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.ReferencesCouncil decision 2008/975/CFSP of 18 May December 2008Chapter 10, Accounting and InventoryChapter 11, Audit and Presentation of AccountsAct of the Special Committee - Financial Rules (as of JAN2009)Part I, Article 8, 9 and 10describing the tasks of Budget-, Contracting- and Accounting OfficersPart I, Chapter VIII – Accounting
4 Introduction 3. Principles and Standards Unitary (consistent) Chart of accountsDouble entry (method of) book-keepingRecording “day by day” and “operation by operation”EURO - Accounting currencySegregation of the dutiesExclusive responsibility of accounting officer for treasuryMain 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 andthe final report has left the HQ;……and thus it lastsfrom Preparatory Phasethrough Active Phaseto end of Winding Up Phase.
6 Agenda Principle and standards Actors, tasks, work flow Accounting documentsChart of accountsBudgetary and general accountingAccounting information system
7 Principle and standards (in accordance with Financial Regulation)article 42Accounts are kept iaw IPSAS (International Public Sector Accounting Standards)accrual, comparable, consolidated statement, fair and true view, materialitytaking in account the specific nature of military operation.article 44Entries in the accounts made by using the double entry method in the currency of €equivalence between amount debited and creditedtransaction in a currency other than € requires the € counterpartarticle 45Accounting record shall specify the origin, content and booking reference of each data item and shall refer to relevant supporting documentsReflect.....and therefore they are following KLICK....based on KLICK......7
8 Principle and standards (iaw Financial Regulation)article 46Supporting documents are the basis and the proof for any entry into the accountsproduced on paper or on a medium which guarantees the reliability of thecontentSupporting documents are, e.g.purchase order, invoicecontract,agreement,property delivery receipt.article 47Validation 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 validationintroduction of invoicelinking of invoice to certain commitment and 1st validationvalidation of Payment orderany cash transactioninvoicing and introduction of recovery ordersarticle 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 documentsChart of accountsBudgetary and general accountingAccounting information system
11 In terms of Budgetary accounting Actors and tasksIn terms of Budgetary accountingTask AUT INIInitiating of budgetary/legal commitment xValidation of budgetary/legal commitment xIntroduction of Third Party data xChecking and initiating of invoice xLinking invoice and commitment xValidation of linking xPreparation of Payment Order xValidation of Payment Order xDe-Committing/Closing of Commitment xValidation of De-committing/Closing xProduction of Budget Execution Report xAccounting OfficerChecking and validation of third party data, Payment Order, invoiceand supporting documents for cash transaction xReflect.....and therefore they are following KLICK....based on KLICK......
12 In terms of Cash transaction Actors and tasksIn terms of Cash transactionTask ACT AUTChecking and validation of the PaymentOrder, invoice and supporting documentsfor cash transaction xPreparation of the document for the cashtransaction (cash on hand or transfer) xSigning the cash transaction x xRecording of cash disbursing xChecking of bank statement xRecording of bank transfer xReconciliation bank/cash xTreasury management xProduction of Cash Flow Table xReflect.....and therefore they are following KLICK....based on KLICK......
13 In terms of general accounting Actors and tasksIn terms of general accountingTask INI ACTEnsuring that the correct sub-article is used for:Initiating of budgetary/legal commitment xIntroduction of invoice xLinking invoice and commitment xDe-Committing/Closing of Commitment xReconciliation of the related ledgers xReflect.....and therefore they are following KLICK....based on KLICK......
14 in terms of fixed assets Actors and tasksin terms of fixed assetsTask PAO AUT ACTEstablishing the inventory of fixed assets xAssisting the establishment xAuthorising the sale/disinvestment of fixed assets xUpdating the inventory related to:Receiving of fixed assets xMovement of fixed assets xDisinvestment of fixed assets xSubmission of the supporting documents to theINI for introduction into the accounts xDepreciation of fixed assets xReconciliation of the fixed assets accounts xProduction of summary fixed assets report xReflect.....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 officerContracting officerAccounting officerProperty accounting officerb) a workflow covering all areas of accounting as are:Implementation of the budgetIntroduction of commitments, invoices and recovery ordersIntroduction of non-consumable goods received and its linking to the certain invoiceLinking of commitments and invoicesValidation of payments (Payment Order)…………………………………………………………………………Performance of cash payment documentsDisbursingBank transfers
16 Workflow for contracts and commitments INITIATOR AUTHORIZING OFFICER Creation of the Commitment“RETOUR”(Back forCorrections)RefuseAUTHORIZING OFFICERCheck and validation of entriesEnd of processValidated and recorded(End of Workflow)
18 Agenda Principle and standards Actors, tasks, workflow Accounting documentsChart of accountsBudgetary and general accountingAccounting information system
19 Documents Accounting documents: Journals and a General ledger they shall consist of electronic documentskeeping all transactionsensuring 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 evidenceThe 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 accountsa reconciliation to bank accounts is necessaryInventory ... 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 accountsBudgetary and general accountingAccounting information system
21 Chart of accountsChart 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 codeAnalytical Purpose Classification of the entry(debit, credit, cost, asset)0220 – CIS – Purchase xxxx2 - asset– Service xxxx1 - expense– License xxxx2 - asset– unspecified xxxx1 - expenseTherefore:Uniquely linked to each other and unchangeable.
22 Agenda Principle and standards Actors and tasks Accounting documents Chart of accountsBudgetary and general accountingAccounting information system
23 Budgetary and general accounting Budgetary accountingBudget implementation and executioncash based reportGeneral accountingCredited/debited and classified accountsaccrual based accountsWill 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 accountsBudgetary and general accountingAccounting information system
25 Accounting information system Financial Rules, article 52:Requires an accounting information system available to OHQ and FHQensuring reliability, security, inviolability and ability to provide standardised reportsand accounts;in addition, this system shallbe easy to usebe useable in theatre in a simplified formbe compatible with accounting information system used on different levels ofthe operationenable production of consolidated accounts at the central level of ATHENAmechanism
26 What do we need as precondition Budget Payments Contracts (2009) FinancialData(Reports)AssetsYou need anAccounting Software
27 Deployable : At least 3 sites Athena (Brussels), OHQ, FHQ Transfers and consolidations must follow the chain of commandCommunication aspectsAthenaFHQOHQFHQ
29 ATHENA accounting tool (Deployed in EUTM SOMALIA) Public Integrated Accounting (PIA)Multi-Operations & multi-HQ sitesDouble-entry public bookkeepingOne single book-entry Simultaneous update of charts (general, budgetary and analytical)and Third partiesBook-entries inter-HQsMulti-currencySpecificitiesIntegration of all ATHENA functionalitiesIncorporation of the necessary controlsAccess to dataActivities to be performed by specific roles
30 Functional use EPM ECM EBM Assets Financial Data PIA Accounting SoftwareRevenue Management
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 software8 – 1 Accounting8 – 2 Administrative and accountancy documents8 – 3 Accounting software9 – 2 Closure of accountsand SOP like:Model of accounting SOPModel of cash flow management SOP