European Aviation Safety Agency 2006 2007 2008 2009

Performance The Agency should carefully check the consistency of the expenditure forecasts: the Agency’s cost analysis system showed costs of about EUR 48 000 000 versus revenue of about EUR 35 000 000; insufficient programming The Agency should carefully check the consistency of the expenditure forecasts that are to be presented for adoption by the budgetary authority — Calls on the Agency to set out a diachronic analysis of operations carried out in this and the previous years — Calls on the Agency to set SMART objectives and RACER indicators — Calls on the Agency to make a Gantt diagram — Calls on the Agency to set SMART objective and RACER indicators — Calls on the Agency to consider making a Gantt diagram part of the programming for each of its operational activities, with a view to indicating in a concise form the amount of time spent by each staff member on a project — 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 the improve performance monitoring and reporting — Calls on the Agency to set out a comparison of its operations that were carried out during the year for which discharge is to be granted and during the previous financial year

Fees and charges regulation n.a. The Agency should not confuse to use the former regulation on fee levied with the new one — Calls on the Agency to establish a monitoring system at the level of certification projects — Calls on the Agency to put forward a detailed plan to guarantee that the system of annual flat fees might not generate income which is significantly above the actual costs of the services rendered — Calls on the Agency to improve its monitoring system for certification projects to make sure that, over the entire duration the fees levied do not deviate significantly from the actual cost — Calls on the Agency 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

Carry-over of appropriations/Procurement issues The budgetary principle of annuality was not observed: contrary to its Financial Regulation, the Agency used its differentiated payment appropriations carried over from 2005 despite the fact that it had enough payment appropriations for 2006 Transparency issues on the award criteria and the financial evaluation method — Calls on the Agency to remedy the enterprise resource planning system resulting from a delay in signing the service contract. (Calls on the Agency to present a much more realistic forecast to the Commission and the Parliament during the next years) — Calls on the Commission to examine ways of ensuring that the principle of needs-based cash management is implemented in full, in order to ensure that the Agency’s cash reserves are kept as low as possible — Agency carried forward to 2010 a high level of appropriations for operating expenditure (65 % from Title III, Operational Activities. The percentage of commitments carried forward is 13 %) — Calls for more accurate and timely management of contracts and for far more realistic forecasts to be presented to Parliament and Commission for the next financial year — Requests that a report be attached to each year’s budget on the unspent appropriations carried over from previous years explaining why those monies have not been used and how and when they will be used

Human resources n.a. Calls on the Agency to improve its recruitment and resource planning systems Calls on the Agency to improove its recruitment and resource planning systems — Notes deficiencies in staff selection procedures which put at risk the transparency of these procedures. Court of Auditors reported that 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 — Urges the Agency to inform the discharge authority on the actions taken to redress this situation and make the selection procedures of its experts/staff more transparent