Embed Size (px)
Citation preview
EUROCONTROL
FOUNDINGMEMBER
NETWORKMANAGER
EUROCONTROL AgencyAnnual Accounts
SUPPORTING EUROPEAN AVIATION
As at 31 December 2020
EUROCONTROL AGENCYAnnual Accounts
As at 31 December 2020
TABLE OF CONTENTS
4
1. Foreword and corporate governance 7
2. Financial Accounts 15
2.1. Income statement 17
2.2 Statement of Comprehensive Income 17
2.3 Statement of Financial Position 18
2.4 Statement of Changes in Equity 20
2.5 Cash Flow Statement 21
2.6 Notes to the Financial Statements 22
2.6.1 Corporate information 22
2.6.2 Significant accounting policies 22
2.6.2.1 Basis of preparation 22
2.6.2.2 New standards applicable from year 2020 23
2.6.2.3 Significant accounting judgement, estimates and assumptions 23
2.6.2.4 Summary of significant accounting policies 25
2.6.2.5 Future change in accounting policies 29
2.6.3 Revenue 30
2.6.4 Other Income 31
2.6.5 Employee Benefits Expenses 31
2.6.6 Other Expenses 31
2.6.7 Finance & Other Income 32
2.6.8 Finance Costs 32
2.6.9 Property, plant & equipment 33
2.6.10 Intangible Assets 35
2.6.11 Fair value of unquoted instruments 36
2.6.12 Receivables from Member States 36
2.6.13 Other receivables 37
2.6.14 Accrued Income 38
2.6.15 Marketable securities 38
2.6.16 Cash & short-term deposits 40
2.6.17 Employee Benefit Liability 40
5
2.6.18 Provisions 49
2.6.19 Financial Liabilities 50
2.6.20 Trade and Other Payables 52
2.6.21 Accrued Income and deferred charge 53
2.6.22 Commitments and contingencies 53
2.6.23 Related party disclosures 55
2.6.24 Financial risk management objectives and policies 55
2.6.25 Financial Instruments 59
2.6.26 Events after financial position date 59
3. Budgetary Accounts 61
3.1 Part I 64
3.2 Part IX 68
3.3 Part II 69
3.4 Part III 70
3.5 Part IV 71
3.6 Part V 72
3.7 Part VII 73
3.8 Part X 74
4. EUROCONTROL Part of the Cost Base 75
4.1 Cost Base - Part I & X 76
4.2 Cost Base – Part IV (MUAC support cost & tax compensation) 77
4.3 Cost Base – Part IX 78
4.4 Cost Base – Part III 79
4.5 Evolution 2016-2020 Outturn Costbase (All Budgetary Parts) 80
5. AUDIT REPORT 82
7
1. FOREWORD ANDCORPORATE GOVERNANCE
8
FOREWORD TO THE AGENCY’S2020 ANNUAL ACCOUNTS
European aviation continues to face an unprecedented crisis
due to the COVID-19 pandemic and its impact on global air
travel.
In April 2020, the Permanent Commission approved an
amendment to the maximum amount the Agency may
borrow to finance a COVID-19 Financial Relief Package in order
to provide optional financial liquidity to States participating in
the route charges system (and their ANSPs) and put in place
an additional loan facility for a maximum amount of €1,270
million.
This measure was approved due to the significant drop
in traffic as a result of COVID-19 and to limit the cash flow
shortage from deferred payments of route charges for the
period March to July, by permitting the Agency via a loan
facility to help cover the minimum operating costs required
by States and their ANSPs to maintain pan-European safety
critical infrastructure and continue to provide safe services
during the period when airlines are unable to pay.
The reimbursement of the loan granted to EUROCONTROL
by the lenders is facilitated through the route charges
collected by EUROCONTROL on behalf of the States opting
in. This mechanism is reflected in a “Letter of Agreement and
Instruction” which was a requirement to receive financial
support through EUROCONTROL.
The total amount borrowed by EUROCONTROL under this
loan facility was €272.0 million of which €97.3 million have
already been reimbursed, with the remaining 4 repayments
scheduled from June 2021 to March 2022.
The main impact of the crisis on the 2020 Annual Accounts
of the Agency is a reduction in revenues of some €35
million, from €620.3 million in 2019 to €585.4 million in 2020
due to measures taken to relieve the burden on member
states. Employee benefit expenses increased due to salary
adjustments and to increased pension cost, rising from €571.6
million in 2019 to € 589.1 million in 2020.
The Agency reduced its overall staffing level (officials, servants,
and contract staff) to 1,845 in 2020, compared to 1,904 in 2019,
and 1,898 in 2018. Other expenses were reduced to €154.3
million in 2020 from €164.7 million in 2019 due to reduced
external assistance, accommodation, and communications
costs.
Depreciation remained constant reflecting limited investment
expenditure and finance costs rose considerably due to a
larger loss on marketable securities in 2020. Finance revenue
fell significantly to €129.6 million in 2020 from €232.2 million
in 2019 due to market impacts on unrealised income on
pension fund marketable securities.
Following the change in the recognition of pension fund
receivables for reimbursement rights in 2018, the Agency no
longer recognises future contributions due from Member
States as an asset. The amount due is reflected as negative
equity in the Agency’s statement of financial position. The
discount rate used to calculate the actuarial value of employee
benefits fell considerably from 1.05 per cent at the end of
2019 to 0.50 per cent at the end of 2020, reducing equity by
some €1,006.1 million. This change results in a negative equity
of €8,298.5 million for the year ending 2020.
Adriaan HeerbaartDirector Central Route Charges Office and Finance
9
Directors
Eamonn BrennanDirector General
Adriaan HeerbaartDirector Central Route Charges Office and Finance
John SanturbanoDirector Maastricht Upper Area Control Centre
Philippe MerloDirector European Civil-Military Aviation
Iacopo PrissinottiDirector Network Management
Sabrina DepickerHead of Human Resources and Services
Registered OfficeRue de la Fusée 96, 1130 Brussels
11
The AgencyThe EUROCONTROL Agency is responsible for performing
tasks prescribed by the Convention or entrusted to it by
the Permanent Commission. The Director General enjoys
wide independence with regard to the management of the
Agency.
Stakeholder involvementEUROCONTROL is an intergovernmental Organisation,
driven by its member States (civil and military authorities).
However, it also aims to ensure that the interests of all aviation
stakeholders are represented in its decision-making process.
Consequently, stakeholders such as airspace users, air
navigation service providers and airports are now fully
involved in steering the Agency’s efforts to help create the
Single European Sky at a pan-European level.
In essence, the governance arrangements break down into
three different levels:
• At Organisation level, an Air Navigation Services Board
(ANSB) is in place to advise on the Agency’s Business Plan,
including associated financial commitments, before their
submission to the Provisional Council for approval.
• At project and programme level, various advisory and
consultative bodies composed of stakeholders (e.g. the
Military ATM Board - MAB) provide advice to the Director
General and where appropriate to the Provisional Council
Strong coordination between these groups contributes
to the Agency’s full alignment with the strategic priorities
and objectives agreed with the Member States and
stakeholders.
The route charges system continues to be assisted,
supported and monitored by the enlarged Committee for
Route Charges, and MUAC by the Maastricht Coordination
Group.
EUROCONTROL is an international organisation established
under the EUROCONTROL Convention of 13 December 1960,
subsequently amended on 12 February 1981 (Amended
Convention). The EUROCONTROL Convention was further
revised on 27 June 1997 (Revised Convention). Pending
the entry into force of the 1997 Revised Convention,
the EUROCONTROL Member States agreed on the early
implementation of specific provisions thereof.
Governance structureEUROCONTROL comprises three organs: two governing
bodies (the Permanent Commission and the Provisional
Council) and one executive body (the Agency).
EUROCONTROL Permanent CommissionIn the EUROCONTROL Permanent Commission, Member
States are represented at ministerial level. The Permanent
Commission formulates the Organisation’s general policy and
is the ultimate decision-making body of the Organisation.
It also approves the Agency’s annual work programme, the
five-year programme, the Agency’s budget, the Contract
Regulations, Financial regulations and Staff Regulations, and is
responsible for appointing the Director General and Directors.
It gives a final ruling on the Agency’s annual accounts.
EUROCONTROL Provisional CouncilMember States are represented in the Provisional Council at the
level of Directors General of Civil Aviation. The European Union
participates in the work of the Provisional Council.
The Provisional Council is responsible for preparing the work of
the Permanent Commission, implementing EUROCONTROL’s
general policy, as established by the Permanent Commission,
and for supervising the Agency’s work.
EUROCONTROL’s institutional structure includes a number
of advisory bodies to the Provisional Council and/or to the
Permanent Commission that monitor the transparency of the
Agency’s work, supervise operations in specific areas, facilitate
dialogue and coordinate work programmes in certain domains.
CORPORATE GOVERNANCE
12
Some of the key features are described below.
Corporate risk management EUROCONTROL has designed risk management systems to
identify, assess and where necessary take action to counteract
or mitigate any risks associated with its activities. Corporate-
wide guidance on risk management has been developed. Risk
management is an integral part of management activity, and
is integrated into the business planning process.
Internal auditEUROCONTROL’s Internal Audit Service provides an objective
and independent assurance and consultancy function. Its
functions include recommending to Agency Management
effective internal controls designed to help meet the Agency’s
objectives, assisting the Agency in improving the effectiveness
of its risk management, and promoting sound corporate
governance and corporate ethics in the Agency.
These activities support Agency management in overseeing
an effective system of internal controls designed to help the
Agency meet its objectives.
In determining its work programme and exercising its
functions, the Internal Audit Service evaluates risk exposures
relating to the Agency’s governance, operations, assets, and
information systems, including the:
• Reliability and integrity of financial and operationa
information;
• Effectiveness and efficiency of operations and
programmes;
• Safeguarding of assets;
• Compliance with laws, regulations policies, procedures
and contracts.
The Head of Internal Audit, whose appointment by the
Director General is approved by the Provisional Council and
the Enlarged Committee for Route Charges, reports directly to
the Director General.
Executive responsibility for internal control is vested in the
Director General. The system exists to ensure that Agency’s
objectives are achieved efficiently and economically, and in
compliance with EUROCONTROL’s regulations. It is designed
to manage rather than eliminate the risk of failure to achieve
business objectives.
The Agency’s internal control system comprises the following
elements:
• Financial, Contract, Staff and Data Protection Regulations
• Annual Budget and Five-Year Programme
• Agency Business Plan
• Performance measurement systems and activity
reports
• Decisions of the Director General or Directors,
organising the Agency, allocating specific
responsibilities and delegating powers
• An accounting system
• Segregation of duties between the functions of fund
managers, authorising officers, accountants and
treasurers
• A Chief Risk Officer and a corporate risk
management system
• An internal audit function
• Annual Accounts
• External Audit
• A “whistle-blowing” procedure as specified in the
Staff Regulations for staff to report any potential
financial wrongdoing.
INTERNAL CONTROL
13
She may bring matters that in her view are significant to the
attention of the Audit Board, the Provisional Council and the
enlarged Committee for Route Charges.
External auditThe Audit Board examines and reports annually on the Agency
accounts, the Route Charges system accounts, and the Pension
Fund Accounts and reports to the Permanent Commission,
via the Provisional Council. With regard to the financial
management of the Route Charges System, it reports also via
the Enlarged Committee. The Audit Board also reviews the level
of transparency of the Agency’s procedures and decisions.
The Board is independent from the Agency and has financial
resources specifically dedicated to its work, provided through
the Agency Budget and approved by the Commission. It is
composed of six members designated by six Contracting
States, on a rotating basis, for a period of four years. The Rules
of Procedure of the Audit Board stipulate that its members shall
be professional auditors. Board members are not paid by the
Agency, but are refunded in full for their travel expenses.
Annual accountsEUROCONTROL produces budgetary accounts presenting
the execution of the budget and financial accounts showing
the financial position and the financial performance of the
Agency. The financial accounts are produced in accordance
with International Financial Reporting Standards and the
budgetary accounts according to the Financial Regulations.
The accounts of the Agency, Pension Fund and of the Route
Charges System are audited by the Audit Board, assisted
by an auditing company, selected through an open call for
tenders’ procedure. The annual accounts, including the audit
opinion, are submitted to the Permanent Commission via the
Provisional Council.
The Commission gives a final ruling on the accounts and
decides on the discharge to be given to the Director General
in respect of his financial and accounting management.
appointment of staff and remunerationEUROCONTROL officials/servants/contract staff members
are appointed by the Director General following a rigorous
recruitment and selection procedure involving selection
boards, which are made up of management and staff
representatives.
In accordance with the EUROCONTROL Staff Regulations,
any officials/servants/contract staff wishing to engage in
an outside activity must obtain the prior approval of the
Director General, and further measures are in place to manage
potential conflicts of interests.
The system of staff remuneration, including that of the Director
General and the Directors, is approved by the Permanent
Commission and is linked to the method used in the European
Union.
Prepared by the Head of Accounting & Treasury, in accordance
with the provisions of the Financial Regulations of the Agency,
their Rules of Application, the Director General’s Decisions,
Director CRCO and Finance Decisions and the Head of Human
Resources and Services’ Decisions.
Mr Ross WALTON,
Head of Accounting and Treasury
Mr Jean-Marc DE L’ARBRE,
Chief Accountant
Approved by Mr Adriaan HEERBAART,
Director Central Route Charges Office and Finance
15
2. FINANCIAL ACCOUNTS
16
17
EXECUTIVE SUMMARY
2.2 Statement of Comprehensive Income for the year ended 31 December
Experience adjustments and the effects of changes in actuarial assumptions result in actuarial gain and losses that can be
categorised as follows:
2.1 Income statement for the year ended 31 December
Income Statement
as at 31 DecemberNotes 2020
€0002019€000
Member States contributions 2.6.3 537.782 561.812
Rendering of services 2.6.3 47.641 58.486
Revenue 585.423 620.298
Other income 2.6.4 4.619 1
Employee benefit expenses 2.6.5 -589.059 -571.575
Depreciation expense on Property, Plant & Equipment 2.6.9 -14.486 -13.262
Depreciation expense on Intangible Assets 2.6.10 -6.517 -6.287
Other expenses 2.6.6 -154.305 -164.727
Finance & other income 2.6.7 129.614 232.176
Finance costs 2.6.8 -30.419 -9.899
Profit/ (loss) of the year -75.130 86.726
2020€000
2019€000
Profit/ (loss) of the year -75.130 86.726
Other comprehensive income to be reclassified to profit and loss in subsequent periods -23 17
Net (loss) gain on Available-For-Sale financial assets -23 17
Other comprehensive income not to be reclassified to profit and loss in subsequent periods -1.006.073 -1.637.592
Re-measurement employee benefits -1.006.073 -1.637.592
Other comprehensive income -1.006.096 -1.637.575
Total comprehensive income for the year -1.081.225 -1.550.848
In the actuarial study at 31.12.2020, the rate used for discounting the liabilities of the Fund is based on their duration of 22.85
years and reflects the rate for high-quality corporate EUR bonds of this duration. As at 31.12.2020 this rate amounted to 0.50%,
compared to 1.05% as at 31.12.2019. The yield curve of AA corporate bonds being significantly lower at 31.12.2020 compared to
31.12.2019, explains the important variation observed above to the employee benefits re-measurement calculations.
18
2.3 Statement of Financial Position as at 31 December
Assets Notes 2020€000
2019€000
Non-current assets
Property, plant and equipment 2.6.9 127.675 128.267
Intangible assets 2.6.10 21.999 16.758
Available for sale investments 2.6.11 296 319
Other receivables 2.6.13 43.697 3.939
193.667 149.283
Current assets
Receivables from Member States 2.6.12 150.902 135.116
Other receivables 2.6.13 219.387 41.772
Accrued income 2.6.14 1.512 1.194
Marketable securities 2.6.15 1.785.802 1.700.156
Cash and short term deposits 2.6.16 206.683 235.008
2.364.286 2.113.246
Total Assets 2.557.953 2.262.528
19
Equity and Liabilities Notes 2020€000
2019€000
Equity 2.4 -8.298.421 -7.217.182
Non-current liabilities
Employee benefit liability 2.6.17 10.215.690 9.027.641
Provisions 2.6.18 25.036 23.403
Financial liabilities 2.6.19 147.447 61.250
10.388.174 9.112.294
Current liabilities
Amounts to be reimbursed to Member States 48.396 64.256
Trade and other payables 2.6.20 101.523 111.924
Provisions 2.6.18 - -
Financial liabilities 2.6.19 192.289 37.250
Accrued charges and deferred income 2.6.21 125.992 153.986
468.200 367.416
Total liabilities 10.856.373 9.479.711
Total Equity and Liabilities 2.557.953 2.262.528
2.3 Statement of Financial Position (continued) as at 31 December
FINANCIAL ACCOUNTS
Amounts to be reimbursed to Member States represent the liability of the Agency which reflects the unused budget received
from the Member States.
20 20
2.4 Statement of Changes in Equityfor the year ended 31 December
2020€000
2019€000
At beginning of the year -7.217.230 -5.666.382
Profit/ loss for the year -75.130 86.726
Other Comprehensive Income -1.006.096 -1.637.575
At end of the year -8.298.456 -7.217.230
Amounts to be called from Member States represent the part of Employee Benefit Liability and provisions that must be funded by
future Member States contributions. In accordance with article 18 of the Financial Regulations, article 83 of the Staff Regulations
and article 30 of the Convention, Member States shall fund the payment for post employment benefits through the annual
budget and shall jointly guarantee the liability for these benefits.
21
FINANCIAL ACCOUNTS
2.5 Cash Flow Statement for the year ended 31 December
Notes 2020€000
2019€000
1. Cash & Cash Equivalents - Opening Balance 2.6.16 235.008 186.184
Profit/ (loss) of the year -75.130 86.726
Income tax paid - -
Non cash adjustment to reconcile profit/ (loss) ofthe year to net cash flows
Operating activities 108.432 -16.930
Depreciation and amortisation 2.6.9 & 2.6.10 20.679 19.523
Impairment losses 323 26
Change in provisions 186.624 185.798
Finance revenue 2.6.7 -129.614 -232.176
Finance costs 2.6.8 30.419 9.899
Change in working capital -290.441 33.397
Trade & other receivables -233.157 -8.346
Trade & other payables -57.284 41.743
Net Cash Flows from Operating Activities -257.138 103.193
Investing activities -40.464 -56.401
Purchase of property, plant and equipment 2.6.9 -13.893 -17.161
Purchase of intangibles 2.6.10 -11.758 -5.025
Purchase of securities & short term deposits -14.813 -34.215
Proceeds of securities - -
Interests received 35.534 20.052
Net Cash Flows from Investing Activities -4.930 -36.350
Financing activities
Interest paid -7.491 -7.766
Repayment of borrowings -90.801 -23.750
Proceeds from borrowings 332.037 13.500
Net Cash Flows from Financing Activities 233.745 -18.016
2. Net changes in cash & cash equivalents -28.323 48.828
Net foreign exchange difference - -
3. Cash & Cash Equivalents, Closing Balance 2.6.16 206.685 235.012
Cash and cash equivalents 206.685 235.012
Short-term deposits > 3 months < one year - -
Cash and short term deposits 206.685 235.012
744
22 22
2.6 Notes to the Financial Statements
2.6.1. Corporate information
EUROCONTROL is an intergovernmental organisation with 41
Member States as at 31 December 2020 and has as its primary
objective the development of a seamless, pan-European air
traffic management (ATM) system.
Originally established in 1960 as an international organisation
dealing with air traffic control for civil and military users in
the upper airspace of its founding European Member States
(Belgium, Germany, France, Luxembourg, the Netherlands and
the United Kingdom), EUROCONTROL now pioneers advances
in air traffic management technology, operational procedures
and system interoperability.
Working closely with Member States, air navigation service
providers, civil and military airspace users, airports, the
aerospace industry, professional organisations and European
institutions, EUROCONTROL is committed to ensuring that
airspace users and passengers can continue to benefit from a
safe, expeditious and efficient European air transport system.
Its roles and responsibilities are:
n Network manager and network management
functions
n Delivering the SESAR commitments
n Collecting route charges
n Providing regional ATC services
n Providing essential oversight and support to
regulations and
n Delivering the specific services requested by the ATM
industry.
EUROCONTROL financial regulation defines the general financial
and budgetary principles, in particular regarding the respect of
the budgetary equilibrium (see Article 1, paragraph 4).
The financial statements of EUROCONTROL Agency (‘the
Organisation’) for the year ended 31 December 2020 were
authorised by the Director General on 11 June 2021.
2.6.2. Significantaccountingpolicies
2.6.2.1 Basis of preparation
The financial statements are presented in euros and all values
are rounded to the nearest thousand (€ 000) except when
otherwise indicated.
The financial statements have been prepared on a historical
cost basis, except for available-for-sale investments and
marketable securities that have been measured at fair value.
Statement of compliance
The financial statements of EUROCONTROL Agency (the
‘Organisation’) have been prepared in accordance with
International Financial Reporting Standards (IFRS) as issued by
the International Accounting Standards Board (IASB), and as
adopted by European Union.
As there is currently no specific IFRS guidelines for non-profit
Organisations concerning the accounting treatment and the
presentation of the financial statements, the Organisation
based its accounting policies on the general principles of
IFRS, as detailed in the IASB Framework for the Preparation
and Presentation of Financial Statements.
23
FINANCIAL ACCOUNTS
23
2.6.2.2. Change in accounting policies and disclosures
The following new standards and amendments to standards
are mandatory for the first time for the financial year
beginning 1 January 2020 and have been endorsed by the
European Union:
n Amendments to References to the Conceptual
Framework in IFRS Standards (effective 1 January
2020). The revised Conceptual Framework includes a
new chapter on measurement; guidance on reporting
financial performance; improved definitions and
guidance—in particular the definition of a liability; and
clarifications in important areas, such as the roles of
stewardship, prudence and measurement uncertainty
in financial reporting.
n Amendments to the definition of material in IAS 1
and IAS 8 (effective 1 January 2020). The amendments
clarify the definition of material and make IFRSs more
consistent. The amendment clarifies that the reference
to obscuring information addresses situations in
which the effect is similar to omitting or misstating
that information. It also states that an entity assesses
materiality in the context of the financial statements
as a whole. The amendment also clarifies the meaning
of ‘primary users of general purpose financial
statements’ to whom those financial statements are
directed, by defining them as ‘existing and potential
investors, lenders and other creditors’ that must rely
on general purpose financial statements for much of
the financial information they need. The amendments
are not expected to have a significant impact on the
preparation of financial statements.
n Amendments to IFRS 9, IAS 39 and IFRS 7: Interest
Rate Benchmark Reform (effective 1 January 2020).
The amendments require qualitative and quantitative
disclosures to enable users of financial statements to
understand how an entity’s hedging relationships are
affected by the uncertainty arising from interest rate
benchmark reform. We do not expect this amendment
to have a significant impact on the preparation of
financial statements as no borrowing or lending of
money activities are performed by the EUROCONTROL
pension scheme.
The changes on the above IFRS do not have a significant
impact on the financial statements of the Organisation.
2.6.2.3.Significantaccountingjudgments,estimates and assumptions
Estimates and assumptions
The key assumptions concerning the future and other key
sources of estimation uncertainty at the financial position date,
that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next
financial year are discussed below.
Pension and Other Post Employment Benefits
The cost of defined benefit pension plans and other post-
employment benefits (sickness scheme, early termination
services allowances, and resettlement and removal allowances,
post-employment family allowances) is determined using
actuarial valuations. The actuarial valuation involves making
assumptions about discount rates, future salary increases,
mortality rates, medical cost and future pension increases.
Due to the long term nature of these plans, such estimates
are subject to significant uncertainty.
In accordance with IAS19 paragraph 130, possible future
invalidity benefits are only recognised when an event causing
invalidity occurs if, as it is the case in EUROCONTROL, the
benefits are not dependant on a vesting period. Therefore,
future invalidity benefits are not included in the Defined
Benefit Obligations.
The employee liability at 31 December 2020 is K€ 10.215.690.
Further details are given in Note 2.6.17.
Provision for Claw Back
EUROCONTROL from time to time has to initiate legal
proceedings to enforce the recovery of Route Charges
debts. It also faces periodic claims from users or insolvency
administrators which may end up in legal action. The ‘clawback’
is part of the Insolvency act of many States which provide
that amounts collected from a user prior to its declaration
of bankruptcy may be claimed back by the administrator as
representing ‘preferential payments’. At 31/12/2020 there
were two cases involving airspaces users where there are legal
proceedings further to the request of reimbursement from
the administrator of the bankruptcy (about EUR 4.5 million
for which a provision has been recorded). EUROCONTROL is
defending these cases robustly (See also note 2.6.18).
COVID-19 Crisis
The Agency had to face at various degrees of impact the
consequences of the COVID-19 crisis.
n In 2020 the route charges billed to the users of the System
amounted to EUR 3.2 billion, representing a decrease of
59% compared with the previous year. During the same
period, the Route Charges System processed a total of
only 5 million flight messages, as compared to 11 million
in 2019 (-54%). The recovery rates for the Route Charges
system: 82.3% at due date and presently 98.7% (as at
08.04.2021) for charges billed in 2020, and a long-term
recovery rate of 99.75% for the period 2015-2019.1This
measure consisted in a €1.1 billion payments deferral to
November 2020 and 2021 solidarity support to airlines.
The Pension fund, thanks to a good diversification and
stable Financial Markets had to suffer less from this crisis. The
performance of the Pension Fund remained in the positive
territory, not reaching the performance of 2019 though.
n A Measure [Measure 20/253] was decided by our Member
States in order to relieve the pressure of the Crisis on the
various Air Navigation Service Providers. This Measure
consisted in cancelling the payment for Member States’
contributions relating to the Past Benefit Obligation
(PBO) due in the last two quarters of the year 2020. This
Measure resulted in a reduction of the EUROCONTROL
Member States PBO contribution in Q4/2020 for an
amount of €20.08 mln.
24
Fair Value of Unquoted Equity Instruments
According to IAS 39-46c, unquoted equity instruments have
been valued at cost in USD and converted to EUR using the
exchange rate as at 31 December 2020. The fair value of the
unquoted equity instruments at 31 December 2020 was €
296.101 (see Note 2.6.11).
Provision for sickness allowances
The provision for sickness claims incurred but not yet
reported has been estimated based on the average of claims
reimbursed in the previous years and an extra provision has
been calculated in order to cover for low reimbursed amounts
in 2020 due to the a slower transition to the external service
provider Henner. The provision for sickness allowances
amounts to €1.499.213 at 31 December 2020 for beneficiaries
reimbursements dating 2020 or earlier that have not yet been
claimed in 2020.
Provision for litigious cases
The provision for litigious cases relates to litigious cases
with Staff which were brought to the International Labor
Organisation Administrative Tribunal (ILOAT).The provision
for litigious case amounts to €5.934.918 at 31 December 2020.
Further details are given in Note 2.6.18.
Dismantling provision
The Organisation has an obligation to restate the physical
land in Maastricht, Bretigny and Luxemburg in their original
shape. Therefore, a provision for dismantling costs has been
constituted. This provision is based on an external valuation
report of physical assets as of 27 March 2017. This valuation
also requires the Organisation to make estimates about the
discount rate and hence it is subject to uncertainty. The
provision for dismantling costs amounts to € 18.156.717 at 31
December 2020. Further information is given in Note 2.6.18.
1 CRCO 2020 Financial Statements
25
FINANCIAL ACCOUNTS
The rest of the activities of the Agency observed a clear slow
down, with less activity in general. There were also several
initiatives proposed by our Director General to help reduce
the burden on Member States and to relieve the pressure of
the Crisis on the various Air Navigation Service Providers, The
proposals included the following deductions that reduced
the amount called-up in Q3/2020 for our Member States
contributions:
n A deduction of the Unspent Budget of 2019 (€14.90mln)
n The return of INEA/CEF fundings (€ 21.38 mln) –
see also note 2.6.7
n Cost containment measures, consist in a one-off cash
savings from all the Agency Parts (€23.64mln)
Moreover, a loan of up to €1.27billion which could be
provided to participating States for their ANSPs as a loan to be
repaid via future deferred repayments and route charges. 10
Member States participated to this loan for a total amount of
€272,04mln. The loan is repayable in several instalments until
fully reimbursed by the end of March 2022. (See note 2.6.19).
2.6.2.4.Summaryofsignificantaccountingpolicies
Foreign currency translation
The financial statements are presented in euro, which is the
functional and presentation currency of the Organisation.
Transactions in foreign currencies are initially recorded
at the functional currency rate ruling at the date of the
transaction. Monetary assets and liabilities denominated in
foreign currencies are retranslated at the functional currency
rate of exchange ruling at the financial position date. All
differences are taken to profit or loss with the exception of
foreign exchange differences on Available-for-sale financial
investments which are recognised directly in equity.
Revenue recognition
Revenue is recognised to the extent that it is probable that
the economic benefits will flow to the Organisation and the
revenue can be reliably measured. Revenue is measured at
the fair value of the consideration received. The following
specific recognition criteria must also be met before revenue
is recognised:
Member States contributions
The annual financial contributions of the Member States are
based on their Gross National Product (GNP) and Air Traffic
Control costs (ATC). They are decided during the budget
approval process relative to the following financial year.
Member State contributions constitute the primary source
of funds for the Organisation. Those contributions, excluding
reimbursements of pension obligations, are recognised upon
payment and no further performance obligations exist.
Rendering of service
Revenues from the rendering of services comprise (i) the
“Special Annexes”, (ii) the revenues generated by the Central
Route Charges Office (CRCO) for providing billing and
collecting services to member or non-Member States, and
(iii) the revenues from sale of services (e.g. aeronautical charts,
ATC training and courses). A 5-step approach assessment is
applied: (1) Identification of the agreement / contract with
our counterparty (Member State, ANSP,…); (2) Identification
of the performance obligations in the agreement/contract;
(3) Agree on the price of the service to be provided; (4) for
each service rendered, we allocate the prices via an expected
cost approach to the performance obligations it relates to;
(5) Revenues are recognised by reference to the stage of
completion. Stage of completion is measured by reference
to the expenditure incurred to date as a percentage of the
total cost to be incurred. Usually, all the costs are covered by
the party having requested the service. The outcome of the
contract can therefore usually be measured reliably. Revenue
is recognised over time
Interest income
Revenue is recognised as interest accrues using the effective
interest method that is the rate that exactly discounts future
cash receipts through the expected life of the financial
instrument to the net carrying amount of the financial asset.
26
Property,plantandequipment
Property, plant and equipment is stated at cost less
accumulated depreciation and accumulated impairment in
value. Such cost includes the present value of the expected
cost of dismantling some buildings, the cost of replacing part
of the plant and equipment when that cost is incurred, if the
recognition criteria are met.
The threshold from which an asset is considered as Property,
Plant & Equipment (PP&E) is set at € 2.000 per unit.
Depreciation is calculated on a straight line basis over the
useful life of the assets.
An item of property, plant and equipment is derecognised
upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising
on de-recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount
of the asset) is included in the income statement in the year
the asset is derecognised.
The asset’s residual values, useful lives and methods of
depreciation are reviewed, and adjusted if appropriate, at
each financial year end.
Useful Lives
The useful lives of the assets are estimated as follows:
Constructions 50 years
Fitting out 20 years
Technical installations 20 years
Electrical installations 15 years
ATC Equipment 15 years
Equipment From 3 to 12 years
Vehicles 5 years
IT equipment under finance leases From 3 to 5 years
Borrowing costs
Borrowing costs are recognised as an expense when incurred.
Intangible assets
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible
assets are carried at cost less any accumulated amortisation
and any accumulated impairment losses.
Intangible assets are amortised on a straight line basis
over the useful economic life and assessed for impairment
whenever there is an indication that the intangible asset may
be impaired. The amortisation period and the amortisation
method for intangible assets is reviewed at least at each
financial year end.
An item of intangible assets is derecognised upon disposal or
when no future economic benefits are expected from its use
or disposal. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in
the income statement in the year the asset is derecognised.
Research costs are expensed as incurred. Development costs
are also expensed since the Organisation cannot demonstrate
that the related asset will generate future economic benefits.
Useful Lives
The useful lives of the assets are estimated as follows:
Computer Software From 8 to 12 years
Impairmentofnon-financialassets
TThe Organisation assesses at each reporting date whether
there is an indication that an asset may be impaired. If any
such indication exists, the Organisation makes an estimate of
the asset’s recoverable amount. An asset’s recoverable amount
is the higher of an asset’s or cash-generating unit’s fair value
less costs to sell and its value in use and is determined for an
individual asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets or
group of assets. Where the carrying amount of an asset exceeds
its recoverable amount, the asset is considered impaired and
is written down to its recoverable amount. In assessing value
in use, the estimated future cash flows are discounted to
their present value that reflects current market assessments
of the time value of money and the risks specific to the asset.
Impairment losses are recognised in the income statement.
An assessment is made at each reporting date as to whether
there is any indication that previously recognised impairment
losses may no longer exist or may have decreased. If such
indication exists, the Organisation makes an estimate of
recoverable amount. A previously recognised impairment loss
is reversed only if there has been a change in the estimates
used to determine the asset’s recoverable amount since the last
impairment loss was recognised. If that is the case the carrying
amount of the asset is increased to its recoverable amount.
That increased amount cannot exceed the carrying amount
that would have been determined, net of depreciation, had no
impairment loss been recognised for the asset in prior years.
Such reversal is recognised in the income statement.
Leases
The Organisation performed an analysis of the contracts that
could be considered as potential Leasing according to IFRS 16.
The goal is to assess for each reporting date different elements
to determine if a given contract fulfils the criteria for a lease
under IFRS 16. The main aspects consist in considering the
following elements:
n value of the asset and the duration of the contract,
namely small-value and short-term leases. In this case,
Lease payments are accounted as an expense.
n another key element is the evaluation of the right to
substitute the asset. An assessment is then performed
assess if a contract contains a lease or does the supplier
has the substantive right to substitute an asset?
n The determination of the lease term is an important factor
for the initial measurement of the lease liability. In most
cases the lease term is clear; however, the lease term can
include a high level of judgement. When the lease contains
an option to extend the lease or to terminate the lease
early, you must assess if you are reasonably certain to e
xercise the option or not.
n The organisation may also have to consider the
discount rate that is applicable to the asset but there, an
important judgement needs to be made by management.
This analysis will be performed for each reporting date
in order to clarify the choices made by the Organisation
management to recognise, or not, an asset as a Leasing
under IFRS 16.
Investmentsandotherfinancialassets
The Organisation determines the classification of its
financial assets at initial recognition and, where allowed and
appropriate, re-evaluates this designation at each financial
year end.
All regular way purchases and sales of financial assets are
recognised on the trade date, which is the date that the
Organisation commits to purchase the asset. Regular way
purchases or sales are purchases or sales of financial assets
that require delivery of assets within the period generally
established by regulation or convention in the marketplace.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss includes
financial assets held for trading and financial assets designated
upon initial recognition as at fair value through profit or loss.
They are classified as held for trading if they are acquired
for the purpose of selling in the near term. Gain or losses on
investments held for trading are recognised in profit or loss.
Loans and receivables
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an
active market. After initial measurement loans and receivables
are subsequently carried at amortised cost using the effective
interest method less any allowance for impairment. Amortised
cost is calculated taking into account any discount or
premium on acquisition and includes fees that are an integral
part of the effective interest rate and transaction costs. Gains
and losses are recognised in the income statement when the
27
FINANCIAL ACCOUNTS
28
loans and receivables are derecognised or impaired, as well as
through the amortisation process.
Fair value
The fair value of investments that are actively traded in
organised financial markets is determined by reference
to quoted market bid prices at the close of business on
the financial position date. For investments where there is
no active market, fair value is determined using valuation
techniques. Such techniques include discounted cash flow
analysis or other valuation models.
Impairmentoffinancialassets
The Organisation assesses at each financial position date
whether a financial asset or group of financial assets is
impaired.
Assets carried at amortised cost
If there is objective evidence that an impairment loss on
loans and receivables carried at amortised cost has been
incurred, the amount of the loss is measured as the difference
between the asset’s carrying amount and the present value of
estimated future cash flows (excluding future expected credit
losses that have not been incurred) discounted at the financial
asset’s original effective interest rate (i.e. the effective interest
rate computed at initial recognition). The carrying amount of
the asset is reduced through use of an allowance account.
The amount of the loss shall be recognised in profit or loss.
If, in a subsequent period, the amount of the impairment
loss decreases and the decrease can be related objectively
to an event occurring after the impairment was recognised,
the previously recognised impairment loss is reversed. Any
subsequent reversal of an impairment loss is recognised in
profit or loss, to the extent that the carrying value of the asset
does not exceed its amortised cost at the reversal date.
Financial assets at fair value through othercomprehensive income
These investments and other financial assets are classified
depending on:
(a) The entity’s model for managing the financial assets;
(b) The contractual cashflow characteristics of the
financial assets.
The Organisation reclassifies that investments when and only
when its strategy for managing those assets changes.
Cash and short term deposits
Cash and short term deposits in the financial position
comprise cash at banks and on hand and short term deposits
with an original maturity of one year or less.
For the purpose of the cash flow statement, cash and cash
equivalents consist of cash and short term deposits of less
than 3 months, net of outstanding bank overdrafts
Financial liabilities
All loans and borrowings are initially recognised at the fair
value of the consideration received less directly attributable
transaction costs.
After initial recognition, interest bearing loans and borrowings
are subsequently measured at amortised cost using the
effective interest method.
Gains and losses are recognised in the income statement
when the liabilities are derecognised as well as through the
amortisation process.
29
Derecognitionoffinancialassetsandliabilities
Financial assets
A financial asset (or, where applicable a part of a financial asset
or part of a group of similar financial assets) is derecognised
when:
n the rights to receive cash flows from the asset have
expired;
n the Organisation has transferred its rights to receive
cash flows from the asset and either (a) has transferred
substantially all the risks and rewards of the asset, or
(b) has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred
control of the asset.
Financial liabilities
A financial liability is derecognised when the obligation under
the liability is discharged or cancelled or expires.
Where an existing financial liability is replaced by another
from the same lender on substantially different terms, or the
terms of an existing liability are substantially modified, such an
exchange or modification is treated as a derecognition of the
original liability and the recognition of a new liability, and the
difference in the respective carrying amounts is recognised in
the income statement.
Provisions
Provisions are recognised when the Organisation has a present
obligation (legal or constructive) as a result of a past event,
when it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and when a reliable estimate can be made of the amount
of the obligation. The expense relating to any provision is
presented in the income statement net of any reimbursement.
If the effect of the time value of money is material, provisions
are discounted using a current pre tax rate that reflects,
where appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.
Pensionandotherpost-employmentbenefits
The Organisation operates a Defined Benefit pension plan that
requires contributions to be paid to a separately administrated
bank account within the Organisation. However, as this bank
account is not legally separated from the Agency, the plan
is considered as unfunded. In addition, the Organisation
provides certain post-employment healthcare benefits and
resettlement and removal allowances. The cost of providing
benefits under the defined benefit plan is determined using
the projected unit credit method. Actuarial gains and losses
are recognised directly in the other comprehensive income
statement when incurred.
The past service cost is recognised as an expense on a straight
line basis over the average period until the benefits become
vested. If the benefits are already vested immediately following
the introduction of, or changes to, a pension plan, past service
cost is recognised immediately.
The defined benefit liability comprises the present value of
the defined benefit obligation using a discount rate based
on high quality corporate bonds less past service cost not yet
recognised.
2.6.2.5. Future changes in accounting policies
Standards issued but not yet effective
Standards and interpretations issued but not yet effective up
to the date of issuance of the financial statements are listed
below. The System intends to adopt these standards and
interpretations when they become effective. These standards
will have no material impact on the financials.
The following new and amended IFRS Interpretations will be
effective for accounting years beginning on or after as of 1
January 2021 or later:
The following new standards and amendments have been
issued, but are not mandatory for the first time for the financial
year beginning 1 January 2020 and have not been endorsed
by the European Union:
FINANCIAL ACCOUNTS
30
n Amendments to IAS 1 ‘Presentation of Financial
Statements: Classification of Liabilities as current or
non-current’ (effective 1 January 2022), affect only the
presentation of liabilities in the statement of financial
position — not the amount or timing of recognition of
any asset, liability income or expenses, or the information
that entities disclose about those items. The IASB has
issued an exposure draft to defer the effective date to 1
January 2023. They:
n Clarify that the classification of liabilities as current
or non-current should be based on rights that are
in existence at the end of the reporting period and
align the wording in all affected paragraphs to refer
to the “right” to defer settlement by at least twelve
months and make explicit that only rights in place
“at the end of the reporting period” should affect the
classification of a liability;
2020
€000
2019
€000
Member States contributions 537.782 561,812
Revenue from Special Annexes 12.751 21.399
Revenue from running the Route Charge System 20.399 20.806
Revenue from Comprehensive Agreement States 8.337 7.820
Revenue from sale of services 6.154 8.461
Rendering of services 47.641 58.486
Total Revenue 585.423 620.298
n Clarify that classification is unaffected by
expectations about whether an entity will exercise
its right to defer settlement of a liability; and make
clear that settlement refers to the transfer to the
counterparty of cash, equity instruments, other
assets or services.
n Amendment to IFRS 16 Leases Covid 19-Related Rent
Concessions (effective 01/06/2020, with early application
permitted). If certain conditions are met, the Amendment
would permit lessees, as a practical expedient, not
to assess whether particular covid-19-related rent
concessions are lease modifications. Instead, lessees that
apply the practical expedient would account for those
rent concessions as if they were not lease modifications.
2.6.3. Revenue
The revenue breaks down into the following categories:
Revenue from Comprehensive Agreement States are from Morocco and Israël
31
2.6.4. Other income
2.6.5.Employeebenefitexpenses
FINANCIAL ACCOUNTS
2020
€000
2019
€000
Sale of goods 87 1
Accrued revenues from the Route Charge System 4.533
4.619 1
2020
€000
2019
€000
Salaries 237.164 234.171
Other employment benefits (note 2.6.17) 351.895 337.403
589.059 571.575
2020€000
2019€000
External assistance 87.029 92.394
Data processing 36.672 35.688
Accommodation 16.387 22.878
Communication 7.211 10.262
Legal Claims 4.533
General administration 1.668 2.777
Non recoverable VAT 81 76
SESAR Joint Undertakings payment - -
Insurance 724 641
Other unrecoverable debts including impairment on TENT-Centralised Services
- 11
154.305 164.727
2.6.6. Other Expenses
32
2020€000
2019€000
Unrealised income on marketable securities 83.447 206.583
Gains realized on sale of marketable securities 10.315 4.818
Interest earned on deposits, current accounts,dividends 14.469 20.775
Other Income 21.383
129.614 232.176
2020€000
2019€000
Interest costs on bank loans and other 742 942
Management fees to assets managers 6.749 6.823
Loss on marketable securities 22.928 2.134
30.419 9.899
2.6.7. Finance & Other Income
2.6.8. Finance Costs
The EUROCONTROL Pension Fund assets returned 14.15% in
2019, whereas they returned 4.13% in 2020. Subsequently,
the unrealised income on marketable securities was lower in
financial year 2020 when compared with financial year 2019.
Other income of M€ 21.38 represents revenue from INEA for
EU co-funded projects completed and recognised as income
in 2020. The SCF proposal to return INEA funds was endorsed
by the PC51 in June 2019 (some M€ 15.2); this amount related
to Part I and IX and was further extended by the completion of
EU co-funded projects in Part III MUAC (some M€ 6.1) following
a decision by MCG 97 in December 2019. This other income
was reimbursed to EUROCONTROL Member States through a
reduction of the call for contributions due for Q3 2020.
33
FINANCIAL ACCOUNTSCo
nstr
uctio
nsFi
ttin
g ou
tTe
chni
cal
inst
alla
tions
Elec
trica
l in
stal
latio
nsEq
uipm
ent &
ve
hicle
sW
orks
in
prog
ress
Leas
ing
Dism
antli
ngTo
tal
Cost
or va
luat
ion
At 1
Janu
ary 2
020
81.2
0922
.058
51.4
6017
.215
111.
109
1.28
4-
8.52
429
2.86
0
Addi
tions
-24
11.
792
624
9.47
01.
766
--
13.8
93
Disp
osals
--4
8-1
.047
-734
-7.4
75-
--
-9.3
04
Reva
luat
ions
-
Tran
sfer
-11
988
842
--1
.050
--
-
At 31
Dec
embe
r 202
081
.209
22.3
7152
.293
17.9
4811
3.10
42.
000
-8.
524
297.
450
Depr
ecia
tion
and
impa
irmen
t:
At 1
Janu
ary 2
020
23.5
5816
.173
31.9
2111
.364
78.3
67-
-3.
209
164.
593
Depr
eciat
ion
char
ges f
or th
e yea
r2.
071
570
1.59
980
98.
867
--
247
14.1
62
Impa
irmen
t-
Disp
osals
--4
8-1
.047
-734
-7.1
51-
--
-8.9
80
Tran
sfer
-
At 31
Dec
embe
r 202
025
.629
16.6
9432
.474
11.4
3980
.083
--
3.45
616
9.77
5
Net b
ook v
alue
:
At 31
Dec
embe
r 202
055
.581
5.67
619
.820
6.50
933
.021
2.00
0-
5.06
812
7.67
5
The
depr
ecia
tion
expe
nses
in 2
020
amou
nt to
K€
14.4
86 a
nd c
onsi
st o
f
n
the
depr
ecia
tion
of th
e ye
ar :
K€
14.1
62n
th
e lo
ss o
n di
spos
als,
i.e. K
€ 9.
304
- K€
8.9
80 =
K€
324
2.6.9. Property,plantandequipment
34
Cons
truc
tions
Fitt
ing
out
Tech
nica
l in
stal
latio
nsEl
ectr
ical
inst
alla
tions
Equi
pmen
t &
vehi
cles
Wor
ks in
pr
ogre
ssDi
sman
tling
Tota
l
Cost
or va
luat
ion
At 1
Janu
ary 2
019
81.2
0922
.007
48.0
5316
.256
109.
824
2.07
88.
524
287.
951
Addi
tions
-60
62.
008
155
9.46
24.
930
-17
.161
Disp
osals
--1
.231
-1.4
05-1
27-9
.339
--
-12.
102
Reva
luat
ions
-
Tran
sfer
-67
62.
804
931
1.16
2-5
.724
--1
50
At 31
Dec
embe
r 201
981
.209
22.0
5851
.460
17.2
1511
1.10
91.
284
8.52
429
2.86
0
Depr
ecia
tion
and
impa
irmen
t:
At 1
Janu
ary 2
019
21.4
8616
.791
31.7
7410
.703
79.7
17-
2.96
216
3.43
3
Depr
eciat
ion
char
ges f
or th
e yea
r2.
071
612
1.55
378
87.
975
-24
713
.247
Impa
irmen
t-
Disp
osals
--1
.231
-1.4
05-1
27-9
.324
--
-12.
087
Tran
sfer
At 31
Dec
embe
r 201
923
.558
16.1
7331
.921
11.3
6478
.367
-3.
209
164.
593
Net b
ook v
alue
:
At 31
Dec
embe
r 201
957
.652
5.88
519
.538
5.85
132
.741
1.28
45.
315
128.
267
The
depr
ecia
tion
expe
nses
in 2
019
amou
nt to
K€
13.2
62 a
nd c
onsi
st o
f
n
the
depr
ecia
tion
of th
e ye
ar :
K€
13.2
47
n
the
loss
on
disp
osal
s, i.e
. K€
12.1
02 -
K€ 1
2.08
7= K
€ 15
Computer Software Computer Softwarein progress Total
Cost or valuation
At 1 January 2020 155.859 417 156.276
Additions 8.201 3.557 11.758
Disposals -17.957 - -17.957
Revaluations - - -
Transfer - - -
At 31 December 2020 146.103 3.974 150.077
Depreciation and impairment:
At 1 January 2020 139.518 - 139.518
Depreciation charges for the year 6.517 - 6.517
Impairment - - -
Disposals -17.957 - -17.957
Transfer - - -
At 31 December 2020 128.078 - 128.078
Net book value: at 31 December 2020 18.025 3.974 21.999
The depreciation expenses in 2020 amount to K€ 6.517 and consist of n the depreciation charges of the year : K€ 6.517n the loss on disposals, i.e. K€ 17.957 – 17.957 = K€ 0
Computer Software Computer Softwarein progress Total
Cost or valuation
At 1 January 2019 152.517 796 153.313
Additions 4.500 525 5.025
Disposals -2.212 - -2.212
Revaluations - - -
Transfer 1.054 -904 150
At 31 December 2019 155.859 417 156.276
Depreciation and impairment:
At 1 January 2019 135.443 - 135.443
Depreciation charges for the year 6.276 - 6.276
Impairment - - -
Disposals -2.201 - -2.201
Transfer - - -
At 31 December 2019 139.518 - 139.518
Net book value: at 31 December 2019 16.342 417 16.758
The depreciation expenses in 2019 amount to K€ 6.572 and consist of n the depreciation charges of the year : K€ 6.276n the loss on disposals, i.e. K€ 2.212 – 2.201 = K€ 11
FINANCIAL ACCOUNTS
2.6.10. Intangible assets
35
2.6.11. Fair value of unquoted instruments
The unquoted ordinary shares have been measured at cost in USD and converted to EUR using exchange rate as at 31
December 2020.
2.6.12. Receivables from Member States
2020
€000
2019
€000
Contributions from Member States 145.166 132.213
Contributions from MUAC Member States for support cost and pension tax compensation
5.736 2.903
150.902 135.116
Contributions from Member States are due within 60 days and, in the event of late payment, are subject to a penalty equal to
the 3 months term deposit interest rate as published by the European Central Bank. Contributions from Member States were
not impaired.
36
2020
€000
2019
€000
Ordinary shares – unquoted (SITA shares) 296 319
296 319
Ordinary shares - unquote (SITA shares) as at 1 January 319 302
Movement due to revaluation of USD in EUR -23 17
Ordinary shares - unquote (SITA shares) as at 31/12 296 319
37
FINANCIAL ACCOUNTS
2.6.13. Other receivables
*Others include the 10 Member States Loan for the period 2020-2022, to be reimbursed by those 10 Member States including
all legal/administrative charges and interests (See also Note 2.6.19).
As at 31 December 2020, the analysis of receivables (Member States and other) from the rendering of services that were past
due but not impaired is as follows:
Contributions from Member States +
Other receivables
2020
€000
2019
€000
Non-Curent
Advances to Central Route Charges System - 3.939
Loan 10MS 43.697 -
43.697 3.939
Curent
Remuneration paid in advance 19.226 19.231
Advances to suppliers 11.123 9.253
VAT 702 1.998
Amounts receivable in relation with special annexes 6.382 3.044
Impairment on TENT-Centralised Services - -
Administrative charges due by users 605 1.770
Advances to SITA 415 443
Advances to Central Route Charge System - 644
Others* 180.933 5.389
219.387 41.772
Past due but not impaired
Total
€000
Neither past due nor impaired
€000
< 30 days
€000
30 – 60 days
€000
60 – 90 day
€000
90 – 180 day
€000
>180 days
€000
2020 413.987 407.514 90 870 1.512 1.244 2.757
2019 180.827 177.420 207 18 1.370 1.545 268
38
2.6.14. Accrued income
2.6.15. Marketable securities
As of 31st December 2020, marketable securities (level 1) are fair valued, using quoted market prices. Marketable securities can
only be used to pay some pension obligations. Marketable securities are measured at fair value through profit or loss.
2020
€000
2019
€000
Global Stock Index Instit Euro Hedged – quoted 311.237 277.882
Global Aggregate Bonds – quoted 189.184 104.047
Eurozone Stock Index – quoted 258.057 252.560
Euro Investment Grade Bond - quoted 181.076 221.792
Euro government bonds –quoted 86.358 93.958
Euro inflation -linked bonds - quoted 126.581 133.519
Emerging markets equities - quoted 208.664 177.938
Unlisted real estate 106.160 112.197
Listed real estate - quoted 72.363 81.449
Emerging markets bonds - quoted 178.379 173.623
Infrastructure - unquoted 67.742 71.191
Total marketable securities 1.785.802 1.700.156
2020
€000
2019
€000
Accrued income 1.512 1.194
1.512 1.194
Concentration risk
Concentration risk is a term describing the level of risk in a
portfolio arising from concentration to a single counterparty,
sector, or country.
The risk arises from the observation that more concentrated
portfolios are less diverse and therefore the returns on the
underlying assets are more correlated.
In 2005 the Pension Fund Supervisory Board approved an
initial investment strategy for a period of three years. The
assets were invested in a passive management style, in two
investment funds from Vanguard Investments Europe, with a
target allocation of 80% in Euro government bonds and 20%
in Global Equities.
39
FINANCIAL ACCOUNTS
In 2008, the Pension Fund Supervisory Board approved a
revised strategy aiming at investing 45% of the Fund’s assets
in equities, 44% in bonds, 10% in real estate and 1% in cash.
This strategy was confirmed in 2018 after the completion of
an Asset-Liability Management (ALM) study. At 31st December
2020, the allocation was 44.12% equities, 39.73% bonds, 9.31%
real estate and 6.84% cash.
Counterparty risk
The risk that the other party to an agreement will default. The
counterparty can be an individual entity, an asset manager, a
bank, etc. A proper diversification is required to mitigate the
counterparty risk.
As of 31st December 2020 the bonds portfolio shows the
following credit quality:
Bonds Average Credit rating Source
Vanguard Euro Government Bond Index Fund A+Credit-quality ratings for each issue are obtained from Barclays using ratings derived from Moody’’s Investors Service, Fitch Ratings, and Standard & Poors
Vanguard Euro Investment Grade Bond Index Fund A+Credit-quality ratings for each issue are obtained from Barclays using ratings derived from Moody’’s Investors Service, Fitch Ratings, and Standard & Poors
Vanguard Global Bond Index Fund AA-Credit-quality ratings for each issue are obtained from Barclays using ratings derived from Moody’’s Investors Service, Fitch Ratings, and Standard & Poors
BlueBay EMD BB+Credit-quality ratings for each issue are derived from Moody’’s, Fitch Ratings, and Standard & Poors
UBS EMD BBB
CCredit-quality ratings based on J.P. Morgan rating methodology whereby 3 ratings are use (Moody’s, J.P. Morgan and Fitch ratings). If these differ, the rating that is used by 2 out of the 3 ratings. In case all 3 are different the middle one is used
KBC ILB AACCredit-quality is defined on security level (not issuer level) and is determined as an average of the ratings by Standard & Poors, Moody’s, Fitch and Dunn & Bradstreet.
Petercam SRI BBB Credit-quality rating is based on Standard & Poors rating scale.
BC SRI Corporate bonds BBBCredit-quality is defined on security level (not issuer level) and is determined as an average of the ratings by Standard & Poors, Moody’s, Fitch and Dunn & Bradstreet.
40
Pension Scheme
The pension scheme is a defined benefit plan.
As per article 77 of the Staff Regulations, a staff member
who has completed ten years’ service shall be entitled
to a retirement pension. If the staff member is over the
pensionable age (as mentioned in the Staff Regulations in
Article 77), he shall be entitled to such pension irrespective of
length of service under certain conditions.
The maximum retirement pension is determined by the
following two elements:
n 70% of the final basic salary carried by the last grade in
which the staff member was classified for at least one year;
n and the pension rights calculated on the basis of
the Air Traffic Flow and Control Management (ATFCM)
allowance allowed to Central Flow Management Unit
(CFMU) Operational Staff members.
Early Termination Scheme
Staff members of category B in the Operational Division of
the Maastricht Air Traffic Control Centre, in place at 29 April
1990, retire early at 55 years and receive an amount ranking
between 70% and 100% of their basic salary at time of early
retirement up to their retirement age. The difference with the
basic retirement pension scheme (see above) consists in the
Early Termination Services (ETS) allowances.
In 2010, a new Early Termination of Service (new ETS) scheme
was introduced and granted to 205 officials with an open-
ended contract aged 55 and over during the period 1 January
2.6.16. Cash and short-term deposits
Cash at banks earns interest at floating rates based on daily
bank deposit rates. Short-term deposits are made for varying
periods of between three months and one year, depending on
the immediate cash requirements of the Organisation, and earn
interest at the respective short-term deposit rates.
At 31 December 2020 and 2019, the Organisation had available
respectively K€80.000 and K€70.000 of undrawn committed
borrowing facilities in respect of which all conditions precedent
had been met. Cash and short term deposits are measured at
amortised cost.
2.6.17. Employeebenefitliability
Description of plansIn 2016, the Member States have approved an administrative
reform based on the measures approved at the EU. One of the
main features of the proposed administrative reform concerned
the pensions:
n Increase of the retirement age to 66 years which allows a
reduction of the pension contribution rate to 25.5%
(previously applied rate is 30%)
n Reduction of the annual acquired pension rights (1.8% for
new recruits instead of 1.9%)
n Early retirement possible as from 58 years for new recruits
instead of 55
n New calculation of the discount rate used in the actuarial
determination of the contribution rate.
2020
€000
2019
€000
Cash at banks and on hand 206.683 235.008
Short-term deposits - -
206.683 235.008
41
FINANCIAL ACCOUNTS
2011 to 31 December 2012. They are paid a transitional ETS
allowance expressed as a percentage (70%) of their final basic
salary. The ETS allowance is paid until the staff member reaches
a maximum of 70% in term of pension rights or, at the latest,
up to the age of 65 (in the case of contracts for an unlimited
period) or 63 (in case of contracts for an undetermined period).
As from the month following that date, the staff member on
ETS will automatically start to receive a retirement pension.
A pension contribution (10% of full basic salary) is deducted
from the ETS allowance, as pension rights continue to be
acquired during the period between early termination of
service and the retirement date. There is no provision for
payment of the expatriation or foreign residence allowance
under the ETS scheme. The ETS allowance is subject to
the internal taxation scheme applied to EUROCONTROL
remuneration. The ETS allowance is subject to the cost-of-
living weighting for the country of residence of the recipient,
as provided for in the Pension Scheme.
Article 41
As per Article 41 of the Staff regulations, an official with non-
active status is one who has become supernumerary by
reason of reduction in the number of posts in the Agency. In
connection with the reorganisation of the NMD’s operational
functions, the Permanent Commission decided to abolish a
maximum of 34 NMD posts by 31 December 2015.
Article 41 only applied to:
n Persons with a permanent contract (recruited < 1.5.02),
n Persons performing the types of functions related to
the published posts to be abolished,
n Persons less than 63 years of age or who have not yet
acquired full pension rights (70%).
The Director General shall draw up a list of the officials to
be affected by such measures, after consulting the Joint
Committee, taking into account the officials’ ability, efficiency,
conduct in the service, family circumstances and seniority.
Officials whose names appear on this list shall be declared to
have non-active status by decision of the Director General.
While possessing this status, an official shall cease to
perform his duties and to enjoy his rights to remuneration or
advancement to a higher step, but shall continue, for a period
not exceeding five years, to accumulate rights to retirement
pension based on the salary carried by his grade and step.
The entitlement to the allowance is spread as follows:
n 100% of basic salary for 3 months,
n 85% of basic salary for the following 3 months,
n 70% of basic salary for the next 5 years,
n 60% of basic salary thereafter.
The allowance shall cease from the day on which the official
reaches the age of 63 years. However, above that age and up
to the age of 65 years, the official shall continue to receive the
allowance until he reaches the maximum retirement pension.
During the year 2015, 22 employees have left EUROCONTROL
on the grounds of article 41. These employees will receive an
allowance until their retirement.
Pensionsandearlyterminationsfinancedthroughthe Budget
Member States are responsible for the financing, through the
Budget of the Agency, of
n existing pensions as of 1st January 2005 and
n the ancillary expenditures (family allowances and
employer’s contributions to the Sickness Fund)
n the financing of national tax compensation of pensions
paid to both existing pensioners, as at 1st January 2005,
and new pensioners, as from 1st January 2005
n the Early Termination Services (ETS) allowances
n Article 41.
42
PensionsfinancedthroughthePensionFund
The Organisation operates a defined benefit pension plan, requiring contributions to be made, for staff members that were
still active in the Agency at 1 January 2005, to an administered fund that is not legally separated from EUROCONTROL Agency.
Pension rights accrued before 1st January 2005 (PBO-Projected Benefits Obligations) are financed by Member States through
special contributions into the Pension Fund, in annual instalments over 20 years. The amount of these instalments will be
reviewed periodically, in the light of the conclusions of actuarial studies.
Pension rights accrued after 1st January 2005 (Future Service Benefits Obligations) are financed by the employer and by the Staff
members. The pension rights imply contributions from employer and staff in the following proportion: 2/3 for the employer and
1/3 for the staff.
Some operational staff in the Maastricht Upper Area Control Centre (MUAC) are entitled to specific pension benefits, which are
based on ATC allowances granted during their career. These benefits are financed with the contributions of the staff and the four
States involved in the operations of MUAC.
In accordance with IAS19 paragraph 130, possible future invalidity benefits are only recognised when an event causing invalidity
occurs if, as it is the case in EUROCONTROL, the benefits are not dependent on a vesting period. Therefore, future invalidity
benefits are not included in the Defined Benefit Obligations as shown above.
Composition of the Defined Benefit Obligationfinanced through the pension fund
2020 €000
2019 €000
Pension rights acquired before 2005 2.004.152 1.853.149
Pension rights acquired as from 2005 3.205.128 2.655.463
ATC allowances 64.653 52.702
DBO financed through the pension fund 5.273.933 4.561.315
DBO for possible future invalidity - -
DBO as disclosed in the Pension Fund accounts 5.273.933 4.561.315
Composition of the Defined Benefit Obligation
financed through the budget2020 €000
2019 €000
Existing pensions as at 1/1/2005 611.585 637.170
Compensation of national taxes 3.192.246 2.842.604
Family allowances 356.085 307.243
Curtailment (ETS & Article 41) 8.916 14.645
4.168.833 3.801.661
43
FINANCIAL ACCOUNTS
Removal & resettlement scheme
The Organisation has also agreed to provide certain additional post-employment benefits to employees. In accordance with
rule n°8, article 2 and 5 of the Staff regulations, staff members are entitled, in certain conditions, to resettlement and removal
allowances on termination of service or on death.
Resettlement allowances equal to two months’ basic salary (at the date of termination of service) for a staff member provided
that he has completed four years of service and does not receive similar allowance in his new employment. If the staff member
has been engaged for a limited period, the resettlement allowance has to be adjusted in respect of the period of service.
If a husband and his wife are both entitled to the resettlement allowances, this is payable only to the person whose basic salary
is the higher. Furthermore, the resettlement is to be paid against evidence that the staff member and its family have resettled
within three years of the date of termination of service and at a place situated not less than 70 km from the place where the staff
member was employed.
Sickness scheme
In pursuance of Article 72 of the Staff Regulations, a retired staff member and under certain specific circumstances his spouse and
his children and other dependants, are insured against sickness expenditure incurred. The Sickness Insurance Scheme guarantees
the reimbursement of expenses incurred as a result of illness or confinement and the payment of an allowance towards funeral
expenses.
The following tables summarise the components of net benefit expense recognised in the income statement and other
comprehensive income, the funded status and amounts recognised in the financial position for the respective plans. Current service
cost, interest costs and the net actuarial gain or loss on defined benefit obligations are shown under employee benefit expense.
Net benefit expense (recognised in employee benefit expense) in 2020
PE plan Budget
€000
PF pension plan
€000
New ETS
€000
Removal &Resettlement
€000
Sicknessscheme
€000
Total
€000
Interest cost 32,860 49.202 - 214 7.159 89.435
Current service cost 86.907 152.547 - 720 22.286 262.460
Past service cost - - - - - -
Net expense (gain) recognised in income Statement 119.767 201.749 - 934 29.445 351.895
Net benefit expense (recognised in other comprehensive income) in 2020
PE plan Budget
€000
PF pension plan
€000
New ETS
€000
Removal &Resettlement
€000
Sicknessscheme
€000
Total
€000
Actuarial loss (gain) on DBO 386.182 566.596 -70 2.547 47.394 1.002.648
Actuarial loss (gain) on transfer from other schemes
- 3.425 3.425
TOTAL 386.182 570.021 -70 2.547 47.394 1.006.073
44
Defined Benefit Obligation Year PE plan Budget
€000
PF pension plan
€000
New ETS
€000
Removal & Resettlement
€000
Sickness scheme
€000
Total
€000
2015 2.361.523 2.400.075 31.029 26.597 493.712 5.312.936
2016 2.768.108 2.953.811 21.687 28.365 606.666 6.378.637
2017 2.913.286 3.261.371 14.543 29.574 567.089 6.785.863
2018 3.061.740 3.597.485 8.855 28.807 515.540 7.212.428
2019 3.796.938 4.561.316 4.723 33.380 631.285 9.027.641
2020 4.202.968 5.273.934 2.021 36.295 700.472 10.215.690
Net benefit expense (recognised in employee benefit expense) in 2019
PE plan Budget
€000
PF pension plan
€000
New ETS
€000
Removal &Resettlement
€000
Sicknessscheme
€000
Total
€000
Interest cost 52.595 70.129 - 426 10.352 133.502
Current service cost 66.893 118.695 - 457 17.856 203.901
Past service cost - - - - - -
Net expense (gain) recognised in income Statement 119.487 188.825 - 883 28.208 377.403
Net benefit expense (recognised in other comprehensive income) in 2019
PE plan Budget
€000
PF pension plan
€000
New ETS
€000
Removal &Resettlement
€000
Sicknessscheme
€000
Total
€000
Actuarial loss (gain) on DBO 712.375 822.998 -57 4.393 94.654 1.634.363
Actuarial loss (gain) on transfer from other schemes
- 3.229 3.229
TOTAL 712.375 826.227 -57 4.393 94.654 1.637.592
45
FINANCIAL ACCOUNTS
Change in present value of the defined benefit obligation are as follows :
2020PE plan Budget
€000
PF pension plan€000
New ETS
€000
Removal &Resettlement
€000
Sicknessscheme
€000
Total
€000
Present value of obligation at 01.01.2020 3.796.938 4.561.316 4.723 33.380 631.285 9.027.641
Current service cost 86.907 152.547 - 720 22.286 262.460
EE Contributions 2.136 2.136
Interest cost on benefit obligation 32.860 49.202 - 214 7.159 89.435
Past service cost - - - - - -
Actual distributions -99.919 -60.177 -2.631 -566 -9.789 -173.081
Actual severance grants paid -
External transfers 1.026 1.026
Actuarial (gain)/loss on external transfers 3.425 3.425
Actuarial (gain)/loss on DBO 386.182 566.596 -70 2.547 47.394 1.002.648
Present value of obligation at 31.12.2020 4.202.968 5.273.934 2.021 36.295 700.472 10.215.690
Change in present value of the defined benefit obligations are as follows:
2019PE plan Budget
€000
PF pension plan€000
New ETS
€000
Removal &Resettlement
€000
Sicknessscheme
€000
Total
€000
Present value of obligation at 01.01.2019 3.061.740 3.597.485 8.855 28.807 515.540 7.212.428
Current service cost 66.893 118.695 - 457 17.856 203.901
EE Contributions 2.036 2.036
Interest cost on benefit obligation 52.595 70.128 - 426 10.352 133.502
Past service cost - - - - - -
Actual distributions -96.664 -52.797 -4.075 -704 -9.152 -163.393
Actual severance grants paid -
External transfers 1.576 1.576
Actuarial (gain)/loss on external transfers 3.229 3.229
Actuarial (gain)/loss on DBO 712.375 822.998 -57 4.393 94.654 1.634.363
Present value of obligation at 31.12.2019 3.796.938 4.561.316 4.723 33.380 631.285 9.027.641
46
2020
%
2019
%
2018
%
2017
%
2016
%
Inflation rate: 1.70 1.70 1.80 1.80 1.80
Discount rate for PE Budget Plan 0.15 0.5 1.35 1.00 1.00
Discount rate for pension obligation 0.50 1.05 1.90 1.80 1.80
Discount rate for removal and resettlement obligation
0.25 0.65 1.50 1.40 1.40
Discount rate for the ETS obligation -0.35 -0.15 0.05 0.00 0.00
Discount rate for Article 41 obligation -0.25 0.00 0.30 0.15 0.05
Discount rate for sickness obligation 0.50 1.10 1.95 1.80 1.80
Cost of living adjustmentDepending onindividual
Depending onindividual
Depending onindividual
3.63 2.52
Heathcare costs increase rate 3.30 3.30 3.40 3.60 3.80
Future salary increase Rate of salary increases due to grade or step changes on top of inflation
Rate of salary increases due to grade or step changes on top of inflation
Rate of salary increases due to grade or step changes on top of inflation
Rate of salary increases due to grade or step changes on top of inflation
Rate of salary increases due to grade or step changes on top of inflation
Mortality table Mortality table for International Organisations
Mortality table for International Organisations
Mortality table for International Organisations
Mortality table for International Organisations
Mortality table for International Organisations
The evolution of the discount rates depends on the market situation and is hence very volatile. In the actuarial study at 31 December
2020, the rate used for discounting the liabilities of the Pension Fund is based on their duration of 22.85 years and reflects the rate for
high quality corporate EUR bonds of this duration. As at 31 December 2020, this rate amounted to 0.50%.
The principal assumptions used in determining pension and sickness and other post-employment benefit obligations
for the Organisation’s plans are shown below:
Change of the mortality tables
To note that there is no change in the mortality assumptions compared to last year as the same mortality table (International Civil
Servant Life Table ICSLT-2018 published by the OECD in early 2020) was used at 31.12.2020. The Life Table has been applied in a
static approach. For transparency purposes, would the ICSLT-2018 be used in a prospective manner, it would result in an additional
increase of the DBO of M€ +447.5, which is considered the maximum exposure to longevity risk.
It should be also noted that the prospective use of mortality table would result in an additional increase of the DBO regarding the
Agency budget of M€ +36.8.
47
FINANCIAL ACCOUNTS
Experience adjustments and the effects of changes in actuarial assumptions result in actuarial gain and losses that can
be categorised as follows:
2020PE plan Budget
€000
PF pension plan€000
New ETS
€000
Removal &Resettlement
€000
Sicknessscheme
€000
Total
€000
Actuarial (gain) loss due to experience -58.778 -28.726 -79 527 -47.539 -134.595
Actuarial (gain) loss due to changes in demographic assumptions
-424 -368 - -1 -94.943 -95.735
Actuarial (gain) loss due to changes in financial assumptions
736.393 595.690 14 2.021 10 1.334.127
TOTAL Actuarial (gain) loss 677.191 566.596 -65 2.547 -142.472 1.103.796
2020Detailed of PE plan budget
Budget Old ETS Art 41 Compensation National Tax
ancillary benefits
Total
Actuarial (gain) loss due to experience -11.509 -442 -497 -42.428 -3.902 -58.778
Actuarial (gain) loss due to changes in demographic assumptions
- - - -388 -36 -424
Actuarial (gain) loss due to changes in financial assumptions
23.450 8 18 652.881 60.037 736.393
TOTAL Actuarial (gain) loss 11.941 -435 -479 610.065 56.100 677.191
Sensitivity analyses are provided for the year 2020 and for the main assumptions as follows:
2020PE plan Budget
€000
PF pensionplan€000
New ETS
€000
Removal &Resettlement
€000
Sicknessscheme
€000
DBO as at 31/12/2020 4.202.969 5.273.933 not available not available 700.472
DBO as at 31/12/2020 Discount Rate +0.5% 3.992.121 4.718.639 not available not available 621.943
DBO as at 31/12/2020 Discount Rate -0.5% 4.433.619 5.922.860 not available not available 797.449
DBO as at 31/12/2020 normal Retirement Age +1 Year
4.203.333 5.237.433 not available not available not available
DBO as at 31/12/2020 International Civil Servants Life Table -1 Year
4.451.024 5.490.910 not available not available not available
DBO as at 31/12/2020 Medical Inflation -1% 527.223
DBO as at 31/12/2020 Medical Inflation +1% 941.177
48
2019Detailed of PE plan budget
Budget Old ETS Art 41 Compensation National Tax
ancillary benefits
Total
DBO as at 31/12/2019 637.170 6.226 3.696 2.842.604 307.243 3.796.938
DBO as at 31/12/2019 Discount Rate +0.5% 605.099 5.912 3.510 2.699.527 291.779 3.605.828
DBO as at 31/12/2019 Discount Rate -0.5% 672.246 6.568 3.900 2.999.091 324.157 4.005.963
DBO as at 31/12/2019 normal Retirement Age +1 Year
637.223 6.226 3.697 2.842.841 307.269 3.797.256
DBO as at 31/12/2019 International Civil Servants Life Table -1 Year
673.184 6.577 3.905 3.003.277 324.610 4.011.553
DBO as at 31/12/2019 Medical Inflation -1%
DBO as at 31/12/2019 Medical Inflation +1%
YAER BUDGET PBO FS ATC
2021 37.566.238 38.462.735 24.929.292 229.179
2022 37.120.373 41.893.824 30.504.118 303.720
2023 36.465.800 44.526.009 34.960.623 367.280
2024 35.707.613 47.384.443 39.833.758 471.169
2025 34.811.039 50.210.676 44.796.468 572.308
2026 33.828.006 53.021.976 50.730.975 656.158
2027 32.695.381 55.978.889 57.052.465 747.636
2028 31.510.664 58.508.884 63.148.015 850.518
2029 30.223.276 60.893.087 69.902.335 955.401
2030 28.837.288 62.880.538 76.968.319 1.058.753
Effectonthecashflowsoftheemployeebenefitliabilities
The expected benefit payments for the next 10 years for the different sub-accounts have been estimated as follows:
The duration of the BUDGET sub-account is 10,3 years and the duration of the other sub-accounts is 22,85 years.
49
FINANCIAL ACCOUNTS
2.6.18 Provisions
Legal claims€000
Dismantling€000
Total€000
At 1 January 2020 5.602 17.801 23.403
Arising during the year 1.277 356 1.633
Utilised - - -
Unused amounts reversed - - -
Discount rate adjustment - - -
At 31 December 2020 6.879 18.157 25.036
Current 2020 - - -
Non-current 2020 6.879 18.157 25.036
Legal claims€000
Dismantling€000
Total€000
At 1 January 2019 1.000 17.452 18.451
Arising during the year 4.602 349 4.951
Utilised - - -
Unused amounts reversed - - -
Discount rate adjustment - - -
At 31 December 2019 5.602 17.801 23.403
Current 2019 - - -
Non-current 2019 5.602 17.801 23.403
Dismantling provision
The Organisation has an obligation to restate the physical land
in Maastricht, Brétigny and Luxembourg in their original shape.
A new building and two new traffic towers were built on
the Maastricht site in 2016. They have been taken into
consideration during the dismantling provision calculation
which has been performed in early 2017 by an expert office
in order to ensure the completeness and accuracy of the
inventoried obligation.
Legal Claims provision
As at 31 December 2020, the legal claims provision included
some litigious cases with Staff brought to the International
Labour Organisation Administrative Tribunal (ILOAT). A
provision with regards to a new Clawback case has been
added following a new legal claim.
50
2.6.19. Financial liabilities
Effective
Interest rate %
Maturity 2020
€000
2019
€000
Bank overdraft - -
Current Obligations under finance lease (Note 2.6.23) - -
Current portion of non-current financial liabilities (initial amount) 192.289 37.250
K€ 30,000 bank loan Euribor 1mo + 68bps 2020 - 3.750
K€ 20,000 bank loan Euribor 1mo + 75bps 2020 - 2.500
K€ 70,000 bank loan Euribor + 0.58 2022 8.750 8.750
K€ 10,000 bank loan Euribor + 0.349 2025 1.250 1.250
K€ 10,000 bank loan Euribor + 0.359 2025 1.250 1.250
K€ 10,000 bank loan Euribor + 0.371 2025 1.250 1.250
K€ 40,000 bank loan Euribor + 0.4 2025 5.000 5.000
K€ 272,037 bank loan 1.05 2022 174.789 13.500
Total current financial liabilities 192.289 37.250
Effective
Interest rate %
Maturity 2020
€000
2019
€000
Non-current obligations under finance lease - -
Interest-bearing loans (initial amount) 147.447 61.250
K€ 30.000 bank loan Euribor 1mo + 68bps 2020 - -
K€ 20.000 bank loan Euribor 1mo + 75bps 2020 - -
K€ 70,000 bank loan Euribor + 0.58 2022 8.750 17.500
K€ 10,000 bank loan Euribor + 0.349 2025 5.000 6.250
K€ 10,000 bank loan Euribor + 0.359 2025 5.000 6.250
K€ 10,000 bank loan Euribor + 0.371 2025 5.000 6.250
K€ 40,000 bank loan Euribor + 0.4 2025 20.000 25.000
K€ 272,037 bank loan 1.05 2022 43.697 -
K€ 60,000 bank loan IRSwap curve + 0.4 2027 60.000 -
Total non-current financial liabilities 147.447 61.250
51
FINANCIAL ACCOUNTS
2019 Total
€000Within 1 year
€0002-5 years
€000More 2-5 years
€000
Interest-bearing loans 98.500 37.250 61.250 -
98.500 37.250 61.250 -
2020 Total
€000Within 1 year
€0002-5 years
€000More 2-5 years
€000
Interest-bearing loans 339.736 192.289 87.447 60.000
339.736 192.289 87.447 60.000
Term and loan repayment schedule (excluding finance lease and bank overdraft)
On 13 April 2020, the Permanent Commission approved the
amendment of the maximum amount the DG may borrow
to finance the COVID-19 Financial Relief Package in order to
provide optional financial liquidity to States participating in
the route charges system (and their ANSPs) and authorised
the DG to seek an additional loan facility for a maximum
amount of €1,270 million.
This measure was approved due to the significant drop
in traffic as a result of COVID-19 and to limit the cash flow
shortage from deferred payments of route charges for the
period March to July (in line with the essential requirement
to prevent the collapse of the route charges system), by
permitting the Agency via a credit facility to help cover the
minimum operating costs required by States and their ANSPs
to maintain pan-European safety critical infrastructure and
continue to provide safe services during the period when
airlines are unable to pay.
The reimbursement of the loan granted to EUROCONTROL
by the lenders is facilitated through the route charges
collected by EUROCONTROL on behalf of the States opting
in. This mechanism is reflected in a “Letter of Agreement
and Instruction” which is a requirement to receive financial
support through EUROCONTROL. Each State’s obligation
is limited to the loan amount received individually by that
State, and is primarily financed through the route charges
EUROCONTROL collects on that State’s behalf.
The total amount borrowed by EUROCONTROL under this
loan facility was k€ 272,037 of which k€ 174.789 and k€43,697
will be reimbursed in full by the 10 participating Member
States respectively in 2021 and 2022. See also note 2.6.13.
52
10 MS Bank Loan - 272.036.600,99 EUR at 1,05% maturing at 31/03/2022
Loanproceeds
Bank feesborrowed on top
Totalborowed
Other Legal and Bank fees deducted from loan
Distributionto States
Loanrepayment
30-06-20 57.624.659,42 948.807,28 58.573.466,70 2.987.128,10 55.586.338,60
31-07-20 67.916.677,98 67.916.677,98 67.916.677,98
31-08-20 69.996.075,06 69.996.075,06 69.996.075,06
30-09-20 75.550.381,26 75.550.381,26 75.550.381,26
31-12-20 53.550.512,01
31-03-21 43.697.217,80
30-06-21 43.697.217,80
30-09-21 43.697.217,80
31-12-21 43.697.217,80
31-03-22 43.697.217,80
TOTAL 271.087.793,71 948.807,28 272.036.600,99 2.987.128,10 269.049.472,88 272.036.600,99
2.6.20. Trade and other payables
Between 2016 and 2019, EUROCONTROL has received CEF Funds from the Innovation and Network Executive Agency (INEA) of
the European Commission. Based upon the agreement of the Provisional Council (PC), when endorsing the Standing Committee
of Finance (SCF) report at its meeting of 13/06/2019, an amount of € 15.271 million has been returned to the Member States and
6.113 million from Part III (MUAC). As per Q3 call-up for 2020 Contributions the corresponding reduction of € 21.386 million has
been deducted from the contributions called-up for Q3 2020. An amount of k€ 15.414 remains as advance payments in Special
annexes – European Union and others, those will be reimbursed based on the progress made on the remaining projects. Trade
and other payables are measured at amortised cost.
2020
€0002019 €000
Payables to suppliers and trade creditors 26.230 33.158
Employee related liabilities 24.205 21.177
Special annexes – European Union and others 32.864 4.707
Special annexes - CEF funding 15.414 36.163
Amounts due to States in the context of Bilateral Agreements for Route and Terminal Charges 3.835 14.497
Others -1.025 2.223
101.523 111.924
53
The costs made on INEA projects and carried out in the Agency’s work programme are shown below.
CEF funding
2.6.21. Deferred income and accrued charges
Deferred income relates to contributions from Member States which are called up during the preceding year to which they relate.
Contributions related to N+1 and received before year end are deferred.
2.6.22. Commitments and contingencies
The Organisation can enter into commitments for the current and future budgetary years, in accordance with the terms
established below. The commitments authorised by the Organisation for the current budgetary year shall not exceed the
approved appropriations.
For future budgetary years, the commitments authorised by the Organisation shall represent the obligations it has entered into,
resulting from projects and activities, whose initiation is authorised under the current budget, but which cannot be completed
in the current year.
The SESAR Joint Undertaking (SJU) is an initiative of the European Union established by Council Regulation (EC) n°219/2007.
EUROCONTROL contributed to the first phase (2008-2016) with an amount of 568M€.
2020 €000
2019 €000
Staff cost 1.386 7.359
Mission cost 20 89
External assistance 1.085 8.797
2.491 16.244
2020 €000
2019 €000
Accrued charge -15.071 313
Deferred income 145.596 153.673
130.525 153.986
Future year commitments 2020 €000
2019 €000
Future year commitments: open purchase orders 295.926 274.059
FINANCIAL ACCOUNTS
54
A new Membership Agreement has been signed between the SJU and EUROCONTROL under the aegis of ART. 9.2 of Council
Regulation (EC) 219/2007 of February 2007 modified by Council Regulation 1361/2008 of 16 December 2008 and COUNCIL
REGULATION (EU) N°721/2014 of 16 June 2014. This second program, called SESAR2020 will amount to some 500 MEUROs
contribution from EUROCONTROL (475 M€ in-kind; 25 M€ cash), and is running from 2016 until 2023 (possibly until 2024).
The EUROCONTROL contribution for SESAR2020 is as follows:
Lease commitments
The Organisation has analysed lease contracts and the impact of IFRS 16 is immaterial (about 0.5 Mio EUR in 2020 compared to
1 Mio EUR in 2019). Therefore, there were no right of use asset and no lease liability recognised in year 2020.
Contingent liabilities
2020 €000
2019 €000
ILOAT 103 98
Support to States Policy (Special Annex) - 2.546
103 2.643
Litigious cases with Staff were brought to the International Labour Organisation Administrative Tribunal (ILOAT) for a contingent
liability estimated at €103,251.
As from 2016, EUROCONTROL has implemented a Support to States Policy, whereby the first 50 days of support is free of charge.
A mechanism of annual carry-over of unused days is applicable with a maximum of 100 days. This policy has been discontinued
in 2020.
SESAR2020Contribution of the year
2020€000
2019€000
2018 €000
2017€000
2016 €000
TOTAL
Cash/near Cash 929 973 3.947 6.111 2.686 11.960
In-kind 49.882 65.505 61.165 55,241 4.362 232.634
Total 50.811 66.478 65.111 61.352 7.048 244.594
55
FINANCIAL ACCOUNTS
2.6.23. Related party disclosures
The Organisation has entered into transactions with the Member States, the European Union, key management personnel and
their close family members. For the years ended 31 December 2020 and 2019, the Organisation has not made any provision for
doubtful debts concerning amounts owed by related parties. Outstanding balances with related parties at the year-ends are
unsecured and settlement occurs in cash.
Member States and the European Union
The 41 Member States constitute the Permanent Commission (Transport and Defense Ministers), the higher level of decision of
the Organisation. The European Union is also a member of the Permanent Commission.
Contributions from Member states are on a 60 days term. Receivables from Member States were not impaired.
The following table provides the total amount of transactions, which have been entered into with related parties.
Transactions with related parties in 2020
Note Revenue from
related parties
€000
Expenses to
related parties
€000
Amounts owed by
related parties
€000
Amounts owed to
related parties
€000
Member States (including European Union) 2.6.3 & 2.6.12 546.119 - 150.902 240.425
Other income 2.6.4 87 - - -
Financial assets 2.6.11 - - 296 -
Other receivables 2.6.13 - - 4.953 -
Rendering of services : Special annexes 2.6.3 12.751 - - -
Total Member States 558.957 - 156.151 240.425
Transactions with related parties in 2019
Note Revenue from
related parties
€000
Expenses to
related parties
€000
Amounts owed by
related parties
€000
Amounts owed to
related parties
€000
Member States (including European Union) 2.6.3 & 2.6.12 569.632 - 135.116 258.799
Other income 2.6.4 1 - - -
Financial assets 2.6.11 - - 319 -
Other receivables 2.6.13 - - 3.487 -
Rendering of services : Special annexes 2.6.3 21.399 - - -
Total Member States 591.032 - 138.922 258.799
56
Key management personnel and their close family members
Key management personnel are those people having authority and responsibility for planning, directing and controlling the
activities of the Organisation, directly or indirectly, as well as their close members of their families or households. This implies to
the Director General and Directors.
The system of staff remuneration, including of the Director General and the Directors, is approved by the Commission and is
linked to the method used by the European Commission. In line with the public-sector nature of the Agency there are no dis-
cretionary payments to staff.
Compensation Benefits2020
€000
2019
€000
Short-term employee benefits 1.518 1.661
Post-employee benefits 720 387
Total remuneration 2.238 2.048
2.6.24 Financialriskmanagementobjectivesandpolicies
The Organisation’s principal financial instruments comprise bank loans, Member States contributions, finance leases, trade
payables and marketable securities. The main purpose of these financial instruments is to raise finance for the Organisation’s
operations. The Organisation has various financial assets such as receivables from Member States, marketable securities and cash
and short-term deposits, which arise directly from its operations.
The Organisation has not entered into any derivative transactions.
The main risks arising from the Organisation’s financial instruments are cash flow interest rate risk, foreign currency risk, credit risk
and liquidity risk. The Treasury Committee and the Standing Committee on Finance reviews and agrees policies for managing
each of these risks which are summarised below.
Interest rate risk
The Organisation’s exposure to the risk of changes in market interest rates relates primarily to the Organisation’s long-term debt
obligations with floating interest rates.
The Organisation’s policy is to manage its interest cost using a mix of fixed and variable rate debts. The Organisation’s policy is
to keep around 50% of its borrowings at fixed rates of interest.
57
FINANCIAL ACCOUNTS
Interest rate risk table
The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held
constant, of the Organisation’s profit (through the impact on floating rate borrowings). There is no impact on the Organisation’s
equity.
Foreign currency risk
Exposure to foreign currency exchange rates arises from transactions denominated in currencies other than the Organisation
functional currency, which is the euro. However, the foreign currency risk is rather limited as Member States contributions,
interest-bearing loans and the main part of revenues and expenses are set in euro. The Organisation does not keep any substantial
position in currency. The strategy is to buy or sell the currency at the date of the transaction.
Credit risk
Contributions and other receivables held with Member States are subject to very limited credit risks.
With respect to credit risk arising from the other financial assets of the Organisation, which comprise cash and cash equivalents
and marketable financial investments, the Organisation’s exposure to credit risk arises from default of the counterparty, with a
maximum exposure equal to the carrying amount of these instruments. It is the Organisation policy to have those financial assets
with financial institutions having at least a BBB rating and broad international representation.
Increase/ decrease in basis points
Effect on profit before tax
€000
2020
Euro +20 (242.5)
Euro -20 242.5
2019
Euro +20 (170)
Euro -20 170
58
Liquidity risk
The Organisation monitors its risk to a shortage of funds by the Alignment policy of the Organisation’s Fixed Assets and Liabilities,
which was adopted in 1998.
In order to correlate the development of the debts to the development of the assets, the following mechanism is applied:
n link the increase of liabilities to increase of assets: this is ensured by the principle that all new capital expenditure is
fully financed by bank loans;
n llink the depreciation of assets to the reimbursement of loans.
Concerning the liquidity risk on the pensions, the objective of the actuarial assessment carried out on the pension related
liabilities is to determine the necessary stable level of the pension contributions from Member States, aiming to balance in the
long term the financing of pension benefits. In addition, the long term aim of the management of the Fund’s assets is to maintain
the stability of the pension scheme, by ensuring that the real value of the assets is preserved. The Pension Fund Supervisory Board
sets the Fund’s investment guidelines and defines the investment target strategy.
Concerning the liquidity risk on the sickness allowances, ALM studies are performed in order to ensure that the Organisation has
sufficient current assets to cover the current liabilities of the sickness scheme.
The table below summarises the maturity profile of the Organisation’s financial liabilities at 31 December 2020 and 2019 based
on contractual undiscounted payments.
Year ended 31 December 2020On demand
€000
Less than 3 months
€000
3 to 12 months
€000
1 to 5 years
€000
> 5 years
€000
Total
€000
Interest bearing loans and borrowings incl. interests due in the future
- - 192.771 88.869 60.487 342.127
Financial lease - - - - - -
Amounts to be reimbursed to Member States 48.396 - - - - 48.396
Trade and other payables 101.523 - - - - 101.523
149.918 - 192.771 88.869 60.487 492.045
Year ended 31 December 2019On demand
€000
Less than 3 months
€000
3 to 12 months
€000
1 to 5 years
€000
> 5 years
€000
Total
€000
Interest bearing loans and borrowings incl. interests due in the future
- 13.512 24.100 62.049 - 99.662
Financial lease - - - - - -
Amounts to be reimbursed to Member States 64.256 - - - - 64.256
Trade and other payables 111.924 - - - - 111.924
176.180 13.512 24.100 62.049 - 275.842
59
FINANCIAL ACCOUNTS
Capital Risk
The Organisation is an international non-profit organisation and the main objectives of its capital management are to ensure the
continuity of its tasks as defined in its Business Plan and to meet its obligation to its stakeholders.
The Organisation is financed from contributions from its Member States, loans for investments and specific contributions for projects.
2.6.25. Financial instruments
Fair values
As at 31 December 2020, all financial investments are classified as Level 1 except for the level 3 instruments in the below table.
Trade receivable and trade payables are also classified as level 3 instruments.
Set out below is a comparison by category of carrying amounts and fair values of all of the Organisation’s financial instruments
that are reflected in the financial statements:
Market values have been used to determine the fair value of marketable securities. The fair value of borrowings has been
calculated by discounting the expected future cash flows at prevailing interest rate. The fair value of loan notes and other
financial assets has been calculated using market interest rates.
The fair value of the available for sale investments has been valued at cost in USD and converted to EUR using the exchange rate
as at 31 December 2020.
2.6.26. Eventsafterfinancialpositiondate
None
2020 2019
Carrying amount
€000
Fair value
€000
Carrying amount
€000
Fair value
€000
Financial assets
Cash and short term deposit 206.683 206.683 235.008 235.008
Available for sale investments 296 296 319 319
Marketable securities 1.785.802 1.785.802 1.700.156 1.700.156
Financial liabilities
Obligations under finance and operating leases - - - -
Floating rate borrowings (Level3) 17.500 17.500 85.000 85.000
Fixed rate borrowings 322.236 322.236 13.500 13.500
61
3. BUDGETARY ACCOUNTS
62
Principles governing the Budgetary Accounts
1. General principles : Article 29 of the Financial Regulations
The Article 29 of the Financial Regulations of the Agency
was modified by the Measure 11/172 of the Permanent
Commission dated 17/1/2011 to align, as closely as
possible, to preparation of the Budget and cost-base to the
principle of IFRS.
The closest alignment to the IFRS for the preparation of the
Budget and cost-base brings the following advantages:
n maximum alignment of the budgetary, accounting
and cost-base processes by reducing / limiting the
reconciliation elements;
n for the stakeholders, greater transparency, stability
and predictability of the _EUROCONTROL financial
processes, in particular contributions and cost-base;
n compliance with European Regulation (EC) No.
550/2004, which requires ANSPs to publish their
financial accounts in full compliance with the IFRS or to
the maximum possible extent and, as a consequence,
to prepare their cost-base in such a manner as to be
consistent with the financial accounts (EC Regulation
No. 1794/2006).
Receipts shall be taken into account in the budget for the year
during which they refer.
Expenditure shall be taken into account in the budget for
the year during which it refers. Exceptions to these rules
are specified in the Rules of Application of the Financial
Regulations and listed below:
n the contributions to the social security schemes
(pension, sickness, and unemployment) are
determined in accordance to the Staff Regulations.
This is the basis for their inclusion in the budgetary
accounts and in the EUROCONTROL part of the cost-
base. As a consequence, the service cost, the interest
cost and the actuarial gain (loss) on the Defined
Benefit Obligation are not included in the budgetary
accounts and in the EUROCONTROL part of the cost-
base;
n the compensation of national taxes on pension,
the resettlement and removal allowance and the
pensions of staff retired before 2005 are included in
the budgetary accounts and in the EUROCONTROL
part of the cost-base on a “pay as you go” (cash) basis
(instead of on an accrual basis);
n the budgetary appropriations for the dismantling
of the buildings, untaken leave, paid sickness leave,
sickness costs incurred but not yet claimed, litigations,
restructuring (early retirement costs) are included in
the budgetary accounts and in the EUROCONTROL
part of the cost-base on a “pay as you go” (cash) basis
(instead of on an accrual basis).
2. Definitionsoftypesofexpenditure: Article 6 para. 1 of the Financial Regulations
n “Capital expenditure” shall be deemed to mean
expenditure incurred in the acquisition or creation of
tangible or intangible fixed assets, which will provide
future economic benefit to the Agency and which
have a useful life exceeding one year.
n “Operating expenditure” (which includes staff
expenditure), shall be deemed to mean expenditure
incurred in order to enable the continuing activities of
the Organisation to be carried out.
3. Presentation of the budget: Article 6 para. 2 of the Financial Regulations
n The presentation of the budget and the financial
63
BUDGETARY ACCOUNTS
five-year programme shall facilitate the understanding
of the appropriations allocated to the Agency’s various
activities and the monitoring of the use of these
appropriations (nature or projects/activities).
n In accordance with the principles of economics and
sound financial management, it shall justify the
appropriations on the basis of the framework set by
the Commission and the Agency’s work programme.
4. Structure of the budget: Article 6 para. 3 of the Financial Regulations
The expenditure and receipts shall be presented in
accordance with the budgetary structure and
nomenclature as defined in the Rules of Application of the
Financial Regulations.
5. Carry-over of the budget: Article 7 of the Financial Regulations
Budgetary appropriations which have not been committed
at the end of the budgetary year may not be carried over.
The Director General may request authorisation from the
Commission for the exceptional carry-over of
appropriations where circumstances so warrant.
The utilisation of the appropriations carried over shall be
separately recorded in the accounts for the budgetary year
into which they have been carried over.
64
3.1 Part I
57
3.1
Part
I B
udge
tary
Acc
ount
s - A
ctiv
ities
fina
nced
by
41 M
embe
r Sta
tes
Des
crip
tion
of e
xpen
ditu
re a
nd re
ceip
ts A
ppro
ved
Bud
get
Tota
lU
nuse
d B
udge
t
% O
uttu
rn
PAR
T I
PAR
T I
PAR
T I
PAR
T I
Land
& B
uild
ing
02.
195.
384
-2.1
95.3
84Eq
uipm
ent &
sof
twar
e5.
167.
000
566.
757
4.60
0.24
311
,0%
TOTA
L C
APIT
AL E
XPEN
DIT
UR
E5.
167.
000
2.76
2.14
02.
404.
860
53,5
%
Staf
f11
5.78
4.00
011
0.35
7.66
55.
426.
335
95,3
%ET
S2.
608.
000
2.56
1.58
246
.418
98,2
%O
ther
ope
ratin
g co
st41
.915
.000
28.3
71.0
8113
.543
.919
67,7
%C
ost o
f Cap
ital :
inte
rest
s pa
id to
ban
ks1.
674.
000
312.
089
1.36
1.91
118
,6%
Dep
reci
atio
n5.
788.
000
4.52
2.23
11.
265.
769
78,1
%C
ompe
nsat
ion
for n
atio
nal t
ax24
.715
.000
23.9
93.1
3672
1.86
497
,1%
Indi
rect
IT S
ervic
es c
harg
ed7.
487.
000
6.73
3.05
975
3.94
189
,9%
TOTA
L O
PER
ATIN
G E
XPEN
DIT
UR
E19
9.97
1.00
017
6.85
0.84
423
.120
.156
88,4
%
Staf
f Con
tribu
tions
-1.4
78.0
00-1
.490
.596
12.5
9610
0,9%
Sale
of a
sset
s0
-85.
500
85.5
00Sa
les
of S
ervic
es a
nd G
rant
s-3
.939
.000
-3.6
33.0
62-3
05.9
3892
,2%
Rec
eipt
from
Mor
occo
& Is
rael
-4.2
92.0
00-3
.981
.192
-310
.808
Fina
ncia
l Rec
eipt
s-3
00.0
00-5
75.0
4827
5.04
819
1,7%
Indi
rect
Cos
t cha
rged
-35.
381.
000
-31.
827.
122
-3.5
53.8
7890
,0%
Com
pens
atio
n fo
r nat
iona
l tax
TOTA
L R
ECEI
PTS
-45.
390.
000
-41.
592.
520
-3.7
97.4
8091
,6%
CO
STB
ASE
154.
581.
000
135.
258.
324
19.3
22.6
7687
,5%
Inte
rnal
Tax
-36.
144.
000
-30.
991.
467
-5.1
52.5
3385
,7%
TOTA
L C
ON
TRIB
UTI
ON
S 11
8.43
7.00
010
4.26
6.85
714
.170
.143
88,0
%
Cos
t Con
tain
men
t Mea
sure
s 20
20-1
0.41
3.79
9-1
0.41
3.79
9IN
EA R
P2 in
com
e re
turn
ed to
Sta
tes
-633
.825
-633
.825
0
TOTA
L C
ON
TRIB
UTI
ON
S 10
7.38
9.37
610
3.63
3.03
23.
756.
344
96,5
%
OU
TTU
RN
BU
DG
ETU
NU
SED
BU
DG
ET
65
BUDGETARY ACCOUNTS
58
Budgetary Accounts - Activities financed by 41 Member States Part I
Description of expenditure and receiptsCorporate Functions
Air Traffic Management
Approved Budget
1CF 1SR PART I
Land & Building 0Equipment & software 4.667.000 500.000 5.167.000
TOTAL CAPITAL EXPENDITURE 4.667.000 500.000 5.167.000
Staff 44.177.000 71.607.000 115.784.000ETS 835.000 1.773.000 2.608.000Other operating cost 18.153.000 23.762.000 41.915.000Cost of Capital : interests paid to banks 1.624.000 50.000 1.674.000Depreciation 5.312.000 476.000 5.788.000Compensation for national tax 11.943.000 12.772.000 24.715.000Indirect IT Services charged 3.880.000 3.607.000 7.487.000
TOTAL OPERATING EXPENDITURE 72.486.000 127.485.000 199.971.000
Staff Contributions -558.000 -920.000 -1.478.000Sale of assets 0Sales of Services and Grants 0 -3.939.000 -3.939.000Receipt from Morocco & Israel -4.292.000 -4.292.000Financial Receipts -300.000 0 -300.000
Indirect Cost charged -35.381.000 -35.381.000Compensation for national tax
TOTAL RECEIPTS -40.531.000 -4.859.000 -45.390.000
COSTBASE 31.955.000 122.626.000 154.581.000
Internal Tax -16.138.000 -20.006.000 -36.144.000
TOTAL CONTRIBUTIONS 15.817.000 102.620.000 118.437.000
Cost Containment Measures 2020 -2.060.784 -8.353.015 -10.413.799INEA RP2 income returned to States -633.825 -633.825
TOTAL CONTRIBUTIONS 13.756.216 93.633.160 107.389.376
BUDGET
66
59 Budgetary Accounts - Activities financed by 41 Member States Part I
Description of expenditure and receiptsCorporate Functions
Air Traffic Management
Total
1CF 1SR PART I
Land & Building 2.195.384 2.195.384Equipment & software 71.166 495.591 566.757
TOTAL CAPITAL EXPENDITURE 2.266.549 495.591 2.762.140
Staff 41.250.305 69.107.360 110.357.665ETS 881.277 1.680.305 2.561.582Other operating cost 16.559.031 11.812.050 28.371.081Cost of Capital : interests paid to banks 292.792 19.297 312.089Depreciation 4.101.580 420.651 4.522.231Compensation for national tax 11.981.698 12.011.438 23.993.136Indirect IT Services charged 3.489.284 3.243.775 6.733.059
TOTAL OPERATING EXPENDITURE 66.471.173 110.379.670 176.850.844
Staff Contributions -505.436 -985.161 -1.490.596Sale of assets -85.500 0 -85.500Sales of Services and Grants 0 -3.633.062 -3.633.062Receipt from Morocco & Israel -3.981.192 -3.981.192Financial Receipts -575.048 0 -575.048
Indirect Cost charged -31.827.122 -31.827.122Compensation for national tax
TOTAL RECEIPTS -36.974.297 -4.618.222 -41.592.520
COSTBASE 29.496.876 105.761.448 135.258.324
Internal Tax -12.740.715 -18.250.752 -30.991.467
TOTAL CONTRIBUTIONS 16.756.161 87.510.696 104.266.857
Cost Containment Measures 2020INEA RP2 income returned to States -633.825 -633.825
TOTAL CONTRIBUTIONS 16.756.161 86.876.871 103.633.032
OUTTURN
67
BUDGETARY ACCOUNTS59
Budgetary Accounts - Activities financed by 41 Member States Part I
Description of expenditure and receiptsCorporate Functions
Air Traffic Management
Total
1CF 1SR PART I
Land & Building 2.195.384 2.195.384Equipment & software 71.166 495.591 566.757
TOTAL CAPITAL EXPENDITURE 2.266.549 495.591 2.762.140
Staff 41.250.305 69.107.360 110.357.665ETS 881.277 1.680.305 2.561.582Other operating cost 16.559.031 11.812.050 28.371.081Cost of Capital : interests paid to banks 292.792 19.297 312.089Depreciation 4.101.580 420.651 4.522.231Compensation for national tax 11.981.698 12.011.438 23.993.136Indirect IT Services charged 3.489.284 3.243.775 6.733.059
TOTAL OPERATING EXPENDITURE 66.471.173 110.379.670 176.850.844
Staff Contributions -505.436 -985.161 -1.490.596Sale of assets -85.500 0 -85.500Sales of Services and Grants 0 -3.633.062 -3.633.062Receipt from Morocco & Israel -3.981.192 -3.981.192Financial Receipts -575.048 0 -575.048
Indirect Cost charged -31.827.122 -31.827.122Compensation for national tax
TOTAL RECEIPTS -36.974.297 -4.618.222 -41.592.520
COSTBASE 29.496.876 105.761.448 135.258.324
Internal Tax -12.740.715 -18.250.752 -30.991.467
TOTAL CONTRIBUTIONS 16.756.161 87.510.696 104.266.857
Cost Containment Measures 2020INEA RP2 income returned to States -633.825 -633.825
TOTAL CONTRIBUTIONS 16.756.161 86.876.871 103.633.032
OUTTURN
60
Budgetary Accounts - Activities financed by 41 Member States Part I
Description of expenditure and receiptsCorporate Functions
Air Traffic Management
Unused Budget % Outturn
1CF 1SR PART I PART I
Land & Building -2.195.384 0 -2.195.384Equipment & software 4.595.834 4.409 4.600.243 11,0%
TOTAL CAPITAL EXPENDITURE 2.400.451 4.409 2.404.860 53,5%
Staff 2.926.695 2.499.640 5.426.335 95,3%ETS -46.277 92.695 46.418 98,2%Other operating cost 1.593.969 11.949.950 13.543.919 67,7%Cost of Capital : interests paid to banks 1.331.208 30.703 1.361.911 18,6%Depreciation 1.210.420 55.349 1.265.769 78,1%Compensation for national tax -38.698 760.562 721.864 97,1%Indirect IT Services charged 390.716 363.225 753.941 89,9%
TOTAL OPERATING EXPENDITURE 6.014.827 17.105.330 23.120.156 88,4%
Staff Contributions -52.564 65.161 12.596 100,9%Sale of assets 85.500 0 85.500Sales of Services and Grants 0 -305.938 -305.938 92,2%Receipt from Morocco & Israel -310.808 -310.808Financial Receipts 275.048 0 275.048 191,7%
Indirect Cost charged -3.553.878 -3.553.878 90,0%Compensation for national tax
TOTAL RECEIPTS -3.556.703 -240.778 -3.797.480 91,6%
COSTBASE 2.458.124 16.864.552 19.322.676 87,5%
Internal Tax -3.397.285 -1.755.248 -5.152.533 85,7%
TOTAL CONTRIBUTIONS -939.161 15.109.304 14.170.143 88,0%
Cost Containment Measures 2020 -2.060.784 -8.353.015 -10.413.799INEA RP2 income returned to States 0 0 0
TOTAL CONTRIBUTIONS -2.999.945 6.756.289 3.756.344 96,5%
UNUSED BUDGET
68
3.2 Part IX
Budgetary Accounts - Activities financed by 41 Member States Part IX
Description of expenditure and receiptsBUDGET OUTTURN UNUSED % OUTTURN
PART IX PART IX PART IX PART IX
Land & Building 321.448 -321.448Equipment & software 20.975.000 18.099.979 2.875.021 86,3%
TOTAL CAPITAL EXPENDITURE 20.975.000 18.421.427 2.553.573 87,8%
Staff 127.884.000 128.944.762 -1.060.762 100,8%ETS 2.484.000 2.130.193,91 353.806PBO 0Other operating cost 102.545.000 91.184.501 11.360.499 88,9%Cost of Capital : interests paid to banks 727.000 12.204 714.796 1,7%Depreciation 7.669.000 6.741.124 927.876 87,9%Indirect Cost charged 27.463.000 24.697.476 2.765.524 89,9%Compensation for national tax 17.003.000 15.958.933 1.044.067 93,9%Indirect IT Services charged 0 0
TOTAL OPERATING EXPENDITURE 285.775.000 269.669.195 16.105.805 94,4%
Staff Contributions -1.590.000 -1.650.369 60.369 103,8%Sale of assets 0Sales of Services and Grants -5.621.000 -2.881.080 -2.739.921 51,3%
Receipts from Morocco & Israel -3.150.000 -4.355.864 1.205.864 138,3%Financial Receipts 0 -27.849 27.849 100,0%
Indirect IT Services charged -9.520.000 -8.566.250 -953.750 90,0%
TOTAL RECEIPTS -19.881.000 -17.481.411 -2.399.589 87,9%
COSTBASE 265.894.000 252.187.784 13.706.216 94,8%
Internal Tax -34.768.000 -32.132.977 -2.635.023 92,4%
TOTAL CONTRIBUTIONS 231.126.000 220.054.807 11.071.193 95,2%
Cost Containment Measures 2020 -7.707.000 -7.707.000INEA RP2 income returned to States -14.636.931 -14.636.931 0
TOTAL CONTRIBUTIONS 208.782.069 205.417.876 3.364.193 98,4%
69
BUDGETARY ACCOUNTS
Budgetary Accounts - Activities financed by 41 Member States Part IX
Description of expenditure and receiptsBUDGET OUTTURN UNUSED % OUTTURN
PART IX PART IX PART IX PART IX
Land & Building 321.448 -321.448Equipment & software 20.975.000 18.099.979 2.875.021 86,3%
TOTAL CAPITAL EXPENDITURE 20.975.000 18.421.427 2.553.573 87,8%
Staff 127.884.000 128.944.762 -1.060.762 100,8%ETS 2.484.000 2.130.193,91 353.806PBO 0Other operating cost 102.545.000 91.184.501 11.360.499 88,9%Cost of Capital : interests paid to banks 727.000 12.204 714.796 1,7%Depreciation 7.669.000 6.741.124 927.876 87,9%Indirect Cost charged 27.463.000 24.697.476 2.765.524 89,9%Compensation for national tax 17.003.000 15.958.933 1.044.067 93,9%Indirect IT Services charged 0 0
TOTAL OPERATING EXPENDITURE 285.775.000 269.669.195 16.105.805 94,4%
Staff Contributions -1.590.000 -1.650.369 60.369 103,8%Sale of assets 0Sales of Services and Grants -5.621.000 -2.881.080 -2.739.921 51,3%
Receipts from Morocco & Israel -3.150.000 -4.355.864 1.205.864 138,3%Financial Receipts 0 -27.849 27.849 100,0%
Indirect IT Services charged -9.520.000 -8.566.250 -953.750 90,0%
TOTAL RECEIPTS -19.881.000 -17.481.411 -2.399.589 87,9%
COSTBASE 265.894.000 252.187.784 13.706.216 94,8%
Internal Tax -34.768.000 -32.132.977 -2.635.023 92,4%
TOTAL CONTRIBUTIONS 231.126.000 220.054.807 11.071.193 95,2%
Cost Containment Measures 2020 -7.707.000 -7.707.000INEA RP2 income returned to States -14.636.931 -14.636.931 0
TOTAL CONTRIBUTIONS 208.782.069 205.417.876 3.364.193 98,4%
3.3 Part II62
3.3 Part II
Budgetary Accounts - Part II - Central Route Charge Office : CRCO
Description of expenditure and receipts BUDGET OUTTURN UNUSED BUDGET % OUTTURN
Land & BuildingEquipment & sofware 100.000 3.206 96.794 3,2%
TOTAL CAPITAL EXPENDITURE 100.000 3.206 96.794 3,2%
Staff costs 14.063.000 11.964.599 2.098.401 85,1%Pension, PBO & ETS 0Other operating cost 3.695.000 3.103.421 591.579 84,0%Cost of capital : interest paid to banks 25.295 -25.295Depreciation 16.804 -16.804Indirect Cost charged 3.329.000 3.002.758 326.242 90,2%Compensation for national tax 4.180.000 3.636.447 543.553 87,0%Indirect IT Services charged 1.820.000 1.641.640 178.360 90,2%
TOTAL OPERATING EXPENDITURE 27.087.000 23.390.965 3.696.035 86,4%
Internal tax Other Staff receipts -181.000 -161.895 -19.105 89,4%Sale of assetsSale of services -2.830.000 2.830.000 100,0%Financial receipts
TOTAL RECEIPTS -181.000 -2.991.895 2.810.895 1653,0%
TOTAL ADMINISTRATIVE UNIT RATE 27.006.000 20.402.275 6.603.725 75,5%
70
63
3.
4 Pa
rt III
Bu
dget
ary A
ccou
nts
- Par
t III
- Maa
stric
ht U
pper
Are
a Co
ntro
l : M
UAC
BUDG
ETBU
DGET
BUDG
ETO
UTTU
RNO
UTTU
RNO
UTTU
RNUN
USED
%
OUT
TURN
OAT
GAT
OAT
GAT
BUDG
ET
Land
& B
uild
ing
0,00
3.96
1.00
0,00
3.96
1.00
0,00
0,00
864.
656,
7886
4.65
6,78
3.09
6.34
3,22
21,8
%Eq
uipm
ent &
sof
war
e0,
0012
.563
.000
,00
12.5
63.0
00,0
00,
003.
599.
630,
613.
599.
630,
618.
963.
369,
3928
,7%
TOTA
L CA
PITA
L EX
PEND
ITUR
E0,
0016
.524
.000
,00
16.5
24.0
00,0
00,
004.
464.
287,
394.
464.
287,
3912
.059
.712
,61
27,0
%
Staf
f cos
ts10
.717
.952
,00
156.
750.
048,
0016
7.46
8.00
0,00
11.1
46.2
42,2
616
3.01
3.79
3,03
174.
160.
035,
29-6
.692
.035
,29
104,
0%O
ther
ope
ratin
g co
st2.
233.
856,
0032
.670
.144
,00
34.9
04.0
00,0
01.
570.
252,
1322
.964
.937
,39
24.5
35.1
89,5
210
.368
.810
,48
70,3
%C
ost o
f cap
ital
: int
eres
t pai
d to
ban
ks36
.544
,00
534.
456,
0057
1.00
0,00
9.85
0,70
144.
066,
5015
3.91
7,20
417.
082,
8027
,0%
Dep
reci
atio
n70
7.32
8,00
10.3
44.6
72,0
011
.052
.000
,00
622.
272,
229.
100.
731,
189.
723.
003,
401.
328.
996,
6088
,0%
.TO
TAL
OPE
RATI
NG E
XPEN
DITU
RE13
.695
.680
,00
200.
299.
320,
0021
3.99
5.00
0,00
13.3
48.6
17,3
119
5.22
3.52
8,10
208.
572.
145,
415.
422.
854,
5997
,5%
O
ther
Sta
ff re
ceip
ts-1
12.5
12,0
0-1
.645
.488
,00
-1.7
58.0
00,0
0-1
14.0
23,9
1-1
.667
.599
,71
-1.7
81.6
23,6
223
.623
,62
101,
3%Sa
le o
f ass
ets
0,00
-80,
00-1
.170
,00
-1.2
50,0
01.
250,
00
Sale
of s
ervic
es-3
02.7
20,0
0-4
.427
.280
,00
-4.7
30.0
00,0
0-2
80.1
90,5
6-4
.097
.786
,89
-4.3
77.9
77,4
5-3
52.0
22,5
592
,6%
Fina
ncia
l rec
eipt
s0,
00-2
.132
,39
-31.
186,
13-3
3.31
8,52
33.3
18,5
2
TO
TAL
RECE
IPTS
-415
.232
,00
-6.0
72.7
68,0
0-6
.488
.000
,00
-396
.426
,85
-5.7
97.7
42,7
4-6
.194
.169
,59
-293
.830
,41
95,5
%
TOTA
L CO
STBA
SE13
.280
.448
,00
194.
226.
552,
0020
7.50
7.00
0,00
12.9
52.1
90,4
518
9.42
5.78
5,37
202.
377.
975,
825.
129.
024,
1897
,5%
Inte
rnal
Tax
-3.2
63.3
99,3
2-4
4.75
4.60
0,68
-48.
018.
000,
00-3
.470
.310
,49
-47.
592.
202,
20-5
1.06
2.51
2,69
3.04
4.51
2,69
106,
3%
TOTA
L CO
NTRI
BUTI
ONS
10.0
17.0
48,6
814
9.47
1.95
1,32
159.
489.
000,
009.
481.
879,
9714
1.83
3.58
3,16
151.
315.
463,
138.
173.
536,
8794
,9%
Cos
t Con
tain
men
t Mea
sure
s 20
20-5
.521
.700
,97
-5.5
21.7
00,9
7-5
.521
.700
,97
INEA
RP2
inco
me
retu
rned
to S
tate
s-6
.112
.697
,55
-6.1
12.6
97,5
5-6
.112
.697
,55
-6.1
12.6
97,5
50,
00
TOTA
L CO
NTRI
BUTI
ONS
10.0
17.0
48,6
813
7.83
7.55
2,80
147.
854.
601,
489.
481.
879,
9713
5.72
0.88
5,61
145.
202.
765,
582.
651.
835,
9098
,2%
Desc
riptio
n of
exp
endi
ture
and
rece
ipts
3.4 Part III
71
BUDGETARY ACCOUNTS
64
3.5
Part
IV
B
udge
tary
Acc
ount
s - P
art I
V - S
peci
al A
nnex
es
Des
crip
tion
of e
xpen
ditu
re a
nd re
ceip
tsB
UD
GET
OU
TTU
RN
UN
USE
D B
UD
GET
% O
UTT
UR
N
Staf
f cos
ts7.
892.
031,
92Pe
nsio
n, P
BO &
ETS
15.0
25,1
7O
ther
ope
ratin
g co
st5.
964.
783,
81
Indi
rect
Cos
t cha
rged
4.58
9.00
0,00
4.12
6.88
7,70
462.
112,
3089
,9%
Com
pens
atio
n fo
r nat
iona
l tax
12.3
95.0
00,0
010
.358
.845
,00
2.03
6.15
5,00
83,6
%In
dire
ct IT
Ser
vices
cha
rged
213.
000,
0019
1.55
0,90
21.4
49,1
089
,9%
TOTA
L O
PER
ATIN
G E
XPEN
DIT
UR
E82
.961
.260
,34
28.5
49.1
24,5
054
.412
.135
,84
34,4
%
Inte
rnal
tax
-1.0
84.2
33,3
0O
ther
Sta
ff re
ceip
ts-3
6.22
6,83
Sale
of s
ervic
es-1
2.75
1.38
0,50
TOTA
L R
ECEI
PTS
-82.
961.
260,
34-1
3.87
1.84
0,63
-69.
089.
419,
7116
,7%
3.5 Part IV
72
65
3.6
Part
V
Bud
geta
ry A
ccou
nts
- Par
t V -
Sick
ness
ben
efit
sche
me
Des
crip
tion
of e
xpen
ditu
re a
nd re
ceip
tsAp
prov
ed B
udge
tPa
ymen
t and
rece
ipts
Unu
sed
Bud
get
% O
uttu
rn
Rei
mbu
rsm
ent t
o st
aff m
embe
rs, m
edic
al c
onsu
ltant
fe
es a
nd m
isce
llane
ous
expe
nditu
re15
.000
.000
,00
11.9
90.4
31,3
93.
009.
568,
6179
,9%
Fina
nce
& In
sura
nce
11.1
51,3
2-1
1.15
1,32
TOTA
L O
PER
ATIN
G E
XPEN
DIT
UR
E15
.000
.000
,00
12.0
01.5
82,7
12.
998.
417,
2980
,0%
Staf
f con
tribu
tion
-6.0
00.0
00,0
0-6
.405
.615
,97
405.
615,
9710
6,8%
Org
anis
atio
n's
cont
ribut
ion
-12.
000.
000,
00-1
2.71
1.61
7,77
711.
617,
7710
5,9%
Fina
ncia
l yie
lds
-150
,00
-734
,69
584,
6948
9,8%
Mis
cella
neou
s re
ceip
ts
TOTA
L R
ECEI
PTS
-18.
000.
150,
00-1
9.11
7.96
8,43
1.11
7.81
8,43
106,
2%
BAL
ANC
E-3
.000
.150
,00
-7.1
16.3
85,7
24.
116.
235,
7223
7,2%
3.6 Part V
73
BUDGETARY ACCOUNTS
66
3.7
Part
VII
Bud
geta
ry A
ccou
nts
- Par
t VII
- Une
mpl
oym
ent b
enef
it sc
hem
e - T
empo
rary
soc
ial a
llow
ance
s
Des
crip
tion
of e
xpen
ditu
re a
nd re
ceip
tsAp
prov
ed B
udge
tPa
ymen
t and
rece
ipts
Unu
sed
Bud
get
% O
uttu
rn
Paym
ent o
f une
mpl
oym
ent a
llow
ance
s25
0.00
0,00
111.
447,
4313
8.55
2,57
44,6
%Fi
nanc
e &
Insu
ranc
e0,
0036
1,13
-361
,13
100,
0%
TOTA
L O
PER
ATIN
G E
XPEN
DIT
UR
E25
0.00
0,00
111.
808,
5613
8.19
1,44
44,7
%
Inte
rnal
Tax
-43.
000,
00-1
4.75
8,54
-28.
241,
4634
,3%
Staf
f con
tribu
tion
-91.
000,
00-1
16.8
96,1
525
.896
,15
128,
5%O
rgan
isat
ion'
s co
ntrib
utio
n-2
03.0
00,0
0-2
35.2
80,8
432
.280
,84
115,
9%Fi
nanc
ial y
ield
s0,
00-3
73,4
137
3,41
0,0%
TOTA
L R
ECEI
PTS
-337
.000
,00
-367
.308
,94
30.3
08,9
410
9,0%
BAL
ANC
E-8
7.00
0,00
-255
.500
,38
168.
500,
38
3.7 Part VII
74
67
3.8
Part
X
Bud
geta
ry A
ccou
nts
- Par
t X -
Pens
ions
pai
d by
the
Bud
get a
nd P
BO
Des
crip
tion
of e
xpen
ditu
re a
nd re
ceip
tsAp
prov
ed B
udge
tPa
ymen
t and
rece
ipts
Unu
sed
Bud
get
% O
uttu
rn
Staf
f10
6.57
5.00
010
2.71
8.27
33.
856.
727
96%
PBO
40.1
60.0
0020
.080
.000
20.0
80.0
00
TOTA
L O
PER
ATIN
G E
XPEN
DIT
UR
E14
6.73
5.00
012
2.79
8.27
323
.936
.727
96%
Com
pens
atio
n fo
r nat
iona
l tax
-58.
293.
000
-53.
947.
361
-4.3
45.6
3993
%
TOTA
L R
ECEI
PTS
-58.
293.
000
-53.
947.
361
-4.3
45.6
3993
%
CO
STB
ASE
88.4
42.0
0068
.850
.912
19.5
91.0
8878
%
TOTA
L C
ON
TRIB
UTI
ON
S 88
.442
.000
68.8
50.9
1219
.591
.088
78%
Ded
uctio
n PB
O Q
3-4
2020
-20.
080.
000
-20.
080.
000
TOTA
L C
ON
TRIB
UTI
ON
S 68
.362
.000
68.8
50.9
12-4
88.9
1210
0,7%
3.6 Part X
75
4. EUROCONTROL PARTOF THE COST BASE
4.1 Cost Base : Part I & X
Reconciliation with Budgetary Accounts – Part I & X
FORECAST PART I & X
ACTUAL PART I & X
UNSPENT PART I & X
Staff 222.359.000 213.075.939 9.283.061 Pension & ETS 2.608.000 2.561.582 46.418 PBO 40.160.000 20.080.000 20.080.000 Other operating 41.915.000 28.371.081 13.543.919 Cost of capital 1.674.000 312.089 1.361.911 Depreciation 5.788.000 4.522.231 1.265.769 Compensation for national tax 24.715.000 23.993.136 721.864 Indirect IT Services charged 7.487.000 6.733.059 753.941 TOTAL EXPENDITURE 346.706.000 299.649.117 47.056.883 Staff receipts -1.478.000 -1.490.596 12.596 Sale of assets 0 -85.500 85.500 Sale of services -3.939.000 -3.633.062 -305.938 Receipts from Morocco & Israel -4.292.000 -3.981.192 -310.808 Indirect Cost charged -35.381.000 -31.827.122 -3.553.878 Compensation for national tax -58.293.000 -53.947.361 -4.345.639 Financial receipts -300.000 -575.048 275.048 TOTAL RECEIPTS -103.683.000 -95.539.881 -8.143.119 TOTAL COSTBASE 243.023.000 204.109.236 38.913.764 INTERNAL TAX -36.144.000 -30.991.467 -5.152.533 CONTRIBUTIONS 206.879.000 173.117.769 33.761.231
Comparison of the 2020 Outturn Cost Base with the Forecast Cost Base
COSTBASE FORECAST PART I &X
ACTUAL PART I & X
UNSPENT PART I &X
1a Staff costs 220.881.000 211.585.342 9.295.658 1b Pension & ETS 2.608.000 2.561.582 46.418 1c PBO 40.160.000 20.080.000 20.080.000 2 Operating costs 33.684.000 20.671.327 13.012.673 3 Depreciation 5.788.000 4.522.231 1.265.769 4 Cost of capital 1.674.000 312.089 1.361.911 Indirect Cost charged -35.381.000 -31.827.122 -3.553.878 Compensation for national tax -33.578.000 -29.954.225 -3.623.775 Indirect IT Services charged 7.487.000 6.733.059 753.941 Financial receipts -300.000 -575.048 275.048 TOTAL COSTBASE 243.023.000 204.109.236 38.913.764
4.1 Cost Base : Part I & X
Reconciliation with Budgetary Accounts – Part I & X
FORECAST PART I & X
ACTUAL PART I & X
UNSPENT PART I & X
Staff 222.359.000 213.075.939 9.283.061 Pension & ETS 2.608.000 2.561.582 46.418 PBO 40.160.000 20.080.000 20.080.000 Other operating 41.915.000 28.371.081 13.543.919 Cost of capital 1.674.000 312.089 1.361.911 Depreciation 5.788.000 4.522.231 1.265.769 Compensation for national tax 24.715.000 23.993.136 721.864 Indirect IT Services charged 7.487.000 6.733.059 753.941 TOTAL EXPENDITURE 346.706.000 299.649.117 47.056.883 Staff receipts -1.478.000 -1.490.596 12.596 Sale of assets 0 -85.500 85.500 Sale of services -3.939.000 -3.633.062 -305.938 Receipts from Morocco & Israel -4.292.000 -3.981.192 -310.808 Indirect Cost charged -35.381.000 -31.827.122 -3.553.878 Compensation for national tax -58.293.000 -53.947.361 -4.345.639 Financial receipts -300.000 -575.048 275.048 TOTAL RECEIPTS -103.683.000 -95.539.881 -8.143.119 TOTAL COSTBASE 243.023.000 204.109.236 38.913.764 INTERNAL TAX -36.144.000 -30.991.467 -5.152.533 CONTRIBUTIONS 206.879.000 173.117.769 33.761.231
Comparison of the 2020 Outturn Cost Base with the Forecast Cost Base
COSTBASE FORECAST PART I &X
ACTUAL PART I & X
UNSPENT PART I &X
1a Staff costs 220.881.000 211.585.342 9.295.658 1b Pension & ETS 2.608.000 2.561.582 46.418 1c PBO 40.160.000 20.080.000 20.080.000 2 Operating costs 33.684.000 20.671.327 13.012.673 3 Depreciation 5.788.000 4.522.231 1.265.769 4 Cost of capital 1.674.000 312.089 1.361.911 Indirect Cost charged -35.381.000 -31.827.122 -3.553.878 Compensation for national tax -33.578.000 -29.954.225 -3.623.775 Indirect IT Services charged 7.487.000 6.733.059 753.941 Financial receipts -300.000 -575.048 275.048 TOTAL COSTBASE 243.023.000 204.109.236 38.913.764
76
4.1. Cost Base: Part I & X
Reconciliation with Budgetary Accounts : Part I & X
Comparison of the 2020 Outturn Cost Base with the Forecast Cost Base
4.2 Cost Base : Part IV (MUAC support cost & tax compensation)
Reconciliation with Budgetary Accounts – Part IV
FORECAST
PART IV ACTUAL PART IV
UNSPENT PART IV
Indirect Cost charged 4.589.000 4.126.888 462.112 Compensation for national tax 12.395.000 10.358.845 2.036.155 Indirect IT Services charged 213.000 191.551 21.449 TOTAL EXPENDITURE 17.197.000 14.677.284 2.519.716 TOTAL RECEIPTS 0 0 0
TOTAL COSTBASE 17.197.000 14.677.284 2.519.716 INTERNAL TAX 0 0 0
CONTRIBUTIONS 17.197.000 14.677.284 2.519.716
Comparison of the 2020 Outturn Cost Base with the Forecast Cost Base
COSTBASE
FORECAST PART IV
ACTUAL PART IV
UNSPENT PART IV
Indirect Cost charged 4.589.000 4.126.888 462.112
Compensation for national tax 12.395.000 10.358.845 2.036.155
Indirect IT Services charged 213.000 191.551 21.449
TOTAL COSTBASE 17.197.000 14.677.284 2.519.716
4.2 Cost Base : Part IV (MUAC support cost & tax compensation)
Reconciliation with Budgetary Accounts – Part IV
FORECAST
PART IV ACTUAL PART IV
UNSPENT PART IV
Indirect Cost charged 4.589.000 4.126.888 462.112 Compensation for national tax 12.395.000 10.358.845 2.036.155 Indirect IT Services charged 213.000 191.551 21.449 TOTAL EXPENDITURE 17.197.000 14.677.284 2.519.716 TOTAL RECEIPTS 0 0 0
TOTAL COSTBASE 17.197.000 14.677.284 2.519.716 INTERNAL TAX 0 0 0
CONTRIBUTIONS 17.197.000 14.677.284 2.519.716
Comparison of the 2020 Outturn Cost Base with the Forecast Cost Base
COSTBASE
FORECAST PART IV
ACTUAL PART IV
UNSPENT PART IV
Indirect Cost charged 4.589.000 4.126.888 462.112
Compensation for national tax 12.395.000 10.358.845 2.036.155
Indirect IT Services charged 213.000 191.551 21.449
TOTAL COSTBASE 17.197.000 14.677.284 2.519.716
77
4.2. Cost Base : Part IV (MUAC support cost & tax compensation)
Reconciliation with Budgetary Accounts – Part IV
EUROCONTROL PART OF THE COST BASE
Comparison of the 2020 Outturn Cost Base with the Forecast Cost Base
78
4.3. Costbase : Part IX
Reconciliation with Budgetary Accounts – Part IX
Comparison of the 2020 Outturn Cost Base with the Forecast Cost Base
4.3 Costbase : Part IX
Reconciliation with Budgetary Accounts – Part IX
FORECAST
PART IX ACTUAL PART IX
UNSPENT PART IX
1a Staff 127.884.000 128.944.762 -1.060.762 1b Pension & ETS 2.484.000 2.130.194 353.806 2 Other operating 102.545.000 91.184.501 11.360.499 3 Cost of capital 727.000 12.204 714.796 4 Depreciation 7.669.000 6.741.124 927.876 Indirect Cost charged 27.463.000 24.697.476 2.765.524 Compensation for national tax 17.003.000 15.958.933 1.044.067 TOTAL EXPENDITURE 285.775.000 269.669.195 16.105.805
1a Staff receipts -1.590.000 -1.650.369 60.369 2 Sale of services -5.621.000 -2.881.080 -2.739.921
Receipts from Morocco & Israel -3.150.000 -4.355.864 1.205.864
2 Indirect IT Services charged -9.520.000 -8.566.250 -953.750 Financial receipts 0 -27.849 27.849 TOTAL RECEIPTS -19.881.000 -17.481.411 -2.399.589
TOTAL COSTBASE 265.894.000 252.187.784 13.706.216 INTERNAL TAX -34.768.000 -32.132.977 -2.635.023 CONTRIBUTIONS 231.126.000 220.054.807 11.071.193
Comparison of the 2020 Outturn Cost Base with the Forecast Cost Base
COSTBASE FORECAST
PART IX ACTUAL PART IX
UNSPENT PART IX
1a Staff costs 126.294.000 127.294.393 -1.000.393 1b Pension & ETS 2.484.000 2.130.194 353.806 2 Operating costs 93.774.000 83.947.558 9.826.442 3 Depreciation 7.669.000 6.741.124 927.876 4 Cost of capital 727.000 12.204 714.796 Indirect Cost charged 27.463.000 24.697.476 2.765.524 Compensation for national tax 17.003.000 15.958.933 1.044.067 Indirect IT Services charged -9.520.000 -8.566.250 -953.750 Financial receipts 0 -27.849 27.849 TOTAL COSTBASE 265.894.000 252.187.784 13.706.216
4.3 Costbase : Part IX
Reconciliation with Budgetary Accounts – Part IX
FORECAST
PART IX ACTUAL PART IX
UNSPENT PART IX
1a Staff 127.884.000 128.944.762 -1.060.762 1b Pension & ETS 2.484.000 2.130.194 353.806 2 Other operating 102.545.000 91.184.501 11.360.499 3 Cost of capital 727.000 12.204 714.796 4 Depreciation 7.669.000 6.741.124 927.876 Indirect Cost charged 27.463.000 24.697.476 2.765.524 Compensation for national tax 17.003.000 15.958.933 1.044.067 TOTAL EXPENDITURE 285.775.000 269.669.195 16.105.805
1a Staff receipts -1.590.000 -1.650.369 60.369 2 Sale of services -5.621.000 -2.881.080 -2.739.921
Receipts from Morocco & Israel -3.150.000 -4.355.864 1.205.864
2 Indirect IT Services charged -9.520.000 -8.566.250 -953.750 Financial receipts 0 -27.849 27.849 TOTAL RECEIPTS -19.881.000 -17.481.411 -2.399.589
TOTAL COSTBASE 265.894.000 252.187.784 13.706.216 INTERNAL TAX -34.768.000 -32.132.977 -2.635.023 CONTRIBUTIONS 231.126.000 220.054.807 11.071.193
Comparison of the 2020 Outturn Cost Base with the Forecast Cost Base
COSTBASE FORECAST
PART IX ACTUAL PART IX
UNSPENT PART IX
1a Staff costs 126.294.000 127.294.393 -1.000.393 1b Pension & ETS 2.484.000 2.130.194 353.806 2 Operating costs 93.774.000 83.947.558 9.826.442 3 Depreciation 7.669.000 6.741.124 927.876 4 Cost of capital 727.000 12.204 714.796 Indirect Cost charged 27.463.000 24.697.476 2.765.524 Compensation for national tax 17.003.000 15.958.933 1.044.067 Indirect IT Services charged -9.520.000 -8.566.250 -953.750 Financial receipts 0 -27.849 27.849 TOTAL COSTBASE 265.894.000 252.187.784 13.706.216
79
EUROCONTROL PART OF THE COST BASE
4.4 Costbase : Part III
Reconciliation with Budgetary Accounts – Part III
Comparison of the 2020 Outturn Cost Base with the Forecast Cost Base
4.4 Costbase : Part III
Reconciliation with Budgetary Accounts – Part III
OUTTURN COSTBASE
OAT COSTBASE
GAT
Remunerations 174.160.035 11.146.242 163.013.793 PBO 0 0 0 Other operating costs 24.535.190 1.570.252 22.964.937 Cost of capital 153.917 9.851 144.066 Depreciation 9.723.003 622.272 9.100.731 TOTAL EXPENDITURE 208.572.145 13.348.617 195.223.528 Other Staff receipts -1.781.624 -114.024 -1.667.600 Sale of assets -1.250 -80 -1.170 Sale of services -4.377.977 -280.191 -4.097.787 Financial receipts -33.319 -2.132 -31.186 TOTAL RECEIPTS -6.194.170 -396.427 -5.797.743 TOTAL COST BASE 202.377.976 12.952.190 189.425.785 Internal Tax 51.062.513 3.470.310 47.592.202 CONTRIBUTIONS 151.315.463 9.481.880 141.833.583
Comparison of the 2020 Outturn Cost Base with the Forecast Cost Base
COSTBASE FORECAST OUTTURN UNSPENT
Staff Costs 165.710.000 172.377.162 -6.667.162 Operating costs 30.174.000,00 20.157.212 10.016.788 Interest 571.000 120.599 450.401 Depreciation 11.052.000 9.723.003 1.328.997 TOTAL 207.507.000 202.377.976 5.129.024
4.4 Costbase : Part III
Reconciliation with Budgetary Accounts – Part III
OUTTURN COSTBASE
OAT COSTBASE
GAT
Remunerations 174.160.035 11.146.242 163.013.793 PBO 0 0 0 Other operating costs 24.535.190 1.570.252 22.964.937 Cost of capital 153.917 9.851 144.066 Depreciation 9.723.003 622.272 9.100.731 TOTAL EXPENDITURE 208.572.145 13.348.617 195.223.528 Other Staff receipts -1.781.624 -114.024 -1.667.600 Sale of assets -1.250 -80 -1.170 Sale of services -4.377.977 -280.191 -4.097.787 Financial receipts -33.319 -2.132 -31.186 TOTAL RECEIPTS -6.194.170 -396.427 -5.797.743 TOTAL COST BASE 202.377.976 12.952.190 189.425.785 Internal Tax 51.062.513 3.470.310 47.592.202 CONTRIBUTIONS 151.315.463 9.481.880 141.833.583
Comparison of the 2020 Outturn Cost Base with the Forecast Cost Base
COSTBASE FORECAST OUTTURN UNSPENT
Staff Costs 165.710.000 172.377.162 -6.667.162 Operating costs 30.174.000 20.157.212 10.016.788 Interest 571.000 120.599 450.401 Depreciation 11.052.000 9.723.003 1.328.997 TOTAL 207.507.000 202.377.976 5.129.024
4.5 Evolution 2016-2020 Outturn Costbase (all Budgetary Parts)
Evolution 2016-2020 by nature of costs
4.5 Evolution 2016-2020 Outturn Costbase (all Budgetary Parts)
Evolution 2016-2020 by nature of costs
COST BASE ALL PARTS 2016 2017 2018 2019 2020 Staff costs 348.998.162 354.912.153 384.596.359 388.882.920 511.256.897 Pension & ETS 104.990.218 104.859.589 91.235.772 106.341.135 4.691.776 Operating costs 136.102.657 126.927.477 123.160.980 124.908.743 116.494.905 Depreciation & cost of capital 20.669.926 18.995.967 18.890.771 19.267.629 20.828.701 PBO 39.423.825 38.729.000 39.213.000 39.684.000 20.080.000
TOTAL 650.184.788 644.424.186 657.096.882 679.084.427 673.352.280
349 355 385 389
511
105 105 91 106
5136 127 123 125 11621 19 19 19 2139 39 39 40 200
0
100
200
300
400
500
600
700
800
2016 2017 2018 2019 2020
in M
€
EVOLUTION COSTBASE 2016-2020 (PARTS I, III, IV & IX) BY NATURE OF COSTS
Staff costs Pension & ETS Operating costs Depreciation & cost of capital PBO Unused credit transferred to the PBO Exceptional items
Σ 644 Σ 679Σ 650 Σ 657 Σ 673
4.5 Evolution 2016-2020 Outturn Costbase (all Budgetary Parts)
Evolution 2016-2020 by nature of costs
COST BASE ALL PARTS 2016 2017 2018 2019 2020 Staff costs 348.998.162 354.912.153 384.596.359 388.882.920 511.256.897 Pension & ETS 104.990.218 104.859.589 91.235.772 106.341.135 4.691.776 Operating costs 136.102.657 126.927.477 123.160.980 124.908.743 116.494.905 Depreciation & cost of capital 20.669.926 18.995.967 18.890.771 19.267.629 20.828.701 PBO 39.423.825 38.729.000 39.213.000 39.684.000 20.080.000
TOTAL 650.184.788 644.424.186 657.096.882 679.084.427 673.352.280
349 355 385 389
511
105 105 91 106
5136 127 123 125 11621 19 19 19 2139 39 39 40 200
0
100
200
300
400
500
600
700
800
2016 2017 2018 2019 2020
in M
€
EVOLUTION COSTBASE 2016-2020 (PARTS I, III, IV & IX) BY NATURE OF COSTS
Staff costs Pension & ETS Operating costs Depreciation & cost of capital PBO Unused credit transferred to the PBO Exceptional items
Σ 644 Σ 679Σ 650 Σ 657 Σ 673
80
EvolutionCostbase2016-2020(PartsI,III,IV&IX)bynatureofcost
81
Evolution 2016-2020 by Parts
Evolution 2016-2020 by Parts
COST BASE ALL PARTS 2016 2017 2018 2019 2020
Part I & X 292.790.141 287.809.175 302.273.027 309.188.519,16 204.109.236 Part IX 206.584.431 197.627.453 183.795.573 181.663.714 252.187.784 Part IV 7.552.977 9.457.624 9.201.179 11.535.515 14.677.284 Part III 143.257.239 149.529.934 161.827.104 176.696.678 202.377.976
TOTAL 650.184.788 644.424.186 657.096.882 679.084.427 673.352.280
293 288 302 309
204
207 198 184 182
252
143 150 162 177202
0
100
200
300
400
500
600
700
800
2016 2017 2018 2019 2020
EVOLUTION COSTBASE 2016-2020BY BUDGETARY PARTS
Part I & X Part IV Part IX (NM) Part III (MUAC)
Σ 650 Σ 657Σ 644 Σ 679
in M
€
Σ 673
Evolution 2016-2020 by Parts
COST BASE ALL PARTS 2016 2017 2018 2019 2020
Part I & X 292.790.141 287.809.175 302.273.027 309.188.519,16 204.109.236 Part IX 206.584.431 197.627.453 183.795.573 181.663.714 252.187.784 Part IV 7.552.977 9.457.624 9.201.179 11.535.515 14.677.284 Part III 143.257.239 149.529.934 161.827.104 176.696.678 202.377.976
TOTAL 650.184.788 644.424.186 657.096.882 679.084.427 673.352.280
293 288 302 309
204
207 198 184 182
252
143 150 162 177202
0
100
200
300
400
500
600
700
800
2016 2017 2018 2019 2020
EVOLUTION COSTBASE 2016-2020BY BUDGETARY PARTS
Part I & X Part IV Part IX (NM) Part III (MUAC)
Σ 650 Σ 657Σ 644 Σ 679
in M
€
Σ 673
EUROCONTROL PART OF THE COST BASE
Evolution Costbase 2016-2020 by nature budgetary parts
82
5. AUDIT REPORT
83
REPORT OF THE AUDIT BOARD ON THE FINANCIAL AND BUDGETARY ACCOUNTS OF THE EUROCONTROL AGENCY
FOR THE YEAR ENDED 31 DECEMBER 2020
To the Commission of the European Organisation for the Safety of Air Navigation Under Article 22bis § 1 of the Statute of the Agency, the Audit Board is required to examine and certify the annual financial statements of the EUROCONTROL Agency which, in accordance with Article 29 of the Financial Regulations of the Agency, incorporate the budgetary accounts. On this basis, the Audit Board has examined the financial accounts of the EUROCONTROL Agency, as disclosed in Part 2 of the annual accounts, comprising the statement of financial position as at 31 December 2020, the income statement, the statement of comprehensive income, the statement of cash flows and the statement of changes in equity for the year then ended, as well as notes to the financial accounts, including a summary of significant accounting policies and other explanatory information, prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and the 2020 budgetary accounts of the EUROCONTROL Agency, as disclosed in Part 3 of the annual accounts, prepared in accordance with the accrual basis in accordance with the Financial Regulations and the Rules of Application of the Financial Regulations of the EUROCONTROL Agency. Based on the procedures we performed, including review of the work carried out in compliance with the International Standards on Auditing (ISAs) by the Audit Board’s contractual auditor PwC Bedrijfsrevisoren BCVBA, which established its final reports on 11 June 2021, the Audit Board concludes that it has reasonable assurance: a) that the financial accounts of the EUROCONTROL Agency for the year ended
31 December 2020 give a true and fair view of EUROCONTROL Agency’s financial position as at 31 December 2020, and of the results of its operations and its cash flows for the year then ended in accordance with IFRS as issued by the IASB, and
b) that the budgetary accounts of the EUROCONTROL Agency for the year ended
31 December 2020 have been prepared in all material respects in accordance with the accrual basis and taking into account the exceptions to this accrual basis in accordance with the Financial Regulations and the Rules of Application of the Financial Regulations of the EUROCONTROL Agency.
Brussels, 11 June 2020,
S. CARTON G. COPPOLA E. KORČAGINS IRELAND ITALY LATVIA
(Not represented) K. HAUGEN B. WAKKERMAN
MALTA NORWAY NETHERLANDS
84
PwC Bedrijfsrevisoren BV - PwC Reviseurs d'Entreprises SRL - Financial Assurance Services Maatschappelijke zetel/Siège social: Woluwe Garden, Woluwedal 18, B-1932 Sint-Stevens-Woluwe T: +32 (0)2 710 4211, F: +32 (0)2 710 4299, www.pwc.com BTW/TVA BE 0429.501.944 / RPR Brussel - RPM Bruxelles / ING BE43 3101 3811 9501 - BIC BBRUBEBB / BELFIUS BE92 0689 0408 8123 - BIC GKCC BEBB
INDEPENDENT AUDITOR'S REPORT TO THE AUDIT BOARD OF EUROCONTROL ON THE FINANCIAL ACCOUNTS OF EUROCONTROL AGENCY FOR THE YEAR ENDED 31 DECEMBER 2020
By virtue of the agreement no 17-110054-C d.d. 25 August 2017 as amended d.d. 25 September 2019 and in line with the Statute of the Agency and with the Financial Regulations of the Agency, we report to you on the performance of our assignment as independent auditor.
Report on the audit of the financial accounts of Eurocontrol Agency
Unqualified opinion
We have performed the audit of the financial accounts of Eurocontrol Agency, which comprises the statement of financial position as at 31 December 2020, the income statement, the statement of comprehensive income, the statement of cash flows and the statement of changes in equity for the year then ended, as well as notes to the financial accounts, including a summary of significant accounting policies and other explanatory information, which is characterised by a balance sheet total of EUR ’000’ 2.557.953 and a loss for the year of EUR ’000’ 75.130.
In our opinion, the financial accounts of Eurocontrol Agency give a true and fair view of Eurocontrol Agency’s financial position as at 31 December 2020, and of the results of its operations and its cash flows for the year then ended, in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB.
Basis for unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Belgium. Furthermore, we have applied the International Standards on Auditing (ISAs) as approved by the IAASB for the year ending as from 31 December 2020, which are not yet approved at the national level. Our responsibilities under those standards are further described in the “Independent auditor’s responsibilities for the audit of the financial accounts” section of our report. We have fulfilled our ethical responsibilities in accordance with the ethical requirements that are relevant to our audit of the financial accounts of Eurocontrol Agency, including the requirements related to independence.
We have obtained from the Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance the explanations and information necessary for performing our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
PwC Bedrijfsrevisoren BV - PwC Reviseurs d'Entreprises SRL - Financial Assurance Services Maatschappelijke zetel/Siège social: Woluwe Garden, Woluwedal 18, B-1932 Sint-Stevens-Woluwe T: +32 (0)2 710 4211, F: +32 (0)2 710 4299, www.pwc.com BTW/TVA BE 0429.501.944 / RPR Brussel - RPM Bruxelles / ING BE43 3101 3811 9501 - BIC BBRUBEBB / BELFIUS BE92 0689 0408 8123 - BIC GKCC BEBB
INDEPENDENT AUDITOR'S REPORT TO THE AUDIT BOARD OF EUROCONTROL ON THE FINANCIAL ACCOUNTS OF EUROCONTROL AGENCY FOR THE YEAR ENDED 31 DECEMBER 2020
By virtue of the agreement no 17-110054-C d.d. 25 August 2017 as amended d.d. 25 September 2019 and in line with the Statute of the Agency and with the Financial Regulations of the Agency, we report to you on the performance of our assignment as independent auditor.
Report on the audit of the financial accounts of Eurocontrol Agency
Unqualified opinion
We have performed the audit of the financial accounts of Eurocontrol Agency, which comprises the statement of financial position as at 31 December 2020, the income statement, the statement of comprehensive income, the statement of cash flows and the statement of changes in equity for the year then ended, as well as notes to the financial accounts, including a summary of significant accounting policies and other explanatory information, which is characterised by a balance sheet total of EUR ’000’ 2.557.953 and a loss for the year of EUR ’000’ 75.130.
In our opinion, the financial accounts of Eurocontrol Agency give a true and fair view of Eurocontrol Agency’s financial position as at 31 December 2020, and of the results of its operations and its cash flows for the year then ended, in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB.
Basis for unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Belgium. Furthermore, we have applied the International Standards on Auditing (ISAs) as approved by the IAASB for the year ending as from 31 December 2020, which are not yet approved at the national level. Our responsibilities under those standards are further described in the “Independent auditor’s responsibilities for the audit of the financial accounts” section of our report. We have fulfilled our ethical responsibilities in accordance with the ethical requirements that are relevant to our audit of the financial accounts of Eurocontrol Agency, including the requirements related to independence.
We have obtained from the Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance the explanations and information necessary for performing our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
85
Responsibilities of the Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance
The Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance are responsible for the preparation of financial accounts that give a true and fair view in accordance with IFRS as issued by the IASB, and for such internal control as the Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance determine is necessary to enable the preparation of financial accounts that are free from material misstatement, whether due to fraud or error.
In preparing the financial accounts, the Head of Accounting and Treasury, Chief accountant and Director Central Route Charges Office and Finance are responsible for assessing Eurocontrol Agency’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Head of Accounting and Treasury, Chief accountant and Director Central Route Charges Office and Finance either intend to liquidate Eurocontrol Agency or to cease operations, or has no realistic alternative but to do so.
Independent auditor’s responsibilities for the audit of the financial accounts
Our objectives are to obtain reasonable assurance about whether the financial accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial accounts.
An audit does not provide any assurance as to the Eurocontrol Agency’s future viability nor as to the efficiency or effectiveness of the Head of Accounting and Treasury, Chief accountant and Director Central Route Charges Office and Finance's current or future business management. Our responsibilities in respect of the use of the going concern basis of accounting by the Head of Accounting and Treasury, Chief accountant and Director Central Route Charges Office and Finance are described below.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial accounts, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of Eurocontrol Agency’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the Head of Accounting and Treasury, Chiefaccountant and the Director Central Route Charges Office and Finance.
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
PwC Bedrijfsrevisoren BV - PwC Reviseurs d'Entreprises SRL - Financial Assurance Services Maatschappelijke zetel/Siège social: Woluwe Garden, Woluwedal 18, B-1932 Sint-Stevens-Woluwe T: +32 (0)2 710 4211, F: +32 (0)2 710 4299, www.pwc.com BTW/TVA BE 0429.501.944 / RPR Brussel - RPM Bruxelles / ING BE43 3101 3811 9501 - BIC BBRUBEBB / BELFIUS BE92 0689 0408 8123 - BIC GKCC BEBB
INDEPENDENT AUDITOR'S REPORT TO THE AUDIT BOARD OF EUROCONTROL ON THE FINANCIAL ACCOUNTS OF EUROCONTROL AGENCY FOR THE YEAR ENDED 31 DECEMBER 2020
By virtue of the agreement no 17-110054-C d.d. 25 August 2017 as amended d.d. 25 September 2019 and in line with the Statute of the Agency and with the Financial Regulations of the Agency, we report to you on the performance of our assignment as independent auditor.
Report on the audit of the financial accounts of Eurocontrol Agency
Unqualified opinion
We have performed the audit of the financial accounts of Eurocontrol Agency, which comprises the statement of financial position as at 31 December 2020, the income statement, the statement of comprehensive income, the statement of cash flows and the statement of changes in equity for the year then ended, as well as notes to the financial accounts, including a summary of significant accounting policies and other explanatory information, which is characterised by a balance sheet total of EUR ’000’ 2.557.953 and a loss for the year of EUR ’000’ 75.130.
In our opinion, the financial accounts of Eurocontrol Agency give a true and fair view of Eurocontrol Agency’s financial position as at 31 December 2020, and of the results of its operations and its cash flows for the year then ended, in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB.
Basis for unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Belgium. Furthermore, we have applied the International Standards on Auditing (ISAs) as approved by the IAASB for the year ending as from 31 December 2020, which are not yet approved at the national level. Our responsibilities under those standards are further described in the “Independent auditor’s responsibilities for the audit of the financial accounts” section of our report. We have fulfilled our ethical responsibilities in accordance with the ethical requirements that are relevant to our audit of the financial accounts of Eurocontrol Agency, including the requirements related to independence.
We have obtained from the Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance the explanations and information necessary for performing our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
86
• Conclude on the appropriateness of the Head of Accounting and Treasury, Chief accountantand Director Central Route Charges Office and Finance’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on Eurocontrol Agency’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are requiredto draw attention in our auditor’s report to the related disclosures in the financial accounts or, ifsuch disclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor’s report. However, future events or conditionsmay cause Eurocontrol Agency to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial accounts, including thedisclosures, and whether the financial accounts represent the underlying transactions andevents in a manner that achieves fair presentation.
• Obtain sufficient and appropriate audit evidence regarding the financial information of theentities or business activities within Eurocontrol Agency to express an opinion on the financialaccounts. We are responsible for the direction, supervision and performance of theEurocontrol Agency audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Board, the Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Limitation of use
This report is intended solely for the use of the Audit Board of Eurocontrol Agency to whom it is addressed, and then only for the purpose set out in the Statute of the Agency and Financial Regulations applicable to Eurocontrol Agency, and may not be provided to any third party without our prior written consent. We will not accept any responsibility or liability for damages to any third party to whom our report may be provided or into whose hands it may come.
Sint-Stevens-Woluwe, 11 June 2021
The registered auditor PwC Bedrijfsrevisoren BV Represented by
Romain Seffer Réviseur d’Entreprises
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
PwC Bedrijfsrevisoren BV - PwC Reviseurs d'Entreprises SRL - Financial Assurance Services Maatschappelijke zetel/Siège social: Woluwe Garden, Woluwedal 18, B-1932 Sint-Stevens-Woluwe T: +32 (0)2 710 4211, F: +32 (0)2 710 4299, www.pwc.com BTW/TVA BE 0429.501.944 / RPR Brussel - RPM Bruxelles / ING BE43 3101 3811 9501 - BIC BBRUBEBB / BELFIUS BE92 0689 0408 8123 - BIC GKCC BEBB
INDEPENDENT AUDITOR'S REPORT TO THE AUDIT BOARD OF EUROCONTROL ON THE FINANCIAL ACCOUNTS OF EUROCONTROL AGENCY FOR THE YEAR ENDED 31 DECEMBER 2020
By virtue of the agreement no 17-110054-C d.d. 25 August 2017 as amended d.d. 25 September 2019 and in line with the Statute of the Agency and with the Financial Regulations of the Agency, we report to you on the performance of our assignment as independent auditor.
Report on the audit of the financial accounts of Eurocontrol Agency
Unqualified opinion
We have performed the audit of the financial accounts of Eurocontrol Agency, which comprises the statement of financial position as at 31 December 2020, the income statement, the statement of comprehensive income, the statement of cash flows and the statement of changes in equity for the year then ended, as well as notes to the financial accounts, including a summary of significant accounting policies and other explanatory information, which is characterised by a balance sheet total of EUR ’000’ 2.557.953 and a loss for the year of EUR ’000’ 75.130.
In our opinion, the financial accounts of Eurocontrol Agency give a true and fair view of Eurocontrol Agency’s financial position as at 31 December 2020, and of the results of its operations and its cash flows for the year then ended, in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB.
Basis for unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Belgium. Furthermore, we have applied the International Standards on Auditing (ISAs) as approved by the IAASB for the year ending as from 31 December 2020, which are not yet approved at the national level. Our responsibilities under those standards are further described in the “Independent auditor’s responsibilities for the audit of the financial accounts” section of our report. We have fulfilled our ethical responsibilities in accordance with the ethical requirements that are relevant to our audit of the financial accounts of Eurocontrol Agency, including the requirements related to independence.
We have obtained from the Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance the explanations and information necessary for performing our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
Limitation of use
This report is intended solely for the use of the Audit Board of Eurocontrol Agency to whom it is addressed, and then only for the purpose set out in the Statute of the Agency and Financial Regulations applicable to Eurocontrol Agency, and may not be provided to any third party without our prior written consent. We will not accept any responsibility or liability for damages to any third party to whom our report may be provided or into whose hands it may come.
Sint-Stevens-Woluwe, 11 June 2021
The registered auditor PwC Bedrijfsrevisoren BV Represented by
Romain Seffer Réviseur d’Entreprises
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
87
PwC Bedrijfsrevisoren BV - PwC Reviseurs d'Entreprises SRL - Financial Assurance Services Maatschappelijke zetel/Siège social: Woluwe Garden, Woluwedal 18, B-1932 Sint-Stevens-Woluwe T: +32 (0)2 710 4211, F: +32 (0)2 710 4299, www.pwc.com BTW/TVA BE 0429.501.944 / RPR Brussel - RPM Bruxelles / ING BE43 3101 3811 9501 - BIC BBRUBEBB / BELFIUS BE92 0689 0408 8123 - BIC GKCC BEBB
INDEPENDENT AUDITOR'S REPORT TO THE AUDIT BOARD OF EUROCONTROL ON THE BUDGETARY ACCOUNTS OF EUROCONTROL AGENCY FOR THE YEAR ENDED 31 DECEMBER 2020
By virtue of the agreement no 17-110054-C d.d. 25 August 2017 as amended d.d. 25 September 2019 and in line with the Statute of the Agency and with the Financial Regulations of the Agency, we report to you on the performance of our assignment as independent auditor.
Report on the audit of the budgetary accounts of Eurocontrol Agency
Unqualified opinion
We have performed the audit of the budgetary accounts of Eurocontrol Agency, which comprises the following parts:
principles governing the Budgetary Accounts; Part I - activities financed by 41 Member States characterised by a total operating expenditure
outturn of EUR 176.850.844; Part IX - activities financed by 41 Member States characterised by a total operating expenditure
outturn of EUR 269.669.195; Part II - Central Route Charges Office characterised by a total operating expenditure outturn of
EUR 23.390.965; Part III - Maastricht Upper Area Control characterised by a total operating expenditure outturn
EUR 208.572.145,41; Part IV - Special Annexes characterised by a total operating expenditure outturn of
EUR 28.549.124,50; Part V - Sickness benefit scheme characterised by a total operating expenditure outturn of
EUR 12.001.582,71; and Part VII - Unemployment benefit scheme: Temporary social allowances characterised by a total
operating expenditure outturn of EUR 111.808,56
and which are prepared in accordance with the Financial Regulations and the Rules of Application of the Financial Regulations of the Agency.
In our opinion, the budgetary accounts of Eurocontrol Agency have been prepared in all material respects in accordance with the accrual basis and taking into account the exceptions to this accrual basis in accordance with the Financial Regulations and the Rules of Application of the Financial Regulations of the Eurocontrol Agency.
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
PwC Bedrijfsrevisoren BV - PwC Reviseurs d'Entreprises SRL - Financial Assurance Services Maatschappelijke zetel/Siège social: Woluwe Garden, Woluwedal 18, B-1932 Sint-Stevens-Woluwe T: +32 (0)2 710 4211, F: +32 (0)2 710 4299, www.pwc.com BTW/TVA BE 0429.501.944 / RPR Brussel - RPM Bruxelles / ING BE43 3101 3811 9501 - BIC BBRUBEBB / BELFIUS BE92 0689 0408 8123 - BIC GKCC BEBB
INDEPENDENT AUDITOR'S REPORT TO THE AUDIT BOARD OF EUROCONTROL ON THE FINANCIAL ACCOUNTS OF EUROCONTROL AGENCY FOR THE YEAR ENDED 31 DECEMBER 2020
By virtue of the agreement no 17-110054-C d.d. 25 August 2017 as amended d.d. 25 September 2019 and in line with the Statute of the Agency and with the Financial Regulations of the Agency, we report to you on the performance of our assignment as independent auditor.
Report on the audit of the financial accounts of Eurocontrol Agency
Unqualified opinion
We have performed the audit of the financial accounts of Eurocontrol Agency, which comprises the statement of financial position as at 31 December 2020, the income statement, the statement of comprehensive income, the statement of cash flows and the statement of changes in equity for the year then ended, as well as notes to the financial accounts, including a summary of significant accounting policies and other explanatory information, which is characterised by a balance sheet total of EUR ’000’ 2.557.953 and a loss for the year of EUR ’000’ 75.130.
In our opinion, the financial accounts of Eurocontrol Agency give a true and fair view of Eurocontrol Agency’s financial position as at 31 December 2020, and of the results of its operations and its cash flows for the year then ended, in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB.
Basis for unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Belgium. Furthermore, we have applied the International Standards on Auditing (ISAs) as approved by the IAASB for the year ending as from 31 December 2020, which are not yet approved at the national level. Our responsibilities under those standards are further described in the “Independent auditor’s responsibilities for the audit of the financial accounts” section of our report. We have fulfilled our ethical responsibilities in accordance with the ethical requirements that are relevant to our audit of the financial accounts of Eurocontrol Agency, including the requirements related to independence.
We have obtained from the Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance the explanations and information necessary for performing our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
88
Basis for unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Belgium. Furthermore, we have applied the International Standards on Auditing (ISAs) as approved by the IAASB for the year ending as from 31 December 2020, which are not yet approved at the national level. Our responsibilities under those standards are further described in the “Independent auditor’s responsibilities for the audit of the budgetary accounts” section of our report. We have fulfilled our ethical responsibilities in accordance with the ethical requirements that are relevant to our audit of the budgetary accounts of Eurocontrol Agency, including the requirements related to independence.
We have obtained from the Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance the explanations and information necessary for performing our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of the Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance for the budgetary accounts
The Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance are responsible for the preparation of budgetary accounts that have been prepared in all material respects in accordance with the Financial Regulations and the Rules of Application of the Financial Regulations of the Agency, and for such internal control as the Head of Accounting and Treasury and the Director Central Route Charges Office and Finance determine is necessary to enable the preparation of the budgetary accounts that are free from material misstatement, whether due to fraud or error.
In preparing the budgetary accounts, the Head of Accounting and Treasury, Chief accountant and Director Central Route Charges Office and Finance are responsible for assessing Eurocontrol Agency’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Head of Accounting and Treasury, Chief accountant and Director Central Route Charges Office and Finance either intend to liquidate Eurocontrol Agency or to cease operations, or has no realistic alternative but to do so.
Independent auditor’s responsibilities for the audit of the budgetary accounts
Our objectives are to obtain reasonable assurance about whether the budgetary accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these budgetary accounts.
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
PwC Bedrijfsrevisoren BV - PwC Reviseurs d'Entreprises SRL - Financial Assurance Services Maatschappelijke zetel/Siège social: Woluwe Garden, Woluwedal 18, B-1932 Sint-Stevens-Woluwe T: +32 (0)2 710 4211, F: +32 (0)2 710 4299, www.pwc.com BTW/TVA BE 0429.501.944 / RPR Brussel - RPM Bruxelles / ING BE43 3101 3811 9501 - BIC BBRUBEBB / BELFIUS BE92 0689 0408 8123 - BIC GKCC BEBB
INDEPENDENT AUDITOR'S REPORT TO THE AUDIT BOARD OF EUROCONTROL ON THE FINANCIAL ACCOUNTS OF EUROCONTROL AGENCY FOR THE YEAR ENDED 31 DECEMBER 2020
By virtue of the agreement no 17-110054-C d.d. 25 August 2017 as amended d.d. 25 September 2019 and in line with the Statute of the Agency and with the Financial Regulations of the Agency, we report to you on the performance of our assignment as independent auditor.
Report on the audit of the financial accounts of Eurocontrol Agency
Unqualified opinion
We have performed the audit of the financial accounts of Eurocontrol Agency, which comprises the statement of financial position as at 31 December 2020, the income statement, the statement of comprehensive income, the statement of cash flows and the statement of changes in equity for the year then ended, as well as notes to the financial accounts, including a summary of significant accounting policies and other explanatory information, which is characterised by a balance sheet total of EUR ’000’ 2.557.953 and a loss for the year of EUR ’000’ 75.130.
In our opinion, the financial accounts of Eurocontrol Agency give a true and fair view of Eurocontrol Agency’s financial position as at 31 December 2020, and of the results of its operations and its cash flows for the year then ended, in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB.
Basis for unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Belgium. Furthermore, we have applied the International Standards on Auditing (ISAs) as approved by the IAASB for the year ending as from 31 December 2020, which are not yet approved at the national level. Our responsibilities under those standards are further described in the “Independent auditor’s responsibilities for the audit of the financial accounts” section of our report. We have fulfilled our ethical responsibilities in accordance with the ethical requirements that are relevant to our audit of the financial accounts of Eurocontrol Agency, including the requirements related to independence.
We have obtained from the Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance the explanations and information necessary for performing our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
89
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the budgetary accounts, whether dueto fraud or error, design and perform audit procedures responsive to those risks, and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk ofnot detecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of Eurocontrol Agency’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the Head of Accounting and Treasury, Chiefaccountant and the Director Central Route Charges Office and Finance.
• Conclude on the appropriateness of the Head of Accounting and Treasury, Chief accountantand Director Central Route Charges Office and Finance’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on Eurocontrol Agency’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are requiredto draw attention in our auditor’s report to the related disclosures in the budgetary accounts or, ifsuch disclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor’s report. However, future events or conditionsmay cause Eurocontrol Agency to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the budgetary accounts, including thedisclosures, and whether the budgetary accounts represent the underlying transactions andevents in a manner that complies in all material respects with the accrual basis and taking intoaccount the exceptions to this accrual basis in accordance with the Financial Regulations andthe Rules of Application of the Financial Regulations of the Eurocontrol Agency.
• Obtain sufficient and appropriate audit evidence regarding the financial information of theentities or business activities within Eurocontrol Agency to express an opinion on the budgetaryaccounts. We are responsible for the direction, supervision and performance of theEurocontrol Agency audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Board, the Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
PwC Bedrijfsrevisoren BV - PwC Reviseurs d'Entreprises SRL - Financial Assurance Services Maatschappelijke zetel/Siège social: Woluwe Garden, Woluwedal 18, B-1932 Sint-Stevens-Woluwe T: +32 (0)2 710 4211, F: +32 (0)2 710 4299, www.pwc.com BTW/TVA BE 0429.501.944 / RPR Brussel - RPM Bruxelles / ING BE43 3101 3811 9501 - BIC BBRUBEBB / BELFIUS BE92 0689 0408 8123 - BIC GKCC BEBB
INDEPENDENT AUDITOR'S REPORT TO THE AUDIT BOARD OF EUROCONTROL ON THE FINANCIAL ACCOUNTS OF EUROCONTROL AGENCY FOR THE YEAR ENDED 31 DECEMBER 2020
By virtue of the agreement no 17-110054-C d.d. 25 August 2017 as amended d.d. 25 September 2019 and in line with the Statute of the Agency and with the Financial Regulations of the Agency, we report to you on the performance of our assignment as independent auditor.
Report on the audit of the financial accounts of Eurocontrol Agency
Unqualified opinion
We have performed the audit of the financial accounts of Eurocontrol Agency, which comprises the statement of financial position as at 31 December 2020, the income statement, the statement of comprehensive income, the statement of cash flows and the statement of changes in equity for the year then ended, as well as notes to the financial accounts, including a summary of significant accounting policies and other explanatory information, which is characterised by a balance sheet total of EUR ’000’ 2.557.953 and a loss for the year of EUR ’000’ 75.130.
In our opinion, the financial accounts of Eurocontrol Agency give a true and fair view of Eurocontrol Agency’s financial position as at 31 December 2020, and of the results of its operations and its cash flows for the year then ended, in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB.
Basis for unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Belgium. Furthermore, we have applied the International Standards on Auditing (ISAs) as approved by the IAASB for the year ending as from 31 December 2020, which are not yet approved at the national level. Our responsibilities under those standards are further described in the “Independent auditor’s responsibilities for the audit of the financial accounts” section of our report. We have fulfilled our ethical responsibilities in accordance with the ethical requirements that are relevant to our audit of the financial accounts of Eurocontrol Agency, including the requirements related to independence.
We have obtained from the Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance the explanations and information necessary for performing our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
90
Limitation of use
This report is intended solely for the use of the Audit Board of Eurocontrol Agency to whom it is addressed, and then only for the purpose set out in the Statute of the Agency and Financial Regulations applicable to Eurocontrol Agency, and may not be provided to any third party without our prior written consent. We will not accept any responsibility or liability for damages to any third party to whom our report may be provided or into whose hands it may come.
Sint-Stevens-Woluwe, 11 June 2021
The registered auditor PwC Bedrijfsrevisoren BV Represented by
Romain Seffer Réviseur d’Entreprises
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
PwC Bedrijfsrevisoren BV - PwC Reviseurs d'Entreprises SRL - Financial Assurance Services Maatschappelijke zetel/Siège social: Woluwe Garden, Woluwedal 18, B-1932 Sint-Stevens-Woluwe T: +32 (0)2 710 4211, F: +32 (0)2 710 4299, www.pwc.com BTW/TVA BE 0429.501.944 / RPR Brussel - RPM Bruxelles / ING BE43 3101 3811 9501 - BIC BBRUBEBB / BELFIUS BE92 0689 0408 8123 - BIC GKCC BEBB
INDEPENDENT AUDITOR'S REPORT TO THE AUDIT BOARD OF EUROCONTROL ON THE FINANCIAL ACCOUNTS OF EUROCONTROL AGENCY FOR THE YEAR ENDED 31 DECEMBER 2020
By virtue of the agreement no 17-110054-C d.d. 25 August 2017 as amended d.d. 25 September 2019 and in line with the Statute of the Agency and with the Financial Regulations of the Agency, we report to you on the performance of our assignment as independent auditor.
Report on the audit of the financial accounts of Eurocontrol Agency
Unqualified opinion
We have performed the audit of the financial accounts of Eurocontrol Agency, which comprises the statement of financial position as at 31 December 2020, the income statement, the statement of comprehensive income, the statement of cash flows and the statement of changes in equity for the year then ended, as well as notes to the financial accounts, including a summary of significant accounting policies and other explanatory information, which is characterised by a balance sheet total of EUR ’000’ 2.557.953 and a loss for the year of EUR ’000’ 75.130.
In our opinion, the financial accounts of Eurocontrol Agency give a true and fair view of Eurocontrol Agency’s financial position as at 31 December 2020, and of the results of its operations and its cash flows for the year then ended, in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB.
Basis for unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Belgium. Furthermore, we have applied the International Standards on Auditing (ISAs) as approved by the IAASB for the year ending as from 31 December 2020, which are not yet approved at the national level. Our responsibilities under those standards are further described in the “Independent auditor’s responsibilities for the audit of the financial accounts” section of our report. We have fulfilled our ethical responsibilities in accordance with the ethical requirements that are relevant to our audit of the financial accounts of Eurocontrol Agency, including the requirements related to independence.
We have obtained from the Head of Accounting and Treasury, Chief accountant and the Director Central Route Charges Office and Finance the explanations and information necessary for performing our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
Limitation of use
This report is intended solely for the use of the Audit Board of Eurocontrol Agency to whom it is addressed, and then only for the purpose set out in the Statute of the Agency and Financial Regulations applicable to Eurocontrol Agency, and may not be provided to any third party without our prior written consent. We will not accept any responsibility or liability for damages to any third party to whom our report may be provided or into whose hands it may come.
Sint-Stevens-Woluwe, 11 June 2021
The registered auditor PwC Bedrijfsrevisoren BV Represented by
Romain Seffer Réviseur d’Entreprises
DocuSign Envelope ID: 6CAA403C-0D19-4483-AE8E-29308896734F
91
© EUROCONTROL - June 2021This document is published by EUROCONTROL for information purposes. It may be copied in whole or in part, provided that EUROCONTROL is mentioned as the source and it is not used for commercial purposes (i.e. for financial gain). The information in this document may not be modified without prior written permission from EUROCONTROL.
www.eurocontrol.int
SUPPORTING EUROPEAN AVIATION
