European Aviation Safety Agency

• on discharge in respect of the implementation of the budget of the European Union Aviation Safety Agency (previously European Aviation Safety Agency) for the financial year 2018 (2019/2077(DEC)) The European Parliament, having regard to the final annual accounts of the European Union Aviation Safety Agency (before 11 September 2018: European Aviation Safety Agency) for the financial year 2018, having regard to the Court of Auditors annual report on EU agencies for the financial year 2018, together with the agencies replies[1], having regard to the statement of assurance[2] as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2018, pursuant to Article 287 of the Treaty on the Functioning of the European Union, having regard to the Councils recommendation of 18 February 2020 on discharge to be given to the Agency in respect of the implementation of the budget for the financial year 2018 (05761/2020 C90044/2020), having regard to Article 319 of the Treaty on the Functioning of the European Union, having regard to Regulation (EU, Euratom) No966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 605/2002[3], and in particular Article 208 thereof, having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No1296/2013, (EU) No1301/2013, (EU) No1303/2013, (EU) No1304/2013, (EU) No1309/2013, (EU) No1316/2013, (EU) No223/2014, (EU) No283/2014, and Decision No541/2014/EU and repealing Regulation (EU, Euratom) No966/2012[4], and in particular Article 70 thereof, having regard to Regulation (EC) No216/2008 of the European Parliament and of the Council on common rules in the field of civil aviation and establishing a European Aviation Safety Agency, and repealing Council Directive 91/670/EEC, Regulation (EC) No1592/2002 and Directive 2004/36/EC[5], and in particular Article 60 thereof, having regard to Regulation (EU) 2018/1139 of the European Parliament and of the Council of 4 July 2018 on common rules in the field of civil aviation and establishing a European Union Aviation Safety Agency, and amending Regulations (EC) No2111/2005, (EC) No1008/2008, (EU) No996/2010, (EU) No376/2014 and Directives 2014/30/EU and 2014/53/EU of the European Parliament and of the Council, and repealing Regulations (EC) No552/2004 and (EC) No216/2008 of the European Parliament and of the Council and Council Regulation (EEC) No3922/91[6], and in particular Article 121 thereof, having regard to Commission Delegated Regulation (EU) No1271/2013 of 30September 2013 on the framework financial regulation for the bodies referred to in Article 208 of Regulation (EU, Euratom) No966/2012 of the European Parliament and of the Council[7], and in particular Article 108 thereof, having regard to Commission Delegated Regulation (EU)2019/715 of 18December2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article70 of Regulation (EU, Euratom)2018/1046 of the European Parliament and of the Council[8], and in particular Article105 thereof, having regard to Rule 100 of and Annex V to its Rules of Procedure, having regard to the opinion of the Committee on Transport and Tourism, having regard to the report of the Committee on Budgetary Control (A9-0074/2020), 1.Grants the Executive Director of the European Union Aviation Safety Agency discharge in respect of the implementation of the Agencys budget for the financial year 2018; 2.Sets out its observations in the resolution below; 3.Instructs its President to forward this decision, and the resolution forming an integral part of it, to the Executive Director of the European Union Aviation Safety Agency, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

on the closure of the accounts of the European Union Aviation Safety Agency (previously European Aviation Safety Agency) for the financial year 2018 (2019/2077(DEC)) The European Parliament, – having regard to the final annual accounts of the European Union Aviation Safety Agency (before 11 September 2018: European Aviation Safety Agency) for the financial year 2018, – having regard to the Court of Auditors’ annual report on EU agencies for the financial year 2018, together with the agencie’ replies[9], – having regard to the statement of assurance[10] as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2018, pursuant to Article 287 of the Treaty on the Functioning of the European Union, – having regard to the Council’s recommendation of 18 February 2020 on discharge to be given to the Agency in respect of the implementation of the budget for the financial year 2018 (05761/2020 – C9‑0044/2020), – having regard to Article 319 of the Treaty on the Functioning of the European Union, – having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002[11], and in particular Article 208 thereof, – having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012[12], and in particular Article 70 thereof, – having regard to Regulation (EC) No 216/2008 of the European Parliament and of the Council on common rules in the field of civil aviation and establishing a European Aviation Safety Agency, and repealing Council Directive 91/670/EEC, Regulation (EC) No 1592/2002 and Directive 2004/36/EC[13], and in particular Article 60 thereof, – having regard to Regulation (EU) 2018/1139 of the European Parliament and of the Council of 4 July 2018 on common rules in the field of civil aviation and establishing a European Union Aviation Safety Agency, and amending Regulations (EC) No 2111/2005, (EC) No 1008/2008, (EU) No 996/2010, (EU) No 376/2014 and Directives 2014/30/EU and 2014/53/EU of the European Parliament and of the Council, and repealing Regulations (EC) No 552/2004 and (EC) No 216/2008 of the European Parliament and of the Council and Council Regulation (EEC) No 3922/91[14], and in particular Article 121 thereof, – having regard to Commission Delegated Regulation (EU) No 1271/2013 of 30 September 2013 on the framework financial regulation for the bodies referred to in Article 208 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council[15], and in particular Article 108 thereof, – having regard to Commission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council[16], and in particular Article 105 thereof, – having regard to Rule 100 of and Annex V to its Rules of Procedure, – having regard to the opinion of the Committee on Transport and Tourism, – having regard to the report of the Committee on Budgetary Control (A9-0074/2020), 1. Approves the closure of the accounts of the European Union Aviation Safety Agency for the financial year 2018;

• with observations forming an integral part of the decision on discharge in respect of the implementation of the budget of the European Union Aviation Safety Agency (previously European Aviation Safety Agency) for the financial year 2018 (2019/2077(DEC)) The European Parliament, having regard to its decision on discharge in respect of the implementation of the budget of the European Union Aviation Safety Agency (before 11 September 2018: European Aviation Safety Agency) for the financial year 2018, having regard to Rule 100 of and Annex V to its Rules of Procedure, having regard to the opinion of the Committee on Transport and Tourism, having regard to the report of the Committee on Budgetary Control (A9-0074/2020), A.whereas, according to its statement of revenue and expenditure[17], the final budget of the European Aviation Safety Agency (the "Agency") for the financial year 2018 was EUR197871000, representing an increase of 3.27 % compared to 2017; whereas EUR36915000 of the Agencys budget derives from the Union budget and EUR102992000 is revenue from fees and charges; B.whereas the Court of Auditors (the "Court"), in its annual report on EU agencies for the financial year 2018 (the "Court's report"), states that it has obtained reasonable assurances that the Agencys annual accounts are reliable and that the underlying transactions are legal and regular; Budget and financial management 1.Notes with satisfaction that the budget monitoring efforts during the financial year 2018 resulted in a budget implementation rate of 98.31 %, representing a decrease of 1.02% compared to 2017; notes furthermore that the payments appropriations execution rate was 90.26%, showing a decrease of 3.49 % compared to 2017; Performance 2.Notes that, following the 2017 audit of the Agency carried out by the International Civil Aviation Organization (ICAO), in June 2018 ICAO published the results confirming the very high implementation rate, which puts the Agency among the top three aviation regulators in the world; 3.Acknowledges that the Agency is strengthening the safety intelligence and safety performance functions and that, in particular, it is developing the Data4Safety programme that will provide a big data platform and an improved analysis capability at European level; 4.Encourages the Agency to pursue its digitalization policy 5.Notes with satisfaction that the Agency shares resources on overlapping tasks with other Agencies, including notably the European Food Safety Agency, the European Training Foundation, the European Securities Market Authority, in the areas of surveys, e-learning, cloud and LinkedIn services and environment awareness training; strongly encourages the Agency to actively keep seeking further and broader cooperation with all of the Union agencies; 6.Notes that, in 2018, an external evaluation of the process that lead to the development of the Agencys Single Programming Document and of the ways in which the Agencys key stakeholders are consulted in the establishment of the Single Programming Document was carried out; notes that the Agency is preparing an action plan to address any potential areas for improvement; 7.Highlights the Agency's vital role in ensuring the highest possible level of aviation safety and environmental protection in a fast growing aviation market; stresses that 2018 was a landmark year for the Agency, with the entry into force of the Regulation (EU) 2018/1139 [18]; recognises that the increased responsibilities and workload of the Agency were not accompanied by a proportionate increase in resources, which created significant challenges to fulfil its tasks and objectives in 2018, and lead to postponement or deprioritisation of certain activities; reiterates that the Agency should be provided with adequate financial resources and staff, which registered a reduction to 767 staff employed on31 December 2018 (compared with 771 staff in 2017), in order to perform the important tasks entrusted to it; 8.Recalls the Agencys contribution to developing smart standards on noise and CO2 emissions and its responsibility for the environmental certification of aeronautical products, parts and appliances; believes that with further resources the Agency can play a leading role in developing and implementing measures to improve the sustainability of aviation; 9.Welcomes the significant efforts made by the Agency to create a single European drone area; 10.Is concerned that aviation is an attractive target for cyber attacks and that software errors may have serious consequences; calls on the Agency, together with the European Centre for Cybersecurity in Aviation, to further increase the digital resilience of European aviation; 11.Is concerned that the forthcoming incorporation of remotely piloted aircraft systems will cause concern about safety among the public; calls on the Agency to take greater account of general safety concerns and the concerns of the authorities regarding prosecution of offenders; 12.Calls on the Agency to ensure that the Union acquires, as quickly as is feasible without jeopardising safety, rules on the commercial sale of drones that are uniform and easy to comply with; is concerned that the Agency does not have sufficient financial and human resources for this new remit; 13.
• Notes that the Agency ended the year with an overall deficit of EUR2000000 (a surplus of EUR700000 related to subsidy activities and a deficit of EUR 2700000related to fees and charges activities); notes that the fees and charges deficit is deducted from the accumulated surplus, reducing it from EUR54900000to EUR52200000; observes that concerning activities related to fees and charges, the income rose by EUR1800000compared to 2017, however, staff costs increased by EUR3700000, administrative costs by EUR900000and operational costs by EUR2600000; notes that for activities related to subsidy, an increase of subsidy by EUR2000000was enough to cover the rise in administrative costs by EUR100000and operational expenditures by EUR1400000; 14.Commends steps taken to increase the efficiency of the Agency, such as the launch of the lean efficiency agility programme and other efficiency initiatives, which resulted in a total reduction in workload equivalent to 16 employees working full-time and enabled the Agency to redeploy posts and to cope with the increased workload and the revised quality needs of legacy activities; also welcomes the increasing digitalisation, automation and simplification of financial processes, leading to 86 % of financial transactions being processed paperless; 15.Is pleased that the Agency has implemented the recommendation of the Court to ensure the independence of the accounting officer, who now functionally reports to the Agencys management board and administratively the Agencys executive director; 16.Welcomes the adoption of the guidelines on whistleblowing by the management board of the Agency and calls on the Agency to ensure their implementation; notes that the internal audit services performed a review of ethics in 2018, covering areas of the code of conduct, ethics and fraud, with draft audit report expected in the beginning of 2019; reiterates, in this context, the need to have in place safeguards against conflicts of interest; Staff policy 17.Notes that, on 31 December 2018, the establishment plan was 95.74 % executed, with 651 temporary agents appointed out of 680 temporary agents authorised under the Union budget (compared with 678 authorised posts in 2017); notes that in addition 83 contract agents and 19 seconded national experts worked for the Agency in 2018; 18.Notes with concern that an uneven gender balance is reported for 2018 with regard to the senior managers (4 men and 1 woman) and the management board members (26 men and 3 women); 19.notes that the Agency joined the Commissions imitative Women in Transport aiming to strengthen womens employment opportunities at all levels; welcomes that the Agency has established a gender balance task force to make recommendations on redressing the considerable existing imbalance; 20.Encourages the Agency to develop a long term human resources policy framework which addresses the work-life balance of its staff, the lifelong guidance and career development, the gender balance, the teleworking, the non discrimination, the geographical balance and the recruitment and integration of disabled people; Procurement 21.Notes that, according to the Courts report, the Agency committed the funds for an agreement with the Commission on archiving services about eight months after the renewal of the agreement; notes that, according to the Financial Regulation, the commitment of funds should be recorded before entering a legal obligation; takes note of the Agencys reply that the commitment was signed before the reception of the invoice but after the beginning of the service and this a posteriori was therefore covered by an exception; calls on the Agency to enter budgetary commitments before legal commitments; 22.Notes with concern that, according to the Courts report, for the procurement of data analytics services for a volume of up to EUR5 000 000, the Agency chose to use a framework contract with a single operator resulting from an open procedure published in the Official Journal of the Union; notes, however, that the terms used in the framework contract were not specific enough to allow a fair competition, because the requirements were not yet known at the time of the procurements procedure; recalls that, according to the Financial Regulation, in such circumstances, the contracting authority has to award a framework contract to multiple operators and a competitive procedure between the selected contractors has to be used for the specific purchases; takes notes on the Agencys reply that it chose a single framework contract rather than a multiple framework contract which would have resulted in a change of contractor during the lifetime of the framework contract and would have had severe consequences for its coherence and timely completion; calls on the Agency to design framework contracts which allow fair competition and ensure value for money; 23.Observes from the Courts report that in another procurement procedure for the core business of the Agency, namely outsourcing of certification tasks, the Agency awarded the contracts solely on the basis of the quality of the services without evaluating the price; notes, furthermore, that the Agency signed a contract with one operator before having received proof that the contractor was not in an exclusion situation; notes that, according to the Agencys reply, this Agency-specific activity is not reflected in the Financial Regulation; notes, furthermore, that there was no risk that the Agency will obtain services from an ineligible provider, since evidence regarding exclusion criteria was submitted prior to any accreditation of tasks; calls on the Agency to ensure that contracts are signed only after having verified the exclusion criteria; 24.Notes that, in light of comments and observations from the discharge authority related the use of some of the tools launched by the Commission with the aimof introducing a single solution for the electronic exchange of information with third parties participating in public procurement procedures (e-procurement), the Agency gave all suppliers the possibility of submitting invoiceselectronically from January 2018; welcomes, moreover, that by the end of 2018 more than 80% of invoices were being received electronically; however, notes that the processing of electronically received invoices and the encoding of the invoice data is done manually since this is considered to be the most reasonable solution; Prevention and management of conflict of interest and transparency 25.Notes, in light of comments and observations from the discharge authority related to the Agencys review of its Policy on impartiality and independence: prevention and mitigation of Conflict of Interest and the extension of the completion, review and update of declarations of interest to all staff members, that the Agency, at the end of May 2019, received the final audit report on ethics, fraud prevention and conflict of interest from the internal audit service with an overall positive conclusion on the management and control systems; notes, moreover, that the Agency has established an action plan with regard to the recommendations of the internal audit service and, that the Agency plans to perform by the end of March 2020 a review of the existing code of conduct framework for the Agencys staff and board of appeal members, as well as a review of the public declaration of interest process for the management board members; 26.Notes that 62% of the Agencys income consist of fees; takes note of the Agencys view that the fact that applicants pay fees does not necessarily imply a conflict of interest; Internal controls 27.Notes that in 2018, the internal audit service reviewed and confirmed the implementation of all the actions that were pending in the areas of business continuity, information security management and the european plan for aviation safety; 28.Observes that, in 2018, the Commissions internal audit service issued an audit report on Strategic Risk Assessment including IT in EASA; furthermore, notes that the Agency prepared an action plan to address some potential areas for improvement; 29.Notes that in 2018 the internal audit capability performed four audit assurance engagements to assess whether the relevant regulations were complied with, the process objectives were being met, and the key risks were properly mitigated; notes that this level of assurance was provided in each of the reviews and that recommendations were given to further enhance either the control environment or the overall efficiency of the processes; acknowledges, furthermore, that in the four follow-up audits carried out in 2018, the residual risks were considerably reduced, resulting in them falling to an acceptable level, and all open actions implemented with the final action were scheduled to be closed by the third-quarter of 2019; 30.Calls upon the Agency to focus on disseminating the results of its research to the general public, and to reach out to public through the social media and other media outlets; o o o

• for the Committee on Budgetary Control on discharge in respect of the implementation of the budget of the European Aviation Safety Agency for the financial year 2018 Rapporteur for opinion: Maria Grapini SUGGESTIONS The Committee on Transport and Tourism calls on the Committee on Budgetary Control, as the committee responsible, to incorporate the following suggestions into its motion for a resolution: 1.Welcomes the finding of the Court of Auditors that the accounts of the European Union Aviation Safety Agency (before 11 September 2018: European Aviation Safety Agency) ('the Agency') for the 2018 financial year are legal and regular in all material respects; 2.Notes that the Agencys annual budget for 2018 was EUR 197,9 million, of which EUR 36,9 million came from EU subsidy, EUR 103,0 million from fees and charges and EUR 2,0 million from third countries contributions, 1,1 million of other revenues and EUR 54,9 million from fees and charges accumulated surplus; is pleased that budget implementation rate remained very high at 98 %, significantly above the 95 % threshold set by the Commission; notes that the rate of cancellations of carry-over remains low at 1,8 %, below the 5 % limit set by the Commission; welcomes the fact that achievement of budget implementation and cancellation of amounts carried over targets means that no penalties will be applied to the 2020 EU subsidy; 3.Highlights the Agency's vital role in ensuring the highest possible level of aviation safety and environmental protection in a fast growing aviation market; stresses that 2018 was a landmark year for the Agency, with the entry into force of the new Regulation on 11 September 2018[20]; recognises that the increased responsibilities and workload of the Agency were not accompanied by a proportionate increase in resources, which created significant challenges to fulfil its tasks and objectives in 2018, and lead to postponement or deprioritisation of certain activities; reiterates that the Agency should be provided with adequate financial resources and staff, which registered a reduction to 767 staff employed on31 December 2018 (compared with 771 staff in 2017), in order to perform the important tasks entrusted to it; 4.Recalls the Agencys contribution to developing smart standards on noise and CO2 emissions and its responsibility for the environmental certification of aeronautical products, parts and appliances; believes that with further resources the Agency can play a leading role in developing and implementing measures to improve the sustainability of aviation; 5.Welcomes the significant efforts made by the Agency to create a single European drone area; 6.Is concerned that aviation is an attractive target for cyber attacks and that software errors may have serious consequences; calls on the Agency, together with the European Centre for Cybersecurity in Aviation (ECCSA), to further increase the digital resilience of European aviation; 7.Is concerned that the forthcoming incorporation of Remotely Piloted Aircraft Systems (RPAS) will cause concern about safety among the public; calls on the Agency to take greater account of general safety concerns and the concerns of the authorities regarding prosecution of offenders; 8.Calls on the Agency to ensure that Europe acquires, as quickly as is feasible without jeopardising safety, rules on the commercial sale of drones that are uniform and easy to comply with; is concerned that the Agency does not have sufficient financial and human resources for the new remit; 9.
• Notes that the Agency ended the year with an overall deficit of 2 million EUR (a surplus of 0,7 million EUR related to subsidy activities and a deficit of 2,7 million EUR related to fees and charges activities); notes that the fees and charges deficit is deducted from the accumulated surplus, reducing it from 54,9 million EUR to 52,2 million EUR; observes that concerning activities related to fees and charges, the income rose by 1,8 million EUR compared to 2017, however staff costs increased by 3,7 million EUR, administrative costs by 0,9 million EUR and operational costs by 2,6 million EUR; notes that for subsidy-related activities an increase of subsidy by 2 million EUR was enough to cover the rise in administrative costs by 0,1 million EUR and operational expenditures by 1,4 million EUR; 10.Commends steps taken to increase the efficiency of the Agency, such as the launch of the Lean Efficiency Agility Programme (LEAP) and other efficiency initiatives, which resulted in a total reduction in workload equivalent to 16 employees working full-time and enabled the Agency to redeploy posts and to cope with the increased workload and the revised quality needs of legacy activities; also welcomes the increasing digitalisation, automation and simplification of financial processes, leading to 86 % of financial transactions being processed paperless; 11.Is pleased that the Agency has implemented the recommendation of the Court of Auditors to ensure the independence of the accounting officer, who now functionally reports to the Agencys Management Board and administratively the Agencys Executive Director; 12.Welcomes steps taken by the Agency to achieve gender balance, such as encouragement of female applications during selection procedures, offering favourable working conditions and flexible arrangements linked to maternity; welcomes the formation of a gender balance advocacy group to raise awareness of gender balance issues; reiterates its call on the Member States and the Commission to take into account gender balance when nominating members of the Board; 13.Welcomes the adoption of the Guidelines on Whistleblowing by the Management Board of the Agency and calls on the Agency to ensure their implementation; notes that the Internal Audit Services performed a review of ethics in 2018, covering areas of the Code of Conduct, ethics and fraud, with draft audit report expected in the beginning of 2019; reiterates, in this context, the need to have in place safeguards against conflicts of interest; 14.Highlights that the Agency certifies aircraft based on the demonstration that its design complies with all relevant airworthiness requirements and all features are safe; points out that an audit should be carried out to assess why the Agency deemed the Boeing 737 MAX compliant with those requirements; 15.Proposes that Parliament grants the Executive Director of the Agency discharge in respect of the implementation of the Agencys budget for the financial year 2018.
• INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION

The TRAN Committee has invited the Executive Director of the European Aviation Safety Agency (EASA) on Aviation Safety for an exchange of views. Mr Ky will present EASA's activities and up-date the TRAN committee on the Boeing 737 MAX issue. The exchange of views will take place on Tuesday morning, 3 September 2019 in room PHS 1A2 from where it will be webstreamed.

• However, Aircraft Engineers International (AEI)emphasizes that aircraft safety should be proactive; pointing out that it has previously advised the agency of other regulatory areas that require attention.
• Head of EASA Patrick Ky stated during a Norwegian conference (30thJanuary 2019) that EASA's safety standards were not uniformly interpreted in Europe.
• Aircraft Engineers International calls on EASA to ensure that its own rules are strictly enforced, that all audit reports are dealt with promptly, and that "release to service" verification requirements are uniformly understood throughout Europe.
• Aircraft Engineers International (AEI) was formed in 1971 and represents the collective interests of over 30,000 Licensed Aircraft Maintenance Engineers in over 30 countries.

• DuraCoatings Holdings, LLC (DuraCoatings), a leading industrial coatings company, based in Oklahoma City, Oklahoma, is proud to announce DCI Industries, a subsidiary of DuraCoatings, received approval and designation by the European Aviation Safety Agency (EASA) as an EASA Part 145 Repair Station (#EASA.145.6864).
• As a FAR 145 Repair Station, DuraCoatings has a Limited Rating with Specialized Services to provide chrome plating, sulfamate nickel plating, zinc and manganese phosphate coatings, and thermal spray coating for landing gear, airframe, and other airplane components.
• We are excited to begin offering this capability to both existing and new customers, said Dennis Glasco, President of DuraCoatings.
• The DuraCoatings team continues to demonstrate why theyre a leader in the industrial component repair and coatings sector.