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Session 1 – Use of profiling for public administration

Session 1 – Use of profiling for public administration . Linda Scott Head of Business Register Operations UK. IDBR What is it?. The IDBR (Inter Departmental Business Register) Statistical business register Complies with EU standards 2 million enterprises (businesses)

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Session 1 – Use of profiling for public administration

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  1. Session 1 – Use of profiling for public administration Linda Scott Head of Business Register Operations UK

  2. IDBR What is it? The IDBR (Inter Departmental Business Register) Statistical business register Complies with EU standards 2 million enterprises (businesses) 2.5 million local units (sites) 98-99% of UK economic activity Source for over 150 regular surveys Used as an analysis tool

  3. Distribution of Enterprises (2008)

  4. Sources of data for the IDBR HM Revenue and Customs VAT traders Intrastat traders (identified by VAT reference) PAYE employers Companies House - Company registrations Dun and Bradstreet - Worldbase linkages ONS (and Northern Ireland) surveys Construction and farms surveys

  5. Data Held on the IDBR Name, address, geographic codes Size (employment / turnover) Economic activity (UK extensions of both NACE Rev 1.1 and NACE Rev 2) Legal status (company, sole proprietor, etc) Birth and death dates Survey selection and response history

  6. Enterprises operating in only in one region

  7. Enterprises operating in more than one region

  8. What is profiling? Profiling is a method for analysing the legal, operational and accounting structure of an enterprise group at national and world level in order to establish the statistical units within that group and their relationships, and to create and maintain the most efficient structures for the collection of statistical data.

  9. Experience of Profiling UK has many years experience of profiling: 1984 – move suggested from establishment (local unit) to legal unit reporting 1987 – review indicated that legal unit reporting was not suitable for complex businesses – profiling of private sector started 2004 – comprehensive surveying of public sector starts following review of economic statistics ONS has retained a profiling team since 1987.

  10. Current criteria for profiling Private sector enterprises with 250+ persons employment with secondary activity of 125+ persons employment. Local Authorities with 3000+ employment. Central Government with 2500+ employment. Referrals because of survey response problems, often through mergers and takeovers. Approx 2500 cases fall within the criteria, all profiled within a 4 year rolling programme.

  11. Tools used in profiling A computer generated template identifies existing enterprises and their legal units, local units and their reporting structures within domestic enterprise groups. A further tool permits graphical presentation of the legal unit tree structure. A separate template provides communication of the results of profiling in structured form to all users.

  12. Why profile Local Authorities and Central Government • Recommendations from the Review of Statistics for Economic Policy-making by Christopher Allsopp 2004 to improve the range and usefulness of economic data produced by the ONS. • Project set up in the Business Registers Unit (BRU) to look specifically at the treatment of the large complex businesses including local authorities and central government.

  13. Criteria for Local Authorities and Central Government • Structures differ from private sector • Initial concerns about the management of schools led to a focus on local authorities where employment was being reported incorrectly

  14. Reasons for the local authority employment problems • Local authorities gave limited autonomy to schools who set up their own payroll schemes. • This was aggravated by increases in the use of casual staff, e.g. supply teachers. • This led to confusion in completing the Business Register Survey which updates the IDBR and the Monthly Wages and Salaries Survey

  15. Current situation • This led to the creation of an employment based trigger for selection; ratio of taxed employees (PAYE) to survey employees outside the range 0.9 and 1.1. • Used for both local and central government.

  16. Diagram of Local Authority

  17. Industrial Classification Issue • Business Register Survey responses have highlighted the issue of misclassification of schools between primary and secondary education. • Coding is now based on the business descriptions returned by the local authority • An automated coding tool is used Automatic Coding Text Recognition (ACTR). • ACTR knowledge based updated for the differences in educational establishments.

  18. Other issues for public sector profiling • Arms Length Management Organisations set up by the local authority (LA) to manage building and maintenance of any property that they own. • Private Finance Initiatives (PFIs) – provides a way of funding major capital investments. Works like a joint venture. Consists of a partnership between LA bodies, Health Authorities and construction companies

  19. Success of profiling • Correct structure means benefits to survey response and coherence of national statistics • Lessens the burden on the business • Methodological Report concludes that business profiling is an important tool in ensuring the integrity of the IDBR both in accuracy and quality.

  20. Final Comments • Any questions on how UK Profile? • Any questions on example used? • Any other questions?

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