EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
June 2009
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
- audited - Page: 2
CONTENTS
MANAGEMENT REPORT...........................................................................................................3
RESULT OF THE YEAR....................................................................................................................3
EDA STRUCTURE AND FUNCTIONS.................................................................................................5
2008 ACTIVITY REPORT ................................................................................................................7
FINANCIAL STATEMENTS......................................................................................................11
AUDIT OPINION...........................................................................................................................11
2008 MANAGEMENT ACCOUNTS ..................................................................................................12
2008 BALANCE SHEET.................................................................................................................15
2008 CASH FLOW .......................................................................................................................17
2008 QUARTERLY FINANCIALS .....................................................................................................18
NOTES TO THE 2008 FINANCIAL STATEMENTS...............................................................................19
APPENDIX - SELECTED EDA ACRONYMS............................................................................34
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
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MANAGEMENT REPORT
Building Capabilities for a Secure Europe
The European Defence Agency (‘EDA’ or ‘The Agency’) has been created to help EU Member
States to develop their defence capabilities for crisis-management operations under the European
Security and Defence Policy. The Agency will achieve its goal by encouraging EU Governments to
spend defence budgets on meeting tomorrow’s challenges, not yesterday’s threats, and by
increasingly pooling their efforts and resources. The Agency’s success will mean:
· Better military capabilities,
· Stronger European defence industry,
· Better value for European taxpayers.
RESULT OF THE YEAR
· In 2008, the Agency achieved substantial progress in each of its areas of responsibility:
– In July, the Steering Board (SB) endorsed the initial Capability Development Plan (CDP) as a
living process to identify priorities for capability development and to bring out opportunities to
pool and cooperate;
– The strategy adopted in 2007 to strengthen the European Defence Technological and Industrial
Base (EDTIB) is being successfully implemented in order to turn theory into practice;
– In October, the SB endorsed a “European Armaments Cooperation Strategy” to promote and
enhance more effective European Armaments Cooperation in support of the ESDP
– The third Strategy, on European Defence Research and Technology, has been adopted by the
SB in November;
– Beyond these major focus points there is a broad agenda of work which is - for most of it - a
continuation of Agency’s activities already under way.
· 2008 financial achievements include:
– the launch of 40 operational projects for a combined value of € 5.9 million;
– the launch of a € 1.6 million study on military frequency spectrum allocation required for the
insertion into the general air traffic of the Unmanned Aircraft System, financed from 2008
earmarked revenues;
– the commitment of 4 new contracts for combined value of € 15.5 million (government
contribution only) during the second year of the three year Joint Investment Programme Force
Protection (“JIP-FP” (1));
– the launch in November 2008, of “JIP-ICET”, a second joint investment programme with a
three year budget of € 15.6 million;
– the launch of 9 Ad hoc Category B projects signed in 2008 for a total value of € 44.1 million
(government and industry contribution).
(1) For JIP-FP related information, please refer to the separate JIP-FP report.
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
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2008 Financial Highlights
Figures in € million
27.6
1.8
25.8
7.5
3.9
14.4
TOTAL
REVENUES
PERSONNEL FUNCTIONING (2) OPERATIONAL
& EARMARKED
TOTAL
EXPENSES
pMS
SURPLUS
· 2008 revenues amount to € 27.6 million and comprise pMS contributions (94%), deductions
from Staff remuneration (4%) and financial income (2%).
· 2008 expenses amount to € 26.6 million (2) and consist of personnel (54%), functioning (2) (18%)
and operational expenses, incl. earmarked revenue (28%).
· At the year-end 2008, a budgetary surplus of € 1.8 million (approx. 5.7% of the 2008 Budget)
will be returned to pMS.
EDA Historical Financials
3
Figures in € k 2008 2007 2006 2005 CAGR (3)
REVENUES
MEMBER STATE CONTRIBUTIONS 25,835 20,818 21,500 19,910 9%
DEDUCTIONS FROM STAFF REMUNERATION 1,137 1,037 837 612 23%
FINANCIAL INCOME 581 520 390 148 58%
TOTAL REVENUES 27,553 22,374 22,727 20,670 10%
EXPENSES
PERSONNEL EXPENSES 14,350 12,626 10,847 7,453 24%
FUNCTIONING EXPENSES 4,385 4,387 4,076 2,829 16%
OPERATIONAL PROJECTS & STUDIES 5,906 4,485 3,887 2,495 33%
EARMARKED REVENUE 1,556 0 0 0
TOTAL EXPENSES 26,197 21,498 18,810 12,777 27%
ACCOUNTING SURPLUS 1,356 876 3,917 7,893
CAPITAL EXPENDITURE & DEPRECIATION ADJUSTMENTS 462 440 328 (3,462)
BUDGETARY SURPLUS REPAYABLE TO pMS 1,818 1,317 4,245 4,431 -26%
th
(2) Including € 462 k of capital expenditure and depreciation adjustments.
(3) The compound annual growth rate (CAGR) is the year-over-year growth rate calculated by taking the nth root of the
total percentage growth rate, where n is the number of years in the period being considered.
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
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EDA STRUCTURE AND FUNCTIONS
EDA’S STRUCTURE
The European Defence Agency is an agency of the European Union (4), falling under the direction
and authority of the Council, which issues guidelines to and receives reports from High
Representative Javier Solana as Head of the Agency. Detailed control and guidance, however, is
the job of the Steering Board.
Javier Solana chairs the Steering Board, the principal decision-making body of the Agency, made
up of Defence Ministers from 26 participating Member States (all EU members except Denmark)
and a member of the European Commission. In addition to ministerial meetings at least twice a
year, the Steering Board also meets at the sub-ministerial level: National Armaments Directors,
Research and Technology Directors and in Capabilities formation.
The Chief Executive, his two Deputies and the five Directors together form the Agency
Management Board (AMB), supported by the Planning & Policy and Media & Communication
Units.
(4) EDA was established under the Council Joint Action 2004/551/CFSP on 12 July 2004.
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
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The Agency is designed "to support the Member States in their effort to improve European
defence capabilities in the field of crisis management and to sustain the ESDP as it stands now
and develops in the future". More specifically, the Agency is ascribed four functions, relating to:
· Defence capabilities development
· Armaments co-operation
· The European defence, technological and industrial base and defence equipment market
· Research and technology
EDA’S DIRECTORATES AND OPERATING UNITS
Capabilities Directorate
– Leads the Agency's work, with Member States, to meet the defence capability needs of ESDP
– Works with Member States to maximise the collective output achieved from defence resources
– Strives to expand and deepen the interoperability of EU forces
Research & Technology Directorate
– Seeks to catalyse more European R&T collaborations, focussed on improving Europe's
defence capabilities
– Develops policies and strategies to strengthen defence technology in Europe
– Manages joint R&T projects (JIP-Force Protection, JIP-Innovative Concepts and Emerging
Technologies)
Armaments Directorate
– Promotes and enhances European armaments cooperation
– Works with Member States on new multilateral collaborative projects
– Develops common standards and procedures
Industry and Market Directorate
– Works to create an internationally competitive European Defence Equipment Market
– Supports the restructuring and strengthening of the European Defence Industrial and
Technological Base
– Maintains dialogue with Industry, Commission and other key stakeholders on European
defence industrial and defence market related activities
Corporate Services Directorate
– Responsible for Finance, Human Resources, IT, Security and Logistics
– Provides expertise for procurement and contracts through its Legal & Contracting Unit
– Through its Finance Unit, manages the Agency’s accounting, budgets and reporting
– Supports the activities of the Agency and its functional directorates
Media & Communications Unit
– Responsible for external communication with key stakeholders
– Manages contacts with media, think tanks and public affairs institutions
– Produces print, online and other information material
Policy & Planning Unit
– Acts as Secretariat to the AMB, coordinates plans and policies
– Prepares Steering Board meetings
– Liaises with EU bodies and external parties
Internal Audit Function
– Following the Auditor’s recommendations, the Chief Executive established an Internal Audit
Function: Mr. Dick ZANDEE was appointed Internal Auditor of the EDA on 13 March 2007.
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
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2008 ACTIVITY REPORT (10 NOVEMBER 2008)
REPORT TO THE COUNCIL BY JAVIER SOLANA, HEAD OF THE AGENCY (5)
In its fourth year of operation, the Agency has continued to deliver concrete results on its agenda,
as by Council Guidelines of 19 November 2007. EDA has completed European strategies and has
been implementing them; it has pursued and intensified the generation and establishment of ad
hoc projects in order to improve participating Member States’ defence capabilities and sustain the
ESDP, within the minimum time required and in the most cost-effective manner.
The delivery of the initial Capability Development Plan constitutes this semester’s major
achievement in terms of overall impact. It will serve as the reference point for steering the
Agency’s and pMS’ agendas regarding R&T investments, Armaments cooperation, and industrial
developments.
1. The Agency has been busy completing and implementing the European long-term
strategic framework, with the following steps:
a) Last July the Steering Board (SB) endorsed the initial Capability Development Plan (CDP) as
a living process to identify priorities for capability development and to bring out opportunities
to pool and cooperate. It is the result of an exemplary cooperation between actors involved -
the Brussels based structures the Agency, the EUMC and the EUMS, and of course the
participating Member States (pMS).
The initial CDP delivered useful analysis to help keep moving forward, together in the same
direction. The conclusions highlight issues such as the importance of operations being
supported by iterative intelligence and information, a comprehensive approach and
coordinated action (e.g. civil/military actions), and the human factor.
But the CDP is not only analysis; it is also a practical tool. Therefore pMS selected a first
tranche of twelve priority Actions(6), and EDA has been directed to prepare together with
pMS a detailed way forward for each of them in view of generating concrete collaborative
initiatives. There are other important areas to consider, which are emerging from the CDP
and where initiatives are well under way with EDA’s involvement (such as Space and
Maritime Surveillance).
The number of pMS involved differs from one project to another. We have already compiled
a database of pMS’ programmes, with the intention of bridging the short to longer term, and
also to identify potential collaborative opportunities. From an initial look at 366 programmes
(from 20 pMS) we identified 19 programmes for collaboration in areas such as Biological
Warfare, Unmanned Vehicles, CBRN (Chemical Biological and Radiological Nuclear)
protection for soldiers, and Maritime Mine Counter Measures. With increased facilitation and
input from pMS, this has the potential to develop into real cooperative projects.
Work is in hand to develop a process to derive further tranches of actions from the CDP and
present it at the SB at the beginning of next year.
(5) ‘Report to the Council’ by Javier Solana, Head of the Agency.
(6) Network Enabled Capability, Increased Helicopters’ availability, Counter-Improvised Explosive Device, Third Party
Logistic Support, Chemical-Biological-Radiological and Nuclear Defence, Medical Support,
Intelligence/Surveillance/Target Acquisition/Reconnaissance Architecture, Military Human and Cultural/Language
training, Comprehensive approach/military implications, Maritime Mine Counter Measures, Computer Network
Operations, Counter Man Portable Air Defence Systems
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
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In summary, the initial CDP is an important milestone which will serve as the reference point
for steering the Agency’s and pMS’ agendas in the fields of R&T, armaments and industry
areas. PMS efforts to take the CDP into account when reviewing and adapting their national
defence plans will be essential in that regard.
b) The strategy adopted in 2007 to strengthen the European Defence Technological and
Industrial Base (EDTIB) is being successfully implemented in order to turn theory into
practice through, notably, the following steps (endorsed by the SB):
- adoption of a voluntary Code of Conduct on Offsets aimed at mitigating adverse impact
of offsets on cross border competition and the European DTIB. This Code, which applies
to all compensation practices required as a condition of purchase or resulting from a
purchase of defence goods or defence services, will take effect from 1 July 2009;
- approval of a methodology for identifying the key Future Air Systems defence related
industrial capabilities to be preserved or developed in Europe. EDA will present an initial
assessment next spring and propose concrete response measures in autumn 09;
- agreement of a number of specific measures to support and encourage defence related
Small and Medium-Sized Enterprises (SMEs) and non-traditional suppliers.
c) In October the SB endorsed a “European Armaments Cooperation Strategy” to promote and
enhance more effective European Armaments Cooperation in support of the ESDP, through:
generating, promoting and facilitating cooperative programmes to meet capability needs;
ensuring the European DTIB and investment therein is capability oriented and supports
future cooperative programmes; and improving the efficiency of European Armaments
cooperation.
d) The third Strategy, on European Defence Research and Technology, will hopefully be
adopted by the SB in November. It is aimed at enhancing more effective research
collaboration in science, technology and demonstrators in order to deliver in time the right
technologies in support of military capabilities for short, medium and long term need. The
strategy includes “Ends” – i.e. identifying the key technologies to which investments should
be directed in order to improve European defence capabilities, and “Means” – i.e. developing
the right tools to achieve the ends, including increasing the effectiveness of R&T
collaborations. A roadmap for follow-up actions will be presented to the Steering Board in
spring 2009.
Before the end of 2008 all the building blocks of the strategic framework will be in place and
influence each other – and should enable, notably, the development of effective
collaborations. It is therefore crucial to ensure coherence between efforts, and EDA will keep
increasing and intensifying interlinks.
2. The Agency also progressed on implementing existing policies and developing
policy/conceptual work with, notably:
a) the positive assessment of the overall implementation of the Code of Conduct on defence
procurement and, in general, the encouraging observation that subscribing Member States
have adapted their procurement practices to the CoC’s provisions. The volume of
Government contract opportunities posted on the Agency’s portal (EBB1) has steadily grown,
and we are seeing signs that cross border bidding and contract awarding take place. There
is however a need to increase cross-border bidding by industry which is still limited;
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
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b) the approval of a Conceptual Guide for the Defence Test and Evaluation Base (DTEB) to
target priority areas, coordinate investments, encourage reciprocal use of facilities and
create a network of Test and Evaluation capabilities;
c) the creation, expected to take place at the November SB, of an EU-wide forum for Military
Airworthiness Authorities with the associated Roadmap, in order to address the lack of a
coherent approach on military airworthiness regulations within the EU. Such an initiative is
expected to substantially reduce costs and time scales and increase competitiveness of the
European DTIB;
d) the delivery of the “Draft EU Concept for Network Enabled Capabilities (NEC) in support of
ESDP, produced by the Wise Pen General (Ret.) Rainer Schuwirth in consultation with
relevant EU stakeholders. The draft Concept was supported by the SB, and it is now being
considered by the relevant Council committees;
e) continuous support to the GSC’s project on defining CIS Information Exchange
Requirements (user needs), and encouraging initial results highlighting key CIS capability
gaps within the EU;
f) the results of the Road Map on UAVs insertion in General Air Traffic successfully delivered
to pMS, who also approved the first Business Case (under the Earmarked Revenue decided
in 2007) on “Frequency Allocation”.
3. Within the strategic framework (described in section 1) which gives common direction
and frames future concrete initiatives, the Agency is also focused on implementing
existing cooperative programmes and preparing the launch of new projects and
programmes.
a) EDA achieved substantial results on its two Defence R&T Joint Investments Programmes:
- The JIP on Force Protection is well on its way, with 8 contracts signed (worth 36 million
€). In particular, we are now launching three projects on: wireless robust communication
for urban operations, in liaison with the Commission FP7; air defence high energy laser
weapon; and advanced helmet and devices for individual protection;
- Only five months after approval of the JIP on Innovative Concept and Emerging
Technology, its Programme Arrangement is expected to be signed on 10 November in
the margin of the SB.
b) Progress has been made also on preparing the ground for setting up other projects and
programmes in key areas:
- concrete steps took place to contribute to increasing helicopters’ availability for ESDP
operations, notably: (i) an ad hoc Project Group on Helicopter Training was established
in order, notably, to develop and implement the concept of a Helicopter Tactics Training
Programme (HTP) to enhance aircrew skills. EDA is currently launching two studies and
coordinating the preparation of an exercise (to take place in spring 2009), which will help
shape the future Programme; (ii) on upgrading, EDA has exchanged experiences with
pMS and Industry over current equipment upgrades and technical shortfalls. A detailed
menu will be provided by spring 2009; (iii) lastly, looking at the longer term, we hope to
be able to establish in the near future an EDA ad hoc project based on the joint initiative
by Germany and France on the preparation of the Future Transport Helicopter (aimed at
providing a solution for an intra-theatre lift capability in the years 2020+);
EUROPEAN DEFENCE AGENCY
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- a Declaration of Intent is expected to be approved by a number of interested pMS on
their participation in the establishment of a future European Air Transport Fleet, in order
to prepare the ground towards increasing the EU’s strategic transportation capabilities;
- the way ahead for the implementation of the European Industrial-based Third Party
Logistic Support Platform in 2009 was endorsed with a view to starting the live Phase at
the beginning of 2010;
- EDA successfully launched and run a series of activities in the domain of Intelligence
Training. The Intelligence Understanding of the Mission Environment Courses and the
Open Source Intelligence Exploitation Course unveiled a broad interest. EDA will
continue in 2009, but there is an need to find another European body to take over this
important work from 2010;
- preparation continued towards the launch, in 2009, of the programme preparation phase
for a 3 year Biological Equipment Development and Enhancement Programme;
- we hope to be able to establish at the November SB two ad hoc projects in the Maritime
area: one to conduct the assessment phase of a “Maritime Mine Counter Measures”
(MMCM) system (one of the 12 CDP priorities); the other one on “Maritime Tactical
Unmanned Aerial System with a Joint Approach” in the context of EDA’s work on
Maritime Surveillance;
- ix pMS (Belgium, France, Germany, Greece, Italy, Spain) have announced their intention
to bring into EDA their cooperation on a Multinational Space-based Imaging System
(MUSIS) for surveillance, reconnaissance and observation. Space-based and spacerelated
assets are increasingly needed to strengthen European military capabilities for
ESDP operations – in particular with regard to communications and informationgathering.
We therefore hope to be able to establish MUSIS as an EDA project in the
near future;
- lastly, the Agency has started to work on linking the Capabilities priorities arising from the
CDP and the key technologies arising from the EDRT strategy so as to highlight
opportunities for R&T collaborations - in other words looking for R&T projects to
contribute to close key capability gaps.
4. In full respect of the Joint Action, the Agency has: (i) intensified efforts to ensure
complementarity and coherence of work with NATO, OCCAR, and the LoI “group”;
and (ii) initiated informal contacts with the European Space Agency to discuss issues
such as SATCOM and Space Situational Awareness in view of seeking synergies
between civil and military agendas.
Javier Solana
High Representative and Head of European Defence Agency
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
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2008 MANAGEMENT ACCOUNTS (1/3)
7
MANAGEMENT ACCOUNTS
Notes 2008 2008 2007 2006
Figures in € 1 Budget (7) Actual Actual Actual
EXPENSES
Title I : PERSONNEL EXPENSES 2
Chapter 11: OFFICIALS & TEMPORARY STAFF
BASIC SALARIES (TBA) 8,157,000 7,755,012 6,991,619 5,847,884
STAFF STATUTORY ALLOWANCES 2,118,700 2,033,107 1,698,380 1,452,065
STAFF SOCIAL PROTECTION 2,142,000 2,062,542 1,806,168 1,511,150
NAP BANK TRANSFERS (7SI) 0 0 0 309
OVERTIME 0 0 0 2,693
STAFF ALLOWANCES ON ENTERING & LEAVING SERVICE 843,000 497,525 240,103 121,438
PROVISIONAL APPROPRIATIONS 172,300 0 0 0
Subtotal 13,433,000 12,348,186 10,736,270 8,935,539
Chapter 12: SNE, CONTRACT STAFF & TRAINEES
CONTRACT STAFF 280,000 246,776 256,069 231,331
SECONDED NATIONAL EXPERTS 1,250,000 1,153,887 1,065,324 1,106,517
TRAINEES 92,000 22,221 50,965 63,227
PROVISIONAL APPROPRIATIONS 75,000 0 0 0
Subtotal 1,697,000 1,422,884 1,372,358 1,401,075
Chapter 13: STAFF RELATED
RECRUITING EXPENSES 43,000 37,121 33,061 17,959
STAFF TRAINING 57,800 54,752 34,999 37,030
STAFF COMMITTEE 5,000 5,000 0 0
MEDICAL EXPENSES 7,200 5,586 2,782 4,608
MISSION EXPENSES 477,000 476,809 446,430 450,411
Subtotal 590,000 579,268 517,272 510,008
TOTAL PERSONNEL EXPENSES 15,720,000 14,350,338 12,625,900 10,846,622
Title II : FUNCTIONING EXPENSES 3
Chapter 20: BUILDING & BUILDING RELATED
FITTING-OUT OF PREMISES 359,909 364,606 312,489
EXP. FITTING-OUT OF PREMISES 50,000 35,302 43,412 41,077
DPR. FITTING-OUT OF PREMISES 0 324,607 321,195 271,412
SECURITY EQUIPMENT 63,166 74,263 50,701
EXP. SECURITY EQUIPMENT 15,000 12,834 32,740 17,835
DPR. SECURITY EQUIPMENT 0 50,332 41,523 32,866
OFFICE RENT 1,401,000 1,377,377 1,342,755 1,323,279
CLEANING & MAINTENANCE 203,000 193,479 142,809 226,646
UTILITY SERVICES 152,000 149,366 97,430 126,196
BUILDING SURVEILLANCE SERVICES 1,088,000 1,059,486 1,042,622 991,274
INSURANCES 12,000 11,910 4,398 15,389
OTHER BUILDING RELATED EXPENSES 32,000 21,665 26,488 20,477
Subtotal 2,953,000 3,236,358 3,095,371 3,066,451
(7) 2008 Revised Budget
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
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2008 MANAGEMENT ACCOUNTS (2/3)
8
MANAGEMENT ACCOUNTS (CONT'D)
Notes 2008 2008 2007 2006
Figures in € 1 Budget (8) Actual Actual Actual
Chapter 21: IT EQUIPMENT, FURNITURE & OTHER
IT EQUIPMENT & SOFTWARE 211,095 171,630 172,698
EXP. IT EQUIPMENT & SOFTWARE 141,000 47,530 43,344 69,976
DPR. IT EQUIPMENT & SOFTWARE 0 163,565 128,286 102,722
OFFICE FURNITURE 46,771 42,632 72,202
EXP. OFFICE FURNITURE 30,000 24,293 23,841 56,642
DPR. OFFICE FURNITURE 0 22,478 18,791 15,560
OFFICE TECHNICAL EQUIPM. & SUPPLIES 42,906 260,575 28,213
EXP. OFFICE TECHNICAL EQUIPM. & SUPPLIES 71,000 36,859 255,179 27,520
DPR. OFFICE TECHN. EQUIPMENT 0 6,047 5,396 692
IT PROJECTS & DEVELOPMENT OF SYSTEMS 35,000 34,734 25,599 75,767
IT SUPPORT & MAINTENANCE OF COPIERS 63,000 55,225 25,386 20,337
TELECOM EXPENSES 170,000 109,694 150,339 176,383
OUTSIDE ASSIST. FOR OPERATION OF TECHN. INSTALLATIONS 26,000 7,805 25,930 19,208
MAINTENANCE & REPAIR OF TECHNICAL INSTALLATIONS 198,000 193,706 142,062 97,193
OFFICE VEHICLES 25,000 13,766 14,024 8,822
Subtotal 759,000 715,702 858,177 670,823
Chapter 22: OTHER FUNCTIONING
TRANSLATION SERVICES 5,000 1,403 2,881 0
RECEPTION & REPRESENTATION EXPENSES 45,000 29,756 23,436 30,715
INTERNAL MEETINGS 74,000 72,921 70,518 50,375
CONFERENCES & SEMINARS 50,000 36,085 39,553 71,606
INFORMATION, SUBSCRIPTIONS & DOCUMENTATION EXPENSES 159,000 145,671 170,374 56,267
OFFICIAL JOURNAL 5,000 784 783 484
PUBLIC RELATIONS 40,000 27,771 15,768 38,364
OFFICE SUPPLIES 100,000 99,231 90,204 75,044
POSTAL & DELIVERY EXPENSES 22,000 19,381 19,524 13,826
AUDIT EXPENSES 8,000 0 0 0
FINANCIAL CHARGES, INCL. FOREIGN EXCHANGE DIFF. 3,000 (39) 368 2,001
Subtotal 612,000 432,964 433,409 338,682
TOTAL FUNCTIONING EXPENSES 4,324,000 4,385,024 4,386,957 4,075,956
TOTAL PERSONNEL & FUNCTIONING EXPENSES 20,044,000 18,735,362 17,012,857 14,922,578
Title III : OPERATIONAL BUDGET & EARMARKED REVENUE
OPERATIONAL PROJECTS & STUDIES 4 6,000,000 5,905,733 4,484,830 3,886,956
EARMARKED PROJECTS - UAV 5 6,000,000 1,556,000 0 0
TOTAL OPERATIONAL BUDGET 12,000,000 7,461,733 4,484,830 3,886,956
TOTAL EXPENSES 32,044,000 26,197,095 21,497,687 18,809,534
(8) 2008 Revised Budget
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
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2008 MANAGEMENT ACCOUNTS (3/3)
9 10
MANAGEMENT ACCOUNTS (CONT'D)
Notes 2008 2008 2007 2006
Figures in € 1 Budget (9) Actual Actual Actual
REVENUES (10) 6
Title IV: MISC. COMMUNITY TAXES, LEVIES & DUES
Chapter 40: DEDUCTIONS FROM STAFF REMUNERATION
TAXATION ON STAFF SALARIES & ALLOWANCES (8IM) 1,028,000 999,935 925,507 756,752
EU SPECIAL LEVY (PSP) 141,000 137,378 111,066 79,985
Subtotal 1,169,000 1,137,313 1,036,573 836,737
Title V: INCOME FROM OPERATING ACTIVITIES
Chapter 52: FINANCIAL INCOME
INTERESTS - BANK 600,000 565,398 475,581 375,465
INTERESTS - PMS 0 15,461 44,029 14,512
Subtotal 600,000 580,859 519,610 389,977
Title VI: pMS CONTRIBUTIONS
Chaptre 61 : MEMBER STATE CONTRIBUTIONS
PMS CONTRIBUTIONS 24,275,000 24,275,000 20,818,000 21,500,000
PMS CONTRIBUTIONS 5 6,000,000 1,560,000 0 0
Subtotal 30,275,000 25,835,000 20,818,000 21,500,000
TOTAL REVENUES 32,044,000 27,553,172 22,374,183 22,726,714
ACCOUNTING SURPLUS 1,356,077 876,496 3,917,180
CAPITAL EXPENDITURE (105,079) (75,047) (95,422)
DEPRECIATION ADJUSTMENT 567,029 515,191 423,252
BUDGETARY SURPLUS REPAYABLE TO pMS 7 1,818,027 1,316,640 4,245,010
(9) 2008 Revised Budget
(10) In compliance with the Auditors’ recommendations, Staff pension contributions are excluded from revenues and
accrued on the Agency’s balance sheet.
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
- audited - Page: 15
BALANCE SHEET
Notes
Figures in € 31.12.2008 31.12.2007 31.12.2006
ASSETS
FIXED ASSETS
ACQ. FITTING-OUT OF PREMISES 3,039,935 3,030,953 3,017,659
ACCUML. DPR. FITTING-OUT OF PREMISES (1,028,989) (704,382) (383,187)
FITTING-OUT OF PREMISES 2,010,946 2,326,571 2,634,472
ACQ. SECURITY EQUIPMENT 136,145 136,145 134,978
ACCUML. DPR. SECURITY EQUIPMENT (130,526) (80,194) (38,671)
SECURITY EQUIPMENT 5,619 55,951 96,307
ACQ. IT EQUIPMENT & SOFTWARE 545,555 463,914 427,087
ACCUML. DPR. IT EQUIPMENT & SOFTWARE (417,262) (253,697) (125,412)
IT EQUIPMENT 128,293 210,217 301,675
ACQ. OFFICE FURNITURE 121,689 117,583 97,649
ACCUML. DPR. OFFICE FURNITURE (62,370) (39,892) (21,101)
OFFICE FURNITURE 59,319 77,691 76,548
ACQ. OFFICE TECHN. EQUIPMENT 40,464 30,114 26,289
ACCUML. DPR. OFFICE TECHN. EQUIPM. (12,135) (6,088) (692)
OFFICE TECHNICAL EQUIPMENT 28,329 24,026 25,597
NET FIXED ASSETS 8 2,232,506 2,694,456 3,134,599
SUPPLIER RECEIVABLES
INTERESTS RECEIVABLE 28,848 160,909 126,492
ADVANCE PAYMENTS ON SUPPLIERS 0 320,668 316,414
SUPPLIER RECEIVABLES 9 28,848 481,577 442,906
CASH
EDA BANK ACCOUNTS 19,725,561 15,519,461 14,277,564
PETTY CASH 1,000 1,000 500
CASH 10 19,726,561 15,520,461 14,278,064
TOTAL ASSETS 21,987,915 18,696,494 17,855,569
For the year ending
2008 BALANCE SHEET (1/2)
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
- audited - Page: 17
CASH FLOW
Figures in € 31.12.2008 31.12.2007 31.12.2006
OPENING BANK ACCOUNT BALANCE 15,519,461 14,277,564 10,389,816
CASH RECEIVED FROM PMS
PMS CONTRIBUTIONS 25,835,000 20,818,000 21,500,000
REIMBURSEMENT OF YEAR N-1 SURPLUS (1,316,640) (4,245,010) (4,431,045)
DEFERRED PAYMENTS OF CONTRIBUTIONS (836,466) (236,638) 711,607
Subtotal 23,681,894 16,336,352 17,780,562
CASH RECEIVED FROM BANK
INTERESTS CREDITED DURING THE YEAR 697,459 588,816 298,490
Subtotal 697,459 588,816 298,490
TOTAL CASH INFLOWS 24,379,353 16,925,168 18,079,052
CASH SPENT FOR FUNCTIONING & OPERATIONAL EXPENSES
FUNCTIONING EXPENSES
PAYMENTS FOR YEAR N-2 EXPENSES 2,191 2,059 0
PAYMENTS FOR YEAR N-1 EXPENSES 236,842 730,424 1,586,591
PAYMENTS FOR CURRENT YEAR EXPENSES * 15,129,142 12,243,971 11,030,864
PAYMENTS FOR YEAR N+1 EXPENSES 0 320,668 316,414
PAYMENTS FOR FUNCTIONING EXPENSES 15,368,176 13,297,122 12,933,869
OPERATIONAL EXPENSES
PAYMENTS FOR YEAR N-3 EXPENSES 525,000
PAYMENTS FOR YEAR N-2 EXPENSES 454,302 250,294
PAYMENTS FOR YEAR N-1 EXPENSES 3,179,048 1,888,438 1,124,694
PAYMENTS FOR CURRENT YEAR EXPENSES 646,727 247,417 132,741
PAYMENTS FOR OPERATIONAL EXPENSES 4,805,077 2,386,149 1,257,435
TOTAL CASH OUTFLOWS 20,173,253 15,683,271 14,191,304
CLOSING BANK ACCOUNT BALANCE 19,725,561 15,519,461 14,277,564
For the year ending
* Provided by accounting system. It equals to 2008 expenditures, as per Management accounts, less 2008 payments made in 2009,
plus payments related to 2007 but made in 2008.
2008 CASH FLOW
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
- audited - Page: 18
11
Figures in € k
Budget (11) Actual Q1 Q2 Q3 Q4
TITLE I : PERSONNEL EXPENSES
Chapter 11: OFFICIALS (SCO) & TEMPORARY STAFF 13,433 12,348 2,887 2,876 3,125 3,460
Chapter 12: SNE, CONTRACT & OTHER STAFF 1,697 1,423 308 360 388 367
Chapter 13: STAFF RELATED 590 579 94 157 157 171
SUBTOTAL 15,720 14,350 3,289 3,394 3,670 3,998
TITLE II : FUNCTIONING EXPENSES
Chapter 20: BUILDING & BUILDING RELATED 2,953 3,236 960 718 463 1,095
Chapter 21: IT EQUIPMENT, FURNITURE & OTHER 759 716 67 66 125 448
Chapter 22: OTHER FUNCTIONING 612 433 116 76 76 166
SUBTOTAL 4,324 4,385 1,143 860 663 1,709
SUBTOTAL PERSONNEL & FUNCTIONING 20,044 18,735 4,433 4,254 4,333 5,706
TITLE III : OPERATIONAL BUDGET
OPERATIONAL PROJECTS & STUDIES 12,000 7,462 0 99 124 7,240
SUBTOTAL 12,000 7,462 0 99 124 7,240
TOTAL EXPENSES 32,044 26,197 4,433 4,353 4,456 12,946
Budget (11) Actual Q1 Q2 Q3 Q4
TITLE IV : DEDUCTIONS STAFF REMUNERATION
Chapter 40: DEDUCTIONS STAFF REMUNERATION 1,169 1,137 276 277 280 304
TITLE V : INCOME FROM OPERATING ACTIVITIES
Chapter 52: FINANCIAL INCOME 600 581 175 103 117 185
TITLE VI : pMS CONTRIBUTIONS
Chapter 611: pMS CONTRIBUTIONS 24,275 24,275 6,114 7,870 0 10,291
Chapter 612: EARMARKED REVENUE 6,000 1,560 0 0 0 1,560
SUBTOTAL 30,275 25,835 6,114 7,870 0 11,851
TOTAL REVENUES 32,044 27,553 6,565 8,251 397 12,340
2008 Quarterly Financials
REVENUES
EXPENSES
2008 Annual
(11) 2008 Revised Budget
2008 QUARTERLY FINANCIALS
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
- audited - Page: 19
Note 1: Basis of Presentation and Specific Accounting Policies
BASIS OF PRESENTATION
EDA’s financial accounts have been established in full conformity with:
· Council Joint Action 2004/551/CFSP of 12 July 2004 on the establishment of the European
Defence Agency and
· EDA Steering Board Decision No. 2007/29 (Cor.) on the Financial Rules of the European
Defence Agency (‘the EDA Financial Rules’ or ‘FR’),
· EDA Finance Manual (or ‘FM’), as well as with respect to :
– Council Regulation N° 1605/2002 of 25 June 2002 on the Financial Regulation applicable to
the general budget of the European Communities (‘EU Financial Regulation’),
– Commission Regulation N° 2342/2002 of 23 December 2002 laying down detailed rules for the
implementation of the Financial Regulation (‘EU Implementing Provisions’) and
– “Final rules adopted by the Accountant of the European Communities after formal consultation
of accountants of institutions and agencies based on the Art. 133 of the EU Financial
Regulation”.
SPECIFIC ACCOUNTING POLICIES
pMS Contributions
Contributions from participating Member States (‘pMS’) are calculated in accordance with the
principles of the EU budget proportional share of the pMS's GNI in the total GNI aggregate.
Contributions are requested in three instalments, by 15 February, 15 June and 15 October (Art. 16,
Council Joint Action 2004/551/CFSP). In 2007, after the accession of Bulgaria and Romania, the
EDA counts 26 pMS (12).
2008 Budget
The budget for 2008 was established in November 2007. In November 2008, in accordance with
the Financial Rules, to properly reflect its financial situation, the Agency reviewed its budget,
adjusting intra-chapter budget lines based on forecasted expenses and revenues.
Budgetary Surplus repayable to pMS
The budgetary surplus repayable to pMS is the difference between revenues and expenses of the
financial year, including capital expenditure and depreciation adjustment. The surplus is returned
to pMS as a deduction of the third contribution in the following financial year (for details, please
see Note 7).
Fixed Asset Policy
Items acquired by the Agency whose purchase price is € 420 or more, with a period of use greater
than one year, and which are not consumables are recorded in the fixed assets accounts (Art. 222,
‘EU Implementing Provisions’ and part 5.1, FM). The Agency performs an annual inventory of its
fixed assets, where all qualifying assets are individually monitored and recorded in the fixed asset
database.
(12) 27 EU Member States excluding Denmark.
NOTES TO THE 2008 FINANCIAL STATEMENTS
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
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The cost of fixed assets comprises the purchase price, including any directly attributable costs of
bringing the asset into working condition for its intended use. Routine maintenance and repairs,
however, are not capitalised but charged to expenses as incurred (part 5.1, FM).
In line with the Council’s policy, asset-invoices are booked as expenses during the year and
transferred to the balance sheet at year-end. The annual depreciation charge is then also added
to expenses. In budgetary terms, however, assets and depreciation are budget neutral, as the
acquisition cost is charged 100% to the current year’s budget and depreciation charge is adjusted.
Depreciation
Depreciation is computed on a straight-line basis, from the date of the purchase, over the
estimated useful life of the assets:
– 9 years for fitting-out of premises (building related investments),
– 5 years for office furniture (desks, chairs, filing cabinets, etc.) and office technical equipment
(projectors, transcribers, bicycles etc),
– 3 years for IT equipment and software (computers, telecommunications, audiovisual, other
equipment and software) and security equipment (scanner, surveillance equipment, etc.).
Provisional Appropriations
Each budgetary title may include a chapter entitled ‘provisional appropriations’. These
appropriations are entered where there is uncertainty, based on serious grounds, about the
amount of appropriations needed or the scope for implementing the appropriations entered (Art. 4
of FR).
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
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Note 2: Personnel Expenses
REGULATORY BASIS
Human resources parameters (13) and calculations are based on:
· Staff Regulations applicable to Officials and other Servants of the European Communities and
the last amendment, Council Regulation (EC, EURATOM) No 1323/2008 of 18 December
2008 the remuneration and pensions of Officials and other Servants of the European
Communities and the correction coefficients applied thereto, and Council Regulation (EC,
EURATOM) No 1324/2008 of 18 December 2008 adjusting, from 1 July 2008, the rate of
contribution to the pension scheme of officials and other servants of the European
Communities.
· Council Decision 2003/479/EC concerning the rules applicable to National Experts and Military
Staff on secondment to the General Secretariat of the Council and the last amendment,
Council Decision 2008/451/EC of 16 June 2008 adjusting the allowances,
· Council Decision 2004/676/EC of 24 September 2004 concerning the Staff Regulations of the
European Defence Agency (‘EDA Staff Regulations’) and the last amendment, Council
Decision 2007/215/EC of 29 January 2007,
· Council Decision 2004/677/EC of 24 September 2004 concerning the Rules applicable to
national experts and military staff on secondment to the European Defence Agency and the
last amendment, Council Decision 2007/216/EC of 29 January 2007 with regard to a minimum
period of secondment of national experts and military staff seconded to the European Defence
Agency.
PERSONNEL EXPENSES
Personnel expenses amount to € 14.4 million. In line with the Staff Establishment Plan, the
Agency’s posts increased by 1%, from 98 to 99 (14).
The corresponding increase in personnel expenses is mainly due to the growth of EDA’s
personnel, the regulatory step changes after 2 years of service and the annual salary grid
adjustments and the 12-month impact of posts recruited in the course of 2007. The remuneration
of the members of the temporary and contract Staff is determined according to the same rules as
those set out in the Staff Regulations of Officials of the European Communities (Art. 59 and Art.
111 of EDA Staff Regulations).
During 2008, 66 % of personnel were employed as Temporary Staff, 20 % as Seconded National
Experts, 5 % as Contract Staff and 5 % as Officials on Secondment, 3 % as Short Term Officials
on Secondment and 1 % as Trainees.
STAFF CATEGORIES AT THE AGENCY
EDA employs five different categories of personnel:
1. Temporary Staff
Staff engaged to fill temporarily a post included in the list of posts appended to the budget of the
Agency. They are classified in an administrators' function group (AD) and assistants' function
group (AST). Function group AD comprises twelve grades, corresponding to administrative,
advisory, linguistic and scientific duties. Function group AST comprises eleven grades,
corresponding to executive, technical and clerical duties.
(13) Acronyms in the brackets refer to Paymasters Office of the European Institutions (‘PMO’) definitions.
(14) Including 1 frozen post.
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
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2. Officials on Secondment
Established Officials who, by decision of the appointing authority, have been directed in the
interests of the service, or have been engaged at their own request, to fill temporarily a post
included in the list of posts appended to the budget of the Agency. They are classified and graded
as temporary Staff.
3. Contract Staff
Staff not included in the Staff Establishment Plan and engaged for the performance of full-time or
part-time duties. Contract Staff are subdivided into four function groups corresponding to the
duties performed. Each function group is subdivided into grades and steps.
4. Seconded National Experts and Short Term SNEs
Temporarily assigned experts from the Member States' administrations in accordance with EDA’s
requirements and budgetary possibilities. Seconded National Experts are graded AD5-AD16 and
AST5-AST11 as defined in Article 6 of Council Regulation of 29 January 2007 amending Decision
2004/677/EC with regard to a minimum period of secondment of national experts and military staff
seconded to the European Defence Agency. In addition, EDA may under the same conditions hire
Short Term SNEs for specific projects (not included in the Staff Establishment Plan).
5. Trainees
Temporarily assigned experts from the Member States' administrations in accordance with EDA’s
requirements and budgetary possibilities for a period not longer than 6 months.
Basic Salaries
Staff basic salaries (TBA) are processed through the EU Paymasters Office’s (PMO), using the
NAP system. Grades and salary parameters are updated annually by the Council.
Staff Statutory Allowances
Staff statutory allowances (15) relate to:
– Expatriation status (IDE), as per Article 69 and Article 4 (1) of Annex VII
– Dependent child allowances (AEA and AEN), as per Article 2 of Annex VII
– Household allowance (AFO), as per Article 1 (1) of Annex VII
– Education allowance (APF), as per Article 3 (2) of Annex VII
– Education allowances (ISF and ISN), as per Article 3 (1) of Annex VII
– Birth grant (ANA), as per Article 74
Staff Social Protection
Staff social protection is financed both from the Agency (Staff Social Protection) and from Staff (16)
(Deductions from Staff Remuneration). The following statutory contributions were paid in 2008:
Social contribution
(as % of TBA) Staff EDA
Sickness CAM 1.70 CAI 3.40
Accident CAA 0.10 CAB 0.87
Unemployment (17) CCA 0.81 CCI 1.62
Pension (18) CPP 10.25 / 10.9 n/a 20.50 / 21.8
Source: Staff Regulations applicable to Officials and other Servants of the European Communities and the last amendment, Council
Regulation (EC, EURATOM No 1323/2008 of 18 December 2008) and Council Regulation (EC, EURATOM No 1324/2008 of 18
December 2008).
(15) For details calculations, please refer to Staff Regulations applicable to Officials and other Servants of the European
Communities and the last amendment, Council Regulation (EC, EURATOM No 1323/2008 of 18 December 2008) and
Council Regulation (EC, EURATOM No 1324/2008 of 18 December 2008).
(16) SCO and Temporary Staff.
(17) After deduction of a standard allowance of € 1,171.09.
(18) 10.25 and 20.5 until 01/07/2008, 10.9 and 21.8 after 01/07/2008.
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
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Staff present as per 31/12/2008
STAFF LIST TOTAL FEMALE MALE
AD16 1
AD15 2
AD14 4
AD13 9
AD12 15
AD11 7
AD10 8
AD9 4
AD8 5
Temporary Staff - AD 55 21% 79%
AST10 2
AST8 3
AST7 1
AST6 1
AST5 9
Temporary Staff - AST 16 62% 38%
Temporary Staff 71 30% 70%
AD12 1
AST10 1
AST7 2
AST6 1
SCO 5 80% 20%
AD13 4
AD12 9
AD11 1
AD10 5
AD9 2
SNE 21 10% 90%
Total Staff Establishment Plan (1) 97 30% 70%
III 2
II 3
Contract Staff 5 40% 60%
Short Term SNEs 4 100% 0%
Trainee 1 100% 0%
TOTAL EDA STAFF 107 31% 69%
(1) Excluding 1 frozen post and 1 vacant post.
STAFF DISTRIBUTION PER GRADE
9
1
1
8
4
10
7
15
9
4
2
1
2
5
1
9
4
2
1
5
4
1
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Trainees
Short Term SNEs
Contract Staff
5
6
7
8
9
10
11
12
13
14
15
16
GRADE
Temporary SNE SCO
Contract Staff ST SNEs Trainee
NAP Bank Transfers / Coefficient Correcteur
NAP Bank Transfers (7S1) correspond to the “NAP Coefficient Correcteur” applied to the portion
of salaries paid in the Countries of Origin. Not used in 2008.
Staff Allowances on Entering & Leaving Service
Staff allowances on entering & leaving service related to:
– Installation allowance (INS), as per Article 5 of Annex VII
– Resettlement allowance (IRI), as per Article 6 of Annex VII
– Travel expenses on termination (FVC), as per Article 7 of Annex VII
– Travel expenses on taking up appointment (FVY), as per Article 7 of Annex VII
– Removal expenses on termination (FDG), as per Article 9 of Annex VII
– Removal expenses on taking up appointment (FDE), as per Article 9 of Annex VII
– Daily subsistence allowance (IJO), as per Article 10 of Annex VII
NUMBER
OF STAFF
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
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Contract Staff
5 Contract Staff worked in the Agency in 2008.
The following expenses and revenues are booked under the Contract Staff account:
– Staff basic salaries (TBA),
– Staff statutory allowances: Household allowance (AFO), Dependent child allowances (AEN and
AEA), School allowance (APF) , Education allowances (ISF and ISN),
– Social protection EDA contribution: Sickness (CAI), Accident (CAB), Unemployment (CCI),
Pension;
– Social protection Staff contribution: Sickness (CAM), Accident (CAA), Unemployment (CCA),
Pension (CPP)
– EU taxation: Taxation on Staff salaries and allowances (8IM), EU special levy (PSP).
Seconded National Experts (SNEs)
In 2008, allowances were paid to 21 SNEs:
– Daily allowance (€ 117.74 per calendar day for the period January – June 2008, € 119.39 per
calendar day for the period July – December 2008), Belgian allowance: € 29.35
– Distance allowance (adjusted in July),
– Salary adjustment (adjusted in July),
– SNEs who re-located to Brussels are entitled to reimbursement of annual travel expenses to
the place of origin. SNE allowances are paid on a monthly basis, together with Staff salaries.
Source: Council Decision 2003/479/EC concerning the rules applicable to National Experts and Military Staff on secondment to the
General Secretariat of the Council and the last amendment, Council Decision 2008/451/EC of 16 June 2008 adjusting the allowances.
Short Term SNEs
In the course of 2008, 8 Short Term SNEs worked at the Agency of which 4 were present at the
end of the year. All short term SNEs were hired for Directorate specific project work.
Trainees
In the course of 2008, 2 trainees worked at the Agency. EDA internships are paid based on SNE
daily allowances.
Recruiting Expenses
Miscellaneous recruiting expenses related to candidates’ interviews, travel and accommodation of
recruiting experts, organisation of selection process.
Staff Training & Conference Fees
Staff training expenses: languages classes, security training and EDA participant fees for
seminars or conferences.
Medical Expenses
Relate to recruiting expenses, annual health examinations and the purchase of standard medical
supplies for the infirmary.
Mission Expenses
Expenses related to Staff business missions: travel expenses, meals and accommodation
(according to the EDA Mission Guide). In 2008, 767 missions were accomplished for an average
mission cost of € 622 per mission.
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
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Note 3: Functioning Expenses
Fitting-out of Premises
Investments related to the fitting-out of office premises, notably: set-up of new meeting rooms,
office partitioning to accommodate new Staff members, external lighting, building air-conditioning
and other building transformation expenses. Expenses include annual depreciation charge (also
see note on Fixed assets and depreciation).
Security Equipment
Surveillance cameras, surveillance locks, cabinets, secure doors and other equipment to ensure
security of EDA premises. Expenses include annual depreciation charge (also see note on fixed
assets and depreciation).
Office Rent
The Agency signed a standard Belgian nine year operating lease for the office building in Rue des
Drapiers in Brussels. Rent is settled on a quarterly basis and includes related taxation.
Cleaning and Maintenance
Building cleaning and maintenance contracts, including cleaning supplies.
Utility Services
Building utility expenses related to water, electricity and heating.
Building Surveillance Services
Expenses related to 24-hour building surveillance, notably security services and guards.
Insurances
Selected insurance policies related to EDA premises and Staff.
Other Building related Expenses
Expenses related to waste removal, recycling services, office plants and fire protection.
IT Equipment and Software
All expenses related to the Agency's IT systems: servers, desktops, laptops and other IT
equipment and software. Expenses include annual depreciation charge (also see note on Fixed
Assets and Depreciation).
Office Furniture
Desks, tables, chairs, conference room equipment, filing cabinets, cupboards and all
miscellaneous office furniture. Expenses include annual depreciation charge (also see note on
Fixed assets and depreciation).
IT Projects & Development of Systems
Expenses related to installation of software, banking software, accounting information system.
IT Support & Maintenance of Copiers
Rental and maintenance of photocopiers.
Telecom Expenses
Telecommunication expenses: PSTN, mobile, internet and dedicated lines.
EUROPEAN DEFENCE AGENCY
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Office Technical Supplies
Technical supplies for electrical systems and other technical installations.
Outside Assistance for Operation of Technical Installation
Outside assistance for the operation of electrical systems and other building related technical
installations.
Maintenance & Repair of Technical Installations
Services for maintenance and repair of technical equipment and installations: electrical systems,
air conditioning, elevators and other technical installations, plumbing, heating.
Office Vehicles
Rental fee for two office vehicles.
Reception & Representation Expenses
Expenses related to official receptions held in EDA premises: catering, event organisation.
Internal Meetings
Meeting supplies such as: water, coffee, soft drinks and sandwiches.
Organisation of Conferences & Seminars
Expenses related to EDA conferences and seminars, including the payment for selected
conference speakers.
Information, Subscriptions & Documentation Expenses
Expenses related to specialised information sources and press subscriptions.
Official Journal
Publication expenses for EDA’s regulatory documents in the Official Journal of the European
Union.
Public Relations
Expenses related to EDA's image, Public Relations campaigns, media coaching, conference
posters and other communication materials.
Office Supplies
Standard office supplies, including: paper, stationary and office consumables.
Postal & Delivery Expenses
Postage, express mail, P.O. Box.
Financial Charges, including Foreign Exchange Rate Differences
Expenses for bank transfers outside the EU and bank services subject to specific charges.
Foreign exchange transactions and financial charges resulted in a net revenue of € 39.
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
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Note 4: 2008 Operational Projects and Studies
In 2008, EDA awarded 40 contracts under the Operational Budget for approx. € 5.9 million.
Contract ID Contract Title Value
(in €)
Award
Notice
Contract
Signature
Final
Delivery
OPS 08 ARM 001 Through Life Management (LTM) and off-the-shelf (OTS) Purchase Arrangements. 93,750 23-May-08 9-Jun-08 4-Dec-08
OPS 08 ARM 002 Consultancy study in the field of earth space based imaging. 4,999 28-Apr-08 20-May-08 27-Jun-08
OPS 08 ARM 003 Study into the role of the European Industry in the development and application of
standards. 50,000 18-Sep-08 7-Oct-08 29-May-09
OPS 08 ARM 004 Short Study on advanced AFV related innovative technologies used for the core
functionalities of a Future European Land Armaments System of System (FELAS). 4,990 27-Aug-08 4-Sep-08 18-Mar-09
OPS 08 ARM 005 Air4All Follow-on Study. 185,000 1-Dec-08 2-Feb-09 1-May-09
ARM 338,739
OPS 08 CAP 001 Support the EU Council in the Stocktaking of IER for ESDP Operations. 518,344 7-May-08 14-May-08 13-Feb-09
OPS 08 CAP 002 Pilot Course on OSINT. 58,000 3-Mar-08 11-Apr-08 various
OPS 08 CAP 003 Analysis in support of EDA capability trends workshop. 93,562 22-Feb-08 22-Feb-08 17-Mar-08
OPS 08 CAP 004 Service Contract for the Provison of a Roadmap (Fft) towards the Implementation of EU
ISTAR architecture. 4,999 28-Mar-08 28-Mar-08 30-Apr-08
OPS 08 CAP 005 Development of an Integrated Biological Defence System Architecture (IBDSA). 45,000 18-Jul-08 29-Aug-08 18-Nov-08
OPS 08 CAP 006 Support of draft of a CST for EU ISTAR Architecture based on the outcome of a
dedicated workshop. 9,999 25-Jul-08 25-Jul-08 31-Oct-08
OPS 08 CAP 007 Seaborne Logistic Support Stocktaking Study. 90,393 15-Nov-08 30-Nov-08 15-Apr-09
OPS 08 CAP 008 Personal Biological Aerosol Collector for Exposure Control. 49,800 9-Oct-08 18-Oct-08 30-Apr-09
OPS 08 CAP 009 Scenario Identification for NEC in ESDP CMO Context. 4,999 23-May-08 26-May-08 1-Jul-08
OPS 08 CAP 010 Consultancy study service for Spectrum Allocation for UAVs. 4,999 12-Jun-08 12-Jun-08 16-Jun-08
OPS 08 CAP 011 Pilot Course on OSINT (Amendment of current contract Ops 08 Cap 002). 29,000 30-Jun-08 30-Jun-08 25-Nov-08
OPS 08 CAP 012 TIES - Amendment 1 to contract 06 CAP 015. 131,900 11-Aug-08 26-Aug-08 15-Dec-08
OPS 08 CAP 013 Design of a CBRNE Containment Systems that mitigates or prevents release of CBRN
contamination. 75,000 31-Oct-08 10-Nov-08 30-Apr-09
OPS 08 CAP 014 Reports on Workshop "Frequencies Allocation for Unmanned Aerial Vehicles" (9-10
September 08). 4,950 4-Jul-08 11-Jul-08 23-Oct-08
OPS 08 CAP 015 CIED Deployable Exploitation Operational Study. 136,008 5-Dec-08 15-Dec-08 29-May-09
OPS 08 CAP 016 Study for the Mapping of pMS Current Outsourcing Practices in Crisis Management
Operations (National and/or Multinational). 60,000 18-Sep-08 30-Oct-08 30-Jan-09
OPS 08 CAP 018 Consultancy Service to provide Expert Support during the WS on "Frequencies Allocation
for UAV/UAS" (9-10 Sept 2008). 4,897 22-Jul-08 25-Jul-08 11-Sep-08
OPS 08 CAP 019 NEC Implementation Study (IS). 750,000 12-Dec-08 22-Jan-09 24-Jun-10
OPS 08 CAP 020 IER: follow on Study nr 3. 239,930 12-Dec-08 14-Jan-09 14-Aug-09
OPS 08 CAP 021 Developmenet of a Common Standardised User Interface. 416,000 8-Dec-08 22-Dec-08 17-Jul-09
OPS 08 CAP 022 Helicopter Training Feasability Study. 449,928 30-Oct-08 6-Nov-08 6-May-09
OPS 08 CAP 023 Helicopter Tactics Programme Implementation Study. 445,431 5-Dec-08 15-Dec-08 14-Jul-09
OPS 08 CAP 024 NEC: Collection of ongoing programmes. 4,776 18-Sep-08 24-Sep-08 25-Sep-08
OPS 08 CAP 025 Interoperability on Personal Recovery (PR) Equipment (PRE). 74,400 12-Dec-08 12-Jan-09 4-Jun-09
OPS 08 CAP 026 Consultancy Services to support the follow-up on TPLS. 2,500 10-Oct-05 29-Oct-08 24-Dec-08
OPS 08 CAP 027 Secure Management Infrastructure (SMI) 76,000 19-Dec-08 15-Jan-09 15-May-09
CAP 3,780,815
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
- audited - Page: 28
Contract ID Contract Title Value
(in €)
Award
Notice
Contract
Signature
Final
Delivery
OPS 08 I&M 001 Level playing field for European Defence Industries: the role of ownership and public aid
practices. 199,101 4-Apr-08 17-Apr-08 9-Feb-09
OPS 08 I&M 002 Call Centre project for increasing the awareness of the Regime on Defence Procurement
and the use of EBB within the European defence-related Industrial base. 97,032 4-Apr-08 14-Apr-08 14-Oct-08
OPS 08 I&M 003 Innovative and Competitive Potential of the Defence-related Supplier Base of the EU-12. 148,000 10-Oct-08 4-Nov-08 14-May-09
I&M 444,133
OPS 08 R&T 001 Exploring the potential for a common Casualty Tracing and Tracking Tool for EU led
military missions. 132,445 15-Nov-08 30-Nov-08 17-Apr-09
OPS 08 R&T 002 Technology Watch on "Terahertz for the Identification of Explosive Chemicals"
(TERIFIEC). 150,000 22-Sep-08 16-Dec-08 16-Jun-09
OPS 08 R&T 003 Electromagnetic Signature reduction. 98,600 26-Sep-08 6-Oct-08 5-May-09
OPS 08 R&T 004 EU Core Technical Framework Study. 445,000 16-Sep-08 9-Oct-08 9-Jul-09
OPS 08 R&T 005 Overall Platform Energy Efficiency. 120,000 15-Oct-08 31-Oct-08 15-May-09
OPS 08 R&T 006 Architecture for Embarked Middleware. 396,000 28-Nov-08 29-Jan-09 29-Jul-09
R&T 1,342,045
TOTAL 5,905,731.680
Note 5: 2008 Earmarked Revenue
€ 1,556,000 of Earmarked Revenue was committed to a study on Military Frequency Spectrum
Allocations for Unmanned Vehicles / Systems (SB Decision N° 2008/25).
Note 6: Revenues
EU Taxation
Taxation on Staff salaries (temporary and SCO) and allowances collected by the Agency for
income tax (8IM) and EU special levy (PSP).
Financial Income
In 2008, the Agency’s bank accounts generated interests of € 565 k.
According the Article 29 of the Financial Rules, interests for late payments of contributions were
charged where applicable. Total pMS payments for late interests amounted to € 15 k in 2008.
Bank interests and interests for the late payments of contributions are included in the year-end
surplus, which flows back to pMS.
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
- audited - Page: 29
pMS Contributions19 20
In 2008, pMS contributions amounted to € 25.8 million; taking into account the 2008 surplus
reimbursement of € 1.8 million, the actual cost to pMS was € 24 million.
2008 Contributions % GNI (19) Budgetary
Contributions
Actual Cost
to pMS
Budgetary
Surplus (20)
Austria (AT) 2.2160 572,510 532,222 40,288
Belgium (BE) 2.7694 715,469 665,121 50,348
Bulgaria (BG) 0.2450 63,295 58,841 4,454
Cyprus (CY) 0.1274 32,915 30,599 2,316
Czech Republic (CZ) 0.9874 255,086 237,135 17,951
Estonia (EE) 0.1340 34,629 32,192 2,437
Finland (FI) 1.4810 382,606 355,681 26,924
France (FR) 15.5715 4,022,895 3,739,801 283,094
Germany (DE) 20.0164 5,171,231 4,807,328 363,903
Greece (EL) 1.7619 455,183 423,151 32,032
Hungary (HU) 0.8063 208,304 193,645 14,658
Ireland (IE) 1.3927 359,799 334,479 25,319
Italy (IT) 12.7185 3,285,831 3,054,605 231,226
Latvia (LV) 0.1771 45,755 42,535 3,220
Lithuania (LT) 0.2319 59,924 55,707 4,217
Luxembourg (LU) 0.2622 67,745 62,978 4,767
Malta (MT) 0.0431 11,146 10,361 784
Netherlands (NL) 4.6511 1,201,609 1,117,051 84,558
Poland (PL) 2.5283 653,181 607,216 45,965
Portugal (PT) 1.2949 334,526 310,986 23,541
Romania (RO) 1.0666 275,555 256,164 19,391
Slovakia (SK) 0.4567 117,979 109,677 8,302
Slovenia (SI) 0.2713 70,097 65,164 4,933
Spain (ES) 8.7631 2,263,949 2,104,633 159,316
Sweden (SE) 2.7986 723,019 672,139 50,879
United Kingdom (UK) 17.2277 4,450,766 4,137,562 313,203
Total 26 pMS 100 25,835,000 24,016,973 1,818,027
(19) 2008 GNI "Own Resources, excl. reserves", OJ L071, 14.3.2008; percentages rounded to 4 decimals.
(20) The Budgetary Surplus is returned to pMS as a deduction from the 3rd contribution in year N+1 (15 October 2009).
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
- audited - Page: 30
Note 7: Budgetary Surplus repayable to pMS
The budgetary surplus repayable to pMS is the difference between revenues received and
expenses incurred during the financial year, including capital expenditure and corresponding
depreciation adjustment. The 2008 surplus is returned to pMS as a deduction from the third
budgetary contribution on 15 October 2009 (also see Note 6 above).
Note 8: Fixed Assets and Depreciation
Figures in €
Fixed Asset Classes
2008
Net Asset
Value
2008
Accumulated
Depreciation
2008
Asset
Acquisitions
2007
Net Asset
Value
Fitting-Out of Premises 2,010,946 (324,607) 8,982 2,326,571
Security Equipment 5,619 (50,332) - 55,951
IT Equipment 128,293 (163,565) 81,641 210,217
Office Furniture 59,319 (22,478) 4,106 77,691
Office Technical Equipment 28,329 (6,047) 10,350 24,026
Total 2,232,506 (567,029) 105,079 2,694,456
Note 9: Supplier receivables
Includes interest receivable from the bank (October – December 2008).
Note 10: Cash
EDA Bank Accounts
As at 31/12/2008, the global balance on the Agency’s bank accounts totalled € 19,725,561.
Figures in €
EDA Bank Accounts 2008 2007 2006
Opening balance 15,519,461 14,277,564 10,389,816
Closing balance 19,725,561 15,519,461 14,277,564
In order to optimize the return on financial assets, the Agency placed its funds in term accounts to
achieve a higher remuneration. Employee pension rights are managed in a separate interest
bearing bank account.
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
- audited - Page: 31
EDA Petty Cash
As at 31 December 2008, the Agency had a petty cash balance of € 1,000.00.
Note 11: Stakeholders
The Stakeholders liabilities include the following items:
Deferred pMS contributions
At Year-end 2008, one pMS paid part of its contributions in advance.
Capital expenditure Year N-1
In accounting terms, the capital expenditure and the corresponding depreciation charges are
shown under liabilities. In budgetary terms, 100% of the acquisition cost of fixed assets is
expensed in the year of acquisition.
Accounting Surplus
For the year 2008, the accounting surplus amounts to € 1.4 million.
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
- audited - Page: 32
Note 12: Supplier Payables
The underneath table shows the variation of the Agency’s balance sheet provisions for supplier
payables, which include Accrued Expenses and Pending Invoices:21 22
Supplier Payables (in €)
Accrued
Expenses (21)
Pending
Invoices (22)
Accrued
Expenses (21)
Pending
Invoices (22)
Accrued
Expenses (21)
Pending
Invoices (22)
FUNCTIONING
Payables related to 2005 12,396 0 10,337 0 8,146 0
Payables related to 2006 159,673 517,286 0 0 0 0
Payables related to 2007 0 0 351,388 367,986 108,583 0
Payables related to 2008 0 0 0 0 174,146 302,788
FUNCTIONING 172,069 517,286 361,725 367,986 290,875 302,788
OPERATIONAL
Payables related to 2005 775,294 0 525,000 0 0 0
Payables related to 2006 3,754,215 0 1,993,316 92,564 1,539,014 0
Payables related to 2007 0 0 3,898,294 346,574 719,246 50,000
Payables related to 2008 0 0 0 0 5,259,005 147,750
OPERATIONAL 4,529,509 0 6,416,610 439,138 7,517,265 197,750
EARMARKED
Payables related to 2005 0 0 0 0 0 0
Payables related to 2006 0 0 0 0 0 0
Payables related to 2007 0 0 0 0 0 0
Payables related to 2008 0 0 0 0 1,556,000 0
OPERATIONAL 0 0 0 0 1,556,000 0
TOTAL
Payables related to 2005 787,690 0 535,337 0 8,146 0
Payables related to 2006 3,913,888 517,286 1,993,316 92,564 1,539,014 0
Payables related to 2007 0 0 4,249,682 714,560 827,829 50,000
Payables related to 2008 0 0 0 0 6,989,151 450,538
TOTAL 4,701,578 517,286 6,778,335 807,124 9,364,140 500,538
2006 Balance Sheet 2007 Balance Sheet 2008 Balance Sheet
(21) Provisions for accrued expenses (163100 - Functioning; 163200 - Operational; 163300 - Earmarked).
(22) Pending invoices from previous financial years, paid after the 31/12 but before the transfer to provisions.
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
- audited - Page: 33
Note 13: Staff Payables
Pensions
Staff (Temporary, SCO and Contract) pension rights, including corresponding interests, are
capitalised on the Agency’s balance sheet to cover future pension obligations.
Staff pension rights are composed of:
– 2/3 Agency contribution, booked as expenses and capitalised on the balance sheet;
– 1/3 Staff contribution, deducted from Staff remuneration and capitalised on the balance sheet.
Total Statutory Staff pension rights accumulated on the Agency’s balance sheet as per 31/12/2008
amount to € 6,999 k.
Pension provision for 2008 amounts to € 1,800 k and is composed of the following items:
Figures in € k23
EDA Staff Pension Accruals (23) 2008 2007 2006
EDA contribution 1,633 1,456 1,212
EDA contribution for Contract Staff 42 0
Staff contribution 817 728 606
Staff contribution Contracts Staff 21 0
Payments for severance grant (933) (0) (69)
Payments for maintenance of pension rights (22) (58) (40)
Financial interests 243 148 17
Total 1,800 2,273 1,726
Note: In 2008, at the end of each month, accumulated pension rights and corresponding
interests were transferred to the pension bank account.
Miscellaneous Staff Payables
Miscellaneous Staff Payables include € 73.7 k of 2008 expenses paid in early 2009, such as:
School and Child allowances, severance grants, mission expenses, other.
(23) Staff pension rights (Temporary, SCO and Contract) are capitalised on the balance sheet account “Staff Pension
Accruals”. Maintenance of pension rights in accordance with Article 90 of the EDA Staff Regulations. See also p. 23.
EUROPEAN DEFENCE AGENCY
2008 FINANCIAL REPORT
EUROPEAN DEFENCE AGENCY Date: 02/06/2009
Produced by: EDA – CSD FA
- audited - Page: 34
AA Administrative Arrangement
AFV Armoured Fighting Vehicle
AMB Agency Management Board
C3 Command, Control & Communication
CapTechs Capability Technology Areas
CDP Capability Development Plan
CoC Code of Conduct
COTS Commercial Off-the-Shelf products
DTEB Defence Test and Evaluation Base
DTIB Defence Technological and Industrial Base
EBB Electronic Bulletin Board
EDEM European Defence Equipment Market
EDRT European Defence Research Technology
EMP Electronic Market Place
ESDP European Security and Defence Policy
EUMC European Union Military Committee
EUSC European Union Satellite Center
FM EDA Finance Manual
FR EDA Financial Rules
GAERC General Affairs & External Relations Council
GSC General Secretariat of the Council
IDT Integrated Development Teams
IPR Intellectual Property Rights
JIP-FP Joint Investment Programme Force Protection
LoI Letter of Intent
LTV Long Term Vision
MOTS Military Off-the-Shelf products
NAD National Armaments Directors
NAP Salary payment system used by PMO - “Nouvelle Application de Paie”
NEC Network Enabled Capabilities
OCCAR Organisme Conjoint de Coopération en matière d’Armement
pMS Participating Member States
PMO Paymasters Office of the European Institutions
PoC pMS Central Point of Contact
PrepCom Preparatory Committee
PSC Political and Security Committee
R&T Research and Technology
SB Steering Board
SDR Software Defined Radio
SNE Seconded National Experts
SCO EU Officials on Secondment
SoI / SoS Security of Information / Security of Supply
TIES Tactical Imagery Exploitation Station
UAV Unmanned Aerial Vehicle
APPENDIX - SELECTED EDA ACRONYMS
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