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ATHENA EU MILITARY OPERATIONS-ACCOUNTING +32 2 281 2014.

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Presentation on theme: "ATHENA EU MILITARY OPERATIONS-ACCOUNTING +32 2 281 2014."— Presentation transcript:

1 ATHENA EU MILITARY OPERATIONS-ACCOUNTING Georgios.kouvidis@consilium.europa.eu +32 2 281 2014

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

3 ATHENA Introduction 1.Purpose of 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. 2.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 ATHENA 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 4. Main actors (within the HQs) Authorizing Officer (AUT) Initiating (Budget) Officer (INI) Accounting Officer (ACT) Property Accounting Officer (PAO)

5 ATHENA Introduction 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 ATHENA Agenda 1.Principle and standards 2.Actors, tasks, work flow 3.Accounting documents 4.Chart of accounts 5.Budgetary and general accounting 6.Accounting information system

7 ATHENA 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

8 ATHENA 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.

9 ATHENA 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.

10 ATHENA AGENDA 1.Principle and standards 2.Actors, tasks, workflow 3.Accounting documents 4.Chart of accounts 5.Budgetary and general accounting 6.Accounting information system

11 ATHENA Actors and tasks Task AUT INI. In terms of Budgetary accounting 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

12 ATHENA Actors and tasks Task ACT AUT. In terms of Cash transaction 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

13 ATHENA Actors and tasks Task INI ACT. In terms of general accounting 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

14 ATHENA Actors and tasks Task PAO AUT ACT. in terms of fixed assets 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

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

17 ATHENA

18 Agenda 1.Principle and standards 2.Actors, tasks, workflow 3.Accounting documents 4.Chart of accounts 5.Budgetary and general accounting 6.Accounting information system

19 ATHENA Accounting documents: Journals and a General ledger Documents 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.

20 ATHENA Agenda 1.Principle and standards 2.Actors and tasks 3.Accounting documents 4.Chart of accounts 5.Budgetary and general accounting 6.Accounting information system

21 ATHENA 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 articleSub-ArticleGeneral account code. Analytical PurposeClassification of the entry (debit, credit, cost, asset) 0220 – CIS0220 1000 – Purchase 2402 0220 1000 xxxx2 - asset 0220 2000 – Service 6005 0220 2000 xxxx1 - expense 0220 3000 – License2110 0220 3000 xxxx2 - asset 0220 9900 – unspecified6005 0220 9900 xxxx1 - expense Therefore: Uniquely linked to each other and unchangeable.

22 ATHENA Agenda 1.Principle and standards 2.Actors and tasks 3.Accounting documents 4.Chart of accounts 5.Budgetary and general accounting 6.Accounting information system

23 ATHENA 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 Budgetary and general accounting

24 ATHENA Agenda 1.Principle and standards 2.Actors and tasks 3.Accounting documents 4.Chart of accounts 5.Budgetary and general accounting 6.Accounting information system

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

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

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

29 ATHENA 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 Public Integrated Accounting (PIA) ATHENA accounting tool (Deployed in EUTM SOMALIA)

30 ATHENA Functional use PIA Accounting Software Revenue Management Financial Data Assets EBM EPMECM

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

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

33 ATHENA 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 ATHENA ?


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