Question

Please answer as detailed as possible and from outside examples too!

In this paper, we study the case of a central public agency in a mature welfare state. The Swedish National Board of Student Aid (known as the CSN) manages the payment of financial aid to students for their living costs. CSN is divided into two administrative units: “Out” and “In”. “Out” includes those sections within the agency that manage the payment of financial aid to students. The “In” unit within CSN focuses on the repayment of loans. This case study is focused on the “In” unit, where several automated systems support decision-making.

The re-payment arrangements for student loans are clearly defined in the legislation; decisions are based on income from two years prior to the arrangement being made. The decision on the amount to be repaid is made “mechanically” by the automated system. The system combines information from CSN, information available to the public (e.g., tax information) and a client's personal information. In most cases the process is fully automated; in other words, the system calculates the reimbursement amount and automatically informs clients. When a client has given signed permission, the system can also accept payments that are made automatically by that client's bank.

However, when a client applies for a reduction in the amount to be reimbursed annually, the “In” unit has to manage the errand. A professional officer within the unit has to take on the task, checking the information provided by the client through the on-line applications system and manually adding other official information (most often from the social insurance agency), if applicable. The automated system within the unit then takes over.

The use of automated decision-making systems has brought about a readjustment of the practices that take place within public administration in several respects. Here, we will first focus on the use of officers' competence and the ethics of decision-making. The automated decision-making system is strictly based on legislation. The system can be seen as a mediator of the legislation. It presents and calculates errands in a correct way. When a client calls CSN, the role of the officer appears not to be that of decision-maker; rather, the officer is there to guide and direct the client through the e-service and prepare them to receive an automated decision.

Care was given in the form of personal guidance, not for personal reasons but as a way of increasing trust in the automated system. Standardized texts were also used to motivate the decisions and improve clients' trust and reliance on the system. There is also a guidebook on how to apply the explanations as to why a decision has been made. Internal educational programs on the legislation are provided; these also train officers to interpret and use the standardized formulations.

The automated services can almost be seen as a “hidden bureaucrat”, making the decisions on citizens' personal errands. There is a focus on justice and on the rule of law, as well as on efficiency and equal treatment for clients who use e-services. The system is embedded to such an extent that it can be seen as a street-level bureaucrat in its own right. The high level of acceptance of the automated decision-making system probably refers to the high level of trust in the legislative framework and in the government in general.

Complaints from clients were considered first when the input into the automated system wasn't sufficient. To support the clients, they asked for new information that was not taken into account when the first decision was made. Likewise, they asked if there were extraordinary circumstances that could be related to income. In terms of decision-making, rarely was the system itself seen to be at fault.

Thus, legitimacy is promoted through users' trust in the system and the transparency of personal services and information. The system is to be trusted, because it provides personalized and efficient services. Automation is in the interests of the citizen, and, thus, accountability involves a personal relationship between the citizen as an end-user and the automated system. The system is seen as a

mediator to encourage the competence of professional officers. Consequently, it is the legislation that says “no” – not the system, itself.

What are the main characteristics of the Financial Aid Management System that make it an Automated Decision System?

Answer 1

Following are main characteristics of Financial Aid Management System that make it an automated decision system:-

• CSN is divided ino two units:-
  • OUT  includes those sections within the agency that manage the payment of financial aid to students.
  • IN is where repayment of loan takes place and where several automated system supporting decision making is considered
• One of the major characteristic is its mechanically decision making basis information available from various sources as mentioned below
  • Information provided to CSN
  • Various public portals like Tax Information sites
  • Client's personal information
    • Post receiving information and exact figures, system runs pre defined criteria leading to exact figure of repayment/ reimbursement and intimates teh client. As client has given requisite authorities, system can also accept payments easily. So here entire system is automated leading to streamline in process and effectiveness in work.
• If there is change in reimbursement, even there is automation in same but first authorised officer will check all the relevent data provided but same is under control of "IN", some manuala additons are done post that it is taken over.
• The use of automated decision-making systems has brought about a readjustment of the practices that take place within public administration in several respects. The core focus on the use of officers' competence and the ethics of decision-making. The automated decision-making system is strictly based on rules and regulations and some pre defined standards by legislation. The system can be seen as a mediator of the legislation. Calculation by same is coirrect and efficient. Even role of officer is about guiding clients regarding receiving automated decisions and helping them in the best possible.

• Complaints from clients were entertained regarding any bugs in system in order to improve the same. Additional information was asked to mitigate the client's needs. Any unusual instance eading to any error in system was also asked to client. Such was the way to win trust of client on automated decison making leading to transparency and efficient in work.

• Such system will work as it is completely transparent, efficent and effective and acts in same way in any situation leading to client satisfaction and increasing trust on automatd decision making.