HANSA_ANSP Financial Oversight V2.0

7/30/2019 HANSA_ANSP Financial Oversight V2.0

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ABSTRACT

Document Title HANSA ANSPs Financial Oversight Process

Document Context HANSA Process regarding ANSPs Financial Oversight

QM Book

QM SectionDocument Identification

Edition - Revision Second edition

Date of Edition - Revision 12 April 2012

Authorship HANSA

Document Owner HANSA

Class Public

Status Released Issue

Available in Microsoft Word

Document Approval M. Panagiotopoulos (HANSA Director)


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TABLE OF CONTENTS

ABSTRACT............................................................................................................................................. 1

1 INTRODUCTION.............................................................................................................................. 3

1.1 PURPOSE.................................................................................................................................... 31.2 INTENDED AUDIENCE ................................................................................................................... 31.3 DOCUMENT STRUCTURE .............................................................................................................. 3

2 SCOPE............................................................................................................................................. 3

3 CONTEXT ........................................................................................................................................ 4

3.1 MISSION STATEMENT................................................................................................................... 43.2 OVERALL VIEW............................................................................................................................ 4

3.3 RELATION TO OTHER PROCESSES................................................................................................. 43.4 TERMINOLOGY ............................................................................................................................ 53.5 ROLES ...................................................................................................................................... 19

4 FINANCIAL OVERSIGHT PROCEDURES ................................................................................... 20

4.1 TRIGGERS................................................................................................................................. 204.2 ACTIVITIES-STEPS..................................................................................................................... 20

4.2.1 AREAS OF OVERSIGHT............................................................................................................ 204.2.2 FINANCIAL AUDITINGPROCEDURE.......................................................................................... 21

4.2.3 INITIAL FINANCIAL OVERSIGHTOFANS PROVIDERSPROCEDURE........................................... 234.2.4 ON-GOINGFINANCIAL OVERSIGHTOFANS PROVIDERSPROCEDURE..................................... 23

REFERENCE DOCUMENTS ................................................................................................................ 25

ABBREVIATIONS................................................................................................................................. 27

DOCUMENT CHANGE RECORD ........................................................................................................ 28

ANNEX 1FINANCIAL OVERSIGHT PROCEDURE ............................................................................ 29ANNEX 2

COMPLIANCE CHECKLISTS

ON ANSP FINANCIAL REQUIREMENTS.......................... 30

EC 2096/2005 COMPLIANCE CHECKLIST....................................................................... 30


NATIONAL REQUIREMENTS COMPLIANCE CHECKLIST............................................. 52



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3 CONTEXT

3.1 Mission Statement

The mission of the process in respect of oversight is to verify the financial strength2

andtransparency of the Air Navigation Services provider. This is achieved, by monitoring theaccounts of air navigation services, and verifying requirements like transparency ofaccounts, compliance with the charging scheme and financial strength in line with the550/2004 & 1070/2009, EC regulation 1191/2011, 691/2011,1035/2011 regulations.

3.2 Overall View

The objectives, rules, procedures and requirements contained in this document take into considerationthe national legislation of Greece, the provisions of the ICAO Convention and the relevant Annexes tothe Convention, the EU Single European Sky (SES) regulations and other relevant EU legislation, andEUROCONTROL Requirements and associated advisory and/or guidance material.

The Financial oversight is part of the supervision of SES/SES II requirements applicable to thesupervision of ANS.

The Hellenic Air Navigation National Supervisory Authority (HANSA) is responsible for supervising theimplementation of requirements applicable to the provision of ATM/ANS .

The Human Resources & Financial Section of the HANSA reports to the Head of HANSA and isresponsible for the financial oversight of the ANSPs, according to the respective and appropriatenational law and regulations, following this process.

At present, the Air Navigation Service Providers in Greece are:

The Air Navigation General Directorate, comprising the Hellenic Air Navigation Service Provider(HANSP), according to national law 3913/2011

The Hellenic National Meteorological Service (HNMS) for ANS MET services

The Civil Aviation Training Centre for Air Navigation Training

While the ANSPs are responsible for the Sustainability of their services and are obliged to haveeffective finances in place, and the HANSA Human Resources & Financial Section is responsible forthe financial oversight of the ANSPs, cooperation between the service providers and the HANSA is aprerequisite for an effective oversight.

This procedure is applicable to HANSA.

3.3 Relation to other processes

There is no sticto sensu relationship with other oversight processes applied by NSAs (e.g. Safety) butthe calendar of oversights, audits or inspections shall be aligned.


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3.4 Terminology

AIP Aeronautical Information Publication.

air navigationserviceproviders

means any public or private entity providing air navigation services for general airtraffic;

air navigationservices

means air traffic services; communication, navigation and surveillance services;meteorological services for air navigation; and aeronautical information services

air traffic flowmanagement

means a function established with the objective of contributing to a safe, orderlyand expeditious flow of air traffic by ensuring that ATC capacity is utilised to themaximum extent possible, and that the traffic volume is compatible with the

capacities declared by the appropriate air traffic service providersair trafficservices

means the various flight information services, alerting services, air traffic advisoryservices and ATC services (area, approach and aerodrome control services)

airspace block Is an airspace of defined dimensions, in space and time, within which ATM/ANSare provided.

means an airspace of defined dimensions, in space and time, within which airnavigation services are provided

airspace

management

means a planning function with the primary objective of maximising the utilisation

of available airspace by dynamic time-sharing and, at times, the segregation ofairspace among various categories of airspace users on the basis of short-termneeds

airspace user means all aircraft operated as general air traffic;

airspace usersrepresentative

any legal person or entity representing the interests of one or several categories ofusers of air navigation services;

annual plan,or any other

similarequivalentdocument

in respect of the Financial Processes shall cover the following provisions on thelevel and quality of service such as the expected level of capacity, safety and

delays to flights incurred as well as on financial arrangements:a. information on the implementation of new infrastructure or other

developments and a statement how they will contribute to improving the leveland quality of services;

b. indicators of performance against which the level and quality of service maybe reasonably assessed;

c. the service providers expected short-term financial position as well as anychanges to or impacts on the business plan.

The ANSP shall be able to provide an annual report or any other similar documentof its activities to the relevant national supervisory authority. The report shall coverits financial results without prejudice to Article 12 of Regulation (EC) No 550/2004,as well as its operational performance and any other significant activities anddevelopments.

The annual report shall include as a minimum:

t f th l l d lit f i t d d f th l l f


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information about the human resources policy, taking into account the nationallegislation about public employees.

ANS Air Navigation Services

ANSP air navigation service provider shall be understood to include an organisationhaving applied for a certificate to provide such services

applicablefinancialregulatoryrequirements

The requirements for the provision of ATM services, applicable to the specificsituation under consideration, and established through the existing rulemakingframework, concerning, inter alia

(a) Technical and operational competence and suitability to provide ATM services;

(b) Systems and processes for financial management;

(c) Technical systems, their constituents and associated procedures.

assessment An evaluation based on engineering, operational judgement and/or analysismethods.

assets do notbelong to theair navigationservice

provider

assets included in the calculation of the cost of capital where Member States shallensure that the costs of these assets are not recovered twice.

ATC service Air Traffic Control service

(a) means a service provided for the purpose of: preventing collisions:

between aircraft, and

in the manoeuvring area between aircraft and obstructions

(b) expediting and maintaining an orderly flow of air traffic; and

ATFM Air Traffic Flow Management.

ATM Air Traffic Management, means the aggregation of the airborne and ground-basedfunctions (air traffic services (ATS), airspace management (ASM) and air trafficflow management (ATFM)) required to ensure the safe and efficient movement ofaircraft during all phases of operations;

ATM MasterPlan

means the plan endorsed by Council Decision 2009/320/EC, in accordance withArticle 1(2) of Council Regulation (EC) No 219/2007 of 27 February 2007 on theestablishment of a Joint Undertaking to develop the new generation European airtraffic management system (SESAR)

ATM service a service for the purpose of ATM.

ATM serviceprovider

an organisation designated to provide ATM service(s).

ATM system the part of the ANS system composed of a ground based ATM component and anairborne ATM component. The ATM system includes human, technical systemsand procedures, and assumes the existence of a supporting CNS system.

ATS Air Traffic Services A generic term meaning variously flight information service


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Certificate means a document issued by a Member State in any form complying with nationallaw, which confirms that an air navigation service provider meets the requirementsfor providing a specific service

charges,collection of Member States shall ensure that airspace users representatives are consulted onthe charging policy on a regular basis. To this end, they shall provide them with thenecessary information on their charging mechanism as set out in Annex VI (EC)No 1794/2006, or where a Member State has taken the decision referred to inArticle 1(6) (EC) No 1794/2006, with the necessary information as set out in AnnexIII, part 2,(EC) No 1794/2006 and shall organise an effective and transparentconsultation hearing to present this information as well as the information referredto in Article 8 (EC) No 1794/2006, in the presence of the air navigation serviceproviders involved. Without prejudice to Article 18(EC) No 1794/2006 of theservice provision Regulation, the relevant documentation shall be put at thedisposal of airspace users representatives, the Commission, Eurocontrol andnational supervisory authorities three weeks before the consultation hearing.

Chargingmechanism,transparencyof the

Member States shall ensure that airspace users representatives are consulted onthe charging policy on a regular basis. To this end, they shall provide them with thenecessary information on their charging mechanism as set out in Annex VI (EC)No 1794/2006, or where a Member State has taken the decision referred to inArticle 1(6) (EC) No 1794/2006, with the necessary information as set out in Annex

III, part 2,(EC) No 1794/2006 and shall organise an effective and transparentconsultation hearing to present this information as well as the information referredto in Article 8 (EC) No 1794/2006, in the presence of the air navigation serviceproviders involved. Without prejudice to Article 18(EC) No 1794/2006 of theservice provision Regulation, the relevant documentation shall be put at thedisposal of airspace users representatives, the Commission, Eurocontrol andnational supervisory authorities three weeks before the consultation hearing.

Charging

Scheme

The Charging Scheme is developed to contribute to the achievement of greater

transparency with respect to the determination, imposition and enforcement ofcharges to airspace users, consultation on the cost bases and on the allocation ofthe costs among different services.

This scheme shall also be consistent with Article 15 of the 1944 ChicagoConvention on International Civil Aviation and with Eurocontrol charging system foren route charges.

When establishing charges for air navigation services the Commission andMember States should endeavour to use common forecasts. Some flexibilityshould be permitted in those cases where traffic diverges significantly fromforecasts, in particular by using appropriate alert mechanisms. Is scheme thatreflects the costs incurred either directly or indirectly in the provision of airnavigation services. When establishing charges for air navigation services theCommission and Member States should endeavour to use common forecasts.Some flexibility should be permitted in those cases where traffic divergessignificantly from forecasts, in particular by using appropriate alert mechanisms.


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ChargingScheme,review ofcharges

1. The Commission shall provide for the ongoing review of compliance with theprinciples and rules referred to in Articles 14 and 15 (EC) 550/2004, acting incooperation with the Member States. The Commission shall endeavour toestablish the necessary mechanisms for making use of Eurocontrol expertise.

2. At the request of one or more Member States which consider that theabovementioned principles and rules have not been properly applied, or on itsown initiative, the Commission shall carry out an investigation on anyallegation of non-compliance or non-application of the principles and/ or rulesconcerned. Within two months of receipt of a request, after having heard theMember State concerned and after consulting the Single Sky Committee inaccordance with the procedure referred to in Article 5(2) of the frameworkRegulation, the Commission shall take a decision on the application ofArticles 14 and 15 (EC) 550/2004 and as to whether the practice concernedmay continue.

3. The Commission shall address its decision to the Member States and informthe service provider thereof, in so far as it is legally concerned. Any MemberState may refer the Commissions decision to the Council within one month.The Council, acting by a qualified majority, may take a different decisionwithin a period of one month.

ChargingScheme,principles

When establishing charges for air navigation services the Commission andMember States should endeavour to use common forecasts. Some flexibilityshould be permitted in those cases where traffic diverges significantly fromforecasts, in particular by using appropriate alert mechanisms (EC 1191/2010,691/2010):

1. Shall be based on the account of costs for air navigation services incurred byservice providers for the benefit of airspace users. The scheme shall allocate

these costs among categories of users.2. The following principles shall be applied when establishing the cost-base for

charges:

(a) the cost to be shared among airspace users shall be the full cost ofproviding air navigation services, including appropriate amounts forinterest on capital investment and depreciation of assets, as well as thecosts of maintenance, operation, management and administration;

(b) the costs to be taken into account in this context shall be those assessedin relation to the facilities and services provided for and implementedunder the ICAO Regional Air Navigation Plan, European Region. Theymay also include costs incurred by national supervisory authorities and/orrecognised organisations, as well as other costs incurred by the relevantMember State and service provider in relation to the provision of airnavigation services;

(c) the cost of different air navigation services shall be identified separately,


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Member States shall comply with the following principles when settingcharges in accordance with paragraph 2:

(a) charges shall be set for the availability of air navigation services undernon-discriminatory conditions. When imposing charges on different

airspace users for the use of the same service, no distinction shall bemade in relation to the nationality or category of the user;

(b) exemption of certain users, especially light aircraft and State aircraft, maybe permitted, provided that the cost of such exemption is not passed on toother users;

(c) air navigation services may produce sufficient revenues to exceed alldirect and indirect operating costs and to provide for a reasonable returnon assets to contribute towards necessary capital improvements;

(d) charges shall reflect the cost of air navigation services and facilities madeavailable to airspace users, taking into account the relative productivecapacities of the different aircraft types concerned;

(e) charges shall encourage the safe, efficient and effective provision of airnavigation services with a view to a high level of safety and to costefficiency and shall stimulate integrated service provision. To that effect,such charges may be used to provide:

mechanisms, including incentives consisting of financial advantagesand disadvantages, to encourage air navigation service providersand/or airspace users to support improvements in air traffic flowmanagement such as increased capacity and reduction of delays,while maintaining an optimum safety level. The decision as towhether to apply such mechanisms remains the sole responsibility ofeach Member State,

revenues to benefit projects designed to assist specific categories ofairspace users and/or air navigation service providers in order toimprove collective air navigation infrastructures, the provision of air

navigation services and the use of airspace.4. The implementing rules in the fields covered by paragraphs 1, 2 and 3 shall

be established in accordance with the procedure referred to in Article 8 of theframework Regulation.

Chargingzones

zones that shall be defined in a manner consistent with air traffic control operationsand services, after consultation of airspace users representatives

Chargingzones extendacross theairspace

zones that extend across the airspace of more than one Member State where theMember States concerned shall make the appropriate arrangements to ensureconsistency and uniformity in the application of this Regulation to the airspaceconcerned. They shall notify the Commission and Eurocontrol thereof.

Chargingzones,establishmentof

Member States shall establish charging zones in the airspace falling under theirresponsibility where air navigation services are provided to airspace users.


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Commonprojects

In order to complete the creation of the single European sky, it is necessary aconcept of common projects, aimed at assisting airspace users and/or airnavigation service providers to improve collective air navigation infrastructure, theprovision of air navigation services and the use of airspace, in particular those that

may be required for the implementation of the ATM Master Plan, should notprejudice pre-existing projects decided by one or several Member States withsimilar objectives. National supervisory authorities have a key role to play in theimplementation of the single European sky and the Commission should thereforefacilitate cooperation among them in order to enable the exchange of bestpractices and to develop a common approach, including through enhancedcooperation at regional level. This cooperation should take place on a regularbasis. In particular where common projects are deployed, care should be taken,inter alia, through the application of comprehensive and transparent accounting, to

ensure that airspace users are not double-charged. Common projects should bedeployed to the benefit of all stakeholders and should ensure equal treatmentthereof.

Competenceand capability,technical andoperational

An air navigation service provider shall be able to provide services in a safe,efficient, continuous and sustainable manner consistent with any reasonable levelof overall demand for a given airspace. To this end, it shall maintain adequatetechnical and operational capacity and expertise.

Compliance,

financial,demonstrationof

The air navigation service provider shall provide all the relevant evidence to

demonstrate financial compliance with the applicable common requirements andmay make full use of existing data. The ANSP shall notify the national supervisoryauthority of planned changes to its provision of services If certified air navigationservice provider does not comply any longer with the applicable common financialrequirements than the competent national supervisory authority shall take adecision within a time period not exceeding one month. By this decision, thenational supervisory authority shall require the air navigation service provider totake corrective action.

Compliance,

financial,ongoing

The HANSA shall, on the basis of the evidence at its disposal, monitor annually the

ongoing financial compliance of the air navigation service providers taking intoaccount the national economic situation and the national legislation established forthe financing of the public sector (Nation Law 4025/2011). To this end, the HANSAshall establish and update annually an indicative inspection programme coveringall the providers it has certified and based on an assessment of the risksassociated with the different operations constituting the services provided. It shallconsult the air navigation service providers concerned as well as any othernational supervisory authority concerned, if appropriate, before establishing such aprogramme The programme shall indicate the envisaged interval of the inspections

of the different sites.

constituents a document issued by a Member State in any form complying with national law,which confirms that an ATM service provider meets the requirements for providinga specific service.

cost of capital shall be equal to the product of:

(a) the sum of the average net book value of fixed assets used by the air


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economicalstrength

an air navigation service provider shall be able to meet its financial obligations,such as fixed and variable costs of operation or capital investment costs. It shalluse an appropriate cost accounting system according to the national accountingsystem. It shall demonstrate its ability through the annual plan as well as through

balance sheets and accounts as practicable under its legal statute.

In accordance with article 12(2) of Regulation (EC) No 550/2004, an air navigationservice provider shall demonstrate that it is undergoing an independent audit on aregular basis.

En routecharging zone

means a volume of airspace for which a single cost base and a single unit rate areestablished;

shall extend from the ground up to, and including, upper airspace without prejudiceto the possibility for a Member State to establish a specific zone for a complex

terminal area after consultation with airspace users representatives

En routeservices,costs of

is the cost that shall be financed by means of en route charges imposed on theusers of air navigation services

ESIMS ESARR Implementation Monitoring and Support Programme

FAB Functional Airspace Block; an airspace block based on operational requirementsand established regardless of State boundaries, where the provision of air

navigation services and related functions are performance-driven and optimisedwith a view to introducing, in each functional airspace block, enhanced cooperationamong air navigation service providers or, where appropriate, an integratedprovider;

The FABs are key enablers for enhancing cooperation between air navigationservice providers in order to improve performance and create synergies.

Member States should establish functional airspace blocks within a reasonabletime-frame. For that purpose and in order to optimise the interface of functionalairspace blocks in the single European sky, the Member States concerned should

cooperate with each other and where appropriate they should also cooperate withthird countries. In view of the creation of functional airspace blocks and the settingup of the performance scheme, the Commission should determine and take intoaccount the necessary conditions for the Community to create a Single EuropeanFlight Information Region (SEFIR), to be requested by the Member States from theICAO in accordance with both the established procedures of that organisation andthe rights, obligations and responsibilities of Member States under the Conventionon International Civil Aviation, signed in Chicago on 7 December 1944 (theChicago Convention). By encompassing the airspace under the responsibility of

the Member States, the SEFIR should facilitate common planning and integratedoperations in order to overcome regional bottlenecks. Such a SEFIR shouldinclude the necessary flexibility to reflect specific needs such as traffic density andthe level of complexity required.

Facilitation ofcompliance

it i

Air navigation service providers shall facilitate inspections and surveys by thenational supervisory authority or by a recognised organisation acting on the lattersb h lf i l di it i it Th th i d b th b di h ll b


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appeal procedure.

Financialperformanceplans

shall:

(i) be based on the NATIONAL PERFORMANCE PLANS according to ECRegulation 691/2010

(ii) include binding performance targets consistent with the Community-wideperformance targets;

Financial audit In accordance with article 12(2) of Regulation (EC) No 550/2004, an air navigationservice provider shall demonstrate that it is undergoing an independent audit on aregular basis according to the national legislation.

Financialcorrective

action

a financial action to eliminate the cause of a detected non-conformity and orfinancial instability or other financial undesirable situation.

Financialoversight oncommonprojectcharges

through the application of comprehensive and transparent accounting, it isnecessary to ensure that airspace users are not double-charged. Commonprojects should be deployed to the benefit of all stakeholders and should ensureequal treatment thereof.

Financialperformance

scheme,procedures

collection, validation, examination, evaluation and dissemination of relevant datarelated

Financialprocesses,common rules

shall include the following:

technical and operational competence and suitability,

systems and processes for safety and quality management,

reporting systems,

quality of services,

financial strength,

liability and insurance cover where applicable by national law,

ownership and organisational structure, including the prevention of conflicts ofinterest,

human resources, including adequate staffing plans taking into account thenational legislation and national directives for the public sector.

security.

Financial

regulatoryaudit

A systematic and independent examination conducted by, or on behalf of, a

National Supervisory Authority to determine whether complete financial-relatedarrangements or elements thereof, to processes and their results, products orservices, comply with required financial related arrangements and whether theyare implemented effectively and are suitable to achieve expected results.

Financialregulatory

The function undertaken by a designated authority to verify that financial regulatoryobjectives and requirements are effectively met.


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Financingcommonprojects

The concept of common projects, aimed at assisting airspace users and/or airnavigation service providers to improve collective air navigation infrastructure, theprovision of air navigation services and the use of airspace, in particular those thatmay be required for the implementation of the ATM Master Plan, should not

prejudice pre-existing projects decided by one or several Member States withsimilar objectives.

The provisions on financing of the deployment of common projects should notprejudge the manner in which these common projects are set up.

The Commission may propose that funding, such as Trans-European Network orEuropean Investment Bank funding, may be used in support of common projects,in particular to speed up the deployment of the SESAR programme, within themulti annual financial framework.

Without prejudice to access to that funding, Member States should be free todecide how revenues generated by the auctioning of aviation sector allowancesunder the Emissions Trading Scheme are to be used and to consider in thiscontext whether a share of such revenues might be used to finance commonprojects at the level of functional airspace blocks.(EC) 1070/2009

Functionalsystem

shall mean a combination of systems, procedures and human resources organisedto perform a function within the context of ATM;

GAT General Air Traffic, All movements of civil aircraft, as well as all movements ofState aircraft (including military, customs and police aircraft) when those

movements are carried out in conformity with the International Civil AviationOrganisation (ICAO).

Generalaviation

Shall mean any civil aircraft operation other than commercial air transport or aerialwork

IFR Instrument flight rules

Incentivescheme, applyon air

navigationserviceproviders

It shall set in advance the conditions for determining the maximum level of the unitrate or of the revenue for each year over a period not exceeding five years.

These conditions shall be set with reference to the projected level of costs(including the cost of capital) over the period and may also stipulate financialmodulations (either above or below the expected costs) based on particularaspects of the air navigation service providers performance which may includeefficiency, quality of service, the performance of particular projects, milestones orcompetencies or a level of cooperation with other air navigation service providersin view of taking into account network effects.

Incentivescheme,

applyingincludingnight-timemodulations

in respect of users of air navigation services, it shall, following the consultationreferred to in Article 15 (EC) No 1794/2006 , modulate charges incurred by them in

order to reflect efforts made by these users to optimise the use of air navigationservices, to reduce the overall costs of these services and to increase theirefficiency, in particular by decreasing charges according to airborne equipmentthat increases capacity or to offsetting the inconvenience of choosing lesscongested routings.

Incentiveschemes

Member States may establish or approve incentive schemes consisting of financialadvantages or disadvantages applied on a non-discriminatory and transparent


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liability andinsurancecover

An air navigation service provider shall have in place arrangements to coverits liabilities arising from applicable law. The method employed to providethe cover shall be appropriate to the potential loss and damage in question,taking into account the legal status of the air navigation service provider and

the level of commercial insurance cover available.An air navigation service provider which avails itself of services of anotherair navigation service provider shall ensure that the agreements cover theallocation of liability between them.

NSA 1. Member States shall, jointly or individually, either nominate or establish abody or bodies as their national supervisory authority in order to assume thetasks assigned to such authority under this Regulation and under themeasures referred to in Article 3. (EC) 1070/2009

2. The national supervisory authorities shall be independent of air navigationservice providers. This independence shall be achieved through adequateseparation, at the functional level at least, between the national supervisoryauthorities and such providers.

3. National supervisory authorities shall exercise their powers impartially,independently and transparently. This shall be achieved by applyingappropriate management and control mechanisms, including within theadministration ofa Member State. However, this shall not prevent the nationalsupervisory authorities from exercising their tasks within the rules of

organisation of national civil aviation authorities or any other public bodies.4. Member States shall ensure that national supervisory authorities have the

necessary resources and capabilities to carry out the tasks assigned to themunder this Regulation in an efficient and timely manner.

5. Member States shall notify the Commission of the names and addresses ofthe national supervisory authorities, as well as changes thereto, and of themeasures taken to ensure compliance with paragraphs 2, 3 and 4.

The HANSA shall organise proper inspections and surveys to verify compliance

with the requirements of this Regulation. In respect of functional airspace blocksthat extend across the airspace falling under the responsibility of more than oneMember State, the Member States concerned shall conclude an agreement on thesupervision provided for in this Article 2 EC 550/2004 with regard to the airnavigation service providers providing services relating to those blocks. MemberStates may conclude an agreement on the supervision provided for in this Articlewith regard to the air navigation service provider providing services in a MemberState other than that in which the provider has its principal place of operation.

National supervisory authorities shall make appropriate arrangements for close

cooperation with each other to ensure adequate supervision of air navigationservice providers holding a valid certificate from one Member State that alsoprovide services relating to the airspace falling under the responsibility of anotherMember State. Such cooperation shall include arrangements for the handling ofcases involving non-compliance with the applicable common requirements set outin Article 6 (EC) 550/2004 or conditions set out in Annex II. (EC) 550/2004.

They shall ensure the appropriate supervision of the application of this Regulation


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National supervisory authorities should have the flexibility to reflect specificnational or regional circumstances when formulating their national and regionalplans. When approving or adopting national plans, Member States should beentitled to make appropriate modifications. The national supervisory authorities

should take appropriate measures to ensure a high level of safety including thepossibility of issuing an individual certificate for each type of air navigation service,while respecting the need for cost-efficiency and consistency and avoidingduplication.

Open and

transparentprovision ofservices

An air navigation service provider shall provide its services in an open and

transparent manner. It shall publish the conditions of access to its services andestablish a formal consultation process with the users of its services on a regularbasis, either individually or collectively, and at least once a year.

An air navigation service provider shall not discriminate on grounds of nationalityor identity of the user or the class of users in accordance with applicableCommunity law. In addition to the provision of Annex I, part 8.1 and where aMember State decides to organise the provision of specific ATS services in acompetitive environment, a Member State may take all appropriate measures toensure that providers of these specific air traffic services shall neither engage in

conduct that would have as its object or effect the prevention, restriction ordistortion of competition, nor shall they engage in conduct that amounts to anabuse of a dominant position in accordance with applicable national andCommunity law.

Operatingorganisation

shall mean an organisation responsible for the provision of engineering andtechnical services supporting air traffic, communication, navigation or surveillanceservices

Organisationalmanagement

An air navigation service provider shall produce a business plan or any othersimilar and official document referred in national legislation covering a minimum

period of five years. The business plan shall:

(a) set out the overall aims and goals of the air navigation service provider and itsstrategy towards achieving them in consistency with any overall longer termplan of the provider and with relevant Community requirements relevant forthe development of infrastructure or other technology;

(b) contain appropriate performance objectives in terms of quality and level ofservice, safety and cost-effectiveness.

An air navigation service provider shall produce an annual plan covering the

forthcoming year which shall specify further the features of the business plan anddescribe any changes to it. The annual plan shall cover the following provisions onthe level and quality of service such as the expected level of capacity, safety anddelays to flights incurred as well as on financial arrangements:

(a) information on the implementation of new infrastructure or otherdevelopments and a statement how they will contribute to improving the level

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Organisationalstructure

An air navigation service provider shall set up and manage its organisationaccording to a structure that supports the safe, efficient and continuous provisionof services. The organisational structure shall define:

(a) the authority, duties and responsibilities of the nominated post holders, in

particular of the management personnel in charge of safety, quality, security,finance and human resources related functions;

(b) the relationship and reporting lines between different parts and processes ofthe organisation.

ownership A provider of air traffic services shall make explicit to the national supervisoryauthority referred to in Article 7(2) of Regulation (EC) No 550/2004:

its legal status, its ownership structure and any arrangements having asignificant impact on the control over its assets,

any links with organisations not involved in the provision of air navigationservices, including commercial activities in which it is engaged either directlyor through related undertakings, which account for more than 1 % of itsexpected revenue. Furthermore, it shall notify any change of any singleshareholding which represents 10 % or more of its total shareholding.

A provider of air traffic services shall take all necessary measures to prevent anysituation of conflict of interests that could compromise the impartial and objectiveprovision of its services.

process A set of interrelated or interacting activities which transforms inputs into outputs.regulation The adoption, enactment and implementation of rules for the achievement of

stated objectives by those to whom the regulatory process applies.

reportingrequirements

An air navigation service provider shall be able to provide an annual report of itsactivities to the relevant national supervisory authority. This report shall cover itsfinancial results without prejudice to Article 12 of Regulation (EC) No 550/2004, aswell as its operational performance and any other significant activities anddevelopments in particular in the area of safety.

The annual report shall include as a minimum: an assessment of the level and quality of service generated and of the level of

safety provided,

the performance of the air navigation service provider compared to theperformance objectives established in the business plan, reconciling actualperformance against the annual plan by using the indicators of performanceestablished in the annual plan,

developments in operations and infrastructure,

the financial results, as long as they are not separately published inaccordance with Article 12(1) of Regulation (EC) No 550/2004,

information about the formal consultation process with the users of itsservices,

information about the human resources policy.

The air navigation service provider shall make the content of the annual report


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5. Member States may apply the transitional provisions of Article 9 of Regulation(EC) No 1606/2002 of the European Parliament and of the Council of 19 July2002 on the application of international accounting standards (1) to airnavigation service providers that fall within the scope of that regulation.

transparencyof thechargingmechanism

Member States shall ensure that airspace users representatives are consulted onthe charging policy on a regular basis. To this end, they shall provide them with thenecessary information on their charging mechanism as set out in Annex VI (EC)No 1794/2006, or where a Member State has taken the decision referred to inArticle 1(6) (EC) No 1794/2006, with the necessary information as set out in AnnexIII, part 2,(EC) No 1794/2006 and shall organise an effective and transparentconsultation hearing to present this information as well as the information referredto in Article 8 (EC) No 1794/2006, in the presence of the air navigation serviceproviders involved. Without prejudice to Article 18(EC) No 1794/2006 of the

service provision Regulation, the relevant documentation shall be put at thedisposal of airspace users representatives, the Commission, Eurocontrol andnational supervisory authorities three weeks before the consultation hearing.

transparencyof the costbase

Without prejudice to Article 18 (EC) No 1794/2006 of the service provisionRegulation, Member States and/or air navigation service providers shall organisean exchange of information on cost bases, planned investments and expectedtraffic with airspace users representatives if the latter so request. Subsequently,they shall make their respective costs established in accordance with Article 5(EC) No 1794/2006 available in a transparent manner to airspace usersrepresentatives, the Commission and, where applicable Eurocontrol at least on anannual basis.

This information shall be based on the reporting tables and detailed rules set out inAnnex II of (EC) No 1794/2006 or, where a Member State has taken the decisionreferred to in Article 1(6) (EC) No 1794/2006, or has indicated to the Commissionthat it is considering taking such a decision, in Annex III part 1 of (EC) No1794/2006.

user of airnavigationservices

mean the operator of the aircraft at the time when the flight was performed or, ifthe identity of the operator is not known, the owner of the aircraft, unless he provesthat another person was the operator at that time

verification Confirmation through the provision of objective evidence that specifiedrequirements have been fulfilled.

VFR Visual Flight Rules

3.5 Roles

Parties involved Description of the Role Allocated Staff

HANSA andauditing team

Financial oversight of the ANSP Finance SectionStaff


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4 FINANCIAL OVERSIGHT PROCEDURES

4.1 Triggers

1. HANSAs Annual Plan

2. Notifications by the ANSP regarding changes in their systems which haveimpact to their financial domain

3. Ad hoc requests by the Ministry or HCAA Governor

4.2 Activities-Steps

4.2.1 AREAS OF OVERSIGHT

The ANSPs oversight process covers the following ten (10) areas:

1. ANSPs Organisational Management (5-y Strategic Business and Annual Plans and their implementation);

2. ANSPs Financial Strength (Economic and financial capacity, Financial audit).

3. ANSPs Liability and Insurance Cover;

4. ANSPs reporting Requirements (to International and National Organisations on financial matters);

5. ANSPs Ownership;6. ANSPs Transparency of accounts (ANSPs transparency on day to day financial transactions,

Commitments, revenues);

7. ANSPs investment plans, budget and their execution;

8. ANSP goods procurement;

9. ANSPs proper use of available enablers (available software tools and databases);

10. Laying down a common charging scheme for air navigation services (ANSPs Charging Methodology andlink to the EC Regulation on Service Charging Scheme);

The first 5 areas are linked to the EC Regulation No 2096/2005 of 20 December 2005 laying downcommon requirements for the provision of air navigation services; the 6 to EC Regulation No 550/2004of 10 March 2004 on the provision of air navigation services in the Single European Sky; 7, 8, 9 toNational Legislation and Ministerial decisions (Organisation of HANSA and their responsibilities) and10 to the regulation No 1794/2006 of 6 December 2006 laying down a common charging scheme forair navigation services.

Requirements for each of those areas are mentioned in Annex 2. This annex represents a check list of

financial auditing process of an ANSP. It is subject to regular or ad hoc updates depending on new ECRegulations, National Legislation or Internal HCAA or Ministerial decisions.


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4.2.2 FINANCIAL AUDITING PROCEDURE

4.2.2.1 Financial audits:

a. Applied but not limited to, complete arrangements or elements thereof, to financial

processes, or to cost services;b. Verify compliance of:

Written processes and other established arrangements against required proceduresand other required arrangements, and/or

Actual processes and their results against written procedures and other establishedarrangements;

c. Focus special attention on financial processes;

d. May involve HANSA financial inspections when applicable.

4.2.2.2 The scope of a specific audit does not necessarily have to involve a whole organisation andcan be confined to a particular facility or area of functional relevance.

4.2.2.3 Auditors shall only be responsible for identifying the need for corrective action. The auditeeshall be responsible for determining and initiating the corrective actions needed to correctnon-compliances or to remove the cause of non-compliances.

4.2.2.4 The audits shall:

a. Provide the HANSA with evidences of compliance with applicable economic andfinancial requirements and related arrangements.

b. Identify the need for improvement or corrective action;

c. Be undertaken under the managerial responsibility and overall control of the HANSAindependently of the internal auditing activities undertaken by ANSPs as part of theirfinancial management arrangements;

d. Be conducted by qualified auditors of the financial section in accordance with theassociated requirements as indicated hereafter;

e. Be used to determine the complianceor non-complianceof:

i. Established arrangements against required arrangements;

ii. The implemented arrangements and their results against the establishedarrangements and their expected results;

f. Provide the auditee with an opportunity to correct non-compliances and improve thefinancial of the area under consideration.

4.2.2.5 The process of an financial audit/inspection includes:

a. Forwarding, in reasonable time, formal notification of intention to perform the audit to theservice provider involved including identification of subjects for the audit.

b. Performing pre-audit activities including verification of the agenda, listing of informationthat needs to be available before commencing the audit and specification of the criteriabeing audited against


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4.2.2.6 Audit/inspection observations and identified non-conformities shall be documented,supported by evidence, and identified in terms of the applicable financial requirements orrelated arrangements against which the audit/inspection has been conducted.

4.2.2.7 An audit/inspection report, including the details of the non-compliances, shall be forwarded

to the designated point of responsibility within the HANSA.

4.2.2.8 Corrective actions and subsequent follow-up audits/inspections shall be completed within atime period agreed by the HANSA.

4.2.2.9 The HANSA shall establish an annual programme of financial audits that addresses eachand all provider organisations under the jurisdiction of the HANSA and targets all thedifferent ANSP services. The programme shall:

a. Cover all the areas of potential financial concern;

b. Focus, but not exclusively, on those areas where problems have been identified as aresult of monitoring financial performance;

c. Conduct audits to address all the ANSPs and the different ATM services operatingunder their responsibility;

d. Conduct sufficient audits, at least once every two years, to check the compliance of allANSPs under their responsibility with applicable financial requirements in all thefunctional areas of relevance; and

e. Follow up the implementation of corrective actions intended to address non-conformitiesfound in previous audits.

4.2.2.10 The programme shall be designed to allow for the modification of the objectives of pre-planned audits and the inclusion of additional audits to those originally programmed,wherever that need is identified in the financial oversight activities of the ANSP.

4.2.2.11 The number of audits conducted will normally be related, amongst several aspects, to thesize of the organisation, its complexity and number of facilities and the financial criticality ofits activities.

4.2.2.12 The programme shall be reviewed and updated at least annually.

4.2.2.13 The HANSA shall keep, or maintain access to, the appropriate records related to its financialoversight processes, including the reports of all financial audits and other financial relatedrecords related to acceptance of major changes.

4.2.2.14 The Human Resources and Financial oversight section as directed by the HANSA, every twoyears produce, and/or update and forward to the HANSA a draft assessment of the humanresources needed to perform its financial oversight functions, based on the analysis of theprocesses required and their sequence and interaction, and their application throughout the

organisation. The assessment shall also compare the results of its financial activities with theactual staffing levels of the section.

In assisting the HANSA in its responsibility for ensuring that all persons involved infinancial oversight activities are competent to perform the required functions, theHANSA shall define and document the education, training, technical and/or operationalknowledge, experience and qualifications relevant to the duties of its position involved in


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4.2.3 INITIAL FINANCIAL OVERSIGHT OF ANS PROVIDERS PROCEDURE

4.2.3.1 The objective of this procedure is to assure that the initial financial oversight3

is carried out inan effective and rational manner.

4.2.3.2 This procedure applies to all ANSPs delivering services in the airspace for which Greece isresponsible for provision of ANS.

4.2.3.3 The process of initial financial oversight will in principle take form of financial audits.

4.2.3.4 Appropriately coordinated with the ANS provider, the HANSA will carry out the processes ofthe initial financial oversight.

4.2.3.5 Clear identification of the requirements to be met shall be made, and an early definition andplanning of all financial oversight activities shall be coordinated with the ATM serviceprovider in question.

4.2.3.6 Any financial process initially proposed by an ANS provider shall be subjected to initialfinancial Oversight to assure that it is compliant with associated requirements whenimplemented in accordance with applicable requirements.

4.2.3.7 Each financial process shall be systematically documented in a manner, which provides aclear linkage to the organisations financial policy. The ANSP shall document processes andarrangements in consistency with the financial policies and strategies set out by theorganisation.

4.2.3.8 The auditee shall provide sufficient documentary evidence of requirement compliance to theHANSA to enable it to conduct the oversight.

4.2.3.9 The financial documented system should identify procedures to assess and introduce anyproposed change and/or modification. The HANSA shall review and accept theseprocedures when appropriate as part of the financial documented system.

4.2.3.10 The oversight should be conducted in successive steps, following a top-down approachstarting at the policy level, to ease a phased implementation and provide useful feedback tothe provider.

4.2.3.11 The ANSPs organisation shall be subject to the review of the financial related aspectscovering:

All staff;

All equipment and infrastructure;

All procedures.

4.2.4 ON-GOING FINANCIAL OVERSIGHT OF ANS PROVIDERS PROCEDURE

4.2.4.1 The objective of this procedure is to assure that the on-going financial oversight4

is carriedout in an effective and rational manner.

4.2.4.2 This procedure applies to all ANSPs delivering services in the airspace for which Greece isresponsible for provision of services.

4.2.4.3 By use of the reporting mechanism, by which data concerning the services are obtained, andother information provided to the HANSA by the ANSPs and by the users of the services or


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4.2.4.5 When regulatory objectives and requirements are not being complied with, or wheresuccessful compliance cannot be expected, the HANSA may need to initiate further steps,which include:

Placing restrictions on the service provided or, in the extreme, withdrawing the

permission or approval to provide the service; Imposition of further punitive measures as dictated by the situation.

4.2.4.6 Appropriately coordinated with the ATM service provider, the financial section will carry outthe processes of the on-going financial oversight. The specific contents and nature of thereview will be determined by the financial section based on an evaluation of the requiredrange and intensity of the processes.

4.2.4.7 When the financial section has established that the financial processes of an ANSP doesfunction properly and to its full intent, approval of the financial processes may substitute for

the full process of overseeing all elements of the service providers organisation.

4.2.4.8 Early definition and planning of all regulatory activities shall be coordinated with the ATMservice provider in question.

4.2.4.9 The full range of an on-going financial oversight of an financial process includes thefollowing:

The auditee shall demonstrate that the financial process is documented in a manner,which provides a clear linkage to the organisations financial policy. The ANSP shalldocument processes and arrangements in consistency with the financial policies andstrategies set out by the organisation;

The auditee shall provide sufficient documentary evidence of requirement compliancewith the financial processes, and of the effectiveness of the financial processes toenable the HANSA to conduct the oversight;

An essential element of an acceptable financial process is the documentation of thedivision of responsibilities and of the arrangements and processes of the ANSP. Thedocumented system could normally be presented in a financial opeartions manualderived from a financial policy;

The financial oversight of the ANSP should not confine itself to assessing a documentedsystem on paper. Verification of compliance with financial requirement concerns notonly the complete documented system including written policies, arrangements andprocesses, but also their effective implementation by the organisation.

4.2.4.10 The following elements of an ATM service providers organisation will be subjected to the on-going financial oversight:

All staff;

All equipment and infrastructure;

All procedures.


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REFERENCE DOCUMENTS

[1] HANSP 5-y Strategic Business plan

[2] Report on the ESARR Implementation Monitoring and Support Programme, Greece (ESIMS)

[3] HCAA Air Navigation Department Electronics Division Quality Policy & Management, developed byEUROCONTROL and E4 of HCAA

[4] Local Single European Sky Implementation (LSSIP), most recent released Issue

[5] ESARR 1 Regulation on National ATM Framework, by EUROCONTROL

[6] EAM 3/GUI 1 ESARR 3 Guidance to ATM Regulators Explanatory Material on ESARR 3Requirements, issued by EUROCONTROL

[7] EAM 3/GUI 2 ESARR 3 Guidance to ATM Regulators ...... Regulatory Aspects of the ESARR 3Implementation in Small Organisations, issued by EUROCONTROL

[8] EAM 3/GUI 3 ESARR 3 Guidance to ATM. Regulators ESARR 3 and Related ...... Oversight, issuedby EUROCONTROL

[9] SRC Policy Doc 3, EUROCONTROL

[10] ICAO Convention

[11] ICAO Convention, Annexes 1, 11 and 14

[12] ESARR 3 Use of Safety Management Systems by ATM Services Providers, issued byEUROCONTROL

[13] ESARR 2 Safety Regulatory Requirements: Reporting and Assessment of ...... Occurrences in ATM,issued by EUROCONTROL

[14] ESARR 4 Risk Assessment and Mitigation in ATM, issued by EUROCONTROL

[15] ESARR 5 Safety Regulatory Requirements for ATM Services Providers, issued by EUROCONTROL

[16] ESARR 6 Safety Regulatory Requirements for Software ATM, issued by EUROCONTROL

[17] EAM 3/AMC Acceptable Means of Compliance with ESARR 3, issued by EUROCONTROL

[18] EAM 3/ICAO Consistency between ESARR 3 and ICAO SARPs, issued by EUROCONTROL

[19] Common Core Content issued by EUROCONTROL.

[20] REGULATION (EC) No 549/2004, The framework Regulation, 10 March 2004

[21] REGULATION (EC) No 550/2004, The service provision Regulation, 10 March 2004

[22] REGULATION (EC) No 551/2004, The airspace regulation, 10 March 2004

[23] REGULATION (EC) No 552/2004, The interoperability Regulation, 10 March 2004

[24] REGULATION (EC) No 2096/2005, Common Requirements for the provision of air navigationservices, 20 December 2005, as amended by EC 1035/2010

[25] REGULATION (EC) No 1794/2006, Common Charging scheme for air navigation services, 6


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[30] EASA Internal Working Procedure for Type Certification (TCP), issue 1, 20 December 2004

[31] EASA Internal Working Procedure for Certification support for Validation of EASA Certificates

in third countries (CSV) and test witnessing /conformity inspections, Issue 1, 23 August 2005.[32] ISO/IEC Guide 62:1996, General requirements for bodies operating assessment and

certification/registration of quality systems. First Edition, 1996

ISO/IEC Guide 66:1999, General requirements for bodies operating assessment andcertification/registration of environmental management systems. First Edition, 1999

[33] IAF Guidance on the Application of ISO/IEC Guide 66, Issue 2, December 2001

[34] EUROCONTROL EAM 1/GUI 1, Edition 1.0

[35] EUROCONTROL EAM 1/GUI 3, Edition 0.1[36] EUROCONTROL ESARR 2, Edition 2.0




[40] EUROCONTROL EAM 2/COD 1, Edition 3.0

[41] EUROCONTROL EAM2/COD 2, Edition 2.0[42] EUROCONTROL TOKAI User Manual, Edition 4

[43] EUROCONTROL EAM 4/GUI 1, Edition 1.1 (Draft)




[47] EUROCONTROL EAM 5/GUI 3, Edition 1.0[48] EUROCONTROL EAM 5/GUI 4, Edition 1.0

[49] EUROCONTROL EATMP Safety Policy, Edition 2.0

[50] EUROCONTROL EATMP Safety Policy: Implementation Guidance Material, Edition 1.2

[51] EUROCONTROL ESARR 6, Edition 1.0

[52] EUROCONTROL SRC POLICY DOC 1, Edition 1.0

[53] EUROCONTROL SRC POLICY DOC 3, Edition 1.0[54] EUROCONTROL SRC POLICY DOC 4, Edition 1.0

[55] EUROCONTROL Report on the ESARR Implementation Monitoring and Support (ESIMS)Programme, Greece

[56] EU Council Directive 94/56/EC, 21 November 1994


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ABBREVIATIONS

AAND Area Air Navigation Department

ACC Area Control Centre

AFIS Airport Flight Information Service

ANS Air Navigation Services

ANSP Air Navigation Service Provider

ATC Air Traffic Control

ATCO Air Traffic Controller

ATM Air Traffic ManagementATS Air Traffic Services

ATSEP Air Traffic Safety Engineering Personnel

DG Director General

EFQM European Foundation for Quality Management

FAA Federal Aviation Administration

GDAN General Director of Air Navigation

HANSA Hellenic Air Navigation Supervisory AuthorityHCAA Hellenic Civil Aviation Authority

HQ Headquarter

NSA National Supervisory Authority

SES Single European Sky

SLA Service Level Agreement

SMM Safety Management Manual

XMS Safety Management System


28/96

DOCUMENT CHANGE RECORD

Edition-Revision

Revision Date Pages/SectionsAffected

Remarks

1.0 15 Jan. 2010 All First edition

2.0 12 Apr. 2012 All Second edition


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Annex 1

Financial Oversight Procedure


30/96

Annex 2

COMPLIANCE CHECKLIST

ON ANSP FINANCIAL REQUIREMENTS


31/96

IntroductionThe attached tables include all financial requirements associated with the provision of ATS, MET,

AIS and CNS services.

The tables are related to the:

1. European Commission Regulation N 2096/2005 laying down Common requirements for theProvision of Air Navigation Services;

2. European Commission Regulation (EC) No 550/2004 of the European parliament and of thecouncil of 10 March 2004 on the provision of air navigation services in the single European sky;

3. European Commission Regulation (EC) No 1794/2006 of 6 December 2006 laying down acommon charging scheme for air navigation services; and also

4. National Legislation and associated ministerial decisions.

The follow tables provide:

in column A the number of article of associated regulation requirement

in column B the full text of the requirement

in column C the Key Elements driving the proposed assessment

in column D a list of Evidence that could be provided by the applicant

in column E a proposed way to assess the compliance

in column F three columns in which it should be stated if the requirement currently iscomplied with, on-going or not complied with at all.

in column G comments for actions needed should be included as applicable and the relevantdocument references should be included (e.g. where is the specific aspect of the CR covered bythe existing documentation?). For the NSA this could be a reference to a specific article in the

Legal Framework, an Air Navigation Order, an Air Information Circular, etc. For the ANSP thiscould be a reference to a manual, procedure, instruction, agreement, etc.

In this compliance checklist, the possibility for the HANSA to grant exceptions (derogations) fromdifferent requirements should not be considered.

Once the checklist is filled-in the answers will be discussed with the relevant parties in order for theteam performing the analysis to scope the work required to fulfil the requirements.


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HANSA Procedure Nr.: XX / ANSP Financial Oversight p. 32 of 96 Ed. 2.0: Date:12/04/12

File name: HANSA_ANSP Financial Oversight Process V2.02

Released Issue

HANSA Oversight check list on the financial domain

Compliance Checklist No 2096/2005: Common Requirements

F

Compliance

ANo.

BText of requirement

CKey Elements of CR

DEvidence

EHow to Assess the Evidence

Yes Ongoing

No

G

Actions needed

2.2 Organisationalmanagement

Organisational management

2.2 An air navigation serviceprovider shall produce a

business plan covering aminimum period of fiveyears. The business planshall:

Business plan which cover at least aperiod of five years

Business plan (or anyother document

covering the requiredcontent) that covers atleast a period of fiveyears.

Verify if a business plan that coversat least a period of five years exists.

.

2.2 (a) set out the overallaims and goals of theprovider and its strategytowards achieving themin consistency with anyoverall longer term plan

of the provider and withrelevant Communityrequirements relevant forthe development ofinfrastructure or othertechnology;

- Overall aims and goals

- Strategy towards achieving them inconsistency with any overall longerterm plan of the provider and withrelevant Community requirements

Existence of abusiness plan

Verify if the business plan covers:

- the ANSPs Vision, Mission andValues;

- a description of the BusinessContext that provides informationon the governing and managerial

framework the ANSP operates in;- the Business strategies;

- the long-term goals (5 years) andthe short term goals (1-2 years);

- the activities for the short termgoals It will be the basis of theAnnual Plan-;

- the human and financialresources and investments;

- the organisationalissues/structure;

- he development plans ofinfrastructure and technology (inaccordance with relevantCommunity and EUROCONTROLrequirements (e.g. EuropeanSingle Sky Implementation).

.


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Released Issue



FComplianceANo. BText of requirement CKey Elements of CR DEvidence EHow to Assess the Evidence

Yes Ongoing

No

GActions needed

2.2 (b) contain appropriateperformance objectivesin terms of quality andlevel of service, safetyand cost-effectiveness.

Appropriate performance objectives interms of

- quality and level of service,

- safety and

- cost-effectiveness.

The business plancontains performanceindicators

Verify if the business plan describesperformance objectives in terms of:

- quality and level of service,

- safety and

- cost-effectiveness.

2.2 An air navigation serviceprovider shall produce anannual plan covering theforthcoming year, whichshall specify further thefeatures of the businessplan and describe anychanges to it.

Annual plan that- Covers the forthcoming year

- Specifies further the business plan

- Describes any changes to thebusiness plan.

Annual plan Verify if the annual plan- covers the forthcoming year

- provides more detailedinformation that is in line with thebusiness plan for the forthcomingyear

- specifies any changes to thebusiness plan.

2.2 The annual plan shallcover the following

provisions on the leveland quality of servicesuch as the expectedlevel of capacity, safetyand delays to flightsincurred as well as onfinancial arrangements:

Annual plan that covers

- Provisions on the level of quality of

service (expected capacity, safetyand delays to flights incurred)

- Financial arrangements.

Annual plan See below

2.2 (a) information on theimplementation of newinfrastructure or otherdevelopments and astatement how they willcontribute to improvingthe level and quality ofservices;

- Provide information on the newinfrastructure or other developments

- Provide a statement saying howthey contribute to the quality ofservices.

Annual plan - Verify if the information providedin the annual plan with regard tothe new infrastructure or otherdevelopments is consistent withthe information provided in thebusiness plan.

- Verify whether the contribution ofthe new infrastructure or otherdevelopments on the quality ofservice is described.


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Released Issue



F

Compliance

ANo.


CKey Elements of CR

DEvidence


Yes Ongoing

No

G

Actions needed

2.2 (b) indicators ofperformance againstwhich the level andquality of service may bereasonably assessed;

- provide performance indicators toassess quality of service reasonably

Annual plan Verify that that Annual Plan covers

- performance target settings andcapacity plan

- predicted performance in terms ofsafety

- predicted performance in terms and

delays.

Verify if the performance indicators ofthe annual plan are consistent withthe performance objectives describedin the business plan.

2.2 (c) the service providersexpected short-termfinancial position as wellas any changes to or

impacts on the businessplan.

- the short- term expected financialposition

- any changes to or impacts on thebusiness plan

The annual planprovides information onthe expected short-term financial position

of the ANSP.

Verify if the annual plan providesinformation on the

- short-term expected financialposition

- links of implementation of newinfrastructure or otherdevelopments with human andfinancial resources andinvestments.

Verify if the information provided inthe annual plan is consistent withinformation provided in the 5-yearbusiness plan.

Verify if any changes to or impactson the business plan are described inthe annual plan.

3.2 (a) define the qualitypolicy in the perspectiveto meet the needs by thedifferent users as closelyas possible;

- Define the quality policy Quality policy Verify whether the quality policy hasbeen defined and covers the needsof the different users (clients,employees, suppliers...).


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Released Issue



F

Compliance

ANo.


CKey Elements of CR

DEvidence


Yes Ongoing

No

G

Actions needed

A I-6 FINANCIAL STRENGTH FINANCIAL STRENGTH

6.1 Economic and financialcapacity

Economic and financial capacity

6.1 An air navigation service

provider shall be able tomeet its financialobligations, such as fixedand variable costs ofoperation or capitalinvestment costs. It shalluse an appropriate costaccounting system. Itshall demonstrate itsability through the annualplan as referred to in part2.2. of this annex as well

as through balancesheets and accounts aspracticable under itslegal statute.

- Ability to meet financial obligations

- Appropriate cost accounting system- Demonstration by means of annual

plan, balance sheets and accountsas practicable under its legal status

- Balance sheets and

accounts- Annual plan

- Financial auditreport (as requiredby ANNEX I, 6.2Financial audit)

- Verify whether the compliance of

the balance sheets and accountswith IFRS has been confirmed byan independent auditor.

- If compliance is not achievedowing to the legal status of ANSPverify whether is explanationwhere is non-compliance andwhy.

- Verify that the process of financialaudit itself demonstrates that, inthe view of the auditor, thecompany is a going concern. Ifthis were not the case, the auditorwould be compelled to include astatement highlighting anyfinancial difficulties.

6.2 Financial audit Financial audit

6.2 In accordance with article12(2) of regulation (EC)No 550/2004, an airnavigation service

provider shalldemonstrate that it isundergoing anindependent audit on aregular basis.

- independent audit

- on a regular basis

- Audit report(s) - Verify whether an audit reportfrom the independent auditor inaccordance with article 12(2) ofRegulation (EC) No 550/2004

exists.- In case that the assessment is not

an initial oversight, verify whetheraudit reports exist documentingthat the audit has taken place ona regular basis.

A I-7 LIABILITY ANDINSURANCE COVER

LIABILITY AND INSURANCE COVER


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Released Issue



F

Compliance

ANo.


CKey Elements of CR

DEvidence


Yes Ongoing

No

G

Actions needed

7 An air navigation serviceprovider shall have inplace arrangements tocover its liabilities arisingfrom applicable law.

- The liabilities of the ANSP aredifficult to define in advance: theydepend on the applicable legalregime, which may changeaccording to the situation and statusof the ANSP as well as of the

potential damage. The internationalcharacter of the damages resultingfrom the provision of air navigationservices may involve thecompetence of foreign courts andapplicability of foreign laws.

- The ANSP should at least complywith the requirements of its nationallaw(s).

- Documentation ofthe arrangements tocover each ANSPsactivities

- Insurance contract

- Guarantee

letters/decisions bythe State - Bankguarantee

- Fund, etc.

- Verify if documentation exists thatprovides evidence forarrangements to cover theliabilities of an ANSP.

- Each document should specify theactivities concerned, the type of

damages covered, and theamount of the coverage.

- Verify if the arrangements tocover the liabilities are inaccordance with the applicablelaw.

- Define, where appropriate, aminimum level of insurancecoverage taking into account theState's interests (since the Stateremains ultimately liable for the

provision of air navigationservices over its territory.


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Released Issue



F

Compliance

ANo.


CKey Elements of CR

DEvidence


Yes Ongoing

No

G

Actions needed

7 The method employed toprovide the cover shallbe appropriate to thepotential loss anddamage in question,taking into account the

legal status of the serviceprovider and the level ofcommercial insurancecover available.

The level of insurance coverage willdepend on:

- the risks the insurance companieswill accept to cover: it seems thatwar and terrorism risks can beincluded in insurance policies but for

a high premium and a limitedcoverage (usually 50 milliondollars); however the insurancemarket is currently questioning thispossibility;

- the maximum liability the insurancecompanies accept to cover: themaximum amounts currently insuredare between 1.5 and 1.75 billiondollars, the average being around 1billion;

- the premiums the ANSPs canafford; the premiums are calculatedon a number of criteria such as thetype of activity (airport, ACC, enroute), the loss record and theaircraft movements; considering therelatively low number of insurersinvolved in the coverage of airnavigation services (15 to 20), theirjoint commitment is oftennecessary. This may result in theimpossibility to reach the requiredlevel of coverage and/or tonegotiate the premium offered.

- - the requirements set by theHANSA to protect the Statesfinancial interests according toChicago Convention with regard toadditional liabilities going beyondthe insurance coverage.

- Any documentationsupporting thedefinition of thelevel of insurancecoverage set in theinsurance contract

or guaranteeletters/decisions bythe state

- Verify if any calculation/estimationwith regard to the possible lossand damage exists (e.g. riskassessment).

- Assess if method employed isappropriate to cover potential loss

and damage, in accordance withapplicable law and requirementsset by the NSA,

- Take into account the legal statusof the ANSP and the level ofcommercial insurance coveravailable.


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Released Issue



F

Compliance

ANo.


CKey Elements of CR

DEvidence


Yes Ongoing

No

G

Actions needed

7 An air navigation serviceprovider which availsitself of services ofanother air navigationservice provider shallensure that the

agreements cover theallocation of liabilitybetween them.

- Agreements must be concludedbetween ANSPs whether thecooperation takes place within thesame State, or across two states,and whether they concern servicessubject to designation or not.

- Formal agreementconcerningallocation of liabilitybetween the twoANSPs

- Notification to the

NationalSupervisoryAuthority / iesconcerned for allservices

- Approval of theState(s) concernedin case of ATS orMET

- The HANSA will have to verifythat:

- the agreement exists and hasbeen concluded by competentrepresentatives of the ANSPs

- the agreement describes in

sufficient detail the servicesprovided and the allocation ofliability between the parties

- the HANSA has been notified andthat the State (in case of ATS orMET) has approved

- the ATSP or METSP to which theservice is delegated has beendesignated, Where the service isprovided cross-border, therespective NSAs shall conclude

cooperation arrangements toensure adequate supervision ofthe ANSPs (cf art. 2,4 SPR).Where the service is providedcross-border, the Statesconcerned may wish to concludeagreements in order to addressissues such as liability, accidentinvestigations, relations withmilitary, etc.

A I-9 REPORTINGREQUIREMENTS

REPORTING REQUIREMENTS

9 The annual report shallinclude as a minimum:

- Include as a minimum: - -

9 developments inoperations andinfrastructure;

- developments in operations andinfrastructure;

- annual report - Verify if the annual report coversthe developments in operationsand infrastructure.


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F

Compliance

ANo.


CKey Elements of CR

DEvidence


Yes Ongoing

No

G

Actions needed

A II-1 ANNEX II

SPECIFICREQUIREMENTS FORTHE PROVISION OFAIR TRAFFICSERVICES

OWNERSHIP

OWNERSHIP

1 A provider of air trafficservices shall makeexplicit to the nationalsupervisory authorityreferred to in Art. 7(2) ofRegulation (EC) No550/2004:

- Art. 7(2) of Regulation (EC) No550/2004 states:Applications for certification shall besubmitted to the nationalsupervisory authority of the MemberState where the applicant has itsprincipal place of operation and, ifany, its registered office.

1 - its legal status, its

ownership structureand anyarrangements havinga significant impact onthe control over itsassets.

- legal status

- ownership structure

- any arrangements having asignificant impact on the controlover its assets

- copy of company

registration (forprivatised orcorporatisedANSPs) or decreehaving created thepublic or semi-public ANSP

- Verify if valid documentation on

legal status and ownershipstructure is available.

- Verify if there are anyarrangements that have asignificant impact on the controlover the ANSPs assets.


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Compliance Checklist EC No 550/2004 on the provision of air navigation services in the single European sky (the service provision Regulation)

F

Compliance

A

No.

B

Text of requirement

C

Key Elements

D

Evidence

E

How to Assess the Evidence

Yes Yes Yes

G

Actions needed

12 TRANSPARENCY OFACCOUNTS

12.1 Air navigation serviceproviders, whatever their

system of ownership or legal

form, shall draw up, submit to

audit and publish theirfinancial accounts. Theseaccounts shall comply with

the international accounting

standards adopted by theCommunity. Where, owing to

the legal status of the service

provider, full compliance withthe international accounting

standards is not possible, the

provider shall endeavour toachieve such compliance to

the maximum possible extent

application of international

accounting standards to air

navigation service providers

that fall within the scopeof that regulation.

- ANSPs transparency on day today financial transactions oncommitments/expenditure andrevenues;

- Financial reporting in line withInternational AccountingStandards (IAS)

- Invoices records;

- accounts reports

- Cost and revenuestatements

- Balance Sheets

- Asking for an internal audit reportconcerning invoices, cost andrevenues statements as well asbalance sheets

12.2 In all cases, air navigationservice providers shall publish

an annual report and regularly

undergo an independent audit.

- Financial Annual report - Cost and revenuesstatements

- Balance Sheets

- Asking for an internal audit reportconcerning cost and revenuesstatements as well as balancesheets

12.3 When providing a bundle ofservices, air navigation

service providers shall, in

their internal accounting,

identify

the relevant costs and income

for air navigation services,

broken down in accordance

- Cost Base calculations;

- Financial reporting Tables

- Most recent CRCOReporting Tables;

- Reporting to EC on En-rout and TerminalCharges


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Released Issue


Compliance Checklist EC No 550/2004 on the provision of air navigation services in the single European sky (the service provision Regulation)

F

Compliance

A

No.

B

Text of requirement

C

Key Elements

D

Evidence

E

How to Assess the Evidence

Yes Yes Yes

G

Actions needed

with Eurocontrols principles

for establishing the cost-basefor route facility charges and

the c

HANSA_ANSP Financial Oversight V2.0

Documents

Transcript of HANSA_ANSP Financial Oversight V2.0