DG Budget Accounting Unit C2 Task Force IPSAS 26/04/2012 26 April 2012 DG Budget Accounting Unit C2

3.7 Timescales for future implementation 26 April 2012 DG Budget Accounting Unit C2

Project start: Commission communication from 17.12.2002 The European Commission adopts an ambitious plan to implement full accrual accounting by 2005 « Today’s action plan is the latest step in this long term strategy of modernisation: it maps the Commission’s progress towards the wholesale implementation of the most up-to-date public sector accounting standards by 2005, taking into account all the contraints and necessary detailed changes. With these measures the Commission will be far ahead of most administrations in the world. » Commissioner Michaele Schreyer New financial regulation: accrual based accounting system must be operational for financial year 2005 26 April 2012 DG Budget Accounting Unit C2

Project start: Commission communication from 17.12.2002 * Detailed document, giving directions for the project * Structure: 1. Accounting Framework 2. IT System 3. Project Management * Dual system: budget accounts + general accounts * Introduction of accrual accounting * Criteria for the new IT System * 3 options for the future IT System * Structure of the project 26 April 2012 DG Budget Accounting Unit C2

USERS (DGs, Agencies, Institutions) Modernisation project has impact on 3 levels Adaptation of existing system to new recording needs Ability to capture a wide range of information Introduction of new modules (for registering contracts, invoices, assets etc.) Progressive integration into one system 15 new accounting rules New chart of accounts New accounting procedures Financial Statements with accrual opening balances Accounting manuals RULES Complete re-engineering of management of the transactions in general accounting ° New practices & procedures Impact on human & financial resources IT TOOLS Il faut mentionner que la Commission avait déjà commencer à émettre depuis quelques années certains états financiers sur la base de la comptabilité d'exercice (ex: bilan). Mais le projet de modernisation a pour but de mettre en place une comptabilité générale basée sur le principe de comptabilité d'exercice permettant de donner des informations complètes et exhaustives. USERS (DGs, Agencies, Institutions) 26 April 2012 DG Budget Accounting Unit C2

Overview : Project Plan Road Map User requiremts DG's IT Accounting Project Managemt Initiated Communication & trainings completed closed DG Budget requirements identified Consolidation scope, processes, tool implemented DG's systems and processes validated finalised & communicated Chart of accounts designed Draft architecture IT architecture for 2005 Central systems implemented Other user DG's detail plans prepared DG's systems and processes Step 1 Step 2 Step 3 Step 4 Step 5 2003 Conceptual phase 2004 Implementation phase Next steps for DGs 26 April 2012 DG Budget Accounting Unit C2

General view IT Implementation Plan * *: taken from ABAC Feasibility Study as per June 2003 26 April 2012 DG Budget Accounting Unit C2

The main keys to the success of the project * High level support from the hierarchy * Rapid decision-making * Availability of resources * Ambitious and realistic planning for the project * Establishing communication/continuous dialogue * Mobilising the different actors for the changes * Explaining well the advantages of the new system 26 April 2012 DG Budget Accounting Unit C2

DG Budget Accounting Unit C2 3.9 Information systems/IT issues /modernising the collection of government accounting data 26 April 2012 DG Budget Accounting Unit C2

ABAC Global IT Architecture ABAC Accounting SAP Enterprise Financial & Accounting system 26 April 2012 DG Budget Accounting Unit C2

Requirements for the future accounting system Ensuring full accrual accounting capacity Ensuring consistency of data: * no duplicate treatment of data * sectorial functionality included in overall system architecture * services should have access to the same data * the system must be the sole source of accounting data Ensuring effective security: * standard security policy implemented Other requirements: * transition risks to the new system minimised * preference for central standard functionality * ease of maintenance, portability and user-friendliness 26 April 2012 DG Budget Accounting Unit C2

Three options for EU-IT architecture * Option 1: Continued use of the current system * Option 2: A single standard package * Option 3: A new integrated system 26 April 2012 DG Budget Accounting Unit C2

ABAC Global Architecture Contracts FM ECCS D W H Agri ABAC Accounting SAP Enterprise Financial & Accounting system ABAC Workflow AA FI Regio CO ... S w i f t AP Admin ABAC Assets AR CFM 26 April 2012 DG Budget Accounting Unit C2

ABAC Global Architecture Legal Entities Bank Accounts Budget Accounting Consolidation FM ECCS ABAC Accounting SAP Enterprise Financial & Accounting system Assets Accounting AA FI Cost Accounting CO AP Legal Entities Bank Accounts AR CFM Borrowing & Loans General Ledger 26 April 2012 DG Budget Accounting Unit C2

DG Budget Accounting Unit C2 3.10 Financial and technical support – for training, communication, etc. * ABAC project: major undertaking for Commission, significant resources needed * Creation of posts for DG BUDG project team - 15 posts planned for modernisation of the accounting - 22 posts planned for the new IT system * additional posts for the DG’s 26 April 2012 DG Budget Accounting Unit C2

DG Budget Accounting Unit C2 3.10 Financial and technical support – for training, communication, etc. * Estimated external ressources (2003-2005) - for development of the new IT System: approx 19Mio € - 2 Mio € for new accounting framework * Additional ressources for the DG’s for the adaptation of their sectorial systems 26 April 2012 DG Budget Accounting Unit C2