ATHENA

EU MILITARYEU MILITARYOPERATIONS :OPERATIONS :

ACTIVEACTIVEPHASE / J8 TASKSPHASE / J8 TASKS

ATHENA

WHEN?

- When the Operation Commander is officially in office

- Usually from adoption until repeal by Council of EU of the Joint Action of the operation

CHANGES FROM PREPARATORY PHASE ?

- List of common costs : ATHENA ANNEX III

- Operation Commander is authorising officer

Active phase :

ATHENA

Active phase :

1) Budget : estimates and adoption

2) Budget management : amending budgets,

transfers, carryovers

3) Budget implementation

4) Imprest accounts

5) Inventories

6) Land, buildings, infrastructure

7) Reports and accounting

8) Organisation and tasks of the J8s

ATHENA

• ATHENA has annual budgets :

- A budget for an operation is a new Title in this budget(either included in annual draft budget in Octoberor as a supplementary budget during the year

- A budget for an operation may be adopted at any time(not only during the active phase of an operation)

• ESTIMATES :

- by OHQ and FHQ J8s with other branches,

the Administrator and the EU Military Staff

- EARLY: Contributions payable within 30 days!• ADOPTION :

- Presentation by OHQ J8, Administrator, FHQ J8

- Adoption by the Special Committee acting unanimously

1) Budget : estimates & adoption

ATHENA

Budget:- 1 Title per operation, divided into chapters and articles- Chain of command free to sub-divide further - the budget is authorised for one year (until 31st

December)

Structure: Title N Operation X- Chapter 1 : General Support

- Article : Employment of Personnel - Article : Administration and office-accommodation support, etc.

- Chapter 2 : Mission Support- Article : Transport and travel- Article : CIS, etc

- Chapter 84 : Provisional appropriations- Article : Provisional appropriations – Common costs

- Article : Pre-financing of NBCs

2) Amending budgets, transfers & carryovers

ATHENA

Amending budget :- If total of appropriations should be changed, same

procedure as initial budget, at all times- Requires Special Committee's unanimous approval

Transfert of appropriations : - When total appropriations remains unchanged :

redeployment of appropriations• During 3 months following official launch of operation :

- by Operation Commander• Thereafter :

- between subdivisions below the level of article: - by chain of command, at all times

• Between articles or chapters : - by administrator (himself or with Special

Committee’s authorisation)

2) Amending budgets, transfers & carryovers

ATHENA

Carryovers :• Purpose: extend appropriations beyond 31 December to next year• No limit to carryovers over several years,

- but should not be done if it can be avoided- new budget should then be requested

2 kinds of carryovers: • If a legal commitment (contract or purchase order) exists

- a debt must be paid- the OHQ J8 checks the amounts to be paid during the next year- the Administrator decides- Should be done as early as possible to allow for invoices to be

paid• If no legal commitment exists

- appropriations may be carried over to the next year (n+1)- the OHQ J8 estimates needs by 15 February of year n+1 Article- the Administrator submits proposal to the Special Committee- Special Committee decides by 15 March of year n+1

2) Amending budgets, transfers & carryovers

ATHENA

1. Organisation between various HQs J8s :• Decentralisation of implementation

- FHQ and subordinate HQs should have a share of the budget delegated to them

• Centralisation through reporting- The OHQ should be informed regularly and have

an overview- The OHQ may then reallocate the budget, request

transfers etc... For OHQ J8 to organise with subordinate J8s

2. Between branches and supporting departments: - Ensure that J8 of the relevant HQ

- authorises expenditure - or gives proper delegation in writing

Avoid expenditure by non-authorised personnel

3) Budget implementation

ATHENA

3 phases1) Budgetary commitment :

• aim : reserve appropriations for future, intended expenditure• must be done before spending starts, or budget may be

exceeded

2) Legal commitment :• contract or purchase order• may be made only by relevant HQ’s J8 or (below the « higher

threshold ») on the J8’s delegation

3) Payment :• joint signature of 2 officers• payment on account before work starts or when progress made

allowed• final balance : when delivery certified in conformity with contract

/ order + invoice

3) Budget implementation

ATHENA

• For budget implementation in 2 cases :

1. when impossible to have an authorising officer together with an accounting officer (isolation)

2. when repeated payments below 5000 euros each for same type of expenditure. Then, payment against invoices (no contract) possible

• Decision by authorising officer & accounting officer together :

- justifications and purpose, - limits to spending (global and per item)- reporting

4) Imprest accounts

ATHENA

4) Imprest accounts• Imprest administrators: commissioned officers or

NCOs• A budgetary commitment must be made for the

imprest• Funds may be provided to the imprest administrator• Imprest must provide regularly justifications

(invoices, bank statement or cash balance)• Replenishment of funds when expenditure justified• Accounting and authorising officer responsible for

checking

ATHENA

5) Inventories :• J8 must ensure that inventories are kept up-to-date

• Procedure must be locally organised

- ensure that each item is entered on inventory when purchased see with other branches, depot, warehouse, etc. reconcile with invoices (accounting software)

• All equipments with a normal duration of more than 1 year- No limit based on value, only on normal duration

• Content:

Description of items and number

Location / Person or unit responsible

Purchase value

Date of acceptance (for amortisation)

• Each item should wear a label showing its number. corresponding number in inventory.

ATHENA

6) Land, buildings, infrastructures :

• Difficulty: often made available by local authorities=> Temptation of diplomatic, informal arrangements

• However, certainty on costs should be ensured• Therefore, J8 must ensure:

- a (purchase or rental) contract in writing- an inventory of fixture in writing

- on arrival and departure- co-signed with landlord- with photos and maps

• Infrastructure: particular sensitivity of Special Committee=> Keep in proportion to duration of operation

ATHENA

7) Reports & accounting1. Reports :• During active phase : - once every quarter- within one month following end of each quarter- budget implementation

(budget commitments, legal commitments, payments)

+ cash flow table (funds received, funds paid, changes in cash and bank accounts balances)

2. Accounting (accounting software) :- in theatre: at least budgetary accounting- for the whole operation: accrual basis, with balance

sheet

=> organise work sharing between various levels

ATHENA

8) Organisation & tasks of the J8s :

• Normally, at least 4 officers1) Head of section = authorising officer2) Budget officer 3) Procurement officer4) Accounting officer

• Accounting officer : incompatible with authorising officer

• Other roles can be cumulated by same officers if fewer than 4 officers available

At least 2 officers

ATHENA

J8 Head of section’s tasks :(Financial rules, Part I, Article 6)

1) Ensure that funds are kept safely at all times

2) Check the eligibility of expenditure

3) Ensure that rules (on procurement, etc.) and budget are complied with, request derogations

4) Give his assent to contracts

5) Ensure that inventories are kept up-to-date

6) Issue SOPs to organise his / her section

7) Organise the internal control / audit system

8) Provide implementation reports

ATHENA

J8 head of section’s tasks (1):1. Ensure that funds are kept safely at all times :• Bank account :

- OHQ: in euros in a bank with its head office in a Member State

- in theatre: preferably the sameNB : ask Commission delegation or Embassy for advice

• Cash :- in a safe :

one person knows the code or has the key. 2nd set in a sealed envelope by the HQ’s

Commander code changed every 6 months or when hand-

over- armed escort when SOFA allows

ATHENA

J8 head of section’s tasks (2):

2. Check the eligibility of the expenditure :

Common costs or Nation Borne Costs (NBCs) ?

• Temptation to have ATHENA assume all expenditure

• But no contracting possible by EU chain of command in areas which are neither common costs nor NBCs

• J8 should ask administrator for interpretation when in doubt

• J8 may request that new items be regarded as common costs or NBCs

→ Special Committee will decide

ATHENA

J8 head of section’s tasks (3):3. Ensure that rules and budget are complied with request

derogations :

Temptation to buy first, then present the bill ex post

• Other sections (J1, J4, J6, etc.) should be made aware by J8

• Main rules :

Contracts must be in writing and signed by J8

procurement rules: competition

• Budget :

one allocation per HQ

budget commitment before start any expenditure

Derogations, transfers, etc. :

if needed, ask the administrator

ATHENA

J8 head of section’s tasks (4):

4. Give is assent to contracts :• J8 may delegate the power to sign

contract (for instance to supporting department)

But this is not encouraged• Impressed accounts may be established• J8 of HQ concerned must personally give

his assent above “higher threshold” 137K€ for supplies 211K€ for services 5.278 millions for works

ATHENA

J8 head of section’s tasks (5):

5. Ensure that inventories are kept up to date :

• Inventory of equipment : J8 must ensure that it is kept up to date J8 must check physically on hand-over and each year

• Inventory of fixture of land and buildings

With local authorities, who should sign in Photos, maps, On arrival and departure

→ Avoid unfounded claims on departure• Other records :

journal of purchases (accounting software) appointments, delegations granted, contracts, bank accounts,

derogations from rules

ATHENA

J8 head of section’s tasks (6):

6. Check Issue SOPs to organise his / her section :

• OHQ for the whole operation• OHQ’s J8 must check that J8s in subordinate

HQs fulfil their tasks• Local J8 for each HQ• 3 SOPs:- organisation of the chain regarding the budget- procurement- organisation of the chain on call for funds,

payments and accounting

ATHENA

J8 head of section’s tasks (7):

7. Organise the internal control / audit system :

• J8 must organise control / audit system• The Operation Commander must appoint an internal

auditor for the operation• Every J8 must keep the administrator directly informed

of any event or policy that may impact on costs financed through ATHENA (common costs +NBCs)

Administrator can provide J8 with support

• Auditors appointed by Special Committee or Administrator have access to all premises and documents at any time

ATHENA

J8 head of section’s tasks (8):

8. Provide implementation reports :1) Before a budget is adopted

Spending on the basis of the reference amount But spending recorded with same breakdown as future budget MONTHLY reports to Special Committee through administrator Same structure as the budget

2) When a budget has been adopted : Spending on the basis of the reference amount QUATERLY reports, within one month after end of each quarter Budget n, n-1 etc. + justifications + cash flow table

3) Annual accounts: by 31 March of the following year Budget implementation + accrual basis + balance sheet + cash

flow + changes in capital

ATHENA

Concepts for J8 implementation and reporting

• Budget commitment :

– reserve appropriations for an intended

expenditure

– avoid that expenditure exceeds budget

• Legal commitment : contract or purchase order

• Payment : payment actually made to third person

– not payment order, but actual disbursement

ATHENA

End of year :ATHENA has an annual budget+ annual accounts until 31 Dec.

• at end of year :– Budget commitments, legal commitments and payments

made during year

– Legal commitments not yet paid at end of year=> The administrator will carry appropriations over to the

following year

• Payments made in year n in advance on year n+1• Bank statements from the bank to the College of auditors• Appropriations not used to cover legal commitements in

year n, which would be useful in year n+1=> submit to Special Committee for carryover to year n+1

ATHENA

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