PURPOSE: to grant discharge to the European Aviation Safety Agency in respect of the implementation of the Agency's budget for the financial year 2009.

NON-LEGISLATIVE ACT: Decision 2011/572/EU of the European Parliament on discharge in respect of the implementation of the budget of the European Aviation Safety Agency for the financial year 2009.

CONTENT: with the present decision, the European Parliament grants discharge to the Executive Director of the European Aviation Safety Agency for the implementation of its budget for the financial year 2009.

This decision is in line with the European Parliament's resolution adopted on 10 May 2011 and comprises a series of observations that form an integral part of the discharge decision (please refer to the summary of the opinion of 10/05/2011).

A parallel decision, adopted on the same day, approves the closure of this Agency's accounts.

The European Parliament adopted by 513 votes to 66, with 27 abstentions a decision on discharge to be granted to the Executive Director of the European Aviation Safety Agency in respect of the implementation of its budget for the financial year 2009.

Noting that the Agency’s annual accounts for the financial year 2009 are reliable, and the underlying transactions are legal and regular, Parliament approves the closure of the Agency’s accounts. However, it makes a number of recommendations that need to be taken into account when the discharge is granted (in addition to the general recommendations that appear in the resolution on financial management and control of EU agencies - see DEC/2010/2271 ):

performance : Parliament urges the Agency to implement an activity-based structure for the operational budget in order to establish a clear link between the work programme and the financial forecasts and improve performance monitoring and reporting. It stresses that the Agency should prepare a multiannual plan every year, discussed with all stakeholders and approved by the Management Board; carryover of appropriations: Parliament draw attention to the fact that the Agency carried forward to 2010 a high level of appropriations for operating expenditure (65% from Title III – Operational activities - when assigned revenues are excluded from the carryovers). It stresses that this is at odds with the principle of annuality and that this situation reveals weaknesses in the Agency’s resource planning system. It calls for more accurate and timely management of contracts and for far more realistic forecasts to be presented to Parliament and the Commission for the next financial year, allowing sufficient time for these to be analysed; fees and charges levied by the Agency : Parliament notes that 2009 was the second full year of implementation of certification tasks under Commission Regulation (EC) No 593/2007 on the fees and charges levied by the European Aviation Safety Agency. It calls once more on the Agency to improve its monitoring system for certification projects to make sure that, over the entire project duration, the fees levied do not deviate significantly from the actual cost. It calls on the Agency, specifically, to correctly estimate, for the establishment of the 2010 financial statements, the accrued expenditure related to the management of certification tasks outsourced to national Aviation Authorities; human resources: Parliament notes the shortcomings in staff selection procedures highlighted by the Court which put at risk the transparency of these procedures. It urges the Agency to inform the discharge authority on the actions taken to redress this situation and make more transparent the selection procedures of its experts/staff. It stresses that the impact of these deficiencies is even more crucial when considering that the Agency has the objectives of issuing certification specifications, taking decisions regarding the airworthiness and environmental certification and conducting standardisation inspections of the competent authorities in the Member States.

The Committee on Budgetary Control adopted the report by Georgios STAVRAKAKIS (S&D, EL) on discharge to be granted to the Executive Director of the European Aviation Safety Agency for implementation of the Agency's budget for the financial year 200 9.

Noting that the Agency’s annual accounts for the financial year 2009 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 that need to be taken into account when the discharge is granted, in addition to the general recommendations that appear in the draft resolution on financial management and control of EU agencies (see DEC/2010/2271 ):

substantial increase in the budget : Members note that the Agency's budget increased by 28% from 2007 to 2009; performance : Members u rge the Agency to implement an activity-based structure for the operational budget in order to establish a clear link between the work programme and the financial forecasts and improve performance monitoring and reporting. They stress that the Agency should prepare a multiannual plan every year, discussed with all stakeholders and approved by the Management Board. Once again, Members c all on the Agency to set out, in a table to be annexed to the Court of Auditors' next report, a comparison of operations carried out during the year for which discharge is to be granted and in the previous financial year so as to enable the discharge authority to assess more effectively the Agency's performance from one year to the next; carryover of appropriations : Members draw attention to the fact that once again the Agency carried forward to 2010 a high level of appropriations for operating expenditure (65% from Title III – Operational activities - when assigned revenues are excluded from the carryovers). They stress that this is at odds with the principle of annuality and that this situation reveals weaknesses in the Agency’s resource planning system. They call for more accurate and timely management of contracts and for far more realistic forecasts to be presented to Parliament and the Commission for the next financial year, allowing sufficient time for these to be analysed; fees and charges levied by the Agency: Members note that 2009 was the second full year of implementation of certification tasks under Commission Regulation (EC) No 593/2007 on the fees and charges levied by the European Aviation Safety Agency. They call once more on the Agency to improve its monitoring system for certification projects to make sure that, over the entire project duration, the fees levied do not deviate significantly from the actual cost. They call on the Agency, specifically, to correctly estimate, for the establishment of the 2010 financial statements, the accrued expenditure related to the management of certification tasks outsourced to national Aviation Authorities; human resources : Members note the deficiencies in staff selection procedures highlighted by the Court which put at risk the transparency of these procedures. They urge the Agency to inform the discharge authority on the actions taken to redress this situation and make more transparent the selection procedures of its experts/staff. They stress that the impact of these deficiencies is even more crucial when considering that the Agency has the objectives of issuing certification specifications, taking decisions regarding the airworthiness and environmental certification and conducting standardisation inspections of the competent authorities in the Member States; internal audit : Members welcome the fact that the Agency has implemented 20 of the 26 recommendations made by the Internal Audit Service (IAS) since 2006.

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 2009, 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 2009.

The Council welcomes the Court's opinion that, on the one hand, the Agency's annual accounts present fairly, in all material aspects, the financial position as at 31 December 2009 and the results of operations and cash-flows for the year then ended, in accordance with the provisions of the Agency's Financial Regulation, and that, on the other hand, the underlying transactions for the financial year ended on 31 December 2009 are, in all material respects, legal and regular.

However, the Council considers that observations made in the Court of Auditor’s report call for a certain number of observations to be taken into account when granting discharge, particularly on the following points:

budgetary planning : the Council shares the Court's view on the importance of introducing an activity-based structure for the operational budget, in order to link the Agency's work programme to its budgetary planning, and encourages the Agency to continue working on the implementation of a full output-related structure of its budget; budget implementation : the Council takes note with concern of the persistently high carry-over rate and of the delays in procurement procedures which, according to the Agency, were its main cause. Therefore, it insists on the need to take effective measures aimed at further improving the Agency's planning of its operational activities, which is a precondition for a sound budgetary, financial and human resources management; estimation of expenditure : with respect to the Court's comment on the method applied by the Agency for estimating its accrued expenditure, the Council notes with interest that negotiations are ongoing with national aviation authorities, to which certification tasks are outsourced. It encourages the Agency to pursue the establishment of "flat rate agreements" for certain services, which would allow for information on project costs to be available at an early stage; recruitment procedures : the Council welcomes the efforts made by the Agency to correct weaknesses in its staff selection practices, stressing the importance of ensuring transparency in recruitment procedures.

PURPOSE: presentation by the Court of Auditors of its report on the annual accounts of the European Aviation Safety Agency (EASA).

CONTENT: in accordance with the tasks and objectives conferred on it by the Treaty on the Functioning of the European Union (TFEU), the Court of Auditors, in the context of the discharge procedure, addresses to the European Parliament and the Council a Statement of Assurance on the reliability of the annual accounts, as well as of the legality and regularity of the transactions underlying them of each EU institution, body or agency, on the basis of an external, independent audit.

This audit also covered the annual accounts of the European Aviation Safety Agency (EASA).

In the Court’s opinion, the Agency’s annual accounts presented “fairly, in all material respects”, its financial position as of 31 December 2009 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation.

The Court also stated that the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2009 were, “in all material respects, legal and regular ”.

The report again confirmed that the Agency’s 2009 final budget amounted to EUR 122 million and that it employed 509 agents during the 2009 financial year.

The report also included comments on the Agency’s budgetary and financial management, together with the Agency’s replies. The main comments are as follows:

The Court’s comments:

the Agency’s budget based on several main activities (i.e. input-related) was inefficient; carry-overs and cancellations of appropriations: commitments of EUR 8.9 million (65 %) were carried forward to 2010 which is at odds with principle of annuality and shows that budget planning and monitoring must still be improved; poor estimation of certain expenditures; irregularities in the staff selection procedures.

The Agency’s replies:

the Agency is evolving towards adoption of a full output-related structure of the budget activity; in the course of 2009, operational activities was increased by EUR 6.7 million 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; better costings of outsourcing to national aviation authorities; introduction of 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 since 2010.

Lastly, the Court of Auditor’s report contained a summary of the Agency’s activities in 2009 in the following areas:

presentation of opinions concerning amendments to European regulations in the air safety field; proposal of decisions relating to certification in the aeronautics sector and additional deliverables (which lead to rules in the forthcoming years); international cooperation with many third countries in the field of civil aviation; participation in BASA (Bilateral Aviation Safety Agreement) with Brazil negotiation round; certification decisions in a wide variety of fields of aviation certification.

PURPOSE: presentation by the Commission of the consolidated annual accounts of the European Union for the financial year 2009, as part of the 2009 discharge procedure.

Analysis of the accounts of the European Aviation Safety Agency (EASA).

CONTENT: this Commission document sets out the consolidated annual accounts of the European Union for the financial year 2009 as prepared on the basis of the information presented by the institutions, organisations and bodies of the EU, in accordance with Article 129 (2) of the Financial Regulation applicable to the EU’s General Budget, including the European Aviation Safety Agency (EASA).

In 2009, the tasks and budget of this agency were as follows:

description of EASA’s tasks: EASA, which is located in Cologne, was established by Regulation (EC) No 1592/2002 of the European Parliament and of the Council of 15 July 2002 . 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; EASA’s budget for the 2009 financial year : the Agency’s 2009 budget amounted to EUR 122 million, compared with EUR 102 million 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.

The complete version of EASA’s final accounts may be found at the following address: www.easa.europa.eu

PURPOSE: presentation by the Commission of the consolidated annual accounts of the European Union for the financial year 2009, as part of the 2009 discharge procedure.

Analysis of the accounts of the European Aviation Safety Agency (EASA).

CONTENT: this Commission document sets out the consolidated annual accounts of the European Union for the financial year 2009 as prepared on the basis of the information presented by the institutions, organisations and bodies of the EU, in accordance with Article 129 (2) of the Financial Regulation applicable to the EU’s General Budget, including the European Aviation Safety Agency (EASA).

In 2009, the tasks and budget of this agency were as follows:

description of EASA’s tasks: EASA, which is located in Cologne, was established by Regulation (EC) No 1592/2002 of the European Parliament and of the Council of 15 July 2002 . 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; EASA’s budget for the 2009 financial year : the Agency’s 2009 budget amounted to EUR 122 million, compared with EUR 102 million 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.

The complete version of EASA’s final accounts may be found at the following address: www.easa.europa.eu