coverage of all core comprehensive frameworks and indicators recommended in the GDDS. With respect to periodicity and timeliness, most GDDS recommendations have been met.

Abstract

This report on the Observance of Standards and Codes data module provides a review of Mozambique’s data dissemination practices against the IMF’s General Data Dissemination System (GDDS) by in-depth assessment of the quality of the national accounts, consumer price index, government finance, monetary, and balance-of-payments statistics. The assessment reveals that with the exception of monetary statistics, there are limitations in the coverage of all core comprehensive frameworks and indicators recommended in the GDDS. With respect to periodicity and timeliness, most GDDS recommendations have been met.

Detailed Assessment Using the Data Quality Assessment Framework (DQAF)

The following detailed information on indicators of statistical practices in the areas of the national accounts, price, government finance, money and financial, and balance of payments statistics was gathered from publicly available documents and information provided by the Mozambican officials. This information, which is organized along the lines of the generic DQAF (see Appendix II), was used to prepare the summary assessment of data quality elements, based on a four-part scale of observance, shown in Mozambique’s Report on the Observance on the Standards and Codes (ROSC)—Data Module.

I. National Accounts Statistics

0. Prerequisites of quality

0.1 Legal and institutional environment

0.1.1 The responsibility for collecting, processing, and disseminating statistics is clearly specified

The Law on the National Statistical System (Law 7/96 of July, 1996) indicates that the National Institute of Statistics (NIS) is responsible for the compilation and dissemination of national accounts statistics. The NIS is the executive body of the National Statistical System (NSS). The NSS Strategic Plan contains the vision, mission and objectives of the system for the next five years. According to Article 8 of the Rules of Procedure (1996), the Directorate of National Accounts and Global Indicators of the NIS is directly in charge of the collection, processing, compilation, and dissemination of the national accounts (Article 14). The working arrangements are consistent with this assignment of responsibility.

The Bank of Mozambique (BOM) and the Ministry of Planning and Finance (MPF) collaborate in the basic compilation of the administrative records for the national accounts. Article 18 of Law 7/96 and Article 8 of the Decree-law 34/98 provide the legal mandate to ensure exchange of data and consistency of methods and results among the agencies.

0.1.2 Data sharing and coordination among data producing agencies are adequate

The current legal arrangements and procedures for the flow of source data between agencies with primary responsibility for compiling statistics need to be made more effective, specially between the Customs Directorate and the National Accounts Department (NAD) of the NIS.

Regular working meetings with other data producing public agencies are conducted to foster a proper understanding of data requirements. These meetings also have the purpose of avoiding duplication of work.

0.1.3 Respondents’ data are to be kept confidential and used for statistical purposes only

Article 14 of Law 7/96 states that individual responses are to be treated as confidential and shall not be disclosed or used for purposes other than statistics, unless disclosure is agreed to in writing by the respondent.

In surveys and other statistical inquiries, respondents are informed of their rights and obligations with regard to the provision of information. They are also informed that the information provided will be used only for statistical purposes.

Article 28 of Law 7/96 establishes penalties for disclosure of confidential data. Aggregation rules have been developed to ensure that residual disclosure does not occur when aggregated surveys or other information are disseminated. Normally, data compiled for dissemination are reviewed for possible indirect disclosure of confidential data. Actions are taken to secure the premises of the NIS and its computer systems to prevent unauthorized access to individual data. The NAD takes appropriate measures for keeping the confidentiality of stored data and in the process of destruction of records.

0.1.4 Statistical reporting is ensured through a legal mandate and/or measures to encourage response

There are legal provisions that authorize the NIS to request information from private entities and to impose fines in situations of noncompliance (Articles 6 and 27 of Law 7/96). When the timeliness and/or the completeness of the answers are not adequate, the NAD contacts the respondents and informs them of the importance of responding. This form of moral suasion has had variable success.

There are no conflicts between the legal authority to produce statistics and other laws.

The NIS provides assistance to respondents in completing and submitting the forms. Respondents are given the name and telephone number of a contact person. To encourage responses, the surveys and the questionnaires are publicized with an explanation of the statistical objectives of the survey.

0.2 Resources

0.2.1 Staff, financial, and computing resources are commensurate with statistical programs

The NAD consists of six technical experts. Despite the fact that statistical information processing takes place in another unit of the NIS, human resources are not adequate for compiling the national accounts according to the SNA 93. Of the six technical experts, only the chief of the department has an academic degree in economics; the others are university graduates in agronomy, mathematics, and international relations. Due to unattractive salaries, it is very difficult to recruit qualified staff.

The lack of trained resources has been compensated with technical assistance from the United Nations Statistics Division (UNSD) during recent years (1996 to 2001). UNSD has provided formal and on-the-job training in national accounts methodology and compilation methods.

Overall, sufficient resources are allocated and efforts are made by the Information and Systems Department of the NIS to use the existing computing technology at full capacity for compiling and disseminating national accounts. Spreadsheet programs (Excel) are used for compiling and analyzing the statistical series. However, computer hardware is out-dated and hampers efficient processing of data and management of the databases.

Despite the financial support of the UNDP (1996–2001) and the Program of Scandinavian Technical Assistance (2002–2007), the overall financial resources are insufficient to carry out the basic tasks of processing and compiling national accounts. At present, external resources finance almost two thirds of the total budget allocated the compilation of national accounts.

The Strategic Plan of the National Statistical System 2003–2007 allocates budgetary resources for future statistical development based on the following priorities: (i) the household budget survey (2002–2003), (ii) the business census, and (iii) the population census (2007). Also, there are plans to initiate the compilation of quarterly national accounts in the near future.

0.2.2 Measures to ensure efficient use of resources are implemented

Managers create the conditions to promote a vision and direction of the NIS that is shared with the staff. To improve the efficiency, consistency is promoted, especially between concepts and methodologies across the different units within the NIS. Data compilation procedures are managed to minimize processing errors in coding, editing, and tabulation. There is no internal process to measure resources used to compile the statistical series and to compare the resource usage of the statistical program vis-à-vis other statistical programs. Non-periodic reviews of working processes are undertaken to ensure that they are improved upon. Also, sporadic reviews of budgeting procedures are undertaken to promote the most efficient employment of scarce resources in addressing major data problems or meeting new data needs. The NIS seeks outside expert assistance to evaluate methodologies and compilation methods.

0.3 Quality awareness

0.3.1 Processes are in place to focus on quality

Supported by the Law 7/96, the managers are sensitive to all dimensions of data quality: integrity, methodological soundness, accuracy and reliability, serviceability, and accessibility. The NIS has an organizational infrastructure that supports data quality and is aware of the economies of scale and interrelationships between data sets. However, there are very few activities that focus on data quality.

0.3.2 Processes are in place to monitor the quality of the collection, processing, and dissemination of statistics

Some actions are undertaken to identify problems at the various stages of data processing, such as by using statistical filters, processing through inter-temporal comparison, and disseminating revised data. The National Council of Statistics provides guidance to the NIS on data quality issues. However, there are no systematic procedures to receive feedback on the quality of the national accounts statistics and on strategies for improving data production. There are no users’ surveys or other systematic processes to obtain feedback on national accounts quality issues.

0.3.3 Processes are in place to deal with quality considerations, including trade-offs within quality, and to guide planning for existing and emerging needs

There is recognition by the management of the NIS of the trade-offs among the dimensions of quality, with an emphasis on accuracy. Improvements of data quality are taken into account in planning future work programs.

There are some meetings convened with policy makers and other data users to review existing statistical series and to identify emerging data requirements. Users’ feedback on the statistical series is not encouraged.

1. Integrity

1.1 Professionalism

1.1.1 Statistics are compiled on an impartial basis

Section 2 of Law 7/96 establishes the principles of the statistical activities, and calls for technical autonomy (Article 8), impartiality (Article 9), and reliability (Article 11) in the compilation and dissemination of official statistics. The Law mandates that, in performing its statistical functions, the NIS has to produce objective and scientifically-based statistics. The NIS is not required to submit the NA to any government authority for approval prior to its publication.

Within the existing budgetary constraints, professional competency plays a key role in the recruitment and promotion of staff. Professionalism is encouraged by the publication of methodological papers and by encouraging participation in lectures, conferences, and meetings with other professional groups.

1.1.2 Choices of sources and statistical techniques are based solely on statistical considerations

The choice of source data and statistical techniques is based solely on statistical considerations.

1.1.3 The appropriate statistical entity is entitled to comment on erroneous interpretation and misuse of statistics

There have been no cases identified of erroneous interpretations or misuse of the statistical series in the media or in other fora. Given the reduced number of “main users,” 1 the NIS seeks to prevent misinterpretation or misuse of statistics by providing explanatory materials through personal contacts.

1.2 Transparency

1.2.1 The terms and conditions under which statistics are collected, processed, and disseminated are available to the public

Law 7/96 is disseminated on the NIS website. Statistical publications identify where more information about the NIS and its products can be found.

1.2.2 Internal governmental access to statistics prior to their release is publicly identified

There is no internal government access to statistics of national accounts prior to their release to the public.

1.2.3 Products of statistical agencies/units are clearly identified as such

National accounts released to the public are clearly identified, by name and logo, as a NIS product. In the case of joint publications, the part attributable to NIS is identified. Normally, NIS requests attribution when its statistics are used or reproduced.

1.2.4 Advance notice is given of major changes in methodology, source data, and statistical techniques

Advance notice of major changes in methodology, sources, and statistical techniques is not given to the public. However, the “main users” are informed by direct channels.

1.3 Ethical standards

1.3.1 Guide for staff behavior are in place and are well known to the staff

Ethical guidelines for the staff are contained in Law 7/96, Article 28, and the Code of Conduct for Civil Servants. These guidelines cover potential conflict of interest situations, secrecy, and confidentiality. New staff are made aware of these guidelines when they join the NIS.

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 October 2000 issue of the National Accounts Yearbook 1999 introduced a time series for 1991–1999 of main aggregates, both at current and constant prices with 1996 as the base year. The SNA 93 is followed as closely as possible as a general framework for compiling national accounts statistics.

2.2 Scope

2.2.1 The scope is broadly consistent with internationally accepted standards, guidelines, or good practices

The SNA 93 tables and accounts that the ISWGNA 2 established as minimum requirement are compiled on a regular basis: (i) annual value-added and GDP at current and constant prices by activity; (ii) annual expenditures of GDP at current and constant prices; (iii) annual value-added components at current prices by activity; (iv) sequence of accounts for the total economy up to the category “net Lending(+)/net Borrowing(-)” with an annual frequency; (v) annual rest-of-the-world accounts up to net lending. From the 1993 SNA tables and accounts that the ISWGNA recommended, only the annual supply and use tables are compiled on a regular basis. This is done for the present year and initially applied to the accounts for 1996–97. The NIS has recently started working in the compilation of quarterly GDP estimates.

The delimitation of the constituent units of the economy is broadly in accordance with the SNA 93. In particular, the following units are included as part of the economy of Mozambique: territorial enclaves (such as embassies in the rest of the world), free zones/bonded warehouses/factories operated by offshore enterprises under customs control, and those who work part of the year in another country are within the scope of the national accounts estimates. However, source data do not always provide the complete coverage of the remuneration of employment from abroad.

The production boundary is defined, to some extent, according to the SNA 93: own-account production of all goods for own final consumption, output of goods for own-account fixed capital formation, and mineral exploration are in the scope for output measurement. Currently, Mozambique does not have any significant research and development on own-account, production of entertainment, literary or artistic originals, or production of computer software.

Except for valuables and historical monuments, the tangible assets boundary is in accordance with SNA 93. These include defense-related assets that could be used for civilian purposes, and agricultural work-in-progress. The intangible assets are not considered within the boundary of the assets.

2.3 Classification/sectorization

2.3.1 Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices

The SNA 93 is followed to classify institutional units3, transactions, and other flows. ISIC, Rev. 34 is used to classify the principal economic activity (industry) of establishments and enterprises, with desegregation of some of them by divisions or groups. The commodities are classified according to the CPC5 and the COICOP.6 The COFOG7 has recently been adopted in government finance statistics and will be incorporated in the national accounts compilation in the near future.

2.4 Basis for recording

2.4.1 Market prices are used to value flows and stocks

Market output is valued at indirectly estimated producer prices. The valuation is not made at basic prices. Output for own-use is valued at equivalent market prices. Intermediate and final consumption are valued at purchaser prices. Corrections are made when transfer prices are detected. Information on insurance and freight is available at a sufficient level of detail for imports to be transformed from c.i.f. to f.o.b. values. Total imports and exports are valued on an f.o.b. basis. Transactions in foreign currency are converted using the mid-point exchange rate prevailing in the market at the moment the transactions take place. Starting with the data for 2000, value-added taxes are included in the valuation of intermediate consumption, excluding the deductible portion of the taxes.

2.4.2 Recording is done on an accrual basis

Transactions and flows are recorded on an accrual basis, with the exception of government-related transactions, which are recorded on a cash basis. Work-in-progress is recorded in the period it is produced.

2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices

Transactions between establishments within the same enterprise are recorded on a gross basis.

3. Accuracy and reliability

3.1 Source data

3.1.1 Source data are collected from comprehensive data collection programs that take into account country-specific conditions

Despite the significant progress made in recent years, there are still gaps of information that undermine the normal process of compiling the national accounts. The NIS has a fragmented and outdated Enterprise and Establishment Register (business register). The quality of sample frames for conducting census/surveys of statistical units is affected by a noncomprehensive and outdated business register.

Annual business statistics are collected through the Enterprises Yearly Survey (EYS). Its coverage of total economic activities in terms of value-added is poor (less than 60 percent). The EYS coverage of activities in terms of value-added within the most important industrial groups (ISIC one-digit level) is also poor. Sample design and estimation procedures do not purport to represent the survey universe. Data collected are not sufficiently detailed to derive reliable national accounts aggregates, particularly output, intermediate consumption, fixed capital formation, and change in inventories. Moreover, there are no suitable sources to measure illegal output sold to willing buyers.

Urban and Rural Household Income and Consumption Expenditure Surveys (HICES) are conducted every five years (the latest in 1996). Coverage is comprehensive and represents all geographic areas and all income groups. Sample design and estimation procedures adequately represent the universe, adjusted by the data from the Population Census for 1997 8 Data collected are detailed and include, in particular, those on purchases of consumption and durable goods, production for own-consumption, purchases of valuables, and own-account fixed capital formation.

Government finance statistics are available from the MPF to measure output, intermediate consumption, fixed capital formation, final consumption expenditure of government services. The data include defense-related expenditures and capital stocks. Extrabudgetary resources are not included. For external transactions, the NIS’s foreign trade statistics database and the BOP compiled by the BOM are used.

The price statistics program include the compilation of a monthly consumer price index elaborated at NIS, agriculture prices processed by the Ministry of Agriculture (MOA), and export and import price indices provided by Customs. Mozambique does not compile producer price indices.

An agricultural survey was conducted in 1996 and another is scheduled for 2003. A census will be conducted every five years by the MOA and the NIS.

Ad-hoc surveys are not conducted to fill data gaps. Shortcomings in data sources necessitate the use of dispersed information, normally more related to the commodities than to economic activities.

3.1.2 Source data reasonably approximate the definitions, scope, classifications, valuation, and time of recording required

Due to the use of information only distantly related to national accounts, definitions, scope, and classifications of national accounts estimates do not fully follow international practices. Compilers are aware of these problems and take appropriate actions to reduce these differences.

There are also problems with the time of recording in some source data. The use of cash accounting for central government operations is not consistent with the principle of accrual accounting for national accounts.

3.1.3 Source data are timely

The consumer price indices, detailed international trade, and balance of payments statistics are obtained on a timely basis. The NIS’s survey-based source data (EYS) are characterized by frequent delays due to low response rates, poor quality of reporting, or data processing difficulties. There is a considerable delay in the availability of export and import price indices. Most of the delays are due to the time required by Customs to review inconsistencies in the reported data. Some delay is also experienced in government finance data and prices of agricultural products.

The national accounts compilers do not have appropriate procedures for the timely receipt of source data.

3.2 Statistical techniques

3.2.1 Data compilation employs sound statistical techniques

Production approach

Estimates of output and intermediate consumption are compiled for 26 activities at the three-digit ISIC level. In the estimate of total value added, the use of fixed ratios that are more than five years is excessive. The estimates of value added for the most important industrial groups are calculated using ratios, most of which are more than five years old.

Appropriate techniques are usually used to address specific issues of GDP compilation. For example, in the case of owner-occupied dwellings, the output is valued as the estimated rentals that tenants would pay for similar accommodation. Growing crops and standing timber are treated as work-in-progress. However, stocks of fish, livestock reared for purposes of food, large construction projects, and output of large equipment are not treated as work-in-progress. The perpetual inventory method is used as the conceptual basis for estimating consumption of fixed capital, in line with the 1993 SNA.

Constant price data are calculated as follows:

  • The double deflation method is used only for a few groups of commodities, where the value of intermediate consumption and prices are available (e.g., wheat and cassava). In the other activities, production indices are used to extrapolate value added (e.g., the intermediate demand follows the tendency of the supply in volume and prices).

  • Volume measures of taxes/subsidies on products are estimated by applying base year tax rates to the volume of transactions subject to a specific tax/subsidy.

  • Output volume of trade margins are estimated by applying the base year margin rates to the corresponding volume of sales.

The GDP volume change is not measured using annual chain indices. The base year will move from 1996 to 2003 by mid-2004, when the results of the ongoing 2002-2003 HICES become available.

Expenditure approach

The source data for GDP estimates by expenditure components include government accounts, external trade statistics, the 1996 HICES, and the BOP statistics compiled by the BOM. Estimation techniques are as follows:

  • Household final consumption expenditure for the benchmark year is estimated on the basis of data from HICES and balance of payments data. The annual revised estimates are essentially based on commodity flow technique. The anticipated version of household final consumption expenditure is estimated as a residual and is checked against household disposable income (purchasing-power index).

  • In estimating government final consumption expenditure, accounting records of central government are used.

  • Estimates of gross fixed capital formation are also based on the commodity flow technique after adjustment for trade margins and taxes using ratios.

  • Changes in inventories are estimated independently only for some principal agricultural products.

  • Exports and imports of goods and nonfinancial services are derived from the BOP data, which are compiled by the BOM, and from the NIS’s custom-based foreign trade statistics.

Expenditure estimates are compiled in accordance with international standards. Particularly, household final consumption expenditure is compiled at least at the two-digit level of the COICOP. Government final consumption expenditure is compiled at least at the one-digit level of the classification. Gross fixed capital formation and changes in inventories are compiled first by activities, followed by type of assets, and by institutional agent. In the total estimates of each of the main expenditure categories, the use of fixed ratios that are more than five years old could be regarded as excessive.

Appropriate techniques are used to address specific issues of GDP compilation. Expenses of residents abroad are included in household final consumption expenditure and in imports. Expenses of nonresidents in the domestic economy are excluded from household final consumption expenditure and included in exports. However, expenditures on items that are considered stores of wealth (such as jewelry, works of art) are not included in the estimates of valuables, and government final expenditure is not necessarily exclusive of incidental sales.

Adequate procedures are followed to compile volume measures of the expenditure components of GDP. Dedicated price indices are used to deflate GDP components at least at the one-digit level of the corresponding classifications. The household consumption implicit deflator is consistent with the CPI in that there is a relatively close correlation between them. Government final consumption expenditure is derived by deflating cost components of output for final use.

3.2.2 Other statistical procedures (e.g., data adjustments and transformations, and statistical analysis) employ sound statistical techniques

There are well established procedures to adjust data sources to improve the coverage, definitions, classifications, and valuation conforming with the international guidelines. Statistical procedures used to incorporate unrecorded activities, such as informal activities, follow a detailed, case-by-case, approach using specific sources that are closely related to the estimated variables and pertinent to the reference period. However, hidden and illegal activities are not incorporated.

3.3 Assessment and validation of source data

3.3.1 Source data—including censuses, sample surveys and administrative records—are routinely assessed, e.g., for coverage, sample error, response error, and non sampling error; the results of the assessments are monitored and made available to guide planning

Accuracy of the data from HICES surveys is routinely assessed. Information is available on non-sampling errors, such as over/under coverage, misclassification, measurement problems, and non-response. Information is also available on imputation methods for non-response in the surveys and percentages of source data imputed. Normally, high-value transactions are confirmed with respondents.

Accuracy of budgetary data, international trade, price statistics, and other secondary sources used to compile national accounts statistics is also routinely assessed.

3.4 Assessment and validation of intermediate data and statistical outputs

3.4.1 Main intermediate data are validated against other information, where applicable

Intermediate data on the production of major sectors (e.g., agriculture and fishing) are, to some extent, validated against related indicators. Independent information for validation procedures is very limited.

3.4.2 Statistical discrepancies in intermediate data are assessed and investigated

There are systematic procedures to routinely identify potential discrepancies in intermediate data. Any discrepancies are assessed and investigated.

3.4.3 Statistical discrepancies and other potential indicators of problems in statistical outputs are investigated

The statistical discrepancies between components of GDP by activity and GDP by expenditure are investigated. They are usually small and due mainly to changes in inventories. Supply and use tables are used to investigate discrepancies and make the statistical outputs consistent. Other indicators of problems (validation against unofficial estimates, bias in the GDP estimate) are not investigated.

3.5 Revision studies

3.5.1 Studies and analyses of revisions are carried out routinely and used to inform statistical processes

The direction and magnitude of revisions between preliminary and final data are investigated. The sources of errors, omissions, and fluctuations in the data are also investigated. The results of the investigations are used to inform compilation processes.

4. Serviceability

4.1 Relevance

4.1.1 The relevance and practical utility of existing statistics in meeting users’ needs are monitored

An informal process of consultation takes place occasionally with policy ministries and, from time to time, with a users advisory group that includes representatives from the private sector and academia. There is not a sustained initiative to evaluate whether the program meets the needs of users of the statistical series.

Participation of NIS staff in international statistical meetings and seminars organized by regional and international organizations is limited.

4.2 Timeliness and periodicity

4.2.1 Timeliness follows dissemination standards

The preliminary version of the annual GDP estimates is disseminated within six months and, therefore, meets the timeliness recommended by the General Data Dissemination System (GDDS). The final version is disseminated only 24 months after the end of the reference year.

4.2.2 Periodicity follows dissemination standards

GDP estimates are compiled only on an annual basis, as recommended by the GDDS. Quarterly GDP data are not compiled, although NIS has started work towards this objective.

4.3 Consistency

4.3.1 Statistics are consistent within the dataset

Sets of consistent GDP estimates by production and expenditure approaches are derived. Similar and consistent growth rates are obtained from the series of GDP by activity and GDP by expenditure categories. GDP estimates at current prices, volume measures, and (implicit) deflators are consistent within the “value = volume x price” framework. Estimates from the production approach are considered better, and some expenditure components are derived as a residual.

4.3.2 Statistics are consistent or reconcilable over a reasonable period of time

Consistent time series are available for an adequate period of time (1991–2001). When changes in source data, methodology, and statistical techniques are introduced, historical series are reconstructed as far back as reasonably possible, through splicing procedures at the more disaggregated level.

However, there are no detailed methodological notes that identify and explain the main breaks and discontinuities in time series, their causes, nor are the adjustments made to maintain consistency over time.

4.3.3 Statistics are consistent or reconcilable with those obtained through other data sources and/or statistical frameworks

The national accounts statistics are not fully consistent with balance of payments, government finance, and other statistical frameworks. There are inconsistencies between the coverage of some of the indicators in the external account of the rest of the world and those of the current account of the balance of payments. There are reclassifications and other corrections due to customs (imputations for electricity, among others). In relation to the government accounts, there are also discrepancies due to reclassifications.

4.4 Revision policy and practice

4.4.1 Revisions follow a regular, well-established, and transparent schedule

The practice of revisions of provisional estimates, benchmarks, base years, and methodology, follows a predictable pattern. However, this policy is not known to users. Adequate documentation of revisions is not included in the publication of the statistical series or in the database accessible to users.

New source data are incorporated as early as possible, but not through a regular, well-established, and transparent schedule. The revision schedule does not take into account the timing for preparing important official economic policy documents.

4.4.2 Preliminary data are clearly identified

Users are alerted that the initially published data are preliminary and subject to revision. The revised data are disseminated with the same level of detail as previously published for the data being revised.

4.4.3 Studies and analyses of revisions are made public

In the publication of the statistical series and in the database accessible to users, the revisions are not sufficiently measured, assessed, or explained. Analysis of preliminary versus revised data are not publicized.

5. Accessibility

5.1 Data accessibility

5.1.1 Statistics are presented in a way that facilitates proper interpretation and meaningful comparisons (layout and clarity of text, tables, and charts)

Data published in the 2000 National Accounts Yearbook are presented in a manner that facilitates proper interpretation and meaningful comparisons. Charts and tables are disseminated with the data to facilitate the analysis. These datasets are published with various levels of detail. Estimates are also disseminated at a detailed level. However, no analysis of current-period developments is included in the publications or in the database accessible to users.

5.1.2 Dissemination media and formats are adequate

Data are first released in a summarized form, which is followed by the release of a more comprehensive publication. Recently released data and longer time series can be accessed through an electronic database maintained by the NIS.

5.1.3 Statistics are released on a pre-announced schedule

No pre-announced schedule for the release of data is available to the public. However, the statistics are released according to an internal schedule that is known to the “main users./”

5.1.4 Statistics are made available to all users at the same time

The statistical series are released simultaneously to all interested users.

5.1.5 Nonpublished (but nonconfidential) subaggregates are made available upon request

Unpublished (but nonconfidential) data are provided upon request, free of charge. However, the availability of non-published statistics and the terms and conditions under which they are made available are not publicized.

5.2 Metadata accessibility

5.2.1 Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques is available, and differences from internationally accepted standards, guidelines, or good practices are annotated

Comprehensive metadata, including information on concepts, definitions, classification and other methodology, data sources, and statistical techniques are not available to the public. The NIS plans to develop metadata in the short term, in the context of Mozambique’s participation in the GDDS.

5.2.2 Levels of detail are adapted to the needs of the intended audience

The limited metadata available to the public do not meet the needs of the users.

5.3 Assistance to users

5.3.1 Contact person for each subject field is publicized

Prompt and knowledgeable service and support is available to the users. All statistical releases identify specific individuals who may be contacted by mail, telephone, facsimile, or e-mail. However, assistance to users is not monitored through periodic user surveys.

5.3.2 Catalogues of publications, documents, and other services, including information on any charges, are widely available

A catalogue of publications, documents, and other services to users is not widely available to the public. The prices of the statistical products and services are publicized and assistance is provided in placing orders.

Table 1.

Mozambique—Data Quality Assessment Framework: Summary of Results for National Accounts

(Compiling Agency: National Institute of Statistics)

article image
article image

II. Consumer Price Index

0. Prerequisites of quality

0.1 Legal and institutional environment

0.1.1 The responsibility for collecting, processing, and disseminating statistics is clearly specified

The Law on the National Statistical System (Law 7/96 of July 1996) indicates that the National Statistical Institute (NIS) is responsible for collecting, processing, and disseminating the Consumer Price Index (CPI). The NIS is the executive body of the National Statistical System (NSS). The NSS Strategic Plan contains the vision, mission, and objectives of the System for the next five years. The NIS has its headquarters in Maputo and 11 regional branches in the main cities.

0.1.2 Data sharing and coordination among data producing agencies are adequate

Article 13 of Law 7/96 stipulates that all government agencies are required to cooperate with the NIS in the collection, processing, and validation of statistical data. Institutional arrangements between the three main organizations involved in the production of statistics, namely the Ministry of Planning and Finance (MPF), the Bank of Mozambique (BOM), and the NIS, are adequate. Monthly meetings are conducted among these statistical agencies to discuss issues relating to the compilation of the CPI. The coordination of statistical activities in all ministries and government departments is a responsibility of the President of the NIS.

0.1.3 Respondents’ data are to be kept confidential and used only for statistical purposes

Articles 7 and 14 of Law 7/96 refer to the confidentiality of the individual respondent’s data and the procedures for preventing disclosure of individual data. In particular, Article 14 states that the NIS is not allowed to disclose individual statistical information to any official or private authority, or reveal or make public such information. This Article also states that data should be used only for statistical purposes. The public does not have access to individual data. Special aggregation rules have been developed so that indirect disclosure of individual data does not occur when aggregate information is presented. Access to individual data is restricted to staff who require the information in the performance of their duties. Safeguards against unauthorized access to confidential databases and hard copy exist. The relational database for prices statistics is designed with security protection for user’s access rights.

0.1.4 Statistical reporting is ensured through legal mandate and/or measures to encourage response

According to Article 14 of Law 7/96, the NIS is authorized to request the information it deems necessary from all public and private institutions, as well as from individuals. All respondents must furnish the requested information accurately, in the format and timeliness determined by the NIS. The NIS is authorized to investigate the accuracy of the information furnished, and to request additional information, if needed. Article 27 of the same law prescribes that non-response may result in substantial penalties, including administrative sanctions.

The NIS tries to encourage voluntary responses and promotes goodwill among data providers. The questionnaires contain a short introduction on the objectives of the survey or census and assistance is available to assist respondents in completing them.

0.2 Resources

0.2.1 Staff, financial, and computing resources are commensurate with statistical programs

In general, the staff and the financial resources are adequate for the actual production of the CPI. Further improvement or the compilation of any new statistics will require more resources. The NIS annual budget is funded by the Government and donor countries. Donors contributions amount to approximately 60 percent of the total budget.

The professional staff have a good background in economics and statistics. The surveyors receive technical assistance through workshops and seminars, where they obtain knowledge and training in issues such as classification systems, geographical coverage, price collection, weighting pattern, missing prices, base period of the index, and design of the household budget survey.

Computer and software resources are scarce and outdated. There are no plans to acquire portable computers for the CPI program in the near future.

0.2.2 Measures to foster efficient use of resources are implemented

The Strategic Plan for the National Statistical System (NSS) is shared with the staff to harmonize the institutional strategy and statistical methodologies in order to improve and strengthen the performance of the projects. The current Strategic Plan takes into account the need for new computer technology for compiling, processing, and disseminating statistical information.

Mozambique established a National Council of Statistics (comprising representatives of BOM, NIS, government ministries, universities, and private associations) to supervise the budget and provide guidance to the different agencies of the NSS. The NIS has an administrative unit responsible for the allocation of financial resources for the different projects to ensure their efficient use.

0.3 Quality awareness

0.3.1 Processes are in place to focus on quality

Management is aware of the importance of quality. Quality of statistics is the cornerstone of the Strategic Plan for the National Statistical System.

0.3.2 Processes are in place to monitor the quality of the collection, processing, and dissemination of statistics

The National Council of Statistics provides guidance to the NIS on data quality issues. However, quality assurance teams for monitoring quality indicators and conducting periodic reviews do not exist. It is important to mention that the NIS is a relatively new organization, and that the NIS has undertaken major efforts to improve the quality of its statistics.

0.3.3 Processes are in place to deal with quality considerations, including trade-offs within quality, and to guide planning for existing and emerging needs

The Strategic Plan for the National Statistical System states that statistical agencies are responsible for the quality and timeliness of statistics. Trade-offs between quality considerations are not explicitly acknowledged, but there is a strong emphasis on timelines of the price data.

The NIS monitors closely economic developments to identify any emerging data needs. Data quality improvements are taken into account in the development of the Strategic Plan.

1. Integrity

1.1 Professionalism

1.1.1 Statistics are compiled on an impartial basis

According to Law 7/96, the NIS is an independent institution. This Law calls for technical autonomy (Article 8), impartiality (Article 9), and reliability (Article 11) in the compilation and dissemination of official statistics. The President of the NIS reports to the Prime Minister of Mozambique. The NIS has the responsibility for making decisions on the projects to be developed, the procedures and methods to be used, and the comprehensiveness format, and timing of publication and dissemination of statistics produced by the NIS. The NIS is not required to submit the CPI to any government authority for approval prior to its publication.

Professionalism of CPI staff is promoted by encouraging participation in training courses, workshops, and seminars organized mainly by the Southern Africa Development Community (SADC), the European Commission, and the Scandinavian Consortium.

1.1.2 Choices of sources and statistical techniques are based solely on statistical considerations

The legal framework for collecting price statistics is adequate to maintain the independence of the NIS, and the information is compiled on an impartial basis. The employees are allowed to choose the most appropriate method and data sources are based on professional considerations.

1.1.3 The appropriate statistical entity is entitled to comment on erroneous interpretation and misuse of statistics

While there appears to have been no incident of erroneous interpretation and misuse of price statistics, the NIS has appointed a coordinator with the mass media, who is entitled to comment on various issues including the erroneous interpretation and misuse of statistics.

1.2 Transparency

1.2.1 The terms and conditions under which statistics are collected, processed, and disseminated are available to the public

Articles 5 and 10 of Law 7/96 state that the statistical policy guarantees transparency of the statistics. Law 7/96 is disseminated on the NIS website.

1.2.2 Internal governmental access to statistics prior to their release is publicly identified

There is no internal government access to the CPI prior to its release.

1.2.3 Products of statistical agencies/units are clearly identified as such

Products of the NIS are clearly identified as such by its name and logo. The Monthly Bulletin, the quarterly Short Term Indicators, and the National Statistical Yearbook, in which price statistics are published, are clearly identified as products of the NIS.

1.2.4 Advance notice is given of major changes in methodology, source data, and statistical techniques

Advance public notice is given of the major changes in methodology, source data, and statistical techniques. For example, the planned extended geographical coverage of the CPI to three important urban areas was informed to the public in the Monthly Bulletin and in a press release.

1.3 Ethical standards

1.3.1 Guide for staff behavior are in place and are well known to the staff

Ethical guidelines for the staff are contained in Law 7/96, Article 28, and the Code of Conduct for Civil Servants. These guidelines cover potential conflict of interest situations, secrecy, and confidentiality. New staff are made aware of these guidelines when they join the NIS.

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 concepts and definitions used are generally in line with internationally accepted standards as defined by the International Labor Organization, United Nations, and others. The basket of goods and services covers all products that have a significant consumption by all residents’ households. As a first criterion, any product that accounts for at least one per 1000 of the total consumption is included in the index. The transaction prices are at purchasers’ prices including margins and taxes. The current CPI has weights drawn from the 1996–97 Household Budget Survey (HBS), but the classification system is outdated.

2.2 Scope

2.2.1 The scope is broadly consistent with internationally accepted standards, guidelines, or good practices

The NIS compiles a CPI that covers the three biggest urban cities, namely Maputo, Nampula, and Beira. The CPI is a weighted average of the three indices of the consumer prices of those cities, whose weights are the consumption coefficients of the urban population of each city. The CPI is an urban price index. No rural area has been included.

The assessment conducted by the mission refers to the CPI for Maputo, which is generally used by the government and other users as the CPI for Mozambique.

Regarding the weighting pattern, the NIS excludes expenditures of households with the highest income because there are reasons to believe that the reported figures are not reliable. Member countries of SADC are working on a plan to produce regionally comparable indices and, for that particular reason, only monetary transactions are measured. In Mozambique, the weighting pattern excludes most imputed values of consumption; only owner-occupied dwelling services are currently included.

2.3 Classification/sectorization

2.3.1 Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices

Institutional units and transactions are classified/sectorized according to the SNA 93. The classification system used by the NIS is outdated and differs from the Classification of Individual Consumption by Purpose (COICOP). The existing system comprises seven divisions: food, beverages and tobacco, clothes and footwear, housing comfort, health, transport and communications, culture and recreation and other goods and services. This classification system is outdated, but the NIS has plans to adopt the COICOP in 2003–2004.

The International Standard Industrial Classification (ISIC) is not used for the selection of retail establishments because the NIS does not carry out establishment censuses, and it does not have an efficient system for developing and maintaining a business register.

2.4 Basis for recording

2.4.1 Market prices are used to value flows and stocks

The HBS is the basis for the CPI weights. The CPI price collections measure consumption at market purchaser’s prices including any discounts. Processes are in place to support recording quality characteristics, but items will need to be specified more precisely and adjustments for quality to ensure that changes in prices are “pure” price changes will need to be adopted.

2.4.2 Recording is done on an accrual basis

The NIS collects prices through field surveys once a month and the period of collection is maintained every month and included in the index for that month. For public utilities, rents, school fees, medical services, and those products where prices do not change frequently, the prices are collected either through telephone or personal contacts.

2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices

The weights for purchase of appliances, furniture, cars, etc, are measured as net sales.

3. Accuracy and reliability

3.1 Source data

3.1.1 Source data are collected from comprehensive data collection programs that take into account country-specific conditions

The HBS is conducted every five years and the survey covers all households in urban and rural areas in each of the 11 provinces. The technique for selecting units is a stratified random sample, stratified by province. The sample frame is based on the latest population and housing census (1997) and the HBS estimation procedures are based on the advice of international experts. The NIS does not carry out establishment censuses; thus, the sample of retail establishments for the price collection is selected using a nonscientific random technique; 516 outlets are covered, which are chosen by sales volumes. In the sample of retail establishments, there are large, medium, and small enterprises, supermarkets, and enterprises providing services.

Prices are collected for 570 different products (for Maputo, Beira, and Nampula) and the number of observations per month is around 6,000. Press reports and specialized publications are monitored as a supplementary source of price data.

3.1.2 Source data reasonably approximate the required definitions, scope, classifications, valuation, and time of recording

The design of the HBS is consistent with the framework of the CPI. The consumer prices collected match the requirements of the CPI.

3.1.3 Source data are timely

Prices are normally collected in time for the monthly deadline. The HBS data are available for CPI re-weighting two years after the survey reference period, which supports a five yearly re-weighting program to keep the weights representative.

3.2 Statistical techniques

3.2.1 Data compilation employs sound statistical techniques

The estimates from the HBS are compiled at a sufficiently detailed level for effective use as index weights. The CPI is built from 570 different products, representing seven major groups (see 2.3.1 above). The CPI is a Laspeyres-type index, with a fixed basket of goods and services, as well as fixed base weights.

The NIS is currently conducting a new HBS for the period 2002–03. The weights and basket of the CPI will be updated when the results of the HBS become available. The NIS is also working towards extending the geographical coverage of the CPI to seven additional cities. The criterion for the selection of the cities was their importance in terms of population and its geographical location. In practice, this approach works well in the absence of any frame with sufficient information to undertake sampling.

The NIS collects prices once a month and the period of collection is maintained every month. Weekly prices (basically pertaining to perishables) are collected on specific days and a specific hour of the day, usually in the mornings. For products whose prices do not normally change on a monthly basis, the procedures to collect prices are quarterly, twice a year, or yearly. For some products, new prices are taken into account when they are reported to have changed, especially for those products whose prices are centrally determined (e.g., electricity, gas, railway transport, mail, telephone services, etc.). The surveyors are well trained to price the same item over time.

Deviations from the above practice are kept under review. Adequate supervision and edit checks (both manual and computerized) are undertaken. The level of acceptance of prices, that is, change in price/index over previous period, is plus five percent. The outliers are verified; extreme prices are excluded from the computations of the index.

For the treatment of missing prices, the NIS uses the “carry forward” method for a maximum of three months after which, if the item is not available, a similar product is included in the basket (generally, the period of imputation for missing prices do not exceed three consecutive months). If a product “disappears” permanently from the market, it is replaced with a product, either from the same or similar outlet. When substantial numbers of prices are missing within a heading, estimates of the index prices are made based on the movement in the index of a comparable heading. For seasonal products, prices are carried forward until the product re-enters the market. Changes in quality are not taken into account.

The NIS uses the arithmetic means of the price relatives for calculating the indices at the group level. This is likely to be a source of bias in the CPI. The preferred method should be to use the geometric mean of price relatives. Since the services sector is growing fast, the basket of services should be updated regularly by including new products, such as cellular phones, Internet connections, personal computers, etc.

3.2.2 Other statistical procedures (e.g., data adjustments and transformations, and statistical analysis) employ sound statistical techniques

The regular compilation of the CPI covers a satisfactory proportion of household final consumption purchases in urban areas. The ratio of consumption in the urban areas covered in the index to the total urban consumption is 61 percent. Detailed CPI components are provided to the National Accounts Department for deflation of consumer expenditure. In practice, both teams—National Accounts and Prices—work together in order to ensure consistence of the data. The NIS does not carry out micro-surveys of activities that are not covered by regular CPI compilation.

3.3 Assessment and validation of source data

3.3.1 Source data—including censuses, sample surveys and administrative records—are routinely assessed, e.g., for coverage, sample error, response error, and no sampling error; the results of the assessments are monitored and made available to guide planning

The main data source are the HBS and the periodic Population and Housing Census, which provide the framework for the selection of households. The selection of establishments for the price collection is ad hoc. New HBS data are compared with data from the previous survey and adjustments made as necessary, especially if standard errors are high. The published HBS results do not include a discussion on methodology, sources of non-sampling errors, or the treatment of non-response. For the price survey, sampling errors are not available due to the judgmental nature of the selection of outlets.

The SADC and experts of the Scandinavian Consortium carry out formal audits of the NIS’ surveys and census.

3.4 Assessment and validation of intermediate data and statistical outputs

3.4.1 Main intermediate data are validated against other information where applicable

The NIS does not estimate the monthly producer price index (PPI) or prices indices for export-import. The only cross-check that can be made is with the GDP implicit price index. They show similar trends.

03.4.2 Statistical discrepancies in intermediate data are assessed and investigated

Unusual price movements are constantly monitored to determinate whether they arise from a data entry error, commodity misspecification, or a particular problem in the province concerned. Also, large changes are verified against external sources such as the Ministry of Agriculture, the BOM, and government agencies for the administrative prices.

3.4.3 Statistical discrepancies and other potential indicators of problems in statistical outputs are investigated

Atypical geographical trends are monitored to ensure that they are realistic. Technical assistance has been requested to improve geographical coverage, missing observations, quality adjustment and methods of imputation, and aggregation procedures. The CPI is a single hierarchical Laspeyres aggregation of its components and sub-components; there are no inconsistencies in this procedure.

3.5 Revision studies

3.5.1 Studies and analyses of revisions are carried out routinely and used to inform statistical processes

Revisions are made to index numbers as a result of either errors, misreporting, or the introduction of new weights or methodology. If the methodology or weights are revised, the index number series are also revised. During the process of updating the weights, a detailed analysis of changes in the consumption pattern is undertaken and major shifts are explained.

4. Serviceability

4.1 Relevance

4.1.1 The relevance and practical utility of existing statistics in meeting users’ needs are monitored

The NIS does not have regular procedures to consult with respondents and users. Methodological studies, conferences, and meetings with other professional groups are, in general, scarce.

4.2 Timeliness and periodicity

4.2.1 Timeliness follows dissemination standards

The CPI for Maputo is released up to 10 days after the end of the reference month and therefore meets the GDDS recommendations. The Beira, Nampula, and aggregated CPI are available 20–25 days after the end of the reference month (unless these dates fall on a weekend).

4.2.2 Periodicity follows dissemination standards

The CPI is released monthly and therefore meets the GDDS recommendations.

4.3 Consistency

4.3.1 Statistics are consistent within the dataset

The CPI is internally consistent.

4.3.2 Statistics are consistent or reconcilable over a reasonable period of time

A consistent time series for Maputo is available starting from 1995, when the official CPI was first published. As a result of linking indexes incorporating new data for three cities, consistent monthly time series for the aggregated index are available only from 1998.

4.3.3 Statistics are consistent or reconcilable with those obtained through other data sources and/or statistical frameworks

A PPI is not compiled. CPI data are in line with the national accounts deflator and the movements between the deflator and CPI are similar. The differences are due to the imputed items in the national accounts.

4.4 Revision policy and practice

4.4.1 Revisions follow a regular, well-established, and transparent schedule

There is a well-established revision schedule, and users are informed about it. The weights and basket of the CPI are revised when the results of the HBS become available.

4.4.2 Preliminary data are clearly identified

Data are considered final when published.

4.4.3 Studies and analyses of revisions are made public

Since revisions to CPI data are minor and rare, the NIS believes that there is no need to publicize any studies on them. Studies of revisions of the weights and basket are not made public, but are available upon request.

5. Accessibility

5.1 Data accessibility

5.1.1 Statistics are presented in a way that facilitates proper interpretation and meaningful comparisons (layout and clarity of text, tables, and charts)

The CPI data for the three largest urban cities are presented through monthly short press releases and the Monthly Bulletin for the seven major expenditure groups. No further breakdown of figures are published.

Index numbers and percentage changes for the last two years are provided. The CPI presentation provides charts and comments on the results. No seasonally adjusted series are produced.

5.1.2 Dissemination media and formats are adequate

The CPI is first disseminated through a press release and about an hour later posted on the NIS website (http://www.ine.gov.mz). The data are published in the Monthly Bulletin, the quarterly Short term indicators, and the Statistical Yearbook.

5.1.3 Statistics are released on a pre-announced schedule

An advance release calendar is not published. The NIS follows internal publication schedules that are generally known to users.

5.1.4 Statistics are made available to all users at the same time

The CPI is released simultaneously to all users.

5.1.5 Nonpublished (but nonconfidential) sub-aggregates are made available upon request

Tabulations of more detailed data (nonconfidential) than normally published are available upon request.

5.2 Metadata accessibility

5.2.1 Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques is available, and differences from internationally accepted standards, guidelines, or good practices are annotated

A statement on the methodology for compiling the CPI is available upon request from NIS at the Department of Consumer Price Index and Short Term Indicators. The descriptions are provided only in Portuguese. The metadata are not disseminated in a manner that facilitates their access, (e.g., NIS website).

5.2.2 Levels of detail are adapted to the needs of the intended audience

Comprehensive methodologies are scarce and available only upon request.

5.3 Assistance to users

5.3.1 Contact person for each subject field is publicized

Contact persons’ names, telephone numbers, and e-mail addresses are provided in the Monthly Bulletin.

5.3.2 Catalogues of publications, documents, and other services, including information on any charges, are widely available

A catalogue of publications, documents, and other services to users is not widely available to the public. The prices of the statistical products and services are publicized and assistance is provided in placing orders

Table 2.

Mozambique—Data Quality Assessment Framework: Summary of Results For Consumer Price Index

(Compiling Agency: National Institute of Statistics)

article image
article image

III. Government Finance Statistics

0. Prerequisites of quality

0.1 Legal and institutional environment

0.1.1 The responsibility for collecting, processing, and disseminating statistics is clearly specified

Under the Budget Framework Law of 1997, the Ministry of Planning and Finance (MPF) is responsible for collecting, processing and disseminating data on the execution of the general government budget and for preparing the statement of the government finances (conta geral do Estado)9. These responsibilities are discharged for budget management purposes, fiscal analysis, and reporting to the National Assembly and the public. The responsibility for compiling data on the central budget execution is assigned to the Public Accounting Directorate (PAD), in the MPF. Based on these data, the MPF compiles summary central government finance statistics (GFS10), also used for fiscal analysis. The Public Debt Department of the MPF is responsible for compiling data on domestic debt and external multilateral loans, except IMF loans, and the Foreign Department of the Bank of Mozambique (BOM) is responsible for compiling external data on bilateral and IMF loans. This division of responsibilities, although informal, is well-established. The responsibility for disseminating public debt statistics is assigned to the MPF.

The Law on the Integrated Management and Financial Information System (SISTAFE), Law 9/2002 of February 2002, covers all institutions of the general government (central and local), including autonomous institutions. Local governments are required to submit annual financial reports on a format and timeframe to be specified. Under this Law, the responsibility for compiling budget execution data is assigned to the PAD (Art. 38) and fiscal statistics to the Treasury Directorate (Art. 52). No specific regulations provide for compiling and disseminating fiscal statistics in accordance with internationally accepted standards.

Under the Budget Framework Law and the Law 9/2002 (Art. 35), the annual statement of the government operations (conta geral do estado) is submitted to the Administrative Tribunal for approval. The annual statement and the Tribunal’s findings are published in the official gazette. Under the Law on the National Statistical System, the MPF is not part of the national statistical system (NSS), and the responsibility for disseminating official fiscal statistics falls under the purview of the National Institute of Statistics (NIS), which traditionally publishes annual fiscal data. Since the first quarter of 2000, the MPF started publishing the budget execution quarterly report (Relatório de Execução do Orgamento do Estado), which is presented to the National Assembly.

0.1.2 Data sharing and coordination among data producing agencies are adequate

Data sharing and coordination are adequate between the MPF and the BOM. There are regular consultations between these agencies to reconcile any differences. The liaison maintained between compilers of budget execution data and of national accounts ensures that the data used and the statistics compiled are broadly consistent. The heads of the recently established local governments (muniçípios/autarquias) report directly to local authorities and provide only annual data to the MPF, for inclusion in the statement of the government finances.

0.1.3 Respondents’ data are to be kept confidential and only used for statistical purposes

Budget execution data are compiled from actual public accounting records. Data on off-budget operations (expenditures directly financed by foreign aid) are provided by foreign donors and by the units managing the projects financed by these grants. Data on autonomous agencies and local governments are provided by these institutions. To the extent that the confidentiality requirement is applicable, appropriate legal provisions and operational procedures are in place for purposes of confidentiality.

0.1.4 Statistical reporting is ensured through legal mandate and/or measures to encourage response

The Law on the Budget Framework stipulates guidelines regarding book keeping records of central government data, and attributes to the head of each central government institution the responsibility for reporting actual budget execution data to the MPF. Compilers have access to all data prepared by PAD and the information provided by bilateral donors and autonomous agencies.

Until recently, reporting of foreign aid (grants) to finance government operations was not mandatory, and part of these operations is executed outside the public accounting system (off-budget operations). Until 2001, arrangements to encourage reporting on these operations were insufficient to compile comprehensive data on government transactions paid directly by donors to government suppliers. A new system for donor reporting was set up in 2002, according to which donor funds (grants) are included in the budget, and transactions are accounted for in the budget execution data. However, the collection of this information does not follow budget execution procedures.

0.2 Resources

0.2.1 Staff, financial, and computing resources are commensurate with statistical programs

Staff, financial and computing resources are not commensurate with existing accounting and statistical programs. The MPF staff receive competitive remuneration compared with the rest of the public sector, but their remuneration is below equivalent staff in the private sector. Strong efforts are made to promote professionalism, ensure staff development and training, and complement staff skills with foreign technical assistance. However, the skills of experienced staff are very marketable, thereby posing a risk to the sustainability of statistical programs. Although some stages of the public accounting process are computerized, the system relies on very outdated procedures, is not integrated, and is mostly manual. Staff are provided with on-the-job training, but are rarely exposed to formal training courses. Additional operational constraints are imposed by the lead time required to prepare and publish new regulations and classifiers and, when required, to amend legislation accordingly. Despite these constraints, significant improvements have been introduced, or are in the process of being introduced, which should have a major impact on the statistical programs in the medium term.

There is no specific unit or staff fully dedicated to GFS in the MPF. There is good coordination among the departments involved in compiling budget execution data presented in the quarterly reports (Treasury, Accounting, Taxes, and Planning and Budget Directorates). However, some of the staff carry out this task in addition to their regular responsibilities. Few compilers have good knowledge of the GFS framework and methodology, and there is a critical need for training on the Government Finance Statistics Manual (GFSM 2001).

0.2.2 Measures to ensure efficient use of resources are implemented

There is no specific allocation of resources for the compilation of GFS, nor is there separate cost information on the compilation of budget execution data. Collaboration arrangements and procedures in place minimally ensure the maintenance of the existing statistical program, but there is no room for expansion. There is no evident sign of inefficient use of resources. Available staff, albeit stretched out, are managed efficiently under present constraints.

0.3 Quality awareness

0.3.1 Processes are in place to focus on quality

Quality is recognized as the cornerstone of the accounting and statistical processes, as evidenced by the significant recent improvements in the budget classifications and the design of the new financial management and information system (SISTAFE). However, the importance of generating fiscal statistics in accordance with internationally recognized standards has yet to permeate all levels.

0.3.2 Processes are in place to monitor the quality of the collection, processing, and dissemination of statistics

The quality of the accounting data on which the statistics are based is overseen by the government internal audit and control system as part of the authorities’ efforts to foster the transparency and accountability of government finances. This system, established in 1999 (Presidential Decree 40/99), is supervised by the Office of the General Inspector of Finance of the MPF, which is responsible for issuing auditing standards and procedures, providing training for inspectors, and coordinating the tasks of the audit and control units operating in each ministry. The audits undertaken have not yet covered all institutional units owing to resource constraints. The results of these audits, including recommendations, are provided to the relevant ministries for action. If compliance is not satisfactory to the General Inspector, a report is sent to the Office of the Attorney General. The legality and accuracy of the statement of government operations (conta geral do Estado) are assessed by the Administrative Tribunal.

No arrangements are in place to obtain feedback from users of fiscal statistics outside the government. However, the action plan to implement the SISTAFE provides for extensive user consultation in the implementation of the system.

Processes to control the hardcopy dissemination of the MPF quarterly report are outside the purview of the MPF. Printing is outsourced to the government printing office, and, owing to serious resource constraints, hardcopy publications are irregular and, in most cases, untimely.

0.3.3 Processes are in place to deal with quality considerations, including trade-offs within quality, and to guide planning for existing and emerging needs

Trade-offs between comprehensiveness and timeliness are implicitly acknowledged through the dissemination of quite detailed quarterly data on (i) the central budget execution provided by the Public Accounting Directorate, (ii) summary quarterly GFS with a broader scope and presented more in line with internationally accepted recommendations, and (iii) annual accounts including also information on autonomous institutions and local governments.

The SISTAFE under preparation is an integrated management and financial information system encompassing all subsystems or processes (budget preparation, financial management, asset management, public accounting, and internal control). It aims at fostering an efficient budget execution management and the production of real time, comprehensive, and accurate data to support effective decision-making and improve the transparency of government activities. In March 2001, a technical coordination unit (UTRAFE) was set up in the MPF to coordinate ongoing reforms related to the implementation of the SISTAFE.

1. Integrity

1.1 Professionalism

1.1.1 Statistics are compiled on an impartial basis

The accounting system regulations issued by the MPF provide for the strict application of accounting principles and control mechanisms. Fiscal statistics are compiled on an impartial basis using available sources, mainly data generated by the accounting system. Efforts are made to promote professionalism among MPF staff, and foreign experts are contracted to complement local skills and provide on-the-job training.

1.1.2 Choices of sources and statistical techniques are based solely on statistical considerations

Staff of the MPF are free from political or other influence in choosing the most appropriate sources and methods for compiling budget execution data. Compilers of fiscal statistics have full access to budget execution data, available data on off-budget operations, and data on the operations of the autonomous institutions.

1.1.3 The appropriate statistical entity is entitled to comment on erroneous interpretation and misuse of statistics

MPF staff provide expert advice on technical aspects of the statistics and are allowed to respond publicly to misinterpretation of the statistics. If an issue of misinterpretation is significant, response is made by senior MPF officials. Cases of public response are rare. To assist with the interpretation of the quarterly data, and thus avoid misinterpretation, explanations accompany the released quarterly statistics.

1.2 Transparency

1.2.1 The terms and conditions under which statistics are collected, processed, and disseminated are available to the public

All laws and regulations governing the compilation and dissemination of budget execution data are in the public domain. The compilation of GFS is implicitly governed by the laws and regulations related to the budget reporting system, and to the statistical activities of government agencies. Article 35 of Law 9/2002 mandates the government to provide quarterly information on the budget execution to the National Assembly, and to publish this information in the official gazette.

1.2.2 Internal governmental access to statistics prior to their release is publicly identified

According to the existing legislation, quarterly reports on the budget execution are provided to the National Assembly and subsequently published in the official gazette. Ministerial approval of these reports is required prior to their submission to the Assembly and prior to any publication of official information from the MPF. This approval process is not explicitly regulated, but is well known by main users.

1.2.3 Products of statistical agencies/units are clearly identified as such

The quarterly report on the budget execution is clearly identified as being produced by the MPF. However, the main units responsible for compiling data provided in the report, the Public Accounting, and the Budget and Planning Directorates are not identified separately in the respective tables. Data on public debt disseminated by the BOM are not identified as being produced jointly by the MPF and BOM.

1.2.4 Advance notice is given of major changes in methodology, source data, and statistical techniques

Major changes in budget methodologies and classification systems are approved in the National Assembly, prior to the submission of the relevant budget documents. There is no requirement to give advance notice of major changes in source data and/or statistical techniques. All changes are announced at the time the change is introduced in the disseminated data. The announcement of major changes is made by means of detailed descriptions accompanying the quarterly reports.

1.3 Ethical standards

1.3.1 Guidelines for staff behavior are in place and are well known to the staff

Public officials are bound by a code of conduct outlined in the Statutes of Public Servants (Decree 14/87), last amended in 1995 (Decree 47/95). The Statutes specify, inter alia, an obligation of loyalty to the State, honesty and service to the people, and professional and personal integrity. The Statutes regulate the public servants’ obligation to honor the confidentiality of information protected by Law (Article 99) and penalize the breach of confidentiality of this information (Article 183). The Public Administration Code and Regulation (Decree 30/2001) also provides for the confidentiality of information acquired while on duty (Article 80). Public servants are subject to a general employment contract. Staff are generally aware of the ethical provisions that regulate their work.

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 overall structure of the budget and budget execution data follows the GFS methodology as recommended by the GFSM 1986. Definitions of budget aggregates and sub-aggregates included in the annual budget laws are, to a large extent, in line with the concepts and definitions of the GFS framework.

The “migration path” to the GFSM 2001 is a by-product of the implementation of the SISTAFE. The action plan to prepare and implement this system covers the period 2002–05, and implementation of the pilot project is projected to start in mid–2004.

2.2 Scope

2.2.1 The scope is broadly consistent with internationally accepted standards, guidelines, or good practices

The scope of the data disseminated in the statement of government operations (conta geral do estado) includes (i) central government institutions included in the budget (orçamento do Estado); (ii) central government autonomous institutions (instituições autdnomas), which are partially included in the budget; (iii) local governments (municípios/autarquias); and (iv) summary data on nonfinancial pubic corporation. However, aggregate data on the general government are not presented following the GFS methodology. Moreover, the coverage of the operations undertaken by the government institutions included in the central budget is not comprehensive and excludes most of the revenues and expenditures financed by resources generated by these institutions (recursosprórios), collected directly mainly for services provided to the population (such as hospitals and schools). The statement of government operations (conta geral do estado) is disseminated with a significant delay. The latest published data refer to 1999, although data for 2000 have already been submitted to the National Assembly.

Government autonomous institutions and local governments are only required to provide annual summary data on all their operations to be included in the statement of government operations (conta geral do estado). The autonomous institutions carry out functions of government as their primary activity (e.g., social security, maintenance and constructions of road transport system, and basic research) and therefore belong to the central government sub-sector as defined by international standards. The partial coverage of the operations of these institutions in the fiscal statistics is a significant departure from the scope of government finance statistics (GFS) recommended in the GFSM 1986. This departure is amplified by the partial coverage of expenditures paid directly by donors to government suppliers, and the lack of coverage of the revenues collected directly by budget institutions which, however, are believed to be statistically insignificant. The operations of local governments (municípios/autarquias) are not yet statistically significant.

In practice, the definition of government debt is in line with internationally accepted standards, covering only the debt directly contracted by the government. However, since the autonomous institutions are legally authorized to contract debt (domestic or external), the ambiguity in the sectorization of these institutions creates ambiguities in the classification of the debt that may be contracted directly by them (apparently no debt has been contracted). According to international standards, debt contracted by the autonomous institutions should be classified as government debt.

2.3 Classification/sectorization

2.3.1 Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices

Budget classification systems have been progressively improved taking into account internationally accepted standards. Revenue and grants, expenditure, lending minus repayments, and financing are broadly classified using the GFS methodology. The revenue classification at the detailed level is not fully aligned with this methodology, while the economic and functional classifications are consistent with the GFSM 1986. Expenditure data are also presented by organic and territorial classifications.

Revenue and grants: General government transactions are classified as current revenue, and capital revenue and grants (Decree 37/2001) and main aggregates are mostly in line with international standards. Transactions are presented separately for the central and local governments (administração central e administração provincial) and are disaggregated by tax revenue and non-tax revenue. The classification of tax revenue is mostly determined by the base on which the tax is levied, as follows: (i) taxes on income and profits; (ii) taxes on goods and services; and, (iii) other taxes. Fishing license fees and royalties are classified as tax revenue (under other taxes). Non-tax revenue is classified by (i) administrative fees; (ii) other non-tax revenue; and (iii) earmarked revenue (receitas consignadas). Social security contributions are classified as non-tax revenue (under other non-tax revenue) which is consistent with the recommendations of the GFSM 2001. However, the classification of earmarked revenues is not determined by the source of the revenue but, instead, by its target use (allocation) and may comprise tax revenue that need to be reclassified for statistical purposes. The breakdown of the tax revenue of the local governments is less detailed, reflecting a more limited base on which taxes are levied. Capital revenue includes only sales of fixed assets. In the summary GFS table, privatization receipts are classified below the line as a financing item, in line with the recommendations of the GFSM 2001. However, in the quarterly budget execution report and in the annual government accounts (conta geral do estado), privatization receipts are still classifieds above the line (nontax revenue).

Grants are classified first by central and provincial administration and then by target destination of the grants (e.g., allocated or not to specific projects). The GFS methodology recommends the classification of grants first by type of unit paying the grants (i.e., from abroad and from other levels of government units) and then according to whether the grant is current (for purposes of current expenditure or undetermined purposes) or capital (for paying the acquisition or construction of capital goods).

Expenditure: In general, expenditures are classified in line with international standards (Ministerial Decree dated May 8, 2001). The economic classification of expenditures broadly follows the GFSM 1986. Main deviations refer to (i) subsidies, which are not disaggregated by public and private corporations as recommended, (ii) tax refunds paid after the end of the complementary period, (iii) expenditures financed with earmarked revenue, and (iv) expenditures referring to previous accounting periods (exercícios findos), which are classified under “other current expenditure.” Capital expenditures are first classified by fixed assets and capital transfers, and then by types of assets and by beneficiary sectors, respectively. The functional classification of expenditures follows the Classification of Functions of Government (COFOG) of 1980.

Lending minus repayments: Data on lending minus repayments are reclassified and presented only in the summary GFS table. This category also includes counterpart funds of grants in kind donated in the previous year but collected during the reference year. Lending data are provided separately from repayments of loans previously extended by the government, as recommended in the GFS methodology. Sales of equity other than shares (privatization proceeds) are classified separately in this category, in line with the GFSM 1986 methodology.

Financing: Financing data are first classified by residency (domestic and external), as recommended in the GFS methodology. However, the disaggregation by type of debt holder and instrument, also recommended, is not followed. The classification of domestic financing is a mix of classification by type of debt holder and debt instrument consisting of central bank, other depository corporations, and bonds. The classification of external financing consists of non-earmarked loans, loans earmarked to projects, and loans on payments made directly to suppliers. The GFS methodology recommends classifying external financing by type of debt holder.

Government debt: Data on government debt (stocks) are classified, in accordance with international standards, by type of debt holder (e.g., multilateral, bilateral and other), and data on domestic debt are shown separately from foreign debt.

2.4 Basis for recording

2.4.1 Market prices are used to value flows and stocks

Transactions are recorded at actual prices. Amounts denominated in foreign currency are converted to Mozambican meticais using the exchange rate prevailing at the date of the transaction. Debt liabilities are recorded at face value (i.e., the amount to be repaid at the end of the contract), in accordance with the GFSM 1986.

2.4.2 Recording is done on an accrual basis

Revenues and expenditures are recorded on a cash basis (following the GFSM 1986), or, in the case of expenditures, as close as possible to the time of payment. Recording of some of this expenditure is done based on the payment orders issued by the treasury. The GFSM 2001 recommends that recording be done in an accrual basis.

2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices

Transactions are recorded and presented on a gross basis, except for borrowing and amortization, as recommended in the GFSM 1986. Tax refunds are generally classified as (negative) revenue transactions, as recommended—the exception being refunds after the end of the complementary period, which are shown as expenditures. Although these amounts are usually insignificant, such treatment is not in line with internationally accepted standards (refunds should always be netted against the appropriate taxes).

3. Accuracy and reliability

3.1 Source data

3.1.1 Source data are collected from comprehensive data collection programs that take into account country-specific conditions

Comprehensive quarterly data on budget revenue, expenditure, and financing are available from the accounting records of actual transactions that are maintained by the PAD. Data on transactions paid directly by donors to government suppliers with foreign grants are collected directly from donor sources and cross-checked with information provided by the government units managing the relevant projects. Expenditure data include transfers to autonomous institutions, which are separately identified in the annual data provided by these institutions.

3.1.2 Source data reasonably approximate the required definitions, scope, classifications, valuation, and time of recording

Detailed source data for the general government are largely consistent with the definitions, classifications, time of recording, and valuation recommended in the GFSM 1986. However, the derivation of the GFS from existing budget execution data requires some reclassifications and estimates, mainly as regards grant-related transactions. The intra-government transfers are identified separately, allowing the consolidation of data on the central government, autonomous institutions, and local governments.

Public debt data are fully computerized using the Commonwealth Secretariat Debt Recording and Management System (CS-DRMS) maintained by the Treasury (multilateral debt) and by the BOM (bilateral debt). Data on grants provided by multilateral donors are also included, albeit separately, in the MPF database.

3.1.3 Source data are timely

Timely data for the budgetary central government (revenue, expenditure and financing) are available on a quarterly basis. Data on grant-related transactions are also available on a timely base. Data on the autonomous institutions are available only on an annual basis, and only several months after the end of the reference year.

3.2 Statistical techniques

3.2.1 Data compilation employs sound statistical techniques

Except for expenditure paid directly by foreign grants, no estimations of missing data or surveys are done. GFS covering the budgetary central government are based on complete information.

3.2.2 Other statistical procedures (e.g., data adjustments and transformations, and statistical analysis) employ sound statistical techniques

Expenditure paid directly by foreign grants is estimated based on the information provided by donors, giving rise to a statistical discrepancy exists between the adjusted overall deficit/surplus and total financing data. To bring the GFS to reflect transactions of the calendar year, adjustments are undertaken to take into account revenues received but not accrued in the calendar year, as well as accrued expenses not paid in the reference year (periodo complementar). Payments during the periodo complementar are those undertaken during the first quarter of the year based on payment orders issued before December 31 of the previous year, provided by the Treasury. No other statistical techniques are employed in compiling government finance data.

3.3 Assessment and validation of source data

3.3.1 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 planning

Information is derived from source data that are not readily available elsewhere and cannot be validated from any secondary sources. In all cases where second sources exist, such as intra-government unit transfers, there are cross checks for accuracy.

3.4 Assessment and validation of intermediate data and statistical outputs

3.4.1 Main intermediate data are validated against other information where applicable

No validations of intermediate government finance data are carried out.

3.4.2 Statistical discrepancies in intermediate data are assessed and investigated

Not applicable.

3.4.3 Statistical discrepancies and other potential indicators of problems in statistical outputs are investigated

The size of the statistical discrepancy between the overall balance and financing data of the summary GFS is monitored and unusual behavior is investigated. Discrepancies between financing and changes in outstanding debt are investigated and resolved as far as possible.

3.5 Revision studies

3.5.1 Studies and analyses of revisions are carried out routinely and used to inform statistical processes

Revisions are made as soon as more reliable information becomes available and reconciliation is done on a regular basis prior to publication of data. No formal revision studies are carried out.

4. Serviceability

4.1 Relevance

4.1.1 The relevance and practical utility of existing statistics in meeting users’ needs are monitored

Budget execution data are used for reporting and evaluating fiscal policy on a continuous basis. Data are used by the MPF and line ministries to assist in the formulation of the budget process of the following year. Quarterly and annual GFS are used for fiscal analysis by both the MPF and IMF. Users’ views (e.g., academia and research institutes, mass media) to gauge the relevance and practical utility of statistics currently disseminated are not sought. However, there is a perception among some compilers that there is little demand for GFS statistics among the wider user community.

4.2 Timeliness and periodicity

4.2.1 Timeliness follows dissemination standards

Quarterly data on the major components, including revenue and grants, expenditure and net lending (classified by economic classification including interest payments and by functions of the government), and financing by debt holder, are disseminated within 45 days after the end of the reference period.

Annual data on outstanding public debt, domestic and foreign by debt holder, and debt service projections (principal and interest) are disseminated, albeit with a significant lag.

The complete, audited final accounts of the budgetary central government are available only about 18 months after the end of the reference year.

The recommended timeliness of GFS according to the General Data Dissemination System (GDDS) is the following:

  • quarterly central government aggregates should be disseminated within one quarter after the end of the reference period—(Revenue, expenditure, balance, and financing with breakdowns by debt holder, debt instrument and currency, as relevant). The GDDS encourages the dissemination of data on interest payments. Current practice exceeds timeliness recommended;

  • annual central government debt data should be disseminated within 1-2 quarters after the end of the reference period—current practice does not meet the recommendation;

  • comprehensive annual central government data should be disseminated within six-nine months after the end of the reference period—final annual data disseminated does not meet the timeliness recommended.

4.2.2 Periodicity follows dissemination standards

The periodicity of GFS meets the General Data Dissemination System (GDDS) recommendations:

  • GDDS recommendation: dissemination of quarterly and annual central government aggregates (Revenue, expenditure, balance, and financing with breakdowns by debt holder, debt instrument and currency, as relevant). The GDDS encourages the dissemination of data interest payments—current practice meets recommendation on periodicity;

  • GDDS recommendation: annual central government debt data, with quarterly data encouraged. The GDDS encourages also the dissemination of annual data on outstanding debt guaranteed by the government separately from outstanding government debt (see above). The current practice meets recommendation on annual periodicity, but not the encouraged quarterly periodicity. (see above)

4.3 Consistency

4.3.1 Statistics are consistent within the dataset

Accounting identities are observed, components add up to aggregates, expenditure data provided (economic, functional, organic and territorial) are fully consistent, and debt data, stocks and flows, are reconcilable.

4.3.2 Statistics are consistent or reconcilable over a reasonable period of time

Historical budget execution data and GFS are not revised to reflect changes, such as improvements in the classification of the government operations or the expanded transactions coverage, to allow a meaningful reconciliation over time. The MPF is aware of the need to document and explain changes to the time series.

4.3.3 Statistics are consistent or reconcilable with those obtained through other data sources and/or statistical frameworks

Budget execution data are the main source for the national accounts estimates for the government sector compiled by the INE. Domestic debt statistics are reconcilable with banking statistics, requiring adjustments to take into account differences in the sectorization followed in the MPF and the BOM. For example, government institutions, such as the Social Security Institute, are classified outside the government sector in monetary statistics. MPF data on foreign debt are used in the compilation of balance of payments statistics.

4.4 Revision policy and practice

4.4.1 Revisions follow a regular, well-established, and transparent schedule

Revisions to data, usually minor, are incorporated in the cumulative data disseminated for the following quarter(s). Annual data are considered final after having been approved by the National Assembly. The approval process is regulated by legislation.

4.4.2 Preliminary data are clearly identified

Preliminary data are not identified as such.

4.4.3 Studies and analyses of revisions are made public

No revision studies are undertaken. However, preliminary figures are believed to be close to final data.

5. Accessibility

5.1 Data accessibility

5.1.1 Statistics are presented in a way that facilitates proper interpretation and meaningful comparisons (layout and clarity of text, tables, and charts)

Statistics are presented in the quarterly reports and the annual statement of government operations. These documents, the only means of dissemination of government finance statistics, provide an overview of the budget structure and main definitions used. However, these documents are targeted to a restricted audience/purpose, and definitions are not explained in a manner that facilitates a wider analytical usefulness and the international comparability of the available statistics.

5.1.2 Dissemination media and formats are adequate

There is no publication dedicated to providing GFS in a time series format and statistics are not yet disseminated through electronic means. The MPF report is prepared mainly for purposes of reporting to the National Assembly, and, therefore, is targeted to a more restricted audience, has a limited circulation, and is only published in Portuguese.

5.1.3 Statistics are released on a pre-announced schedule

There is no pre-announced schedule for the release of budget execution data, although the MPF has adopted an internal policy and practice of publishing the data within 45 days after the end of the reference quarter.

5.1.4 Statistics are made available to all users at the same time

Approval and dissemination processes lead to selected government officials obtaining access to statistics prior to other users.

5.1.5 Nonpublished (but nonconfidential) subaggregates are made available upon request

Nonpublished (but nonconfidential) sub-aggregates are made available upon request, but this service is not publicized.

5.2 Metadata accessibility

5.2.1 Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques is available, and differences from internationally accepted standards, guidelines, or good practices are annotated

In addition to the explanations provided in the quarterly reports, documentation on concepts and classifications is dispersed in the legislation and regulations (e.g., legislation approving the classification systems), part of which has been substantially amended and not easy to follow. Information on differences from internationally accepted standards are not identified.

5.2.2 Levels of detail are adapted to the needs of the intended audience

Available documentation are intended almost exclusively for government expert users.

5.3 Assistance to users

5.3.1 Contact person for each subject field is publicized

No contact person is identified in the quarterly reports to provide assistance to users.

5.3.2 Catalogues of publications, documents, and other services, including information on any charges, are widely available

No catalogue of the MPF statistical products and services is available.

Table 3.

Mozambique—Data Quality Assessment Framework: Summary of Results for Government Finance Statistics

(Compiling Agency: Ministry of Planning and Finance)

article image
article image

IV. Monetary Statistics

0. Prerequisites of quality

0.1 Legal and institutional environment

0.1.1 The responsibility for collecting, processing, and disseminating statistics is clearly specified

In accordance with Article 16, Section 2 of the Law of the Bank of Mozambique (Law 1/92 of January 3, 1992), the Bank of Mozambique (BOM) is responsible for compiling monetary and financial statistics that are needed for conducting monetary policy, as well as for surveillance of the monetary, financial and foreign exchange markets. In addition, Article 4 of the Law of the National Statistical System (Law 7/96 of July 5, 1996) provides the general framework for the compilation and dissemination of monetary statistics by the BOM.

Articles 37 and 38 of the BOM Law state that banks, finance companies, leasing, and other financial institutions (excluding insurance companies and pension funds) are under BOM purview. Thus, Article 39 of the BOM Law states that it is empowered to examine the accounts, books, and records of these institutions. For this purpose, all banks, finance companies, leasing and other financial institutions supervised by the BOM, should submit their monthly balance sheet directly to the BOM (Article 74 of the Law 15/99 of Credit and Financial Corporations). However, these laws need to be complemented with executive orders or instructions to specify more clearly the BOM authority to collect data from insurance companies and pension funds. 11

A Monetary Statistics Unit (MSU) of the BOM’s Economic Studies and Statistics Department (ESSD) compiles and disseminates in the Quarterly Statistical Bulletin a global monetary survey, which is the consolidation of the accounts of the BOM and those of the ten depository corporations (commercial banks). The BOM also publishes monthly monetary data in its website. In addition to the monthly monetary survey, the BOM publishes separate data on each of its components. In the official publications of the BOM, however, there is no indication of the department that is officially responsible for the compilation and dissemination of monetary statistics.

0.1.2 Data sharing and coordination among data producing agencies are adequate

There are adequate informal arrangements in place within the BOM to ensure the flow of information between the MSU, the Administration and Finance, the Banking Supervision, and the External Departments. Hard copy of the monthly BOM balance sheet is provided to the MSU 15 days after the end of the reference month. There is no electronic exchange of information between the Administration and Finance Department and the MSU. Data from depository corporations are collected electronically by the Banking Supervision Department, for surveillance and prudential purposes, 15 days after the end of the reference month. These data are also made available to the MSU for compiling monetary statistics.

0.1.3 Respondents’ data are to be kept confidential and only used for statistical purposes

Article 14 of the Law of the National Statistical System addresses confidentiality issues. The Law indicates that (i) the official statistical policy shall respect the rights of legal and physical persons and maintain the confidentiality of the primary data; (ii) the statistical data received by the statistical bodies are subject to their nondisclosure; and (iii) primary statistical data on legal and physical persons shall be confidential.

Article 74 of the BOM Law, Article 56 of the Credit and Financial Corporations Law, and the BOM’s Employee Manual (Chapter I, Sections 2 and 3) require that BOM staff observe the secrecy of data pertaining to the BOM or to institutions dealing with the BOM, which they acquire within their official capacities and due to their positions, as well as not to disclose these data. Article 102 of Law 15/99 establishes penalties for disclosure of confidential data.

Information System equipment are protected by individual passwords and the data of commercial banks are disseminated in a consolidated form. Due to the fact that the financial system consists of more than 12 institutions, residual or indirect disclosures of individual data do not occur.

0.1.4 Statistical reporting is ensured through legal mandate and/or measures to encourage response

Article 39 of the BOM Law states that “All institutions subject to supervision shall send the BOM, in accordance with instructions issued by the central bank, the monthly trial balance sheets and other data on their positions and operations.” In addition, the Law on Credit and Financial Corporations and various BOM’s regulations require banks to provide to the central bank, not later than the fifteenth day of each month, their monthly statements of assets and liabilities in the format approved by the central bank, along with any additional information that the central bank may require for monetary statistics purposes.

According to Articles 106 and 107 of the Law on Credit and Financial Corporations, failure to comply with the above mentioned reporting requirements (including misreporting) is punishable by a fine. In practice, these penalties have not been enforced. The Banking Supervision Department does not enforce the full extent of the law and existing regulations to late reporters.

All depository corporations, special finance houses, and other financial corporations operating in Mozambique and deemed relevant by the BOM, are also required to provide their trial balance sheets on a quarterly basis, and submit to the BOM their annual balance sheets and income statements along with the reports to their Boards of Directors and auditors each April (BOM’s regulation 13/99).

A Banking Supervision Department regulation requires that monthly information on credit and interest rates be provided to the BOM within 20 days after the end of the previous month. Failure to comply with this requirement is subject to the same penalties stated in Articles 106 and 107 of the Law on Credit and Financial Corporations.

The MSU has been promoting quarterly meetings with depository corporations to emphasize the importance of good quality statistics. Contact information within the BOM is provided to depository corporations.

0.2 Resources

0.2.1 Staff, financial, and computing resources are commensurate with statistical programs

The Monetary Statistics Unit has a total of seven staff, six of whom are exclusively devoted to the compilation of monetary statistics. Of the seven staff, five have a degree in Economics and one is an Accountant. Besides on-the job-training, staff are given the opportunity to participate in courses conducted by international organizations, such as the IMF (especially the Monetary and Financial Statistics training course), and seminars offered by central banks, such as the Bank of Portugal, the Bank of England, and the South African Reserve Bank.

On average, professional staff in the MSU have at least five years of experience in the BOM and adequate training in the compilation of monetary statistics. However, in recent years, the BOM management has transferred MSU staff to other units of the BOM, resulting in the loss of staff well-trained staff in compiling monetary statistics.

All staff members have personal computers with standard software, are connected to the BOM network, and have Internet access. The derivation and compilation of monetary statistics from balance sheet data are performed using Excel spreadsheets. The BOM is working towards the adoption of fully electronic collection and compilation of monetary statistics for the BOM.

Overall, financial resources for compiling monetary statistics are adequate; however, substantial improvements in data quality, such as the adoption of the new Manual on Monetary and Financial Statistics (MFSM) for compiling the monetary data, will require the strengthening of the MSU with additional resources.

0.2.2 Measures to ensure efficient use of resources are implemented

In general, all programs in the BOM are subject to budget considerations and performance assessments. However, there is no specific process to measure resources used to compile the monetary statistics vis-à-vis other statistical data. Annual programs are designed by the individual departments and submitted for approval by the Board of Directors. The programs are monitored and reviewed on a six-month basis. This system ensures that the technical staff meets the established deadlines by efficiently using the computer resources made available to them. In addition, MSU staff maintains regular contacts with the IMF’s Statistics Department to seek assistance on statistical methodologies and compilation issues.

0.3 Quality awareness

0.3.1 Processes are in place to focus on quality

The BOM recognizes that official statistics must have the confidence of their users and provides the infrastructure to exercise quality control at every stage of data production and dissemination. Staff working on monetary statistics have good experience in the field. As a result, they are sensitive to the different dimensions of data quality and the importance of quality to build trust among users. However, the BOM does not have processes or activities that focus exclusively on quality of the monetary statistics.

The MSU, in collaboration with the Banking Supervision Department, verifies that data reporting practices followed by the banks are consistent with the guidelines established by the BOM, and checks inputted data for accuracy. To reduce the time lag for compiling BOM’s monetary statistics, the Administration and Finance Department is in the process of automating its trial balance sheet, so that they can provide it electronically to the MSU.

0.3.2 Processes are in place to monitor the quality of the collection, processing, and dissemination of statistics

Validation procedures for assessing the reasonableness of reported data are undertaken on a bank-by-bank basis using computer software. At the MSU request, the Banking Supervision Department consults with the reporting institutions to verify the data for possible misclassifications. There is no other body outside the MSU that provides guidance on the quality of monetary statistics, and on strategies for improving data production.

The BOM does not follow a proactive policy to obtain feedback from users outside the institution on data quality issues through, for example, surveys or periodic meetings.

0.3.3 Processes are in place to deal with quality considerations, including trade-offs within quality, and to guide planning for existing and emerging needs

There is a wide recognition of the trade-offs between data accuracy and timeliness. The production of monetary statistics is, to a great extent, automated through the use of linked worksheets. As a measure of quality control, data processing includes a series of built-in checks and validations at every stage of the production cycle. Revisions of statistical procedures can eventually occur as a result of inquiries of users who approach the MSU. Recently, weaknesses in the reported commercial banks data have identified, due to the introduction, in January 2001, of new chart of accounts for commercial banks, which have resulted in misclassifications. Historical data have been revised accordingly.

Even though no formal mechanisms exist to address quality considerations and to seek user feedback that would guide planning for emerging data needs, the BOM promotes meetings with the press and other users to explain monetary developments. The MSU also holds quarterly meetings with depository corporations to discuss data reporting to the BOM.

Following the publication of the MFSM, the MSU plans to revise the methodology, data collection and compilation procedures, and practices to foster more consistency of monetary statistics with the new standards.

1. Integrity

1.1 Professionalism

1.1.1 Statistics are compiled on an impartial basis

The statutory provisions under which the BOM compiles monetary statistics are adequate to support its independence in conducting this function. Internal regulations ensure that staff in each department that is involved in the collection, processing, and dissemination of monetary statistics are responsible for professional conduct to the head of their department. Staff of the MSU feel that the quality of the compilation is not negatively affected by pressures from the upper management or other government agencies.12

Professionalism of the staff in charge of the compilation of monetary statistics is promoted by encouraging participation in lectures, conferences, and meetings with other professional compilers, other central banks, and international organizations. As part of staff development, MSU’s staff are encouraged to conduct research and publish research studies. However, validation and verification of the consistency of data demand a substantial amount of time, and not enough resources are dedicated to analyses and other statistical developments.

1.1.2 Choices of sources and statistical techniques are based solely on statistical considerations

The compilation of monetary statistics is based on the balance sheets of the reporting institutions. The monetary statistics includes the accounting balance sheet of the BOM and all depository corporations operating in the country. Therefore, it is not possible to alter the results by changing the source of information or the size of the sample. Data sources, statistical methods, and definitions are based solely on methodological considerations.

1.1.3 The appropriate statistical entity is entitled to comment on erroneous interpretation and misuse of statistics

Whenever monetary statistics are misinterpreted, either by the public or by the media, the BOM has sought to make the needed corrections using the appropriate channels, for example, holding quarterly meetings with the press to explain monetary developments. However, the BOM does not provide explanatory materials to prevent misuse of statistics.

1.2 Transparency

1.2.1 The terms and conditions under which statistics are collected, processed, and disseminated are available to the public

Comprehensive terms and conditions under which the BOM collects, compiles, and disseminates data are not available in the BOM publications. However, the public has access to the BOM Law and the Law on Credit and Financial Corporations, which contain very broad legal provisions concerning data collection, dissemination, and data confidentiality in the BOM’s Documentation Center. In addition, the BOM’s Law is posted in its website.

1.2.2 Internal governmental access to statistics prior to their release is publicly identified

No government officials outside the BOM have access to the data before their release to the public.

1.2.3 Products of statistical agencies/units are clearly identified as such

The Quarterly Statistical Bulletin is identified as a product of the BOM, but no mention is made about the departments or divisions responsible for the compilation and publication of specific statistics. The BOM is identified as the source of the monetary statistics.

1.2.4 Advance notice is given of major changes in methodology, source data, and statistical techniques

Changes in methodology, source data, and statistical techniques are not announced in advance, or explained at the time the new data are published.

1.3 Ethical standards

1.3.1 Guidelines for staff behavior are in place and are well known to the staff

Guidelines on ethical standards for BOM staff are contained in the internal publication “Ethical Code of the Bank of Mozambique.” This code establishes the rights and duties of the staff, and also the sanctions for noncompliance with these standards. The Ethical Code is applicable to all BOM staff and contains principles and duties related to professional ethics in all BOM activities. This Code is published on the BOM Intranet. All new staff are informed of the existence of the Code.

Employees who violate data confidentiality face penalties (Chapter I, Section 2, of the BOM’s Employee Manual). New BOM staff participate in a four-week training program on the fundamental duties and powers of the BOM and each of its departments, as well as on its internal regulations. These regulations are not posted on the BOM website.

BOM regulations state that employees must refrain from directly or indirectly requesting or accepting, for themselves or others, any gifts, gratuities, promises of future benefits or, in general, any offers made to induce them to take action that is part of their duties.

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 analytical framework used for compiling monetary statistics follows concepts and definitions that are, in general, based on the IMF’s draft Guide to Money and Banking Statistics in International Financial Statistics of December 1984. A monetary survey is compiled on a monthly basis as a consolidation of the accounts of the BOM and other depository corporations (ten commercial banks, two credit cooperatives, and one leasing company).

The monetary and credit aggregates identified in the monetary survey13 are: (i) money (M1), comprising currency in circulation plus demand deposits in domestic and foreign currency of the private sector (enterprises, individuals, and other financial institutions), and nonfinancial public enterprises; (ii) quasi-money, comprising savings and time deposits in domestic and foreign currencies, plus repurchase agreements with the banking system of all the sectors mentioned in the definition of M1; and (iii) M2 (M1 plus quasi-money). Other aggregates identified in the monetary survey are: (i) net foreign assets (gross reserves minus short-and medium-and long-term foreign liabilities); (ii) domestic credit (disaggregated by net claims on government and credit to the economy that includes claims on private sector, non financial public enterprises and the NISS); and (iv) other items (net).14 Total demand deposits in foreign currency (divided in non residents, resident and government) are published as memorandum items.

This section compares present data compilation practices with those recommended in the MFSM. Hence, it indicates areas where the BOM has yet to make changes to comply with the new methodological standards.

2.2 Scope

2.2.1 The scope is broadly consistent with internationally accepted standards, guidelines, or good practices

The financial corporations sector of Mozambique comprises the BOM, 11 commercial banks, three credit cooperatives, three leasing institutions, one investment bank, 29 exchange houses, 12 micro-finance companies, two venture capital funds, two insurance companies, one risk capital management, two representative office of foreign banks, one asset management companies, and other providers of financial services.

The BOM, the commercial banks, two credit cooperatives, and one leasing company, issue the types of financial instruments that are included in the national definition of broad money. Therefore, these financial corporations should be included in the depository corporations subsector. The investment bank, exchange houses, micro-finance companies, two other leasing companies, venture capital funds, risk capital management, representative office of foreign banks, and asset management companies, do not issue any type of financial instruments that are included in the national definition of broad money and, therefore, should be classified as financial auxiliaries rather than other financial intermediaries. However, a new commercial bank (Novo Banco) started operating in early 2002 and issues liabilities that should be part of broad money; therefore the accounts of this bank should be included within the monetary survey.

2.3 Classification/sectorization

2.3.1 Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices

The principles of sectorization applied in the monetary statistics compiled by the BOM are not fully consistent with the IMF’s MFSM, which recommends distinguishing between resident and nonresident units on the basis of the concept of “center of economic interest” and classifying resident institutional units into domestic sectors according to their objectives, functions, and economic behavior. The sectoral classification adopted in the MFSM is based on the 1993 SNA that distinguishes five mutually exclusive domestic sectors: (i) general government; (ii) nonfinancial corporations; (iii) financial corporations; (iv) households; and (v) nonprofit institutions serving households (NPISH). The first three sectors are further disaggregated into sub-sectors. The sectoral classification of resident units recommended in the MFSM for the purpose of compiling monetary statistics refers mainly to the sub-sectors distinguished in the 1993 SNA and is as follows: (i) central bank; (ii) other depository corporations; (iii) other financial corporations; (iv) central government; (v) state and local government; (vi) public nonfinancial corporations; (vii) other nonfinancial corporations; and (viii) other resident sectors.

In the monetary statistics compiled by the BOM, the following sectoral groupings of institutional units are distinguished: (i) government (units that are part of the general budget, decentralized units with transfers from the general budget and own revenues, and municipalities); (ii) non financial public corporations; (iii) private sector (enterprises, individuals, and NISS); (iv) central bank; (v) deposit banks, (vi) other financial institutions; and (vii) nonresidents.15 The current treatment of institutional units deviates from the recommendations of the MFSM in two cases: (i) the above sectorization is not applied consistently to both claims and liabilities in the sectoral balance sheet; and (ii) credit to the economy, in the monetary survey, includes indistinguishably private sector, nonfinancial public corporations, and other financial institutions.

The principles underlying the classification of financial instruments are based on international standards and, notwithstanding differences in terminology used, are generally consistent with the IMF’s statistical methodology as described in the MFSM. The classification framework is based on the liquidity of the financial instruments and the legal characteristics that describe the form of the underlying creditor/debtor relationship. However, the classification of financial instruments is less detailed than that required by the MFSM.

The BOM occasionally conducts repurchase agreements (repos) with commercial banks to provide/absorb excess liquidity in the economy. The BOM buys/sells treasury bills to the banks with the commitment to repurchase the bills at a fixed price after 3-4 days. These transactions are reflected in the balance sheets of the BOM and commercial banks as collateralized loans, as recommended in the MFSM.

2.4 Basis for recording

2.4.1 Market prices are used to value flows and stocks.

The general recommendation of the MFSM is that the valuation of financial assets and liabilities should be based on market prices or market-price equivalents (fair values). The valuation of loans is an exception to this principle in that loan values should be based on creditors’ outstanding claims without adjustment for expected loan losses. This amount comprises the outstanding principal plus any accrued interest and is referred to as the book value of a loan. Stocks and flows denominated in foreign currency should be converted to national currency values at the market exchange rate prevailing at the time they are recorded. Holding gains and losses arising from changes in market values (or fair values) of financial ssets and of outstanding liabilities should be recorded separately in a revaluation account.

Valuation principles used in the monetary statistics compiled by the BOM are consistent with these recommendations. Domestic securities are generally valued at purchase price (acquisition cost) and are revalued through redemption applying accrued accounting rules. Loans are recorded at the nominal value of the outstanding principal and include accrued interest. In line with the practice recommended in the MFSM, loan valuation is not adjusted for expected loan losses. Loan portfolio and deposits are valued at book value (principal plus accrued interest). General and specific provisions for loan losses are recorded under “capital accounts,” a practice that deviates from the MFSM, which recommends the inclusion of such provisions under “other liabilities.”

In the monetary statistics compiled by the BOM, the conversion of foreign currency denominated assets and liabilities is based on the end-of-period International Foreign Exchange Market (IFEM)16 mid-point market exchange rate, which is calculated daily as an average of the opening mid-point rates at the IFEM. Gold is valued at the market price quoted in the London market. Through June 2002, valuation gains/losses were recorded in “valuation adjustment” accounts; beginning in July 2002, adjustments resulting from market price changes are recorded in the profit and losses accounts.

The MFSM recommends that data be compiled on stocks and on each of the three flow components: transactions, revaluations, and other changes in the volume of assets. In Mozambique, banks do not provide financial information on flows, and the BOM does not derive transactions from stock data for monetary statistics purposes.

2.4.2 Recording is done on an accrual basis

In accordance with the accrual accounting principles recommended by MFSM, revenues and expenses should be recognized in the period in which they arise, regardless of when the corresponding cash flow actually occurs. In accordance with these principles, the MFSM recommends that interest due but not paid on financial instruments be incorporated into the outstanding amount of the financial asset or liability, rather than being treated as part of other accounts receivable/payable.

Commercial banks recognize interest income in the income statements as it accrues. Dividend income is recorded as income only when received. Interest due, but not paid, is recorded in arrears. Interest accruing on deposits, loans, and securities other than shares is also incorporated into the outstanding amount of the financial asset or liability. However, current report forms do not allow for the allocation of accrued interest to specific instruments and for the classification of accrued interest by sector.

Similarly, in the case of the BOM accounts, any interest accruals are classified in other assets/other liabilities, as appropriate, rather than being included in the value of the underlying asset/liability. As a result, in the monetary survey compiled by the BOM, interest accruals are included in the other items (net) category. Thus, all money and credit aggregates are recorded on a cash basis.

2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices

The general guideline of the MFSM and the SNA 93 that data is to be collected and compiled on a gross basis is applied in the compilation of Mozambican monetary statistics. Assets and liabilities of the commercial banks are reported on a gross basis in their monthly returns and are aggregated into a statement of assets and liabilities without consolidating interbank positions. Similarly, the central bank accounts are compiled and disseminated on a gross basis. Both, reciprocal asset/liability positions between the BOM and the commercial banks and claims among commercial banks are indistinguishably included in “interbank flows,” under other items (net). Consistent with the standard recommended in the MFSM, netting and consolidation adjustments are made only in presenting the monetary survey.

3. Accuracy and reliability

3.1 Source data

3.1.1 Source data are collected from comprehensive data collection programs that take into account country-specific conditions

The main source data for compiling the central bank monetary statistics are the accounting records (balance sheet) of the BOM prepared by the Administration and Finance Department of the BOM. Hard copy of this balance sheet is provided to the MSU. However, off-balance sheet information such as statements from BOM’s foreign correspondent banks and IMF Treasurer’s Department (TRE) records are also used for purpose of compiling monetary statistics for the central bank.

The basic data sources for the commercial banks are their individual monthly report forms. Items in these forms are derived from the banks’ accounting records. The incoming data are continuously reviewed by the Banking Supervision Department to foster data consistency. The report forms do not capture the full range of financial instruments and economic sectors. Thus, they do not provide sufficient detail to enable the classification of all financial instruments and economic sectors, as defined in the MFSM. Currently, the MSU is revising the commercial banks’ report form to include all financial instruments and economic sectors, as defined in the MFSM, and permit in-depth analyses and crosschecks.

Meetings with financial market participants and the business community to identify new developments that need to be taken into account in the compilation of monetary statistics are not common.

3.1.2 Source data reasonably approximate the required definitions, scope, classifications, valuation, and time of recording

The reports provided by the commercial banks cover a complete set of balance sheet positions, and the reported source data provide a reasonably good approximation to the concepts, definitions, scope, classifications, and recording principles for compiling sound monetary statistics. One deviation from the guidelines of the MFSM and SNA 93 concerns the residency criterion for compiling foreign assets and liabilities. To follow the MFSM guidelines on sectorization of domestic institutional units, more detailed data are needed from commercial banks (i.e., identify separately their claims on and liabilities to the NISS and the other financial institutions). Transactions of the BOM and banks with counter-parties that cannot be reasonably approximated or allocated to specific instruments or sectors are recorded in “other assets” and “other liabilities.”

The MSU recognizes that the current reporting framework does not conform fully to the new international standard (MFSM) with regard to the definitions, scope, classification, valuation, and the basis of recording. Thus, complete redesigning of the data reporting formats is an integral part of the BOM’s medium-term plan for implementing the MFSM.

3.1.3 Source data are timely

Commercial banks must submit an electronic copy of their report forms within 15 days after the end of the reference month. The information is checked and summarized by the Banking Supervision Department, and transmitted to the MSU, which consolidates it with the balance sheet of the BOM to produce the monetary survey within 25 days after month-end. Final aggregated data are made available for their publication in the BOM website within one month of the end of the reference period. The MSU contacts late respondents via telephone in order to collect information to meet publication deadlines.

The accounting records of the BOM are provided to the MSU within two weeks after the end of the month for purposes of monetary data compilation.

3.2 Statistical techniques

3.2.1 Data compilation employs sound statistical techniques

The banks’ reporting forms are standardized and easy to complete (using Excel format). In addition, supplementary notes and guidelines provide guidance for completing the report forms. Data are reported on diskette and entered into an electronic database of the Banking Supervision Department. The fact that commercial banks transmit their data in an electronic format minimizes the possibilities of processing errors.

At present, the MSU receives, in hardcopy only, the BOM balance sheet data. Thus, the MSU has to manually enter these data into its database for the compilation of the monetary survey. This procedure can be a source of errors and does not support sound statistical techniques. However, with the introduction of a system of electronic reporting of the BOM’s balance sheet, by end–2002, the processing time and errors (e.g., coding, editing, and tabulating errors) will be minimized.

3.2.2 Other statistical procedures (e.g., data adjustments and transformations, and statistical analysis) employ sound statistical techniques

Although the MSU calculates seasonally adjusted monetary data, they are available for internal use only. Other adjustments made to the monetary statistics include earmarked Funds and SAF/ESAF Loans. The counter-entry accounts are included as “adjustments,” in other items (net).

3.3 Assessment and validation of source data

3.3.1 Source data—including censuses, sample surveys and administrative records—are routinely assessed, e.g., for coverage, sample error, response error, and non-sampling error; the results of the assessments are monitored and made available to guide planning

The quality of the source data is monitored throughout the compilation process, which is fully automated. Queries regarding the balance sheet data of the BOM are resolved between the Administration and Finance Department and MSU. In addition, the MSU reviews the data and discusses any questionable data directly with the bank concerned.

Current commercial banks report forms are based on the chart of accounts for commercial banks approved by Notice No. 13/GGBM/99 of December 30, 1999. Annexes and Supplementary tables tend to correct for shortages of information in the chart of accounts. The BOM monitors and follows developments in the financial markets that affect the compilation of the monetary accounts—for example, the creation of the secondary Treasury Bill market. This operation led to the creation of yet another separate item in the compilation of the monetary accounts. However, the accuracy of the source data is not systematically controlled by the MSU.

3.4 Assessment and validation of intermediate data and statistical outputs

3.4.1 Main intermediate data are validated against other information where applicable

The only information contained in the balance sheets of the commercial banks that is cross checked, at disaggregate level, is the stock of treasury bills in the primary market. Besides this certification, the MSU does not routinely validate its data against other internal or external sources. In general, most queries concerning monetary statistics are resolved by the MSU in consultation with another department of the BOM.

Monetary statistics are sometimes subject to revisions. Nevertheless, any revisions of data reported by the commercial banks are analyzed and, if necessary, additional instructions and clarifications are provided by the BOM to ensure consistency of reporting by all respondents.

3.4.2 Statistical discrepancies in intermediate data are assessed and investigated

There are no secondary data sources that could be used for routine verification of monetary statistics. The MSU investigates the discrepancies when they arise, and attempts to determine their cause.

3.4.3 Statistical discrepancies and other potential indicators of problems in statistical outputs are investigated

Large fluctuations in monetary or credit aggregates occur sometimes. In those circumstances, following the release of monetary statistics, the MSU is likely to receive inquiries from data users and handles them directly. When discrepancies arise, they are investigated and corrected. A main source of discrepancies is wrong sector classification that occurs, particularly when other financial institutions and/or nonfinancial public enterprises are classified as private entities.

3.5 Revision studies

3.5.1 Studies and analyses of revisions are carried out routinely and used to inform statistical processes

There is no mechanism in place to conduct routine revision studies. However, deviations, omissions, and other potential sources of problems in the data (e.g., erroneous sectorization of institutional units) are identified and investigated.

4. Serviceability

4.1 Relevance

4.1.1 The relevance and practical utility of existing statistics in meeting users’ needs are monitored

The BOM does not have a proactive policy of periodically consulting users to get their feedback on the quality and the relevance of its monetary statistics. However, concerns addressed by users to the BOM are taken into consideration for future improvements. Regular visits by BOM staff to other central banks and seminars organized by international and regional organizations help them to assess the relevance of BOM’s monetary statistics. The Monetary Statistics Unit pursues the internationally comparability of Mozambique’s monetary statistics.

4.2 Timeliness and periodicity

4.2.1 Timeliness follows dissemination standards

The timeliness of Mozambique’s monetary statistics exceeds the recommendations of the IMF’s GDDS. Monthly data on the central bank and commercial banks are disseminated within four weeks after the end of the reference period, on the Internet. However, the Quarterly Statistical Bulletin is published within eight weeks after the end of the reference quarter.

4.2.2 Periodicity follows dissemination standards

As recommended by the GDDS, the monetary survey and other monetary data (sectoral distribution of loans, interest rates) are published on a monthly basis in the BOM’s website.

4.3 Consistency

4.3.1 Statistics are consistent within the dataset

Overall, the monetary statistics are internally consistent. The central bank’s and commercial banks’ records for claims on, and liabilities to each other show discrepancies, because of differences in the time of recording financial transactions. Credits/liabilities among commercial banks show discrepancies as well, due to improper sectorization and classification. Statistics for the entire financial corporations sector and the flow-of-funds accounts are not compiled in Mozambique.

4.3.2 Statistics are consistent or reconcilable over a reasonable period of time

The monetary statistics database of Mozambique is maintained by the MSU in Excel spreadsheets. The database starts in 1984 on a quarterly basis, and beginning in 1993 on a monthly basis. The coverage of the time series has evolved over time to reflect changes in the financial system. Monthly time series are published on the Internet for the most recent 12 months. The Quarterly Statistical Bulletin includes data for the preceding year and the last three months of the quarter. In general, there is a lack of methodological notes that identify and explain the breaks and adjustments made to maintain consistency over time.

4.3.3 Statistics are consistent or reconcilable with those obtained through other data sources and/or statistical frameworks

In general, the monetary statistics for Mozambique can be reconciled with other data sets. The MSU provides data on transactions in net foreign assets to the balance of payments compilers. Data on changes in net credit to government are provided to the MPF. Due to differences in the central government institutional coverage and the use of an accrual basis in monetary statistics versus cash basis in fiscal statistics, it is difficult to reconcile the net domestic borrowing of the central government reported in the fiscal accounts with the data derived from the monetary statistics. At present, such consistency checks between government finance statistics and monetary statistics are not conducted on a regular basis.

4.4 Revision policy and practice

The results of these revisions are not made available to the users.

4.4.1 Revisions follow a regular, well-established, and transparent schedule

Revisions occur only occasionally, when errors are detected, based on the availability of more accurate data.

4.4.2 Preliminary data are clearly identified

Monetary data are considered as final when first released to the public. However, BOM’s publications include notes on the status of the data (preliminary or final). Similarly, the BOM’s website contains data for a 12-month period and any revisions are published in the following issue. Users are not informed of the causes of the revisions

4.4.3 Studies and analyses of revisions are made public

No studies and analyses are carried out routinely on the revisions to monetary data. Users are not informed that the BOM does not conduct routine data revisions. However, errors and data shortcomings in the data reported by banks are the focus of internal analysis.

5. Accessibility

5.1 Data accessibility

5.1.1 Statistics are presented in a way that facilitates proper interpretation and meaningful comparisons (layout and clarity of text, tables, and charts)

The tables of the Quarterly Statistical Bulletin present the information in a clear form, although a greater level of desegregation would be desirable, particularly in the BOM website. The presentation of monetary statistics by the BOM facilitates the interpretation of the data by the users. The BOM and the accounts of depository corporations are presented in a balance sheet format. There is also information on reserve money, money supply, and credits and deposits. Charts and tables are also included in the Quarterly Bulletin.

5.1.2 Dissemination media and formats are adequate

The BOM disseminates monthly monetary statistics through its website, in Portuguese and English. The hard copy of the Quarterly Statistics Bulletin is sold to the public, but it also is distributed free of charge to a list of subscribers. There are also other BOM publications, such as the Monthly Recent Economic Developments, a monthly bulletin on Economic Trends, and a quarterly Prices and Financial Situation. All these publications, which are only available in Portuguese, contain analyses and developments on the monetary and financial sector.

5.1.3 Statistics are released on a pre-announced schedule

There is no publicly announced advance release calendar either for the Quarterly Statistical Bulletin or the Internet-based information, but the Monetary Statistics Unit strictly follows an internal publication schedule, according to which the Bulletin is to be published eight weeks after the end of the reference quarter. The Monetary Statistics Unit posts the electronic version of the monthly monetary statistics on the BOM website, by the 25th day of the following month.

5.1.4 Statistics are made available to all users at the same time

The publication of the Monthly Statistical Bulletin and the posting of monetary data on the BOM website are made available to all users at the same time.

5.1.5 Nonpublished (but nonconfidential) sub-aggregates are made available upon request

Nonpublished (but nonconfidential) data are made available upon request from the MSU with the approval of senior staff of the Economic Studies and Statistics Department. However, the public are not informed of the availability of a such information.

5.2 Metadata accessibility

5.2.1 Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques is available, and differences from internationally accepted standards, guidelines, or good practices are annotated

The Quarterly Statistical Bulletin does not contain a section with methodological notes and definitions to facilitate the understanding of monetary statistics by the public. It does not provide information on revisions to historical series, breaks, discontinuities, or changes in methodology. Methodological footnotes are very scarce in the tables included in the Bulletin. The MSU plans to include explanatory notes on statistical methodology in the BOM statistical publications in the near future.

5.2.2 Levels of detail are adapted to the needs of the intended audience

The BOM infrequently publishes brochures with general statistics of Mozambique, including monetary statistics. However, in general, there is no comprehensive documentation that meets the various needs of different users.

5.3 Assistance to users

5.3.1 Contact person for each subject field is publicized

The Quarterly Statistical Bulletin indicates that the Economic Studies and Statistics Department is responsible for its publication and lists as a contact the telephone number of the BOM and an extension. However, the Bulletin and the BOM website lack information on the responsible unit and the contact person for monetary data.

5.3.2 Catalogues of publications, documents, and other services, including information on any charges, are widely available

The BOM has a catalogue of publications in the Center of Documentation; however, this information is not available in the Quarterly Statistical Bulletin nor in the BOM website.

Table 4.

Mozambique—Data Quality Assessment Framework: Summary of Results for Monetary Statistics

Compiling Agency: Bank of Mozambique)

article image
article image
article image

V. Balance of Payments Statistics

0. Prerequisites of quality

0.1 Legal and institutional environment

0.1.1 The responsibility for collecting, processing, and disseminating statistics is clearly specified

The BOM is responsible for the compilation, processing, and dissemination of balance of payments (BOP) statistics for Mozambique. External trade data are compiled by the NIS. The compilation and dissemination of the data are governed by the terms and conditions of the Organic Law of the Bank of Mozambique (Law 1/92 of January 3, 1992), the Law of the National Statistical System (Law 7/96 of July 5, 1996), and the Exchange Control Act 3/96 of January 4, 1996. Law 1/92 (Art. 16-2) gives authority to the BOM, for policy purposes, to compile monetary, financial and external sector statistics. Law 7/96 (Chapter 1, Article 4b) indicates that one of the objectives of the National Statistical System (NSS) is to guarantee the compilation, processing, analysis and dissemination of social-economic statistical information. The Exchange Control Act, and its respective regulations, defines various BOP concepts that are necessary for the compilation of BOP statistics, such as residency (Article 3). Also, the Act establishes mandatory reporting of (i) all exchange transactions by the authorized exchange dealers (Article 7), (ii) foreign direct investments, equity capital, or reinvested earnings (Article 24), (iii) profit and dividend transfers (Article 25); and (iv) foreign debt and servicing of the debt (Articles 20-30). However, these laws need to be complemented with executive orders or instructions to specify more clearly the BOM authority to collect data from nonfinancial private corporations.

No clear responsibility for compiling and disseminating external trade data is assigned.

Data on public external debt are compiled by the MPF (multilateral debt) and BOM (bilateral debt). Debt data are disseminated by both the MPF and the BOM.

0.1.2 Data sharing and coordination among data producing agencies are adequate

The BOM has established operational mechanisms to ensure the receipt of data for the different components of the BOP from the private and public sector. The Customs Directorate (DGA) submits information on imports and exports on a quarterly basis, to the NIS. Subsequently, the NIS provides these data to the BOM for further processing and dissemination. The BOM obtains primary data from various sources, including the commercial banks, the MPF, and various departments within the BOM. Regular meetings are held with the different ministries and government institutions to discuss issues relating to external debt data, grants from other countries, imports of fuel, and others. Various surveys are sent to hotels, construction and transport enterprises, and nongovernmental agencies.

Article 13 of Law 7/96 relates to the principle of statistical coordination among the members of the National Statistical System. A committee on external trade, consisting of the BOM, the NIS, and the DGA, which was created with the objective of improving the accuracy, periodicity, and timeliness of the data, meets on a regular basis to discuss issues regarding the compilation and dissemination of the data. A memorandum has been drafted recently to formalize these coordinating mechanisms and to ensure a free and timely flow of BOP information among these agencies in order to avoid errors and duplication of efforts.

0.1.3 Respondents’ data are to be kept confidential and used for statistical purposes only

The confidentiality of individual respondents’ data collected by the BOM is guaranteed by Law 1/92. Article 73 of this Law stipulates that no information submitted to the Bank may be extracted or disseminated except to the owner of the information or upon explicit approval by the judiciary court. Article 74 stipulates that any person involved, even on a temporary basis, in the activities of the BOM shall be bound by professional secrecy. Section 3, Article 4 of Law 7/96 stipulates that all individual statistical information collected by the producers of official statistics is confidential and cannot be published on an individual level in any publication, nor given to any individual or entity. Individual information of private and public companies can be disseminated only with the respondent’s written consent.

The letters that accompany the surveys inform the respondents that the submitted information will be treated with strict confidentiality, on an aggregated level, and only for statistical purposes.

Article 28 of Law 7/96 indicates that disciplinary actions will be taken against employees of the statistical agencies members of the SEN who violate the law on confidentiality. They may be prosecuted in either a civil or criminal court.

Within the Department of Economic Studies and Statistics of the BOM (DESS), access to individual information is restricted to only those technicians, from the BOP area, who need the information for their statistical professional activities.

0.1.4 Statistical reporting is ensured through legal mandate and/or measures to encourage response

According to Law 1/92, the BOM can request any public entity to provide any information necessary for the pursuance of the BOM’s objectives established by the Law. Article 75 of this Law authorizes the BOM to request, immediately and free of charge, information from public entities that is deemed necessary for achieving the BOM’s policy objectives.

Article 24 of Law 7/96 authorizes the BOM to impose penalties when data are not submitted on time by the respondents. Also, reporting of data to the BOM has been made possible over the years through moral suasion. In letters accompanying the surveys, communications by telephone, and through visits to data providers, the BOM emphasizes the importance of the requested information for the compilation of the BOP. The BOM also meets regularly with the data providers and offers guidance on the surveys. For a better understanding of the statistical process, the BOM presents the reporting entities with copies of the statistical output. However, protracted delays in obtaining some source data may be an indication that sanctions and persuasion policies may need to be strengthened.

0.2 Resources

0.2.1 Staff, financial, and computing resources are commensurate with statistical programs

Staff resources are not adequate to perform the existing tasks, including the full conversion of the data from BPM4 to BPM5. Within the DESS, the Financial Studies and Balance of Payments area, which is responsible for the compilation of monetary and external sector data, comprises 11 staff, seven of whom are responsible for the monetary and four are responsible for the compilation, and dissemination of BOP statistics.

The staff are highly motivated, with relevant academic background, and have a good understanding of BOP basic concepts and methods. Most of the staff have at least four years of relevant experience and have received training at the IMF, SADC, Bank of Portugal, and central banks of neighboring countries.

In view of the increased volume of work associated with the process of conversion from BPM4 to BPM5, the implementation of new surveys, regular visits to the reporting companies, and the compilation of the IIP and data on international reserves and foreign currency liquidity, there is an urgent need to increase human resources in the BOP area.

There are three computers allocated to the BOP section, all of which are outdated. Due to the fact that most of the source data are received in hardcopy, the software packages may seem adequate at the present time. However, to reduce the manual compilation of the information, there is a strong need to develop a system of electronic transmission of the data from respondents. This will require upgrading the current technology. This has to be considered in the current re-engineering process of the BOM. In general, financial resources assigned to the compilation of BOP statistics are not adequate.

0.2.2 Measures to foster efficient use of resources are implemented

With the objective of enhancing the efficient use of resources, the administrative council of the BOM has introduced an annual plan of activities in which clear goals are established for each department. Every area within the BOM has to elaborate its own specific plan, which is then consolidated at a departmental level. The activities are periodically reviewed during the year to foster consistency with the plan.

No program exists to compare the resource usage of the BOP compilation and dissemination process with other statistical processes. The BOM has received assistance from the IMF through various missions since 1995. From January 2001, an IMF-financed peripatetic advisor has been assisting the BOM in the adoption of BPM5 and has been providing training in the BOP area.

0.3 Quality awareness

0.3.1 Processes are in place to focus on quality

Although there are no formal processes in place to focus on quality overall, the management of the BOM is aware that quality plays an important role in compiling and disseminating statistics. Staff from the BOP area attend the relevant administrative council’s meetings to respond to queries from management.

0.3.2 Processes are in place to monitor the quality of the collection, processing, and dissemination of statistics

Due to the limitation of human resources, the quality of the collection, processing, and dissemination of BOP statistics is monitored only through some data crosschecks. There is no body, outside the BOP area, to provide guidance on the quality of the BOP statistics and on strategies for improving data compilation.

The participation of staff in international seminars and conferences on BOP issues provides opportunities for implementing internationally accepted methodologies and for improving the quality of the information. Improvements in data quality are also pursued trough technical assistance from international and regional organizations.

Visits to reporting companies are conducted to discuss issues relating to the provision of data. However, no user surveys are conducted to assess the quality of the statistical information.

0.3.3 Processes are in place to deal with quality considerations, including trade-offs within quality, and to guide planning for existing and emerging needs

The BOM recognizes the trade-offs between timeliness, accuracy, and reliability of the data. To produce timely BOP statistics, preliminary information is used from the DGA and private companies. The data are indicated as provisional and are later corrected when more accurate information from the main sources become available.

1. Integrity

1.1 Professionalism

1.1.1 Statistics are compiled on an impartial basis

BOP statistics are compiled on an impartial basis because of the independence and professionalism of staff. Responsibility for, and decisions about, the methodology to be used for the BOP lie entirely within the BOP area. Distribution of work among staff is based on technical and professional criteria.

Professional competence plays a key role in recruitment policies. The administration department of the BOM recruits staff based on the recommendations from the relevant department. The BOM promotes training for their staff through participation in lectures, conferences, seminars, and training courses in and outside the country.

1.1.2 Choices of sources and statistical techniques are based solely on statistical considerations

The choice of source data and statistical techniques for the BOP is made by the staff from the BOP area and is based solely on statistical considerations, evaluating the opportunity and quality of the data. The selection and design of the surveys are based only on statistical considerations, taking into account international recommendations. Introduction of new surveys is entirely based on the importance of the activity, such as in the case of new activities in the service sector.

1.1.3 The appropriate statistical entity is entitled to comment on erroneous interpretation and misuse of statistics

Although the BOM has never been in such a situation, the acting head of the BOP area is entitled to comment on erroneous interpretation and misuse of statistics.

1.2 Transparency

1.2.1 The terms and conditions under which statistics are collected, processed, and disseminated are available to the public

The terms and conditions under which the data are compiled and disseminated are available in hardcopy and on the Internet in the Boletim da República. The Organic Law of the BOM is also available on the BOM website.

1.2.2 Internal governmental access to statistics prior to their release is publicly identified

There is no internal government access to the statistics before they are released to the public.

1.2.3 Products of statistical agencies/units are clearly identified as such

BOM statistical outputs are not always identified as such. Also, with the exception of the Monthly Statistical Bulletin, BOM publications do not identify the names of other statistical agencies whose data are being reproduced.

1.2.4 Advance notice is given of major changes in methodology, source data, and statistical techniques

No advance notice is given of major changes in methodology. These changes are announced simultaneously with the publication of the new data.

1.3 Ethical standards

1.3.1 Guidelines for staff behavior are in place and are well known to the staff

Guidelines on ethical standards for BOM staff are contained in the internal publication “Ethical Code of the Bank of Mozambique”. This code establishes the rights and duties of the staff, and also the sanctions for noncompliance with these standards. The Ethical Code is applicable to all BOM staff and contains principles and duties related to professional ethics in all BOM activities. This Code is published on the BOM Intranet. All new staff are informed of the existence of the Code.

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

Until the end–of–2001, BOP statistics were compiled on the basis of BPM4. Compilation of BOP statistics based on BPM5 started at the beginning of 2002. The BOM started disseminating BOP statistics according to the new methodology in June 2002. Therefore, the elements relating to the BOP methodological soundness are assessed in this report against the BPM5.

Although the overall structure of the balance of payments statistics is in broad conformity with BPM5 guidelines, the concepts and definitions are not followed in all areas.

The concept of residency embodied in the Exchange Control Act is not in conformity with the international methodology for compiling balance of payment statistics. Reference is made specifically to the following sections of the Exchange Control Act: (i) Article 3 (Residency) and Article 4 (Non-residency) of Chapter II (definitions) of Law NR 3/96 of January 4 1996; and (ii) Article 2 (Residence) of Notice NR 5/GG BOM/96, Regulation of the Exchange Law, Law NR3/96 of January 4, 1996.

There is a lack of a clear reference to the period of time that a transactor has to be located/operating in the country to be considered as a resident. The only reference to a period of time is in Clause (f) of Article 3, which states that a period of “over 90 days” is required to be considered a resident for those Mozambican citizens who remain outside the country for reasons related to health, education, and private or public sector work that require residence abroad. This definition is inconsistent with the one year recommended in the BPM5 (paragraph 67). The treatment as residents of Mozambique citizens who remain outside the country for a period of over 90 days for the reasons related to “…private sector work” is not in line with the BPM5 (paragraph 71).

The Law determines the residency of enterprises based on the location of the headquarters of the enterprise, while BPM5 recommends that the residency of enterprises be based on whether the “enterprise is engaged in a significant amount of production of goods and services [in an economic territory]… over a long period of time (paragraph 73).”

The Law also defines as residents “all foreigners living in Mozambique, except those who have transferable earnings.” There is no clear explanation in the Law of the concept “transferable earnings.”

2.2 Scope

2.2.1 The scope is broadly consistent with internationally accepted standards, guidelines, or good practices

Mozambique’s economic territory consists of the geographic territory administered by the government of Mozambique and includes the free trade zones. Due to problems in the residency criteria, some transactions between Mozambique residents and non-residents may be excluded. The coverage of the balance of payments data is incomplete, mainly because of under-reporting on commercial trade, lack of information on services (mainly in travel), lack of data on private transfers, and gaps in the information on private sector debt and direct investment. The financial account also excludes resident transactions with off-shore banks and portfolio investment, both assets and liabilities, for all sectors. The introduction of a survey of foreign construction enterprises in Mozambique improved data collection for this component, although still with considerable lags.

2.3 Classification/sectorization

2.3.1 Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices

With few exceptions, the classification/sectorization of BOP statistics is consistent with BPM5 guidelines. According to these guidelines, BOP statistics include (i) the current account, comprising goods, services, income, and current transfers; (ii) the capital account, comprising capital transfers; (iii) the financial account, comprising direct investment, portfolio investment (although data are not available), and other investments; and (iv) reserve assets. The functional category of financial derivatives is not included. Four sectors are distinguished: (i) general government; (ii) monetary authorities, comprising the BOM; (iii) commercial banks; and (iv) other sectors (nonbank financial institutions, enterprises, and individuals). However, BOP data are not cross-checked with the financial statistics area for consistency in the delineation of the general government sector. Furthermore, reporting of transactions is largely based on BPM4 classifications. The BOP area does adjustments to move from BPM4 to BPM5. The new survey, yet to be implemented, presents a classification that is broadly consistent with the BPM5. Some specific issues regarding the classification of the transactions are:

Goods: Customs forms do not permit the breakdown of goods specified in BPM5.

Services: The component breakdown is detailed and broadly consistent with the recommendations of BPM5. Services data are disseminated for transportation, travel, communications services, construction services, insurance services, financial services, computer and information services, royalties and license fees, government services, and other services. Problems in classification are reflected in the amount of “other services,” which accounts for more than a third of the total.

Income: Compensation of employees and investment income are identified separately. There is no further breakdown for the investment income account.

Current transfers: Basically correspond to general government transfers. The use of incorrect residency criteria and lack of information from the private sector, including nongovernmental organizations (NGOs), contribute to the deficiencies in this account.

Capital transfers: The main component of this account is the grants made to the government for development expenditures. The recently developed survey to NGOs should provide better information on capital grants received.

Financial account: The classification by type of investment and by sector follows BPM5, except for the lack of data on portfolio investment, which is believed to be small. Classification problems are also encountered in the commercial banks’ financial positions with foreign banks.

Reserve assets: Reserve assets include monetary gold, SDRs, reserve position in the fund, and foreign exchange.

Exceptional financing: Consists of debt forgiveness and rescheduled debt.

2.4 Basis for recording

2.4.1 Market prices are used to value flows and stocks

The BOP is compiled in millions of U.S. dollars. The principle of market valuation is followed, wherever possible, in the valuation of transactions. Transactions in national and other currencies are converted into U.S. dollars using the average exchange rate for the month, calculated from the market rate quotations.

2.4.2 Recording is done on an accrual basis

The BOP is compiled on an accrual basis. Adjustments are made to account for differences in the time of recording transactions.

2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices

Following the recommendations of the BPM5, current and capital account transactions are generally recorded on gross basis. Data are presented on a net basis only when credit data are too small. Consistent with the BPM5, the financial account transactions are compiled on a net basis, separately for the individual asset and liability components.

3. Accuracy and reliability

3.1 Source data

3.1.1 Source data are collected from comprehensive data collection programs that take into account country-specific conditions

Deficiencies in the coverage and classification of the BOP reflect gaps in data sources. The main areas where data sources are deficient are (i) services (computer and information services, and travel); (ii) income (direct investment); (iii) current transfers (other sectors); (iv) capital transfers (other sectors); and (v) the financial account (other investment by banks). The major errors and omissions registered in the BOP may be a result of a lack of information on private sector external debt, which has increased considerably in the past few years.

The primary data sources for the BOP are (i) external trade data, submitted by the NIS, from customs declaration forms; (ii) the monthly survey of foreign exchange transactions from the commercial banks; (iii) information provided by various departments within the BOM; (iv) information submitted by the MPF on government borrowing, repayments and transfers; and (v) surveys of hotels, construction services, transport services, large investment companies, communication companies, and NGOs. Response to surveys is not adequate.

The source data for the BOP components are as follows:

Goods: External trade data, submitted by the DGA to the NIS. The NIS, in turn transmits the processed data to the BOM. Imports c.i.f. data are adjusted to f.o.b. basis using a fixed factor. No further adjustments are made to the external trade data. The breakdown of goods required by BPM5 is not available.

Services: The major sources of information for the services account are the foreign exchange receipt surveys from the commercial banks and the surveys from various service areas. There are limitations to the information on travel, transportation, communication, and construction services.

Income: Data on compensation of employees and investment income are obtained from the foreign exchange records from the commercial banks and the BOM. No survey data has been included to estimate reinvested earnings.

Current and capital transfers: data are obtained from the BOM, MPF, commercial banks, surveys to the NGOs, INGC (National Institute for Natural Disaster Management), and the Mozambique Red Cross.

Direct Investment: Data on direct investment are obtained from large projects and the BOM.

Portfolio and other investment: No portfolio investment data are currently disseminated. Data on other investment are obtained from the BOM, large projects, the MPF, and commercial banks.

Reserve assets: Data are obtained from Bank of Mozambique.

Revisions are incorporated as new data become available. No specific period is given for data to become final.

3.1.2 Source data reasonably approximate the definitions, scope, classifications, valuation, and time of recording required

Not all source data are in conformity with the requirements needed for BOP compilation. Moreover, insufficient human and technological resources make adjustments to the source data difficult. Except for merchandise imports (which are converted from c.i.f. to f.o.b. basis), no other adjustments of data from the various sources are made to improve coverage, classification, and valuation.

3.1.3 Source data are timely

The timeliness of external trade data, which are received with a quarterly periodicity from the NIS, has improved considerably since the beginning of 2002, because the DGA started submitting the customs forms electronically. The surveys clearly identify the deadlines for reporting. Services and income data have been timely, although there is scope for improvement. Respondents can be penalized for not meeting the deadlines set out by the BOM. BOM uses follow up procedures, including telephone calls and e-mails. Regular personal visits are also conducted to encourage reporting and to identify difficulties that respondents face in supplying the data. The response rate of surveys has increased over the last few years to approximately 65 percent, except for construction services, which is a relatively new survey and has a response rate of only 30 percent. Banks and large companies, Mozambique Aluminum Company (MOZAL) and Hidroelectrica de Cahora Bassa (HCB), have a deadline of 15 days after the end of the reference period to submit the requested information.

3.2 Statistical techniques

3.2.1 Data compilation employs sound statistical techniques

Current data compilation procedures minimize, to a limited extent, processing errors. Trade data are received electronically, thereby reducing compilation errors. Data received from the NIS are, to some extent, cross-checked for consistency with information received from the companies. The foreign exchange surveys from the banks, which need to be updated to the BPM5 format, are designed in a way that is appropriate for applying validation checks, although these checks are not done routinely due to resource limitations. Data from banks are received in hardcopy and have to be entered manually. The working files are Excel spreadsheets that are available to users within the BOM. The compilation manual needs to be updated, since it was developed for compilation of data based on the BPM4 methodology.

Where necessary, for the banking sector and other respondents, the BOM ensures the accuracy of data by cross checking the data with the monthly information submitted to the financial statistics area. Surveys results from other sectors are received manually, which hampers the identification of errors. Data management procedures have been set up to minimize processing errors, but cannot be implemented fully due to resource constraint.

3.2.2 Other statistical procedures (e.g., data adjustments and transformations, and statistical analysis) employ sound statistical techniques

Adjustments are made to imports to convert them from c.i.f. to f.o.b. basis by using an adjustment factor of 10 percent of the imports c.i.f. value. Plans are under way to conduct surveys at major border points to estimate the average value of goods crossing those zones. No adjustments are made for the lack of data on small enterprises and non-respondents, or for underestimation of exports on the basis of partner country import data.

3.3 Assessment and validation of source data

3.3.1 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 planning

Errors, inconsistencies, and large or unusual transactions are identified by the BOM and followed up with the respondents or with the agency responsible for the data. Verifications are routinely made of relations between components and totals, and trend analysis to detect inconsistencies in the source data.

Regarding the monthly survey of foreign exchange reports, there is no requirement for the reporting banks to reconcile changes in their foreign currency positions with recorded transactions. No validation procedures are in place for surveys.

Revisions are made to the statistics whenever new or improved data become available.

3.4 Assessment and validation of intermediate data and statistical outputs

3.4.1 Main intermediate data are validated against other information where applicable

Information in the press is used to verify international transactions, especially for financial account transactions such as grants, loans, and direct investment.

3.4.2 Statistical discrepancies in intermediate data are assessed and investigated

Resource restrictions hamper the conduct of regular crosschecks of data with related series or indicators.

3.4.3 Statistical discrepancies and other potential indicators of problems in statistical outputs are investigated

There is an awareness that net errors and omissions have become large (approximately 50 percent of the current account), and the causes of this discrepancy are being investigated. The compilation of a BOP that excludes all activities reported by the MOZAL showed a reduction in the amount of net errors and omissions to some 12 percent of the current account.

3.5 Revision studies

3.5.1 Studies and analyses of revisions are carried out routinely and used to inform statistical processes

No record is kept of revisions to the published data, and no studies of revisions are carried out to inform the statistical process.

4. Serviceability

4.1 Relevance

4.1.1 The relevance and practical utility of existing statistics in meeting users’ needs are monitored

An established process of consultation with a user group, which includes representatives from the private sector and the government, does not exist. The BOM participates in relevant international courses and meetings.

4.2 Timeliness and periodicity

4.2.1 Timeliness follows dissemination standards

Annual and quarterly BOP data are disseminated within a quarter after the end of the reference period, thereby exceeding the timeliness recommendations for GDDS.

4.2.2 Periodicity follows dissemination standards

The BOM compiles quarterly and annual BOP statistics, thereby exceeding the GDDS recommendations. Data on gross international reserves are also compiled on a monthly basis.

4.3 Consistency

4.3.1 Statistics are consistent within the dataset

The concepts, definitions, and classifications for developing quarterly BOP data are the same as those for the annual data. Annual data are derived from quarterly data and, therefore, are consistent. However, the net errors and omissions have been large over time and are not investigated.

4.3.2 Statistics are consistent or reconcilable over a reasonable period of time

When source data, methodology, or techniques are introduced, historical series are reconstructed as far back as possible. BOP statistics, going back to 1980, have been reconstructed based on BPM5 methodology, but not yet published. Major changes in methodology and unusual changes in economic trends are explained in internal documents, but not made public.

4.3.3 Statistics are consistent or reconcilable with those obtained through other data sources and/or statistical frameworks

Problems in sectorization/classifications may cause differences between monetary and government finance statistics. BOP data are not easily reconcilable with national accounts, as various imputations and reclassifications are made to BOP data provided to the NIS.

4.4 Revision policy and practice

4.4.1 Revisions follow a regular, well-established, and transparent schedule

Revisions to BOP statistics do not have a established schedule, neither are they identified in the published statistics. Explanations and analysis of the revisions are only available in internal documents of the BOM.

4.4.2 Preliminary data are clearly identified

Preliminary data are clearly identified. Revised data are disseminated with the same level of detail as originally published. However, there is no indication in the revised data on which statistics have been updated.

4.4.3 Studies and analyses of revisions are made public

External users are not informed of the causes of the revisions. The nature of the revisions is investigated and data sources and compilation procedures are reviewed only sporadically.

5. Accessibility

5.1 Data accessibility

5.1.1 Statistics are presented in a way that facilitates proper interpretation and meaningful comparisons (layout and clarity of text, tables, and charts)

The statistical publications include an analysis of BOP data, and charts and tables are disseminated with the data to facilitate analysis. The Annual Report, the Quarterly Statistical Bulletin, and the monthly “Preço Conjuntura Financeira” present detailed information on annual and quarterly data, including current account components, the capital and financial account, and reserves and external debt.

5.1.2 Dissemination media and formats are adequate

BOP dissemination media and formats are largely adequate. Quarterly and annual BOP data are published on the BOM website, the Annual Report, and the Quarterly Statistical Bulletin, in Portuguese and English, and in the monthly “Preço e Conjuntura Financeira” in Portuguese. The dissemination media and format could be improved by, e.g., disseminating time series data on quarterly and annual data on the BOM website.

5.1.3 Statistics are released on a pre-announced schedule

There is no formal pre-announced schedule of release dates, but it is well known to users that data are available within the first quarter after the end of the reference period.

5.1.4 Statistics are made available to all users at the same time

The data are released simultaneously to all parties through the BOM website and in the Quarterly Statistical Bulletin.

5.1.5 Nonpublished (but nonconfidential) sub-aggregates are made available upon request

Nonpublished nonconfidential data are provided to users upon request.

5.2 Metadata accessibility

5.2.1 Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques is available, and differences from internationally accepted standards, guidelines, or good practices are annotated

Available methodological information is outdated. When the new surveys were introduced, accompanying notes on concepts and scope were made available to the respondents. A description of the methods used for compiling the BOP is published in the IMF Balance of Payments Statistics Yearbook, but no other documentation on the new methodology has been made available to the public.

5.2.2 Levels of detail are adapted to the needs of the intended audience

Users needs for comprehensive metadata on sources and methods are not met.

5.3 Assistance to users

5.3.1 Contact person for each subject field is publicized

There is a general note on the website and in the publications indicating that the DESS is the contact source, with telephone and fax numbers, and e-mail address. A specific contact person within the balance of payments area is not identified.

5.3.2 Catalogues of publications, documents, and other services, including information on any charges, are widely available

A catalogue of publications is available in the documentation center of the BOM, for a nominal fee, and users have access to information provided on the BOM website. The Quarterly Statistical Bulletin and the Annual Report are available in hardcopy for a charge, which is clearly indicated in the publications.

Table 5.

Mozambique—Data Quality Assessment Framework: Summary of Results for Balance of Payments

(Compiling Agency: Bank of Mozambique)

article image
article image
article image

APPENDIX I Mozambique—Current Data Dissemination Practices vis-à-vis the GDDS Data Dimension and Plans for Improvement17

article image
article image
article image
article image

Plans for Improvement

article image
article image

APPENDIX II Data Quality Assessment Framework—Generic Framework

(July 2001 Vintage)

article image
article image
article image
article image

APPENDIX III Main Features of the General Data Dissemination System and the Special Data Dissemination Standard

This section contains highly condensed descriptions of the General Data Dissemination System (GDDS) and the Special Data Dissemination Standard (SDDS). More details on the GDDS and SDDS can be found on the IMF’s Dissemination Standards Bulletin Board (DSBB) on the Internet at http://dsbb.imf.org.

General Data Dissemination System (GDDS)

  • Data Coverage, Periodicity, and Timeliness: Dissemination of reliable, comprehensive, and timely economic, financial, and socio-demographic data is essential to the transparency of macroeconomic performance and policy. The GDDS contains specific recommendations concerning coverage, periodicity, and timeliness for both comprehensive frameworks as well as data categories and indicators (see Table 2.1).

  • Quality: Data quality must have a high priority. Data users must be provided with information to assess quality and quality improvements. The GDDS recommends:

    • Dissemination of documentation on methodology and sources used in preparing statistics.

    • Dissemination of component detail, reconciliation with related data, and statistical frameworks that support statistical cross-checks and provide assurance of reasonableness.

  • Integrity: To fulfill the purpose of providing the public with information, official statistics must have the confidence of their users. In turn, confidence in the statistics ultimately becomes a matter of confidence in the objectivity and professionalism of the agency producing the statistics. Transparency of practices and procedures is a key factor in creating this confidence. The GDDS, therefore, recommends:

    • Dissemination of the terms and conditions under which official statistics are produced, including those relating to the confidentiality of individually identifiable information.

    • Identification of internal government access to data before release.

    • Identification of ministerial commentary on the occasion of statistical releases.

    • Provision of information about revisions and advance notice of major changes in methodology.

  • Access by the public: Dissemination of official statistics is an essential feature of statistics as a public good. Ready and equal access by the public are principal requirements. The GDDS recommends:

    • Dissemination of advance release calendars.

    • Simultaneous release to all interested parties.

  • Plans for improvement:. The GDDS recommends that plans for improvement be developed for all areas in which shortcomings exist and that these plans be disseminated.

The GDDS also recommends that any needs for assistance be identified in the metadata. This may also be helpful for donors and technical assistance providers to prioritize their activities.

For each participating member country, the GDDS metadata provide descriptions of the dimensions listed above together with plans for improvement and needs for assistance. This information is posted on the DSBB; participating countries are encouraged to also post the metadata on their national websites.

Special Data Dissemination Standard (SDDS)

Data dimension (coverage, periodicity and timeliness)

  • the dissemination of 18 data categories, including component detail, covering the four main sectors of the economy, with prescribed periodicity and timeliness.

Access dimension

  • the dissemination of advance release calendars providing at least a one-quarter advance notice of approximate release dates, and at least a one-week advance notice of the precise release dates; and

  • the simultaneous release of data to all users.

Integrity dimension

  • the dissemination of the terms and conditions under which official statistics are produced and disseminated;

  • the identification of internal government access to data before release;

  • the identification of ministerial commentary on the occasion of statistical release; and

  • the provision of information about revision and advance notice of major changes in methodology.

Quality dimension

  • the dissemination of documentation on statistical methodology and sources used in preparing statistics; and

  • dissemination of component detail and/or additional data series that make possible cross-checks and checks of reasonableness.

SDDS subscribers are required to:

  • post descriptions of their data dissemination practices (metadata) on the IMF’s Dissemination Standards Bulletin Board (DSBB). Summary methodologies, which describe data compilation practices in some detail are also disseminated on the DSBB.

  • maintain an Internet website, referred to as the National Summary Data Page (NSDP), which contains the actual data described in the metadata, and to which the DSBB is electronically linked.

At the March 29, 2000 meeting of the IMF’s Executive Board, Directors approved the incorporation of a new SDDS data category on external debt. The transition period for implementing this data category expires in March 2003.

As a result of the IMF Executive Board’s Third Review of the SDDS in March 2000, IMF staff began monitoring observance of the Standard through NSDPs maintained on the Internet. Monitoring commenced at the beginning of July 2000, and is limited to the coverage, periodicity, and timeliness of the data and to the dissemination of advance release calendars.

APPENDIX IV Users’ Views

Summary of Results of Survey of Data Users

1. With the assistance of the authorities, and to complement the Fund staff’s own assessment of the quality of Mozambique’s macroeconomic statistics, the mission that visited Maputo during June 6-21, 2002 conducted an informal survey of academics, media, international organizations and donors, banks, and public sector agencies. Public sector agencies included government agencies, autonomous institutions, and nonfinancial public corporations. The survey asked users to evaluate nine different aspects of national accounts, consumer price index, fiscal, monetary, and balance of payments statistics.

2. Twenty seven of the sample of 55 users responded. In comparison with similar surveys conducted in other countries, the response rate was adequate: 49 percent. Half of the responses were submitted by public policy organizations; 25 percent by the private sector; 16 percent by international organizations and donors; and 9 percent by academics.

3. The table below shows that these respondents’ views were mostly positive: 63 percent of the respondents considered Mozambican statistics to be satisfactory and 37 percent of the respondents considered them unsatisfactory. Distribution of the responses among the private and public sectors was uneven, with 42 percent of the private sector respondents and 88 percent of public sector respondents rating the statistics satisfactory.

4. Users were particularly satisfied with the coverage, the level of detail, the frequency, and the accessibility provided by the monetary statistics. Price statistics received similar positive responses, with the exception of data coverage. Users were critical of national accounts and fiscal statistics with respect to their level of detail, timeliness of the data, and their accessibility. All statistical sectors were criticized with regard to access to the methodology used in preparing the statistics, the lack of advance release calendars, and the lack of information on revisions to the data. Despite these critical assessments, most users considered Mozambique’s statistics to be equal in overall quality to those of other Southern African countries.

5. Many respondents took the opportunity to provide some comments and suggestions on Mozambique’s statistics; these are summarized below. Users expressed the need to produce more disaggregated national accounts, price, and labor statistics, and more frequent statistics for national accounts and fiscal data. Users also noted the long lag time for dissemination of national accounts and fiscal data. Some users suggested that the compiling agencies update the websites more frequently and provide better online access to statistics and metadata.

6. Selected comments are summarized and grouped into four categories below: (i) methodological soundness; (ii) accuracy and reliability; (iii) serviceability; and (iv) accessibility.

Comments of Respondents to User Survey

Methodological soundness

  • CPI and other data should encompass all provinces.

  • CPI should disaggregate between tradable and non-tradable goods.

  • Coverage of the informal sector is deficient and should be improved.

  • Government finance data does not include off-budget items.

  • National accounts and government finance data is only available as national aggregates. Detail by provinces would be welcome.

Accuracy and reliability

  • Commercial bank data is unreliable because of manipulation by sources.

  • Primary sources of data are dubious.

  • Production and price data for agriculture sector could be improved. Data are not trustworthy due to deficiencies in the beef, forestry, and fisheries sub-sectors.

Serviceability

  • National accounts and fiscal data have too long of a lag time.

  • Quarterly GDP should be made available.

  • Balance of Payments and government finance statistics should be available at least on a quarterly or monthly basis.

Accessibility

  • National accounts data could be made available in sources other than official publications.

  • Some data needs to be requested and is not readily available.

  • Dissemination over the Internet through an official central site is welcome.

  • Dissemination calendars could be made more available.

  • Option to register for e-mail dissemination requested.

  • Data on Internet should be updated more frequently.

  • Methodology and notes are not always available for the data.

  • Need to use clear and standard definitions for statistics.

  • Labor costs and wage data detailed by segment are needed.

Table 1.

Results of Mozambique’s User Survey

(number of responses in each category)

article image
article image
article image
article image