EU MILITARY OPERATIONS : ACTIVE PHASE / J8 TASKS

1. EU MILITARY OPERATIONS : ACTIVE PHASE / J8 TASKS CCL L. PACCAUD

2. OPERATIONAL COMMON COSTS : END Preparation Active phase End of phase Raise into power CMC OP LAUNCHING IOC FOC COUNCIL DECISION OPLAN HAND- OVER Preparatory phase : Annexe 2 : - transport, lodging, civilian hires incremental costs. - MEDEVAC => Administrateur = authorising officer Active phase : Annexe 3 : - Common costs list, - OPCDR = authorising officer • Winding up phase : Annexes 1 & 4 : • End of OpCdr’s direct responsibilities • J8 section to be enhanced • - Administrator = authorising officer

3. Active phase : WHEN? - When the Operation Commander is officially in office - Usually from adoption until repeal by Council of EU of the Council’s decision of the operation CHANGES FROM PREPARATORY PHASE ? - List of common costs : ATHENA ANNEX III - Operation Commander is authorising officer

4. Active phase : • Budget : estimates and adoption • Budget implementation • Budget management : amending budgets, transfers, carryovers • Imprest accounts • Inventories • Land, buildings, infrastructure • Reports and accounting • Organisation and tasks of the J8s

5. 1) Budget : estimates & adoption • ATHENA has annual budgets : • Operation = new Title • in annual draft budget in October • or as a supplementary budget during the year - Operation budget may be adopted at any time (not only during the active phase) • ESTIMATES : - TBD by M/OHQ and FHQ J8s (& other Js), Athena & EUMS - Early funding : Contributions payable within 30 days ! • ADOPTION : - Presentation by M/OHQ J8, Administrator, FHQ J8 - Adoption by the Special Committee acting unanimously

6. 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

7. 2) Budget implementation : 3 phases 1) Budgetary commitment : • aim : reserve appropriations for intended expenditure • before spending starts (or budget may be exceeded) 2) Legal commitment : • contract or purchase order • only by relevant HQ’s J8 • or on the J8’s delegation (< the « higher threshold ») 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

8. 3) Amending budgets, transfers & carryovers Budget: • 1 Title per operation, divided into chapters and articles • Chain of command free to sub-divide further • 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

9. 3) Amending budgets, transfers & carryovers Amending budget : - If change of total of appropriations, same procedure as initial budget, at all times - Requires Special Committee's unanimous approval Transfer 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)

10. 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

11. 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 • Impress must provide regularly justifications (invoices, bank statement or cash balance) • Replenishment of funds when expenditure justified • Accounting and authorising officer responsible for checking

13. 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 in inventory.

15. 6) Land, buildings, infrastructures : • Difficulty: often made available by local authorities => Temptation of diplomatic, informal arrangements • 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

19. 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 => organise work sharing between various levels

21. 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 Mandatory : 2 officers

22. 8) Organisation and tasks of the J8s

23. J8 head of section’s tasks (1): • Safety of funds : • Bank account : - OHQ: in € in a bank with its head office in a EU 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 HQ’s Commander • code changed every 6 months or when hand-over - armed escort when SOFA allows

24. J8 head of section’s tasks (2): • Check the eligibility of the expenditure : Common costs or Nation Borne Costs (NBCs) ? • Temptation to have ATHENA assume all expenditure • No contract 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

25. J8 Head of section’s tasks : • Ensure that funds are kept safely at all times • Check the eligibility of expenditure • Ensure that rules (on procurement, etc.) and budget are complied with, request derogations • Give his assent to contracts • Ensure that inventories are kept up-to-date • Issue SOPs to organise his / her section • Organise the internal control / audit system • Provide implementation reports

26. J8 head of section’s tasks (3): • Rules and budget must be complied with but may request deviations : Temptation to buy first, then present the bill ex post • Other dispending sections (J1, J4, J6, ...) have to be made aware by J8 • Main rules : 1) procurement rules: competition 2) Written contracts, signed by J8 • Budget : • one allocation per HQ • budget commitment before start any expenditure Derogations, transfers, etc. : if needed, ask the administrator

27. J8 head of section’s tasks (4): • Assent to contracts : • Power to sign may be delegated But this is not encouraged • Imprest accounts may be established • Personal assent must be give above “higher threshold” • 133K€ for supplies or services • 5 M€ for infra works

28. J8 head of section’s tasks (5): • Implementing & updating the inventories : • Inventory of equipment : • Must be implemented & kept up to date • Must be checked physically on hand-over & 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

29. J8 head of section’s tasks (6): • Organisation SOPs : • OHQ’s J8 task for the whole operation • OHQ’s J8 must check that subordinate J8s HQs fulfil their tasks • Local J8 for each HQ • 3 sub SOPs: • 1) organisation of the chain regarding the budget • 2) procurement • 3) organisation of the chain on call for funds, payments and accounting

31. J8 head of section’s tasks (7): • Internal control / audit system : • must be organised by J8 • 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

34. J8 head of section’s tasks (8): • Provide implementation reports : • Before a budget is adopted • Spending on the basis of the reference amount • 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 • QUARTERLY 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

35. REFERENCES TEXTS : • Officiels texts : • ATHENA decision 2008/975/CFSP (18 Dec 2008) • ATHENA financial rules 1203/08 (23 Dec 2008) • ATHENA «for dummies» : • ATHENA operating manual • ATHENA procurement guide • ATHENA website : • www.athena.europa.eu

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