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Document 52010TA1214(05)
Report on the annual accounts of the European Aviation Safety Agency for the financial year 2009, together with the Agency’s replies
Report on the annual accounts of the European Aviation Safety Agency for the financial year 2009, together with the Agency’s replies
Report on the annual accounts of the European Aviation Safety Agency for the financial year 2009, together with the Agency’s replies
OJ C 338, 14.12.2010, p. 22–27
(BG, ES, CS, DA, DE, ET, EL, EN, FR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
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14.12.2010 |
EN |
Official Journal of the European Union |
C 338/22 |
REPORT
on the annual accounts of the European Aviation Safety Agency for the financial year 2009, together with the Agency’s replies
2010/C 338/05
CONTENTS
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Paragraph |
Page |
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INTRODUCTION … |
1-2 |
23 |
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STATEMENT OF ASSURANCE … |
3-12 |
23 |
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COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT … |
13-15 |
24 |
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OTHER MATTERS … |
16 |
24 |
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Table … |
25 |
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The Agency’s replies … |
27 |
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INTRODUCTION
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1. |
The European Aviation Safety Agency (hereinafter ‘the Agency’), located in Cologne, was established by Regulation (EC) No 1592/2002 of the European Parliament and of the Council of 15 July 2002 (1). The Agency’s tasks are to maintain a high level of civil aviation safety, to ensure the proper development of civil aviation safety, to establish certification specifications and to provide certification of aeronautical products (2). |
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2. |
The Agency’s 2009 budget amounted to 122 million euro, compared with 102 million euro the previous year. The number of staff employed by the Agency at the end of the year was 509, as compared with 440 the previous year. |
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12. |
The comments which follow do not call the Court’s opinions into question. |
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT
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13. |
The planning and cost estimates in the Agency’s 2009 work programme were based on eight main activities. The structure of the Agency’s operational budget (Title III), however, remained input-related. Budget amendments were made without updating the work programme, even when they had a significant impact on the allocation of human and financial resources. The introduction of an activity-based structure for the operational budget would establish a clear link between the work programme and the financial forecasts and would improve performance monitoring and reporting. |
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14. |
Commitments of 8,9 million euro (65 %) from Title III — Operational activities (total budget, 13,6 million euro) — were carried forward to 2010. This situation is at odds with principle of annuality and shows that budget planning and monitoring must still be improved. |
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15. |
The Agency manages certification tasks which are outsourced to national aviation authorities. The related accrued expenditure at the year end was estimated by assuming an overall percentage of completion not justified by historical experience. For the establishment of the 2010 financial statements, the Agency should implement the ‘stage of completion’ method for estimating such accrued expenses. |
OTHER MATTERS
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16. |
With regard to staff selection procedures, the decisions by the selection boards were insufficiently justified and documented since thresholds for being invited to interview or put on the reserve list were not defined in advance and minutes were missing. These practices put at risk the transparency of the recruitment procedures. |
This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 12 October 2010.
For the Court of Auditors
Vítor Manuel da SILVA CALDEIRA
President
Table
European Aviation Safety Agency (Cologne)
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Areas of Union competence deriving from the Treaty |
Competences of the Agency (Regulation (EC) No 216/2008 of the Parliament and of the Council (the Basic Regulation)) |
Governance |
Resources made available to the Agency in 2009 (Data for 2008) |
Products and services in 2009 |
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The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, may lay down appropriate provisions for sea and air transport. They shall act after consulting the Economic and Social Committee and the Committee of the Regions. (Article 100 of the TFEU) |
Objectives
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Measures to be adopted by the Agency
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1 — Management Board consisting of one representative of each Member State and one representative of the Commission, sets up an advisory body of interested parties. 2 — Executive Director manages the Agency and is appointed by the Management Board on a proposal from the Commission. 3 — Board of Appeal decides on appeals against the Agency’s decisions in certain respects such as certification, fees, charges and checks at undertakings. 4 — External audit Court of Auditors. 5 — Discharge authority Parliament, acting on a recommendation from the Council. |
Budget Total budget: 122 (102) million euro, including. Revenue collected: Revenue from fees and charges: 54,9 (67,2) million euro (60 %) Union subsidy: 33,9 (30,5) million euro (37 %) Other revenue and subventions: 3,9 (3,2) million euro (3 %). Reserve of assigned revenue for fees and charges expenditure: 29,5 (14,8) million euro. Staff at 31 December 2009 506 (452) temporary staff in the establishment plan. posts occupied: 460 (403) other staff: 56 (39), contract staff 49 (37), seconded national expert 6 (1), special advisor 1 (1) Total temporary staff: 460 (403)
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Opinions 5 Opinions for amendments to Regulations (EC) No 2042/2003 and (EC) No 1702/2003 Rulemaking Decisions 20 Decisions related to Certification specifications (13), Acceptable Means of Compliance and Guidance Material (5), Rulemaking programme (2) Additional deliverables in 2009 (which leads to Rules in the forthcoming years) 24 ToRs, 12 NPAs, 15 CRDs International cooperation 21 Working Arrangements with: CAAC-China (5), CAA Vietnam (1), CAA Taipei (1), CAAs of non-EU Member States in the framework of the transition of the Joint Aviation Authorities (14) 13 amendment letters of Working Arrangements on SAFA exchange with Civil Aviation Authorities of ECAC-non-EU Member States signed as per new regulatory framework and including Declaration on Conflict of Interest 1 Modification to the Working Arrangement between JCAB/ Japan and EASA Participation in BASA with Brazil negotiation round 22 recommendations provided to ICAO State Letters Preparation of 2 CMR meetings with FAA and TCCA Certification decisions at 31 December 2009 Type Certificates/Restricted Type Certificates (TCs/RTCs): 10 Supplemental type certificates (STCs): 594 Airworthiness directives (ADs): 244 Alternative Method of Compliance (AMOC): 82 European Technical Standard Order Authorisation (ETSOA): 180 Major changes/Major repairs/TC New Derivatives: 933 Minor changes/Minor repairs: 1 708 Aircraft flight manual (AFM): 407 Approval of flight conditions (PTF): 400 Approval of Design organisations: 509 Approval of Maintenance organisations (bilateral) (12): 1 372 Approval of Maintenance organisations (foreign) (12): 233 Approval of Maintenance training organisations (12): 28 Approval of Manufacturing (12): 20 Standardisation inspections (number of countries by type) at 31 December 2009 In the field of Maintenance (CAW): 29 In the field of Production (IAW): 13 |
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Source: Information supplied by the Agency. |
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THE AGENCY’S REPLIES
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13. |
The Agency’s Operating Budget (specifically Title III) is composed of both budget lines specifically linked to activities and those which are input related. For the latter, the Agency is able to calculate the cost per activity through its analytical cost accounting system. The Agency is further evolving to adopt a full output related structure of the budget (activity based budget). |
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14. |
During the year the budget of Title III — Operational activities was increased by 6,7 million euro via transfers and amending budgets approved by the management board. For these increased activities, procurement procedures had to be launched which takes time and resulted in carry forwards. About 3,5 million euro of the commitments carried forward are related to IT expenses which are paid once projects have been satisfactorily achieved. |
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15. |
It is correct to state that the process of outsourcing to national aviation authorities (in some cases) tends to result in difficulties in receiving costing information when the services are rendered. Negotiations with national aviation authorities are on-going with regard to the introduction of ‘flat rate agreements’ for certain services (minor changes, minor repairs, standard STCs, organisations oversight …). This will provide for the availability of reliable project costs at the time a service is outsourced. |
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16. |
The Agency addressed and corrected the indicated weakness by introducing a fixed minimum threshold in conjunction with a minimum number of candidates being invited for interviews and a minimum threshold for placing candidates on the reserve list. The two thresholds are applied to all selection procedures since May 2010. |
(2) The Table summarises the Agency’s competences and activities. It is presented for information purposes.
(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.
(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.
(5) The budget implementation reports comprise the budget outturn account and its annex.
(6) OJ L 248, 16.9.2002, p. 1.
(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).
(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.
(9) The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in Chapter 1 of Title VII of Regulation (EC, Euratom) No 2343/2002 as last amended by Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 23) and are integrated as such in the Financial Regulation of the Agency.
(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).
(11) The Final Annual Accounts were drawn up on 13 July 2010 and received by the Court on 15 July 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or www.easa.europa.eu
(12) The organisation approval activity is subdivided into a main surveillance activity of already approved organisations (with a renewal every 2/3 years) and an activity linked to new approvals. The data supplied concern the total number of approvals on 31 December 2009.