2011 discharge: European Aviation Safety Agency (EASA)

Having examined the revenue and expenditure accounts for the financial year 2011 and the balance sheet at 31 December 2011 of the European Aviation Safety Agency, as well as the Court of Auditors' report on the annual accounts of the Agency for the financial year 2011, accompanied by the Agency's replies to the Court's observations, the Council recommends European Parliament to give a discharge to the Executive Director of the Agency in respect of the implementation of the budget for the financial year 2011.

The observations in the Court of Auditors' report in relation to the financial year 2011 call for some comments by the Council, which may be summarised as follows:

• the Council welcomes the Court's opinion that, in all material respects, the Agency's annual accounts present fairly its financial position as at 31 December 2011 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of the Agency's Financial Regulation, and that the underlying transactions for that financial year are legal and regular;
• nevertheless, it is concerned about the Court's findings that an important cross-title transfer operation took place without the approval of the Agency's management board and despite a low implementation rate on the budget lines concerned. The Council recalls that this situation does not comply with the budgetary principle of specification and calls on the Agency to improve its budget planning and implementation, in full respect of the budgetary principle of sound financial management and in compliance with the Financial Regulation;
• furthermore, the Council recalls that in line with the budgetary principle of annuality carry-overs should be strictly limited;
• it also regrets that the Court found deficiencies in the Agency's asset management and urges the Agency to take appropriate action with a view to reviewing the procedures and implementing the necessary improvements;
• in terms of the financial risk management, the Council notes the weaknesses identified by the Court in the Agency's treasury policy and calls on the Agency to remedy them without delays;
• lastly, the Council encourages the Agency to pursue its efforts to address the shortcomings detected by the Court in its staff recruitment procedures.