EU MILITARY

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EU MILITARY OPERATIONS ACTIVE PHASE / J8 TASKS
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Active phase

• 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

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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

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1) Budget estimates adoption

• ATHENA has annual budgets
• - A budget for an operation is a new Title in
  this budget
• (either included in annual draft budget in
  October
• or 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

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2) Amending budgets, transfers carryovers

• 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-accommodatio
  n 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

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2) Amending budgets, transfers carryovers

• 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
  Committees authorisation)

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2) Amending budgets, transfers carryovers

• 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 (n1)
• the OHQ J8 estimates needs by 15 February of year
  n1 Article
• the Administrator submits proposal to the Special
  Committee
• Special Committee decides by 15 March of year n1

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3) Budget implementation

• 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
• 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

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3) Budget implementation

• 3 phases
• 1) 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 HQs J8 or (below
  the  higher threshold ) on the J8s 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

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4) Imprest accounts

• For budget implementation in 2 cases
• when impossible to have an authorising officer
  together with an accounting officer (isolation)
• 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

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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

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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.

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6) Land, buildings, infrastructures

• Difficulty often made available by local
  authorities
• gt 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
• gt Keep in proportion to duration of operation

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7) Reports accounting

• 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)
• Accounting (accounting software)
• in theatre at least budgetary accounting
• for the whole operation accrual basis, with
  balance sheet
• gt organise work sharing between various levels

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8) Organisation tasks of the J8s

• Normally, at least 4 officers
• Head of section authorising officer
• Budget officer
• Procurement officer
• 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

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J8 Head of sections 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

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J8 head of sections tasks (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 same
• NB 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 HQs
  Commander
• code changed every 6 months or when hand-over
• - armed escort when SOFA allows

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J8 head of sections tasks (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

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J8 head of sections tasks (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

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J8 head of sections tasks (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

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J8 head of sections tasks (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

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J8 head of sections tasks (6)

• Check Issue SOPs to organise his / her section
• OHQ for the whole operation
• OHQs 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

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J8 head of sections tasks (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

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J8 head of sections tasks (8)

• Provide implementation reports
• 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
• 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
• Annual accounts
• by 31 March of the following year
• Budget implementation accrual basis balance
  sheet cash flow changes in capital

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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

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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
• gt The administrator will carry appropriations
  over to the following year
• Payments made in year n in advance on year n1
• 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 n1
• gt submit to Special Committee for carryover to
  year n1

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