Analysis of Local Government Social Protection Expenditure and Its Reporting

Objective

The aim of the analysis is to examine how the reporting of local governments’ social protection expenditure differs in public sector financial accounting and reporting, and to identify the reasons for these differences.
The study will develop proposals for classifying social protection expenditures and improving the chart of accounts methodology so that the state and local governments can obtain comparable data for relevant target groups as well as key services and benefits. It will also develop appropriate indicators for comparing and forecasting the volume of social protection expenditure in the future, which could be used in policymaking.

Background

According to §6 of the Local Government Organisation Act, local authorities are responsible for organizing social assistance and social services as well as elderly care within their municipality or city. An analysis of these expenditures helps plan social protection services and the resources required to provide them.
Analysis of the chart of accounts data has revealed a problem: the level of social protection expenditure per capita and the level of municipal contribution to social protection vary significantly between local governments. The existing methodology for allocating expenditures does not provide sufficient comparable information for forecasting across key target groups, social services, and benefits.
One possible reason for this is the differing practices and methodologies used by local governments in reporting social protection expenditure.
As a result of the analysis, appropriate indicators will be developed for comparing and forecasting the volume of social protection expenditure in the future, and proposals will be made for changes to the chart of accounts methodology.

Project client: Ministry of Social Affairs
Project implementers: LevelLab and Geomedia
Study duration: 10/2021 – 06/2022

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Analysis of Educational Institutions in Rakvere Parish

Background

Rakvere Parish, recognizing the importance of education in ensuring community development and sustainability, has taken steps to enhance its educational network and improve quality. Recent demographic changes, economic challenges, and the continuous increase in education-related costs have highlighted the need for thorough analysis and strategic planning.

Objective

The primary goal of the project was to conduct a thorough analysis of the educational institutions in Rakvere Parish to assess their performance, efficiency, and financial status. As part of this analysis, the proportion of education expenses in the parish’s budget was determined and compared with the average figures for Estonia and the county. Additionally, the number of students and school occupancy rates were analyzed and compared with national averages. The locations of schools and kindergartens were also mapped to assess the accessibility of education in different areas of the parish. The analysis of financial indicators identified potential areas of inefficiency, which could help optimize the parish’s education expenses.

The second objective was to create various scenarios that would offer practical and realistic solutions for optimizing the parish’s educational organization. For each scenario, the impact on the quality and accessibility of primary and general education was assessed, as well as the effect on the parish’s education expenses. It was important to find solutions that would ensure high educational quality at reasonable costs. Involving the community in the scenario creation process was crucial to ensure their suitability and acceptance among local residents.

The ultimate goal was to ensure the sustainable development of the Rakvere Parish education system. This included improving the quality of education, ensuring it aligns with both the expectations of local residents and national standards. Additionally, the focus was on cost optimization to reduce education expenses without compromising on quality. An important part was also developing motivation programs for teachers and support specialists to improve the quality of teaching and ensure the presence of qualified personnel. Supporting the community and promoting collaboration were key to ensuring the accessibility of education and community satisfaction. The results of the project’s final report provide Rakvere Parish with a clear overview of the current state of the education system and enable informed, evidence-based decisions for the development and optimization of educational organization.

Methodology

The analysis of Rakvere Parish’s educational organization and the creation of scenarios were based on a diverse methodology. First, extensive data was collected, including the number of students, the occupancy rates of schools and kindergartens, the distribution of education costs, and the financial data of the parish budget. To obtain qualitative data, interviews and surveys were conducted with school management, teachers, parents, and municipal employees.

Modeling methods were used in the creation of scenarios, assessing their impact on the quality of education and costs. To engage the community, discussions and workshops were organized where residents could provide feedback and present their suggestions. The collected data was synthesized into a final report, presenting the analysis results and recommended scenarios, highlighting the advantages, disadvantages, and potential consequences of each scenario.

Benefits

The main benefit of the project for Rakvere Parish lies in the comprehensive analysis of the education system and the provision of practical solutions. The analysis provides the parish with a clear picture of the current state and costs of the education system, aiding in making evidence-based decisions.

The created scenarios offer various solutions for improving the quality and accessibility of education, as well as optimizing costs. Community involvement ensures that the solutions meet the needs and expectations of local residents, increasing their support and avoiding conflicts.

In summary, the project helps improve the quality of education, optimize costs, and ensure the sustainability of the education system, supporting the long-term development of the parish.

Project contracting institution: Rakvere Parish
Project implementer: LevelLab
Duration: 01/2022 ‍– 05/2022

Review the scenarios for reorganizing the educational network

Assessment of Training Needs for Local Government Officials and Employees

Objective

The aim of the study was to enhance the methodology for assessing the training needs of local government officials and employees, and to conduct an analysis of training needs, including proposals for addressing issues in the development of local government personnel over the next 5-10 years.

Results

2015. In 2015, a pilot study was conducted to map the competencies of local government officials and employees and assess training needs, during which a competency model was developed. The updated and enhanced competency model developed as part of this study consists of three competency groups: general competencies, general competencies in local government management, and sector-specific professional competencies.

The increasing flexibility in working hours and the use of telecommuting necessitate the development of ICT skills, while also increasing the need to enhance employees’ communication and collaboration skills.
The projected training budget for local government authority institutions collectively until 2030 is 24 million euros. This constitutes approximately 1.7% of the total local government employee salary fund.

There is a need for a central training coordination system to be established for the development of local government employees, aiming to coordinate training activities in key priority areas within local governments.

The methods used in the study: surveys, interviews, focus groups, document analysis, and expert panels.

Project ordering institutions: Ministry of Finance and Riigi Tugiteenuste Keskus
Project implementers: LevelLab (lead partner), Baltic Research Institute, and Geomedia
Duration: 09/2020 ‍– 04/2021

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Interim Evaluation of the Priority Area “Administrative Capacity”

Objective

The objective of the interim evaluation was to assess the achievement of the first two objectives of the administrative capacity priority area, as well as the implementation and effectiveness of the activities funded to achieve these objectives, while also considering other activities with similar goals.

Methodology

The evaluation applied an innovative evaluation model in which the activities under the administrative capacity priority area were grouped into three areas: development capacity of the government sector, leadership capacity of the government sector, and the quality of policymaking.
The evaluation model takes into account the key prerequisites of good governance, which emerge through the interaction of these three main components.

Main results

  • Measures implemented to strengthen the development capacity of the government sector have produced the expected results and remain relevant. However, a certain fragmentation and duplication in strategic planning has been identified as a problem, limiting the potential synergy between different measures.
  • Leadership capacity within the government sector has improved as a result of the supported activities, and implementation is progressing according to plan.
  • The quality of policymaking has also improved due to the supported activities: cooperation capacity has increased, inter-institutional collaboration has strengthened, and the substantive quality of impact assessments has improved.

Challenges

Currently, there is no long-term national development plan for strengthening administrative capacity, which means that the continuous development of administrative capacity is not guaranteed. It is recommended to develop a long-term, cross-sectoral development plan within the framework of the Estonia 2035 strategy to support the development of administrative capacity for both the central government and local governments.

Evaluation Methods: The evaluation included an analysis of financial, output, and outcome indicators of the measures and their activities. Focus group discussions and individual interviews were conducted. In addition, information was collected and analyzed through document analysis.

Project clients: Government Office of Estonia and the Ministry of Finance
Project implementers: LevelLab (lead partner), Institute of Baltic Studies, and Technopolis Group Estonia
Study duration: 03/2019 – 12/2019

Interim Evaluation of the Implementation Plan for EU Cohesion Policy Funds

Objective

The purpose of the interim evaluation was to assess the relevance, effectiveness, impact, and sustainability of the implementation plan and the activities carried out within it. The evaluation covered all 14 priority areas of the implementation plan.

Results

The interim evaluation concluded that the sectoral objectives and activities of the implementation plan remain relevant today, and there is no need for significant changes to achieve the objectives of the implementation plan.

As of December 31, 2018, 32% of the €4.6 billion from the EU Cohesion Policy implementation plan for 2014–2020 has been disbursed, totaling €1.5 billion. The support received from the EU Structural and Investment Funds has clearly contributed to achieving the objectives of all priority areas: the funding has a direct impact on increasing employment, improving public health, developing the living environment, and achieving other objectives. The impact of Structural Funds is long-term and manifests in changes at various levels. The operational program has had a significant impact on achieving Estonia’s key strategic objectives.

Challenges and Recommendations

Regional development balance remains a significant challenge. Overall, regional disparities remain significant, and there has been no noticeable shift towards more balanced territorial development. Close to 50% of EU funds have been invested in Harju and Tartu counties, leading to a widening of regional disparities. EU funds should be directed towards preventing problems and developing comprehensive solutions in regions, with an increased focus on the role, awareness, and competence of local governments in regional investments.

Additional funds from the performance reserve should be directed towards preventive measures and value-added activities such as research and development, innovation in entrepreneurship, education, and regional development.

Research methodology: focus group interviews, individual interviews, workshops, document analysis (documentation of projects, measures, and implementation plans), and quantitative analysis (financial, output, and outcome indicators of measures).

Project contracting authority: Ministry of Finance
Project implementers: Technopolis Group Estonia (lead partner), Ernst & Young Baltic, Praxis, Baltic Institute of Research and LevelLab
Duration: 11/2018 ‍– 04/2019

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