1. EU MILITARY OPERATIONS - ACCOUNTING

2. Where do you think the information needed for the reports is coming from?
Accounting

3. Introduction Purpose of References
keeping accounts of cash transfers received, of expenditures committed and payments made, as well as inventory of the fixed assets financed by ATHENA budget,
recording all financial transaction in the execution of Common Costs and through ATHENA pre-financed expenditures,
enabling the production of financial reports and annual accounts.
References
Council decision 2008/975/CFSP of 18 May December 2008
Chapter 10, Accounting and Inventory
Chapter 11, Audit and Presentation of Accounts
Act of the Special Committee - Financial Rules (as of JAN2009)
Part I, Article 8, 9 and 10
describing the tasks of Budget-, Contracting- and Accounting Officers
Part I, Chapter VIII – Accounting

4. Introduction 3. Principles and Standards
Unitary (consistent) Chart of accounts
Double entry (method of) book-keeping
Recording “day by day” and “operation by operation”
EURO - Accounting currency
Segregation of the duties
Exclusive responsibility of accounting officer for treasury
Main actors (within the HQ’s)
Authorizing Officer (AUT)
Initiating (Budget) Officer (INI)
Accounting Officer (ACT)
Property Accounting Officer (PAO)

5. Introduction .....will be executed consistently …..
Accounting, starts.....
by the first budgetary operation (even in PrepPhase)
.....will be executed consistently …..
until the last record is done,
the accounts are closed and
the final report has left the HQ;
……and thus it lasts
from Preparatory Phase
through Active Phase
to end of Winding Up Phase.

6. Agenda Principle and standards Actors, tasks, work flow
Accounting documents
Chart of accounts
Budgetary and general accounting
Accounting information system

7. Principle and standards
(in accordance with Financial Regulation)
article 42
Accounts are kept iaw IPSAS (International Public Sector Accounting Standards)
accrual, comparable, consolidated statement, fair and true view, materiality
taking in account the specific nature of military operation.
article 44
Entries in the accounts made by using the double entry method in the currency of €
equivalence between amount debited and credited
transaction in a currency other than € requires the € counterpart
article 45
Accounting record shall specify the origin, content and booking reference of each data item and shall refer to relevant supporting documents
Reflect.....and therefore they are following KLICK
....based on KLICK...... 7

8. Principle and standards
(iaw Financial Regulation)
article 46
Supporting documents are the basis and the proof for any entry into the accounts
produced on paper or on a medium which guarantees the reliability of the
content
Supporting documents are, e.g.
purchase order, invoice
contract,
agreement,
property delivery receipt.
article 47
Validation of booking entry is required, prohibiting any change or deletion.
Reflect.....and therefore they are following KLICK
....based on KLICK...... 8

9. Principle and standards
(iaw Financial Regulation)
article 49 (3.)
Accounting operations are to be recorded day by day and operation by operation.
Financial operations are:
introduction/decommiting/closing of commitment and their validation
introduction of invoice
linking of invoice to certain commitment and 1st validation
validation of Payment order
any cash transaction
invoicing and introduction of recovery orders
article 49 (6.)
Monthly centralising of all records.
article 49 (8.)
Periodical reconciliation.
Reflect.....and therefore they are following KLICK
....based on KLICK...... 9

10. AGENDA Principle and standards Actors, tasks, workflow
Accounting documents
Chart of accounts
Budgetary and general accounting
Accounting information system

11. In terms of Budgetary accounting
Actors and tasks
In terms of Budgetary accounting
Task AUT INI
Initiating of budgetary/legal commitment x
Validation of budgetary/legal commitment x
Introduction of Third Party data x
Checking and initiating of invoice x
Linking invoice and commitment x
Validation of linking x
Preparation of Payment Order x
Validation of Payment Order x
De-Committing/Closing of Commitment x
Validation of De-committing/Closing x
Production of Budget Execution Report x
Accounting Officer
Checking and validation of third party data, Payment Order, invoice
and supporting documents for cash transaction x
Reflect.....and therefore they are following KLICK
....based on KLICK......

12. In terms of Cash transaction
Actors and tasks
In terms of Cash transaction
Task ACT AUT
Checking and validation of the Payment
Order, invoice and supporting documents
for cash transaction x
Preparation of the document for the cash
transaction (cash on hand or transfer) x
Signing the cash transaction x x
Recording of cash disbursing x
Checking of bank statement x
Recording of bank transfer x
Reconciliation bank/cash x
Treasury management x
Production of Cash Flow Table x
Reflect.....and therefore they are following KLICK
....based on KLICK......

13. In terms of general accounting
Actors and tasks
In terms of general accounting
Task INI ACT
Ensuring that the correct sub-article is used for:
Initiating of budgetary/legal commitment x
Introduction of invoice x
Linking invoice and commitment x
De-Committing/Closing of Commitment x
Reconciliation of the related ledgers x
Reflect.....and therefore they are following KLICK
....based on KLICK......

14. in terms of fixed assets
Actors and tasks
in terms of fixed assets
Task PAO AUT ACT
Establishing the inventory of fixed assets x
Assisting the establishment x
Authorising the sale/disinvestment of fixed assets x
Updating the inventory related to:
Receiving of fixed assets x
Movement of fixed assets x
Disinvestment of fixed assets x
Submission of the supporting documents to the
INI for introduction into the accounts x
Depreciation of fixed assets x
Reconciliation of the fixed assets accounts x
Production of summary fixed assets report x
Reflect.....and therefore they are following KLICK
....based on KLICK......

15. Workflow To ensure the daily booking and accounting you need
a) a workflow including all actors as are:
Budget officer
Contracting officer
Accounting officer
Property accounting officer
b) a workflow covering all areas of accounting as are:
Implementation of the budget
Introduction of commitments, invoices and recovery orders
Introduction of non-consumable goods received and its linking to the certain invoice
Linking of commitments and invoices
Validation of payments (Payment Order)
…………………………………………………………………………
Performance of cash payment documents
Disbursing
Bank transfers

16. Workflow for contracts and commitments INITIATOR AUTHORIZING OFFICER
Creation of the Commitment
“RETOUR”
(Back for
Corrections)
Refuse
AUTHORIZING OFFICER
Check and validation of entries
End of process
Validated and recorded
(End of Workflow)

18. Agenda Principle and standards Actors, tasks, workflow
Accounting documents
Chart of accounts
Budgetary and general accounting
Accounting information system

19. Documents Accounting documents: Journals and a General ledger
they shall consist of electronic documents
keeping all transactions
ensuring the availability of all data necessary for reports and accounts.
Accounts:
Budgetary Execution Report,
Financial Statements (statement of financial performance; statement of financial position; cash flow statement)
Inventory:
Keeping the information of fixed assets financed through ATHENA and used for the operation.
Supporting documents:
purchase order, contract, agreement,
property delivery receipt.
Journal and general ledger..... They shall offer a full guarantees for us as evidence
The accounting operations shall be recorded in the journal day by day;
these entries shall be transferred to the general ledger, structured according to the chart of accounts
a reconciliation to bank accounts is necessary
Inventory ... Requires all information concerning date and price of purchase, beginning and end of use, user, range and rate of depreciation as well information concerning write-off

20. Agenda Principle and standards Actors and tasks Accounting documents
Chart of accounts
Budgetary and general accounting
Accounting information system

21. Chart of accounts
Chart of accounts (COA) are given by ATHENA and are binding for all levels Budget execution and its accounting.
COA ensures consistency, budgetary and general accounting and as well enabling consolidated accounts.
Structure of the chart:
Budget article Sub-Article General account code
Analytical Purpose Classification of the entry
(debit, credit, cost, asset)
0220 – CIS – Purchase xxxx2 - asset
– Service xxxx1 - expense
– License xxxx2 - asset
– unspecified xxxx1 - expense
Therefore:
Uniquely linked to each other and unchangeable.

22. Agenda Principle and standards Actors and tasks Accounting documents
Chart of accounts
Budgetary and general accounting
Accounting information system

23. Budgetary and general accounting
Budgetary accounting
Budget implementation and execution
cash based report
General accounting
Credited/debited and classified accounts
accrual based accounts
Will not be performed within the operation until a compatible accounting information system is delivered for the use in OHQ and/or FHQ

24. Agenda Principle and standards Actors and tasks Accounting documents
Chart of accounts
Budgetary and general accounting
Accounting information system

25. Accounting information system
Financial Rules, article 52:
Requires an accounting information system available to OHQ and FHQ
ensuring reliability, security, inviolability and ability to provide standardised reports
and accounts;
in addition, this system shall
be easy to use
be useable in theatre in a simplified form
be compatible with accounting information system used on different levels of
the operation
enable production of consolidated accounts at the central level of ATHENA
mechanism

26. What do we need as precondition Budget Payments Contracts (2009)
Financial
Data
(Reports)
Assets
You need an
Accounting Software

27. Deployable : At least 3 sites Athena (Brussels), OHQ, FHQ
Transfers and consolidations must follow the chain of command
Communication aspects
Athena
FHQ
OHQ
FHQ

28. ATHENA accounting tool (Deployed in EUTM SOMALIA)
Financial disputes
management
Payments
and cash flow
Reports
ECM
Contract
Management
EBM
Budget
EPM
Purchase
Third party
Stock / Asset
Analytical
accounting
General P I A

29. ATHENA accounting tool (Deployed in EUTM SOMALIA)
Public Integrated Accounting (PIA)
Multi-Operations & multi-HQ sites
Double-entry public bookkeeping
One single book-entry
 Simultaneous update of charts (general, budgetary and analytical)
and Third parties
Book-entries inter-HQs
Multi-currency
Specificities
Integration of all ATHENA functionalities
Incorporation of the necessary controls
Access to data
Activities to be performed by specific roles

30. Functional use EPM ECM EBM Assets Financial Data PIA
Accounting Software
Revenue Management

31. Functional architecture
ATHENA
Brussels
OHQ
OHQ
OHQ
OHQ
OHQ
FHQ
FHQ
Specific parameterisation
(including Workflows)

32. Functional architecture
“Council network”
Functional architecture
Athena server
PIA
EPM
Athena
Consolidation
Title 1
Athena BXL
Common costs
Consolidation
Operation A
Consolidation
Operation B
OHQ
Mission A
FHQ
Mission A
OHQ
Mission B
FHQ
Mission B
Data Transfer
Data Transfer
FHQ D
Local dBase
FHQ B
Local dBase
EBM
EPM
ECM
Reporting
EBM
EPM
ECM
Reporting

33. ATHENA operating manual
Athena Operational Manual has been prepared to support any actor in any cases of performing the “Accounting” tasks in an operation.
6 -11 Inventory and related software
8 – 1 Accounting
8 – 2 Administrative and accountancy documents
8 – 3 Accounting software
9 – 2 Closure of accounts
and SOP like:
Model of accounting SOP
Model of cash flow management SOP

34. ?