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

2. 3.7 Timescales for future implementation
26 April 2012
DG Budget Accounting Unit C2

3. 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

4. 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

5. 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

6. 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

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

8. 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

9. 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

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

11. 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

12. 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

13. 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

14. 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

15. 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

16. DG Budget Accounting Unit C2
3.10 Financial and technical support – for training, communication, etc.
* Estimated external ressources ( )
- for development of the new IT System: approx Mio €
- 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