PURPOSE: to grant discharge to the European Aviation Safety Agency for the financial year 2007.

LEGISLATIVE ACT: Decision 2009/647/EC of the European Parliament on the discharge for the implementation of the budget of the European Aviation Safety Agency for the financial year 2007.

CONTENT: with the present decision, the European Parliament grants discharge to the Executive Director of the European Aviation Safety Agency for the implementation of the Agency’s budget for the financial year 2007.

This decision is in line with the European Parliament’s resolution adopted on 23 April 2009 and comprises a series of observations that form an integral part of the discharge decision (please refer to the summary of the opinion of 23/04/2009). The decision to grant discharge is also an approval of the closure of the accounts of this EU agency.

The European Parliament adopted by 582 votes to 32, with 21 abstentions, a decision on discharge in respect of the implementation of the budget of the European Aviation Safety Agency for the financial year 2007. The decision to grant discharge is also an approval of the closure of the accounts of this EU agency.

Furthermore, the Parliament adopted a resolution with observations which are an integral part of the decision to grant discharge.

The Parliament notes anomalies in the Agency’s 2007 establishment as well as the imbalance between costs and revenue highlighted in the previous discharge resolution, which triggered a need to reduce the planned number of staff by 25%, from 467 to a maximum of 342. In this context, the Parliament expects the Agency to provide information on how far a balance between costs and revenue in relation to certification activities could be achieved through implementation of the new fees and charges regulation.

Furthermore, the Parliament firmly supports the European Court of Auditors’ (ECA) recommendation that the Agency carefully check the consistency of its expenditure forecasts. It notes that the ECA and the Agency disagree over the calculation of an amount of EUR 14.9 million in assigned revenue received by the Agency in 2007 to cover future certification costs, as well as criticism regarding procurement procedures (in particular, a lack of transparency). The Parliament therefore calls on the Agency to stick to the promise given in its replies to comply strictly with the procurement rules and to pay particular attention to the provision of clear information to potential bidders.

Moreover, the Parliament calls on the Commission to ensure that the Agency maintains strict financial discipline in the future and always works within the agreed budgets.

Lastly, noting that the Agency’s annual accounts for the financial year 2007 are reliable, and the underlying transactions are legal and regular, the Parliament approves the closure of the Agency’s accounts and refers, for other observations accompanying its decision on discharge, to its resolution on financial management and control of EU agencies - see 2008/2207(INI) - adopted in parallel.

The Committee on Budgetary Control adopted the report drawn up by Christofer FJELLNER (EPP-ED, SE) on discharge to be granted to the European Aviation Safety Agency, calling on the European Parliament to grant the Executive Director of the Agency discharge in respect of the implementation of its budget for the financial year 2007.

Noting that the Agency’s annual accounts for the financial year 2007 are reliable, and the underlying transactions are legal and regular, MEPs approve the closure of the Agency’s accounts.

However, they make a number of recommendations as part of the decision on discharge. In addition to the general recommendations appearing in the draft resolution on financial management and control of EU agencies (see 2008/2207(INI) ), MEPs make the following observations:

the European Court of Auditors (ECA) identified anomalies in the Agency’s 2007 establishment plan; the Agency states that the reduction of staff was due to the fact that during the first two years of implementation of its fees and charges regulation, revenue was insufficient to cover forecasted costs; the imbalance between costs and revenue highlighted in the previous discharge resolution triggered a need to reduce the planned number of staff by 25%, from 467 to a maximum of 342.

In this context, MEPs expect the Agency to explain how far a balance between costs and revenue in relation to certification activities could be achieved through implementation of the new fees and charges regulation, which entered into force on 1 June 2007.

Moreover, MEPs fully support the ECA's recommendation that the Agency carefully check the consistency of its expenditure forecasts.

MEPs note that the ECA and the Agency disagree over the calculation of an amount of EUR 14.9 million in assigned revenue received by the Agency in 2007 to cover future certification costs. Moreover, MEPs note the ECA's criticism of several audited procurement procedures (lack of transparency, in particular). MEPs therefore call on the Agency to stick to the promise given in its replies to comply strictly with the procurement rules and to pay particular attention to the provision of clear information to potential bidders. Lastly, they call on the Commission to ensure that the Agency maintains strict financial discipline in the future and always works within the agreed budgets.

Based on the observations contained in the revenue and expenditure account and the balance sheet of the European Aviation Safety Agency for the financial year 2007, as well as on the Court of Auditor’s report and the Agency’s replies to the Court’s observations, the Council recommends that the Parliament grant the Director of the Agency discharge in respect of the implementation of the budget for the financial year 2007.

In doing so, the Council confirms that EUR 17 million (88%) of the appropriations carried over from 2006 to 2007 (EUR 19.2 million) were used, that the appropriations carried over from 2007 to 2008 amount to EUR 35 million and that a total of EUR 1.4 million was cancelled.

Recalling that the Court of Auditors was able to obtain reasonable assurance that the Agency’s annual accounts were, in all material aspects, reliable, the Council believes that there is a certain number of observations that must be taken into consideration when granting discharge in respect of the implementation of the 2007 budget, particularly regarding the following points:

Carry-overs : the Council reiterates that certain practices, namely increasingly high carry-over rates for operating expenditure and a high number of vacant posts, require further improvements in the Agency's financial, budgetary and human resources management and calls on the Agency to remedy this situation without delay; Recruitment : the Council takes note of the Court's finding that the decision of the Agency, in agreement with the Commission, to slow down recruitment was taken without amending the establishment plan accordingly. In this context, the Council calls on the Agency to comply with the provisions of the Financial Regulation; Budgetary planning : the Council notes with concern that in application of the new fees and charges regulation the Agency has overestimated the amounts of assigned revenue which should cover future certification costs. Therefore, the Council calls on the Agency to carefully check the consistency of its forecasts and work more on its financial and operational planning; Procurement : the Council regrets the serious deficiencies in the procurement procedures carried out by the Agency, as identified again by the Court, particularly as regards the choice of the appropriate type of procedure, the financial evaluation method as well as the information on the award criteria. The Council reiterates its call on the Agency to comply strictly with the applicable rules thus ensuring correct and transparent procurement practices.

PURPOSE: to present the report of the Court of Auditors on the 2007 accounts of the European Aviation Safety Agency (EASA).

CONTENT: the Court of Auditor’s report includes a detailed section on the European Aviation Safety Agency’s expenditure and an analysis of the expenditure, as well as the Agency’s replies.

Analysis of the accounts by the Court : in its report, the Court makes a number of observations, particularly with regard to expenditure forecasts. The 2007 establishment plan consisted of 467 temporary posts, which was an increase of 139 posts compared with the 2006 plan. As the appropriations for staff expenditure did not cover actual staff costs, the Agency reduced its recruitments and agreed with the Commission to reduce the number of posts to a maximum of 342. However, the establishment plan was not amended accordingly. The Agency should therefore carefully check the consistency of the expenditure forecasts. Moreover, the Court notes that, according to the new fees and charges regulation, the Agency considered EUR 14.9 million as assigned revenue to cover future certification costs. This amount, however, is overestimated as it also includes fees levied under the rules of the former regulation. In one procurement procedure, the absence of clear and complete information on the award criteria and their respective weightings, on the one hand, and the financial evaluation method, on the other hand, led to a situation of non-transparency for the bidders. The Court notes that in three other cases the restricted procedure after a call for expressions of interest was applied although the overall value of the services to be awarded exceeded the threshold requiring an open procedure; The Agency’s replies : the Agency notes that, During the first two years of the implementation of the fees and charges regulations, the revenue of the Agency was insufficient to cover its forecasted overall costs. For the sake of prudence, the Agency decided to slow down recruitment. This was reflected in the Staff Policy Plan 2008-2010 which has been agreed with the Commission. Moreover, it notes that the year 2007 was a transition phase for which both old and new fees and charges regulations were applied. Lastly, the Agency notes that it is fully aware of the necessity to comply strictly with the procurement rules of the Commission. It will pay particular attention to clearly informing the potential bidders on the award criteria and their evaluation.

PURPOSE: to present the final accounts of the European Aviation Safety Agency for the financial year 2007.

CONTENT: this document sets out a detailed account of the implementation of the European Aviation Safety Agency’s budget for the financial year 2007. It notes that the final budget amounted to EUR 72 million, including EUR 55.8 million of revenue from fees and charges (65%), EUR 26.5 million from Community subsidy (31%) as well as a contribution from the Federal Republic of Germany (Ministry of Transport) and City of Cologne of EUR 300 000.

As regards the staffing policy, the Agency, whose head office is now based in Cologne (Germany), set out a total of 467 temporary members of staff in the establishment plan. 333 of these posts are currently occupied with 29 other posts (seconded national experts, contract and auxiliary staff) totalling 362 posts assigned to operational, administrative and mixed tasks.

In 2007, the Agency’s main activities focused on the following:

Opinions : 5 opinions concerning amendments to Regulations (EC) No 1592/2002, (EC) No 1702/2003 and (EC) No 2042/2003;

Rulemaking decisions : 17 amendments of certification: Specifications and Acceptable Means of Compliance and Guidance Material ;

International cooperation :

7 Working Arrangements with China, New Zealand and Albania; Amendments to Working Arrangements with Interstate Aviation Committee (USA) and JCAB (Japan); Memorandum of Understanding with COCESNA/ACSA.

Certification decisions :

Type certificates: 29; Supplementary type certificates: 879; Airworthiness directives: 380; European technical specifications: 198; Acceptable means of compliance: 87; Major changes: 1 193; Minor changes: 2 655; Major repairs: 245; Minor repairs: 156; Aircraft flight manual (AFM): 430; Approval of flight conditions (PTF): 508; Approval of design organisations: 429; Approval of maintenance organisations (bilateral): 1 380; Approval of maintenance organisations (foreign): 224; Approval of maintenance training organisations: 24; Approval of manufacturing organisations: 16; Standardisation inspections (number of countries by type) at 31 December 2007; In the field of maintenance (MAST): 28; In the field of production (POAST): 12.

The complete version of the final accounts may be found at the following address: http://www.easa.europa.eu/ws_prod/g/g_budget_and_accounts.php#

PURPOSE: to present the final accounts of the European Aviation Safety Agency for the financial year 2007.

CONTENT: this document sets out a detailed account of the implementation of the European Aviation Safety Agency’s budget for the financial year 2007. It notes that the final budget amounted to EUR 72 million, including EUR 55.8 million of revenue from fees and charges (65%), EUR 26.5 million from Community subsidy (31%) as well as a contribution from the Federal Republic of Germany (Ministry of Transport) and City of Cologne of EUR 300 000.

As regards the staffing policy, the Agency, whose head office is now based in Cologne (Germany), set out a total of 467 temporary members of staff in the establishment plan. 333 of these posts are currently occupied with 29 other posts (seconded national experts, contract and auxiliary staff) totalling 362 posts assigned to operational, administrative and mixed tasks.

In 2007, the Agency’s main activities focused on the following:

Opinions : 5 opinions concerning amendments to Regulations (EC) No 1592/2002, (EC) No 1702/2003 and (EC) No 2042/2003;

Rulemaking decisions : 17 amendments of certification: Specifications and Acceptable Means of Compliance and Guidance Material ;

International cooperation :

7 Working Arrangements with China, New Zealand and Albania; Amendments to Working Arrangements with Interstate Aviation Committee (USA) and JCAB (Japan); Memorandum of Understanding with COCESNA/ACSA.

Certification decisions :

Type certificates: 29; Supplementary type certificates: 879; Airworthiness directives: 380; European technical specifications: 198; Acceptable means of compliance: 87; Major changes: 1 193; Minor changes: 2 655; Major repairs: 245; Minor repairs: 156; Aircraft flight manual (AFM): 430; Approval of flight conditions (PTF): 508; Approval of design organisations: 429; Approval of maintenance organisations (bilateral): 1 380; Approval of maintenance organisations (foreign): 224; Approval of maintenance training organisations: 24; Approval of manufacturing organisations: 16; Standardisation inspections (number of countries by type) at 31 December 2007; In the field of maintenance (MAST): 28; In the field of production (POAST): 12.

The complete version of the final accounts may be found at the following address: http://www.easa.europa.eu/ws_prod/g/g_budget_and_accounts.php#