1. ATHENA EU MILITARY OPERATIONS : ACTIVE PHASE / J8 TASKS

2. ATHENA WHEN? - When the Operation Commander is officially in office - Usually from adoption until repeal by Council of EU of the Joint Action of the operation CHANGES FROM PREPARATORY PHASE ? - List of common costs : ATHENA ANNEX III - Operation Commander is authorising officer Active phase :

3. ATHENA Active phase : 1)Budget : estimates and adoption 2)Budget management : amending budgets, transfers, carryovers 3)Budget implementation 4)Imprest accounts 5)Inventories 6)Land, buildings, infrastructure 7)Reports and accounting 8)Organisation and tasks of the J8s

4. ATHENA ATHENA has annual budgets : - A budget for an operation is a new Title in this budget (either included in annual draft budget in October or as a supplementary budget during the year - A budget for an operation may be adopted at any time (not only during the active phase of an operation) ESTIMATES : - by OHQ and FHQ J8s with other branches, the Administrator and the EU Military Staff - EARLY: Contributions payable within 30 days! ADOPTION : - Presentation by OHQ J8, Administrator, FHQ J8 - Adoption by the Special Committee acting unanimously 1) Budget : estimates & adoption

5. ATHENA Budget: -1 Title per operation, divided into chapters and articles -Chain of command free to sub-divide further - the budget is authorised for one year (until 31 st December) Structure: Title N Operation X -Chapter 1 : General Support - Article : Employment of Personnel - Article : Administration and office-accommodation support, etc. -Chapter 2 : Mission Support - Article : Transport and travel - Article : CIS, etc -Chapter 84 : Provisional appropriations - Article : Provisional appropriations – Common costs - Article : Pre-financing of NBCs 2) Amending budgets, transfers & carryovers

6. ATHENA Amending budget : - If total of appropriations should be changed, same procedure as initial budget, at all times - Requires Special Committee's unanimous approval Transfert of appropriations : - When total appropriations remains unchanged : redeployment of appropriations During 3 months following official launch of operation : -by Operation Commander Thereafter : -between subdivisions below the level of article: -by chain of command, at all times Between articles or chapters : -by administrator (himself or with Special Committee’s authorisation) 2) Amending budgets, transfers & carryovers

7. ATHENA Carryovers : Purpose: extend appropriations beyond 31 December to next year No limit to carryovers over several years, - but should not be done if it can be avoided - new budget should then be requested 2 kinds of carryovers: If a legal commitment (contract or purchase order) exists -a debt must be paid -the OHQ J8 checks the amounts to be paid during the next year -the Administrator decides -Should be done as early as possible to allow for invoices to be paid If no legal commitment exists -appropriations may be carried over to the next year (n+1) -the OHQ J8 estimates needs by 15 February of year n+1 Article -the Administrator submits proposal to the Special Committee -Special Committee decides by 15 March of year n+1 2) Amending budgets, transfers & carryovers

8. ATHENA 1.Organisation between various HQs J8s : Decentralisation of implementation - FHQ and subordinate HQs should have a share of the budget delegated to them Centralisation through reporting - The OHQ should be informed regularly and have an overview - The OHQ may then reallocate the budget, request transfers etc... For OHQ J8 to organise with subordinate J8s 2.Between branches and supporting departments : - Ensure that J8 of the relevant HQ - authorises expenditure - or gives proper delegation in writing Avoid expenditure by non-authorised personnel 3) Budget implementation

9. ATHENA 3 phases 1) Budgetary commitment : aim : reserve appropriations for future, intended expenditure must be done before spending starts, or budget may be exceeded 2) Legal commitment : contract or purchase order may be made only by relevant HQ’s J8 or (below the « higher threshold ») on the J8’s delegation 3) Payment : joint signature of 2 officers payment on account before work starts or when progress made allowed final balance : when delivery certified in conformity with contract / order + invoice 3) Budget implementation

10. ATHENA For budget implementation in 2 cases : 1.when impossible to have an authorising officer together with an accounting officer (isolation) 2.when repeated payments below 5000 euros each for same type of expenditure. Then, payment against invoices (no contract) possible Decision by authorising officer & accounting officer together : -justifications and purpose, -limits to spending (global and per item) -reporting 4) Imprest accounts

11. ATHENA 4) Imprest accounts Imprest administrators: commissioned officers or NCOs A budgetary commitment must be made for the imprest Funds may be provided to the imprest administrator Imprest must provide regularly justifications (invoices, bank statement or cash balance) Replenishment of funds when expenditure justified Accounting and authorising officer responsible for checking

12. ATHENA 5) Inventories : J8 must ensure that inventories are kept up-to-date Procedure must be locally organised - ensure that each item is entered on inventory when purchased  see with other branches, depot, warehouse, etc.  reconcile with invoices (accounting software) All equipments with a normal duration of more than 1 year - No limit based on value, only on normal duration Content:  Description of items and number  Location / Person or unit responsible  Purchase value  Date of acceptance (for amortisation) Each item should wear a label showing its number.  corresponding number in inventory.

13. ATHENA 6) Land, buildings, infrastructures : Difficulty: often made available by local authorities => Temptation of diplomatic, informal arrangements However, certainty on costs should be ensured Therefore, J8 must ensure: -a (purchase or rental) contract in writing -an inventory of fixture in writing -on arrival and departure -co-signed with landlord -with photos and maps Infrastructure: particular sensitivity of Special Committee => Keep in proportion to duration of operation

14. ATHENA 7) Reports & accounting 1.Reports : During active phase : -once every quarter -within one month following end of each quarter -budget implementation (budget commitments, legal commitments, payments) + cash flow table (funds received, funds paid, changes in cash and bank accounts balances) 2.Accounting (accounting software) : -in theatre: at least budgetary accounting -for the whole operation: accrual basis, with balance sheet => organise work sharing between various levels

15. ATHENA 8) Organisation & tasks of the J8s : Normally, at least 4 officers 1)Head of section = authorising officer 2)Budget officer 3)Procurement officer 4)Accounting officer Accounting officer : incompatible with authorising officer Other roles can be cumulated by same officers if fewer than 4 officers available At least 2 officers

16. ATHENA J8 Head of section’s tasks : (Financial rules, Part I, Article 6) 1)Ensure that funds are kept safely at all times 2)Check the eligibility of expenditure 3)Ensure that rules (on procurement, etc.) and budget are complied with, request derogations 4)Give his assent to contracts 5)Ensure that inventories are kept up-to-date 6)Issue SOPs to organise his / her section 7)Organise the internal control / audit system 8)Provide implementation reports

17. ATHENA J8 head of section’s tasks (1): 1.Ensure that funds are kept safely at all times : Bank account : - OHQ: in euros in a bank with its head office in a Member State - in theatre: preferably the same NB : ask Commission delegation or Embassy for advice Cash : - in a safe :  one person knows the code or has the key.  2 nd set in a sealed envelope by the HQ’s Commander  code changed every 6 months or when hand- over - armed escort when SOFA allows

18. ATHENA J8 head of section’s tasks (2): 2.Check the eligibility of the expenditure : Common costs or Nation Borne Costs (NBCs) ? Temptation to have ATHENA assume all expenditure But no contracting possible by EU chain of command in areas which are neither common costs nor NBCs J8 should ask administrator for interpretation when in doubt J8 may request that new items be regarded as common costs or NBCs → Special Committee will decide

19. ATHENA J8 head of section’s tasks (3): 3.Ensure that rules and budget are complied with request derogations : Temptation to buy first, then present the bill ex post Other sections (J1, J4, J6, etc.) should be made aware by J8 Main rules : Contracts must be in writing and signed by J8 procurement rules: competition Budget : one allocation per HQ budget commitment before start any expenditure Derogations, transfers, etc. : if needed, ask the administrator

20. ATHENA J8 head of section’s tasks (4): 4.Give is assent to contracts : J8 may delegate the power to sign contract (for instance to supporting department) But this is not encouraged Impressed accounts may be established J8 of HQ concerned must personally give his assent above “higher threshold”  137K€ for supplies  211K€ for services  5.278 millions for works

21. ATHENA J8 head of section’s tasks (5): 5.Ensure that inventories are kept up to date : Inventory of equipment : J8 must ensure that it is kept up to date J8 must check physically on hand-over and each year Inventory of fixture of land and buildings With local authorities, who should sign in Photos, maps, On arrival and departure → Avoid unfounded claims on departure Other records : journal of purchases (accounting software) appointments, delegations granted, contracts, bank accounts, derogations from rules

22. ATHENA J8 head of section’s tasks (6): 6.Check Issue SOPs to organise his / her section : OHQ for the whole operation OHQ’s J8 must check that J8s in subordinate HQs fulfil their tasks Local J8 for each HQ 3 SOPs: -organisation of the chain regarding the budget -procurement -organisation of the chain on call for funds, payments and accounting

23. ATHENA J8 head of section’s tasks (7): 7.Organise the internal control / audit system : J8 must organise control / audit system The Operation Commander must appoint an internal auditor for the operation Every J8 must keep the administrator directly informed of any event or policy that may impact on costs financed through ATHENA (common costs +NBCs) Administrator can provide J8 with support Auditors appointed by Special Committee or Administrator have access to all premises and documents at any time

24. ATHENA J8 head of section’s tasks (8): 8.Provide implementation reports : 1)Before a budget is adopted Spending on the basis of the reference amount But spending recorded with same breakdown as future budget MONTHLY reports to Special Committee through administrator Same structure as the budget 2)When a budget has been adopted : Spending on the basis of the reference amount QUATERLY reports, within one month after end of each quarter Budget n, n-1 etc. + justifications + cash flow table 3)Annual accounts: by 31 March of the following year Budget implementation + accrual basis + balance sheet + cash flow + changes in capital

25. ATHENA Concepts for J8 implementation and reporting Budget commitment : – reserve appropriations for an intended expenditure – avoid that expenditure exceeds budget Legal commitment : contract or purchase order Payment : payment actually made to third person – not payment order, but actual disbursement

26. ATHENA End of year : ATHENA has an annual budget + annual accounts until 31 Dec. at end of year : – Budget commitments, legal commitments and payments made during year – Legal commitments not yet paid at end of year => The administrator will carry appropriations over to the following year Payments made in year n in advance on year n+1 Bank statements from the bank to the College of auditors Appropriations not used to cover legal commitements in year n, which would be useful in year n+1 => submit to Special Committee for carryover to year n+1

27. ATHENA ?