CERN Financial Framework

1. CERN Financial Framework A brief Overview of the most common Items

2. Overview • Structures • Organic Units • Accounting – PPA, Intersections, … • Budget Chapters and Labels • New CERN Governance • APT Input Rules

3. Organic Codes Organic Structure – July 24th, 2008 PH PH-62E PH-AIO PH-ADO PH-CMO PH-LBO PH-TOT PH-AGS PH-TH PH-COE PH-AID PH-ADE PH-CMD PH-LBC PH-DI PH-IS PH-AIP PH-ADP PH-CMG PH-LBD PH-DT PH-ADT PH-CMX PH-ESE PH-SFT PH-UFT PH-UAI PH-UAT PH-UCM PH-ULB PH-UHC PH-UGC PH-UC3 PH-UIS PH-UNT PH-USL PH-UAD PH-UOP PH-URD PH-ULE

4. PPA sub-PPA - Research Protons ATLAS Operation Ions ALICE Project Project SLHC PPA Structure • Programme – Project – Activity • grouping corresponding to activity • across organic structure • PPA: Activity always 3 letters • sub-PPA: Task within Activity standard tasks+ some exceptions R P I A P O P R S E J L

5. LHC-PPA LHCDETEC RPA-PRJ RPA-OPE RPA-PSL RPC-PRJ RPC-OPE RPC-INV RPC-PSL RIA-PRJ RIA-OPE RPB-PRJ RPB-OPE RPT-PRJ RPT-OPE RHC-PRJ RHC-OPE RHC-ELE RHC-ENG RHC-INV sub-PPAs in PH LHCCOMP • LCG-PRJ • RCF-APPS • OP-PPA NOACCR&D • RRD-PRJ • RRD-OPE NONLHCP • RLM-PRJ • RLM-OTH • RLM-ADE • RLM-ISO • RFT-OPE • RFT-SPS • RFT-PSC • ROT-OPE • GSS-PPA SCIENSUP • REL-OPE • REL-POOL • REL-INV • REN-PRJ • REN-OPE • REN-INV • RGS-DSO • RGS-PRJ • RGS-OPE • RGS-INV • RGS-PNA • RGS-PSL THEORY • RTH-OPE • RTH-PRJ • NEW-INIT THEME-1 • RLD-PRJ • RDA-OPE THEME-3 • LRD-OPE • LRD-PRJ • LRD-PSL • RLU-RPA • RLU-RIA • RLU-RPC • RLU-PRJ • RLU-PSL

6. LHC-related PPE-9702 “ATLAS Experiment” PPE-9703 “CMS Experiment” EP-9801 “ALICE” EP-0101 “LHCb Experiment” D079-PPE “LHC Detector Prototypes” several, including TOTEM IT-0501 “LCG Phase 2” PH-0802 “White Paper Detector R&D” PH-0803 “White Paper LHC Experiment Final Implementation” PH-0804 “CMS-CCAR” PH-0805 “B180 Reorganization” Miscellaneous PH-0801 “PH Department EPool” PPE-9401 “Building Modifications” PPE-9501 “Detector Support Infrastructure” EU Projects EUC-* EUE-* EU7-* EU7-COSMLH EU7-SL Projects in PH

7. Intersection Codes Organic Code 32400, … PH-AIO sub-PPA RIA-OPE RIA-PRJ 32450, … EP-9801 Project Code

8. CERN Budget Codes format: xxyyy xx series yyy internal structure Series in PH 27, 29, 33 REL, REN 31 RGS 32 RPA, RPC, RIA, RPB, RPT 34 projects, White Paper 39 Theory T-Accounts format: Tnmmmkk n series 0 internal CERN 1-4 team accounts except 29 collaborations 33 internal CERN 5-7 collaborations 8-9 other (TT, …) nmmm “team” kk internal structure Intersection Codes ≈ Budget Codes ≈ Cost Centre

9. Budget Chapters and Labels • Personnel Budget (Chapter I) • label “P” • “PSI”, “PSL” Staff • “PFE”, “PPA” Fellows and Associates • “PBU” Remaining Budget • “POM” Other Manpower • “PIK” In-kind Contributions from Outside • Materials Budget (Chapter II) • label “M” • “MSP” Supplies and Procurement • “MIS” Industrial Services • “MOM” Other Materials • “MTP” Third-Party-Payments • “MIK” In-kind Contributions from Outside • “PPJ” Project Associates

10. New CERN governance Impact on planning and reporting cycle and documents and workload 10

11. Planning by Activity • not by Department anymore • Annual Report in March • progress and outputs versus goals • actual cost reporting • Major Reallocations possible • by Management, to be reported to FC/C • only within agreed annual budget

12. New Planning Cycle Internal year n-1 TEEP (carry forward, update APT Key period: RPC will implement carry-forward based on year n-1 results, planning period for MTP APT bottom-up in line by APRIL (up to n+5, i.e. 2013!) broken down into Dep, Activity, Nature Annual report of year n-1: comparing results with objectives, planned resources with actuals n+1 White Paper MTP for n+1->n+5 MTP for approval (n+1->n+5),incl. book closing, year n prices PDB n+1, in year n prices for information • CVI for info • MS scale If no approval in June, MTP with changes for approval Draft budget for approval (year n prices) • Final CVI • Final Scale Final budget (in year n +1 prices) 12

13. Rules of the game (reminder) • Means are given to achieve objectives • Resources by activity (IMPORTANT) • Then by organic unit • Then detailing by nature category (PSI, PFE, MSP, MOM, MTP, PPJ, MIS) • Unavoidable • TRACE NEW INITIATIVES • We have to, even if we can grouped them (examples: CLIC, consolidation) 13

14. Budget control and monitoring • Budget control by Programme and Department • (sub-programme for LHC and other scientific programmes) • Broken down into OPE and PRJ • In EDH and in QUALIAC • Monitoring and tracking • Staff budget versus standard costs charged, SMT forecast • Materials by supplies (MSP), industrial services (MIS.S, MIS.C), other labour (MTP/PPJ), overheads (MOM) • AIM: Ensure reduction of industrial services manpower at the end of LHC construction! 14

15. APT Input Rules

16. Data input rules (1): general • Details vs Time: • From the current year (n) till the year n+4: • resources have to be attached either to a Budget Code, section or group • WBS node of the WU must be assigned to at least sub-PPA • From the year n+5 onwards: • resources have to be attached either to a Budget Code, section, group or department • WBS node of the WU must be assigned to at least a PPA • Workunit status: • Only Planned-Active-Completed status is used to compare to the target figures • Draft, Draft 1, Draft 2 – for the scenario usage; once a scenario accepted, the status should be changed to Planned • Data Quality screen to check the validity of your data (also available in the workunits form and list) 16

17. Data input rules (2): Personnel • Details vs Time: • Existing resources allocation: mandatory for the year n and n+1 • Planning phase (year n+2 onwards): no individual allocation mandatory, required resources can be grouped together into “generic posts” (e.g. 3 software engineers in 2E category) • Missing staff: • New recruitment to compensate a retirement: NEED • Replacement for a contract holder at the same salary position: REPL • New identified need: NEED 17