Financial and budgetary framework

The Financial and Budgetary Framework fully supports the general and specific processes of budget management, from the management of appropriations related to EU financial funds to the payment of clients’ support claims, tailored to the professional needs of the task. It ensures the accurate tracking of financial resources, payments, receivables and related short and long term financial planning and forecasting, allowing for account management, collateral management, automatic processing of bank statements. It allows accurate accounting to organisations and clients, accounting between accounts, taking into account the financial year in accordance with the requirements of the budgetary bodies and the EU. The data managed by the framework constitute the analytical accounts and form the basis for the accounting, management information and reporting according to a single chart of accounts and a single classification of accounts. [KFONIX:PENZUGY] contains the following main functions and links.

Financial and budgetary system functions

RESOURCE ACCOUNTING

The main task of the resource framework register is to record the initial allocation of EU financial funds, e.g. European Agricultural Guarantee Fund (EAGF), European Agricultural Fund for Rural Development (EAFRD), and the breakdown of these allocations by measure, by title, by focus area. The module provides the management of changes to the funds, recording the value of the current funds, the funds committed, the available funds and the funds paid.

COMMITMENT REGISTER

The register manages the data of the provisional commitments (land-based support, project supports and other supports submitted by farmers). Support claims that have been professionally fulfilled or are legally eligible are shown in the system as final commitments. The module displays final commitment data individually, and the lifecycle of commitments can be traced through to payment.

COLLATERAL MANAGEMENT

The module handles the receipt and recording of cash, bank guarantees and surety bonds, and provides the client with the ability to convert these types of collateral within a transaction. A current account can be created from the collateral register. The framework automates the management of expiring and drawn bank guarantees and manages the pairing of received guarantees and collateral claims in a parameterisable way.

COMPENSATION MODULE

Its task is to check the possible outstanding claims of the clients concerned when making payments and, if certain conditions are met, deducting the amount of outstanding claims from the amount to be paid. Clients are informed by letter of the compensation paid.

PAYMENT LIST

The function of the payment list is to check the numerical and data content of the amounts to be paid and the relevant data of the clients concerned before payment, to validate public or third-party deductions and to show the need for the payment of funds.

CURRENT LIST FOR FINANCIAL VALIDATION

The current list is responsible for preparing and aggregating the items to be paid on a given day for the vouchers, following the activity of summarising the call for funds for the financial execution of payments.

CREDIT TRANSFER

The module is responsible for the preparation of the file structure of the voucher file required by the Treasury for the electronic credit transfer or the credit transfer order to be submitted to the Treasury on paper.

BANK STATEMENT PROCESSING

The module imports bank statements from the Treasury system into the system and displays the credit and debit transactions and their results for each bank account.

REPORTS

The module is used to generate reports and data on payments made on cash accounts, payments made without cash flow (compensation) and amounts collected (e.g. to the Prime Minister’s Office, the Ministry of Rural Development, the EU, KPMG and EUTAF).

FILING INTEGRATION

The documents generated in the framework are bar-coded and assigned a filing number, and full filing integration is ensured through the interface to the document management system.