2016 Report on Budgetary and Financial Management

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2 2 Table of Contents 1. GENERAL INFORMATION OVERVIEW OF THE BUDGET Explanations on the budget structure Distribution of 2016 appropriations Initial Budget, Amending Budget and Final Budget BUDGETARY TRANSFERS BUDGET IMPLEMENTATION EXPENDITURE Major aspects of the implementation of the budget Overall Budget Implementation Rate Distribution of appropriations by title Budget Implementation by Fund Source APPROPRIATIONS CARRIED OVER FROM 2016 TO IMPLEMENTATION OF APPROPRIATIONS CARRIED FORWARD FROM 2015 TO REVENUE... 19

3 3 1. GENERAL INFORMATION THE AGENCY The European Aviation Safety Agency (EASA or the Agency) is an agency of the European Union. As an EU agency, EASA is a body governed by European public law; it is distinct from the EU Institutions and has its own legal personality. EASA was set up by a Council and Parliament regulation (Regulation (EC) 1592/2002 repealed by Regulation (EC) No 216/2008) and was given specific regulatory and executive tasks in the field of civil aviation safety and environmental protection. Established in 2002, the Agency is currently based in Cologne Germany, and it employs approximately 800 professionals from the 32 EASA Member States. The Agency has established international permanent representations in Canada (Montreal), USA (Washington) and China (Beijing). An additional office will be opened soon in Asia (Singapore). MISSION The Agency s mission is to: Ensure the highest common level of aviation safety protection for EU citizens in particular by proactively managing existing and emerging safety risks; Ensure the highest common level of environmental protection; Establish single regulatory and certification processes among Member States; Facilitate the internal aviation single market and create a level playing field; Work with other international aviation organisations and regulators. TASKS In order to fulfil its mission the Agency was entrusted with the following tasks: Develop programmes and systems to manage proactively existing and emerging aviation safety risk (e.g. cyber security, conflict zones, drones, etc.); Draft and maintain rules in all fields pertinent to the Agency s mission, with the aim of ensuring that they are effective, proportionate and remain relevant; Certify and approve products and organisations, in fields where the Agency has exclusive competence; Provide oversight and support to Member States; Promote the use of European and worldwide standards; Cooperate with international actors in order to achieve the highest safety level for EU citizens globally (e.g. EU safety list, Third Country Operators authorisations). FUNDING The main sources of funds for the Agency are: Fees paid by applicants for certificates and approvals issued, maintained or amended by the Agency in accordance with regulation (EC) No 319/2014 on the fees and charges levied by the Agency; A contribution from the European Union and from any European third country which has entered into the agreements referred to in Article 66 of Regulation (EC) No 216/2008; Specific EU funded projects through grants and procurement procedures outside the scope of the Agency s core tasks. This mostly concerns technical cooperation with third countries; Charges for publications, handling of appeals, training and any other service provided by the Agency.

4 4 As a general comment, it should be noted that the financing model of the Agency is based on the assigned revenue concept compared to universal budgeting model as described in the study¹ from DG internal policies. The assigned revenue model presents a clear cost differentiation between industry and European Union funded activities based on a cost accounting system. THE AGENCY s STRUCTURE The Agency is managed by the Executive Director appointed by the Agency's Management Board and is completely independent in the performance of his/her duties in particular for taking decisions on safety issues. He is assisted by four Directors. An independent Board of Appeal has been established and shall be responsible for deciding on appeals against the Agency s decisions. The Management Board, which brings together representatives of the Member States and the Commission, is responsible for the definition of the Agency's priorities, the approval of the budget and for monitoring the Agency's operation. The EASA Stakeholder Advisory Body advises the Agency and assists the Management Board in its work. It comprises organisations representing aviation personnel, manufacturers, commercial and general aviation operators, maintenance industry, training organisations and air sports. FINANCIAL FRAMEWORK The financial framework is defined in the Agency's financial regulation adopted by the Management Board (decision ) and in its implementing rules. The report on budgetary and financial management has been established in accordance with article 93 of the Agency's financial regulation and gives an account, both in absolute terms and expressed as a percentage, of the rate of implementation of appropriations together with summary information on the transfers of appropriations among the various budget items ¹

5 5 2. OVERVIEW OF THE BUDGET 2.1 Explanations on the budget structure The Agency manages its budget following the assigned revenue model in compliance with its basic regulation (article 64.5 of regulation 216/2008). The assigned revenue model is characterised by the assignment of fees and charges revenue to expenditure for the provision of industry services. The model builds on a clear distinction and strict accounting separation between revenue from fees and charges for industry services and revenue from the Union budget for the implementation of public tasks. In the assigned revenue model surpluses and deficits on fees and charges activities are dealt with in a reserve fund (budgetary reserve) managed by the Agency. In other words, excess fees are carried over as assigned revenue and may be used for future Fees and charges funded activities or to absorb shortfalls in fee income in other years. Surpluses on revenue from the Union budget are reimbursed to the European Commission. In accordance with the principle of universality the all revenue and all expenditure are entered in a single budget. The budgetary accounts are kept in accordance with the EASA Financial Regulation and its implementing rules. The budget structure for EASA consists of administrative and operational appropriations and contains only non-differentiated appropriations meaning that the commitment and payment appropriations entered in the approved budget show the same amount. The commitment and payment appropriations are classified under titles indicating the nature of expenditure: Title 1 staff expenditure; Title 2 other administrative expenditure; Title 3 operational expenditure; Title 4 special operations programmes funded by assigned revenue from, inter alia, other Commission DGs in the form of grants & delegation agreements; Title 5 a reserve to finance future certification activities already financed by applicants. Appropriations are then further broken down into chapters, articles and items to arrive at individual budget lines categorised by nature and purpose to ensure that the intended use of appropriations is clear and unambiguous.

6 6 2.2 Distribution of 2016 appropriations Euro C1 R0 (Fees & Charges) R0 (Earmarked R8 (Earmarked C4 C5 C8 R8 (Fees & Charges) Projects) Projects) Total Budget Budget Title Year n Appropriations Assigned Revenue n Special operations Special operations Internal Assigned Internal Assigend Earmarked Funds Total appropriations Earmarked Funds Carried over from n-1 Carried over from n-1 Revenue n Revenue carried over Assigned Revenue for the year Assigned Revenue n Carried over from n-1 1. Staff 79,861, ,124, , , , , ,380, Administration 24,354, , ,392, , ,902, Operating Expenditure 8,138, ,545, , , ,977, ,375, ,731, Earmarked Expenditure 10,821, ,513, ,334, Fees & Charges Resreve 46,369, ,369, Total 112,353, ,044, ,821, , , ,728, ,528, ,513, ,718, C1 Current year appropriations: as the majority of EASA s budget lines are funded by a combination of F&C revenue and the EU subsidy, the C1 funds source is used for current year appropriations financed by the EU subsidy as well as appropriations financed by both EU subsidy and external assigned revenue from fees & charges; R0 (Fees & Charges): External assigned revenue appropriations related purely to certification activities funded by Fees and Charges Income; R0 (Earmarked Projects): External assigned revenue appropriations related to special operations programmes funded by, inter alia, other Commission DGs (Grants & delegation agreements mainly for International Technical Cooperation projects); C4 Internal Assigned revenue: relates mainly to income received from participants to EASA organised events; C5 Internal Assigned revenue (carried over); C8 EU subsidy and mixed funded appropriations carried over; R8 (Fees & Charges): External assigned revenue for certification activities carried over; R8 (Earmarked Projects): External assigned revenue for special operations programmes carried over.

7 7 2.3 Initial Budget, Amending Budget and Final Budget Appropriations authorised in the Agency's initial budget for 2016 totalled 176,479 K (2015, 162,026 K). One amending budget was adopted by the Management Board on 7 Jun 2016 to reflect the 2015 result related to certification activities and to cover increased operational expenditure requirements in the areas of rulemaking, international cooperation and certification systems development. Final available appropriations totalled 193,398 K (2015, 185,423 K): Funds C1 and 2016-R0 Title Chapter Initial Adopted Budget Amending Budget Transfers Description Final Budget Chapter 11 - Staff in active employment 79,473, ,921, Budget reallocation to cover staff cost including the 2016 staff salary adjustment and the pension contribution for Fees & Charges staff. 82,394, Chapter 12 - Miscellaneous expenditure on staff recruitment 1,439, , Budget reallocation to cover staff cost including the 2016 staff salary adjustment and the 1,137, pension contribution for Fees & Charges staff. Chapter 14 - Sociomedical infrastructure 4,844, , Budget reallocation to cover staff cost including the 2016 staff salary adjustment and the pension contribution for Fees & Charges staff. 4,324, Chapter 17 - Reception and events 192, , , Inauguration of the new EASA building 129, Total Title 1 - STAFF 85,948, , ,988, ,986, Chapter 20 - Rental of building and associated costs 15,336, , ,286, K to finance business needs described in the Amending budget. Budget reallocation to cover costs of projects: IM Program, SP 2013 Technical upgrade, Secured Access 14,010, Chapter 21 - Information and communication technology 4,799, ,573, Budget reallocation to cover costs of projects: IM Program, SP 2013 Technical upgrade, Secured Access Management and Mobile Workforce 6,372, Chapter 22 - Movable property and associated costs 2,894, , Budget reallocation to cover costs of projects: IM Program, SP 2013 Technical upgrade, Secured Access Management and Mobile Workforce 2,467, Chapter 23 - Current administrative expenditure 1,747, , , K to finance business needs described in the Amending budget. Budget reallocation to cover the evaluation of the transfer of ECCAIRS (Europ. Coordination Centre for Accident and Incident Reporting Systems) from JRC to EASA. 1,258, Chapter 24 - Postage and telecommunications 206, , Budget reallocation to amend the current specific contract for postage services due to 252, increased usage in Total Title 2 - BUILDING, EQUIPMENT AND MISCELLANEOUS OPERATING 24,982, , , ,359, Chapter 30 - Certification activities 23,130, , , Amending Budget - to fund the initial phase of a multi-annual programme (CORAL). Budget 23,548, reallocation to cover additional needs in outsourcing due to a significant increase in applications received for FSTD evaluations and MRB activities. Chapter 31 - Standardisation activities 203, , Budget reallocation to cover the reimbursement of standardisation inspectors seconded by the NAA. 225, Chapter 32 - Operational information technology 1,036, , Budget reallocation to cover consultancy services for consolidating the internal EASA Strategy 825, Chapter 33 - Communication and publication 428, , Budget reallocation to finance Phase II of the erules project approved by ExCom 415, Chapter 34 - Meeting expenses 753, , , Support EASA/FAA Safety Conference. Study on impact of drones 656, Chapter 35 - Translation and interpretation costs 137, , Budget reallocation to cover the evaluation of the transfer of ECCAIRS (Europ. Coordination Centre for Accident and Incident Reporting Systems) from JRC to EASA. Chapter 36 - Rulemaking activities 595, , , Amending Budget - to fund high priority environmental projects 1,487, Chapter 37 - Mission, entertainment and representation expe 6,222, , Budget reallocations to cover consultancy services for consolidating the internal EASA Strategy and defining an implementation plan of the cybersecurity roadmap and to cover purchase of smartphones and laptops. Chapter 38 - Technical training 587, , Budget reallocation to cover the costs of conducting an Impact Assessment on the planned transfer of the ECCAIRS Software suite to EASA. This Impact Assessment will concern not only EASA but also all the ECCAIRS users in Europe and Worldwide Chapter 39 - ED and strategic activities 790, , , Amending Budget - to conduct an Impact assessment & Evaluation of rules in the field of Aviation Safety. Budget reallocations to cover the evaluation of the transfer of ECCAIRS (Europ. Coordination Centre for Accident and Incident Reporting Systems) from JRC to EASA and to cover consultancy services for consolidating the internal EASA Strategy and defining an implementation plan of the cybersecurity roadmap. 43, ,875, , ,093, Total Title 3 - OPERATIONAL EXPENDITURE 33,881, ,042, , ,683, Provisions 31,668, ,943, ,241, Amending Budget - F&C provision has been adjusted to reflect the 2015 net result. Budget reallocation to cover additional needs in outsourcing due to a significant increase in applications received for FSTD evaluations and MRB activities; to cover staff cost including the 2016 staff salary adjustment and the pension contribution for Fees & Charges staff. Total Title 4 - SPECIAL OPERATION PROGREMMES p.m p.m. p.m p.m in the EASA Budget p.m 46,369, Total Title 5 - PROVISIONS 31,668, ,943, ,241, ,369, Grand Total 176,479, ,919, ,398, List of Amending Budgets adopted by the Management Board The Agency s financial regulation foresees the possibility to modify the budget according to evolving business needs. Following a comprehensive monitoring exercise at the end of the first quarter of 2016, and in order to reflect the 2015 net result, an amending budget was approved by the Management Board on 7 Jun Amending Budget No. Date of adoption Main Subject Description 1 7 Jun 2016 Mainly to reflect the 2015 result related to certification activities and to cover increased operational expenditure requirements in the areas of rulemaking, international cooperation and certification systems development Impact on Commitment Appropriations (in EUR) Impact on Payment Appropriations (in EUR) 16,919, ,919,000.00

8 8 3. BUDGETARY TRANSFERS Budgetary transfers involve the transfer of appropriations from one budget line to another during the course of the financial year and so constitute an exception to the budgetary principle of specification. The rules relating to budgetary transfers are laid down in Articles 27 & 28 of the EASA Financial Regulation. In accordance with Article 27, the Executive Director may: make transfers from one chapter to another and from one article to another without limit; make transfers from one title to another up to a maximum of 10 of the appropriations for the financial year shown on the line from which the transfer is made. Beyond this limit, the Executive Director may propose, to the Management Board, transfers of appropriations from one title to another. There were no transfers above the 10 limit requiring Management Board approval. Details about the transfers # From / to Date 1 From line 3000_CAO to 3000_DOA/ED 100,000 18/12/15 2 From line 3000_PRO to 3000_ETSO 5,000 11/01/16 3 From line 3400/ED to 3600/ED 86,000 12/02/16 4 From line 3400/FS to 3600/FS 60,000 18/03/16 5 From line 2040 to ,000 19/04/16 6 From lines 2040, 2050, 2200, 2210 to From lines 2300, 2320, 3500/ED to ,000 04/05/16 8 From line 2000 to ,000 25/04/16 9 From line 3700/FS to 3700/CT 35,000 26/04/16 10 From line 2330 to ,000 26/04/16 11 From line 2040 to ,000 02/05/16 12 From line 2040 to ,000 02/05/16 13 From line 2355/ED to ,000 10/05/16 14 From line 2355/ED to ,000 08/06/16 15 From line 2000 to ,000 23/05/16 16 From line 2330 to ,000 08/06/16 17 From line 1113 to ,000 08/06/16 18 From line 2203 to ,000 09/06/16 19 From line 3900 to ,000 16/06/16 20 From line 1172 to ,000 17/06/16 21 From BL 3000_DOA, POA, CAO to 3000_LA 22 From line 1111 to ,000 29/06/16 23 From line 2040 to ,000 29/06/16 24 From line 2355 to ,000 13/07/16 25 From line 2040 to ,000 14/07/16 26 From line 2330 to ,000 11/08/16 27 From line 2332 to ,000 19/08/16 28 From line 1111 to ,000 06/09/16 Reason Local transfer to cover costs related to 3000_DOA Local transfer to cover costs related to APU project (3000_ETSO) 630,000 02/05/16 Budget reallocation 3 to cover costs of projects: IM Program, SP 2013 Technical upgrade, Secured Access Management and Mobile Workforce 430,000 20/06/16 Local transfer to cover needs on 3000_LA 29 From lines 3000_POA & CAO to LA, GABA, FSTD 30 From BL 1172 to ,000 12/09/16 31 From BL 2100 to ,000 15/09/16 32 From BL 2300 to ,000 20/09/16 33 From BL 2000 to BL ,000 26/09/16 34 From BL 3000_ATO to 3000_POA 70,000 26/09/16 Local tranfer to cover needs on BL 3000_POA Budget reallocation 1 to cover the expenses related to the Evolution of the air/ground aviation communication in the next decades and the Budget reallocation 2 to cover rulemaking tasks 0196, 0581 and 0596 (e.g. Gap Analysis of Turkish Airlines in the Air Operations domain ) Local transfer to cover additional costs for technical facility management and consultancy services related to the MOVE 2016 Budget reallocation 4 to cover the evaluation of the transfer of ECCAIRS (Europ. Coordination Centre for Accident and Incident Reporting Systems) from JRC to EASA. Local transfer for covering extra insurance prime for business content insurance for which the amount insured will be increased in context of Local transfer following transfer of GA roadmap projects from FS to CT Directorate Local transfer to cover the expenses related to the legal case F-51/15 Budget reallocation 5 to cover costs of the set-up services of the Opal scanning devices and the integration with Planon Local transfer to cover the costs for consultancy services related to MOVE 2016 (Q3 and Q4) Budget reallocation 6 to cover all expenses related to memberships and subscriptions in 2016 Budget reallocation 7 to procure services related to the ARIS platform Local transfer for covering extra insurance prime for the electronic insurance for which the amount insured will be increased in context of the Budget reallocation 8 to cover all expenses related to legal subscriptions of ED.2 in 2016 Local transfer to cover payment of contracts of temporary workers in the period 01/07/2016 to 31/12/2016 Local transfer to complete the amount needed for the acquisition of electrical tables for EASA staff with medical confirmed condition. Local transfer to finance the study for the RMT.069 Local transfer to cover payment of annaul travel allowance to all staff eligible Local transfer to cover payment of housing/accommodation cost for EASA representatives in delegation Local transfer to complete the amount needed for the payment of the settlement building charges invoice related to year 2014 Budget reallocation 9 to cover expenses related to legal subscriptions of ED.2 in 2016 Budget reallocation 10 to cover unforeseen additional needs for external legal advice & support in lease & services related to EASA s premises Local transfer to cover settlement agreement F-06/15 Local transfer to cover costs for the legal advice and representation support on the oral part of litigation related to the use of software. Local transfer to cover the payment of contracts of temporary (interim) workers in the last quarter of ,000 06/09/16 Local transfers to cover needs on BL 3000_LA, GABA and FSTD Local transfer to cover the payment of extra overtime and stand-by duty compensation for IT and CS staff availability related to Project MOVE Local transfer to cover the costs of consultants to ensure projects and operations continuity Local transfer to cover increase of legal consultancy needs related to EASA premises in cologne Local transfer to cover additional insurance consultancy for year 2016

9 9 Budget Transfers (all amounts in Euros) Details about the transfers 35 From BL 2000 to BL ,000 28/09/16 36 From BL 3903 to 3600/SM 80,000 04/10/16 37 From BL 2300 to ,000 04/10/16 38 From BL 2355 to ,000 04/10/16 39 From BL 3500/ED to 3400/ED 20,000 04/10/16 40 From BL 3000_CAO to 3000_FSTD 100,000 04/10/16 41 From BL 2203 to ,000 13/10/16 42 From BL 2203 to ,000 17/10/16 43 From BL 2355/ED to 3700/ED 32,000 24/10/16 44 From BL 1132 to ,000 25/10/16 45 From BL 2108 & 2100 to ,000 28/10/16 Local transfer to procure more services to ensure the continuityof our operations on different systems 46 From BL 5000 to 3000_FSTD & 3000_MRB 670,000 03/11/16 47 From BL 3000_FSTD to 3000_LA, GABA, RC, CAO, ATO, ATM 366,000 08/11/16 Local transfer to return funds urgently needed to cover 3000_FSTD activities earlier this year 48 From BL 1700/SM, 2354/SM & 3500/SM to 3400/SM 20,000 09/11/16 49 From BL 3400/FS to 3100/FS 50,000 09/11/16 50 From BL 3400/CT to 3003/CT 48,000 09/11/16 51 From BLs 2000, 2040, 2050, 2203, 2300 to BL ,000 09/11/16 Budget reallocation 20 to finance the Plannon Phase II project 52 From BL 3000_FSTD to 3000_LA 100,000 22/11/16 53 From BL 3300 to ,000 24/11/16 54 From BL 3900 to 3700/SM 5,000 24/11/16 55 From BL 3800_SM to 3700_SM 5,000 25/11/16 56 From BL 3102 to 3500_SM 16,000 25/11/16 57 From BL 3903 and 3102 to ,000 25/11/16 58 From BL 2355 to ,000 01/12/16 Local transfer to cover the catering of the MB meeting taking place on 12-13th December From BLs 2101, 2106, 2108 to ,000 02/12/16 Local transfer to cover the IT Hardware planning 60 From BLS 2300, 2320, 2330, 2332, 2352, 2354/ED, 2355/ED to From BLs 3200, 3500/ED, 3700/FS 200,000 02/12/16 62 From BLs 3800/SM & 3102 to ,000 06/12/16 63 From BLs 1103, 1111, 1112, 1113, 1114, 1140, 1142, 1150, 1172, 1173, 1191, 1200, 1201, 1202, 1203, 1204, 1410, 1420, 1420_IT, 1430, 1700/ED, 1700/SM, 2000, 2030, 2040, 2050, 2330-R0, ,084, /12/16 C1, 2332, 2352, 2354/RS, 2355/ED, 3000, 3200-R0, 3500/ED, 3600/FS, 3600/SM, 3601, 3700/CT, 3700/FS, 3700/RS, 3700/ED, 3800/FS, 5000 to 1100, 1101, 1102, 1130, 1131, 1132, 1133, 1141 Local tranfer to cover costs of key walls&signposting project and FM consultancy expenses for Q Budget reallocation 11 to conduct a study in support of EASA rulemaking task RMT.0679, titled Revision of Surveillance Performance and Budget reallocation 12 to cover postage and delivery charges for the remaining months of Budget reallocation 13 to cover the membership to CEAS and subscriptions Budget reallocation 14 to cover the expenses of the 2017 EASA/FAA conference Local transfer to cover peak period on 3000_FSTD Local transfer for the purchase of a video camera slider and other accessories needed for the EASA new building inauguration Event Local transfer to cover the purchase of trolleys to be used in the conference area Budget reallocation 15 to cover all pending missions from Executive Directorate until the end of the year Local transfer to cover payment of Child birth allowances 2016 to all staff eligible Budget reallocation 17 to cover additional needs in outsourcing due to a significant increase in applications received for FSTD evaluations and MRB activities. Budget reallocation 16 to cover the agreed part of cost to be borne by EASA related to the European Conference in Poland on 23-24/11/2016 and the HLM Cybersecurity event in Romania on 7-8/11/2016. Budget reallocation 18 to reallocate appropriations in order to cover the reimbursement of standardisation inspectors seconded by the NAA. Budget reallocation 19 to finance a Research programme on collisions with UASs (Unmanned Aircraft Systems) and manned aircraft. Local transfer to cover the expected applications for large aeroplanes and to allow CT.1 to meet their outsourcing targets Budget reallocation 21 to finance Phase II of the erules project approved by ExCom Budget reallocation 22 to cover mission costs related to unplanned work on e.g. accident investigation, big data, cybersecurity, research or Budget reallocation 23 to cover an high value mission to Washington to support the contract to be concluded between DGCLIMA and EASA for Budget reallocation 24 to cover the translation of EGAST Leaflet GA5 Budget reallocation 25 to conduct a study to support EASA in the specifications and making of the Data Scientists and analysis team and to 186,000 02/12/16 Budget reallocation 26 to procure iphones and Surface Pro 4 computers in line with the Agency s renewal of mobile device initiative Budget reallocation 27 to cover consultancy services for consolidating the internal EASA Strategy and defining an implementation plan of the Budget reallocation 28 to cover the costs of conducting an Impact Assessment on the planned transfer of the ECCAIRS Software suite to EASA. Budget reallocation 29 to cover staff cost including the 2016 staff salary adjustment and the pension contribution for Fees & Charges staff. 64 From BLs 2000, 2051, 2200, 2300, 2352 Budget reallocation 30 to cover additional furniture acquisitions and to amend the current specific contract for postage services due to 40,000 06/12/16 to 2210, 2400 increased usage in From BL 2355/ED to ,500 06/12/16 Local transfer to cover costs of the MB meeting to be held on December From BL 1700/RS, 2040, 2330-C1, 2354/RS, 2354/SM, 2355, 3601, 3700/CT, 3700/ED, 3700/FS, 3700/RS, 3700/SM, 2101 to ,000 13/12/16 Budget reallocation 31 to cover purchase of smartphones and laptops.

10 10 4. BUDGET IMPLEMENTATION EXPENDITURE 4.1 Major aspects of the implementation of the budget The main facts that had an influence on the implementation of EASA s budget during 2016 were: Pension contribution paid by Fees and Charges revenue In accordance with Article 83a of the Staff Regulations, from 1 January 2016 agencies which are partly financed by fees have to pay the employers contribution corresponding to the proportion between the agency s revenues without the subsidy from the European Union and its total revenues. The pension contribution paid by EASA from fees & charges revenue amounted to 8,119 K during 2016; Staff cost increases in 2016 In 2016 the Agency filled all available posts authorised in its establishment plan (676 AST and AD posts). Additionally, the salary increase resulting from the application of the automatic annual updating of remunerations and pensions in line with the Staff Regulations had to be financed. Overall a total amount 2,038 K had to be transferred to Title 1 during the year to cover these additional requirements; Move 2016 EASA completed its move to a new, purposed-designed premises during 2016 without any disruption to business. This required an important investment which was partially supported by an increase in the EU Subsidy over two years: 1,500 K respectively for the years 2015 and Overall Budget Implementation Rate As a result of comprehensive in year budget monitoring, the final budget implementation rate for 2016 current year appropriations (C1) was very close to full implementation above 99 (98 in 2015) and well above the Commission target of 95. The budget implementation rate in relation to the execution of payments against amounts carried over to 2016 was above 96 (97 in 2015), also above the Commission target of 95.

11 Distribution of appropriations by title C1 and R0 funds Title 3, 23.4 Title 3, 24.6 Title 2, 16.5 Title 1, 60.1 Title 2, 17.2 Title 1, 58.2 Administrative Appropriations (Title 1 and 2) The increase in staff cost commitments of 13,537 K, from 74,230 K in 2015 to 87,767 K in 2016, was due to salary increase (+2.8 for staff based in Cologne and +3.3 for staff based in Brussels) and the Agency filled all posts according to the Establishment Plan 2016 (676 AST and AD posts during). Staff expenditure increased by 1.9 as a percentage of the overall budget in 2016 to 60.1 ( ). Other administrative expenditure commitments increased by 2,140 K in absolute terms to 24,060 K (21,919 K in 2015) and decreased by 0.7 as an overall percentage of the Agency s budget to 16.5 ( ). The increase in absolute terms is largely due to the costs for the Agency s move to its new premises in Cologne on 6 Jun Operational Appropriations (Title 3) Operational expenditure commitments increased by 2,764 K in 2016 to 34,101 K (31,337 K in 2015). The increase results, inter alia, from the combined impact of an increase in certification outsourcing costs (+ 538 K), increased international cooperation project expenditure (+ 867 K), increased missions costs (+ 668 K), increase in assistance to rulemaking activities costs (+748 K) and increase in IT costs (384 K). Operational expenditure decreased by 1.2 as a percentage of the Agency s overall budget during 2016 to 23.4 (24.6 in 2015).

12 Budget Implementation by Fund Source C1 Current year appropriations Title Chapter Final Budget Executed Commitment Committed Cancelled Appropriations Executed Payment Paid Carried over to 2017 (1) (2) (2)/(1) (1)-(2) (3) (3)/(1) (2)-(3) Chapter 11 - Staff in active employment 74,275, ,075, , ,007, , Chapter 12 - Miscellaneous expenditure on staff recruitment and transfer 1,137, ,135, , ,127, , Chapter 14 - Sociomedical infrastructure 4,324, ,314, , ,127, , Chapter 17 - Reception and events 124, , , , , Total Title 1 - STAFF 79,861, ,643, , ,360, , Chapter 20 - Rental of building and associated costs 14,010, ,762, , ,817, ,944, Chapter 21 - Information and communication technology 6,372, ,355, , ,931, ,423, Chapter 22 - Movable property and associated costs 2,467, ,463, , ,310, , Chapter 23 - Current administrative expenditure 1,253, ,224, , , , Chapter 24 - Postage and telecommunications 252, , , , Total Title 2 - BUILDING, EQUIPMENT AND MISCELLANEOUS OPERATING EXPENDITURE 24,354, ,057, , ,230, ,827, Chapter 31 - Standardisation activities 225, , , , Chapter 32 - Operational information technology 513, , , , Chapter 33 - Communication and publication 415, , , , , Chapter 34 - Meeting expenses 577, , , , , Chapter 35 - Translation and interpretation costs 43, , , , Chapter 36 - Rulemaking activities 1,487, ,476, , , ,147, Chapter 37 - Mission, entertainment and representation expenses 3,425, ,385, , ,152, , Chapter 38 - Technical training 360, , , , Chapter 39 - ED and strategic activities 1,093, ,088, , , , Total Title 3 - OPERATIONAL EXPENDITURE 8,138, ,998, , ,873, ,124, Grand Total 112,353, ,699, , ,464, ,235, Title 1 STAFF Chapter 11/Fund 2016-C1 covers staff costs according to the Staff regulations (basic salaries, allowances, pension contribution, staff insurance), secondment of national experts expenses, costs of assistance received from the Pay Master's Office (PMO) and covers the costs of external services and specific services (consultancy and studies) in the field of Human Resources. In 2016 the Agency filled all available posts authorised in its establishment plan (676 AST and AD posts). Additionally, the salary increase resulting from the application of the automatic annual updating of remunerations and pensions in line with the Staff Regulations had to be financed. Overall a total amount of 2,922 K had to be transferred to Chapter 11 during the year to cover these additional requirements. The Chapter 11 amount committed in 2016 was 74,075 K (69,572 K in 2015) and the budget implementation was 100 of the final budget appropriations allocated to this chapter in 2016 compared to 99 in Chapter 12/Fund 2016-C1 covers expenditure involved in the EASA recruitment procedures for Temporary and Contract Agent vacancies, travel expenses for EASA staff entering or leaving the services, installation & resettlement allowances, removal costs of Temporary and Contract Agents and daily subsistence allowances according to the Staff Regulations (Articles 5, 6, 7, 9 and 10 of Annex VII). The Chapter 12 amount committed in 2016 was 1,135 K (748 K in 2015) and the budget implementation was 100 of the final budget appropriations allocated to this chapter in 2016 compared to 77 in The amount increased in 2016 due to increased staff appointed during the year. Chapter 14/Fund 2016-C1 covers expenditure for EASA staff training (language training, financial management training, IT training, legal training, planning sessions, coaching and personal effectiveness), medical services and social welfare of staff (job tickets, relocation and school expenses). The Chapter 14 budget implementation was 100 (4,315 K) of the final budget appropriations allocated to this chapter in 2016 compared to 94 (3,820 K) in Chapter 17/Fund 2016-C1 covers the costs of official inter-agency receptions for the benefit of the staff members, and official events, including all staff meetings and departmental meetings. The Chapter 17 budget

13 13 implementation was 96 (119 K) of the final budget appropriations allocated to this chapter in 2016 compared to 56 (84 K) in Title 2 - BUILDING, EQUIPMENT AND MISCELLANEOUS OPERATING EXPENDITURE Chapter 20/Fund 2016-C1 covers the costs of the building rent, utilities, cleaning services, security and the EASA Move 2016 project. EASA completed its move to a new, purposed-designed premises during 2016 without any disruption to business. This required an important investment which was partially supported by an increase in the EU Subsidy over two years: 1,500 K respectively for the years 2015 and The amount committed in 2016 was 13,762 K (98 chapter budget implementation) compared to ,649 K (98 chapter budget implementation). Chapter 21/Fund 2016-C1-6,355 K (6,766 K in 2015) amount committed to cover the hardware, maintenance and installation costs of IT equipment; software and consultancy need for studies, organisational application development, data centre services, storage and IT security for the business purposes of the Agency. The Chapter 21 budget implementation was 100 of the final budget appropriations allocated for this chapter in 2016 compared to 99 in Chapter 22/Fund 2016-C1 covers the Agency expenditure for soft furnishing, kitchenette equipment, maintenance and repair of technical equipment. The amount committed was 2,464 K (100 chapter budget implementation) in 2016 compared to 36 K (90 chapter budget implementation). The increase is due to the EASA move to its new premises in Chapter 23/Fund 2016-C1-1,225 K (1,119 K in 2015) amount committed to cover the EASA expenditure for stationery and office supplies, financial charges and bank charges, EASA legal expenses, miscellaneous insurance costs, internal meetings costs, department removals and integrated quality management system costs. The amount increased in 2016 due to increased volume of department removal costs related to the Move 2016 project implementation. Chapter 24/Fund 2016-C1-252 K (195 K in 2015) amount committed to cover the official costs of the Agency on postal and delivery charges, including parcels sent by post, express mail and registered mail. There was a budget reallocation to amend the current specific contract for postage services due to increased usage in Title 3 - OPERATIONAL EXPENDITURE Chapter 31/Fund 2016-C1 covers expenditure for Standardisation inspection activities in the Member States and Associated countries and the costs of acquiring a special technical standards library for EASA, including the collection of standards kept in-house for consultation in carrying out the Agency's operational work. Chapter 31 amount committed was 224 K in 2016 (233 K in 2015) and indicated 100 chapter budget implementation for both years. Chapter 32/Fund 2016-C1 indicated 100 implementation (513 K) of the allocated budget to cover consultancy needs and studies to support the development of operational applications for the business purposes of the Agency. The following projects/activities were funded during 2016: Set-up and deployment of a European Aero-Medical Data Repository solution (223 K); Consultancy support for Third Country Operators project (149 K); Provision for a Proof of Concept demonstrating History of Adopted Amendment functionalities (58 K);

14 14 Project analysis and solution definition for various other projects (SEPIAC, Application Portal and other F&C funded projects) for 32 K. Chapter 33/Fund 2016-C1-409 K amount committed in 2016 (266 K in 2015) to cover costs for the internal and external communications activities of the Communications Department. This includes technical and other publications, crisis communication and management, advertising, including associated graphic design and printing, press conferences and public relations events, exhibitions and related promotional goods, as well as internal communications media. The increase in costs is due to implementation of an intranet migration project (110 K). The aim of this project is the redesign of the EASA 850-user intranet and its conversion into a more social intranet tool using Drupal 8. Chapter 34/Fund 2016-C1 501 K amount committed in 2016 (513 K in 2015) to cover the costs of organising meetings for the Operational Directorates of the Agency and the reimbursement of experts and other functional costs, including rental of rooms, catering, travel expenses, and daily allowances. Chapter 35/Fund 2016-C1 covers the costs of operational translations and publications of studies, reports, and other official working documents, including annual accounts, budgets, and activity reports, in the context of the official purposes of the Agency, charged by CdT, OPOCE and other translation centres. Chapter 35 amount committed was 42 K in 2016 (203 K in 2015) and indicated 98 chapter budget implementation in 2016 (63 in 2015). The costs decreased due to completion of the project Production of a website for a publication in 2015 and decreased requests for translation and publication services. Chapter 36/Fund 2016-C1 covers the costs of the Agency's Rulemaking studies, the outsourcing to external experts in Rulemaking activities and the costs of the Agency's international cooperation activities, including contribution fees, training fees, and workshop costs for developing countries. Chapter 36 amount committed was 1,476 K in 2016 (728 K in 2015) and indicated 99 chapter budget implementation for 2016 compared to the 2015 levels (97 ). The increase in expenditure is due to: Signed contracts for support on technical issues associated with aviation emissions (499 K) and technical issues associated with aviation noise (150 K); Increased number of International Cooperation projects performed in An Amending budget was approved to support International cooperation projects related to: o SOFIA (Safety Oversight Facilitated Integration Application) phase out CASSOA (Civil Aviation Safety & Security Oversight Agency) support steps 1 & 2) - 90 K; o RSOO (Regional Safety Oversight Organisation) event in Africa - 40 K; o International cooperation activities in the Caribbean region - 61 K. Chapter 37/Fund 2016-C1 covers mission expenses, travel insurance, expenditure on transport and payment of daily mission allowances in accordance with the provisions of the EASA Staff Regulations and the EASA Mission Guide. The budget implementation for Chapter 37 amounted to 3,385 K (3,002 K in 2015) and indicated 99 chapter budget implementation for 2016 (92 in 2015). The mission costs increased due to increased activities and staff during Chapter 38/Fund 2016-C1 covers the costs of technical training for the Agency's Operational Directorates, in the interest of the Service, including the outsourcing of activities and to cover the costs of Pilot Training and proficiency including associated costs such as examination, medical, equipment, administrative costs, and for other outsourcing and consultancy, etc. The budget implementation for Chapter 38 amounted to 360 K (263

15 15 K in 2015) and indicated 100 chapter budget implementation in 2016 (98 in 2015). The technical training expenditure increased due to increased training activities performed in Chapter 39/Fund 2016-C1 covers the costs of studies and operational costs for safety intelligence and performance; research studies/projects relevant to aviation safety; Big Data project studies and costs related to the Aviation cyber security project studies and consultancy support. The budget implementation for Chapter 39 amounted to 1,088 K (976 K in 2015) and indicated 100 chapter budget implementation for 2016 (98 in 2015). An Amending budget for 40 K was approved to conduct an Impact assessment (IA) & Evaluation of EASA rules in the field of Aviation Safety (ASSESS II). The following projects/activities have been funded during 2016: Technical study on possible scenarios related to transferring all the functions that JRC performed to EASA (both ECCAIRS software suite and the ECR) in order to support a fact based decision by DG Move, JRC and EASA (160 K); Contribution to the Definition of Ice Water Content of Clouds at High Attitude (200 K); Study on Disbond of sandwich structures DoSS (150 K); Impact assessment cybersecurity threats (190 K); Data Safety projects (118 K ); Cybersecurity Strategy project (198 K). R0 (Fees & Charges) Title Chapter Final Budget Executed Commitment Committed Cancelled Appropriations/Reserve Executed Payment Paid Carried over to 2017 (1) (2) (2)/(1) (1)-(2) (3) (3)/(1) (2)-(3) Chapter 11 - Staff in active employment 8,119, ,119, ,119, Chapter 17 - Reception and events 5, , , , Total Title 1 - STAFF 8,124, ,121, , ,121, Chapter 23 - Current administrative expenditure 5, , , , Total Title 2 - BUILDING, EQUIPMENT AND MISCELLANEOUS OPERATING EXPENDITURE 5, , , , Chapter 30 - Certification activities 23,548, ,147, , ,543, ,604, Chapter 32 - Operational information technology 312, , , , Chapter 34 - Meeting expenses 79, , , , Chapter 37 - Mission, entertainment and representation expenses 2,450, ,435, , ,326, , Chapter 38 - Technical training 156, , , , , Total Title 3 - OPERATIONAL EXPENDITURE 26,545, ,099, , ,215, ,883, Grand Total 34,674, ,222, , ,338, ,883, Title 1 STAFF Chapter 11/Fund 2016-R0 covers staff costs according to the Staff regulations for Constitution or maintenance of pension rights. In accordance with Article 83a of the Staff Regulations, from 1 January 2016 agencies which are partly financed by fees have to pay the employers contribution corresponding to the proportion between the agency s revenues without the subsidy from the European Union and its total revenues. The pension contribution paid by EASA from fees & charges revenue amounted to 8,119 K during Chapter 17/Fund 2016-R0 covers costs of the EASA Certification Directorate receptions for the benefit of the staff members and official events, including all staff meetings, departmental meetings. The budget implementation for Chapter 17 amounted to 2 K (2 K in 2015) Title 2 - BUILDING, EQUIPMENT AND MISCELLANEOUS OPERATING EXPENDITURE Chapter 23/Fund 2016-R0-2 K amount committed in 2016 (3 K in 2015) to cover expenditure for representation costs for the EASA Certification Directorate activities. Title 3 - OPERATIONAL EXPENDITURE

16 16 Chapter 30/Fund 2016-R0 covers the costs of certification tasks and related services outsourced to National Aviation Authorities and Qualified Entities under corresponding framework contracts and miscellaneous costs deriving from Fees & Charges Regulation. Chapter 30 amount committed was 23,148 K in 2016 (22,578 K in 2015). The following certification activities were funded in 2016: Certification activities Air Traffic Management ATM (33 K) Certification activities Flight Crew License Organisations (15 K) Certification activities Continuing Airworthiness Organisations (5,793 K) Certification activities Design Organisations (653 K) Certification activities Flight Simulator Training Devices FSTD (5,504 K) Certification activities General Aviation and Balloon Airship (1,980 K) Certification activities Large Aeroplanes (3,350 K) Certification activities Maintenance Review Board MRB (1,547 K) Certification activities Production Organisations (2,266 K) Certification activities Propulsion (145 K) Certification activities Rotorcraft (1,170 K) Initial phase of a multi-annual programme (CORAL) with the objective to improve the EASA services delivered for certification and approval activities (381 K); Second phase of project Gateway improve applicants services in the agency and its system (236 K). Chapter 32/Fund 2016-R0 accounted for 311 K to cover consultancy needs and studies to support the development of operational applications for the business purposes of the Agency. Chapter 34/Fund 2016-R0 amount committed 61 K in 2016 (152 K in 2015) to cover the costs of organising meetings and the reimbursement of experts and other functional costs, including rental of rooms, catering, travel expenses, and daily allowances for the EASA Certification Directorate activities. Chapter 37/Fund 2016-R0 covers mission expenses, travel insurance, expenditure on transport and payment of daily mission allowances in accordance with the provisions of the EASA Staff Regulations and the EASA Mission Guide for the EASA Certification Directorate activities and for Remotely Piloted Aircraft Systems and Joint Authorities for Regulation of Unmanned Systems mission costs. The budget implementation for Chapter 37 was 2,436 K in 2016 (2,295 K in 2015). Chapter 38/Fund 2016-R0 covers costs of technical training for the Agency's Operational Directorates, in the interest of the Service, including the outsourcing of activities and costs of Pilot Training and proficiency including associated costs such as examination, medical, equipment, administrative costs for the EASA Certification Directorate activities. The budget implementation for Chapter 38 amounted to 143 K (116 K in 2015). R0 and R8 Title 4 - Special Operations Programmes Fund Source Chapter Final Budget Executed Commitment Committed Cancelled Appropriations/Reserve Executed Payment Paid Carried over to 2017 (1) (2) (2)/(1) (1)-(2) (3) (3)/(1) (2)-(3) B2016-R0 Chapter 40 - Technical cooperation with third countries 10,808, ,065, ,742, ,721, ,343, B2016-R0 Chapter 41 - Research programmes 13, , , , B2016-R0 Total 10,821, ,077, ,744, ,733, ,343, B2016-R8 Chapter 40 - Technical cooperation with third countries 2,502, ,751, , ,751, B2016-R8 Chapter 41 - Research programmes 10, , , , B2016-R8 Total 2,513, ,760, , ,760, Total Title 4 - SPECIAL OPERATION PROGREMMES 13,334, ,837, ,497, ,493, ,343,703.72