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EU MILITARY OPERATIONS - ACCOUNTING. [email protected] +32 2 281 2014. Where do you think the information needed for the reports is coming from ? Accounting. Introduction. Purpose of - PowerPoint PPT Presentation
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ATHENA
EU MILITARYEU MILITARYOPERATIONS OPERATIONS
--ACCOUNTINGACCOUNTING
[email protected]+32 2 281 2014
ATHENA
Where do you think the Where do you think the information needed for the information needed for the
reports is coming fromreports is coming from
??AccountingAccounting
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
ATHENA
Introduction3. 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 HQ’s) • Authorizing Officer (AUT)• Initiating (Budget) Officer (INI)• Accounting Officer (ACT)• Property Accounting Officer (PAO)
ATHENA
IntroductionAccounting, 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 Phasethrough Active Phaseto end of Winding Up Phase.
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
ATHENA
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, materiality taking 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 credited transaction in a currency other than € requires the € counterpart
• article 45Accounting record shall specify the origin, content and booking reference of each data item and shall refer to relevant supporting documents
ATHENA
Principle and standards(iaw Financial Regulation)
• article 46Supporting 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 47Validation of booking entry is required, prohibiting any change or deletion.
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.
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
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
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
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
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
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
ATHENA
Workflow
INITIATOR Creation of the Commitment
AUTHORIZING OFFICERCheck and validation of entries
Validated and recorded(End of Workflow)
“RETOUR”(Back for
Corrections)
Refuse
End of process
for contracts and commitments
ATHENAATHENA
WorkflowPayments
INITIATOR Checking and introduction of the invoice and supporting
documents, linking with the existing commmitment
AUTHORIZSING OFFICERCheck of invoices and supporting documents, validation
of entries,
End of Budget executionWorkflow
“RETOUR”Back for
Corrections
“RETOUR”Back for
corrections
ACCOUNTANTFinal validation of book entries
Start of the cash payment execution
Outcome:
Outcome: Proposal for Payment Order
Refuse
PROPERTY ACCOUNTING
OFFICER
Outcome: Validation of and Signature on Payment Order
Transfer or payment form
Joint signature of authorising andaccounting officer
Bank or Cash Box
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
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.
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
ATHENA
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 code . Analytical Purpose Classification of the entry
(debit, credit, cost, asset)0220 – CIS 0220 1000 – Purchase 2402 0220 1000 xxxx2 - asset
0220 2000 – Service 6005 0220 2000 xxxx1 - expense 0220 3000 – License 2110 0220 3000 xxxx2 - asset 0220 9900 – unspecified 6005 0220 9900 xxxx1 - expense
Therefore:Uniquely linked to each other and unchangeable.
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
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
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
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
ATHENA
What do we need
You need anAccounting Software
Assets
Budget Payments Contracts
(2009)
FinancialData
(Reports)
as precondition
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
ATHENA
ATHENA accounting tool (Deployed in EUTM SOMALIA)
Financial disputesmanagement
Payments and cash flow management
Reports
ECM
Contract Management
EBM
Budget Management
EPM
Purchase management
Third party management
Stock / AssetManagement
Analytical accounting
General accounting
PIA
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)
ATHENA
Functional use
PIAAccounting Software
Revenue Management
FinancialData
Assets
EBM EPM ECM
ATHENA
Functional architecture
Brussels
ATHENA
OHQ OHQ OHQ OHQ OHQ
FHQ FHQ
Specific parameterisation(including Workflows)
ATHENA
Functional architectureAthena server
PIAEPM Title 1
Athena BXLCommon costs
AthenaConsolidation
ConsolidationOperation A
“Council network”
Local dBaseFHQ BEBMEPMECMReporting
ConsolidationOperation B
Local dBaseFHQ DEBMEPMECMReporting
Data Transfer
OHQMission A
FHQMission A
OHQMission B
FHQMission B
Data Transfer
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 software8 – 1 Accounting8 – 2 Administrative and accountancy documents8 – 3 Accounting software9 – 2 Closure of accounts
and SOP like:
Model of accounting SOPModel of cash flow management SOP
ATHENA
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